First Insurance takes Yarmouk into its fold

AMMAN — First Insurance is now the corporate successor of Yarmouk Insurance after shareholders of both entities agreed a final merger last week.

Ali Wazani, executive president of First Insurance, told the Jordan Securities Commission in a disclosure that shareholders gave final  approval to the merger during an extraordinary general assembly meeting.

He wrote that the shareholders endorsed the re-evaluation of assets and liabilities, as well as the opening balance sheet of the company resulting from the merger.

Wazani said the articles of association and bylaws of the merging company were modified to show that the authorised and paid-up capital have become JD28 million spread over 28 million share at JD1 par value.

The same steps were taken by the shareholders of Yarmouk Insurance who, during an extraordinary general assembly meeting, unanimously gave final  approval to the merger, endorsed the re-evaluation of assets and liabilities as well as the opening balance sheet of the company resulting from the merger.

Yarmouk Insurance Deputy General Manager Mohammed Saleh Samaha also told the JSC in a disclosure that the shareholders also approved the updated articles of association and bylaws of the merging company.

According to a report put forward by a committee to determine the financial position of the two companies, the fair value of First Insurance was found to be JD28.56 million, equivalent to JD1.19 per share.

The fair value of Yarmouk Insurance was found to be JD10.24 million, equivalent to JD1.28 per share.

Consequently, the fair value of the two companies was set at JD38.8 million.

"As the capital of the company resulting from the merger was fixed at JD28 million, in accordance with  the requirement of the Insurance Administration [at the Ministry of Industry and Trade], the share value of the merging company amounts to JD1.39," the committee indicated in its report.

The opening balance sheet of the company resulting from the merger as of July 1, 2015 showed total assets at JD48.5 million, JD30.3 million were investments.

Deposits at banks totalled to JD12.8 million, real estate amounted to JD8.9 million, and financial assets at fair value came at JD8.3 million.

Other assets included JD7.3 million in net receivables, JD4 million in cash at hand and at banks, JD2.6 million in net property and equipment, and JD2.2 million in notes receivables and cheques under collection.

Liabilities totaled JD18.4 million, JD11.1 million of which were related to insurance contracts such as net provisions for claims and for unearned premiums.

The company resulting from the merger will engage in Islamic Takaful insurance within the general insurance activities as well as life insurance business.