20172018
20172018
(499,723)30,000,000(0.017)
81,4131,527,91212,143,41813,752,743
29
30
115,70430,000,000
0.004
18,23013,105,0465,586,696
18,709,972
( (
4,288,699116,143344,726335,98211,813198,587
5,295,9504,497,233798,717
5,295,950
120,594141,44416,0165,27285,51910,110124,82340,70092,59243,086278,82911,0909,82520,320121,12519,543132,00083,991222,863123,09367,826336,250116,082579,480
2,802,4732,374,498427,975
2,802,473
۱٤۲۸۳۳٤۲
(4,292,662)(858,768)
(5,151,430)
319,51970,000
389,819(70,000)319,819
( )
311,0929,582
(422,647)402,597300,624
(188,454)493,463305,009
( (
( (
14,960,69314,960,693
1,200,219614,490755,263434,474
3,004,446
2,589,9456,192,2648,782,209
3,27816,959817,079125,170962,486
435,957267,70913,5674,735
247,3575,685
975,010
125,170
511,113404,047
143,38255,373
1,113,915
-186,811
1,333,116293,286
1,813,213
511,113590,858
1,476,498348,659
2,927,128
618,46124,658
(586,385)56,734
984,058548,41497,882333,598
1,963,952
1,562,5971,562,597
17,527,2763,670,858142,766
1,065,225(3,699,708)18,706,417
2,514,3201,658,017(861,642)3,310,695
186,868(302,858)116,000
10
805,400
70,461516,601
1,392,462
3,355,834
293,5862,152,5045,801,924
261,000
56,569500,000817,569
3,094,834
237,0171,753,3055,085,156
-
-100,801100,801
15,325,9033,835,785
19,161,688
20,289
20,289
18,230
5,586,6965,604,926
35,350
3,362,201(166,050)3,231,502
and Note Receivable
2,144,598
13.472.98015.617.578
3,552,267
3,552,267
3,406,5593,406,559
15,183,87615,183,876
18,590,435
456,243
2,056,2892,512,532
1,688,355
11,416,69113,105,046
Feb 28,2019
19,698,594277,398
12,027,0087,394,188
2,763,732 687,093
2,076,639
2,098,823536,226
1,562,597514,042
7,908,23016,719,624
229,886 226,272
12,307,153 4,416,085
4,655,077 3,723,555 931,522
4,632,463 3,784,029 848,434 83,088
4,499,173 7,908,2304,499,173
45,424 361,234 70,000
185,104 4,070,841
933,2631,787,490 211,636
2,932,3891,138,452
9,725,531 -
3,592,6416,132,890
3,842,3851,460,0132,382,372
3,863,0271,406,3062,456,721(74,349)
6,058,541
7,791,053 -
3,591,7514,199,302
313,738631,052426,457518,333
404,376731,853541,419594,810(76,477)
4,122,825
6,058,541
4,122,825
- 302,2325,912
2,243,860
207,815 -
812,358746,168
1,766,341
477,519
2,088,084652
1,290,374797,058
1,482,602918,982563,620
803,981487,268316,713246,907(40,000)
1,003,965
2,586,198 -
2,069,536516,662
206,307216,669338,38484,592
232,341399,499505,828126,012(41,420)475,242
1,003,965
475,242
- 82 -
528,805
122,083 -
249,524208,088579,695
(50,890)
11,813,615652
4,883,0156,929,948
5,324,9872,378,9952,945,992
4,667,0081,893,5742,773,434172,558 (40,000)
7,062,506
10,377,251 -
5,661,2874,715,964
520,045847,721764,841602,925
636,7171,131,3521,047,247720,822
(117,897)4,598,067
7,062,506
4,598,067
- 302,314
5,9122,772,665
329,898 -
1,061,882954,256
2,346,036
426,629
Change in Net Premium Deficit Reserve
98,820458 -
58,56340,715
31,95217,74314,209
37,66921,94015,729(1,520)39,195
3,059 - - -
3,059
164,923 -
123,50841,415
140,243 -
95,72744,516(3,101)
(42)
39,195(42)
13,8872,634 -
55,758
3,278 -
8,066 -
11,344
44,414
178,487 - -
8,704169,783
110,7325,777
104,955
80,8243,110
77,71427,241197,024
26,705 - - -
26,705
109,82317,000
- 126,823
98,60617,000
- 115,60611,21737,922
197,02437,922
3,264278 -
162,644
21,493 -
20,935 -
42,428
120,216
277,307458 -
67,267210,498
142,68423,520
119,164
118,49325,05093,44325,721236,219
29,764 - - -
29,764
274,74617,000
123,508168,238
238,84917,00095,727
160,1228,11637,880
236,21937,880
17,1512,912 -
218,402
24,771 -
29,001 -
53,772
164,630
481,13027,54127,654446,34434,673
