52
53
53
20182019
2019 2018
29
30
115,70430,000,000
0.004
1,470,91230,000,000
0.049
18,23013,105,0465,586,696
18,709,972
89,46515,151,3735,863,977
21,104,815
( (
52
20182019
20182019
4,288,699116,143344,726335,98211,813198,587
5,295,9504,497,233798,717
5,295,950
4,598,535-
390,401372,85523,631185,549
5,570,9714,732,276838,695
5,570,971
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
110,632136,27712,7385,64298,06912,764170,15740,700104,66243,303308,00810,59012,0511,365
100,05422,115132,000107,525162,87937,30361,258170,23178,096597,393
2,535,8122,156,342379,470
2,535,812
51
۱٤۲۸۳۳٤۲
(4,292,662)(858,768)
(5,151,430)
(5,515,430)953,789
(4,197,641)
319,51970,000
389,819(70,000)319,819
445,45076,378
521,828(76,378)445,450
311,0929,582
(422,647)402,597
-300,624
712,87958,438
(153,002)421,978280,131
1,320,424Real Estate Investment Return
(188,454)493,463305,009
(145,132)439,538294,406
( (
50
2019 2018
2019 2018
2019 2018
2019 2018
14,960,69314,960,693
11,906,95211,906,952
1,200,219614,490755,263434,474
3,004,446
1,892,184481,631644,069551,809
3,569,693
2,589,9456,192,2648,782,209
2,929,5174,257,7867,187,303
3,27816,959817,079125,170962,486
3,27836,437
1,048,304135,539
1,223,558
435,957267,70913,5674,735
247,3575,685
-975,010
412,821251,962
1174,735
203,0875,68555,000
933,407Board of Director’s Remunertion
49
2019 2018
20182019
20182019
20182019
20182019
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
511,113393,438
119,91832,459
1,056,928
-197,746
1,383,420317,179
1,898,345
511,113591,184
1,503,338349,638
2,955,273
618,46124,658
(586,385)56,734
643,119201,233
(635,129)209,223
984,058548,41497,882333,598
1,963,952
1,146,522552,15949,723332,218
2,080,622
1,562,5971,562,597
1,578,7891,578,789
48
31/12/2019 31/12/2018
20182019
20182019
20182019
17,527,2763,670,858142,766
1,065,225(3,699,708)18,706,417
15,808,6272,941,337121,859
1,146,584(3,712,160)16,306,247
2,514,3201,658,017(861,642)3,310,695
2,537,6601,518,139(861,642)3,194,157
186,868(302,858)116,000
10
10(141,188)245,000103,822
805,400
70,461516,601
1,392,462
841,005
87,617592,020
1,520,642
3,234,637
336,9872,277,0005,848,624
61,197
9,223-
70,420
40,000
52,624124,496217,120
3,255,834
293,5862,152,5045,701,924
47
2019 2018
2019 2018
2019 2018
31/12/2019 31/12/2018
15,325,9033,835,785
19,161,688
12,617,4413,741,349
16,358,790
20,289
20,289
45,539
45,539
18,230
5,586,6965,604,926
89,465
5,863,9775,953,442
35,350
3,362,201(166,050)3,231,502
48,175
3,532,534(166,050)3,414,659
and Note Receivable
46
2019 2018
2019 2018
2019 2018
2019 2018
2,144,598
13,472,98015,617,578
2,758,657
14,920,62917,679,286
471,624
2,056,2892,527,913
2,287,033
12,864,34015,151,373
3,552,267
3,552,267
2,327,354
2,327,354
3,406,5593,406,559
15,183,87615,183,876
18,590,435
3,855,5503,855,550
15,466,37215,466,372
19,321,922
45
31/12/201831/12/2019
2019 2018
2019 2018
44
43
42
41
Feb 25,2020
31, 2018
40
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
20,270,026 171,963
11,743,274 8,354,789
2,098,823 536,226
1,562,597
2,236,443 657,654
1,578,789 (16,192)
8,338,597 15,582,785
46,059 121,539
11,142,596 4,364,709
4,569,174 3,747,100 822,074
4,655,077 3,723,555 931,522 (109,448)4,255,261 8,338,597 4,255,261
622,771 310,373 76,378 32,229
5,125,087
1,551,1651,905,998 227,560
3,684,723 1,440,364
38
2019 2018
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
- 302,232
5,9122,243,860
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
- 302,3145,912
2,772,665
329,898 -
1,061,882954,256
2,346,036
426,629
9,696,391-
3,392,4506,303,941
3,863,0271,406,3062,456,721
4,250,5871,531,5422,719,045(262,324)
-6,041,617
6,842,685-
3,059,0093,783,676
329,310500,000373,190456,120
313,738631,052426,457518,333(62,213)
3,721,463
6,041,617
3,721,463
-286,8798,066
2,615,099
226,332-
943,491722,980
1,892,803
722,296
1,997,650886
