ADNIC reports AED 227.3 million net profit for 2017
Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for corporates and individuals, announced today its financial results for the year 2017.
The Company reported strong results with its net profit of AED 227.3 million for 2017, representing an increase of 11 per cent over the same period last year.
“The Board of Directors is delighted to announce ADNIC’s strong underwriting results and profitability throughout 2017. ADNIC’s positive full year results reflect the successful delivery of the company’s strategy. Despite a challenging business environment, ADNIC’s Board of Directors, as well as the management team, remain committed to driving standards of excellence and to delivering sustainable growth in profitability. Our priority is to ensure that ADNIC is positioned amongst the regional market leaders by leveraging on our innovative capabilities and differentiated offering,” said HE Shaikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC.
Key Financial Highlights
- In 2017, ADNIC’s Gross Written Premium increased by 11.3 per cent to AED 2.64 billion compared to AED 2.38 billion in 2016.
- The overall premium retention ratio reached 47 per cent for the year 2017 compared to 44 per cent in 2016.
- In 2017, ADNIC Net Underwriting profit stood at AED 304.0 million compared to AED 342.6 million in 2016.
- Net Investment and Other Income increased by 12 per cent to AED 114.2 million in 2017, compared to AED 102.4 million in 2016.
- General and Administrative Expenses decreased to AED 191.0 million in 2017 compared to AED 239.9 million for 2016 demonstrating ADNIC’s increased operational efficiency.
- span style="font-size: small;">Net Technical Profit for the year 2017 increased by 8.7 per cent to AED 118.4 million, against a Net Technical Profit of AED 108.9 million for 2016.
- For the year 2017, Net profit increased by 11 per cent to AED 227.3 million, compared to a net profit of AED 205.0 million for 2016.
- ADNIC’s cash balances stood at AED 705.4 million in 2017, compared to AED 1.03 billion in 2016. This is due to reallocation to other asset classes, as per ADNIC’s asset allocation framework
- Total investments including cash in time deposits, bank accounts and investment properties increased by 8.0 per cent to AED 3.39 billion in 2017, compared to AED 3.14 billion in 2016.
- The total assets increased by 3.2 per cent to AED 6.70 billion in 2017, compared to AED 6.49 billion in 2016.
- The Shareholders’ Equity position increased by 11.9 per cent to AED 1.98 billion in 2017, compared to AED 1.77 billion in 2016.
- Basic and diluted earnings per share increased by 11 per cent to AED 0.40 for the year 2017 compared to basic and diluted earnings per share of AED 0.36 in 2016.
“I am pleased to report that ADNIC has achieved strong results in 2017. While ADNIC has taken a conservative approach in its underwriting strategy, the company achieved premium growth for the year and strengthened its long-term financial and operational performance,” said Ahmad Idris, CEO of ADNIC.