Abu Dhabi National Insurance Company (Adnic), a top multi-line insurance provider, recorded a net profit of AED189.7 million ($51.6 million) for the first half (H1) of the year, a 59.9% increase compared to the same period last year.
Despite challenging market conditions, Adnic delivered a resilient performance with sustained growth across key metrics and Adnic’s performance was driven by effective business continuity measures allied to a strong balance sheet and solid market position, a company statement said.
Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of Adnic, said: “The impact of the Covid-19 pandemic is an evolving situation and Adnic will continue to monitor the impact on its business closely and take decisive action as required to support its customers and partners. As a testament to our financial strength, experience and commitment to high level of service delivery, our GWP for the first six months of the year was up by 9.1% to AED2.56 billion.”
“Particularly strong gains were achieved in the commercial lines with GWP increasing by 17.1%. Despite challenging market conditions, specifically for consumer lines, GWP was maintained almost at the same level as the previous year.”
“Profitability across lines was very strong with Total Underwriting Profits up 67.0% for the first six months to AED276.3 million. Combined ratio was 80.2% compared to 93.9% for the previous year. The extreme market volatility, particularly in March contributed to investment income through P&L for the first six months being lower by 30.3%.
“While some stability has returned to securities markets in the second quarter and the total Investment Income including Other Comprehensive Income for the second quarter was higher by 74.7% compared to the second quarter of the previous year. Adnic’s capitalisation and solvency continue to remain robust. Total Shareholders’ Equity was stable at AED2.19 billion and loss reserves were maintained at comfortable levels,” he added.
Ahmad Idris, CEO of Adnic, said: “Our net profit of AED189.7million was 59.9% higher than the first half of 2019. This was principally driven by our strong position to navigate challenging environment and to our commitment to a sustainable customer centric model. We have maintained growth across all key metrics including Gross Written Premium and Underwriting income, amidst the unprecedented market conditions. Our prudent underwriting policy and pricing discipline have also resulted in a highly positive technical profit.”
“Our response to the pandemic has achieved the twin objectives of business continuity and maintaining the health and safety of our employees and customers. We have remained fully operational throughout and delivered uninterrupted services to customers. Our customers are at the heart of everything we do, and I am proud that we continued to deliver on our promise of being their reliable insurer as we navigate this difficult time. Part of our efforts will be our adherence to following government guidelines to ensure a safe, gradual and smooth return to Adnic office facilities,” he added. – TradeArabia News Service
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