Jordan: Insurance sector's 2018 net profit more than 6 times 2017 gains
Source: Middle East Insurance Review | Apr 2019
The Jordanian insurance industry posted a huge jump in net profit for 2018, when the combined profits of all insurers reached JOD18.6m ($26.2m), an increase of 541.4% over the JOD2.9m posted for 2017, according to Mr Majed Smairat, chairman of the Jordan Insurance Federation (JIF).
In all, 21 insurers posted a combined net profit of JOD22.1m in 2018, while three insurers suffered aggregate net losses of JOD3.5m, Mr Smairat told the local media. The top five insurers achieved a combined net profit after tax of JOD12.3m, constituting 66.1% of the total market net profit.
GWP reached JOD607m ($854m) last year, 2.2% higher than the JOD594m chalked up in 2017, according to preliminary official data released by the Ministry of Industry, Trade and Supply. The premium growth rate in 2018 was the same as in 2017. In comparison, premiums grew by 5.6% in 2016 over 2015.
Total insurance compensation grew by 1.7% in 2018 to JOD466.3m. The overall loss ratio increased to 83% in 2018 compared to 81% in 2017. In particular, the loss ratio for compulsory vehicle insurance reached 109% last year compared with 96% in 2017.
There are 24 licensed insurers operating in the kingdom, 23 of which are listed on the Amman Stock Exchange. There are no reinsurers in Jordan. M
JOD1 = $1.41