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A.M. Best Removes From Under Review With Positive Implications and Affirms Credit Ratings of First Insurance Company

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A.M. Best Removes From Under Review With Positive Implications and Affirms Credit Ratings of First Insurance Company

A.M. Best has removed from under review with positive implications and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "bbb" of First Insurance Co. Ltd. (FIC) (Jordan). The outlook assigned to the FSR is stable, while the outlook assigned to the Long-Term ICR is positive.

The Credit Ratings (ratings) reflect FIC's balance sheet strength, which A.M. Best categorises as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also benefit from rating enhancement, reflecting FIC's strategic importance to its ultimate parent company, Solidarity Group Holding BSC (c) (SGH), a leading provider of Islamic insurance solutions in Bahrain and Jordan. The positive Long-Term ICR outlook reflects the potential benefits of an enhanced business profile of the Solidarity group that would result from the successful integration of the recently acquired Al Ahlia Insurance Co. BSC (AAIC) into its operations.

FIC maintains a very strong balance sheet, benefiting from a low level of underwriting leverage, a reinsurance programme of good credit quality and a conservative investment profile. The company benefits from a good market position as the fourth-largest insurer in Jordan with gross written premium of JOD 37.7 million in 2016, and, following its successful merger with Yarmouk Insurance in 2015, continues to grow successfully at a faster pace than its competitors (+9% in 2016). FIC operates solely within Jordan and therefore, its business profile remains constrained to this relatively small market.