ADNIC reports net profit of Dhs204m in H1 2023

Abu Dhabi National Insurance Company (ADNIC) reported its financial results for the six-month period ended June 30. The insurance firm reported a net profit of Dhs204.4m.

The company in its earnings release reported an insurance revenue of Dhs2.14bn.

It said that its underwriting profitability continued to be robust with a combined ratio of 87.60 per cent and a net insurance service profit of Dhs178.1m.

Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, chairman of ADNIC, said, “We continue to invest in technology and operational efficiency across our entire value chain. These investments in key areas will enable more cost-effective and faster policy servicing and have a positive impact on our operations and facilitate sustainable growth. By embracing cutting-edge technology and innovative solutions, we aim to enhance our customers’ experiences, increase efficiency, and remain adapted to market dynamics.”

“Sustainability is deeply ingrained in our core values, shaping the foundation of our business approach. We are undergoing a revamp in our strategy to steer the company towards a new era of sustainable practices that will benefit both our customers and the communities we serve substantially.”

ADNIC’s outlook

The insurance giant noted that the combined factors of higher interest rates and modified asset allocation positively impacted investment income, with total investment income for the period at Dhs110.8m.

Charalampos Mylonas, CEO of ADNIC, said, “We were the first amongst our peers to successfully implement IFRS 17 Insurance Contracts (IFRS 17) as of January  1. This has led to substantial transformations in the accounting of insurance and reinsurance contracts and we remain well ahead of the curve in understanding the long-term business implications while we continue to graduate our operational rhythm towards this new order.

He added, “Beyond our core business objectives, ADNIC continues to actively engage in community initiatives and support causes that are close to our hearts, both at home and abroad.”