Dubai: The UAE’s biggest insurer ADNIC closed 2023 with its highest profits ever, at Dh401.2 million, from a 12.18 per cent rise. Into the new year, the Abu Dhabi headquartered insurer will be boosted by its acquisition of the Allianz Saudi Fransi Co-operative Insurance Co., which would open up new market possibilities in Saudi Arabia.
There will be more markets too. ADNIC is ‘committed to strengthening its position as a key player in the GCC region and is actively exploring markets to expand its geographical footprint’, said a statement.
According to Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, “The successful acquisition of Allianz Saudi Fransi which we expect to finalise in early 2024 will further strengthen our regional presence, positioning us as a leading composite insurer across the GCC.
“ADNIC is well-positioned to capitalise on future opportunities and maintain its leadership in the UAE insurance market.”
The domestic insurance sector had seen an unprecedented number of M&A activity through these three years, with consolidation being the mantra as the big names seek improved margins and claims records.
Across the board, insurance premiums are rising, whether that’s in medical or motor, marine or property cover.
In 2023, ADNIC's total insurance revenues came to Dh4.64 billion, a slight dip on the Dh4.66 billion a year ago. The net insurance service total was Dh366.6 million, against Dh382.6 million.
On 2024 prospects, ADNIC said: “(AUE insurance sector) capacity is buoyant with over-placement common putting pressure on pricing and signing.
“Bottom-line focus with increased customer satisfaction is the priority. (Plus) continued optimisation of retentions in commercial segment.”
ADNIC's net income from investment increased to Dh206.7 million – “Outstanding investment book performance, which demonstrated growth at 43.3 per cent,” the insurer added. “Significant growth in net profit at 12.2 per cent (was) driven by balanced insurance and investment operations performance combined with controlled expense base.”
“ADNIC’s remarkable performance in the year 2023 is a result of our strategic focus on operational efficiency, innovation and market expansion,” said Charalampos Mylonas, CEO of ADNIC.