ADNIC H1 profit declines 14% as geopolitical tensions and flood claims weigh on earnings

Date:

Insurance revenue rises to Dh4.1 billion, while investment income climbs to Dh150.4 million.

Dubai: Abu Dhabi National Insurance Company reported a 14.6% year-on-year decline in first-half profit after tax to Dh201 million, as geopolitical tensions, flood-related claims and short-term volatility in investment markets weighed on earnings.

Profit before tax declined 13.8% to Dh225.1 million from Dh261.2 million a year earlier, with the company attributing the weaker performance partly to prudent provisions for geopolitical risks and flood-related claims.

Insurance revenue edged up to Dh4.1 billion in the six months ended June 30, compared with Dh4 billion in the same period a year earlier.

Claims weigh on insurance performance

ADNIC’s net insurance service result fell to Dh215.4 million from Dh258.5 million a year earlier, reflecting a more challenging claims environment during the period.

Gross written premiums rose to Dh6.14 billion, supported by growth from strategic clients and additional business from major construction projects.

The group reported a combined ratio of 95.2%, a key measure of underwriting performance that reflects claims and operating expenses relative to premiums earned.

During the first half of 2026, ADNIC remained focused on protecting our customers, strengthening our market position and advancing our long-term growth strategy through disciplined underwriting, strategic diversification and international expansion.

Sheikh Mohamed Bin Saif Al Nahyan, Chairman of ADNIC

Investment income supports results

Net investment income increased 5.6% to Dh150.4 million in the first half of 2026, up from Dh142.4 million a year earlier.

ADNIC attributed the increase in investment income to higher bond interest and rental income, along with gains from disposals within its investment portfolio.

Other operating expenses increased to Dh115.5 million from Dh110.8 million a year earlier.

India expansion advances

ADNIC continued to expand its international presence during the period, with its GIFT City branch in India becoming fully operational on April 1.

The branch builds on ADNIC’s existing cross-border reinsurance business, giving the insurer a direct presence in the Indian market.

During the second quarter, ADNIC also signed an agreement with the UAE Ministry of Foreign Affairs to provide an insurance programme for employees and their families.

“Alongside our financial performance, we continued to make meaningful progress against our strategic priorities through the successful operational launch of our India branch and the strengthening of partnerships that create long-term value for our customers,” said Jugal Madaan, Acting Chief Executive Officer of ADNIC.

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