Insurance companies in Jordan posted net profit before tax of JOD19.5m ($27.5m) for 2018, 622% higher compared to JOD2.7m for 2017, according to the annual report for 2018 issued by the Ministry of Industry, Trade and Supply last week.
Total technical profits reached JOD17.1m in 2018 against a technical profit of JOD3.5m in the previous year.
The increase in profits is mainly due to the improved performance of the medical insurance branch. Medical insurance posted a profit of JOD3.4m in 2018 turning around from a loss of JOD16.1m in 2017.
Total premiums written in the insurance industry in Jordan amounted to JOD605.8m ($854m) in 2018, an increase of 2% from the previous year.
Life insurance accounted for 14.2% of total premiums in 2018 whereas non-life business commanded 85.8%. Motor insurance constituted 37.6% of total written premiums while medical insurance accounted for 30.1%.
The insurance penetration ratio in Jordan in 2018 was 2.02%. Although this is still below the world's average penetration rate of 6.09%, it is one of the highest in the Middle East and Africa. The insurance density in Jordan for 2018 was J0D58.80.
Total insurance compensation paid increased by 4.4% during 2018 to reach JOD478.8m compared to JOD458.7m in 2017.
The Jordanian insurance sector consisted of 24 insurance companies licensed to conduct business inside Jordan as at the end of 2018.