493,370484,1539,217
400,468393,3317,1372,080
36,753
89,2301,7151,14571,71114,659
2,030,1846,000
2,004,29631,888
1,031,8356,000
1,012,59425,2416,647
21,306
36,75321,306
61,8717,953 -
85,271
6,204 -
43,791 -
49,995
35,276
104,039 - -
86,50517,534
48,64639,9638,683
50,95843,1877,771912
18,446
- - - - -
- - - -
- - - - - -
18,446 -
30,504575 -
49,525
13,747 -
10,765 -
24,512
25,013
585,16927,54127,654
532,84952,207
542,016524,11617,900
451,426436,51814,9082,99255,199
89,2301,7151,145
71,71114,659
2,030,1846,000
2,004,29631,888
1,031,8356,000
1,012,59425,2416,64721,306
55,19921,306
92,3758,528 -
134,796
19,951 -
54,556 -
74,507
60,289
10,713,2542,818,9063,074,6099,831,339626,212
6,911,7896,760,387151,402
6,597,2786,431,430165,848(14,446)
611,766 5,046,443
26,341986,995
3,856,413176,694
6,812,0505,000
6,532,712284,338
5,378,3095,000
5,204,897178,412105,926282,620
611,766282,620
1,212,448137,237
- 1,678,831
151,381261,475955,73870,943
1,439,537
239,294
1,099,29130,5132,459
968,253159,092
546,309477,22569,084
580,870501,88978,981(9,897)(37,000)112,195 63,4172,313 -
52,0269,078
138,9031,000
126,06413,839
115,9581,00087,35529,603
(15,764)(6,686)
112,195(6,686)
266,5991,920 -
387,400
106,26842,150159,7472,553
310,718
76,682
11,812,5452,849,4193,077,06810,799,592
785,304
7,458,0987,237,612220,486
7,178,1486,933,319244,829(24,343)(37,000)723,961 5,109,860
28,654986,995
3,908,439185,772
6,950,9536,000
6,658,776298,177
5,494,2676,000
5,292,252208,01590,162
275,934
723,961275,934
1,479,047139,157
- 2,066,231
257,649303,625
1,115,48573,496
1,750,255
315,976
Change in Net Premium Deficit Reserve
Change in Net Premium Deficit ReserveChange in Net Premium Deficit Reserve
1,525,128175,963165,714
1,329,096206,281
320,397267,94752,450
294,561244,98349,5782,872
-209,153274,9205,869 -
212,19056,861
1,127,40018,000
912,011233,389
1,083,96218,000
958,676143,28690,103146,964
209,153146,964
296,35724,09237,867
420,505
51,80632,153
149,9429,632
243,533
176,972
703,915 - -
602,248101,667
201,255169,16632.089
190,920167,34123,5798,510
(7,500)102,677164,363
925 -
108,23355,205
822,35528,000745,328105,027
430,92228,000400,96857,95447,073
102,278
102,677102,278
151,0451,212 -
152,656
86,07215,84755,306
- 157,225
(4,569)
2,229,043175,963165,714
1,931,344307,948
521,652437,11384,539
485,481412,32473,15711,382(7,500)311,830439,2836,794 -
320,423112,066
1,949,75546,000
1,657,339338,416
1,514,88446,000
1,359,644201,240137,176249,242
311,830249,242
447,40225,30437,867
573,161
137,87848,000205,2489,632
400,758
172,403
Change in Net Premium Deficit ReserveChange in Net Premium Deficit Reserve
14,109,824638,555
270442,155
14,305,954
7,492,489177,119
7,315,370
6,906,548168,625
6,737,923 -
577,44714,883,40118,560,1153,808,557
37,092272,600
14,441,866
9,216,2061,492,452428,481
2,918,0387,362,139
10,815,192992,452496,501
3,246,3488,064,795(702,656)
13,739,21014,883,40113,739,210
132,690726,155153,300
2,156,336
646,977 -
167,9501,149,838484,036
2,448,800(292,465)
ULAE
8,682,365 - -
107,3318,575,034
5,108,98536,593
5,072,392
4,279,73846,624
4,233,114180,000839,278
9,594,3127,651,4541,391,903
- 433,635
5,825,916
4,122,1981,567,298132,485
1,278,0734,278,938
3,854,9001,607,298
28,3291,081,6984,352,171(73,233)
5,752,6839,594,3125,752,683
32,2153,2565,349
3,882,449
958,705131,216116,663
1,468,231144,586
2,819,4011,063,048
22,792,189638,555
270549,486
22,880,988
12,601,474213,712
12,387,762
11,186,286215,249
10,971,037 180,000
1,416,72524,477,71326,211,5695,200,460
37,092706,235
20,267,782
