Adnic reports first quarter 2021 net profit of Dh133.6m

Adnic reports first quarter 2021 net profit of Dh133.6m

Abu Dhabi National Insurance Company (Adnic) has reported its financial results for the first quarter ended March 31, 2021, with a net profit of Dh133.6 million being recorded, a nine per cent increase compared to the same quarter last year.

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

Sheikh Mohamed Bin Saif Al-Nahyan, chairman of Adnic, said: “Amid challenging market conditions, Adnic delivered solid results for the first quarter of 2021, with net profit increasing nine per cent to Dh133.6 million compared to the same quarter of last year. Adnic’s robust financial performance is testament to the company’s strong foundations and market position. Adnic has continuously supported its customers and partners through this challenging period, implementing measures to ensure the seamless delivery of services."

He added: "I want to thank our customers, partners, and shareholders for their continued trust in us. I also wish to thank our employees for working hard through these challenging times to support our business.”

Ahmad Idris, CEO of Adnic, said: “Our solid first quarter financial performance resulted from our ability to adapt to challenging market conditions, our digital-first mindset, and the fundamental strength of our company. We also continued to deliver on our promise of being our customers’ reliable insurer. Looking ahead, we will also continually evolve our operations and offering to deliver on our purpose and meet the needs of our stakeholders.”

Looking at some of the key financial highlights, underwriting discipline was maintained and Adnic delivered solid underwriting income with 17.2 per cent growth, compared to same quarter last year. The growth in underwriting income was due to the high client retention ratio and to winning new business whilst maintaining our prudent underwriting approach. Investment income through P&L was up 8.5 per cent compared to prior year and total investment return has recovered strongly with normalisation in financial market conditions.

Adnic remains focused on delivering high level of service and improving efficiencies through judicious investments in technology. The net profit for the first quarter represents an earnings per share of Dh0.23.

Adnic has built a strong track record of positive underwriting performance while maintaining its market share over the past five years. According to S&P, the company’s capital adequacy will remain at the 'AAA' benchmark in its model.

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