AM Best Affirms Credit Ratings of Jordan Insurance Company Plc.

LONDON--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” (Fair) of Jordan Insurance Company Plc. (JIC) (Jordan). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect JIC’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management (ERM).

JIC’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which has been maintained at the strongest level at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s BCAR scores have improved in recent years as a result of the suspension of dividend payments and the divesture of certain high-risk investments. Nonetheless, a partially offsetting rating factor is JIC’s significant holdings of illiquid equity and real estate asset classes, which have subjected the shareholders’ equity to volatility and constrained its regulatory solvency capital ratio. The ratings also consider JIC’s high reinsurance dependence for large property and commercial risks, although the associated risks are mitigated partially by a stable reinsurance panel of good credit quality.

JIC has a track record of adequate operating performance, evidenced by return-on-equity ratios averaging approximately 4% over the past five years (2021-2025). Underwriting profitability is driven by life operations, in part offset by technical losses in the company’s non-life book due to challenging market conditions, particularly for motor business. The company expects reforms in Jordan’s motor segment to drive improvement in prospective performance. Overall operating results have been supported by modest investment income, which translated into an average net investment return of 3.3% over the past five years.

JIC has an established position in Jordan’s insurance market, where it consistently ranks in the top three based on gross written premium; however, Jordan’s insurance market remains relatively small by international standards. JIC’s insurance services revenue is well-diversified across a range of life and non-life business lines in Jordan. Nonetheless, due to low net retention of commercial lines, net insurance services revenue is concentrated in motor and medical, although to a lesser extent than its domestic peers.

Over recent years, JIC has developed a sound ERM framework. However, AM Best considers that the company’s risk management capabilities are not commensurate with the company’s risk profile in areas including investments and capital management, considering the shortfall in meeting regulatory solvency requirements. Over recent years, the company has taken steps to improve its regulatory solvency metrics and has a plan in place to meet the requirements over the medium term.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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