Adnic announces first profit in three years

Abu Dhabi National Insurance Company (Adnic) on Sunday announced its first annual profit in three years, following its decision to raise motor and medical premiums.

The insurer, the UAE’s third largest by gross premium income, posted a Dh205 million net profit for 2016, compared with a loss of Dh334.5m the year earlier.

Gross written premiums rose to Dh2.38 billion in 2016 from Dh2.29bn in 2015. Net underwriting profit rose to Dh342.6m from a loss of Dh228.9m in the previous year.

Net profit for the fourth quarter of the year hit Dh61.5m, compared with a loss of Dh3.4m a year earlier, and Dh36.1m profit in the three months to the end of September.

“The implementation of prudent underwriting strategy has resulted in premium growth for the year and also has strengthened Adnic’s long-term financial and operational performance,” said Adnic’s chief executive, Ahmad Idris, in a statement.

“The management team is thankful to our customers, business partners and shareholders, who have supported the continuous development of Adnic.”

S&P removed Adnic from its negative watch list in July last year, following an increase in capital and an improvement in profitability.

The insurer’s shares closed at Dh2.4 on Sunday and are down 7 per cent since the start of the year.

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