The Central Bank of Jordan (CBJ) issued its decision to liquidate Arab Union International Insurance company (AUII) as of 26 January 2025, according to a statement the Bank has issued earlier this week. The CBJ said that the decision aims at protecting the rights of policyholders and beneficiaries of insurance contracts.
The CBJ has appointed a liquidator to undertake the liquidation process, supervise the AUII’s business; preserve its funds, assets and rights; represent it before others; and sign contracts on its behalf until the liquidation procedures are completed, in accordance with the provisions of Insurance Regulation Law No. 12 of 2021.
The statement added that this decision came after the CBJ conducted a series of follow-ups with the company and took appropriate measures against it because of its exposure to conditions that fundamentally affect its financial position and prevent it from continuing to carry out its business and its violations of the provisions of Insurance Regulation Law No. 12 of 2021. It also mentioned that the CBJ moved following complaints received from insured persons and beneficiaries.
The CBJ has previously prevented the insurer from writing compulsory (motor) insurance contracts pursuant to the decision of the Governor of CBJ issued on 12 December 2023. Following that, the insurer was prevented from writing additional insurance contracts within the motor line of business, pursuant to the decision of the Governor of CBJ issued on 7 August 2024.
On 30 October 2024, the board of directors of AUII was dissolved and an interim management committee was appointed pursuant to the decision of the CBJ no.195 of 2024. “The company had not addressed its financial and administrative problems, and after attempting all the required solutions and corrective procedures, a decision was issued to liquidate it,” said the CBJ statement.
Established in 1976, AUII is a non-life public shareholding insurance company with a capital base of JOD8m ($11.3m).