Financial Year 2012 Management Discussion & Analysis. Abu Dhabi National Insurance Company

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1 Financial Year 2012 Management Discussion & Analysis

2 Disclaimer This conference call and associated materials related to this call could contain forward-looking statements about. Such forward looking statements are based upon the current belief and expectations of ADNIC s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Any information that is set out in this call should be considered in light of these risks. 2

3 Results Key Highlights Profitable top-line growth of 11.4% in 2012, despite fierce competition and evolving regulatory landscape Competitive advantage through improved underwriting performance, strong claims management, enhanced pricing, product suite & distribution Strong investment growth with 16% increase in investment assets and 41% increase in investment income Further enhanced enterprise risk management at all levels of the business Net profit of 145m and total comprehensive income of 202m Robust liquidity position with cash at 1,145m covering 140% of net insurance contract obligations to policyholders and partners Strong capital base & attractive proposed dividend of 35 fils per share Focused execution of Perpetual Excellence Plan to deliver targets 3

Strategic Priorities Achieved Modernization: Upgrade and relocation of Deira Branch, Dubai Branch Expansion: New regional hub established to service Abu Dhabi and the Western Region Corporate

4 Strategic Priorities Achieved Modernization: Upgrade and relocation of Deira Branch, Dubai Branch Expansion: New regional hub established to service Abu Dhabi and the Western Region Corporate Realignment: Distinct divisions for Consumer and Commercial insurance services set up to streamline services Key people recruited for roles in Investment Management and ADNIC s Special Investigations Unit (SIU) to further strengthen fraud management initiatives Technology: Continued investment in technology and process evolution Quality Management: ISO 9000 certification achieved 4

5 Continued Shareholder Confidence in Corporate Strategy Abu Dhabi Investment Council 24% H.E. Khalaf Al-Otaiba 10% Others 56% Sheikh Tahnoon Al- Nehayan 5% Al-Dhabi Investment 5% 5

6 Ratings Reaffirmed A Category Reaffirmed by Leading Rating Agencies A.M. Best and Standard & Poor s A.M. BEST Rating: A Excellent Outlook: Stable STANDARD & POOR S Rating : A - Outlook: Positive 6

7 Product & Channel Expansion Gross Written Premium 5YR CAGR: 14.1% Gross Written Premium 2,299m 2,066m 2,299m 2,066m Reinsurance Premium Ceded 986m 933m Net Written Premium 1,313m 1,133m Premium Retention Ratio 57.1% 54.8% 7

8 Consistent Growth Across Segments Non-Marine Marine & Aviation m m Variance m m Variance Gross Written Premium 1,797 1, % % Premium Retention Ratio 68% 66% 2.6% 20% 16% 25.0% 5 year CAGR Gross Written Premium Non-Marine 15% Marine & Aviation 10% 2,500 2,000 1,500 1, ,797m 1,796m 502m 1,611m 455m Non Marine Marine & Aviation 8

9 Robust Operating Performance Unearned premium reserve Net Underwriting Income 299m* 20m 275m 119m* 35m Net Technical Profit 116m* 15m Doubtful debt provision Net underwriting income 279m including proactive measures 279m 275m 20m 64m m KPIs Loss ratio 77.1% 73.4% Loss ratio* 75.8% 73.4% Expense ratio 17.8% 18.5% Expense ratio* 14.6% 16.9% Combined ratio 94.8% 89.3% Combined ratio* 90.4% 87.8% 101 Unearned premium reserve Net technical profit including proactive measures * Prior to proactive measures 9

Prudent Investment Strategy INVESTMENT ASSETS (m) INVESTMENT INCOME (m) 1,400 1,200 1,000 2012 = 2,503m [+16%] 2011 = 2,168m Net investment & Other Income 60 50 40 46 50 2012 = 81.1m [+41%] 2011 = 57.

10 Prudent Investment Strategy INVESTMENT ASSETS (m) INVESTMENT INCOME (m) 1,400 1,200 1, = 2,503m [+16%] 2011 = 2,168m Net investment & Other Income = 81.1m [+41%] 2011 = 57.5m 196% % % Deposit Placements and Cash Balances Investment Properties Fair Value through OCI Amortized Cost Fair Value through Profit & Loss Investment in JV , , Growth -2% 40% 27% 43% 162% -100% % Net interest income on bank deposits and bonds 13 58% Dividend Income 10 1% 10 Net Rental Income Net Other Income Gain/(Loss) Decrease in on FV of Inv revaluation Properties of FVTPL 10

Net Profit Net Profit before Proactive Measures 200 2012A +27 173 2011A + 3m increase in Technical Profit, primarily due to effective cost containment. + 24m increase in Investment Income.

