2016 ANNUAL REPORT 2016 ANNUAL REPORT The Late Sheikh Zayed bin Sultan Al Nahyan The Founding Father of the United Arab Emirates His Highness Sheikh Khalifa bin Zayed Al Nahyan President of the United Arab Emirates and Ruler of Abu Dhabi His Highness His Highness Sheikh Mohammed bin Sheikh Mohamed bin Rashid Al Maktoum Zayed Al Nahyan Vice President and Prime Minister Crown Prince of Abu Dhabi and of the UAE and Ruler of Dubai Deputy Supreme Commander of the UAE Armed Forces TABLE OF CONTENTS 08 Our Geographical Expansion 10 The Board of Directors 12 Chairman’s Statement 14 Chief Executive Officer’s Statement 17 Our Corporate Team 28 Our Mission and Vision 30 About Us 32 Our Core Values 33 Our Strategic Pillars 34 Our Global & Regional Recognition 37 Our Corporate Governance 40 Our Corporate Commitment to the Community 42 Our Work-Life Balance 45 Our Financial Statements 118 Our Locations OUR GEOGRAPHICAL EXPANSION 8 Annual Report 2016 Head Office Branches SHARJAH Sales and Services Centers DUBAI ABU DHABI AL AIN 9 Annual Report 2016 THE BOARD OF DIRECTORS 10 Annual Report 2016 Shaikh Mohamed Bin Saif Shaikh Theyab Bin Tahnoon H.E. Sultan Rashed Al-Dhaheri Al-Nahyan Al-Nahyan Board Member Chairman Vice Chairman Mr. Abdulla Khalaf Al-Otaiba Mr. Omar Liaqat Mr. Jamal Sultan Al-Hameli Board Member Board Member Board Member Mr. Abdulrahman Hamad Mr. Hazzaa Mohamed Rybayea Mr. Hamoodah Ghanem Al-Mubarak Al-Mheiri Bin Hamoodah Board Member Board Member Board Member 11 Annual Report 2016 A MESSAGE FROM THE CHAIRMAN OF THE BOARD 12 Annual Report 2016 On behalf of the Board of Directors of Abu Dhabi Gross Technical Reserves National Insurance Company (ADNIC), I hereby The Gross Technical Reserves increased by 5.7% to present our 44th Board of Directors’ Report and AED 3.68 billion as on 31st December 2016, compared Audited Financial Statements for the year ended to AED 3.48 billion as on 31st December 2015. 31st December 2016. Shareholders’ Equity The Board of Directors is pleased to note that ADNIC The Shareholders’ Equity increased by 42.2% to has sustained its profitability throughout the year AED 1.77 billion as on 31st December 2016, compared to 2016 with strong underwriting results and net profit. AED 1.24 billion as on 31st December 2015. The issuance The realignment of ADNIC’s operational strategy has of Mandatory Convertible Bonds (MCB) as well as the delivered positive results and has enabled the Company net profit contributed to the growth in the shareholders’ to report a strong financial performance. equity. The Company’s selective underwriting policy and its Return on Shareholders’ Equity continued focus on balance sheet strength has been The return on Shareholders’ Equity increased to 13.6% validated with consistent positive results in every for the year 2016, compared to a loss of 23.3% for the quarter of 2016. Even as the business environment year 2015. remains challenging, the Board of Directors, as well as the management team, are committed to delivering Basic and Diluted Earnings Per Share and Net growth and shareholder value. Our priority is to ensure Profit that ADNIC remains one of the regional market leaders Basic and diluted earnings per ordinary share grew to both in terms of its financial standing and its product 43 Fils as a result of achieving a net profit of AED 205.0 portfolio as we continue to develop cutting edge million for the year 2016 compared to basic and diluted solutions and best-in-class customer service. loss per ordinary share of 89 Fils resulting from a net loss of AED 334.5 million last year. Cash Balances ADNIC’s cash balances increased by 54.4% to AED 1.030 I wish to extend our most sincere appreciation and billion as on December 31st 2016, compared to AED 667 gratitude to His Highness Sheikh Khalifa Bin Zayed million as on December 31st 2015. Al Nahyan, President of the UAE, His Highness Sheikh Mohammed Bin Rashed Al Maktoum, Vice President Investments and Prime Minister of the UAE and Ruler of Dubai, His Total company investments including cash in time Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown deposits, bank accounts and investment properties Prince of Abu Dhabi and Deputy Supreme Commander increased by 14.6% to AED 3.14 billion as on December of the UAE Armed Forces for their continued support. 