Amman-based International General Insurance (IGI) yielded a net profit of $721,426 during its first year of operations, which ended in March 2003. The company’s gross written premium was $10.6 million, which produced a positive underwriting result of $236,391.
The underwriting result was calculated by taking an Amount for Incurred But not Reported Losses (IBNR) equal to 100 percent of incurred losses, producing a encouraging underwriting result. Investment income for the year was $1.266 million, considered low by the company, as a result of a substantially high ratio of cash deposits. Total assets stood at $59.5 million.
“Our net income results were excellent for our first year of operations. Usually companies budget for losses during this period,” said Chairman and CEO of IGI, Wasef S. Jabsheh in an exclusive interview with menareport.com.
When asked about the company’s high IBNR rate, Jabsheh explained “the decision was taken as a precautionary measure for our first year of operations. It is always healthier to have a higher reserve than a lower reserve in the even of an unpleasant surprise.” He stated that IGI’s $32.7 million in cash deposits is a significantly higher sum than deposits held by other firms in the local insurance market, generated by the company’s capital base and premiums.
Regarding the future, Jabsheh is very optimistic about the company’s operations. “We hope that for 2003-2004 profit and gross premium figures will jump.” When asked about the current political situation in the Middle and its affect on the local insurance market, the CEO assured that “IGI is more active on an international level and so the chances of being affected by political developments in Iraq and the Middle East are slight.”
With an incorporation date of October 4, 2001, IGI commenced underwriting operations on March 1, 2002. IGI writes worldwide facultative direct and reinsurance business, with its principal classes being energy, marine, and commercial/industrial property. In July 2002, IGI completed the increase of the company’s capital and surplus by an amount of $25 million. The total capital and surplus of the company now stands in excess of $ 50 million. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
