ADNIC H1 profit falls 14% after geopolitical risks and flood claims weigh

Dubai: Abu Dhabi National Insurance Company reported a 14.6% year-on-year decline in first-half profit after tax to Dh201 million, with geopolitical risks, flood-related claims and short-term investment market volatility weighing on earnings.

Profit before tax fell 13.8% to Dh225.1 million from Dh261.2 million a year earlier, while the company said the results included prudent provisions linked to geopolitical risks and flood claims.

Insurance revenue still edged higher to Dh4.1 billion during the six months ended June 30, compared with Dh4 billion in the same period last year.

Claims weigh on insurance result

ADNIC's net insurance service result declined to Dh215.4 million from Dh258.5 million a year earlier, reflecting the more challenging claims environment during the period.

Gross written premiums reached Dh6.14 billion, supported by growth from strategic clients and additional business from major construction projects.

The group reported a combined ratio of 95.2%, a key measure of underwriting performance that compares claims and operating costs with premiums earned.

Investment income provides support

Net investment income increased 5.6% to Dh150.4 million from Dh142.4 million in the first half of 2025.

ADNIC attributed the increase to higher bond interest income and rental income, together with disposal activity across its investment portfolio.

Other operating expenses rose to Dh115.5 million from Dh110.8 million a year earlier.

India expansion moves ahead

ADNIC continued its overseas expansion during the period, with its GIFT City branch in India becoming fully operational from April 1.

The branch builds on the insurer's existing cross-border reinsurance business and gives the company a direct presence in the Indian market.

ADNIC also signed an agreement with the UAE Ministry of Foreign Affairs during the second quarter to provide an insurance programme for employees and their families.

"Alongside our financial performance, we continued to make meaningful progress against our strategic priorities through the successful operational launch of our India branch and the strengthening of partnerships that create long term value for our customers," said Jugal Madaan, Acting Chief Executive Officer of ADNIC.