Adnic posts $29.23m H1 profit

10/08/2016 08:11 AST

Abu Dhabi National Insurance Company (Adnic) reported a net profit of Dh107.4 million ($29.23 million) for the first six months of this year, compared to a net loss of Dh298.8 million for the same period in 2015.

The company’s net technical profit contributed AED 59.9 million towards the bottom-line profit.

Commenting on these results, Shaikh Mohamed Bin Saif Al-Nahyan, chairman of Adnic, said: “Following the positive financial performance in the first quarter of this year, the results for the first six months of 2016 indicates Adnic’s return to sustainable profitability.

"The results, which have been achieved on the back of strong underwriting and net profit performance, validate the strategic realignment implemented by the company’s management over the past year-and-a-half. The Board of Directors, as well as the management team, are confident of Adnic’s ability to continue delivering growth and shareholder value,” he said.

Key financial highlights for H1

* The gross written premium grew by 3 per cent to Dh1,437.1 million compared to Dh1,401.8 million for the same period in 2015.

* The overall premium retention ratio for the company reached 46 per cent, compared to 51 per cent for the same period in 2015.

* Net underwriting income reached Dh165.9 million, against a net underwriting loss of Dh247.8 million for the same period in 2015.

* General and administrative expenses stood at Dh108.5 million compared to Dh106.5 million for the same period in 2015.

* The net technical profit, which is arrived at by deducting general and administrative expenses related to the insurance operation from net underwriting income, reached Dh59.9 million compared to a net technical loss of Dh354.3 million for the same period last year. * Net investment and other income was Dh50.1 million, compared to Dh55.6 million for the same period in 2015.

* Adnic’s bank balances and cash grew by 39 per cent to Dh928.0 million as on June 30, 2016, compared to Dh667.2 million as on December 31, 2015.

* Total investments increased by 10 per cent to Dh3,003.9 million as on June 30, 2016, compared to Dh2,741.6 million as on December 31, 2015.

* The total assets of the company grew by 12 per cent to Dh6,249.6 million as on 30th June 2016, compared to Dh5,603.8 million as on December 31, 2015.

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