1,271,299725,465
803,981487,268316,713
755,083474,344280,73935,974(4,981)756,458
1,594,019-
1,275,570318,449
99,269129,338180,78547,822
206,307216,669338,38484,592
(36,770)281,679
756,458
281,679
-70-
474,849
142,077-
285,128151,714578,919
(104,070)
11,694,041886
4,663,7497,029,406
4,667,0081,893,5742,773,434
5,005,6702,005,8862,999,784(226,350)
(4,981)6,798,075
8,436,704-
4,334,5794,102,125
428,579629,338553,975503,942
520,045847,721764,841602,925(98,983)
4,003,142
6,798,075
4,003,142
-286,949
8,0663,089,948
368,409-
1,228,619874,694
2,471,722
618,226
Change in Net Premium Deficit Reserve
37
2019 2018
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
176,878--
11,761165,117
80,8243,110
77,714
86,5583,460
83,098(5,384)159,733
13,936---
13,936
112,30816,007
-128,315
109,82317,000
-126,823
1,49215,428
159,73315,428
4,411196
-148,912
21,528-
23,465-
44,993
103,919
276,879492
-57,664
219,707
118,49325,05093,443
134,79526,206
108,589(15,146)204,561
15,136--
1,02014,116
305,04116,007
145,968175,080
274,74617,000
123,508168,238
6,84220,958
204,56120,958
21,3443,611
-208,558
27,276-
31,889-
59,165
149,393
100,001492
-45,90354,590
37,66921,94015,729
48,23722,74625,491(9,762)44,828
1,200--
1,020180
192,733-
145,96846,765
164,923-
123,50841,4155,3505,530
44,8285,530
16,9333,415
-59,646
5,748-
8,424-
14,172
45,474
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
118,49325,05093,44325,721
236,219
29,764 - - -
29,764
274,74617,000123,508168,238
238,84917,00095,727
160,1228,116
37,880
236,21937,880
17,1512,912 -
218,402
24,771 -
29,001 -
53,772
164,630
36
2019 2018
481,13027,54127,654
446,34434,673
493,370484,1539,217
400,468393,3317,1372,08036,753
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
36,75321,306
61,8717,953 -
85,271
6,204 -
43,791 -
49,995
35,276
506,6901,4001,509
480,20826,373
400,468393,3317,137
292,891286,9615,9301,207
27,580
40,02931,492
-11,469(2,932)
2,034,8126,000
2,018,36122,451
2,030,1846,000
2,004,29631,888(9,437)
(12,369)
27,580(12,369)
73,7729,276
-122,997
4,792-
44,896-
49,688
73,309
86,802--
72,73114,071
50,95843,1877,771
51,38444,1027,282489
14,560
555--
50154
----
-----
54
14,56054
25,890287
-40,683
12,696-
10,503-
23,199
17,484
593,4921,4001,509
552,93940,444
451,426436,51814,908
344,275331,06313,2121,69642,140
40,58431,492
-11,970(2,878)
2,034,8126,000
2,018,36122,451
2,030,1846,000
2,004,29631,888(9,437)(12,315)
42,140(12,315)
99,6629,563
-163,680
17,488-
55,398-
72,886
90,794
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
585,16927,54127,654532,84952,207
542,016524,11617,900
451,426436,51814,9082,992
55,199
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
55,19921,306
92,3758,528 -
134,796
19,951 -
54,556 -
74,507
60,289
35
2019 2018
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
9,994,3032,937,4683,198,2649,239,719493,788
6,597,2786,431,430165,848
6,367,5676,210,153157,4148,434
-502,222
1,581,518289,8033,455
1,221,91866,342
5,892,2225,000
5,693,981203,241
6,812,0505,000
6,532,712284,338(81,097)(14,755)
502,222(14,755)
1,195,303129,808
-1,842,088
199,600245,562888,74284,876
1,418,780
423,308
1,051,09731,331
133934,295148,000
580,870501,88978,981
580,312518,19262,12016,861
(70,243)94,618270,077
--
187,55382,524
396,51142,307318,040120,778
138,9031,000
126,06413,839
106,939189,463
94,618189,463
250,2651,683
-157,103
97,78655,974214,757
648369,165
(212,062)
11,045,4002,968,7993,198,39710,174,014
641,788
7,178,1486,933,319244,829
6,947,8796,728,345219,53425,295
(70,243)596,840
1,851,595289,8033,455
1,409,471148,866
6,288,73347,307
6,012,021324,019
6,950,9536,000
6,658,776298,17725,842
174,708
596,840174,708\
1,445,568131,491
-1,999,190
297,386301,536
1,103,49985,524
1,787,945
211,246
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
34
2019 2018
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