13,338,4043,059,750560,966
4,196,11111,641,077
14,670,0922,599,750524,830
4,328,04612,416,966(775,889)
19,491,89324,477,71319,491,893
164,905729,411158,649
6,038,785
1,605,682131,216284,613
2,618,069628,622
5,268,202770,583
59,679
287,329366,50035,350422,647 (9,582)
(1,605,035) 108,687 (437,385) (514,042) (95,500)
(1,381,352) 53,917 245,724
(1,512,198) 2,960,241
83,899 (1,210,830) 1,318,393
8,494 566,288 (302,858)
- 263,430
(151,817) (9)
5,850 (31,811)
75 (24,658) (145,056) (347,426)
5,041,225 -
5,041,225 4,957,22913,752,74318,709,972
13/A
30
(504,293)
294,809838,82840,700120,743
3,836 (207,679)
81,817 (313,170) (213,431)
1,000143,160 (15,526) 843,945
(1,329,212) (3,057,555) (1,035,087)1,707,979115,118
(255,341) (2,882,519) (376,480) (93,035)
(3,352,034)
(162,339) (6,295)
873 (43,988)
- (3,650) (6,298)
(221,697)
9,919,468 (1,800,000) 8,119,468 4,545,7379,207,006
13,752,743
2018/12/31Balance of the beginning of the yearIFRS (9) EffectEffect of Prior Years AdjustmentsAdjusted BalanceProfit for the year Change in fair value - net after taxTotal comprehensive income for the yearNet change during the yearEnd of year balance2017/12/31Balance of the beginning of the year(Loss) for the yearChange in fair value - net after taxTotal comprehensive income for the yearDividends distributed to shareholdersNet change during the yearEnd of year balance
(4,292,662) - -
(4,292,662) -
(858,768) (858,768)
- (5,151,430)
(7,708,452) -
3,415,790 3,415,790
-
(4,292,662)
379,898 -
(1,067,916) (688,018) 115,704
- 115,704 572,314
-
2,495,548 (499,723)
- (499,723)
(1,800,000) 184,073 379,898
2,164,106 (263,720)
- 1,900,386
- - -
(572,314) 1,328,072
2,348,179 - - - -
(184,073) 2,164,106
35,751,342 (263,720)
(1,067,916) 34,419,706
115,704 (858,768) (743,064)
- 33,676,642
34,635,275 (499,723) 3,415,790 2,916,067 (1,800,000)
- 35,751,342
7,500,000 - -
7,500,000 - - - -
7,500,000
7,500,000 - - - -
7,500,000
30,000,000 - -
30,000,000 - - - -
30,000,000
30,000,000 - - - -
30,000,000
53,201,804 19,698,594 (22,034,911)(12,304,406) 38,561,081 1,605,035 514,042 95,500
40,775,658 2,246,304 1,568,860 319,819 300,624 305,009
45,516,274
58,976,581 (5,237,623) (24,226,752)
229,886 29,742,092 (437,385) 4,497,233 2,374,498 636,238
3,309,092 1,877,647 41,999,415 798,717 257,114 427,975 366,500 35,350
1,462,837 108,687 3,457,180
59,67956,025
115,704-/004
115,704
(858,768) (858,768) (743,064)
Income ( loss ) for the yearOther Compehensive Income Items :Change in Financial Assets at Fair Value - Net After TaxTotal Comprehensive Income Statement ItemsTotal Comprehensive Income for the year
15,617,5783,552,267
18,590,43519,161,688
20,28956,942,257
5,604,9263,231,502
18,706,4173,310,6951,392,4621,113,915
56,7341,963,952
92,322,860
14,170,80814,143,4591,562,597
84,50029,961,36414,960,6933,004,4468,782,209962,486
10975,010
58,646,218
30,000,0007,500,000
(5,151,430)1,328,072
33,676,64292,322,860
8
2014 2015 2016 2017 2018
3,048,967
56,942,25719,161,68837,760,28020,28992,322,86033,676,642
72,900,39834,339,317
53,738,95824,226,752
72,900,39840,775,658
300,6244,439,99245,516,27429,742,09215,714,50345,456,595
59,679115,704
2,405
15,552
23,431
19,699
11,814
79,9%
Insurance Premiums
33%
79,5%
56,9%
65,1%
Mr. Bernd Kohn
In the Name of God the Merciful, Most Compassionate
Respected shareholders,God's peace, mercy and blessings be upon you.
The Board of Directors is honored to welcome you to the General Assembly's 67th ordi-nary meeting and to submit to you its annual report for the fiscal year ending on 31/12/2018.
