Abu Dhabi National Insurance Company

1. Company Overview & Earnings Context

Abu Dhabi National Insurance Company PJSC (ADNIC) is a major UAE insurance company providing insurance and reinsurance solutions across a diversified portfolio of business lines. During H1 2026, the Group continued to focus on disciplined underwriting, strategic diversification, and international expansion.

ADNIC reported a resilient H1 2026 performance, with insurance revenue increasing to AED 4.09 billion and net investment income rising 5.7% YoY. However, profit after tax declined to AED 201.0 million, reflecting provisions related to geopolitical risks, flood-related claims, and short-term investment market volatility.

2. Financial Performance Snapshot

• Insurance Revenue: AED 4.09 Billion (+2.0% YoY)

• Net Insurance Service Result: AED 215.37 Million (-16.7% YoY)

• Net Investment Income: AED 150.43 Million (+5.7% YoY)

• Profit Before Tax: AED 225.09 Million (-13.8% YoY)

• Net Profit: AED 201.02 Million (-14.6% YoY)

• Profit Attributable to Shareholders: AED 212.84 Million (-6.8% YoY)

• Earnings Per Share (EPS): AED 0.37, compared with AED 0.40 in H1 2025

Compared with H1 2025:

• Insurance revenue increased from AED 4.01 billion to AED 4.09 billion.

• Net insurance service result declined from AED 258.46 million to AED 215.37 million.

• Net investment income increased from AED 142.38 million to AED 150.43 million.

• Profit before tax declined from AED 261.24 million to AED 225.09 million.

• Net profit declined from AED 235.28 million to AED 201.02 million.

• EPS declined from AED 0.40 to AED 0.37.

3. Operational Highlights & Key Metrics

• Gross Written Premiums (GWP): AED 6.14 Billion

• Combined Ratio: 95.2%

• Total Assets: AED 12.97 Billion

• Total Equity: AED 3.66 Billion

• Cash & Deposits: AED 674.39 Million

• Net Operating Cash Flow: AED -74.33 Million

• Dividend Paid During H1 2026: AED 267.90 Million

• Net Capital Expenditure: AED 12.29 Million

ADNIC's total assets increased substantially to AED 12.97 billion from AED 10.44 billion at the end of 2025, while the Group maintained solvency above minimum regulatory requirements.

4. Key Performance Drivers

ADNIC's premium growth was supported by continued business from several strategic clients and increased activity from major construction projects. Gross Written Premiums reached AED 6.14 billion, while disciplined underwriting helped the Group maintain a 95.2% combined ratio and generate AED 215.4 million in net insurance service results.

Investment performance provided an additional positive contribution. Net investment income increased 5.7% YoY to AED 150.4 million, supported by growth in bond interest income and rental income, alongside disposal activity across the investment portfolio.

However, overall profitability was affected by the prudent recognition of provisions related to geopolitical risks, flood-related claims and short-term investment market volatility. Management specifically attributed the 13.8% YoY decline in profit before tax primarily to war-related provisions.

5. Outlook & Forward Considerations

ADNIC remains positive on its outlook for the remainder of 2026, supported by its diversified portfolio, disciplined underwriting approach, strong customer relationships and expanding international footprint. Management expects the company to benefit as market conditions continue to normalise.

International expansion remains an important growth pillar. ADNIC's GIFT City branch in India became fully operational on 1 April 2026 and has already begun contributing to profitability. The expansion builds on ADNIC's existing cross-border reinsurance business in India and follows the company's entry into Saudi Arabia.

Management also highlighted opportunities arising from continued UAE economic diversification, which is driving demand for more complex insurance solutions and specialty lines. At the same time, heightened regional tensions have resulted in higher premiums and tighter capacity across war risk, marine, aviation and political violence insurance.

6. Investor Takeaway

ADNIC's H1 2026 results showed a resilient underlying insurance business despite pressure on reported profitability. Insurance revenue increased 2.0% to AED 4.09 billion, GWP reached AED 6.14 billion and investment income grew 5.7%. The 95.2% combined ratio also indicates that the Group's underwriting operations remained profitable.

However, net profit declined 14.6% YoY to AED 201.0 million, largely reflecting provisions associated with geopolitical risks and other external headwinds. Operating cash flow also moved to a AED 74.3 million outflow, compared with AED 136.1 million of positive operating cash flow in H1 2025.

Going forward, the key areas to monitor are underwriting profitability, geopolitical-related claims and provisions, investment performance and ADNIC's international expansion. The early profitability contribution from the new India branch and management's positive outlook for H2 2026 provide potential growth drivers as market conditions normalise.