Adnic posts Dh227.3m net profit in 2017, rising 11%
Net underwriting profit stood at Dh304m compared to Dh342.6m in 2016 as expenses decreased
Abu Dhabi National Insurance Company’s (Adnic) net profit grew by 11 per cent in 2017 largely due to an increase in the net investment income, its chief executive officer said in Abu Dhabi.
The company, listed on Abu Dhabi Securities Exchange, posted a net profit of Dh227.3 million in 2017 compared to a net profit of Dh205 million for 2016. Net investment income and other income increased by 12 per cent to Dh114.2 million last year as against Dh102.4 million in 2016.
Net underwriting profit stood at Dh304 million compared to Dh342.6 million in 2016 where as general and administrative expenses decreased to Dh191 million compared to Dh239.9 million for 2016.
Ahmad Idris, the chief executive officer of the firm said the reduction in total administrative costs did not come from the head count side or the benefits side but due to significant reduction in doubtful debts. “The head count number and benefits has increased a little bit in 2017,” he explained during a presentation of the financial results at Adnic’s head office in Abu Dhabi yesterday.
Diversification
Giving an outlook on the insurance market, he said it is expected to grow due to the policies of the government on diversification of the economy as well as the new projects being launched.
“The UAE, as a result of diversification of the economy and ambitious plans of the government, gives us the confidence that the overall insurance market will grow. Definitely, by following the strategy we have laid down on how to grow makes us sure that we will have a share of the overall market growth despite the competition.”
He also expects consolidation in the insurance market but did not give a specific time when this could happen.
The company’s total investments including cash in time deposits, bank accounts and investment properties increased by 8 per cent to Dh3.39 billion in 2017 compared to Dh3.14 billion in 2016 and total assets have gone up by 3.2 per cent to Dh6.70 billion in 2017.