Abu Dhabi National Insurance Company reports Q1 2020 net profit of $33mln

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ABU DHABI - Abu Dhabi National Insurance Company, ADNIC, reported on Sunday its financial results for the first quarter ended 31st March 2020.

ADNIC delivered solid performance and growth across key financial metrics, with a net profit of AED122.6 million, a 133.1 percent increase compared to the same quarter last year. ADNIC’s performance was driven by ongoing commercial momentum and effective business continuity measures allied to a strong balance sheet and solid market position.

Sheikh Mohamed bin Saif Al Nahyan, Chairman of ADNIC, said, "ADNIC reported a robust set of numbers and achieved growth in both top-line as well as profitability. ADNIC also added its full support to the UAE’s comprehensive response measures in the fight against COVID-19." During the first quarter of 2020, ADNIC continued to capture market share across several business lines and gross premiums increased to AED1.87 billion, a growth of 7.7 percent compared to the first quarter of the previous year. Maintaining a profitable book of business is equally important and consequently underwriting profits showed a substantial increase to AED151.2 million, a growth of 79.4 percent over the previous year.

Financial market volatility impacted investment returns somewhat, albeit at a much lower level compared to the broader market drawdown, ADNIC noted, adding that given the ongoing COVID-19 situation, it has focused strongly on maintaining cost discipline.

Total net profits for the quarter stood at AED122.6 million compared to AED52.6 million in the same period in 2019. As a result, earnings per share were AED0.22 per share for the quarter compared to AED 0.09 per share in first quarter 2019, an ADNIC statement explained.

Ahmad Idris, CEO of ADNIC, said, "Our solid financial performance in the first quarter reflects our ability to adapt to challenging market conditions, the fundamental strength of the company and the exceptional contribution of our employees to provide uninterrupted service to customers." He added, "ADNIC also continued to give back to the local community through our wide-ranging and long-standing CSR initiatives and activities. We made valuable contributions to the wider community by partnering with Ma’an Abu Dhabi towards the ‘Together We Are Good’ programme to support the UAE community in addressing the fight against the pandemic." ADNIC contributed a AED3 million donation to the Ma'an ‘Together We Are Good’ programme.