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A.M. Best Special Report: Jordan and Lebanon Lead Growth In Levant Region's Insurance Markets

The report, "Jordan and Lebanon Lead Growth in Levant Region's Insurance Markets," states Lebanon is benefiting from a period of relative political stability, while new compulsory covers should increase premium volume in Jordan. This potential growth is supported by domestic insurance expertise, with a large number of professionals found in both markets.

Jordan and Lebanon each have the potential to enjoy economic expansion, although the report also identifies a number of challenges facing the two countries, including difficulties small insurers are confronting in growing their businesses and achieving technical profits in the wake of intense competition. Other challenges for insurers in both countries include volatile investment portfolios, and to an extent, instability in the Arab world.

Mahesh Mistry, Associate Director of Analytics, said: "A.M. Best Co. believes insurers in Lebanon and Jordan face an environment that remains challenging and competitive, given the fragmented nature of both markets. However, both insurance markets are expected to remain dynamic, with opportunities for domestic insurers as the markets mature."

The report looks at the drivers and challenges facing each insurance market, as well as topics that include regulatory development, the use of reinsurance and the life insurance market. It also discusses Jordan's aspirations to become a regional insurance centre and recent takeover activity in Lebanon.

Yvette Essen, Director of Industry Research - Europe & Emerging Markets, said: "Market conditions theoretically pave the way for consolidation, as markets are not only open to foreign investment but are also crowded. However, as insurers are often family owned, genuine merger opportunities are limited because families are reluctant to relinquish control of their enterprises."

To access a copy of this report, please visit www.ambest.com/press/LevantMarketReview.pdf.

A.M. Best Europe - Rating Services Limited is a subsidiary of A.M. Best Company. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright (c) 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

A.M. Best Co.
Mahesh Mistry, +(44) 20 7397 0325
Associate Director, Analytics
mahesh.mistry@ambest.com
or
Yvette Essen, +(44) 20 7397 0322
Director, Industry Research -
Europe and Emerging Markets
yvette.essen@ambest.com
or
Chris Sharkey, +(1) 908 439 2200, ext. 5159
Business Analyst
christopher.sharkey@ambest.com
or
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com