The combined profits of the 24 insurance companies operating in Jordan grew by 28.9% to JOD21.4 million (US$30.2 million) for the first six months of 2016, according to data from the Jordan Insurance Federation.
Only two insurers reported losses for 1H2016, compared to four for the corresponding period last year.
Among the top three most profitable insurers in the first six months of this year, Middle East Insurance chalked up the highest profits of JOD5.2 million, followed by Arab Orient Insurance (JOD3.8 million), and Islamic Insurance (JOD1.6 million).
All classes of business reported a profit for the first half of the year except for compulsory third-party motor insurance which showed losses of JOD7.0 million. Among 23 insurers which provided motor cover, six made gains in the mandatory motor business.
Of the various classes of business, comprehensive motor (own damage) insurance chalked up the most profits of JOD11.6 million for the first six months of the year, boosting total non-life profits to JOD12.6 million. Life business posted profits of JOD3.6 million while medical insurance showed gains of JOD4.3 million.
The data show that total premiums in the first half of this year amounted to JOD301.4 million, an increase of 3.3% compared to the corresponding period last year. Total compensation paid stood at JOD232.3 million in 1H2016, an increase of 30.4%.
Non-life premiums dipped by 1% to JOD168.1 million for the first half of 2016, compared with the corresponding half of last year. Total life premiums amounted to JOD35.3 million, an increase of 6.6% while medical premiums totalled JOD98.0 million, an increase of 9.9%.
Arab Orient Insurance reported the highest amount of premiums of JOD62.0 million for 1H2016, representing a market share of 20.6%. The insurer was far ahead of its nearest rival, Jordan Insurance, which generated total premiums of JOD31.3 million for a 10.4% market share. The top six insurers in terms of premiums – that also included Middle East Insurance, Al-Nisr al-Arabi Insurance, First Insurance and Islamic Insurance – commanded a combined market share of 52.6%.
JOD1 = US$1.41