Middle East Insurance Company (MEICO) has a track record of moderate operating profitability, demonstrated by return-on-equity ratios of approximately 5% over the past five years (2021-2025), according to AM Best.
MEICO’s underwriting performance has been impacted adversely by the results of its motor third-party liability line of business, which is tariffed and unprofitable for Jordan’s insurance market, translating into modest overall underwriting losses between 2021-2023.
However, the company maintained underwriting discipline in other business lines, leading to a steady improvement in underwriting results with MEICO reporting combined ratios of 99.6% in 2024 and 97.8% in 2025, as calculated by AM Best.
Despite some volatility, investment performance has contributed positively to MEICO’s operating results in recent years. MEICO’s exit from Jordan’s motor market is expected to improve underwriting performance.
Ratings affirmed
AM Best has affirmed MEICO’s Financial Strength Rating of ‘B ‘(Fair) and the Long-Term Issuer Credit Rating of ‘bb+’ (Fair). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect MEICO’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
MEICO’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR). Concentration in the company’s equity and real estate portfolios remains a significant driver of capital requirements.
The balance sheet strength assessment considers MEICO’s unleveraged balance sheet, adequate liquidity, sound reserving practices and moderate underwriting leverage.
The holding company assessment stemming from MEICO’s parent, Middle East Holding Company Plc (MEHC), is considered neutral, reflecting MEHC’s very strong level of risk-adjusted capitalisation, as measured by BCAR, with its solvency drivers similar to MEICO’s. MEHC had low financial leverage with strong interest coverage at year-end 2025.
Business profile
MEICO is a small composite Jordanian insurer. MEICO’s prospective market profile is expected to decline following the company’s exit from the motor business in early 2026. Nevertheless, the company’s business profile is expected to remain in line with the limited assessment supported by profitable growth in other lines of business over the medium term.