ADNIC Announces AED 100.9 Million Net Profit For First Quarter Of 2024

Abu Dhabi National Insurance Company (ADNIC) has announced a robust net profit before tax of AED 111.8 million for the first quarter of 2024, showcasing the company's strong financial health and strategic growth. This impressive performance is supported by ADNIC's disciplined underwriting approach and significant growth in key financial metrics. The company reported a net insurance service result of AED 103.2 million for the quarter, alongside a record Gross Written Premium (GWP) of AED 3,031 million, marking a 49.9% increase from the previous year.

Strategic adjustments in asset allocation made in 2023 have continued to benefit the company, with net income from investments rising by 17.4% to AED 54.4 million in the first quarter of 2024. This increase is attributed to higher interest and coupon income, as well as mark-to-market gains.

Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, commented on the company's performance, stating, "ADNIC continues to deliver strong financial performance, reflected in our net profit before tax of AED 111.8 million for the first quarter of 2024. Our record Gross Written Premium of AED 3,031 million this quarter is a testament to our robust underwriting capabilities and strategic asset management." He further highlighted the company's dedication to operational excellence and strategic foresight, which positions ADNIC for ongoing growth and innovation within the insurance sector.

Sheikh Mohamed also noted the significant milestone achieved with the successful acquisition of Allianz Saudi Fransi Cooperative Insurance Company, enhancing ADNIC's regional presence and establishing it as a leading composite insurer across the GCC. This strategic acquisition is expected to unlock significant growth opportunities and create long-term value for stakeholders.

ADNIC's focus on operational efficiency is evident in its expense ratio of 12.3%. The company has effectively managed to keep overall expense growth significantly lower than premium growth, despite ongoing investments in expansion.

Charalampos Mylonas, Chief Executive Officer of ADNIC, expressed satisfaction with the company's strong start to 2024, marked by solid financial results and strategic growth initiatives. "Our profitability surged in the first quarter, with net profit before tax reaching AED 111.8 million – a significant 12.1% increase year-over-year. Our robust underwriting performance, coupled with strong investments results, has been the primary driver of our profitability," stated Mylonas.

The combined strength of underwriting and investment performance underscores ADNIC's robust financial results. This solid foundation supports the company's continued growth and success in the competitive insurance market.

With inputs from WAM