IGI Increases its Repurchase Authorization to 7.5 Million Common Shares

Rhea-AI Summary

International General Insurance Holdings (NASDAQ: IGIC) announced an increase in its share repurchase authorization to 7.5 million common shares. This represents an additional 2.5 million shares over the previously authorized 5 million shares from May 2022. As of June 10, 2024, IGI had 475,203 shares left under the previous authorization. With the new increase, the company now has 2,975,203 shares available for repurchase. These repurchases, subject to market conditions and legal requirements, may occur in various forms, including open market and private transactions.

Positive

• Increased share repurchase authorization to 7.5 million shares.
• Additional 2.5 million shares added to the previous authorization of 5 million shares.
• Remaining 2,975,203 shares available for repurchase, promoting shareholder value.
• Repurchase flexibility in open market, private transactions, and block trades.

Negative

• Repurchases are subject to market conditions which may delay or limit execution.
• Company had only 475,203 shares left from the prior authorization as of June 10, 2024.

Insights

Financial Analyst

IGI's decision to increase its share repurchase authorization to 7.5 million shares reflects a strong signal of confidence from the company’s management in its financial health and future prospects. A share repurchase program can often indicate that the company believes its shares are undervalued and by buying back shares, it can provide support to the stock price.

In the short-term, this announcement may lead to upward pressure on the stock as buying interest increases. For retail investors, this move could be seen as a positive indicator, suggesting that the company is utilizing its excess cash to return value to shareholders instead of investing in new projects. However, it's important to consider the company's long-term growth prospects and whether the repurchase will significantly impact its financial flexibility.

IGI's remaining authorization of approximately 2.98 million shares suggests that the company is committed to this strategy but leaves room for discretion based on market conditions and other strategic needs. Investors should monitor the pace of these repurchases and any subsequent announcements that may affect the valuation of the stock.

Market Research Analyst

From a broader market perspective, the increased share repurchase authorization could be seen as a strategic move to bolster investor confidence in a potentially volatile market environment. Share buybacks often lead to a reduction in shares outstanding, which can enhance earnings per share (EPS) and typically makes the remaining shares more valuable.

For retail investors, it is essential to understand that while buybacks can be beneficial, they are not a guarantee of future stock performance. The actual impact will depend on how efficiently IGI can execute these repurchases and the overall market conditions. Moreover, it's critical to compare IGI's buyback strategy with industry peers to gauge its relative attractiveness.

Additionally, investors need to consider the opportunity cost of this capital allocation. Funds used for buybacks are not available for other growth initiatives, such as acquisitions or new product development, which could potentially yield higher returns in the long run.

HAMILTON, Bermuda--(BUSINESS WIRE)-- International General Insurance Holdings Ltd. (“IGI” or the “Company”) (NASDAQ: IGIC) today announced that its Board of Directors has increased the Company’s existing share repurchase authorization to 7.5 million shares of its issued and outstanding common stock. This represents an increase of 2.5 million common shares to its prior 5 million common share authorization which was announced in May 2022.

As of the close of the US financial markets on June 10, 2024, the Company had 475,203 shares remaining under the 5 million share repurchase authorization, and with the increase of 2.5 million shares, now has a total of 2,975,203 common shares remaining under the 7.5 million common share repurchase authorization.

Repurchases, which are subject to market conditions, other business considerations and applicable legal requirements, may be made at prevailing prices in the open market, in privately negotiated transactions, block trades, or other transactions. The timing and actual number of shares to be repurchased will depend on a variety of factors, including the factors described below under “Forward-Looking Statements.”

About IGI:

IGI is an international specialty risks commercial insurer and reinsurer underwriting a diverse portfolio of specialty lines. Established in 2001, IGI has a worldwide portfolio of energy, property, general aviation, construction & engineering, ports & terminals, marine cargo, marine trades, contingency, political violence, financial institutions, general third-party liability (casualty), legal expenses, professional indemnity, D&O, marine liability and reinsurance treaty business. Registered in Bermuda, with operations in Bermuda, London, Malta, Dubai, Amman, Oslo, Kuala Lumpur and Casablanca, IGI aims to deliver outstanding levels of service to clients and brokers. IGI is rated “A” (Excellent)/Stable by AM Best and “A-”(Strong)/Stable by S&P Global Ratings. For more information about IGI, please visit www.iginsure.com.

Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the business of IGI may differ from its actual results and, consequently, you should not rely on forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” “commitment,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements contained in this press release may include, but are not limited to, our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, the outcome of our strategic initiatives, our expectations regarding pricing and other market conditions, and our growth prospects. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside of the control of IGI and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) changes in demand for IGI’s services together with the possibility that IGI may be adversely affected by other economic, business, and/or competitive factors globally and in the regions in which it operates; (2) competition, the ability of IGI to grow and manage growth profitably and IGI’s ability to retain its key employees; (3) changes in applicable laws or regulations; (4) the outcome of any legal proceedings that may be instituted against the Company; (5) the effects of the hostilities between Russia and Ukraine and the sanctions imposed on Russia by the United States, European Union, United Kingdom and others; (6) the effects of the war between Israel and Hamas; (7) the inability to maintain the listing of the Company’s common shares on Nasdaq; and (8) other risks and uncertainties indicated in IGI’s filings with the SEC. The foregoing list of factors is not exclusive. In addition, forward-looking statements are inherently based on various estimates and assumptions that are subject to the judgment of those preparing them and are also subject to significant economic, competitive, industry and other uncertainties and contingencies, all of which are difficult or impossible to predict and many of which are beyond the control of IGI. There can be no assurance that IGI’s financial condition or results of operations will be consistent with those set forth in such forward-looking statements. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. IGI does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based except to the extent that is required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240611684135/en/

Investors:

Robin Sidders, Head of Investor Relations

M: + 44 (0) 7384 514785

Email: robin.sidders@iginsure.com



Media:

Aaida Abu Jaber, AVP PR & Marketing

T: +96265662082 Ext. 407

M: +962770415540

Email: aaida.abujaber@iginsure.com

Source: International General Insurance Holdings Ltd.

FAQ

What is the new total of IGIC's share repurchase authorization?

IGIC's new share repurchase authorization totals 7.5 million common shares.

How many additional shares were authorized for repurchase by IGIC?

An additional 2.5 million common shares were authorized for repurchase by IGIC.

When was the previous share repurchase authorization announced by IGIC?

The previous share repurchase authorization by IGIC was announced in May 2022.

How many shares did IGIC have remaining under the previous authorization as of June 10, 2024?

As of June 10, 2024, IGIC had 475,203 shares remaining under the previous authorization.

What factors will affect IGIC's share repurchase timing and quantity?

Factors affecting IGIC's share repurchase timing and quantity include market conditions, business considerations, and legal requirements.