Abu Dhabi National Insurance Company reports Q1 net profit of Dhs122.6m, up 133% y-o-y

The Abu Dhabi National Insurance Company (ADNIC) reported a Q1 2020 net profit of Dhs122.6m, up 133.1 per cent over Dhs52.6m it reported in the corresponding period last year.

Consequently, its earnings per share were Dhs0.22 per share compared to Dhs0.09 per share in Q1 2019.

Its gross premiums increased to Dhs1.87bn, a year-on-year growth of 7.7 per cent.

Underwriting profits also increased substantially to Dhs151.2m, a growth of 79.4 per cent over the previous year.

General and administrative expenses for the first quarter decreased slightly to Dhs63.6m, compared to Dhs64m for Q1 2019.

Meanwhile, net technical profit for the quarter increased by 336.8 per cent to Dhs89.1m, up from Dhs20.4m reported in the same quarter last year.

ADNIC’s net investment and other income increased by 8.4 per cent to Dhs35m, compared to Dhs32.3m in Q1 2019.

A statement by the company attributed its performance to “ongoing commercial momentum and effective business continuity measures.”

It added that financial market volatility impacted investment returns, albeit at a lower level compared to the broader market drawdown, and said that given the ongoing Covid-19 situation, it has focused strongly on maintaining cost discipline.

“Like other businesses, ADNIC also faced the challenges of the Covid-19 global pandemic and the disruptions caused to daily life. As the pandemic develops the company will take proactive steps to ensure minimal disruption to business as well as continuous support to our customers and stakeholders,” said Sheikh Mohamed Bin Saif Al-Nahyan, chairman of ADNIC.

“The company contributed to the wider UAE community by partnering with Ma’an Abu Dhabi on its ‘Together We Are Good’ programme, while becoming one of the country’s first insurers to arrange teleconsultation facilities for customers with medical providers,” added the chairman.