Abu Dhabi: Abu Dhabi National Insurance Company’s (Adnic) gross written premium increased 9 per cent to Dh2.63 billion last year from Dh2.41 billion in 2013.
Net underwriting loss last year was Dh157 million compared to Dh266 million in 2013, the company said as it announced its annual results for 2014 on Thursday.
Ahmad Idris, chief executive officer of Adnic, said the increase in the gross written premium was largely driven by the growth in the commercial lines portfolio.
“However, 2014 was a year, which highlighted important challenges faced by the company. The traditionally profitable property, marine, and aviation lines of business were negatively impacted by losses although low in frequency, but high in value.”
“Within consumer lines, while Adnic is taking firm action to realign the motor and medical portfolios, the 2014 results reflect the servicing of the run-off loss making portfolios.”
The company added that net investment income increased by 7 per cent to Dh106 million for the year 2014 compared to Dh100 million in 2013. It’s net loss for the year 2014 is Dh280 million compared to the net profit of Dh156 million in 2013.
Idris said during 2014, Adnic undertook a series of initiatives, which positioned the company well to prosper within the emerging economic background bringing greater stability, transparency, and healthier competition to a more sustainable UAE insurance industry.
“Our continued commitment to service, product and innovation remains central to our business strategy. Aligned to our selective and prudent underwriting practices, I am confident that this strategy will return Adnic to sustained profitability and shareholder value in 2015 and beyond.”
“Adnic’s performance will be driven by a new leadership that will steer the company towards operational, commercial and strategic improvements.”
The company provides insurance to individuals and corporates to manage unpredictable health, life and general risks. It is also a provider of risk underwriting solutions across the Middle East and North Africa (Mena) region.
Founded in the UAE in 1972, it has a wide network of branches as well as sales and service centers across the country.
Adnic is publicly owned and listed on the Abu Dhabi Securities Exchange.