Jordan International Insurance:

Aqaba Conference on Marine Insurance – New Risks and Challenges Marine Insurance Team

11th – 13th May - Aqaba, Jordan

AQABA CONFERENCE

Global Container Flows by Main Trades in 1995 Intra-Asia is already the biggest trade lane

2

AQABA CONFERENCE

Global Container Flows by Main Trades in 2015 Emerging Markets offer most attractive growth

3

AQABA CONFERENCE

Growth in the volume of merchandise trade & GDP Intra-Asia is already the biggest trade lane

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• Global economy is still recovering from the 2009 financial crisis, with shallow growth in both GDP and world merchandise trade

• Expected recovery in 2015 to historical 1993-2013 average growth rates

Annual % Change

AQABA CONFERENCE

Volume of world merchandise exports, 1990-2015 Intra-Asia is already the biggest trade lane

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• The gap between pre-crisis trend and current levels of world trade continues to widen, standing at 17% for 2013 and will rise to 19% by 2014

• This would place it further below the pre-crisis trend than it was in 2009 during the "great trade collapse".

AQABA CONFERENCE

Cargo Premiums vs Trade World Trade Values & Exports & Global Cargo Premiums

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• Global economy is still recovering from the 2009 financial crisis, with shallow growth in both GDP and world merchandise trade

• Expected recovery in 2015 to historical 1993-2013 average growth rates

AQABA CONFERENCE

World Top 10 Ports 1000 TEUs

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• Global container ports have grown from 472 mTEUs in 2009 to 651mTEUs in 2013

• Majority of Growth terminal capacity has been developing in Asia, with China representing 174mTEUs

8,700

11,100

11,190

10,260

10,502

11,980

21,040

18,250

25,866

25,002

13,010

13,641

15,309

15,520

17,351

17,686

22,352

23,278

32,240

33,617

Tianjin, China

Dubai, UAE

Guangzhou, China

Qingdao, China

Ningbo, China

Busan, Korea

Hong Kong, China

Shenzhen, China

Singapore, Singapore

Shanghai, China

2013 2009

134%

125%

128%

106%

148%

165%

151%

137%

123%

150%

X% Growth 2009 to 2013

Source: Containerisation International Year Book

AQABA CONFERENCE

Middle East Top 10 Ports 1000 TEUs

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• Regional container port throughput has been growing consistently over the last 5 years by 135%

• In Aqaba Container terminal volume in 2006 was 405,658 TEU while in the year 2013 it reached 872,809 a growth of 215%

123%

148%

124%

138%

184%

96%

212%

135%

189%

163%

X% Growth 2009 to 2013

Source: Containerisation International Year Book

844

799

1,227

1,222

3,490

1,836

2,750

3,301

3,091

11,100

1,378

1,508

1,659

2,588

3,340

3,378

3,800

4,100

4,561

13,641

Mersin, Turkey

Alexandria, Egypt

Dammam, Saudi Arabia

Tangier, Morocco

Salalah, Oman

Istanbul, Turkey

Sharjah, UAE

Port Said, Egypt

Jeddah, Saudi Arabia

Dubai, UAE

2013 2009

AQABA CONFERENCE

Global Cargo Premiums (2013) Regional Split of Cargo Premiums

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• Global Marine Premiums in 2013 declined from -1.7% in 2013 reaching $34.2 Bn.

• Cargo insurance represents 53.1%, Global Hull 25.0%, Offshore Energy 15.4% and Marine Liability 6.5%

44%

29%

13%

6%

5% 3%

Europe

Asia/Pacific

Latin America

North America

Middle East

Africa

Source: IUMI 2014

Total $18.2Bn in 2013 (- 0.3% growth over 2012)

AQABA CONFERENCE

Middle East Premiums (2013) Premiums split by Country

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• Middle East Cargo premiums have grown at a different rates due to political unrest and regional issues

• Leading the market in Cargo premiums has been UAE, Egypt and Saudi Arabia

33%

15%

14%

8%

5%

5%

5%

3%

3% 2%

2% 5%

United Arab Emirates

Egypt

Saudi Arabia

Qatar

Morocco

Algeria

Kuwait

Tunisia

Jordan

Lebanon

Oman

Other (Syria, Libya, Bahrain, Yemen, Iraq, Palestine)

Total $1.4B in 2013

COMPANY PROFILE

Middle East Risk Global Cargo Theft Risk - 2014

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• Regional turmoil in Syria and Iraq continues to pose significant risk to regional trade

• However, there is good news on Piracy off the Somalia coast. As at July 2014 the last successful hijack of a commercial merchant vessel was August 2012, there are still approximately two attempts per month

AQABA CONFERENCE

Technology in Marine Insurance

• JIIG is the second insurance company in the Middle East after global insurer Zurich to sign-on global software firm Oceanwide

• For the first time in Jordan, JIIG has developed a quote and bind system that allows a customer to insure goods by simply completing an online form

• The system can also be used to create a Certificate of Marine Insurance, which can be transferred together with the cargo

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First Arab Insurance company to innovate Marine Insurance Approach

AQABA CONFERENCE

Company History – Best Insurer 2015 Key Achievements and Developments

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1996:

Company Founded in

1996. Shareholder Equity JD2m

2000:

Equity doubles to JD4m. Scor

assigned treaty leader

2009:

Increased controls appoints Deloitte

2010:

Equity reaches JD22m. Reviews

Motor TPL

2011:

ERM initiation with EY internal

Audit. Implement KPIs

2012:

Exit Motor insurance. Automate

claims with CItibank

2013:

Swiss Re selected as

treaty leader

2014:

Online cargo certificates in Jordan. Equity reaches 24m

2015: Sage ERP.

Health App for 2nd opinions

Selected Best Jordan Insurer Company 2015

by MENA IR

• Strong franchise: Growing captive client base built over the last 18 years. Reputation for financial prudence, strong client relationships and best in class service

• Robust Balance Sheet: JIIG has consistently grown Shareholder Value through underwriting discipline and investment management

• Innovation and Service Quality: Company has been leading the implementation of technology solutions for insurance product development and business management