Solvency continues to hold material surplus
ABU DHABI/November 5-2020: Abu Dhabi National Insurance Company (ADNIC), the largest insurer in Abu Dhabi recorded a net profit of AED282.8 million for the first nine months (9M) in 2020, a 45.5 per cent increase compared with the same period last year.
The company reported a net profit of AED93.2 million for the third quarter (Q3) compared with AED75.8 million for the same period last year, representing a growth of 22.9 per cent.
Technical results solid
The company’s technical underwriting results remained solid with 44 per cent growth, compared with same quarter last year. Strong gains were achieved in the total insurance premium, reaching AED3.17 billion, which is 6.2 per cent growth compared with the previous year with AED2.98 billion.
Strong commercial lines
The growth in revenue is primarily driven by the commercial lines division, which has recorded a 12.8 per cent increase compared with the previous year as a result of successful conversion of new business opportunities.
Retail Motor continues to go through a challenging period as a combination of the overall segment slowdown and the emerging downward pressure on the premium rate in the market.
ADNIC’s solvency continues to hold a material surplus above solvency requirements. General and administrative expenses excluding provision for doubtful debts for the nine month period ended September 30, 2020 decreased by 4.1 per cent to AED172.2 million compared with AED179.5 million for the same period in 2019.
Total investment income for the year to date (including Other Comprehensive Income) was down 81.4 per cent compared with the same period in 2019.
Sheikh Mohamed Bin Saif AI-Nahyan (seen in the picture) Chairman of the Board said that as one of the leading UAE insurance companies, ADNIC will continue to build on its expertise to deliver new innovative solutions and give back to the community throughout the remainder of the year and beyond.
ADNIC said its successful adaptation to the new normal has yielded operational efficiencies that leave it well placed in 2021.
Ahmad Idris, the chief executive officer (CEO) of the company said that ADNIC utilised its digital infrastructure and business continuity plan to respond effectively to COVID-19 pandemic and to deliver uninterrupted services.
“A comprehensive range of preventive measures was undertaken to maintain health & safety of employees as well as support customers and stakeholders,” Idris added.