ADNIC’s H1 2021 net profit increases 31.1% to AED248.7 million

ABU DHABI, Abu Dhabi National Insurance Company (ADNIC), a multi-line insurance providers for both corporates and individuals, reported net profit for the six-month period ended 30th June 2021 increased by 31.1 percent to AED248.7 million, compared to AED189.7 million for the same period in 2020, driven by outstanding performance in both underwriting and investment activities.

Gross written premiums for the first half of 2021 increased by 4.2 percent to AED2.67 billion, compared to AED2.56 billion in the same period of 2020, a company press release said on Monday.

ADNIC’s performance was driven by the company’s clear strategy, underwriting discipline, operational excellence, and a diversified investment portfolio.

Commenting on ADNIC’s performance, Sheikh Mohamed bin Saif Al-Nahyan, Chairman of ADNIC, said, “ADNIC has maintained its strong financial position and market position in the first half of 2021 through a clear strategy, underwriting discipline, operational excellence and a diversified investment portfolio. Despite the challenges posed by the global pandemic and the disruptions caused to daily life, ADNIC continued to improve its capabilities and managed to emerge even stronger to provide uninterrupted support to its customers.

“As we move into the second half of the year, we are optimistic about the outlook for the wider economy and the insurance sector in particular.”

Ahmad Idris, CEO of ADNIC, said, “ADNIC’s ability to deliver strong profitability and exceptional levels of operational efficiency despite challenges in the wider market has been enabled through ongoing pricing discipline and investments into technology. Our Consumer Lines business performed particularly well, driven by our strong product offering, bancassurance presence and distribution and broker networks. Looking ahead, we will continue to contribute to initiatives that contribute to the betterment of society across the UAE, utilising our sustainability strategy to ensure the long-term benefits for our customers and employees, our local communities, and our environment.”

ADNIC performed well across its operations during the first half of 2021. ADNIC’s overall premium retention ratio for the six-month period was 34.29 percent, compared to 34.26 percent for the same period in 2020. Net underwriting profit during H1 2021 increased by 1.5 percent to AED280.3 million, against AED276.3 million for the same period in 2020.

ADNIC’s net investment and other income increased by 58.3 percent to AED87.3 million for the six-month period, compared to AED55.1 million for the same period in 2020. General and administrative expenses stood at AED118.9 million, compared to AED141.7 million for the same period in 2020, reflecting the company’s continued focus on operational efficiency and cost management.

Source: Emirates News Agency