ratings

MEICO Secures BBB Rating

Standard & Poor’s issues ratings boost for Jordanian insurance firm.

Jordan-based Middle East Insurance Co of Jordan (MEICO) has secured a “BBB” long-term counterparty credit and insurer financial strength rating from Standard Poor’s. “The ratings reflect the good business position of the company in its domestic market, as well as its very good financial profile relative to its liabilities and investment risks,” said S&P’s credit analyst David Anthony. “We expect capitalisation and financial flexibility to remain at least good even if, as expected, the company bids to acquire some of its smaller local competitors.”

“The company’s technical expertise and service quality is particularly recognised in the area of commercial and industrial lines, where it is a leader in marine and transport and also group life, property, liability and, to a more limited extent, group medical,” said Anthony. “In the somewhat overcrowded, highly competitive, but nonetheless in our view effectively regulated Jordanian domestic market of 28 licensed insurers, MEICO is the country’s second-largest insurer by capital, and the fourth-largest by gross premium income (JD21.8m), enjoying a 6.5 per cent market share,” he added.

“We expect MEICO to maintain its position as one of the leading domestic insurers with an approximately 12 per cent year-on-year increase in net premium volumes and sustainable underwriting profits reflected in net combined ratios in, at worst, the low-to-mid 90 per cent range.” Anthony added.