Fitch Ratings affirms Jordan French Insurance's rating

Fitch Ratings has affirmed Jordan French Insurance Company's (JOFICO) "BB-" financial strength rating. The outlook remains stable.

JOFICO is a mid-sized composite insurer which reported a turnover of JOD 38 million (USD 53 million) in 2023, which represents 5.2% of the market.

According to Fitch, the company's capitalization is in line with the rating assigned. The agency expects, however, that the company will comply with the new minimum capital requirements that will come into effect in 2025.

The Jordanian insurer's financial performance is considered weak but improving. This trend is illustrated by a clear recovery in the return on equity (ROE), which rose from -8.2% in 2022 to +1.4% in 2023. For its part, the combined ratio for 2023 is 98% compared to 104% in 2022.