Central Bank of Jordan Circular on Reinsurance Arrangements and Programs

In the Name of Allah, the Most Gracious, the Most Merciful

[Logo of the Central Bank of Jordan]

Reference No.: 9786 / 2 / 17
Date: 19 / 11 / 1443 AH
Corresponding to: 19 / 6 / 2022 AD

Dear Reinsurance Brokers,

Subject: Reinsurance Arrangements and Programs

Greetings,

With reference to the above subject and regarding the reinsurance arrangements and programs implemented on behalf of insurance companies operating in Jordan, please confirm your compliance with the following:

1. The necessity to deal exclusively with classified reinsurance companies, in accordance with the provisions of Paragraph (a) of Article No. (5) of the Reinsurance Standards Instructions No. (4) of 2002 and its amendments, which stipulates that "The company is committed to reinsuring each of its insurance contracts with reinsurers classified in the First and Second Groups." This is according to the credit classification mentioned in Decision No. (5) of 2002, part of the guidelines for the Solvency Margin Instructions, as shown below:

AM Best	Moody's	Standard and Poor's
A++ & A+ Superior	Aaa Exceptional	AAA Extremely Strong	First Group
A & A- Excellent	Aa Excellent	AA Very Strong
B++ & B+ Good	A Good	A Strong	Second Group
	Baa Adequate	BBB Good

---

In the Name of Allah, the Most Gracious, the Most Merciful

[Logo of the Central Bank of Jordan]

2. The prohibition of dealing with unlicensed underwriting agents by the Central Bank, in accordance with the provisions of Paragraph (a) of Article (4) of the Instructions for Licensing Underwriting Agents and Regulating Their Work, Amendments, and Responsibilities No. (4) of 2010 and its amendments, which states: "No person shall practice the work of an underwriting agent in the Kingdom or through it unless they obtain a license from the Central Bank in accordance with the conditions specified under the provisions of these Instructions and the decisions issued pursuant to them, under penalty of legal responsibility."

Please accept our highest respect,

The Governor
Dr. Adel Al-Sharkas

Copy: Dear Insurance Companies

---

P.O. Box 37, Amman 11118 - Jordan • Phone: 4630301 • Fax: 4638889, 4639730, 461330 e-mail: info@cbj.gov.jo website: www.cbj.gov.jo

---