Interviews

Accelerated Evolution

Policy spoke to Walid Sidani, CEO of Abu Dhabi National Insurance Company (Adnic), about the company’s ambitious plans for the future.

This year marks a new phase in Abu Dhabi National Insurance Company’s (ADNIC’s) evolution, with the completion of a rebranding exercise and ambitious new leadership. Walid Sidani took the helm as CEO in March – having previously spent 14 years with AIG in the US, Egypt and the UAE – and is looking to build on the company’s dominant position in the UAE market.

With gross premiums of AED1.36bn and net profits of AED250m in 2008, Adnic is the second-largest player in the UAE, though by far the leading risk carrier in Abu Dhabi. The firm underwrites a significant chunk of the mega projects taking place in the emirate and boasts a bursting portfolio of aviation and marine business, although this has been slightly affected by the global slow-down.

Nevertheless, the company is well placed to weather the economic storm and continues to justify its stable “A-” rating from Standard & Poor’s. Gross premium levels in the first quarter of 2009 were maintained at AED552.5m (up from AED546.9m for the same quarter last year) while underwriting income stood at AED114.6m – virtually the same as last year. However, investment income fell to AED4.9m compared to AED139.7m during the first quarter of 2008. Sidani has placed a strong company focus on carefully micro-managing the investment aspect of the business, but with proper governance in place. A new investment team has been created, comprising members of the board and independent investment experts.

With a solid foundation in place, Adnic is targeting further expansion in specialised business including environmental liability – as it relates to major projects and chemical manufacturing – as well as building on its expertise in infrastructural and transportation-related risks. Takaful is also an emerging segment that the company may consider, with Sidani able to draw on his tenure as vice-president and COO of AIG Takaful.

Expanding reach
Strategic partnerships form a cornerstone of the company’s long-term expansion plans. Earlier this year, Adnic launched its new medical insurance product “Shifa” in partnership with Vanbreda International – the global health plan administrator – to offer coverage across 192 countries and more than 10,000 medical service providers worldwide.

The next initiative on the horizon is a joint venture with a Lloyd’s underwriter which will be based at the Dubai Financial Centre – subject to the approval of the Dubai Financial Services Authority.

“Blending the technical and underwriting experience of the London market with Adnic’s local strength and presence could be a potent combination in the future. Adnic is already a leader in aviation in the UAE and transportation in many emerging markets is big business, as well as entertainment and environmental management. Our joint venture will help us capitalise on these opportunities,” Sidani adds.

However, ADNIC will not be rushing into regional expansion too quickly as it focuses initially on enhancing the existing capabilities and infrastructure of its four-branch network in the UAE, although Sidani expects the company’s first new regional footprint to be made in the next two years.

Reinvigorated approach
ADNIC has encapsulated its strategic priorities into three key themes: expansion, modernisation and positioning itself as an employer of choice. Underpinning the company’s growth plans is a commitment to strengthening the internal infrastructure, processes, IT capabilities (a more web-enabled facility is being put in place) and ability to deploy products quickly, Sidani says.

Sidani is particularly passionate about positioning Adnic as “a true magnet for talent” that places a strong focus on training and succession planning. More than 12 per cent of the company’s workforce comprises local Emiratis, a ratio that compares favourably with other local insurers. “Talent acquisition and management are the fundamental challenges for Adnic and the wider industry. We place great emphasis on the way we train, reward and retain talent, but at an industry level, I feel we could all do more to attract young people to the industry. This could even begin at school level through summer internships to stimulate interest in a career in risk management,” Sidani adds.

Describing his leadership as fostering “accelerated evolution”, Sidani feels privileged to be part of Adnic’s future and is looking forward to celebrating the firm’s 37-year anniversary in September.