Jordan: Top 5 profitable insurers make up half of industry's earnings
Source: Middle East Insurance Review | Nov 2015
The five most profitable insurers in Jordan last year accounted for JOD16.8 million (US$23.7 million) or 50.9% of the total profits of JOD33.1 million of the insurance industry, according to the Jordan Insurance Federation’s 2014 annual report.
The report shows that the top five profitable insurers were Arab Orient Insurance with net profit of JOD5.03 million, MetLife Alico (JOD4.10 million), Jordan Insurance (JOD3.51 million), Middle East Insurance (JOD2.21 million) and Al-Nisr Al-Arabi Insurance (JOD1.98 million).
The profit picture improved significantly last year compared to 2013. The industry posted total profits of JOD33.08 million in 2014, 79% higher than the JOD18.45 million registered in 2013. Among the 25 insurers operating in Jordan, 22 were profitable last year, compared to only 18 in 2013.
In addition, only two insurers reported net technical losses in 2014 compared to five the previous year.
Compulsory motor third-party insurance reported the biggest loss among the different business lines, with the 24 insurers that offer auto cover reporting combined losses of JOD5.68 million. This, however, was a 61% fall in losses from the JOD14.56 million reported in 2013. In addition, 11 insurers reported profits in this line last year compared to four the previous year.
JOD1 = US$1.41