AM Best Affirms Credit Ratings of Jordan French Insurance Company Limited

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

The ratings reflect JOFICO’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).

JOFICO’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Offsetting factors in the assessment include JOFICO’s high levels of receivables, marginal liquidity position, and small capital base, which heightens the sensitivity of its solvency position to potential shocks. Additionally, the assessment factors in the company’s moderately high dependence on reinsurance, although the associated risk is mitigated partially by a reinsurance panel of good credit quality.

JOFICO has a track record of adequate operating performance, demonstrated by a five-year (2016-2020) weighted average return-on-equity ratio of 13.5%. The company’s operating performance is supported by its good underwriting profitability, with a five-year (2016-2020) weighted average combined ratio of 96.0%. In 2020, technical results improved to JOD 2.0 million (2019: JOD 1.8 million), primarily driven by lower claims frequency in the motor line of business following government restrictions imposed in response to the COVID-19 pandemic; this was partially offset by weakened results in the medical segment. AM Best expects the company to maintain a double-digit return-on-equity ratio over the medium term, supported by solid technical profitability.

JOFICO has a limited business profile as a mid-tier insurer in Jordan, ranking seventh in the local insurance market based on 2019 gross written premiums. Although the company’s competitive position benefits from a number of long-term client relationships, the insurance market in Jordan is relatively small by international standards with limited growth opportunities.

JOFICO’s ERM framework is developing, with control and oversight of key risks conducted on a silo basis, and typically reactive in nature. Despite this, JOFICO’s risk management capabilities typically are aligned with the profile of its key risks.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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

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Romeo Berti, ACA, CMA
Financial Analyst
+44 20 7397 0297

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