Jerusalem Insurance Company (JICO) has announced the completion of its acquisition of 72% of the shares of Arabia Insurance Company - Jordan (Arabia Jordan), after completing all regulatory requirements and obtaining final approvals from the competent regulatory authorities, led by the Central Bank of Jordan, the Securities Commission, and the Companies Control Department.
JICO said in a statement that the acquisition marks a major strategic milestone and one of the largest deals in Jordan’s insurance sector to date. Described as a qualitative leap for the company, the transaction reinforces JICO’s strategy to strengthen its local market presence, enhance its competitiveness, and solidify its position as a leading player in the Jordanian insurance industry.
Capital increase
As part of this strategy, JICO has increased its capital to JOD16m ($22.6m), demonstrating its commitment to bolstering financial solvency and expanding its business base in alignment with future growth ambitions.
Merger
The two companies involved in the deal will be merged. JICO emphasised that the integration will be executed through a smooth and carefully managed transition. The merger aims to elevate the level of service offered to customers by combining the expertise of two long-standing, well-established insurers, optimising shared resources and delivering stronger financial performance upon completion.
Both companies will continue to provide their insurance services as usual, with a full commitment not to affect the customer experience during the transition period. According to the statement, the two companies will soon begin implementing merger and integration plans, including unifying organisational structures and operational policies; as well as integrating systems and services, as part of a unified vision for sustainable growth.
Commenting on the acquisition, JICO chairman Mohammed Alayan said, "This step is part of our plan to expand and grow, and build a stronger and more capable insurance entity capable of meeting the requirements of the market and providing integrated solutions to customers."
Arabia Jordan chairman Sufyan Dais expressed his confidence in the success of the merger, stressing that the institutional partnership between the two parties will open new horizons for all shareholders, customers and employees, and will contribute to the development of the Jordanian insurance sector and raise the standards of its services.