LONDON--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” from “a-” of International General Insurance Co Ltd., (IGICL) (Bermuda) and International General Insurance Company (UK) Limited (IGIUK) (United Kingdom). Concurrently, AM Best has upgraded the Long-Term ICR to “bbb” from “bbb-” of the non-operating holding company, International General Insurance Holdings Limited (IGI) (United Arab Emirates). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect IGI’s 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).
The upgrade reflects IGI’s resilient operating results, which have been driven by robust underwriting performance over the longer term. The company has a five-year average combined ratio of 90% (2014-2018) despite the impact of catastrophe losses in 2017. AM Best views IGI’s underwriting discipline as a key driver of 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 risk-adjusted capitalisation 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. AM Best believes IGI’s capital buffer will sufficiently support its strategic initiatives over the near term (2019-2021).
IGI’s business profile is well-diversified by line of business and geography. AM Best expects the company to achieve measured growth over the medium to long term, whilst maintaining a focus on underwriting performance. Driven by the addition of new products and an improving pricing environment, IGI reported topline growth of approximately 10% in 2018, with gross written premiums reaching USD 300 million. 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 both fundamental to IGI’s overall strategy and integrated with the group through shared management functions and an internal reinsurance programme.
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