ADNIC, which is marking the 50th year of operations, had a premium retention ratio of 31.9% for the six-month period ended June 30, 2022, compared to 34.3% a year ago. Image Credit: Supplied

Dubai: A 20.9 per cent increase in gross premiums fuelled Abu Dhabi National Insurance Company (ADNIC) to a net profit of Dh186.9 million for the first-half of 2022. Gross written premiums for the period was Dh3.23 billion, a gain on the Dh2.67 billion last year.

Even then, profit came in lower than last year's Dh248.7 million, down nearly 25 per cent. 

But there was a drop in net underwriting income, from Dh280.3 million to Dh253.9 million, while net investment and other income was Dh62 million (Dh87.3 million in H1-2021). ADNIC maintains that net underwriting income ‘remains strong’ at a combined ratio of 82 per cent and reached D253.9 million ‘despite the ongoing price competition and restoration of consumer behavioral patterns at pre-pandemic level’.

“ADNIC delivered a robust second quarter in terms of top-line growth; loss ratios were broadly stable despite pricing pressures in certain lines as well as normalised consumer behavior,” said Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC.

“Net underwriting income for the first-half of the year was Dh253.9 million. The quarter-on-quarter growth in net underwriting income was 24.2per cent, due to a well-diversified book of business.”

The Chairman said investment income was ‘impacted by high mark-to-market volatility across several asset classes with most major asset classes down between 10 per cent and 20 per cent for the year-to-date’.

As we move into the second half of the year, we are optimistic about our future outlook and will continue to invest in the latest technologies to adapt to current and future market needs, as well as meet the UAE’s government aspirations

- Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC