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ADNIC reports AED371 million in net profit for 2020

February 15, 2021
finance & economy

ABU DHABI, 14th February, 2021 (WAM) -- Abu Dhabi National Insurance Company (ADNIC), said 2020's net profit increased by 30.5 % to AED371 million, compared to a net profit of AED 284.3 million for 2019 In a statement on its financial results for the full year ended 31 December 2020 today, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: 'Against the uncertain backdrop of 2020, ADNIC demonstrated strong results with a full-year net profit of AED 371 million, a 30.5% increase compared to the previous year. ADNIC’s technical abilities in prudent risk selection continue to be the bedrock on which this performance is based. These results are also due in part to the long-term investments we have made in technology over recent years and our ability and expertise to put the customer first and provide them with platforms that function 24/7. As a customer centric company, we will continue to pursue our digital transformation journey across all customer channels and consumer lines products.'

'This was a year when our readiness to support clients was crucial. The years of experience of insuring risks in over 70 countries came to the fore and has helped us further diversify our book of business. We measure our success both in the number of new client wins and the long-term relationships and partnerships that we maintain year after year. That said, I am proud of what we have achieved in such adverse conditions in 2020. We consider ADNIC to be an integral part of our communities and we will continue to support the government’s plans and participate in several CSR and charitable initiatives.'

He added: 'We are grateful for the guidance received from the UAE’s leadership, and I would like to extend our sincere gratitude to His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, and His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, for their continued support.'

Ahmad Idris, CEO of ADNIC, said: 'In a time of so much uncertainty, ADNIC delivered a strong performance and sustained growth across key metrics. ADNIC demonstrated strength throughout the year and quickly adapted to a rapidly changing environment, enabling us to support our customers, employees and communities in navigating unprecedented times. With a customer- first mindset, ADNIC accelerated the execution of its ambitious digital transformation plans to ensure uninterrupted services to our customers and the delivery of exceptional expertise and advice to customers.'

He added: 'Looking ahead, we remain firmly committed to maximising shareholder returns, supporting our employees and customers, and we will continue to be engaged in numerous initiatives that contribute to the betterment of society from tackling environmental challenges to enhancing safety.'

Looking at some key financial highlights of the strong performance and sustained growth across key metrics in 2020, the net profit increased by 30.5% to AED 371.0 million, compared to a net profit of AED 284.3 million for the same period in 2019.The overall premium retention ratio reached 33.6% for the year 2020 compared to 32.1% for the same period in 2019. Net Underwriting profit increased by 26.5% to AED 497.2 million in 2020, against a Net Underwriting Profit of AED 393.2 million for the same period in 2019. Net Technical Profit for the year 2020 increased by 82.2% to AED 261.8 million, against a Net Technical Profit of AED 143.7 million for the same period in 2019. ADNIC’s Net Investment and Other Income is AED 114.8 million for the year 2020 compared to AED 142.2 million for the same period in 2019.

ADNIC’s gross premium income for commercial lines for 2020 recorded 13.1% growth. Consumer lines finished the year flat on the account of the overall business segment economic slowdown brought about by the pandemic and the resulting competitive pressure. The company’s overall gross written premium grew by 6.8% to AED 4.012 billion against AED 3.755 billion in the previous year.

General and administrative expenses excluding provision for doubtful debts for the twelve-month period ended 31 December 2020 decreased by 5.3% to AED 231.7 million compared to AED 244.6 million in 2019, reflecting improvement in the overall operational efficiency. Total investment income for the year to date (including other comprehensive income) was down by AED 65.97 million compared to 2019 as a result of the market volatility experienced in the first quarter.

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