The year 2018 witnessed a continuation of the tough economic conditions through which the whole region is passing and the state of recession that affected all economic activities and sectors for the past 5 years, and which came as a reflection of the continu-ing regional crises and the ensuing huge financial obligation on friendly and brotherly countries which stood by Jordan and supported it to cover its additional obligations resulting from such crises, which led to a sharp cutback in this support. Furthermore, Jordanian labor in the Gulf countries is threatened with part of it returning to the home-land, which will increase unemployment levels and the accompanying social and eco-nomic problems. Additionally, the decreasing foreign investments in the Kingdom, the low income levels, increasing prices, and the imposition of additional taxes have all led to burdening the Jordanian economy and led to heavy loads on Jordanian citizens, thus increasing unemployment and poverty levels.
Yet in spite of the difficult conditions and challenges faced by the Kingdom, there are still some positive expectations regarding the Jordanian economy's activity, particularly in view of opening borders with Iraq and Syria and the agreements recently signed in this respect, as well as the prospects of reconstruction operations in both brotherly countries, in which the Jordanian private sector is expected to have a role. In addition, some eco-nomic indicators have witnessed stability and growth in some sectors, foremost of which are tourism, banking, and communications sectors. Furthermore, the Central Bank main-taining monetary stability is considered a basic foundation for any investor at the interna-tional and Arabic levels.
Trading volume in the Amman Stock Exchange has reached JD2.3 billion compared to JD2.9 billion in2017. In addition, the Amman Stock Exchange price index dropped from 2126.8 points to 1908.8 points in 2018. The market value of stocks of companies listed on the Amman Stock Exchange decreased by about JD900 million, reaching JD16.1 billion at the end of 2018 compared to JD17 billion at the end of 2017. The economic growth rate is expected to modestly improve in 2019 when Jordan is expecting an improvement in exports, tourism, and foreign inward transfers.
At the level of events through which the Company went during 2018, namely, the offer submitted by Aetna, in which it expressed its intention to purchase all the shares of the shareholders in Jordan Insurance Company; and in light of the said offer, the Compa-ny’s Extraordinary General Assembly was invited to approve the sale of all the shares of
the shareholders in Jordan Insurance Company. In its Extraordinary General Assembly meeting dated 29/07/2018, the General Assembly decided to approve the said sale of shares, which was disclosed to the competent regulatory authorities in compliance with the applicable laws; after which the trading of the Company’s shares was suspended in accordance with the circular issued by Amman Stock Exchange No. (99) dated 30/07/2018. In line with the decision taken by the said Extraordinary General Assembly, Aetna was allowed to conduct its due diligence and to perform the necessary audit and review of the Company’s records. The due diligence process resulted in observations and requirements required to be completed in order to complete the discussions and negotiations related to concluding and executing the deal, which have not been final-ized by end of 2018.
