Abu Dhabi National Insurance Company (ADNIC) reported a solid performance and growth across key metrics for Q1 2021, with a net profit of $36.4 million (AED 133.6 million), a 9 percent increase compared to the same period last year.
In its financial results report for the first quarter of 2021 (ending March 31), the regional multi-line insurance providers for both corporates and individuals also indicated that gross written premiums increased by 1.2 percent to AED 1.90 billion, compared to AED 1.87 billion for the same period in 2020.
ADNIC’s performance was driven by the company’s clear strategy, underwriting discipline, operational excellence, and a diversified investment portfolio, the company said in a statement.
“Amid challenging market conditions, ADNIC delivered solid results for the first quarter of 2021. ADNIC’s robust financial performance is testament to the company’s strong foundations and market position,” said Sheikh Mohamed Bin Saif Al-Nahyan, chairman of ADNIC.
“ADNIC has continuously supported its customers and partners through this challenging period, implementing measures to ensure the seamless delivery of services. This aligns with the company’s contribution to the wider community through its backing of government initiatives and multiple CSR and charitable initiatives,” he continued.
ADNIC’s overall premium retention ratio was 32.9 percent for Q1 2021 compared to 32.1 percent for the same period last year while its underwriting income increased by 17.2 percent to AED177.2 million, against AED151.2 million for the same period in 2020.
Sheikh Mohamed Bin Saif Al-Nahyan, chairman of ADNIC
The growth in underwriting income was due to the high client retention ratio and to winning new business while maintaining our prudent underwriting approach. Investment income through P&L was up 8.5 percent compared to prior year and total investment return has recovered strongly with normalisation in financial market conditions.
“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,” said Ahmad Idris, CEO of ADNIC.
“To support the people and communities we serve, ADNIC has continued to implement prudent safety measures in response to the Covid-19 pandemic and partnered with numerous CSR and charitable initiatives that contribute to the betterment of society,” he added.
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