Abu Dhabi National Insurance Company (ADNIC) reported a 14.6% year-on-year decline in its first-half profit after tax, which fell to Dh201 million for the period ending June 30, 2026. The insurer attributed the downturn to a combination of geopolitical risks, significant flood-related claims, and volatility within short-term investment markets.
The company’s profit before tax also saw a contraction, dropping 13.8% to Dh225.1 million, down from Dh261.2 million during the same period last year. ADNIC noted that these financial results incorporate prudent provisions specifically allocated to address the impact of the aforementioned geopolitical uncertainties and flood claims.
Despite these challenges, the firm’s insurance revenue showed resilience, rising to Dh4.1 billion compared to Dh4 billion in the first half of 2025. However, the net insurance service result fell to Dh215.4 million from Dh258.5 million, highlighting the difficult claims environment the company navigated during these six months. The group recorded a combined ratio of 95.2%, reflecting its underwriting performance.
Gross written premiums reached Dh6.14 billion, bolstered by new business from major construction projects and growth among strategic clients. Meanwhile, net investment income improved by 5.6% to Dh150.4 million, up from Dh142.4 million in the previous year. This growth was driven by increased rental income, higher bond interest, and strategic disposal activity within the firm’s investment portfolio.
Operational expenses saw a slight increase, rising to Dh115.5 million from Dh110.8 million. During the second quarter, ADNIC expanded its service reach by signing an agreement with the UAE Ministry of Foreign Affairs to provide a comprehensive insurance program for ministry employees and their families.
International expansion remained a core focus, with the company’s branch in India’s GIFT City becoming fully operational on April 1. This move establishes a direct presence in the Indian market, building upon the insurer’s existing cross-border reinsurance operations.
Jugal Madaan, Acting CEO of ADNIC, stated that the company continues to advance its strategic priorities. He emphasized that the successful launch of the India branch and the strengthening of key partnerships are essential for creating long-term value for customers, even while the firm manages its current financial performance.
The group reported a combined ratio of 95.2%, a key measure of underwriting performance that compares claims and operating costs with premiums earned.
Other operating expenses rose to Dh115.5 million from Dh110.8 million a year earlier.
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Source: Gulf News