At the Company's operational level, taking into consideration the tough economic condi-tions, severe competition and our disciplined underwriting strategy based on which our company had to let go some loss making accounts, our Gross Written Premium for this year closed at JD 73 million with 8% drop from last year. Booking of additional technical and other provisions have resulted a net profit of JD 115,000 for the year.
The Company has maintained its share of 10 percent of the local market (in which 24 compa-nies are operating).
Motor insurance continues to experience sharp volatility in technical results due to higher frequency of accidents, rising average claim cost coupled with the irresponsible behavior in dealing with motor insurance claims by various parties that depleted the resources of local insurance companies in general. Such negative factors had a serious effect on JIC, resulting in technical losses in this branch amounting to JD 290,000 this year compared to JD550,000 losses last year in Jordan. The ongoing demand to liberate the Motor Third Party Liability insurance in Jordan has been and remains a major challenge for the insurance sector, but the decision is being delayed continuously in spite of the ongoing incurred losses sustained in this type of insurance to avoid imposing additional financial burdens on Jordanian citizens.
ReinsuranceOur disciplined underwriting policy which is based on proper risk analysis and also our professional claims handling management had a positive effect on achieving profits for our reinsurers, in addition to our excellent historical relations which are based on trust and credibility, all have enabled our company to renew its Reinsurance Treaties for the year 2019 with elitist reinsurance companies at expiring terms and conditions.
External BranchesThe insurance market in the United Arab Emirates continues to face larger difficulties and challenges compared to last year. Gross Written Premiums in regional branches amounted to JD 12.9 million, representing 17.7 percent of the total Company premiums.
Real Estate and Financial InvestmentsThe year 2018 witnessed a decrease in financial market activities in addition to unstable prices particularly in the Amman Stock Exchange, resulting in a continued conservative policy by the company regarding its activities in these markets while maintaining ownership of strategic, excellent shares in order to avert price fluctuations and maintain a portfolio within a limited margin of change. We hope that market conditions will improve and prosper in 2019.
The occupancy rates in the Company's rented buildings hovers around 74 percent, which is considered good in current market conditions. Their revenue represents a good income source for Company profits.
JIC continues to keep its real estate investments which represent the paramount guarantee and solid foundation for its solvency during the Company's life cycle. These real estate holdings' market value stands at JD 38 million based on evaluations by three registered and accredited real estate offices. This market value exceeds the book value of these real estate holdings by JD 18 million.
Future Plan1. Maintaining the Company's strategy of retaining its position in the local and regional markets through its disciplined underwriting policy.2. Continue to expand and simultaneously work at improving the operation of foreign branches.3. Maintain our policy of developing human resources with the purpose of maintaining high levels of professionality in customer service.4. Maintain strong relations with international and regional insurance and reinsurance companies based on mutual trust.5. Work at upgrading the Financial Strength Rating and the Issuer Credit Rating of the Company( Based on A.M. Best Company Rating) .
In conclusion, the Board of Directors wishes to express its gratitude and appreciation to all Company staff and workers who contributed to its success and the achievement of its objectives. We also like to thank our clients, agents, and reinsurance partners for their confidence and continued support.
We beseech the Almighty to guide us toward more success in serving our national economy under the leadership and guidance of His Majesty King Abdullah II Ibn Al-Hussein.
Chairman of the Board of Directors Othman Bdeir
In the Name of God the Merciful, Most Compassionate
Respected shareholders,God's peace, mercy and blessings be upon you.
The Board of Directors is honored to welcome you to the General Assembly's 67th ordi-nary meeting and to submit to you its annual report for the fiscal year ending on 31/12/2018.
The year 2018 witnessed a continuation of the tough economic conditions through which the whole region is passing and the state of recession that affected all economic activities and sectors for the past 5 years, and which came as a reflection of the continu-ing regional crises and the ensuing huge financial obligation on friendly and brotherly countries which stood by Jordan and supported it to cover its additional obligations resulting from such crises, which led to a sharp cutback in this support. Furthermore, Jordanian labor in the Gulf countries is threatened with part of it returning to the home-land, which will increase unemployment levels and the accompanying social and eco-nomic problems. Additionally, the decreasing foreign investments in the Kingdom, the low income levels, increasing prices, and the imposition of additional taxes have all led to burdening the Jordanian economy and led to heavy loads on Jordanian citizens, thus increasing unemployment and poverty levels.
