Abu Dhabi National Insurance Company (Adnic), one of the leading regional multi-line insurance providers, has posted a net profit of Dh235.6 million ($64 million), marking a year-on-year increase of 3.7 per cent.

Gross written premiums went up by 10.1 per cent year-on-year to Dh2.91 billion driven by growth across core lines of business. Net technical profit increased by 22.8 per cent to Dh145.4 million due to strong margins in key portfolios.

Adnic’s Board of Directors has recommended the distribution of a cash dividend of 30fils per share.

Sheikh Mohamed Bin Saif Al-Nahyan, chairman of Adnic, said: “On behalf of the Board of Directors, I am pleased to report that Adnic achieved strong results in 2018, the Year of Zayed, demonstrating the strength and dynamism of the UAE economy.”

“Adnic’s success against the backdrop of continued challenging market conditions reflects the benefits of our focus on diversification, innovation and efficiency in 2018, with new products, enhanced processes and a broader footprint underpinning our success.

“As technology continues to reshape the insurance sector, we are committed to ensuring that Adnic leads the way through innovative service delivery based on sophisticated data analysis to provide a customer experience second to none. Our focus in 2019, the Year of Tolerance, is on using our financial strength and unique capabilities to support our diverse customer base while maintaining our broader contribution to the community and creating value for our shareholders,” he added.

Ahmad Idris, CEO of Adnic, said: “2018 marked another successful year for Adnic, characterised by strong revenue growth, high net profit and sharp underwriting discipline, with our performance standing as testament to our innovative and customer-centric service offering. Through this year-on-year growth we maintained our position as one of the region’s leading insurers, delivering against key financial, regulatory and customer service metrics.”

“Adnic’s achievements were made possible by the deep support of our customers, partners and shareholders, and the exceptional contributions of our employees, and we will continue to use our strength and competitive advantage to protect all stakeholders. In 2019, with the sector well placed for growth, innovation and technological advancement will be key differentiations.

“Adnic will continue to develop as a business and seize new opportunities by investing in market leading technologies that both bring us closer to our customers while accelerating the pace of innovation in the wider sector,” he added.

Despite some headwinds, the outlook for growth in the UAE and GCC remains positive. The IMF projects 2019 GDP growth for the UAE at 3.7 per cent supported by various factors such as the robust diversified economy, the substantial government investments in the energy sector and infrastructure and the government spending related to the Expo 2020. Continued economic momentum in the UAE and GCC bodes well for the insurance sector.

Adnic’s investment strategy will continue to focus on maintaining a diversified and liquid investment portfolio. The ability of the region’s capital markets to attract foreign investments will lead to greater fund inflows, and the success of government initiatives to diversify their economies will lead to continued economic progress and create more levers of growth going forward, a statement said.

Adnic expects market conditions, notwithstanding an improving economy, to remain challenging, with no significant diminution of the level of competition. The global reinsurance market is showing some signs of improvement but pricing internationally, and therefore locally, will remain under pressure. That said, economic growth will present insurers like Adnic, with a strong market position and customer proposition, with opportunities for further sustainable profitable growth.

Adnic also expects the market to see accelerating use of new technology to drive efficiency and further improve customer experience. – TradeArabia News Service