Abu Dhabi National Insurance Company (Adnic), a leading regional multi-line insurance provider, has seen its first-quarter (Q1) net profit rise 17.2% to AED99.7 million ($27.15 million) on strong underwiting and investments. This is compared to AED85 million for the same period in 2022.

 

For the three-month period ended March 31, 2023, Adnic's net insurance service result stood at AED94.1 million, against AED98.3 million for the same period in 2022.

 

Adnic's net income from investment increased by 94% to AED46.3 million, compared to AED23.9 million for the same period in 2022.

 

Operating expenses

Other operating expenses stood at AED42.7 million, compared to AED38.9 million for the same period in 2022.

 

As of January 1, 2023, the insurer successfully implemented IFRS 17 Insurance Contracts (IFRS 17), replacing IFRS 4 Insurance Contracts (IFRS 4) along with any corresponding amendments to other standards. T

 

The adoption of these standards has brought about substantial transformations in the accounting of insurance and reinsurance contracts. As a result, Adnic have restated specific comparative figures for the prior year in accordance with the new standard.

 

Investing in key areas

Commenting on Adnic’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of Adnic, said: “As an outcome of strong underwriting and investment performance, Adnic has delivered a net profit rise in Q1.

 

“We continue to invest in key areas that impact our operations and enable sustainable growth. Our efforts to transform our operations through the use of cutting-edge technology and innovative solutions are aimed at improving our customers' experiences, increasing efficiency, and enabling us to better adapt to market changes. We are dedicated to leveraging the latest advancements to provide better service to our clients, and we firmly believe that our investments in digitalisation and innovation will ensure our continued success and help us maintain our position as an industry leader.”

 

“Sustainability has long been a central operational pillar for us, and we have made significant progress towards creating a positive impact on both the environment and society. Our commitment to sustainability has driven us to implement innovative solutions and adopt best practices, resulting in tangible benefits for the communities we serve.”

 

Core competencies

Charalampos Mylonas, CEO of Adnic, said: “During the first quarter, we continued to effectively leverage our core competencies in a consistent and systematic manner. With a strong and wide capital base, a solvency ratio that boasts a significant surplus, core underwriting excellence, a robust enterprise risk management framework, and market-leading outward reinsurance arrangements, Adnic has successfully reduced its relative exposure to highly reinsured corporate insurance programmes and focused on maintaining and developing portfolios with strong underwriting income contribution potential.”

 

He added: “Our investment performance for the quarter significantly improved compared to the prior year, primarily due to changes made in the asset allocation approach. Stable dividend income and investment portfolio mark-to-market gains also contributed positively to the overall result.”-- TradeArabia News Service