Yet in spite of the difficult conditions and challenges faced by the Kingdom, there are still some positive expectations regarding the Jordanian economy's activity, particularly in view of opening borders with Iraq and Syria and the agreements recently signed in this respect, as well as the prospects of reconstruction operations in both brotherly countries, in which the Jordanian private sector is expected to have a role. In addition, some eco-nomic indicators have witnessed stability and growth in some sectors, foremost of which are tourism, banking, and communications sectors. Furthermore, the Central Bank main-taining monetary stability is considered a basic foundation for any investor at the interna-tional and Arabic levels.
Trading volume in the Amman Stock Exchange has reached JD2.3 billion compared to JD2.9 billion in2017. In addition, the Amman Stock Exchange price index dropped from 2126.8 points to 1908.8 points in 2018. The market value of stocks of companies listed on the Amman Stock Exchange decreased by about JD900 million, reaching JD16.1 billion at the end of 2018 compared to JD17 billion at the end of 2017. The economic growth rate is expected to modestly improve in 2019 when Jordan is expecting an improvement in exports, tourism, and foreign inward transfers.
At the level of events through which the Company went during 2018, namely, the offer submitted by Aetna, in which it expressed its intention to purchase all the shares of the shareholders in Jordan Insurance Company; and in light of the said offer, the Compa-ny’s Extraordinary General Assembly was invited to approve the sale of all the shares of
the shareholders in Jordan Insurance Company. In its Extraordinary General Assembly meeting dated 29/07/2018, the General Assembly decided to approve the said sale of shares, which was disclosed to the competent regulatory authorities in compliance with the applicable laws; after which the trading of the Company’s shares was suspended in accordance with the circular issued by Amman Stock Exchange No. (99) dated 30/07/2018. In line with the decision taken by the said Extraordinary General Assembly, Aetna was allowed to conduct its due diligence and to perform the necessary audit and review of the Company’s records. The due diligence process resulted in observations and requirements required to be completed in order to complete the discussions and negotiations related to concluding and executing the deal, which have not been final-ized by end of 2018.
At the Company's operational level, taking into consideration the tough economic condi-tions, severe competition and our disciplined underwriting strategy based on which our company had to let go some loss making accounts, our Gross Written Premium for this year closed at JD 73 million with 8% drop from last year. Booking of additional technical and other provisions have resulted a net profit of JD 115,000 for the year.
The Company has maintained its share of 10 percent of the local market (in which 24 compa-nies are operating).
Motor insurance continues to experience sharp volatility in technical results due to higher frequency of accidents, rising average claim cost coupled with the irresponsible behavior in dealing with motor insurance claims by various parties that depleted the resources of local insurance companies in general. Such negative factors had a serious effect on JIC, resulting in technical losses in this branch amounting to JD 290,000 this year compared to JD550,000 losses last year in Jordan. The ongoing demand to liberate the Motor Third Party Liability insurance in Jordan has been and remains a major challenge for the insurance sector, but the decision is being delayed continuously in spite of the ongoing incurred losses sustained in this type of insurance to avoid imposing additional financial burdens on Jordanian citizens.
ReinsuranceOur disciplined underwriting policy which is based on proper risk analysis and also our professional claims handling management had a positive effect on achieving profits for our reinsurers, in addition to our excellent historical relations which are based on trust and credibility, all have enabled our company to renew its Reinsurance Treaties for the year 2019 with elitist reinsurance companies at expiring terms and conditions.
External BranchesThe insurance market in the United Arab Emirates continues to face larger difficulties and challenges compared to last year. Gross Written Premiums in regional branches amounted to JD 12.9 million, representing 17.7 percent of the total Company premiums.
Real Estate and Financial InvestmentsThe year 2018 witnessed a decrease in financial market activities in addition to unstable prices particularly in the Amman Stock Exchange, resulting in a continued conservative policy by the company regarding its activities in these markets while maintaining ownership of strategic, excellent shares in order to avert price fluctuations and maintain a portfolio within a limited margin of change. We hope that market conditions will improve and prosper in 2019.
