20172018

20172018

(499,723)30,000,000(0.017)

81,4131,527,91212,143,41813,752,743

29

30

115,70430,000,000

0.004

18,23013,105,0465,586,696

18,709,972

( (

4,288,699116,143344,726335,98211,813198,587

5,295,9504,497,233798,717

5,295,950

120,594141,44416,0165,27285,51910,110124,82340,70092,59243,086278,82911,0909,82520,320121,12519,543132,00083,991222,863123,09367,826336,250116,082579,480

2,802,4732,374,498427,975

2,802,473

۱٤۲۸۳۳٤۲

(4,292,662)(858,768)

(5,151,430)

319,51970,000

389,819(70,000)319,819

( )

311,0929,582

(422,647)402,597300,624

(188,454)493,463305,009

( (

( (

14,960,69314,960,693

1,200,219614,490755,263434,474

3,004,446

2,589,9456,192,2648,782,209

3,27816,959817,079125,170962,486

435,957267,70913,5674,735

247,3575,685

975,010

125,170

511,113404,047

143,38255,373

1,113,915

-186,811

1,333,116293,286

1,813,213

511,113590,858

1,476,498348,659

2,927,128

618,46124,658

(586,385)56,734

984,058548,41497,882333,598

1,963,952

1,562,5971,562,597

17,527,2763,670,858142,766

1,065,225(3,699,708)18,706,417

2,514,3201,658,017(861,642)3,310,695

186,868(302,858)116,000

10

805,400

70,461516,601

1,392,462

3,355,834

293,5862,152,5045,801,924

261,000

56,569500,000817,569

3,094,834

237,0171,753,3055,085,156

-

-100,801100,801

15,325,9033,835,785

19,161,688

20,289

20,289

18,230

5,586,6965,604,926

35,350

3,362,201(166,050)3,231,502

and Note Receivable

2,144,598

13.472.98015.617.578

3,552,267

3,552,267

3,406,5593,406,559

15,183,87615,183,876

18,590,435

456,243

2,056,2892,512,532

1,688,355

11,416,69113,105,046

Feb 28,2019

19,698,594277,398

12,027,0087,394,188

2,763,732 687,093

2,076,639

2,098,823536,226

1,562,597514,042

7,908,23016,719,624

229,886 226,272

12,307,153 4,416,085

4,655,077 3,723,555 931,522

4,632,463 3,784,029 848,434 83,088

4,499,173 7,908,2304,499,173

45,424 361,234 70,000

185,104 4,070,841

933,2631,787,490 211,636

2,932,3891,138,452

9,725,531 -

3,592,6416,132,890

3,842,3851,460,0132,382,372

3,863,0271,406,3062,456,721(74,349)

6,058,541

7,791,053 -

3,591,7514,199,302

313,738631,052426,457518,333

404,376731,853541,419594,810(76,477)

4,122,825

6,058,541

4,122,825

- 302,2325,912

2,243,860

207,815 -

812,358746,168

1,766,341

477,519

2,088,084652

1,290,374797,058

1,482,602918,982563,620

803,981487,268316,713246,907(40,000)

1,003,965

2,586,198 -

2,069,536516,662

206,307216,669338,38484,592

232,341399,499505,828126,012(41,420)475,242

1,003,965

475,242

- 82 -

528,805

122,083 -

249,524208,088579,695

(50,890)

11,813,615652

4,883,0156,929,948

5,324,9872,378,9952,945,992

4,667,0081,893,5742,773,434172,558 (40,000)

7,062,506

10,377,251 -

5,661,2874,715,964

520,045847,721764,841602,925

636,7171,131,3521,047,247720,822

(117,897)4,598,067

7,062,506

4,598,067

- 302,314

5,9122,772,665

329,898 -

1,061,882954,256

2,346,036

426,629

Change in Net Premium Deficit Reserve

98,820458 -

58,56340,715

31,95217,74314,209

37,66921,94015,729(1,520)39,195

3,059 - - -

3,059

164,923 -

123,50841,415

140,243 -

95,72744,516(3,101)

(42)

39,195(42)

