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ABU DHABI - Abu Dhabi National Insurance Company (ADNIC) has delivered a strong net profit before tax of AED 111.8 million for the first quarter of 2024, underlining the company’s robust financial performance and strategic growth initiatives.
This strong performance is underpinned by ADNIC's robust underwriting discipline and healthy growth in key metrics. The company's net insurance service result stood at AED 103.2 million for the quarter, and it achieved a record Gross Written Premium (GWP) of AED 3,031 million—a substantial growth of 49.9% compared to the same period last year.
Strategic asset allocation adjustments implemented in 2023 continue to pay dividends. Net income from investments for the first quarter of 2024 increased by 17.4% to AED 54.4 million, driven by higher interest and coupon income, along with mark-to-market gains.
Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said, “ADNIC continues to deliver strong financial performance, reflected in our net profit before tax of AED 111.8 million for the first quarter of 2024. We also achieved a record Gross Written Premium of AED 3,031 million this quarter, a testament to our robust underwriting capabilities and strategic asset management. These successes reflect our dedication to operational excellence and strategic foresight, positioning ADNIC for sustained growth and innovation in the insurance sector."
He added: “Following the strong close to the first quarter, ADNIC achieved a significant milestone with the successful acquisition of Allianz Saudi Fransi Cooperative Insurance Company. This strategic move strengthens our regional presence and positions us as a leading composite insurer across the GCC. We are confident that this acquisition will unlock significant growth opportunities and create long-term value for our stakeholders.”
ADNIC's commitment to operational efficiency is reflected in an expense ratio of 12.3%. Despite ongoing investments in growth, the company has successfully managed to keep overall expense growth meaningfully lower than premium growth.
The combined strength of underwriting and investment performance is evident in ADNIC's strong financial results. This robust performance lays a strong foundation for the company's continued growth and success.
Charalampos Mylonas, Chief Executive Officer of ADNIC, said, “I am pleased to announce ADNIC's strong start to 2024, marked by solid financial results and strategic growth initiatives. Our profitability surged in the first quarter, with net profit before tax reaching AED 111.8 million – a significant 12.1% increase year-over-year. Our robust underwriting performance, coupled with strong investments results, has been the primary driver of our profitability.”