Established in 2007, Solidarity - First Insurance Company is a relatively fresh face in Jordan’s crowded insurance market. However, in a short period of time, the company has gone from newcomer to a market leader, climbing from 25th place in 2008 to 4th place today in terms of market share.
FIC’s financial standing has deeply solidified its position as a market leader. Following the acquisition and the merger with Yarmouk Insurance Company, the company increased its paid-up capital from JOD 24 million to JOD 28 million, maintaining its position as the second highest capitalized insurer in the Kingdom.
International rating agency A.M. Best has affirmed the Financial Strength Rating (FSR) of B++ (Good) for the Eighth consecutive year, and upgraded the Long-Term Issuer Credit Ratings to “bbb” with a positive rather than stable outlook. The outlook for the FSR remained stable.
Upgrading and affirming these credit ratings reflect the company’s balance sheet strength, according to A.M. Best’s ratings, benefiting from a low level of underwriting leverage, a reinsurance program of good credit quality, conservative investment profile and Appropriate Risk Management.
The company’s merger with Yarmouk Insurance Company marked a major turning point. After all, Yarmouk Insurance had been operating in Jordan for 35 years and enjoyed the highest solvency margin. Not only did the deal, which was finalized in 2016, prove crucial for FIC expansion, but it was also a shot in the arm for the Kingdom’s feeble and fragmented insurance market, where no comparable merger had taken place in more than 25 years, even as many companies face insolvency.