The financial results of 24 insurers in the Jordanian insurance market last year were under pressure with provisional figures showing an 87% decline in profits compared to 2016.
Profits before tax and fees saw a severe setback as they plunged to JOD4.4 million (US$6.2 million) from JOD34.8 million in 2016, according to preliminary data by the Jordan Insurance Federation (JIF) for the 24 insurers.
Eight insurers reported losses in 2017, seven of which reported profits in 2016. Only two insurers were in the red in 2016. Among those which turned to red from black last year were the two largest providers in terms of GWP – Arab Orient Insurance (gig) and Jordan Insurance.
Total GWP (for operations within Jordan) grew 2.1% to JOD594 million (US$838 million) in 2017 from JOD582 million in the preceding year. Paid claims in 2017 increased by 2%, reaching JOD447 million against JOD438.5 million in the past year.
The insurance market continued to be concentrated with the top-five operators controlling around 46% of the market premiums. GWP posted by the largest player, Arab Orient (gig), stood at JOD95 million last year, accounting for 16% of the market’s overall premium income.
According to JIF, the top-five insurers in terms of profits before tax were: MetLife Alico (JOD4.98 million); Islamic Insurance (JOD2.59 million); Al-Nisr Al-Arabi Insurance (JOD2.58 million); Solidarity-First Insurance (JOD2.53 million); and Jordan French Insurance (JOD1.87 million).
The top-five insurers in terms of GWP in 2017 were:
Small growth in takaful contributions
Takaful contributions in Jordan stood at JOD63 million in 2017, 3.4% higher than in 2016 and accounting for 10.6% of the market GWP. Paid claims for takaful operations reached JOD41.8 million, showing an increase of 1.9% and accounting for 9.3% of the market’s total claims paid.
There are two takaful operators in Jordan: Islamic Insurance and Solidarity First Insurance. Both providers were among the top-five profitable insurers in the market in 2017. M
JOD1 = US$1.41