AM Best Affirms Credit Ratings of International General Insurance Holdings Ltd. and Its Subsidiaries

Rhea-AI Summary

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of "a" (Excellent) for International General Insurance Co. (IGICL), International General Insurance Company (UK) (IGIUK), and International General Insurance Company (Europe) (IGI Europe). The Long-Term ICR of "bbb" (Good) for International General Insurance Holdings (IGI) [NASDAQ: IGIC] was also affirmed. The outlook for these ratings is stable.

The ratings reflect IGI's very strong balance sheet strength, strong operating performance, business profile, and appropriate enterprise risk management. IGI's risk-adjusted capitalisation is assessed at the strongest level, supported by a strong liquidity position and conservative investment portfolio. The company has demonstrated strong profitability with a five-year (2019-2023) weighted average return-on-equity ratio of 16% and a combined ratio below 85%.

Positive

• Financial Strength Rating affirmed at A (Excellent) for IGICL, IGIUK, and IGI Europe
• Very strong balance sheet strength assessment
• Risk-adjusted capitalisation at the strongest level (BCAR)
• Strong liquidity position and conservative investment portfolio
• Five-year (2019-2023) weighted average return-on-equity ratio of 16%
• Five-year (2019-2023) weighted average combined ratio below 85%
• H1 2024 combined ratio of 77.7%
• Well-diversified portfolio by line of business and geography
• Strong growth over the last five years (2019-2023)

Negative

• None.

Insights

Insurance Industry Analyst

AM Best's affirmation of International General Insurance Holdings (IGI) and its subsidiaries' ratings is a strong positive signal for the company. The <b>A (Excellent)</b> Financial Strength Rating and <b>"a" (Excellent)</b> Long-Term Issuer Credit Ratings indicate a robust financial position. Key strengths include:<p>1. <b>Very strong balance sheet</b> with risk-adjusted capitalization at the strongest level (BCAR)</p><p>2. <b>Strong operating performance</b> with a 5-year average ROE of <percent>16%</percent> and combined ratio below <percent>85%</percent></p><p>3. <b>Diversified portfolio</b> by line of business and geography</p><p>4. <b>Conservative investment approach</b> and strong liquidity</p>These factors suggest IGI is well-positioned to maintain its market position and potentially expand, benefiting both the company and its investors in the long term.

Financial Risk Analyst

While the overall assessment is positive, it's important to consider potential risks:<p>1. <b> business profile</b>: This could expose IGI to concentration risks in certain markets or lines of business.</p><p>2. <b>Reliance on reserve releases</b>: The strong performance has been supported by releases of prior year reserves, which may not be sustainable long-term.</p><p>3. <b>Rapid growth</b>: The strong growth over the last five years could potentially strain operational capacities if not managed carefully.</p><p>4. <b>Market conditions</b>: The insurance industry is cyclical and current favorable conditions may not persist indefinitely.</p>Investors should monitor these aspects alongside the company's strong fundamentals to make informed decisions.

LONDON--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of International General Insurance Co. Ltd., (IGICL) (Bermuda), International General Insurance Company (UK) Limited (IGIUK) (United Kingdom) and International General Insurance Company (Europe) Ltd. (IGI Europe) (Malta). Concurrently, AM Best has affirmed the Long-Term ICR of “bbb” (Good) of International General Insurance Holdings Ltd. (IGI) (Bermuda) [NASDAQ: IGIC]. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect IGI’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. The ratings of IGICL, IGIUK and IGI Europe reflect their strategic importance to IGI.

IGI’s balance sheet strength assessment is underpinned by its consolidated risk-adjusted capitalisation assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The group’s balance sheet strength is further supported by its strong liquidity position and conservative investment portfolio. IGI does not have any debt leverage and financial flexibility is enhanced through its listing on the Nasdaq.

IGI has a track record of strong operating performance, illustrated by a five-year (2019-2023) weighted average return-on-equity ratio of 16%. IGI’s performance has been underpinned by robust underwriting performance, demonstrated by a five-year (2019-2023) weighted average combined ratio marginally below 85%, which has continued into 2024 to-date (H1 2024 combined ratio of 77.7%). Over this period, results have been supported by releases of prior year reserves. Prospectively, the group is expected to maintain its strong profitability, supported by its selective underwriting approach and good rate adequacy in its key segments.

IGI maintains a well-diversified portfolio by line of business and geography. The group has been expanding its business volumes in recent periods, evidenced by strong growth over the last five years (2019-2023). AM Best expects IGI to achieve further growth over the medium term while maintaining its strong underwriting discipline.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241018988765/en/

Dale Kirby

Senior Financial Analyst

+44 20 7397 0276

dale.kirby@ambest.com



Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com



Tim Prince

Director, Analytics

+44 20 7397 0320

timothy.prince@ambest.com



Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best

FAQ

What is the Financial Strength Rating of International General Insurance Co. (IGICL)?

AM Best has affirmed the Financial Strength Rating of A (Excellent) for International General Insurance Co. (IGICL).

What is the Long-Term Issuer Credit Rating for International General Insurance Holdings (IGIC)?

AM Best has affirmed the Long-Term Issuer Credit Rating of "bbb" (Good) for International General Insurance Holdings (IGI) [NASDAQ: IGIC].

What is IGI's five-year (2019-2023) weighted average return-on-equity ratio?

IGI has demonstrated a five-year (2019-2023) weighted average return-on-equity ratio of 16%.

What was IGI's combined ratio for H1 2024?

IGI reported a combined ratio of 77.7% for H1 2024.