The financial and solvency positions of the larger UAE insurers including ADNIC are generally resilient in the face of the heavy damage caused by floods in April 2024, according to the board of directors of Abu Dhabi National Insurance Company (ADNIC) in a discussion and analysis report as it released its financial results for 2024 in February 2025.
However, the report added, “We expect that a significant number of listed insurers in UAE have solvency levels which are close to the regulatory minimum, which might cause critical issues in the near future and some market consolidation."
Expectations for the insurance sector and ADNIC’s role
Unprecedented rainfall in UAE in April 2024 caused major floods that impacted the insurance industry heavily. The floods are reported to have caused major claims to spike in the motor, property, business interruption and travel sectors of the insurance market. The majority of the impact is transferred to the reinsurance market which has caused the hardening of reinsurance prices.
On its part, the report said that ADNIC had proven its resilience to the major events and adequacy of the reinsurance protection for major events.
In 2024, ADNIC delivered exceptional results with the highest ever reported total insurance revenue as well as overall net profit, driven by robust financial performance and the successful implementation of key strategic growth initiatives. ADNIC showed a strong underwriting performance, reflected in net insurance service results of AED448.9m ($122.2m) for 2024. Net profits jumped by 16.3% year on year to AED466.4m in 2024.
Future plans for growth
The report says that ADNIC continues to maintain and invest in a sophisticated enterprise risk management framework and market leading comprehensive reinsurance risk transfer programmes.
The company is also moving ahead with establishing a dedicated AI-specific data management unit to ensure the continued delivery of optimal risk-reward financial returns, and continued focus on operational efficiencies, particularly in high customer impact areas.
The report said that ADNIC’s digital and AI initiatives are channeled into two key streams – the first focuses on internal applications to enhance capacity, capability and robustness, while the second emphasises customer experience journeys, customer self-service and intermediate ports. The ultimate objective is to establish a fully integrated digital ecosystem, substantially reducing paperwork and solidifying ADNIC’s position as an industry leader in technological innovation.
ADNIC will also maintain a focus on sustainability as a crucial operational pillar.