AM Best Affirms Credit Ratings of Middle East Insurance Company Plc

Business Wire

LONDON--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” (Fair) of Middle East Insurance Company Plc (MEICO) (Jordan). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect MEICO’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

MEICO’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR). Concentration in the company’s equity and real estate portfolios remains a significant driver of capital requirements. The balance sheet strength assessment considers MEICO’s unleveraged balance sheet, adequate liquidity, sound reserving practices and moderate underwriting leverage. The holding company assessment stemming from MEICO’s parent, Middle East Holding Company Plc (MEHC), is considered neutral, reflecting MEHC’s very strong level of risk-adjusted capitalisation, as measured by BCAR, with its solvency drivers similar to MEICO’s. MEHC had low financial leverage with strong interest coverage at year-end 2025.

MEICO has a track record of moderate operating profitability, demonstrated by return-on-equity ratios of approximately 5% over the past five years (2021-2025). MEICO’s underwriting performance has been impacted adversely by the results of its motor third-party liability line of business, which is tariffed and unprofitable for Jordan’s insurance market, translating into modest overall underwriting losses between 2021-2023. However, the company maintained underwriting discipline in other business lines, leading to a steady improvement in underwriting results with MEICO reporting combined ratios of 99.6% in 2024 and 97.8% in 2025, as calculated by AM Best. Despite some volatility, investment performance has contributed positively to MEICO’s operating results in recent years. MEICO’s exit from Jordan’s motor market is expected to improve underwriting performance.

MEICO is a small composite Jordanian insurer. MEICO’s prospective market profile is expected to decline following the company’s exit from the motor business in early 2026. Nevertheless, the company’s business profile is expected to remain in line with the limited assessment supported by profitable growth in other lines of business over the medium term.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.