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ABU DHABI NATIONAL INSURANCE COMPANY (ADNIC)
Abu Dhabi National Insurance Company is a top and trusted insurance institution which has its headquarters at ADNIC Corporate Building, Abu Dhabi in the United States of Emirates. The office is located in Abu Dhabi Building number 403 with postal address as 839. The company website is www.adnic.ae. The company is among the leading insurance providers in the nation because of quality insurance solutions it provides to the clients. It is one of the companies listed in Abu Dhabi Stock Exchange market and these companies in stock market usually have many job opportunities (Alali & Foote, 2012). This is attributed by the fact that the company has good business strategic pillars which help to transact business activities with the company which leads to better job prospects and growth of the economy in general. The company provides life, health and general insurance to individuals and is one of the leading insurance providers. It has many branches all over the country and has professionals who give their best in providing the services to the customers. It also has sales people and service centres across the country for good delivery of services. Due to its large business operations in the country, the company enjoys large economies of scale and becomes easy in running the business transactions and activities to its customers. This also provides job opportunities due to the many services and branches across the country employing many individuals to manage and provide the services.

Abu Dhabi National Insurance Company is run by executive team which ensures the company activities are well operated from the top personnel to the bottom level of the company. The chief executive officer of the company is Mr. Ahmad Idris. He has been serving in that position since December 2014 to ensure smooth running of the company in its operations and activities (Koornneef, et al. 2012). Mr. Idris is a professional and has long experience of more than thirty six years in insurance industry where he has worked in the United Arab Emirates and also internationally. He is therefore suitable and qualified to be in that top position for the good performance and success of the company it has achieved so far. The chief financing officer of the club is Mr. Alaa Fares. Mr. Alaa Fares is also the Executive vice president- Finance and works hand in hand with Mr Ahmad Idris together with the executive members for the success of the company. Mr. Fares has extensive and wide experience and international exposure in finance departments of many companies which he has headed outside Saudi Arabia. Mr. Fares has a degree in accounting and auditing from Kuwait University (Naser, Nuseibeh, & Al-Hadeya, 2013).

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The company was founded on September 15, 1972 and is one of the publicly listed insurance providers in United States of Emirates where it operates from the head office at Abu Dhabi. The company has become one of the leading providers of risk in (UAE), United Arab Emirates and across (MENA), Middle East and North Africa regions. The company has affordable insurance solutions to the customers and all the risks are well taken care of. The customers are assured of compensation once the risk insured occurs and they enjoy good services from the company. This has increased the trust of the company to the customers which leads the growth of the company as well as the growth of the economy of the country. Since its establishment, the company has grown to greater heights making it to become one of the leading insurance providers in the country and Middle East. This can be attributed to the good services it provides to the customers who in one way or the other may attract more members by the good services they enjoy from the company leading to growth of the company to become one of the trusted insurance partners. Abu Dhabi National Insurance Company trades in Abu Dhabi Securities Exchange stock market where it trades its stock in the insurance sector. The ticker symbol in the securities exchange market for the company is ADNIC which is used in trading the stocks and the share price as of Thursday closing was at $0.98 (Al-Tamimi, Alwan, & Abdel, 2011).
The primary business line of the company is providing insurance solutions where it provides multi-line insurance products. It offers corporate and individual insurance services to customers in life, health and general risks in Middle East and North Africa. The main competitors of (ADNIC), Abu Dhabi National Insurance Company are the insurance companies in the (UAE), United Arab Emirates which include Oman Public Shareholding Insurance. There are also other insurance companies which bring stiff competition to Abu Dhabi National Insurance Company and they are National Life and General Insurance as well as Union Insurance. These three companies offers tough competition to Abu Dhabi National Insurance Company but it is able to remain a trusted and leading insurance company in the country. The competitors also help the company to provide better services to keep its customers for them to remain its clients. This has led the management work tirelessly to ensure good and quality insurance solutions are offered to its customers to keep them. The company provides personal and business insurance as well as life and non-life insurance products to its clients.

As of 2014, the total assets of the company were 5.556 billion AED. The total revenue of the company was 2.631 billion AED in 2014 and a total equity of 1.634 billion AED (2014) Alali & Foote, 2012). The company also achieved a net profit of 95.2 million AED in the first quarter of 2018. Abu Dhabi National Insurance Company has between 201-300 employees who help in its operation and smooth running of the company for its success and growth to different parts of Middle East and North Africa (MENA). The price-earnings (PE) ratio for the company was 7.62 for the period ending Q1/2018. The earnings per share (EPS) ratio for the company were 0.45 for the first quarter of 2018. The price to sales ratio was 1.4838 for the same period of Q1/2018. These ratios show the company is growing and performing well in the market to remain as one of the leading insurance providers in the country.