1,127,40018,000912,011233,389
1,083,96218,000958,676143,28690,103
146,964
209,153146,964
296,35724,09237,867
420,505
51,80632,153149,9429,632
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
431,921 28,000400,96857,95347,073
102,279
102,677102,279
151,0451,212 -
152,655
86,07215,84755,306
- 157,225
(4,570)
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
172,402
966,032165,868161,040788,697182,163
294,561244,98349,578
229,337186,02243,3156,263
-188,426280,94733,102
-203,80844,037
1,262,74418,000
951,989328,755
1,127,40018,000
912,011233,38995,366139,403
188,426139,403
244,13117,912
130,735441,801
36,82330,437
137,4716,808
211,539
230,262
660,494--
555,383105,111
190,920167,34123,579
215,640179,53036,110
(12,531)(27,477)65,103411,8937,375
-358,81645,702
720,81246,369674,17493,007
822,35528,000745,328105,027(12,020)33,682
65,10333,682
140,8691,354
-173,644
71,80917,563108,412
-197,784
(24,140)
1,626,526165,868161,040
1,344,080287,274
485,481412,32473,157
444,977365,55279,425(6,268)(27,477)253,529692,84040,477
-562,62489,739
1,983,55664,369
1,626,163421,762
1,949,75546,000
1,657,339338,41683,346 173,085
253,529173,085
385,00019,266130,735615,445
108,63248,000245,8836,808
409,323
206,122
33
2019 2018
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
13,688,201673,357
-427,118
13,934,440
6,906,548168,625
6,737,923
6,904,531166,284
6,738,247(324)
-13,934,11615,148,2192,998,615
100335,287
11,814,217
8,785,2521,973,000276,600
2,465,4868,016,166
9,216,2061,492,452428,481
2,918,0387,362,139654,027
12,468,24413,934,11612,468,244
127,914701,592151,912
2,447,290
618,222-
163,282944,155557,124
2,282,784164,506
5,680,423--
140,4155,540,008
4,279,73846,624
4,233,114
2,949,60070,966
2,878,6341,354,480
-6,894,4886,979,8541,470,199
-89,258
5,420,397
3,308,8501,481,495368,361
1,102,7563,319,228
4,122,1981,567,298132,485
1,278,0784,278,933(959,705)4,460,6926,894,4884,460,692
42,1242,2605,012
2,483,192
638,721(36,019)64,917
1,373,17599,030
2,139,824343,368
19,368,624673,357
-567,533
19,474,448
11,186,286215,249
10,971,037
9,854,131237,250
9,616,8811,354,156
-20,828,60422,128,0734,468,814
100424,545
17,234,614
12,094,1023,454,495644,961
3,568,24211,335,394
13,338,4043,059,750560,966
4,196,11611,641,072(305,678)
16,928,93620,828,60416,928,936
170,038703,852156,924
4,930,482
1,256,943(36,019)228,199
2,317,331656,154
4,422,608507,874
32
2019 2018
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 (31,736)(24,658)(145,056)
- (347,426)
5,041,225 5,041,225 4,957,22913,752,74318,709,972
1,587,732
243,96281,625
-153,002(58,438)(280,131)
(1,133,383)134,242
(443,540)16,192102,701403,964
1,130,349(183,157)2,318,545116,538
(116,670)565,247
(1,594,906)95,939
2,735,849(141,188)(10,712)
2,583,949
(15,381)161,701(25,250)(28,145)(201,233)(51,990)
3,024,9332,864,635
(3,053,741)(3,053,741)2,394,84318,709,97221,104,81530
31
2019 2018
(Gains) on the Sale of Investment Property
(Increase) Decrease in re-insurance companies payable accounts
Decrease in re-insurance companies receivable accounts
31/12/2019Balance of the beginning of the yearProfit for the year Change in fair value - net after taxTotal comprehensive income for the yearNet change during the yearEnd of year balance31/12/2018Balance 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 balance
(4,292,662) - -
(4,292,662) -
(858,768) (858,768)
- (5,151,430)
379,898 -
(1,067,916) (688,018) 115,704
- 115,704 572,314
-
2,164,106 (263,720)
- 1,900,386
- - -
(572,314) 1,328,072
35,751,342 (263,720)
(1,067,916) 34,419,706
115,704 (858,768) (743,064)
- 33,676,642
7,500,000 - -
7,500,000 - - - -
7,500,000
30,000,000 - -
30,000,000 - - - -
30,000,000
(5,151,430)-
953,789953,789
-(4,197,641)
- 1,470,912
- 1,470,912 (253,171)
1,217,741
1,328,072-
(60,601) (60,601)253,171
1,520,642
33,676,6421,470,912893,188
