Dubai National Insurance & Reinsurance PSC Reports AED 56.4 million Net Profit for 2021
22 Feb 2022
Press release
Dubai National Insurance & Reinsurance PSC Reports AED 56.4 million Net Profit for 2021
22 February 2022, Dubai, UAE – Dubai National Insurance & Reinsurance PSC (DNIR), one of the leading insurance companies in the region, reported to the shareholders its financial results for the year ending 31 December 2021 marking a net profit of AED 56.4 million.
Khalaf Ahmad Al Habtoor, Chairman of the Board of Directors, expressed his pleasure at the robust performance of DNIR throughout 2021, highlighting its strong underwriting results and profitability. DNIR has registered a 2.4 per cent increase year on year.
He added: “Since inception, we were able to maintain a positive performance at DNIR and are always committed to delivering increased returns to the shareholders annually.”
Al Habtoor continued: “Our goal is expanding our reach and we are constantly studying ways for growing the business in the United Arab Emirates and the region, leveraging on the team’s innovative capabilities and the DNIR’s various offerings.
He concluded: “In DNIR we view overcoming challenges as part of our day to day business and are never discouraged. We head into 2022 with continued optimism and focus on progress, renewing our commitment to providing the best service to our clients while protecting our shareholders’ interests.”
Key Financial Highlights
Gross Written Premiums
For the year 2021, DNIR’s Gross Written Premium was marginally lower at AED 301.2 million, compared to AED 317.2 million for the same period in 2020, in view of the effects of the pandemic.
Premium Retention
The overall premium retention ratio was 36.0 per cent for 2021 compared to 33.3 per cent for the same period in 2020.
Net Underwriting Income
For the year 2021, DNIR Net Underwriting Income increased by 4.5 per cent to AED 56.0 million, against AED 53.6 million for the same period in 2020.
General and Administrative Expenses
General and Administrative Expenses for the year 2021 stood at AED 26.0 million, almost the same level as the figure of AED 25.7 million for the same period in 2020.
Net Profit
Net Profit increased by 2.4 per cent to AED 56.4 million for the year 2021, against AED 55.0 million for the same period in 2020.
Cash Balances
The cash balances stood at AED 137.7 million as of 31st December 2021, compared to AED 97.9 million as of 31st December 2020.
Investments
Total investments including cash and bank balances, investments in equity and debt instruments and investment in properties increased by 30.2 per cent, totaling AED 777.5 million on 31st December 2021, compared to AED 597 million in 2020.
Total Assets
The total assets increased by 15.6 per cent to AED 1.07 billion as of 31st December 2021, compared to AED 930.9 million as of 31st December 2020.
Shareholders’ Equity
The Shareholders’ Equity position increased by 34 per cent to AED 679.3 million as at 31st December 2021, compared to AED 506.9 million as at 31st December 2020.
Basic and Diluted Earnings Per Share and Net Profit
Basic and diluted earnings per share improved by 2.1 per cent to AED 0.49 as a result of achieving a net profit of AED 56.4 million for the year 2021 compared to basic and diluted earnings per share of AED 0.48 resulting from a net profit of AED 55.0 million last year
Abdulla Al Nuaimi, CEO of DNIR, said: “In a year marked by continued uncertainty due to COVID-19, DNIR was able to deliver robust results. Despite the adverse circumstances, DNIR quickly adjusted to a rapidly changing environment. It all comes down to the trust of our business partners and customers and the dedication and hard work of our team.
“With the realignment of our vision from customer-support to customer-delight, DNIR has left no stone unturned to accelerate the execution of its automation and digitalization plans to ensure uninterrupted services to the customers. This secure remote access has been especially crucial during the pandemic.”
He added: “Going forward, we will also continue to take the necessary measures to maximize shareholder value, as well as supporting our customers.”