11 Net Profit Net Profit before Proactive Measures A A + 3m increase in Technical Profit, primarily due to effective cost containment. + 24m increase in Investment Income. Earnings Per Share (EPS) of 0.53 compared to 0.46 in Effect of Proactive Measures Impairment of Receivables ( 35m vs 15m). Proactive Implementation of UAE Insurance draft regulation on Technical Reserves ( 20m). 2012A 2011A Actual Net Profit ADNIC Earnings Per Share (EPS) of 0.39 compared to 0.42 in A 2011A 11

12 Total Comprehensive Income m m

13 Financial Strength and Capitalization ,129m Financial Strength 3,670m Strong Capitalization 2,090m 2,024m 296m 31m 299m % 2,090m 3.2% 2,024m ,200m 188m 375m 1,200m 188m 375m -37m Assets Equity -500 Retained earnings Investments revaluation reserve General Reserve Legal Reserve Share Capital 13

Attractive Dividend Yield 40% 2011 Cash dividend as % of nominal value 7% 6.5% 2010 Dividend Yield 35% 35% 35% 6% 5.8% Competitor 3 5.6% 30% 25% 20% 15% 10% 5% P R O P O S E D TBD 5% 4% 3% 2% 1% 4.

14 Attractive Dividend Yield 40% 2011 Cash dividend as % of nominal value 7% 6.5% 2010 Dividend Yield 35% 35% 35% 6% 5.8% Competitor 3 5.6% 30% 25% 20% 15% 10% 5% P R O P O S E D TBD 5% 4% 3% 2% 1% 4.4% 3.9% 4.3% 4.3% 4.0% 3.6% 3.3% 4.6% ADNIC 3.4% 2.4% 3.7% 5.0% ADNIC AD Insurance Index Bloomberg GCC 200 Index 0% % Competitor Competitor 2 Source: Bloomberg 14

15 FY2012 Financial Highlights - Recap Variance Gross Written Premium 2,299m 2,066m 11.4% Net Profit 145m 158m -8.5% Net Profit before proactive measures 200m 173m 15.6% Total Comprehensive Income 202m 112m 80.4% Total Assets 4,129m 3,670m 12.5% Capitalization 2,090m 2,024m 3.2% Earnings Per Share (EPS) % EPS before proactive measures % Dividend Per Share 0.35 (proposed)

Absher: Proud supporter of the Absher Government initiative for Emiratization.

16 Community Commitment ADNIC Yas Run: Title sponsor of the flagship ADNIC Yas Run. Donations and sponsorship made to Operation Smile, an international children s charity. Absher: Proud supporter of the Absher Government initiative for Emiratization. Our Emiratization increased to 10.8% from 8.7% in 2011, one of the highest levels in the UAE insurance sector. 16

17 Strategic Priorities and Beyond We are focused on enhancing profitability through: Execution of our regional expansion strategy Increasing our premium retention ratio prudently Increasing our premium retention ratio prudently Further strengthening enterprise risk management Optimizing operational efficiency through technology 17

18 Q&A 18

19 ADNIC Snapshot Business mix (in % of 2012 reported financials) 78% Gross Premium Written 22% Key Shareholders Others 56% ADIC 24% H.E. Khalaf Al-Otaiba 10% Al-Dhabi Investment 5% Sheikh Tahnoon Al- Nehayan 5% Board of Directors H.E. Khalifa Mohamed Al-Kindi, Chairman Sheikh Mohammed Bin Saif Al-Nehayan, Vice Chairman Sheikh Theyab Bin Tahnoon Al-Nehayan H.E. Ahmed Ali Al-Sayegh Mr. Ghanem Ali Hamooda Al-Dhaheri Mr. Sultan Rashid Al-Dhaheri Mr. Mohammed Abdulazeez Al-Mehairi Mr. Khalifa Sultan Ahmed Al-Suwaidi Mr. Abdulla Bin Khalaf Al-Otaiba Chief Executive Officer: Mr. Walid Sidani Marine and Aviation Non-Marine 2 Regional Offices 73% Net UW Income 27% 5 Branches 10 Sales and Service Centers 479 Employees 19

RELIABLE It'JSURER. Management Discussion & Analysis For the third quarter ended 30th September 2015 YOUR ABU DHABI NATIONAL INSURANCE COMPANY

RELIABLE It'JSURER. Management Discussion & Analysis For the third quarter ended 30th September 2015 YOUR ABU DHABI NATIONAL INSURANCE COMPANY ü ~ oîl.u ä ~ i bgjl ~! b~î ä 1)-1ÎJ ABU DHABI NATIONAL INSURANCE COMPANY YOUR RELIABLE It'JSURER Management Discussion & Analysis For the third quarter ended 30th September 2015 We hereby present the