Adnic profit up 60% despite headwinds

Premium retention ratio hits 34.3%, but investment income feels the heat

Abu Dhabi National Insurance Company (Adnic) has reported a remarkable set of numbers for the first half 2020, with profits up 60 per cent to Dh189.7 million, despite having to battle the Covid-19 pandemic.

Gross written premiums (GWP) were up 9.1 per cent to Dh2.56 billion, with net premiums at Dh877 million — a 14.8 per cent year-on-year increase. The insurer’s premium retention ratio reached 34.3 per cent during this period, up from 32.6 per cent

But it was on investment income that Adnic took a hit, down 30 per cent to Dh55.1 million compared to Dh79.1 million a year earlier, brought on by market volatility arising from the pandemic.

“Strong gains were achieved in the commercial lines,” said Shaikh Mohammad Bin Saif Al Nahyan, Chairman. “Despite challenging market conditions, specifically for consumer

lines, gross written premium was maintained almost at the same level as the previous year.

“The impact of the pandemic is an evolving situation and Adnic will continue to monitor the impact on its business.”