13,8872,634 -

55,758

3,278 -

8,066 -

11,344

44,414

178,487 - -

8,704169,783

110,7325,777

104,955

80,8243,110

77,71427,241197,024

26,705 - - -

26,705

109,82317,000

- 126,823

98,60617,000

- 115,60611,21737,922

197,02437,922

3,264278 -

162,644

21,493 -

20,935 -

42,428

120,216

277,307458 -

67,267210,498

142,68423,520

119,164

118,49325,05093,44325,721236,219

29,764 - - -

29,764

274,74617,000

123,508168,238

238,84917,00095,727

160,1228,11637,880

236,21937,880

17,1512,912 -

218,402

24,771 -

29,001 -

53,772

164,630

481,13027,54127,654446,34434,673

493,370484,1539,217

400,468393,3317,1372,080

36,753

89,2301,7151,14571,71114,659

2,030,1846,000

2,004,29631,888

1,031,8356,000

1,012,59425,2416,647

21,306

36,75321,306

61,8717,953 -

85,271

6,204 -

43,791 -

49,995

35,276

104,039 - -

86,50517,534

48,64639,9638,683

50,95843,1877,771912

18,446

- - - - -

- - - -

- - - - - -

18,446 -

30,504575 -

49,525

13,747 -

10,765 -

24,512

25,013

585,16927,54127,654

532,84952,207

542,016524,11617,900

451,426436,51814,9082,99255,199

89,2301,7151,145

71,71114,659

2,030,1846,000

2,004,29631,888

1,031,8356,000

1,012,59425,2416,64721,306

55,19921,306

92,3758,528 -

134,796

19,951 -

54,556 -

74,507

60,289

10,713,2542,818,9063,074,6099,831,339626,212

6,911,7896,760,387151,402

6,597,2786,431,430165,848(14,446)

611,766 5,046,443

26,341986,995

3,856,413176,694

6,812,0505,000

6,532,712284,338

5,378,3095,000

5,204,897178,412105,926282,620

611,766282,620

1,212,448137,237

- 1,678,831

151,381261,475955,73870,943

1,439,537

239,294

1,099,29130,5132,459

968,253159,092

546,309477,22569,084

580,870501,88978,981(9,897)(37,000)112,195 63,4172,313 -

52,0269,078

138,9031,000

126,06413,839

115,9581,00087,35529,603

(15,764)(6,686)

112,195(6,686)

266,5991,920 -

387,400

106,26842,150159,7472,553

310,718

76,682

11,812,5452,849,4193,077,06810,799,592

785,304

7,458,0987,237,612220,486

7,178,1486,933,319244,829(24,343)(37,000)723,961 5,109,860

28,654986,995

3,908,439185,772

6,950,9536,000

6,658,776298,177

5,494,2676,000

5,292,252208,01590,162

275,934

723,961275,934

1,479,047139,157

- 2,066,231

257,649303,625

1,115,48573,496

1,750,255

315,976

Change in Net Premium Deficit Reserve

Change in Net Premium Deficit ReserveChange in Net Premium Deficit Reserve

1,525,128175,963165,714

1,329,096206,281

320,397267,94752,450

294,561244,98349,5782,872

-209,153274,9205,869 -

212,19056,861

1,127,40018,000

912,011233,389

1,083,96218,000

958,676143,28690,103146,964

209,153146,964

296,35724,09237,867

420,505

51,80632,153

149,9429,632

243,533

176,972

703,915 - -

602,248101,667

201,255169,16632.089

190,920167,34123,5798,510

(7,500)102,677164,363

925 -

108,23355,205

822,35528,000745,328105,027

430,92228,000400,96857,95447,073

102,278

102,677102,278

151,0451,212 -

152,656

86,07215,84755,306

- 157,225

(4,569)

2,229,043175,963165,714

1,931,344307,948

521,652437,11384,539

485,481412,32473,15711,382(7,500)311,830439,2836,794 -

320,423112,066

1,949,75546,000

1,657,339338,416

1,514,88446,000

1,359,644201,240137,176249,242

311,830249,242

447,40225,30437,867

573,161

137,87848,000205,2489,632

400,758

172,403

Change in Net Premium Deficit ReserveChange in Net Premium Deficit Reserve

14,109,824638,555

270442,155

14,305,954

7,492,489177,119

7,315,370

6,906,548168,625

6,737,923 -

577,44714,883,40118,560,1153,808,557

37,092272,600

14,441,866

9,216,2061,492,452428,481

2,918,0387,362,139

10,815,192992,452496,501

3,246,3488,064,795(702,656)

