Template for discussion report and analysis of the board of directors of the
listed public shareholding company
__________________________________________________________________________________
Date 10th August 2023
Name of the Listed Company Abu Dhabi National Insurance Company PJSC
The period of the financial
statements covered by the First Half 2023
report
Strong underwriting performance with a combined ratio of 87.6% (IFRS 17 basis)
with stable net retention
Decreased expense ratio achieved through a well-maintained expense base
Overview of the main results
combined with enhanced insurance earnings
during the financial period Excellent investment income results
New accounting standard (IFRS 17) was applied since 1 January 2023 and its
impact on company performance is not material
2022 numbers were reinstated in line with IFRS 17 standards
Securities issued during the
None
financial period
Summary of the most
Strong new business wins and pipeline in 1H 2023
important non-financial events Solid UW profit across all major tier 1 portfolios
and developments during the
financial period
ADNIC has demonstrated a strong underwriting performance, reflected in net
insurance service results of AED 178.1 million.
Summary of operational The net income from investments for the first half of 2023 has increased by 79% to
AED 110.8 million. The tailwind of higher rates and changes in asset allocation
performance during the
positively impacted the portfolio. The trading portfolio generated strong returns.
financial period As an outcome of strong underwriting and investment performance ADNIC has
delivered net profit of AED 204.4 million (15.5% increase versus prior), and an
increase in earnings per share from AED 0.31 to AED 0.36
AED’000 H1 2023 H1 2022 Var.
Net insurance service result 178.107 196,440 -9.3%
Summary of profit and loss Net investment income 110,753 62,022 78.6%
during the financial period Net Insurance finance income and expenses (2,950) (3,760) -21.5%
Total income 285,910 254.702 12.3%
Other operating expenses (81.521) (77,680) 4.9%
Profit for the period 204,389 177.022 15.5%Summary of financial position
Total Deposits & cash: AED 876 million
as at the end of the financial Total Assets: AED 7.06 billion
Total Shareholders’ Equity: AED 2.73 billion
period
Summary of cash flows during Net cash used in operating activities AED 21.1 million
Net cash generated from investing activities AED 97.5 million
the financial period Net cash used in financing activities AED 228.0 million
Q2 2023 Q2 2022 Variance
Premium Retention 31.9% 31.9% 0.0%
Net Claims Ratio 64.1% 63.7% 0.4%
Expense Ratio* 18.2% 19.8% -1.6%
Main performance indicators
Combined Ratio 87.6% 83.0% 4.6%
Return on equity 7.5% 6.5% 1.0%
*incl bad debt, risk adjustment, finance income (expense)
Capacity is buoyant with over-placement common putting pressure on pricing and
signing
Expectations for the sector and Bottom line focus with increased customer satisfaction is the priority.
Continued optimisation of retentions in commercial segment.
the company's role in these Lifestyle customisable products ( PAYG, Telematics, Mobile Applications)
Behavioural predictive analytics vs traditional burning cost analytics.
expectations
Medical: utilization to stabilise and settlement cycle to further accelerate
Credit Life: Expect growth in line with overall economy
Motor: Rationalization of technical terms and conditions
Growth prospects in the medium-term outlook remain positive due to rising oil prices
Government policy will remain centered on diversifying the economy away from a
dependence on energy rents, aiming to build on Abu Dhabi and Dubai's success in
emerging as regional hubs for finance, construction, retail and tourism.
Expectations regarding the To support diversification efforts, development of the energy sector will continue in
the medium-term. Investment in the natural gas sector in particular is expected to
economy and its impact on the
increase in the years ahead to unlock the country's production potential
company and the sector The UAE's National Energy Strategy 2050 aims for 50% of electricity generation to
be sourced from renewables including nuclear power, up from less than 20% in
2021, with 38% generated by natural gas and 12% by coal
ADNIC will continue to support the economy development by providing the
insurance support in all the areas of growth
Continue to invest in technologies to improve service delivery and distribution
Future plans for growth and
Continued focus on operational efficiencies particularly in high customer impact
changes in operations in future areas
Maintain the focus on sustainability as a key operational pillar
periodsThe size and impact of current
and projected capital Net capital expenditure for the half ended 30 June 2023 was AED 4.92 million.
expenditures on the company
The developments of the
implementation of projects,
plans and transactions and
The company's board of directors noted the progress in
deals that were discussed by
implementation of the company’s strategy.
the company's board of
directors in the report for the
previous fiscal year
Charalampos Mylonas
Chief Executive Officer
Signature:
10 August 2023
Company's Seal:Abu Dhabi National Insurance Company P.J.S.C.
Board of Directors’ Statement
For the six-month period ended 30 June 2023
The Board of Directors is pleased to report Abu Dhabi National Insurance Company’s financial results for
the six months ended 30 June 2023.
ADNIC has had a strong start to the year with an Insurance Revenue of AED 2.14 billion. As we continue
to successfully unwind out dependence on heavily reinsured corporate programs our underwriting
profitability continues to be robust with a combined ratio of 87.60% and a net insurance service profit of
AED 178.1 million. The tailwind of higher interest rates and modified asset allocation positively impacted
investment income. Total investment income for the period was AED 110.8 million. As a result of strong
underwriting and investment performance, ADNIC has delivered a net profit of AED 204.4 million (15.46%
increase versus prior year) and an increase in earnings per share from AED 0.31 to AED 0.36.
