AM Best Affirms Credit Ratings Of IGI
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] Ltd. [IGI Europe] [Malta]. All of these are subsidiaries of International General Insurance Holdings Ltd. [IGI] [Bermuda]
The ratings agency said, “Concurrently, AM Best has affirmed the Long-Term ICR of “bbb” [Good] of IGI. 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.
“IGI’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 further supported by its strong liquidity position and conservative investment portfolio. IGI does not have any debt leverage and its financial flexibility is enhanced through its listing on the Nasdaq.
“IGI has a track record of strong operating performance, illustrated by a five-year [2020-2024] weighted average return-on-equity ratio of 19%. IGI’s performance has been underpinned by solid underwriting performance, demonstrated by a five-year weighted average combined ratio marginally above 80%, which has been supported by sizeable releases of prior year reserves. Prospectively, the group is expected to maintain its strong profitability, supported by its selective underwriting approach and stable investment income.
“IGI maintains a well-diversified portfolio by line of business and geography. The group has been expanding its business volumes in recent periods, reaching gross written premiums of USD 700 million at year-end 2024, compared to USD 467 million at year-end 2020. Nonetheless, AM Best expects more modest growth over the medium term as the group remains disciplined to effectively manage the underwriting cycle.”