The company has been performing excellently over the past years and continues to be leading and trusted insurance providers in the country. The financial results of the company for the year 2017 reported the company recorded a net profit of AED 227.3 million. This translates to an increase of 11 % of the net profit made in the year 2016 which shows the performance of the company is outstanding. Abu Dhabi National Insurance Company has recorded a net profit of AED 95.2 million which is 28.6% increase for the first quarter of 2018 (Alali & Foote, 2012).. This is a strong start of the year which shows the company is growing day after day. The company had reported AED 74.0 million net profit for the first quarter of 2017 but this year it has increased by 28.6% which is a good increase and growth of the company. The increases in profits and growth of the company can be attributed to the successful delivery of strategic pillars. The board of directors together with the management team have worked hand in hand and remain committed for excellent performance and good delivery of services for the sustainable growth of the company and yield high profits (Naser, Nuseibeh, & Al-Hadeya, 2013).

The strategic pillars of the company have greatly contributed to the growth and positive performance over the years. The executive, board of directors and the management work together to ensure all those pillars are achieved for better and quality delivery of services to the clients. This is to ensure customers are satisfied with the quality of services through the insurance solutions offered to them. These strategic pillars are customer service where the company provides good and quality customer services to their clients. All the issues which may affect the clients are solved with immediate effect and in good time to keep the clients and attract many more. There is product development where a new product is advertised and customers are made aware of it to bring big sales to the company. Expansion and distribution are other pillars where the company ensures it expands it insurance solutions to many areas and open new branches to reach many people. The other strategic pillars which have largely contributed to the positive performance of the company are innovation and technology where there is use of modern technology for efficient and fast delivery of services, modernization and employer of choice (Koornneef, et al.2012). All these pillars brought together and the company being committed to achieve them has led to the positive performance and enjoy large profits.
The company is in a position to enjoy profitability in the short, intermediate and long term due to these strong strategic pillars which everyone in the company works hard in achieving them. This is also clearly seen in the net profits made by the company in the first quarter of year 2018 and also compared to financial year 2017 the way it improved in net profit and assets. I would recommend buying stock of the company. This is because the company is in good and safe position to continue enjoying dominance in the insurance sector and one would not have fears in buying the stock. The company has also remained to be the trusted and leading insurance company in the market for many years it has been in the market. Abu Dhabi National Insurance Company has being performing well in the past years and one would have confident in buying the stock of the company (Al-Tamimi, Alwan & Abdel 2011). This is because the company is strong enough to compete in the insurance market and make large profits at the end of the day and one is assured that the stock will appreciate and make profits in the given period. Many people would like to invest and buy stock of the company due to its good position in the market where it has identified as one of the trusted leading insurance providers in the country. The organization and management of the company is good since the teams involved work together to ensure the goals and vision of the company is achieved at the end of the day for positive performance. The executive members and board of directors all work together for the success and excellent performance of the company. There has been positive performance year after year of the company which is also attributed to the strategic pillars set by the company which everyone works towards achieving them. The company is committed in achieving these pillars for the success and gain in profitability day after day. These are enough and good reasons why I can recommend one to buy stock of the company which will gain profit in the stock and also to the company in general. A company with a good position to survive in the market and compete effectively with other competitors is good enough to buy its stock and trade in the exchange market.
The graphs of the company also show there has been good performance over the years and it has remained to be the best insurance provider in the country. The large net profits it has recorded in the first quarter of 2018 and for the whole financial year 2017 is a clear indication that there is positive performance. The company has enjoyed excellent performance in the insurance company. There has been a rise in incomes achieved by the company by the fact that assets and profits are increasing hence the positive performance of the company. From the profitability graph, it is clear that the net profit increased by 10.9% from 2016 to 2017. This is a clear indication that the company is performing positively in the market to obtain that large profits. The earnings per share and total comprehensive income also increased by 11.1 % and 22 % respectively from 2016 to 2017 (Naser, Nuseibeh, & Al-Hadeya, 2013). From the graph we can see there is positive performance of the company from 2016 to 2017. There is also an increase of total investment assets of the company from the graph between the two years
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Key
Red line –market index
Blue line-company daily stock price
The graph above shows the performance of the company’s daily stock price for the past two years along with the market index.

Reference
Alali, F. A., ; Foote, P. S. (2012). The value relevance of international financial reporting standards: Empirical evidence in an emerging market. The international journal of accounting, 47(1), 85-108.

Koornneef, E. J., Robben, P. B., Al Seiari, M. B., ; Al Siksek, Z. (2012). Health system reform in the emirate of Abu Dhabi, United Arab Emirates. Health policy, 108(2), 115-121.

Al-Tamimi, H. A. H., Alwan, A. A., ; Abdel Rahman, A. A. (2011). Factors affecting stock prices in the UAE financial markets. Journal of Transnational Management, 16(1), 3-19.

Naser, K. A. M. A. L., Nuseibeh, R. A. N. A., ; Al-Hadeya, A. H. M. E. D. (2013). Factors influencing corporate working capital management: Evidence from an emerging economy. Journal of Contemporary Issues in Business Research, 2(1), 11-30.

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