Arab Orient Insurance posts profit of $5.642m in 2010

02/03/2011 00:00 AST

The Arab Orient Insurance Company, a subsidiary of the Kuwait-based Gulf Insurance Company (GIC), posted JD4m ($5.642m) in profits before the deduction of taxes for the year ended December 31, 2010, representing a 27% increase over 2009.

GIC, a member of the Kipco Group, holds an 88.7% stake in Arab Orient, one of the leading companies in the Jordanian insurance sector.

Net profit after the deduction of taxes and provisions came to JD3.1m ($4.372m), a growth of 34.8% compared to the previous year. New shareholder equity increased to JD19.96m ($28.152m) compared to JD16.9m ($23.836m) in 2009, a growth of 17.5%. Meanwhile, the company's total assets increase to JD51.5m ($72.638m) compared to JD41.5m ($58.533m) in 2009, a growth of 24%.

The company's closing financial statements indicated a growth in the volume of subscription installments by 20% to reach JD53.3m ($75.176m) compared to JD44.5m ($62.764m) for 2009. Technical allocations also increased from JD13.5m ($19.041m) to JD19.9m ($28.068m) in 2010, a growth of 47%. As for total traded assets and investments, they came to JD45.5m ($64.175m) with cash and cash deposits accounting for 46% of these assets. Collected cash in 2010 came to JD46m ($64.880m).

Mr Khaled Al Hassan, Chairman of Arab Orient, expressed his pleasure with the technical and financial performance of the company. He noted that the growth rates recorded by the company surpassed all estimates, adding that this was consolidated with the raising of the company's rating by A.M. Best to B++ with a stable outlook.

Meanwhile, Mr. Isam Abdulkhaliq, Chief Executive Officer, said that the company made a qualitative leap at all levels in 2010, in terms of balance and diversity in the company's insurance portfolio.

He noted that the realized subscriptions in fire and general accidents insurance came to JD12.7m ($17.912m).

He also said that the company focused during the year on specialized branches of insurance that require advanced technical knowledge and strong ties with international reinsurance companies.

He added that the company has gone a long way in IT development, which has increased the efficiency of work at Arab Orient. Several directorates and departments within the company were developed to keep up with the great growth in volume of operations. This includes the Data Bank Directorate, the Banking Insurance and Indirect Business Directorates, as well as the Customer Service and Care Directorate, and the Telemarketing Department which is one of the important aspects in maintaining the distinguished market status that the company holds today.

The Arab Orient Insurance Company is the number one insurance company in the Jordanian market, and holds 13% of the market share in terms of subscribed installments. The company was awarded several international and local prizes in 2010. The number of clients benefitting from the company's medical insurance services surpasses 140,000, tended to by some 2,500 pharmacies, hospitals and specialized medical clinics.

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