ADNIC achieves 2024 full year net profit before tax of AED 466.4 million
Abu Dhabi National Insurance Company (ADNIC), one of the leading regional multi-line insurance providers for both corporates and individuals, delivered a remarkable performance during 2024, with the highest ever reported total Insurance Revenue as well as overall Net Profit, driven by a robust financial performance and the successful implementation of key strategic growth initiatives.
Following ADNIC's successful acquisition of a 51% stake in Allianz Saudi Fransi Cooperative Insurance Company (ASF) in Saudi Arabia, ADNIC has completed a full rebranding exercise and the operation in KSA is now actively trading under its new name of Mutakamela Insurance Company. All the financials discussed here follow the full consolidation of Mutakamela's performance from the date of the transaction's completion.
As a result of strong underwriting and investment performance, Net Profit Before Tax for the twelve-month period ended 31 December 2024 has grown by 16.3% year on year to AED 466.4 million.
As of 31 December 2024, Total Assets have grown by 52.9% year on year to reach AED 11.8 billion and Total Shareholders' Equity has grown by 20.6% for year on year to reach AED 3.5 billion.
Commenting on ADNIC's performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said: '2024 presented another milestone year for ADNIC Group. We continued to exhibit remarkable resilience, despite a challenging year for the UAE insurance industry, characterised by unprecedented major loss events including the adverse weather events in April. We also continued to forge ahead with our strategic priorities. We strengthened our presence in the region, through our acquisition of Allianz Saudi Fransi, in addition to investing in our technologies, further enhancing our operational efficiency and client service excellence, in line with our ambitions of becoming a regional insurance leader.'
Charalampos Mylonas, Chief Executive Officer of ADNIC said: "In 2024, ADNIC continued to deliver exceptional financial results, achieving an all-time record performance both in terms of revenue as well as net profitability, reflecting our ability to deliver consistent value through our diversified product offerings and strategic market positioning. Following the complete operational and financial integration of our KSA subsidiary, Mutakamela Insurance, we remain committed to solidifying our regional presence and further strengthen our position as a key player across the wider GCC region.'
Key financial highlights
Insurance Revenue has grown by 54.6% year on year to reach an all-time high of AED 7.2 billion. This reflects our continuous excellence in the provision of corporate insurance solutions for mega projects as well as our underlying robust multi-channel, product line and geographical infrastructure and readiness.
Insurance Service Result has grown by 22.5% year on year to reach AED 448.9 million. While the insurance market in UAE was tremendously impacted by the flood events ADNIC was the only top tier UAE listed company able to deliver double-digit growth in this critical KPI which reflects the robustness and strong underwriting and analytical discipline in the way our business is managed and produced.
Net Investment Income has grown by 31.9% year on year to reach AED 272.7 million. It reflects the resilience of our underlying asset allocation mix to the emerging market conditions and trends.
Net Financial Result which is the consolidated output of all of the above values after incorporation of the IFRS-17 required risk charge and discounting adjustments has grown by 18.9% year on year to reach AED 690.7 million.
Profit Before Tax has grown by 16.3% year on year to AED 466.4 million the highest ever recorded in ADNIC's long history. Tax expense for the year is AED 46.9 million yielding a Profit After Tax for the year of AED 419.5 million.
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