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) P.L.C. (IGI Europe) (Malta). Concurrently, AM Best has affirmed the Long-Term ICR of “bbb” (Good) of International General Insurance Holdings Ltd. (IGI) (Bermuda) [NASDAQ: IGIC]. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect IGI’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. The ratings of IGICL, IGIUK and IGI Europe reflect their strategic importance to IGI as subsidiaries.
IGI’s balance sheet strength assessment is underpinned by its consolidated risk-adjusted capitalisation being assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The group’s balance sheet strength is further supported by its strong liquidity position and conservative investment portfolio. IGI does not have any debt leverage, and benefits from additional financial flexibility from its listing on the Nasdaq.
IGI has a track record of strong operating performance, illustrated by a five-year (2018-2022) weighted average return-on-equity ratio of 11.6%. At year-end 2022 and half-year 2023, IGI reported robust underwriting profits, with combined ratios below 80% in both periods (compared with a five-year average of 87.2% over 2018-2022). Prospectively, the group is expected to maintain its strong profitability as it continues to apply its prudent underwriting approach and benefit from the hard market cycle in its key segments.
The group has been expanding its business volumes in recent periods, evident by a compound annual growth rate of 17.9% over the past five years (2018-2022). At half-year 2023, IGI reported 21.6% revenue growth, further improving its product and geographic diversification, notably by increasing its business in North America.
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