We continue to invest in technology and operational efficiency across our entire value chain. These
investments in key areas will enable more cost-effective and faster policy servicing and have a positive
impact on our operations and facilitate sustainable growth. By embracing cutting-edge technology and
innovative solutions, we aim to enhance our customers' experiences, increase efficiency, and remain
adapted to market dynamics.
Sustainability is deeply ingrained in our core values, shaping the foundation of our business approach. We
are currently revamping our strategy to steer the company towards a new era of sustainable practices
that will benefit both our customers and the communities we serve substantially. In the past quarter, we
have continued to work together with major organisations, including the Reach Campaign and Emirates
Nature-WWF, which is a testament to our wide array of activities from preserving the environment to
helping communities abroad fight diseases.
We are grateful for the guidance received from the UAE’s leadership and extend our sincere gratitude to
His Highness Sheikh Mohamed Bin Zayed Al Nahyan, President of the UAE and His Highness Sheikh
Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, and His
Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi.
On behalf of the Board of Directors, we would like to thank our esteemed partners and shareholders for
their continuous support, enabling ADNIC to solidify its position as the UAE’s reliable insurer. We want to
also extend my thanks to our dedicated employees, whose hard work and commitment are instrumental
to our success. Last but not least, we extend our deepest appreciation to our customers, who continuously
place their trust in us
_________________________
Sheikh Mohamed Bin Saif Al-Nahyan
Chairman of the BoardAbu Dhabi National Insurance Company P.J.S.C.
Chief Executive Officer’s Statement
For the six-month period ended 30 June 2023
I am very pleased to provide the following status update on ADNIC’s operating performance for the six-
month period ended 30 June 2023.
As mentioned in our previous quarterly update, we continue to systematically leverage our core
competencies of customer centricity, operational excellence, available capital base, solid solvency ratio,
core underwriting excellence, robust enterprise risk management framework and market leading
reinsurance arrangements. In addition, we continue to invest heavily in the development and engagement
of our workforce with a constantly increasing number of available professional development courses and
initiatives. We were the first amongst our peers to successfully implement IFRS 17 Insurance Contracts
(IFRS 17) as of 1 January 2023. This has led to substantial transformations in the accounting of insurance
and reinsurance contracts and we remain well ahead of the curve in understanding the long term business
implications whilst we continue to graduate our operational rhythm towards this new order.
As we continue to navigate the evolving economic landscape in the second half of the year, our focus
remains on continuing to invest in our core business lines and digital capabilities. By doing so, we are
positioning ourselves optimally to capitalize on future growth opportunities and provide our customers
with the best possible service.
Beyond our core business objectives, ADNIC continues to actively engage in community initiatives and
support causes that are close to our hearts, both at home and abroad. In the past month alone, we have
partnered with the Reach Campaign to support its efforts to combat neglected tropical diseases (NTDs),
and with Emirates Nature-WWF for the third consecutive year to support their mission to build a future
where people and nature can thrive.
Key Financial Highlights (prior year numbers are reinstated in line with IFRS 17 standard requirements)
Total Insurance revenue
For the six-month period ended 30 June 2023, ADNIC's total insurance revenue stood at AED 2.14 billion,
compared to AED 2.24 billion for the same period in 2022. We continue to successfully reduce our relative
exposure to highly reinsured corporate insurance programs and focus instead on maintaining and
developing portfolios with strong underwriting income contribution potential.
Net insurance service result
For the six-month period ended 30 June 2023, ADNIC's net insurance service result stood at AED 178.1
million, against AED 196.4 million for the same period in 2022. This is aligned with the current stage of
our financial planning and financial reporting transition necessary due to the new IFRS17 standard
requirements.
Net Income from investment
ADNIC's net income from investment increased by 78.57% to AED 110.8 million for the six-month period
ended 30 June 2023, compared to AED 62.0 million for the same period in 2022. This growth can be
attributed to several key factors, including higher interest and coupon incomes, due to strategic changes
made in asset allocation in the prior year, as well as mark-to-mark market gains.Other operating expenses
Other operating expenses for the six-month period ended 30 June 2023 stood at AED 81.5 million,
compared to AED 77.7 million for the same period in 2022. This reflects our commitment to the
investments required to deliver our digital transformation strategic initiatives.
Profit for the period
The consolidated outcome of all of the above major financial streams for the six-month period ended 30
June 2023, is a Profit for the period increase of 15.46% to AED 204.4 million, compared to AED 177.0
million for the same period in 2022. We remain confident and committed that this strong trend will
continue for the remainder of the year.
I would like to thank our Board of Directors for their guidance, mentorship and unrivaled support, and our
management team and overall workforce for their hard work, discipline and dedication which is the
driving force behind our continuous achievements and success.
___________________
Charalampos Mylonas
Chief Executive Officer

Sentiment: positive