Abu Dhabi National Insurance’s gross written premium hits best ever Dh5.13b in 2022

DUBAI: Abu Dhabi National Insurance Company (ADNIC) grows an impressive 20.1% in gross written premiums to AED5.13bn in 2022, but full-year net profit falls from AED401.8m to AED377.9m Dirham. The company said the reason for the drop in profit was related to market weakness.

ADNIC said in a statement that this softening was taking place “in various products following some recent rating discipline in the commercial sector”. Abu Dhabi companies are among the most systemically important companies of their kind.

But growth in gross premiums will bring new impetus. AED 5.13 billion, the company’s highest achievement to date. Chairman Sheikh Mohamed Bin Saif Al Nahyan said it was a “significant achievement and a new milestone” for the company. “This achievement was driven by the excellent growth of 38.2 per cent in the commercial segment and the retention of the consumer segment in the face of significant price pressure and intense competition.”

One area where the company has suffered is in terms of investment returns. “Investment income in 2022 has been impacted by extreme market volatility across all asset classes, including fixed income,” a statement said. “However, the portfolio performed strongly in the fourth quarter of 2022, bringing investment income back to AED144.2 million.”

Ahmad Idris, Chief Executive Officer, said: “Despite global economic uncertainty and inflation looming, ADNIC’s performance is a testament to our ability to successfully navigate the market as we continue to invest in multiple key strategic areas.”

“ADNIC’s loss rate has remained stable even as economic activity has normalized,” Sheikh Mohamed said in a statement. “Despite strong business growth, underwriting performance in the commercial segment was solid, with our underwriting profit up 13.8% over the previous year. Performance in the consumer segment has stabilized after returning to pre-pandemic levels and achieved solid growth performance, which accounted for 34% of the company’s total net underwriting income.”