ABU DHABI / WAM
Abu Dhabi National Insurance Company (Adnic) reported a net profit of AED133.6 million in Q1 of 2021, a 9% increase compared to the same quarter last year.
In a statement on Monday, Adnic said the company delivered solid performance and growth across key financial metrics. “Adnic’s performance was driven by the company’s clear strategy, underwriting discipline, operational excellence, and a diversified investment portfolio.”
Commenting on Adnic’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of Adnic, said: “Amid challenging market conditions, Adnic delivered solid results for the first quarter of 2021, with net profit increasing 9% to AED133.6 million compared to the same quarter of last year. Adnic’s robust financial performance is testament to the company’s strong foundations and market position.”
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.”
Ahmad Idris, CEO of Adnic, said: “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.”
He added: “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.”
Looking at some of the key financial highlights, underwriting discipline was maintained and Adnic delivered solid underwriting income with 17.2% growth, compared to same quarter last year. The growth in underwriting income was due to the high client retention ratio and to winning new business whilst maintaining our prudent underwriting approach. Investment income through P&L was up 8.5% compared to prior year and total investment return has recovered strongly with normalisation in financial market conditions.
Adnic remains focused on delivering high level of service and improving efficiencies through judicious investments in technology. The net profit for the first quarter represents an earnings per share of AED 0.23.