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ADNIC Profit Tumbles 93.4pc

The company incurred impairments amounting to Dh307 million on assets available for sale during the first two quarters of the current year, an ADNIC statement posted on the website of the Abu Dhabi Stock Exchange said.

ADNIC’s net investment and other income during the first nine months of this year amounted to Dh140.53 million prior to impairments, while the corresponding figure for the previous year was Dh176.97 million.

However, the gross premiums for all classes of insurance increased to Dh 1.21 billion in the first three quarters of this year against the previous year’s figure of Dh1.13 billion. “This represents a growth of 7.1 per cent in terms of insurance revenue due to our increased focus on product distribution while maintaining resilient focus on underwriting prudence,’’ the statement said, quoting Walid A Sidani, Chief Executive Officer of ADNIC.

Total assets of the company also registered a growth during the first nine months this year to Dh3.542 billion as against 3.191 billion achieved during the corresponding 2008 period.

ADNIC earned Dh262 million as underwriting income during the first nine months as against Dh176.96 achieved last year.

“This represents a growth of 46 per cent in income primarily due to ADNIC’s strategy to increase risk retention and appetite,” the statement said. Pointing out that Standard and Poor had given ‘stable outlook’ rating for ADNIC, the statement said, “his achievement along with our revitalised focus on customer services and distribution channel expression allow us to maintain our steady tempo forward to deliver our promise as a reliable insurer.” — ramavarman@khaleejtimes.com