2,364,101-
36,040,742
7,500,000 - - - -
7,500,000
30,000,000 - - - -
30,000,000
30
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
48,414,878 20,270,026 (20,721,811) (11,915,237) 36,047,856 1,133,383 (16,192) (102,701)
37,062,346 2,744,383 1,465,105 445,450
1,320,424 294,406
43,332,114
48,747,717 (4,830,586) (18,011,899)
46,059 25,951,291 (443,535) 4,732,276 2,156,342 577,735
3,627,299 1,850,740
38,452,148 838,695 243,957 379,470 81,625
- 1,559,564 188,923
3,292,234 1,587,732 (116,820) 1,470,912
-/049
115,704
(858,768)-
(858,768) (743,064)
1,470,912
953,789 (60,601)893,188
2,364,100
Income for the yearOther Compehensive Income Items :Change in Financial Assets at Fair Value - Net After Tax
Total Comprehensive Income Statement Items(Loss) on the Sale of Financial Assets at Fair Value Through Other Comprehensive Income
Total Comprehensive Income for the year
29
2019 2018
2019 2018
242526
2728
27
28
29
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
17,679,2862,327,354
19,321,92216,358,790
45,53955,732,891
5,953,4423,414,659
16,306,2473,194,1571,520,6421,056,928209,223
2,080,62289,468,811
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
13,037,42513,699,9191,578,789187,201
28,503,33411,906,9523,569,6937,187,3031,223,558103,822933,407
53,428,068
30,000,0007,500,000
(4,197,641)2,738,383
36,040,74289,468,811
28
2019 2018
2019 2018
17
18192021
13/A22
23
45678
9101112
13/B141516
27
- 6 -
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguard procedures. From the matters communicated with those charged with governance, we determine those matters of most significance in the audit of the financial statements of the current year, and are therefore, the key audit matters. We describe these matters in our auditor’s report unless law and regulations preclude public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on Legal and Other Regulatory Requirements The Company maintains proper accounting records that are consist, in all material respects, with the financial statements, and we recommend that they be approved. Amman – Jordan March 1, 2020
Deloitte & Touche (M.E.) – Jordan
26
- 5 -
As part of an audit in accordance with ISA’s, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from error, as fraud may involve collusion, forgery, intentional omission, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of
accounting, and based on the audit evidences obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the Company’s audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
25
- 4 -
Other Matter The accompanying financial statements are a translation of the statutory financial statements, which are in the Arabic language to which reference should be made. Other Information Management is responsible for the other information. The other information comprises the other information in the annual report excluding the financial statements and the independent auditors’ report thereon, which is expected to be made available to us after the date of our audit report. Our opinion on the financial statements does not cover the other information, and we do not express any form of assurance or conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS, and for such internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
24
- 3 -
Evaluation of Unquoted Investments in
Regulated Markets
Scope of Audit to Address Risks
Investments in securities primarily comprise of
investments in unquoted securities and
amounts to JD 4,656,959 as at 31 December
2019. These instruments are classified as
financial assets at fair value through other
comprehensive income.
As disclosed in Note (4) significant accounting
judgement and estimates, the valuation of
investments in unquoted securities uses inputs
other than observable market data and
