LONDON--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of International General Insurance Co. Ltd., (IGICL) (Bermuda), International General Insurance Company (UK) Limited (IGIUK) (United Kingdom) and International General Insurance Company (Europe) SE (IGI Europe) (Malta). Concurrently, AM Best has affirmed the Long-Term ICR of “bbb” (Good) of International General Insurance Holdings Limited (IGIC) (Bermuda). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect IGIC’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings of IGICL, IGIUK and IGI Europe reflect their strategic importance to IGIC.
IGIC’s balance sheet strength assessment is underpinned by its consolidated risk-adjusted capitalisation assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The group’s balance sheet strength is supported further by good liquidity and a reinsurance panel of good credit quality. AM Best’s assessment considers the group’s enhanced financial flexibility, following its listing on the Nasdaq in 2020. IGIC is monitoring its regulatory solvency level closely as the group executes its expansion plans, which are expected to substantially increase the company’s capital requirements.
IGIC’s strong operating results are underpinned by robust underwriting performance, which translated in a five-year weighted average combined ratio of 92% (2016-2020), despite the impact of catastrophe losses in 2017. The group’s results are exposed to foreign exchange movements, which has introduced some volatility, largely stemming from GBP-denominated business as IGIC grows its U.K. book of business. AM Best views IGIC’s underwriting discipline as a key factor supporting its good financial results and expects the group to report strong, albeit potentially volatile, profits in prospective years.
IGIC’s business profile is well-diversified by line of business and geography. The group reported gross written premium of USD 467 million in 2020, up 34% compared with 2019, driven by the addition of new markets, products and improved pricing. AM Best expects IGIC to maintain strong underwriting discipline as further growth is expected over the medium term, albeit at a declining rate.
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