Abu Dhabi National Insurance Company (ADNIC),a leading regional multi-line insurance providers for both corporates and individuals, increased its insurance revenue by 54% in the first half of this year to an all-time high of AED3.3bn ($898m), compared to AED2.1bn for the same period in 2023.
For the six months ended 30 June 2024, profit before tax grew by 10% year on year to AED224.3m.
During the second quarter of this year, ADNIC completed the acquisition of a 51% stake in Allianz Saudi Fransi Cooperative Insurance Company (ASF) in Saudi Arabia. This move solidifies the Group’s position as a leading insurer in the region, ADNIC says in a statement.
ADNIC added, “We are confident that this acquisition will enable us to offer industry-leading solutions across all major insurance lines.”
All the financials discussed here follow the full consolidation of ASF’s performance from 17 April 2024, the date of the completion of the acquisition.
Other financial highlights include:
Net insurance service result
For the six-month period ended 30 June 2024, the net insurance service result increased by 15% to reach AED204.3m against AED178.1m for the same half in 2023. This reflects the robustness and strong underwriting and analytical discipline in the way the business is managed and produced, says ADNIC.
Net Income from investment
Net income from investment grew by 8% to reach AED119.1m for 1H2024, compared to AED110.8 m for the same period in 2023. ADNIC attributes this to the resilience of its asset allocation mix amidst the underlying market conditions and trends.
Other operating expenses
Other operating expenses increased to AED108.9m up from AED81.6m for the six months ended 30 June 2024. This follows the full ASF consolidation and ongoing projects.
As of 30 June 2024, at a consolidated Group level, total assets increased by 41% to AED10.9bn compared to AED7.7bn as of 31 December 2023. Total shareholders’ equity stood at AED3.2 bn
Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, chairman of ADNIC, said, “Our accomplishments demonstrate our commitment to operational excellence and strategic foresight. Looking ahead, ADNIC's strong financial foundation and skilled team position us for sustained growth and innovation, delivering value for shareholders and contributing to the regional insurance sector's development.”
Mr Charalampos Mylonas, CEO of ADNIC, said, “ADNIC has achieved a record Gross Written Premium (GWP) of AED4,406.0m which represents a surge of 47% compared to the same period last year. Earlier in the year, the UAE experienced its heaviest rainfall in recorded history, resulting in severe flooding across the country. Despite the unprecedented disruption, the quick and effective response by the UAE’s leadership, our emergency response teams, as well as the public and private sectors demonstrated the resilience of the nation during this unique time. ADNIC through its sophisticated Enterprise Risk Management framework and market-leading comprehensive reinsurance risk transfer programs was able to respond swiftly to this crisis”.