therefore are inherently subjective. It also
requires significant judgement to be applied by
management in determining the appropriate
valuation methodology and use of various
assumptions like cash flows, discount rates,
market risk adjustments etc. The valuations
were performed by management of the
Company.
Given the inherent subjectivity and judgment
required in the valuation of such unquoted
investments that are classified under level 3
fair value hierarchy, we determined this to be a
key audit matter.
We obtained an understanding of the process
adopted by management to determine the
fair value of unquoted securities.
We assessed the design and implementation
of controls in this area of the audit.
We agreed the valuations performed by
management to the amount reported in the
financial statements.
We agreed the inputs into the valuation which
depend on the latest audited / reviewed
financial statements, as applicable.
We reperformed the arithmetical accuracy of
the valuations.
We assessed the disclosures in the financial
statements relating to this matter against the
requirements of IFRSs.
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
23
- 2 -
Key Audit Matters Key audit matters, in our professional judgment, are the most significant matters in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters:
Technical Provisions Scope of Audit to Address Risks As at 31 December 2019, the Company had technical reserves of approximately JD 28.5 million which includes claims incurred but not reported (IBNR) and other technical reserves. The Company uses a range of actuarial methodologies to estimate these claims. This requires significant judgements to be applied and estimates to be made, for example; inflation rates, claims development patterns and interpretations of regulatory requirements. The measurement of technical reserves is a key judgmental area for management given the level of subjectivity inherent in estimating the impact of claim events that have occurred for which the ultimate outcome remains uncertain. We have determined that this area is a key audit matter due to the significance of the amounts involved and of the level of significant judgements applied by management in the process for determination of gross outstanding claims. Refer to notes (4) and (18) in the financial statements which related to this matter.
We evaluated the design and tested the implementation and operating effectiveness of key controls over management’s processes for claims processing and payment, including controls over the completeness and accuracy of the claim estimates recorded. We performed substantive tests on the amounts recorded for a sample of claims notified and paid, including comparing the outstanding claims amount to appropriate source documentation to evaluate the valuation of outstanding claims and technical reserves. Using our actuarial specialists we performed re-projections on IBNR relating to selected operating segments, where we compared our re-projected IBNR to those booked by management, and sought to understand any significant differences. We reviewed the competence, skills, independence and objectivity of Company’s Actuarial expert and reviewed the terms of engagement between the expert and the Company to determine if the scope of their work was sufficient for audit purposes. For the remaining operating segments, we assessed the reasonableness of methodologies and assumptions used by management against recognized actuarial practices and industry standards to identify and evaluate any anomalies. We assessed the completeness and accuracy of data used by management in their calculation of technical reserves. We assessed the disclosures in the financial statements relating to this matter against the requirements of IFRSs.
