AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of International General Insurance Co. Ltd., (IGICL) (Bermuda) and International General Insurance Company (UK) Limited (IGIUK) (United Kingdom). Concurrently, the rating of International General Insurance Holdings Limited (IGI) (United Arab Emirates), now an intermediary holding company, has been withdrawn at the company’s request. The outlook of these Credit Ratings (ratings) is stable.
At the same time, AM Best has assigned a Long-Term ICR of “bbb” to International General Insurance Holdings Limited (IGIC) (Bermuda). The outlook assigned to this rating is stable.
The ratings of IGI reflect its balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
On 17 March 2020, IGI and Tiberius Acquisition Corporation (Tiberius) announced the completion of their business combination. As part of the combination agreement, IGI exchanged its shares for common shares of IGIC, becoming a wholly owned subsidiary. IGIC is a new public company, listed on the Nasdaq, and is now the ultimate parent of the group. Tiberius and IGI raised approximately USD 146 million as part of the transaction, of which USD 41 million was added to IGI’s balance sheet.
IGI’s strong operating results have been underpinned by robust underwriting performance over the long term. However, the company’s performance is affected by foreign exchange movements, largely through exposure to GBP-denominated business from IGI’s growing U.K. book of business. The company reported a five-year average combined ratio of 92% (2015-2019), despite the impact of catastrophe losses in 2017. AM Best views IGI’s underwriting discipline as a key factor supporting its good financial results and expects the company to report strong, albeit potentially volatile, profits in prospective years.
IGI’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its good liquidity and reinsurance panel of good credit quality. The company’s recent listing on the Nasdaq enhances its financial flexibility.
IGI’s business profile is well-diversified by line of business and geography. AM Best expects the company to achieve modest growth over the medium to long term, whilst maintaining a focus on underwriting discipline. Top-line growth of approximately 16% was reported in 2019, with gross written premium reaching USD 349 million, driven by the addition of new products and an improving pricing environment. IGI’s ERM framework is well-developed, and its risk management capabilities are aligned appropriately with its risk profile.
The ratings of IGICL and IGIUK reflect their strategic importance to IGI. They are fundamental to IGI’s overall strategy and are integrated with the group through shared management functions and an internal reinsurance programme.
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 media use of Best’s
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