A.M. Best Affirms Ratings of International General Insurance Holdings Limited and its Subsidiaries
LONDON--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating (ICR) of “a-” of International General Insurance Company Limited (IGI) (Bermuda) and International General Insurance Company (UK) Limited (IGIUK) (United Kingdom). A.M. Best also has affirmed the ICR of “bbb-” of International General Insurance Holdings Limited (IGIH) (United Arab Emirates). The outlook for all ratings remains stable.
The ratings of IGI reflect its strong risk-adjusted capitalisation, consistently robust technical performance and good level of business diversification.
The ratings of IGIUK benefit from rating enhancement from IGI, given its strategic importance to the group. IGIUK is seen as fundamental to IGI’s overall strategy, and is integrated into the group through shared management functions and its intragroup reinsurance programme. Furthermore, IGIUK’s financial solvency is explicitly guaranteed by IGI. Standard notching is applied to IGIH, the group holding company, in line with A.M. Best rating methodology.
IGI maintains strong risk-adjusted capitalisation, benefitting from a solid reinsurance panel and a conservative investment portfolio. IGI’s capitalisation is expected to be further strengthened by good earnings retention and by maintaining a sufficient buffer to absorb IGI’s strategic initiatives over the next two years.
IGI’s overall performance has improved in 2013 for the fourth consecutive year. Net profit reached USD 33 million, an increase of 9.5% in 2012, and translated into a return on capital and surplus equivalent to 14%, a slight reduction from 2012 (14.5%). IGI continues to produce robust technical profits as the company takes remedial action on loss making business lines, while tightening underwriting guidelines in other segments.
IGI continues to diversify its business through the introduction of new products whilst expanding geographically. Although energy business accounts for the largest share of premium revenue, property and engineering have been growing in importance. Additionally, IGI operates in a number of platforms worldwide, allowing it access to a broad spread of risks.
Positive rating movement is likely to arise from further growth and diversification of IGI’s business while the company maintains a good level of risk-adjusted capitalisation and demonstrates strong profitability. Negative rating pressure may emerge should the company experience a material reduction in risk-adjusted capitalisation, or prolonged deterioration in operating performance.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
This rating announcement has been issued by A.M. Best Europe – Rating Services Limited, which is a subsidiary of A.M. Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
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