Market Overview

A.M. Best Affirms Credit Ratings of International General Insurance Holdings Limited and Its Subsidiaries

Share:

A.M. Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of
"a-" of International General Insurance Co. Ltd. (IGI) (Bermuda)
and International General Insurance Company (UK) Limited (IGIUK)
(United Kingdom). Concurrently, A.M. Best has affirmed the Long-Term ICR
of "bbb-" of International General Insurance Holdings Limited
(IGIH) (United Arab Emirates). The outlook of these Credit Ratings
(ratings) remains positive.

The ratings reflect IGI's balance sheet strength, which A.M. Best
categorises as very strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise risk
management (ERM).

IGI's balance sheet strength assessment is underpinned by its
risk-adjusted capitalisation being at the strongest level, as measured
by Best's Capital Adequacy Ratio (BCAR), as well as its good liquidity,
conservative investment portfolio and reinsurance panel of good credit
quality. A.M. Best believes IGI's capital buffer will sufficiently
support its strategic initiatives over the next three years (2018-2020).
IGI's business profile is well-diversified by line of business and
geography. Following two years of decline, gross written premiums
increased by 19% to USD 275 million in 2017, driven by the addition of
new products. A.M. Best expects the company to achieve measured growth
over the medium to long term. IGI's ERM framework is well-developed and
its risk management capabilities are aligned appropriately with its risk
profile.

The positive outlooks reflect IGI's record of strong operating results,
driven by generally robust underwriting profitability and stable
investment income. In 2017, the company generated a modest underwriting
loss of USD 1.9 million, compared with a 2016 gain of USD 22.9 million,
and a combined ratio of 101.2% (2016: 85.4%), due to catastrophe losses
incurred in its property book. Despite the underwriting loss, IGI
achieved an overall profit in 2017 and a return on equity of 3.3%. In
line with its historical results, A.M. Best expects the company to
report strong, albeit potentially volatile profits in prospective years.

The ratings of IGIUK reflect its strategic importance to IGI. IGIUK is
fundamental to IGI's overall strategy, is integrated with the group
through shared management functions and an internal reinsurance
programme, and its financial solvency is explicitly guaranteed by IGI.
IGIH is the ultimate holding company of the group.

A.M. Best remains the leading rating agency of alternative risk
transfer entities, with more than 200 such vehicles rated in the United
States and throughout the world. For current Best's Credit Ratings and
independent data on the captive and alternative risk transfer insurance
market, please visit
www.ambest.com/captive.

This press release relates to Credit Ratings 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. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Understanding
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
Guide
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases
.

A.M. Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
www.ambest.com
for more information
.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

View Comments and Join the Discussion!