Abu Dhabi National Insurance Company reports net profit of Dhs186.9m for H1 2022

Abu Dhabi National Insurance Company (ADNIC) has revealed its financial results for H1 2022, posting a net profit of Dhs186.9m.

Sheikh Mohamed bin Saif Al-Nahyan, chairman of ADNIC, said, “ADNIC continued to deliver steady performance in the face of challenging global economic conditions. As we move into the second half of the year, we are optimistic about our future outlook. We will continue to invest in the latest technologies to adapt to current and future market needs, and meet the UAE’s government aspirations.”

The company delivered a strong second quarter, with gross written premiums higher by 20.9 per cent to Dhs3.23bn.

Loss ratios were broadly stable despite pricing pressures in certain lines. As a result, net underwriting income for the first half of the year was Dhs253.9m, an increase of 24.2 per cent.

“Investment income was impacted by high mark to market volatility across several asset classes with most major asset classed down between 10 per cent and 20 per cent for the year to date. Our expense management continues to be strong and growth in expenses lower than premium growth, despite the continued cost from compliance such as IFRS 17 implementation and investments into new technologies and capabilities,” explained ADNIC’s chairman.

Abu Dhabi National Insurance Company’s gross written premiums increased by 20.9 per cent to Dhs3.23bn in H1 2022, compared to Dhs2.67bn for the same period in 2021. Meanwhile, the overall premium retention ratio is 31.9 per cent, compared to 34.3 per cent for the same period in 2021.

The company’s net underwriting income stood at Dhs253.9m, against Dhs280.3m during 2021.

General and administrative expenses stood at Dhs129m, compared to Dhs118.9m for the same period last year. The net technical profit was Dhs124.9m, against Dhs161.4m in 2021.

ADNIC’s net investment and other income were Dhs62m, compared to Dhs87.3m last year.

Ahmad Idris, CEO of ADNIC, said, “We will continue to engage strongly with all stakeholders with our various initiatives in areas including Emiratisation, health and well-being, climate change, and giving back to the local community. Over the past few months, we have renewed our partnerships with several CSR initiatives and Emirates Nature-WWF, developed a UAE national talent programme called ‘Emkanati’, and deployed our health and wellness app ‘LiveWell’ for customers.

“With 2022 being the company’s 50th anniversary, we will continue to be engaged in initiatives that contribute to the betterment of society and support the UAE’s various strategic projects as both ADNIC and the country begin their journey towards the next 50 years.”

In recent news, the Quarterly Economic Review issued by the Central Bank of the UAE (CBUAE) for Q1 2022 has shown that the insurance sector in the UAE reflected growth, with an increase in the number of insurance policies, gross written premiums, and licensed insurance-related entities.

Read: Total invested assets in insurance sector rise 5.4% to Dhs77.8bn in Q1 2022: CBUAE