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Adnic swings to $81m loss in H1

ABU DHABI, August 13, 2015

Abu Dhabi National Insurance Company (Adnic) has reported a net loss of Dh299 million ($81.3 million) for the first half of 2015 compared to a net profit of Dh104 million for the same period in 2014.

For the six month period ended June 30, 2015, Adnic’s gross premium written reduced by 9.4 per cent to Dh1.40 billion compared to Dh1.55 billion for the same period in 2014.

The overall premium retention ratio for the company increased to 51 per cent for the first half of 2015 compared to 46 per cent for the first half of 2014.

For the first half of 2015, Adnic reported a net underwriting loss of Dh248 million compared to a Net underwriting profit of Dh149 million for the same period last year.

Adnic’s net investment and other income was Dh56 million for the first half of 2015 compared to Dh60 million for the same period last year.

As result of further strengthening the doubtful debt provision, the company reported general and administrative expense of Dh107 million for the first half of 2015 compared to Dh105 million for the same period last year.

Adnic’s cash and cash equivalents stood at Dh550 million as at June 30 2015, compared to Dh559 million as at December 31, 2014.

Total company investments including cash in time deposits, bank accounts and investment properties increased by 2 per cent to Dh2,784 million as at June 30, 2015, compared to Dh2,731 million as at December 31, 2014.

The total assets of the company increased by 5 per cent to Dh5,829 million as at June 30 2015, compared to Dh5,556 million as at December 31 2014.

Commenting on these results, Khalifa Mohamed Al-Kindi, chairman of Adnic, said: “The Board of Directors supports the corrective actions taken by the management, and is confident that these steps along with the enhancement of the company’s reserving policy will stir Adnic in the right direction going forward.”

Ahmad Idris, CEO of Adnic said: “We have taken appropriate measures to return Adnic to its usual operating performance.”

“The company has conducted a comprehensive review of its technical reserves, which led Adnic to increase its reserves. Adnic will follow the appropriate reserving standards in a strict manner. The change in reserving policy has impacted our earnings for the period, causing a net loss.

“Adnic remains determined to return to our traditional levels of operating performance through prudent underwriting and excellent customer service,” Idris added. – TradeArabia News Service




Tags: Adnic | net loss | 2015 |

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