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
22
Deloitte & Touche (ME) – Jordan Jabal Amman, 5th Circle 190Zahran Street Amman 11118, Jordan Tel: +962 (6) 5502200 Fax: +962 (6) 5502210 www.deloitte.com
Independent Auditor’s Report
AM/ 007608 To the Shareholders of Jordan Insurance Company (A Public Shareholding Limited Company) Amman – The Hashemite Kingdom of Jordan Report on the Audit of the Financial Statements Opinion We have audited the financial statements of Jordan Insurance Company (the Company), which comprise the statement of financial position as of December 31, 2019, and the statement of profit or loss and other comprehensive income, statement of changes in shareholders’ equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants together with the other ethical requirements that are relevant to our audit of the Company’s financial statements in Jordan, and we have fulfilled our other ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
9
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
2015 2016 2017 2018 2019
3,048,9673,224,023
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
20
2019 2018 2017 2016 2015
56,942,25719,161,68837,760,28020,28992,322,86033,676,642
55,732,89116,358,79039,328,56245,53989,468,81136,040,742
72,900,39834,339,317
53,738,95824,226,752
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
19
2019 2018 2017 2016 2015
2019 2018 2017 2016 2015
2018201720162015 2019
68,684,90432,637,048
43،917،13118,011,899
72,900,39840,775,658
300,6244,439,99245,516,27429,742,09215,714,50345,456,595
2019
2019
20192019 2018
20192019
2019
2019
2019
20182019
2018
2018
20182018
20182018
2018
2019 2018
59,679115,704
2,405
15,552
23,431
19,699
11,814
79,9%
Insurance Premiums
33%
79,5%
56,9%
65,1%
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
18
2019 2018 2017 2016 2015
1,79267,4 %
14,88621.5%
20,04281,3%
20,27051,05%
11,69458,8%
68,684,90437,062,3461,320,4244,949,34443,332,11425,951,29115,793,09141,744,3821,587,7321,470,912
Mr. Bernd Kohn
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
17
(Representing Ethmar Co.)
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
16
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
15
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
14
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
13
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
His Royal HighnessCrown Prince Al Hussein Bin Abdullah IIHis Royal HighnessCrown Prince Al Hussein Bin Abdullah II
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
His MajestyKing Abdullah II Bin Al-HusseinHis MajestyKing Abdullah II Bin Al-Hussein
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
In the Name of God, the Most Merciful, the Most Compassionate
Esteemed ShareholdersMay God’s peace and blessings by upon you.
The Board of Directors is honored to welcome you to the ordinary 68th General Assembly and to present to you the company’s annual report for the year ended on December 31, 2019.
The outgoing fiscal year have witnessed the continuation of difficult economic conditions throughout the region and the state of stagnation that has affected all activities and economic sectors for over ten years. This came as a reflection of the ongoing regional crises and their subsequent financial and economic problems suffered by all states in the region, directly affecting the level of support Jordan receives from neighboring and friendly countries to confront additional commitments resulting from such crises.
Furthermore, some of the Jordanian expatriates in the Gulf countries are under the threat of returning to the homeland as a result of the high cost of living and the labor nationalization laws being implemented. This would have a negative impact on incoming remittences which form a major support of the national economy and will also raise the unemployment levels and increase the accompanying social and economic problems.
Yet, in spite of such difficult circumstances and challenges faced by the Kingdom, expectations are positive regarding Jordanian economic activity, particularly in view of the cross-border commercial activity with Iraq and Syria due to the implementation of agreements recently signed, and we hope that the private sector will have a role to play in rebuilding the two countries. In addition, some stability has been seen in some economic indicators and there has been growth in some sectors, foremost of which are the tourism, banking and communications. Furthermore, the Central Bank of Jordan maintaining monetary stability is considered a basic foundation for any investor at the international or regional levels.
