Magazine

Read the latest edition of AIR and MEIR as an Interactive e-book

Mar 2024

Jordan: Profits of 21 insurers surged 332% to $13.5m in 1H

Source: Middle East Insurance Review | Sep 2018

The combined profits of 21 insurers operating in the local market soared by 332.1% in the first half of 2018 compared to the same period last year, according to a study by Sanabel Al Khair Financial Investment Company.
 
The total 1H profits of the 21 insurers, which revealed their results out of 23 listed insurers, stood at JOD9.55m ($13.5m) compared with JOD2.21m in the same period last year, reported Al Ghad.
 
The 1H18 results also showed that 17 insurers made profits, while four posted losses. For the insurers that suffered losses, Al Manara Insurance posted the highest losses in the first half of this year, amounting to JOD1.10m compared to a loss of JOD573,000 in the same period last year. 
 
There are 24 licensed insurers operating in the Jordanian market, 23 of which are listed on the Amman Stock Exchange. There are two companies with branches outside Jordan, in Kuwait, UAE and Palestine. There are no reinsurance companies in Jordan.
 
Challenging environment constrains profitable growth
Insurers operating in Jordan face challenging market conditions, with competition eroding technical margins, coupled with exposure to political, economic and financial system risks, according to a report by A.M. Best.
 
Furthermore, the high number of players and concentration on the motor and medical insurance segments has intensified competitive pressures. Tariffs imposed by the government on motor business have further strained underwriting profitability over recent years.
 
The report, ‘Jordan’s Challenging Environment Constrains Profitable Growth’, said the regulatory environment for insurers is likely to become increasingly more stringent in the coming years as the Central Bank of Jordan is expected to become the supervisory and regulatory body for the insurance industry. M 
 
JOD1 = $1.41 
 
| Print
CAPTCHA image
Enter the code shown above in the box below.

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.

 

Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.