Jordan: Sector maintained steady performance in 2019
Source: Middle East Insurance Review | Mar 2020
Total written premiums in the Jordanian insurance market grew by 1.4% y-o-y to JOD614.5m ($866.7m) in 2019, according to unaudited preliminary data released by the Jordan Insurance Federation. Total compensation paid by the industry increased by 1.6% to JOD473.8m in 2019, compared to the same period in 2018.
Non-life premiums rose 1.7% to JOD528.7m in 2019, compared to JOD519.7m for the previous year. This growth was driven by an increase of 2.8% in medical premiums in 2019, compared to 2018, and by motor premiums which grew by 3.3%. However, fire and other property damage premiums decreased by 2.8%.
Total life premiums reached JOD85.8m during 2019 compared to JOD86.1m for the previous year, representing a dip of 0.4%.
Contributions from takaful, which is undertaken by two insurers, totalled JOD71m in 2019, up 6% y-o-y. Takaful accounted for 11.5% of the market’s total written premiums for 2019. Compensation paid last year by takaful operators amounted to JOD50m, an increase of 9.7% over 2018, accounting for 10.5% of the total compensation paid by the insurance market in 2019.
The top five companies operating in Jordan in terms of written premiums in 2019 were: Arab Orient Insurance gig (+14% y-o-y to JOD85.7m); Jordan Insurance (+9.6% to JOD59m); Solidarity – First (+7.6% to JOD46.4m); Al-Nisr Al-Arabi (+7.3% to JOD44.8m); and Middle East Insurance (+6.7% to JOD41.2m). Their combined premiums surged by 45.2% y-o-y to JOD277.1m. M
JOD1 = $1.41