Adnic Net Profit Edges Up To Dh356 Million As Insurance Revenue Grows 12.9%

(MENAFN- Khaleej Times) Abu Dhabi National Insurance Company reported a marginal increase in net profit after tax to Dh356 million during the first nine months of 2026, compared with Dh354.7 million in the same period last year, as higher insurance revenue helped offset increased claims and investment market volatility.

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The insurer said insurance revenue rise 12.9 per cent year-on-year to Dh6.9 billion, compared with Dh6.1 billion a year earlier.

However, net insurance service results declined 5.4 per cent to Dh361.5 million from Dh382.3 million, reflecting higher claims activity during the period.

Adnic said its results reflected provisions related to geopolitical risks and flood-related claims, alongside the impact of short-term investment market volatility.

Despite these pressures, the company maintained a combined ratio of 92.8 per cent, indicating continued profitability in its underwriting operations.

Investment income rises

Net investment income increased 2.1 per cent to Dh228.1 million during the nine-month period, compared with Dh223.3 million a year earlier.

The increase was supported by higher income from bonds and rental activities, as well as investment disposals.

Meanwhile, other operating expenses declined to Dh163.2 million from Dh172.4 million, while profit before tax stood at Dh394 million, compared with Dh395 million in the corresponding period last year.

Expansion into India and Saudi Arabia

Adnic continued expanding its international operations, with its branch in Gift City, India, becoming fully operational in April 2026, supported by an experienced local team.

The company said the expansion would support its cross-border reinsurance activities and strengthen its presence in international markets.

In Saudi Arabia, Adnic highlighted the progress of its Mutakamela business as part of efforts to diversify revenue streams and support regional growth.

The company also said its partnership with Allianz Trade Middle East, now in its first year, contributed to its product offerings and overall business performance.

Focus on managing risks

Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of Adnic, said the company remained focused on strengthening its market position and expanding its international operations.

"Our resilient performance reflects the strength of our underlying business and our disciplined approach to managing risk," he said.

Jugal Madaan, Acting Chief Executive Officer of Adnic, said the company continued to maintain underwriting discipline despite higher claims and temporary volatility in investment markets.

He added that Adnic expects performance to normalise as market conditions stabilise, while continuing to invest in technology, employees and operational capabilities.

AM Best affirmed Adnic's Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Rating of "a" (Excellent), both with a stable outlook. The ratings reflected the company's very strong balance sheet, strong operating performance and appropriate enterprise risk management

while S&P Global Ratings maintained its A long-term issuer credit and insurer financial strength ratings.

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