13,739,21014,883,40113,739,210

132,690726,155153,300

2,156,336

646,977 -

167,9501,149,838484,036

2,448,800(292,465)

ULAE

8,682,365 - -

107,3318,575,034

5,108,98536,593

5,072,392

4,279,73846,624

4,233,114180,000839,278

9,594,3127,651,4541,391,903

- 433,635

5,825,916

4,122,1981,567,298132,485

1,278,0734,278,938

3,854,9001,607,298

28,3291,081,6984,352,171(73,233)

5,752,6839,594,3125,752,683

32,2153,2565,349

3,882,449

958,705131,216116,663

1,468,231144,586

2,819,4011,063,048

22,792,189638,555

270549,486

22,880,988

12,601,474213,712

12,387,762

11,186,286215,249

10,971,037 180,000

1,416,72524,477,71326,211,5695,200,460

37,092706,235

20,267,782

13,338,4043,059,750560,966

4,196,11111,641,077

14,670,0922,599,750524,830

4,328,04612,416,966(775,889)

19,491,89324,477,71319,491,893

164,905729,411158,649

6,038,785

1,605,682131,216284,613

2,618,069628,622

5,268,202770,583

59,679

287,329366,50035,350422,647 (9,582)

(1,605,035) 108,687 (437,385) (514,042) (95,500)

(1,381,352) 53,917 245,724

(1,512,198) 2,960,241

83,899 (1,210,830) 1,318,393

8,494 566,288 (302,858)

- 263,430

(151,817) (9)

5,850 (31,811)

75 (24,658) (145,056) (347,426)

5,041,225 -

5,041,225 4,957,22913,752,74318,709,972

13/A

30

(504,293)

294,809838,82840,700120,743

3,836 (207,679)

81,817 (313,170) (213,431)

1,000143,160 (15,526) 843,945

(1,329,212) (3,057,555) (1,035,087)1,707,979115,118

(255,341) (2,882,519) (376,480) (93,035)

(3,352,034)

(162,339) (6,295)

873 (43,988)

- (3,650) (6,298)

(221,697)

9,919,468 (1,800,000) 8,119,468 4,545,7379,207,006

13,752,743

2018/12/31Balance of the beginning of the yearIFRS (9) EffectEffect of Prior Years AdjustmentsAdjusted BalanceProfit for the year Change in fair value - net after taxTotal comprehensive income for the yearNet change during the yearEnd of year balance2017/12/31Balance of the beginning of the year(Loss) for the yearChange in fair value - net after taxTotal comprehensive income for the yearDividends distributed to shareholdersNet change during the yearEnd of year balance

(4,292,662) - -

(4,292,662) -

(858,768) (858,768)

- (5,151,430)

(7,708,452) -

3,415,790 3,415,790

-

(4,292,662)

379,898 -

(1,067,916) (688,018) 115,704

- 115,704 572,314

-

2,495,548 (499,723)

- (499,723)

(1,800,000) 184,073 379,898

2,164,106 (263,720)

- 1,900,386

- - -

(572,314) 1,328,072

2,348,179 - - - -

(184,073) 2,164,106

35,751,342 (263,720)

(1,067,916) 34,419,706

115,704 (858,768) (743,064)

- 33,676,642

34,635,275 (499,723) 3,415,790 2,916,067 (1,800,000)

- 35,751,342

7,500,000 - -

7,500,000 - - - -

7,500,000

7,500,000 - - - -

7,500,000

30,000,000 - -

30,000,000 - - - -

30,000,000

30,000,000 - - - -

30,000,000

53,201,804 19,698,594 (22,034,911)(12,304,406) 38,561,081 1,605,035 514,042 95,500

40,775,658 2,246,304 1,568,860 319,819 300,624 305,009

45,516,274

58,976,581 (5,237,623) (24,226,752)

