ADNIC sustains profitability with 161 per cent increase in net profit

28/02/2017 16:43 AST

ADNIC has sustained its profitability throughout the year 2016 with strong underwriting results and net technical profit. Net profit increased from AED 205 million for 2016, compared to a net loss of AED 334.5 million for 2015.

The realignment of ADNIC's operational strategy has delivered positive results and has enabled the Company to report a strong financial performance.

The Company's prudent and selective underwriting strategy and its continued focus on balance sheet strength has been validated with consistent positive results in every quarter of 2016. Even as the business environment remains challenging, the Board of Directors, as well as the management team, are committed to delivering growth and shareholder value. Our priority is to ensure that ADNIC remains one of the regional market leaders both in terms of its financial standing and its product portfolio as we continue to develop cutting edge solutions and best-in-class customer service.

On 15 June 2016, ADNIC issued AED 390 million three-year Mandatory Convertible Bonds (MCB) bearing 7.5 per cent annual coupon. The MCB was issued as a private placement for ADNIC shareholders and was oversubscribed by 10 per cent. The MCB has been listed on ADX with effect from 23 June 2016. The purpose of the issuance was to maintain ADNIC's rating at A-, which has been affirmed by S&P with a Stable outlook. Our capital adequacy has strengthened further and is viewed "Extremely Strong" by S&P.

Gross Premium Written In spite of the implementation of prudent and selective underwriting strategy, ADNIC's Gross Written Premium grew 3.7 per cent to reach AED 2,375.5 million for the year 2016, compared to AED 2,290.7 million in 2015.

Press Release