Manama, January 2015 – Islamic International Rating Agency (IIRA) has assigned a national scale Takaful Financial Strength (TFS) rating of ‘A (jd)’ (Single A) to Islamic Insurance Company Jordan (IIC). Outlook on the assigned rating is ‘Stable’. The fiduciary score has been assessed in the range of ‘71-75’, reflecting adequate fiduciary standards. The fiduciary score is an aggregation of scores assigned to its two sub-sections i.e. Asset Manager Quality and Share'ah Governance.
IIC is the oldest Islamic and one of the most prominent insurance companies operating in Jordan, having a market share of 4%. The company also derives business synergies from its main sponsor, Jordan Islamic Bank (JIB), the country’s largest Islamic bank and part of Albaraka Banking Group (ABG). The company enjoys strong franchise in the local market and has generated steady business growth over its recent operating history.
Growth in gross contribution written by IIC has averaged ten percent over the past five years. The company has presence in both general and social Takaful segments. Overall both participants’ Takaful and shareholders’ fund have been profitable, and improving further in recent periods. Liquidity and profitability indicators of the company are also strong. Underwriting results vary amongst business lines, with social and marine segments being consistently positive, whereas motor and medical segments produce weak results. Regulated pricing and business generation under compulsory third party liability motor insurance have affected financial results of motor segment across industry.