31st 2016, compared to AED 2.74 billion as on December 31st 2015. On behalf of the Board of Directors, I would like to thank the management and the employees of Total Assets the company for their commitment and dedication The total assets of the company increased by 15.8% to throughout 2016. AED 6.49 billion as on December 31st 2016, compared to AED 5.60 billion as at December 31st 2015. Shaikh Mohamed Bin Saif Al-Nahyan Chairman of the Board of Directors 13 Annual Report 2016 A MESSAGE FROM THE CHIEF EXECUTIVE OFFICER I hereby present the company’s financial results Key Financial Highlights for the year ended 31st December 2016. Gross Premium Written For the year 2016, ADNIC’s Gross Premium Written was I am pleased to report that ADNIC has achieved strong AED 2.38 billion compared to AED 2.29 billion last year. results in 2016. In spite of the implementation of prudent underwriting strategy, ADNIC has achieved Premium Retention premium growth for the year and also has strengthened The overall premium retention ratio for the company its long term financial and operational performance. reached 44% for the year 2016 compared to 48% for 2015. Net Underwriting Results For the year 2016, ADNIC reported a Net Underwriting profit of AED 342.6 million, against a Net Underwriting Loss of AED 228.9 million for 2015. General and Administrative Expenses General and Administrative Expenses was AED 239.9 million for 2016 compared to AED 207.6 million for 2015. 14 Annual Report 2016 Net Technical Results Appreciation The company has reported a net technical profit of The management team is thankful to our customers, AED 102.6 million for 2016, compared to a net technical business partners and shareholders, who have supported loss of AED 436.5 million for 2015. the continuous development of ADNIC. Net Investment Income ADNIC’s Net Investment and Other Income was AED 102.4 million for 2016 compared to AED 102.0 million for 2015. Net Profit The company has reported a net profit of AED 205.0 million for 2016, compared to a net loss of AED 334.5 million for 2015. Ahmad Idris Chief Executive Officer 15 Annual Report 2016 OUR CORPORATE TEAM 17 Annual Report 2016 EXECUTIVE MANAGEMENT From left to right (Standing) Anil Dixit Hema Padmanabhan Chief Investment Officer Chief Claims Officer - Commercial Lines (Non Marine) Vijay Singh Mazen Allabadi Chief Claims Officer - Commercial Lines (Marine & Chief Claims Officer - Consumer Lines Aviation) Vaidyanathan Srinivasan Alaa Fares Chief Underwriting Officer - Consumer Lines Chief Financial Officer Osama Altajer Chief Underwriting Officer - Commercial Lines (Marine & Aviation) 18 Annual Report 2016 From left to right (Seated) Lazhar Charfeddine Tariq Zietoun Chief Operations Officer Chief Officer - Underwriting & Strategic Accounts Management Raed Haddadin Chief Legal & Compliance Officer Not present Hani Hirzallah Jugal Madaan Chief Human Resources & Administration Officer Chief Underwriting Officer - Commercial Lines Abdulla Alnuaimi (Non Marine) Chief Officer - Shared Services Andrew Woodward Hussein Samara Chief Business Development Officer Chief Information Officer 19 Annual Report 2016 SENIOR MANAGEMENT Underwriting and Strategic Accounts Management Team (SAM) From left to right (Standing) Laeeque Shrieff Khalid Rawashdeh Senior Manager - Medical Underwriting Senior Manager - Engineering, Construction, Energy - Construction & Professional Indemnity Underwriting Sathish Krishnan Senior Manager - Property & Energy Underwriting Anand Kalandy Senior Manager - Medical Underwriting Wissam Al-Khaldi Senior Manager - Strategic Accounts Management Nabil Azzouz (Abu Dhabi) Senior Manager - Marine & Energy 20 Annual Report 2016 From left to right (Seated) Not Present Sirish Rao Vamshidar Vanama Senior Manager - Commercial & Motor Underwriting Head of Underwriting - International Division (Dubai & Northern Emirates) Tarek Moukarzel Fatme El-Issa Deputy Chief Underwriting Officer - Life & Personal Senior Manager - Motor Underwriting Accident Krishnan Raghunathan Senior Manager – Marine, Energy & Aviation Claims Gurumurthy Lakshminarayanan Senior Manager - Marine Underwriting 21 Annual Report 2016 SENIOR MANAGEMENT Operations From left to right (Standing) Haitham Ali Adrian Alexander Senior Manager - Motor Claims (Abu Dhabi) Deputy Chief Claims Officer - Commercial Lines (Marine & Aviation) Nadhmi Dammak Deputy Chief Reinsurance Officer Vetrivelan Andigounder Senior Manager - Customer Service Khurram Masud (Consumer Lines Operations) Senior Manager - Risk Management & Actuarial Services 22 Annual Report 2016 From left to right (Seated) Sajiv Gopalkrishnan Sami Khalil Senior Manager - Risk Engineering Services Deputy Chief Officer - Risk Engineering Services Ashraf Genina Nehal El Trmesany Senior Manager - Motor Claims (Dubai & Northern Senior Manager - Medical Provider Relations and Life Emirates) Claims Smita Srivastava Deputy Chief Claims Officer - Medical, Life, Travel, Personal Accident & General Claims 23 Annual Report 2016 SENIOR MANAGEMENT Business Development From left to right Mansour Rahme Alya Al Tamimi Branch Manager - Sharjah Regional Manager (Dubai & Northern Emirates) Mahmoud Swaidan Jihad Francis Branch Manager - Al Ain Head of Brokers Business (Abu Dhabi