By : Nedal Zubeidi
Jordan Daily – Gulf Insurance Group – Jordan (GIG – Jordan) has been upgraded by global credit rating agency AM Best, with its long-term issuer credit rating raised from “bbb+” (Good) to “a-” (Excellent) and its financial strength rating improved from “B++” (Good) to “A-” (Excellent). Both ratings carry a stable outlook, making GIG – Jordan the highest-rated insurance company in Jordan’s local market and the first to achieve this level of recognition.
AM Best cited the company’s robust financial position, strong operational performance, diversified business, and sound risk management practices as key drivers behind the upgrade. GIG – Jordan’s capital adequacy, leadership in the local insurance market, and positive investment performance were also highlighted.
The ratings reflect the support GIG – Jordan receives from its parent, Gulf Insurance Group, underscoring its strategic importance to the group.
Chairman Nasser Lozi praised the achievement, attributing it to the company’s hardworking team and the backing from Gulf Insurance Group and Fairfax Financial Holdings.
CEO Dr. Ali Wazani stated that the “A-” rating enhances the company’s competitive position and strengthens its ability to serve its clients with greater insurance protection.
Founded in 1899, AM Best is the oldest credit rating agency specializing in the insurance and reinsurance sectors. It is worth noting that Gulf Insurance Group – Jordan received its first credit rating from AM Best in 2006.
In addition to the rating upgrade, GIG – Jordan reported strong financial results for the third quarter (Q3) of 2024, driven by continued growth in revenues and profitability.
GIG – Jordan posted revenues of JOD 8.34 million for the nine months ending September 30, 2024, up from JOD 6.79 million in the same period in 2023, reflecting a 22.8% increase year-on-year.
Revenues from insurance contracts reached JOD 92.48 million, compared to JOD 81.42 million in Q3 2023, demonstrating solid performance in underwriting activities.The net results from insurance and reinsurance contracts totaled JOD 6.43 million, slightly improving from JOD 6.01 million in the previous year, reflecting stable operating performance.
The company posted a net gain of JOD 496,486 from financial assets and investments, a reversal from a loss of JOD 119,145 in Q3 2023, signaling a recovery in its investment portfolio.
GIG – Jordan’s profit before tax from continuing operations stood at JOD 6.81 million, up 25.3% from JOD 5.43 million in Q3 2023, driven by improved underwriting results and investment gains.
The company reported a net profit of JOD 6.03 million for the nine-month period, compared to JOD 5.36 million in the prior year, reflecting consistent profitability despite market volatility.
GIG – Jordan’s performance reflects its strategic focus on strengthening its financial position, improving operational efficiency, and maintaining its leadership in the Jordanian insurance market. The combination of an upgraded credit rating and strong financial results underscores the company’s ongoing success in the competitive insurance sector.
