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FOR IMMEDIATE RELEASE
LONDON - JULY 15, 2016 10:38 AM (EDT)
A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating (ICR) “a-” of International General Insurance Co. Ltd. (IGI) (Bermuda) and International General Insurance Company (UK) Limited (IGIUK) (United Kingdom). A.M. Best also has affirmed the ICR of “bbb-” of International General Insurance Holdings Limited (IGIH) (United Arab Emirates). The outlook for each rating remains stable.
The ratings of IGI reflect its solid risk-adjusted capitalisation, consistently good technical performance and diversified business profile.
The ratings of IGIUK benefit from rating enhancement from IGI, given its strategic importance to the group. IGIUK is seen as fundamental to IGI’s overall strategy and is integrated into the group through shared management functions and its intragroup reinsurance programme. Additionally, IGIUK’s financial solvency is explicitly guaranteed by IGI. In line with the A.M. Best rating methodology, standard notching is applied to IGIH, the group’s holding company.
IGI’s risk-adjusted capitalisation remains solid and benefits from a conservative investment portfolio and a reinsurance panel of good credit quality. A.M. Best expects IGI’s capital position to be further strengthened by high earnings retention, maintaining a sufficient capital buffer to absorb the company’s strategic initiatives over the next two years.
IGI has demonstrated a track record of good operating performance, generating a net profit of USD 35 million in 2015, which was consistent with 2014. IGI’s earnings are driven by strong technical performance with a five-year average combined ratio of 84% and stable investment income generated by IGI’s conservative investment strategy. IGI has shown commitment to prudent risk selection with a focus on profitability over top-line growth. Remedial action has been taken on under-performing business segments to ensure future technical performance remains healthy.
IGI continues to diversify its business through the introduction of new products whilst expanding geographically. Although energy accounts for the largest share of premium revenue, property and engineering have been growing in importance. Additionally, IGI operates in a number of platforms worldwide, allowing it access to a broad spread of risks.
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.