229,886 29,742,092 (437,385) 4,497,233 2,374,498 636,238

3,309,092 1,877,647 41,999,415 798,717 257,114 427,975 366,500 35,350

1,462,837 108,687 3,457,180

59,67956,025

115,704-/004

115,704

(858,768) (858,768) (743,064)

Income ( loss ) for the yearOther Compehensive Income Items :Change in Financial Assets at Fair Value - Net After TaxTotal Comprehensive Income Statement ItemsTotal Comprehensive Income for the year

15,617,5783,552,267

18,590,43519,161,688

20,28956,942,257

5,604,9263,231,502

18,706,4173,310,6951,392,4621,113,915

56,7341,963,952

92,322,860

14,170,80814,143,4591,562,597

84,50029,961,36414,960,6933,004,4468,782,209962,486

10975,010

58,646,218

30,000,0007,500,000

(5,151,430)1,328,072

33,676,64292,322,860

8

2014 2015 2016 2017 2018

3,048,967

56,942,25719,161,68837,760,28020,28992,322,86033,676,642

72,900,39834,339,317

53,738,95824,226,752

72,900,39840,775,658

300,6244,439,99245,516,27429,742,09215,714,50345,456,595

59,679115,704

2,405

15,552

23,431

19,699

11,814

79,9%

Insurance Premiums

33%

79,5%

56,9%

65,1%

Mr. Bernd Kohn

In the Name of God the Merciful, Most Compassionate

Respected shareholders,God's peace, mercy and blessings be upon you.

The Board of Directors is honored to welcome you to the General Assembly's 67th ordi-nary meeting and to submit to you its annual report for the fiscal year ending on 31/12/2018.

The year 2018 witnessed a continuation of the tough economic conditions through which the whole region is passing and the state of recession that affected all economic activities and sectors for the past 5 years, and which came as a reflection of the continu-ing regional crises and the ensuing huge financial obligation on friendly and brotherly countries which stood by Jordan and supported it to cover its additional obligations resulting from such crises, which led to a sharp cutback in this support. Furthermore, Jordanian labor in the Gulf countries is threatened with part of it returning to the home-land, which will increase unemployment levels and the accompanying social and eco-nomic problems. Additionally, the decreasing foreign investments in the Kingdom, the low income levels, increasing prices, and the imposition of additional taxes have all led to burdening the Jordanian economy and led to heavy loads on Jordanian citizens, thus increasing unemployment and poverty levels.

Yet in spite of the difficult conditions and challenges faced by the Kingdom, there are still some positive expectations regarding the Jordanian economy's activity, particularly in view of opening borders with Iraq and Syria and the agreements recently signed in this respect, as well as the prospects of reconstruction operations in both brotherly countries, in which the Jordanian private sector is expected to have a role. In addition, some eco-nomic indicators have witnessed stability and growth in some sectors, foremost of which are tourism, banking, and communications sectors. Furthermore, the Central Bank main-taining monetary stability is considered a basic foundation for any investor at the interna-tional and Arabic levels.

Trading volume in the Amman Stock Exchange has reached JD2.3 billion compared to JD2.9 billion in2017. In addition, the Amman Stock Exchange price index dropped from 2126.8 points to 1908.8 points in 2018. The market value of stocks of companies listed on the Amman Stock Exchange decreased by about JD900 million, reaching JD16.1 billion at the end of 2018 compared to JD17 billion at the end of 2017. The economic growth rate is expected to modestly improve in 2019 when Jordan is expecting an improvement in exports, tourism, and foreign inward transfers.

At the level of events through which the Company went during 2018, namely, the offer submitted by Aetna, in which it expressed its intention to purchase all the shares of the shareholders in Jordan Insurance Company; and in light of the said offer, the Compa-ny’s Extraordinary General Assembly was invited to approve the sale of all the shares of

the shareholders in Jordan Insurance Company. In its Extraordinary General Assembly meeting dated 29/07/2018, the General Assembly decided to approve the said sale of shares, which was disclosed to the competent regulatory authorities in compliance with the applicable laws; after which the trading of the Company’s shares was suspended in accordance with the circular issued by Amman Stock Exchange No. (99) dated 30/07/2018. In line with the decision taken by the said Extraordinary General Assembly, Aetna was allowed to conduct its due diligence and to perform the necessary audit and review of the Company’s records. The due diligence process resulted in observations and requirements required to be completed in order to complete the discussions and negotiations related to concluding and executing the deal, which have not been final-ized by end of 2018.

