Abu Dhabi National Insurance Company (ADNIC) has demonstrated remarkable resilience and growth throughout 2024, achieving record-breaking financial performance and strategic expansion. The company’s unwavering commitment to operational excellence and innovation has solidified its position as a leading insurer in the Middle East.
Financial Performance
In the first half of 2024, ADNIC reported a net profit before tax of AED 224.3 million, marking a 10% increase compared to the same period in 2023. This growth trajectory continued, with the net profit before tax reaching AED 342.5 million for the nine months ended September 30, 2024, representing a 13.5% year-on-year increase. By the end of the year, ADNIC achieved a net profit before tax of AED 466.4 million, a 16.3% rise from the previous year, underscoring the company’s robust financial health.
Total assets experienced significant growth, expanding by 41% to AED 10.9 billion as of June 30, 2024, and further increasing to AED 12 billion by September 30, 2024. By December 31, 2024, total assets reached AED 11.8 billion, reflecting a 52.9% year-on-year growth. Shareholders’ equity also saw a substantial rise, standing at AED 3.2 billion in June 2024 and growing to AED 3.5 billion by year-end, a 20.6% increase from the previous year.
Strategic Expansion
A pivotal development in 2024 was ADNIC’s acquisition of a 51% stake in Allianz Saudi Fransi Cooperative Insurance Company (ASF) in Saudi Arabia. This strategic move, completed in the third quarter, expanded ADNIC’s footprint in the GCC region. Following the acquisition, ASF underwent a rebranding and now operates as Mutakamela Insurance Company, fully integrated into ADNIC’s operations. This expansion aligns with ADNIC’s vision to become a regional insurance leader, offering innovative products and exceptional customer service across the GCC.
Insurance Revenue and Services
ADNIC’s insurance revenue reached unprecedented levels in 2024. For the six months ended June 30, 2024, total insurance revenue grew by 54% year-on-year to AED 3.3 billion. This upward trend continued, with insurance revenue hitting AED 5.2 billion for the nine months ended September 30, 2024, a 57.2% increase from the previous year. By year-end, total insurance revenue stood at AED 7.2 billion, reflecting a 54.6% year-on-year growth. This impressive performance is attributed to ADNIC’s excellence in providing corporate insurance solutions for mega projects and its robust multi-channel, product line, and geographical infrastructure.
The net insurance service result also saw positive growth, reaching AED 204.3 million for the first half of 2024, a 15% increase from the same period in 2023. For the full year, this figure grew by 22.5% to AED 448.9 million. These results highlight ADNIC’s strong underwriting and analytical discipline in managing its business.
Investment Income
ADNIC’s investment strategies yielded favorable outcomes in 2024. Net investment income for the six months ended June 30, 2024, was AED 119.1 million, an 8% increase from the same period in 2023. This growth accelerated in the latter half of the year, with net investment income reaching AED 202.3 million for the nine months ended September 30, 2024, a 27.3% year-on-year increase. By year-end, net investment income stood at AED 272.7 million, reflecting a 31.9% growth compared to the previous year. These figures underscore the resilience of ADNIC’s asset allocation amidst evolving market conditions.
Operational Resilience
The year 2024 presented unique challenges, notably unprecedented rainfall in the UAE leading to severe flooding. Despite these events, ADNIC’s sophisticated Enterprise Risk Management framework and comprehensive reinsurance programs enabled a swift and effective response. The company’s ability to navigate such challenges while maintaining financial stability speaks to its operational resilience and commitment to stakeholders.
2025 Outlook
As of February 25, 2025, ADNIC has not yet released its financial results for the year. The most recent available data pertains to the fiscal year ending December 31, 2024. However, ADNIC’s strong performance in 2024, including a net profit before tax of AED 466.4 million and a total asset growth of 52.9% year-on-year, suggests a positive trajectory for 2025.
A significant factor shaping ADNIC’s 2025 performance is its strategic expansion into Saudi Arabia with the acquisition of a majority stake in Allianz Saudi Fransi Cooperative Insurance Company, now rebranded as Mutakamela Insurance Company. This move strengthens ADNIC’s regional presence and market reach, positioning the company for continued growth.
ADNIC’s continued focus on operational excellence, market expansion, and customer-centric services is expected to drive sustained growth in 2025.