The occupancy rates in the Company's rented buildings hovers around 74 percent, which is considered good in current market conditions. Their revenue represents a good income source for Company profits.
JIC continues to keep its real estate investments which represent the paramount guarantee and solid foundation for its solvency during the Company's life cycle. These real estate holdings' market value stands at JD 38 million based on evaluations by three registered and accredited real estate offices. This market value exceeds the book value of these real estate holdings by JD 18 million.
Future Plan1. Maintaining the Company's strategy of retaining its position in the local and regional markets through its disciplined underwriting policy.2. Continue to expand and simultaneously work at improving the operation of foreign branches.3. Maintain our policy of developing human resources with the purpose of maintaining high levels of professionality in customer service.4. Maintain strong relations with international and regional insurance and reinsurance companies based on mutual trust.5. Work at upgrading the Financial Strength Rating and the Issuer Credit Rating of the Company( Based on A.M. Best Company Rating) .
In conclusion, the Board of Directors wishes to express its gratitude and appreciation to all Company staff and workers who contributed to its success and the achievement of its objectives. We also like to thank our clients, agents, and reinsurance partners for their confidence and continued support.
We beseech the Almighty to guide us toward more success in serving our national economy under the leadership and guidance of His Majesty King Abdullah II Ibn Al-Hussein.
Chairman of the Board of Directors Othman Bdeir
In the Name of God the Merciful, Most Compassionate
Respected shareholders,God's peace, mercy and blessings be upon you.
The Board of Directors is honored to welcome you to the General Assembly's 67th ordi-nary meeting and to submit to you its annual report for the fiscal year ending on 31/12/2018.
The year 2018 witnessed a continuation of the tough economic conditions through which the whole region is passing and the state of recession that affected all economic activities and sectors for the past 5 years, and which came as a reflection of the continu-ing regional crises and the ensuing huge financial obligation on friendly and brotherly countries which stood by Jordan and supported it to cover its additional obligations resulting from such crises, which led to a sharp cutback in this support. Furthermore, Jordanian labor in the Gulf countries is threatened with part of it returning to the home-land, which will increase unemployment levels and the accompanying social and eco-nomic problems. Additionally, the decreasing foreign investments in the Kingdom, the low income levels, increasing prices, and the imposition of additional taxes have all led to burdening the Jordanian economy and led to heavy loads on Jordanian citizens, thus increasing unemployment and poverty levels.
Yet in spite of the difficult conditions and challenges faced by the Kingdom, there are still some positive expectations regarding the Jordanian economy's activity, particularly in view of opening borders with Iraq and Syria and the agreements recently signed in this respect, as well as the prospects of reconstruction operations in both brotherly countries, in which the Jordanian private sector is expected to have a role. In addition, some eco-nomic indicators have witnessed stability and growth in some sectors, foremost of which are tourism, banking, and communications sectors. Furthermore, the Central Bank main-taining monetary stability is considered a basic foundation for any investor at the interna-tional and Arabic levels.
Trading volume in the Amman Stock Exchange has reached JD2.3 billion compared to JD2.9 billion in2017. In addition, the Amman Stock Exchange price index dropped from 2126.8 points to 1908.8 points in 2018. The market value of stocks of companies listed on the Amman Stock Exchange decreased by about JD900 million, reaching JD16.1 billion at the end of 2018 compared to JD17 billion at the end of 2017. The economic growth rate is expected to modestly improve in 2019 when Jordan is expecting an improvement in exports, tourism, and foreign inward transfers.
At the level of events through which the Company went during 2018, namely, the offer submitted by Aetna, in which it expressed its intention to purchase all the shares of the shareholders in Jordan Insurance Company; and in light of the said offer, the Compa-ny’s Extraordinary General Assembly was invited to approve the sale of all the shares of
the shareholders in Jordan Insurance Company. In its Extraordinary General Assembly meeting dated 29/07/2018, the General Assembly decided to approve the said sale of shares, which was disclosed to the competent regulatory authorities in compliance with the applicable laws; after which the trading of the Company’s shares was suspended in accordance with the circular issued by Amman Stock Exchange No. (99) dated 30/07/2018. In line with the decision taken by the said Extraordinary General Assembly, Aetna was allowed to conduct its due diligence and to perform the necessary audit and review of the Company’s records. The due diligence process resulted in observations and requirements required to be completed in order to complete the discussions and negotiations related to concluding and executing the deal, which have not been final-ized by end of 2018.