At the Company's operational level, taking into consideration the tough economic condi-tions, severe competition and our disciplined underwriting strategy based on which our company had to let go some loss making accounts, our Gross Written Premium for this year closed at JD 73 million with 8% drop from last year. Booking of additional technical and other provisions have resulted a net profit of JD 115,000 for the year.

The Company has maintained its share of 10 percent of the local market (in which 24 compa-nies are operating).

Motor insurance continues to experience sharp volatility in technical results due to higher frequency of accidents, rising average claim cost coupled with the irresponsible behavior in dealing with motor insurance claims by various parties that depleted the resources of local insurance companies in general. Such negative factors had a serious effect on JIC, resulting in technical losses in this branch amounting to JD 290,000 this year compared to JD550,000 losses last year in Jordan. The ongoing demand to liberate the Motor Third Party Liability insurance in Jordan has been and remains a major challenge for the insurance sector, but the decision is being delayed continuously in spite of the ongoing incurred losses sustained in this type of insurance to avoid imposing additional financial burdens on Jordanian citizens.

ReinsuranceOur disciplined underwriting policy which is based on proper risk analysis and also our professional claims handling management had a positive effect on achieving profits for our reinsurers, in addition to our excellent historical relations which are based on trust and credibility, all have enabled our company to renew its Reinsurance Treaties for the year 2019 with elitist reinsurance companies at expiring terms and conditions.

External BranchesThe insurance market in the United Arab Emirates continues to face larger difficulties and challenges compared to last year. Gross Written Premiums in regional branches amounted to JD 12.9 million, representing 17.7 percent of the total Company premiums.

Real Estate and Financial InvestmentsThe year 2018 witnessed a decrease in financial market activities in addition to unstable prices particularly in the Amman Stock Exchange, resulting in a continued conservative policy by the company regarding its activities in these markets while maintaining ownership of strategic, excellent shares in order to avert price fluctuations and maintain a portfolio within a limited margin of change. We hope that market conditions will improve and prosper in 2019.

The occupancy rates in the Company's rented buildings hovers around 74 percent, which is considered good in current market conditions. Their revenue represents a good income source for Company profits.

JIC continues to keep its real estate investments which represent the paramount guarantee and solid foundation for its solvency during the Company's life cycle. These real estate holdings' market value stands at JD 38 million based on evaluations by three registered and accredited real estate offices. This market value exceeds the book value of these real estate holdings by JD 18 million.

Future Plan1. Maintaining the Company's strategy of retaining its position in the local and regional markets through its disciplined underwriting policy.2. Continue to expand and simultaneously work at improving the operation of foreign branches.3. Maintain our policy of developing human resources with the purpose of maintaining high levels of professionality in customer service.4. Maintain strong relations with international and regional insurance and reinsurance companies based on mutual trust.5. Work at upgrading the Financial Strength Rating and the Issuer Credit Rating of the Company( Based on A.M. Best Company Rating) .

In conclusion, the Board of Directors wishes to express its gratitude and appreciation to all Company staff and workers who contributed to its success and the achievement of its objectives. We also like to thank our clients, agents, and reinsurance partners for their confidence and continued support.

We beseech the Almighty to guide us toward more success in serving our national economy under the leadership and guidance of His Majesty King Abdullah II Ibn Al-Hussein.

Chairman of the Board of Directors Othman Bdeir

In the Name of God the Merciful, Most Compassionate

Respected shareholders,God's peace, mercy and blessings be upon you.

The Board of Directors is honored to welcome you to the General Assembly's 67th ordi-nary meeting and to submit to you its annual report for the fiscal year ending on 31/12/2018.

The year 2018 witnessed a continuation of the tough economic conditions through which the whole region is passing and the state of recession that affected all economic activities and sectors for the past 5 years, and which came as a reflection of the continu-ing regional crises and the ensuing huge financial obligation on friendly and brotherly countries which stood by Jordan and supported it to cover its additional obligations resulting from such crises, which led to a sharp cutback in this support. Furthermore, Jordanian labor in the Gulf countries is threatened with part of it returning to the home-land, which will increase unemployment levels and the accompanying social and eco-nomic problems. Additionally, the decreasing foreign investments in the Kingdom, the low income levels, increasing prices, and the imposition of additional taxes have all led to burdening the Jordanian economy and led to heavy loads on Jordanian citizens, thus increasing unemployment and poverty levels.

