LONDON--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of International General Insurance Co. Ltd. (IGI) (Bermuda) and International General Insurance Company (UK) Limited (IGIUK) (United Kingdom). Concurrently, A.M. Best has affirmed the Long-Term ICR of “bbb-” of International General Insurance Holdings Limited (IGIH) (United Arab Emirates). The outlook of these Credit Ratings (ratings) remains positive.
The ratings reflect IGI’s balance sheet strength, which A.M. Best categorises as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
IGI’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its good liquidity, conservative investment portfolio and reinsurance panel of good credit quality. A.M. Best believes IGI’s capital buffer will sufficiently support its strategic initiatives over the next three years (2018-2020). IGI’s business profile is well-diversified by line of business and geography. Following two years of decline, gross written premiums increased by 19% to USD 275 million in 2017, driven by the addition of new products. A.M. Best expects the company to achieve measured growth over the medium to long term. IGI’s ERM framework is well-developed and its risk management capabilities are aligned appropriately with its risk profile.
The positive outlooks reflect IGI’s record of strong operating results, driven by generally robust underwriting profitability and stable investment income. In 2017, the company generated a modest underwriting loss of USD 1.9 million, compared with a 2016 gain of USD 22.9 million, and a combined ratio of 101.2% (2016: 85.4%), due to catastrophe losses incurred in its property book. Despite the underwriting loss, IGI achieved an overall profit in 2017 and a return on equity of 3.3%. In line with its historical results, A.M. Best expects the company to report strong, albeit potentially volatile profits in prospective years.
The ratings of IGIUK reflect its strategic importance to IGI. IGIUK is fundamental to IGI’s overall strategy, is integrated with the group through shared management functions and an internal reinsurance programme, and its financial solvency is explicitly guaranteed by IGI. IGIH is the ultimate holding company of the group.
A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.