Gulf Insurance Group in Jordan (gig Jordan) achieved in 2019 its highest profit since its establishment as well as retained its market leadership position.
Profits before tax for gig Jordan reached JOD7.18m ($10.1m) in 2019, an increase of almost 69% from the preceding year, while net profits reached JOD5.16m, a jump of 61% from 2018, making the gains the highest since the company was launched in 1996. The company’s cash and bank deposits have also grown by JOD10m to reach JOD58.3m, accounting for 53% of its total assets.
The company’s GWP stood at JOD85.6m, about the same as 2018's JOD85.2m while paid claims dropped by 7% to around JOD58.7m in 2019.
The company continued its healthy performance in 2019, said Dr Ali Al-Wazani, CEO of gig Jordan. He added, “The company retained its market leadership as it continued to control the largest market share of around 14%. The drop in cost of claims reflected positively on the company’s technical results.”
He added that technical reserves increased by JOD5m in 2019. The combined ratio dropped to 89% against 96% in 2018 while administrative and general expense were reduced by 7%.
Solvency ratio for the company reached 191%, which was the highest in the past 10 years. Shareholders’ equity has also increased to JOD27.81m from JOD23m in 2018, which led to an 18% increase in gig’s book value per share as it reached JOD1.3 against JOD1.1 in the previous year.
gig Jordan is part of the Kuwait-based Gulf Insurance Group, one of the largest insurance groups in the MENA region.