At the Company's operational level, taking into consideration the tough economic condi-tions, severe competition and our disciplined underwriting strategy based on which our company had to let go some loss making accounts, our Gross Written Premium for this year closed at JD 73 million with 8% drop from last year. Booking of additional technical and other provisions have resulted a net profit of JD 115,000 for the year.
The Company has maintained its share of 10 percent of the local market (in which 24 compa-nies are operating).
Motor insurance continues to experience sharp volatility in technical results due to higher frequency of accidents, rising average claim cost coupled with the irresponsible behavior in dealing with motor insurance claims by various parties that depleted the resources of local insurance companies in general. Such negative factors had a serious effect on JIC, resulting in technical losses in this branch amounting to JD 290,000 this year compared to JD550,000 losses last year in Jordan. The ongoing demand to liberate the Motor Third Party Liability insurance in Jordan has been and remains a major challenge for the insurance sector, but the decision is being delayed continuously in spite of the ongoing incurred losses sustained in this type of insurance to avoid imposing additional financial burdens on Jordanian citizens.
ReinsuranceOur disciplined underwriting policy which is based on proper risk analysis and also our professional claims handling management had a positive effect on achieving profits for our reinsurers, in addition to our excellent historical relations which are based on trust and credibility, all have enabled our company to renew its Reinsurance Treaties for the year 2019 with elitist reinsurance companies at expiring terms and conditions.
External BranchesThe insurance market in the United Arab Emirates continues to face larger difficulties and challenges compared to last year. Gross Written Premiums in regional branches amounted to JD 12.9 million, representing 17.7 percent of the total Company premiums.
Real Estate and Financial InvestmentsThe year 2018 witnessed a decrease in financial market activities in addition to unstable prices particularly in the Amman Stock Exchange, resulting in a continued conservative policy by the company regarding its activities in these markets while maintaining ownership of strategic, excellent shares in order to avert price fluctuations and maintain a portfolio within a limited margin of change. We hope that market conditions will improve and prosper in 2019.
The occupancy rates in the Company's rented buildings hovers around 74 percent, which is considered good in current market conditions. Their revenue represents a good income source for Company profits.
JIC continues to keep its real estate investments which represent the paramount guarantee and solid foundation for its solvency during the Company's life cycle. These real estate holdings' market value stands at JD 38 million based on evaluations by three registered and accredited real estate offices. This market value exceeds the book value of these real estate holdings by JD 18 million.
Future Plan1. Maintaining the Company's strategy of retaining its position in the local and regional markets through its disciplined underwriting policy.2. Continue to expand and simultaneously work at improving the operation of foreign branches.3. Maintain our policy of developing human resources with the purpose of maintaining high levels of professionality in customer service.4. Maintain strong relations with international and regional insurance and reinsurance companies based on mutual trust.5. Work at upgrading the Financial Strength Rating and the Issuer Credit Rating of the Company( Based on A.M. Best Company Rating) .
In conclusion, the Board of Directors wishes to express its gratitude and appreciation to all Company staff and workers who contributed to its success and the achievement of its objectives. We also like to thank our clients, agents, and reinsurance partners for their confidence and continued support.
We beseech the Almighty to guide us toward more success in serving our national economy under the leadership and guidance of His Majesty King Abdullah II Ibn Al-Hussein.
Chairman of the Board of Directors Othman Bdeir
His Royal HighnessCrown Prince Al Hussein Bin Abdullah IIHis Royal HighnessCrown Prince Al Hussein Bin Abdullah II
His MajestyKing Abdullah II Bin Al-HusseinHis MajestyKing Abdullah II Bin Al-Hussein
Letter from the Chairman
Branches
Board of Directors
Income Statement Information
Financial Statements
Notes to Financial Statements
13
16
17
18
21
38