Amman, Jordan: Rating agency AM Best has revised the outlooks from stable to positive and affirmed the financial strength rating of A- (Excellent) for International General Insurance Co. Ltd (IGI Bermuda) and International General Insurance Company (UK) Limited (IGI UK), the international specialist commercial insurer and reinsurer.
AM Best said the revised outlooks “reflect IGI’s consistent record of very strong operating performance and the continuous improvement in its enterprise risk management framework.”
The rating agency also said IGI’s very strong operating performance was demonstrated by a five-year average return on capital and surplus of 12.6%, and has been driven by strong technical performance and stable investment income.
“We could not be more delighted at our outlook being uplifted to positive,” said Wasef Jabsheh, Vice Chairman and Chief Executive Officer of IGI. “This is a significant achievement as we are operating in a very tough environment at the moment, and the revision to positive is a recognition of underwriting discipline, prudent growth, our great management team and all the hard work of our staff.”
The agency said in a release: “IGI has shown commitment to prudent risk selection with a focus on profitability over top-line growth. The credit ratings of IGI reflects its excellent risk-adjusted capitalisation and diversified business profile.”
IGI reported net income of $32.1 million in 2016 (2015: $35.0 million), a net combined ratio of 87.08%, and total comprehensive income (inclusive of investment gains) of $40.7 million (2015: $18.4 million). Gross written premiums stood at $231.4 million for the year.
A.M. Best said it expects IGI to continue to “manage its capital position at an excellent level, with retained earnings adequately matching any additional capital requirements from business growth over the medium term”.
It added: “Key management decisions will be supported by IGI’s recent advancements in its capital modelling and stress testing capabilities. IGI continues to diversify its business through the introduction of new products whilst expanding its operating platforms worldwide. This allows the company to access risks across a broad geographic spread.”
International General Insurance Holdings Limited is registered in the Dubai International Financial Centre (DIFC) with operations in Bermuda, Jordan, UAE, Malaysia, Morocco and a wholly owned subsidiary in the U.K.
IGI Bermuda is a class 3B (re)insurer regulated by the Bermuda Monetary Authority (BMA). This subsidiary is the principal underwriting entity for the Group. The Group also has a branch in Labuan, Malaysia, registered as a second-tier offshore reinsurer.
Both IGI Bermuda and IGI UK are rated A- with a stable outlook by Standard & Poor’s and A- (Excellent) with a positive outlook by A.M Best Company.
IGI Group of companies underwrites a worldwide portfolio of energy, property, marine, engineering, casualty, legal expenses, directors and officers, financial institutions, general aviation, ports & terminals, political violence, forestry and reinsurance treaty business with the main geographical focus being the Afro-Asian markets.
International General Insurance Holdings Limited had assets in excess of US$ 818 million as at 31st December, 2016.