Yet in spite of the difficult conditions and challenges faced by the Kingdom, there are still some positive expectations regarding the Jordanian economy's activity, particularly in view of opening borders with Iraq and Syria and the agreements recently signed in this respect, as well as the prospects of reconstruction operations in both brotherly countries, in which the Jordanian private sector is expected to have a role. In addition, some eco-nomic indicators have witnessed stability and growth in some sectors, foremost of which are tourism, banking, and communications sectors. Furthermore, the Central Bank main-taining monetary stability is considered a basic foundation for any investor at the interna-tional and Arabic levels.

Trading volume in the Amman Stock Exchange has reached JD2.3 billion compared to JD2.9 billion in2017. In addition, the Amman Stock Exchange price index dropped from 2126.8 points to 1908.8 points in 2018. The market value of stocks of companies listed on the Amman Stock Exchange decreased by about JD900 million, reaching JD16.1 billion at the end of 2018 compared to JD17 billion at the end of 2017. The economic growth rate is expected to modestly improve in 2019 when Jordan is expecting an improvement in exports, tourism, and foreign inward transfers.

At the level of events through which the Company went during 2018, namely, the offer submitted by Aetna, in which it expressed its intention to purchase all the shares of the shareholders in Jordan Insurance Company; and in light of the said offer, the Compa-ny’s Extraordinary General Assembly was invited to approve the sale of all the shares of

the shareholders in Jordan Insurance Company. In its Extraordinary General Assembly meeting dated 29/07/2018, the General Assembly decided to approve the said sale of shares, which was disclosed to the competent regulatory authorities in compliance with the applicable laws; after which the trading of the Company’s shares was suspended in accordance with the circular issued by Amman Stock Exchange No. (99) dated 30/07/2018. In line with the decision taken by the said Extraordinary General Assembly, Aetna was allowed to conduct its due diligence and to perform the necessary audit and review of the Company’s records. The due diligence process resulted in observations and requirements required to be completed in order to complete the discussions and negotiations related to concluding and executing the deal, which have not been final-ized by end of 2018.

At the Company's operational level, taking into consideration the tough economic condi-tions, severe competition and our disciplined underwriting strategy based on which our company had to let go some loss making accounts, our Gross Written Premium for this year closed at JD 73 million with 8% drop from last year. Booking of additional technical and other provisions have resulted a net profit of JD 115,000 for the year.

The Company has maintained its share of 10 percent of the local market (in which 24 compa-nies are operating).

Motor insurance continues to experience sharp volatility in technical results due to higher frequency of accidents, rising average claim cost coupled with the irresponsible behavior in dealing with motor insurance claims by various parties that depleted the resources of local insurance companies in general. Such negative factors had a serious effect on JIC, resulting in technical losses in this branch amounting to JD 290,000 this year compared to JD550,000 losses last year in Jordan. The ongoing demand to liberate the Motor Third Party Liability insurance in Jordan has been and remains a major challenge for the insurance sector, but the decision is being delayed continuously in spite of the ongoing incurred losses sustained in this type of insurance to avoid imposing additional financial burdens on Jordanian citizens.

ReinsuranceOur disciplined underwriting policy which is based on proper risk analysis and also our professional claims handling management had a positive effect on achieving profits for our reinsurers, in addition to our excellent historical relations which are based on trust and credibility, all have enabled our company to renew its Reinsurance Treaties for the year 2019 with elitist reinsurance companies at expiring terms and conditions.

External BranchesThe insurance market in the United Arab Emirates continues to face larger difficulties and challenges compared to last year. Gross Written Premiums in regional branches amounted to JD 12.9 million, representing 17.7 percent of the total Company premiums.

