ADNIC profit flat at AED 356 million as claims rise

Key Points

1. Abu Dhabi National Insurance posted nine-month net profit after tax of AED 356 million, broadly unchanged.
2. Insurance revenue grew 12.9% to AED 6.9 billion, but insurance service results fell 5.4%.
3. Higher claims frequency absorbed the revenue gain, leaving shareholders with essentially last year's bottom line.

The latest:

Abu Dhabi National Insurance Company reported net profit after tax of AED 356 million for the first nine months of the year, against AED 354.7 million a year earlier. Insurance revenue climbed 12.9% to AED 6.9 billion over the same period. The company said disciplined risk management and the resilience of its core operations held the underlying business steady.

Details:

• The bottom line: Net profit after tax reached AED 356 million for the nine-month period, versus AED 354.7 million in the comparable period last year, an increase of roughly AED 1.3 million. The near-flat result came despite double-digit revenue growth across the group’s main business lines.
• Revenue growth: Insurance revenue rose 12.9% to AED 6.9 billion. The company attributed the increase to its ability to capture opportunities in key segments while continuing to provide comprehensive cover for both individual and corporate clients.
• Where it was lost: Net insurance service results came in at AED 361.5 million, down 5.4% year on year. The company said the decline was the direct result of a higher frequency of claims during the period, even as it continued to meet its obligations to customers.
• Underwriting: The combined ratio stood at 92.8%, which the company presented as evidence of sustained underwriting strength. A ratio below 100% indicates that premiums earned exceeded claims and expenses on the underwriting side of the business.
• Investment income: Net investment income reached AED 228.1 million over the nine months, up 2.1%. The group said it benefited from strong growth in bond interest returns and rental income, alongside active investment exit transactions, despite temporary volatility in financial markets.
• The rating: AM Best renewed the company’s financial strength rating at A (Excellent) and its long-term issuer credit rating at a (Excellent) in September 2026, with a stable outlook on both assessments.
• The chairman: Sheikh Mohamed bin Saif Al Nahyan, chairman of ADNIC, said the company kept its focus on protecting customers, strengthening its market position and advancing its long-term growth strategy, adding that a diversified portfolio and expanding international presence would support the UAE’s economic ambitions.
• Expansion: Acting Chief Executive Gogal Madan said the launch of the company’s new branch in India and the business of an integrated insurance firm in Saudi Arabia supported its revenue diversification strategy. He cited underwriting discipline and advanced analytics as drivers of the performance.
• Not disclosed: The statement did not break out the claims increase by business line or quantify it, and did not give a figure for the India and Saudi operations’ contribution to the nine-month revenue total.

Between the lines:

The gap between 12.9% revenue growth and a flat bottom line locates the pressure precisely: underwriting, not investments. Insurance service results fell 5.4% on higher claims while investment income still rose 2.1%, meaning the portfolio cushioned a weakening core. A 92.8% combined ratio remains profitable, but the direction of travel matters more than the level if claims frequency persists.

What’s next

Full-year results will show whether the claims trend that cut insurance service results persists through the fourth quarter, and whether the India branch and Saudi operations begin contributing measurably to revenue.