The volume of trading in the Amman Stock Exchange reached JD1.6 billion, compared to JD2.3 billion in 2018. In addition, the Amman Stock Exchange index dropped from 1908.8 to 1815.2 in 2019. The market value of listed company shares decreased by about JD1.2 billion, reaching JD14.9 billion at the end of 2019, compared to JD16.1 billion at the end of 2018. The level of economic growth is expected to improve modestly in 2020, as Jordan is expecting a revival from exports and tourism as well as external foreign transfers.
On the business front, the difficult economic conditions coupled with severe market competition and our disciplined approach to underwriting ,have produced a gross written premium of JD 68.7 million, being a 6% drop from 2018. In spite of such drop in revenue, our company was able to achieve improved results with net profits for this year amounting to JD1.4 million, compared to JD 0.116 millian in 2018.
The company has also maintained its local market share (in which 24 insurance companies operate), which currently stands at 10%.
Motor insurance continues to witness sharp volatility in results due to higher frequency of accidents, rising average claim cost as well as the pervasive and irresponsible behavior in dealing with motor insurance claims by different parties, resulting in the exhaustion of capacities of insurance companies in the market. As a result, the company took some practical measures in the Motor Claims Department which have positively affected the performance and produced technical profits reaching JD 160,000 in Jordan, compared to JD290,000 losses in 2018 and JD560,000 losses in 2017.
The ongoing demand to liberate the Motor Third Party Liability insurance market in Jordan has been and remains a major challenge for the insurance sector, with the decision being continuously pushed forward, to avoid imposing additional financial burden on Jordanian citizens in spite of the accumulating losses incurred in this line of insurance.
ReinsuranceOur disciplined underwriting approach which is based on proper risk analysis and our professional claims handling management have all had a positive effect in achieving profits for our reinsurers with whom our company have always had outstanding historic relations based on trust and credibility , JIC was able to renew its Reinsurance Treaties for the year 2020 with the top reinsurance companies at expiring terms & conditions.
External BranchesCompetition between more than 60 insurance companies in the UAE is still ongoing and intensified in 2019 where the market has witnessed majore price reductions in motor and medical lines. Our gross written premiums in the UAE have reached JD 9.7 million representing 14.1% of the company’s gross written premium of JD 68.7 million.
Reals Estate and Financial InvestmentsIn 2019 financial markets faced various challenges in addition to unstable prices, particularly at the Amman Stock Exchange, resulting an ongoing conservative approach by the company in its trading activities to avoid the effect of price fluctuations, while maintaining ownership of its strategic shares as part of its portfolio. We hope the market conditions will improve and flourish in 2020.Jordan’s real-estate market is also going through an unprecedented stagnation, which has had a negative effect on trading prices of real estate in 2019 and on the evaluation of real estate in general.
The occupancy rate of the company’s buildings as of December 31, 2019 was 72.5%, a fairly good rate when considering the market conditions, and the revenue generated represents a good support for the company’s profits.
JIC continues to maintain its real-estate investments, which represent a paramount guarantee and a solid foundation of its financial solvency during the company’s forward march. The market value of these investments amounts to JD33.5 million, based on their valuation by three registered and accredited real-estate brokerage companies, being JD16 million over the book value.
Future Plan1. Maintaining the company’s strategy of upholding its position in the local and regional markets through its disciplined underwriting approach.2. Continuing to expand and work on improving the performance of external branches.3. To continue the devebpment of our human resources enabling them to keep the highest standards and to offer the best customer service. 4. Maintaining our solid relationships with international and regional insurance and reinsurance companies based on mutual trust.5. Work on upgrading the company’s financial ratings with A. M. Best Company .
In conclusion, the Board of Directors would like to extend its gratitude and appreciation to all employees and staff members who contribute to its success. We would also like to thank our clients, agents and reinsurance partners for their continued confidence and support.
We ask God Almighty to lead our way towards more success in serving our national economy under the guidance and direction of His Majesty King Abdullah II.
Chairman of the Board of DirectorsOthman M. Bdeir
Letter from the Chairman
Branches
Board of Directors
Income Statement Information
Financial Statements
Notes to Financial Statements
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