Real Estate and Financial InvestmentsThe year 2018 witnessed a decrease in financial market activities in addition to unstable prices particularly in the Amman Stock Exchange, resulting in a continued conservative policy by the company regarding its activities in these markets while maintaining ownership of strategic, excellent shares in order to avert price fluctuations and maintain a portfolio within a limited margin of change. We hope that market conditions will improve and prosper in 2019.

The occupancy rates in the Company's rented buildings hovers around 74 percent, which is considered good in current market conditions. Their revenue represents a good income source for Company profits.

JIC continues to keep its real estate investments which represent the paramount guarantee and solid foundation for its solvency during the Company's life cycle. These real estate holdings' market value stands at JD 38 million based on evaluations by three registered and accredited real estate offices. This market value exceeds the book value of these real estate holdings by JD 18 million.

Future Plan1. Maintaining the Company's strategy of retaining its position in the local and regional markets through its disciplined underwriting policy.2. Continue to expand and simultaneously work at improving the operation of foreign branches.3. Maintain our policy of developing human resources with the purpose of maintaining high levels of professionality in customer service.4. Maintain strong relations with international and regional insurance and reinsurance companies based on mutual trust.5. Work at upgrading the Financial Strength Rating and the Issuer Credit Rating of the Company( Based on A.M. Best Company Rating) .

In conclusion, the Board of Directors wishes to express its gratitude and appreciation to all Company staff and workers who contributed to its success and the achievement of its objectives. We also like to thank our clients, agents, and reinsurance partners for their confidence and continued support.

We beseech the Almighty to guide us toward more success in serving our national economy under the leadership and guidance of His Majesty King Abdullah II Ibn Al-Hussein.

Chairman of the Board of Directors Othman Bdeir

In the Name of God the Merciful, Most Compassionate

Respected shareholders,God's peace, mercy and blessings be upon you.

The Board of Directors is honored to welcome you to the General Assembly's 67th ordi-nary meeting and to submit to you its annual report for the fiscal year ending on 31/12/2018.

The year 2018 witnessed a continuation of the tough economic conditions through which the whole region is passing and the state of recession that affected all economic activities and sectors for the past 5 years, and which came as a reflection of the continu-ing regional crises and the ensuing huge financial obligation on friendly and brotherly countries which stood by Jordan and supported it to cover its additional obligations resulting from such crises, which led to a sharp cutback in this support. Furthermore, Jordanian labor in the Gulf countries is threatened with part of it returning to the home-land, which will increase unemployment levels and the accompanying social and eco-nomic problems. Additionally, the decreasing foreign investments in the Kingdom, the low income levels, increasing prices, and the imposition of additional taxes have all led to burdening the Jordanian economy and led to heavy loads on Jordanian citizens, thus increasing unemployment and poverty levels.

Yet in spite of the difficult conditions and challenges faced by the Kingdom, there are still some positive expectations regarding the Jordanian economy's activity, particularly in view of opening borders with Iraq and Syria and the agreements recently signed in this respect, as well as the prospects of reconstruction operations in both brotherly countries, in which the Jordanian private sector is expected to have a role. In addition, some eco-nomic indicators have witnessed stability and growth in some sectors, foremost of which are tourism, banking, and communications sectors. Furthermore, the Central Bank main-taining monetary stability is considered a basic foundation for any investor at the interna-tional and Arabic levels.

Trading volume in the Amman Stock Exchange has reached JD2.3 billion compared to JD2.9 billion in2017. In addition, the Amman Stock Exchange price index dropped from 2126.8 points to 1908.8 points in 2018. The market value of stocks of companies listed on the Amman Stock Exchange decreased by about JD900 million, reaching JD16.1 billion at the end of 2018 compared to JD17 billion at the end of 2017. The economic growth rate is expected to modestly improve in 2019 when Jordan is expecting an improvement in exports, tourism, and foreign inward transfers.

At the level of events through which the Company went during 2018, namely, the offer submitted by Aetna, in which it expressed its intention to purchase all the shares of the shareholders in Jordan Insurance Company; and in light of the said offer, the Compa-ny’s Extraordinary General Assembly was invited to approve the sale of all the shares of

the shareholders in Jordan Insurance Company. In its Extraordinary General Assembly meeting dated 29/07/2018, the General Assembly decided to approve the said sale of shares, which was disclosed to the competent regulatory authorities in compliance with the applicable laws; after which the trading of the Company’s shares was suspended in accordance with the circular issued by Amman Stock Exchange No. (99) dated 30/07/2018. In line with the decision taken by the said Extraordinary General Assembly, Aetna was allowed to conduct its due diligence and to perform the necessary audit and review of the Company’s records. The due diligence process resulted in observations and requirements required to be completed in order to complete the discussions and negotiations related to concluding and executing the deal, which have not been final-ized by end of 2018.

At the Company's operational level, taking into consideration the tough economic condi-tions, severe competition and our disciplined underwriting strategy based on which our company had to let go some loss making accounts, our Gross Written Premium for this year closed at JD 73 million with 8% drop from last year. Booking of additional technical and other provisions have resulted a net profit of JD 115,000 for the year.

The Company has maintained its share of 10 percent of the local market (in which 24 compa-nies are operating).

Motor insurance continues to experience sharp volatility in technical results due to higher frequency of accidents, rising average claim cost coupled with the irresponsible behavior in dealing with motor insurance claims by various parties that depleted the resources of local insurance companies in general. Such negative factors had a serious effect on JIC, resulting in technical losses in this branch amounting to JD 290,000 this year compared to JD550,000 losses last year in Jordan. The ongoing demand to liberate the Motor Third Party Liability insurance in Jordan has been and remains a major challenge for the insurance sector, but the decision is being delayed continuously in spite of the ongoing incurred losses sustained in this type of insurance to avoid imposing additional financial burdens on Jordanian citizens.

ReinsuranceOur disciplined underwriting policy which is based on proper risk analysis and also our professional claims handling management had a positive effect on achieving profits for our reinsurers, in addition to our excellent historical relations which are based on trust and credibility, all have enabled our company to renew its Reinsurance Treaties for the year 2019 with elitist reinsurance companies at expiring terms and conditions.

External BranchesThe insurance market in the United Arab Emirates continues to face larger difficulties and challenges compared to last year. Gross Written Premiums in regional branches amounted to JD 12.9 million, representing 17.7 percent of the total Company premiums.

Real Estate and Financial InvestmentsThe year 2018 witnessed a decrease in financial market activities in addition to unstable prices particularly in the Amman Stock Exchange, resulting in a continued conservative policy by the company regarding its activities in these markets while maintaining ownership of strategic, excellent shares in order to avert price fluctuations and maintain a portfolio within a limited margin of change. We hope that market conditions will improve and prosper in 2019.

The occupancy rates in the Company's rented buildings hovers around 74 percent, which is considered good in current market conditions. Their revenue represents a good income source for Company profits.

JIC continues to keep its real estate investments which represent the paramount guarantee and solid foundation for its solvency during the Company's life cycle. These real estate holdings' market value stands at JD 38 million based on evaluations by three registered and accredited real estate offices. This market value exceeds the book value of these real estate holdings by JD 18 million.

Future Plan1. Maintaining the Company's strategy of retaining its position in the local and regional markets through its disciplined underwriting policy.2. Continue to expand and simultaneously work at improving the operation of foreign branches.3. Maintain our policy of developing human resources with the purpose of maintaining high levels of professionality in customer service.4. Maintain strong relations with international and regional insurance and reinsurance companies based on mutual trust.5. Work at upgrading the Financial Strength Rating and the Issuer Credit Rating of the Company( Based on A.M. Best Company Rating) .

In conclusion, the Board of Directors wishes to express its gratitude and appreciation to all Company staff and workers who contributed to its success and the achievement of its objectives. We also like to thank our clients, agents, and reinsurance partners for their confidence and continued support.

We beseech the Almighty to guide us toward more success in serving our national economy under the leadership and guidance of His Majesty King Abdullah II Ibn Al-Hussein.

Chairman of the Board of Directors Othman Bdeir

His Royal HighnessCrown Prince Al Hussein Bin Abdullah IIHis Royal HighnessCrown Prince Al Hussein Bin Abdullah II

His MajestyKing Abdullah II Bin Al-HusseinHis MajestyKing Abdullah II Bin Al-Hussein

Letter from the Chairman

Branches

Board of Directors

Income Statement Information

Financial Statements

Notes to Financial Statements

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