INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD. IGI Investor Presentation
First Quarter 2024
May 2024
Forward Looking Statements
This presentation contains "forward-looking statements" within the meaning of the "safe harbour" provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the business of IGI may differ from its actual results and, consequently, you should not rely on forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," "commitment," and similar expressions are intended to identify such forward-looking statements. Forward-looking statements contained in this press release may include, but are not limited to, our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, the outcome of our strategic initiatives, our expectations regarding pricing and other market conditions, and our growth prospects. These forward- looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside of the control of IGI and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) changes in demand for IGI's services together with the possibility that IGI may be adversely affected by other economic, business, and/or competitive factors globally and in the regions in which it operates; (2) competition, the ability of IGI to grow and manage growth profitably and IGI's ability to retain its key employees; (3) changes in applicable laws or regulations; (4) the outcome of any legal proceedings that may be instituted against the Company; (5) the effects of the hostilities between Russia and Ukraine and the sanctions imposed on Russia by the United States, European Union, United Kingdom and others; (6) the effects of the war between Israel and Hamas;
- the inability to maintain the listing of the Company's common shares on Nasdaq; and (8) other risks and uncertainties indicated in IGI's filings with the SEC. The foregoing list of factors is not exclusive. In addition, forward-looking statements are inherently based on various estimates and assumptions that are subject to the judgment of those preparing them and are also subject to significant economic, competitive, industry and other uncertainties and contingencies, all of which are difficult or impossible to predict and many of which are beyond the control of IGI. There can be no assurance that IGI's financial condition or results of operations will be consistent with those set forth in such forward- looking statements. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. IGI does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based except to the extent that is required by law.
International General Insurance Holdings Ltd. | 2 |
Overview
IGI is an international specialist (re)insurance group with deep technical expertise providing coverage across a diversified portfolio of specialty lines
- "Underwriting first" individual risk underwriting strategy focused on profitable growth, diversification, and lower volatility
- Underwriting portfolio well-diversified by line of business, product, and territory serviced by 108 underwriters(1) across 8 offices
- Performance-basedculture with well-respected and recognized leadership and proven expertise in intelligent risk selection across a diverse range of specialty lines
- Uniquely positioned to capitalize on market opportunities through dynamic portfolio management across market cycles
- Balance sheet strength and stability focused on capital preservation underpinned by a prudent reserving philosophy and conservative investment strategy
- Strong shareholder alignment through significant insider ownership (Jabsheh family ownership: 34.2%)
Key Market Data(1)
Stock Exchange | Nasdaq | |
Symbol | IGIC | |
Market Cap/Price | $624mm / $13.54 | |
Sh. Equity/BVPS | $557mm / $12.58 | |
Employees | 426 | |
A | A- | |
Commitment to long-termtotal value creation through growth in tangible
book value per share plus dividends
(1) Data as of March 31, 2023
International General Insurance Holdings Ltd. | 3 |
Track Record of Maximizing Total Value Creation
Tangible Book Value Per Share plus Dividends
$18 $16
10 Year CAGR 12/31/2015 - 3/31/2024: 6.3%
$15.45 $16.12
$14 | $12.17 | Public listing on Nasdaq(1) | $12.01 | ||||
$11.36 | |||||||
$12 | $10.72 | $11.06 | |||||
$10.43 | $10.20 | ||||||
$10 | $9.30 | ||||||
$8 $6 $4 $2 $0
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
(3/31) |
- IGI completed a business combination with Tiberius Acquisition Corp. and began trading on Nasdaq on March 18, 2020. As a result of the Business Combination, $41 million of capital was raised; in addition, IGI's total shares outstanding were reduced causing a dilutive impact of approximately 33%.
35% | Core Operating Return on Average Shareholders' Equity | |||||||||
30% | 28.1% | 29.2% | ||||||||
25% | 10 Year Average ROE 2015-2024 (annualized): 14.5% | 23.7% | ||||||||
20% | ||||||||||
15% | 12.1% | 14.3% | ||||||||
10.3% | 9.8% | 10.3% | ||||||||
10% | ||||||||||
0.1% | 7.0% | |||||||||
5% | ||||||||||
0% | ||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
(annualized) |
International General Insurance Holdings Ltd. | 4 |
Superior Total Value Creation
- Proven track record of higher, more consistent returns with lower volatility
Return on Tangible Equity and Sharpe Ratio
12/31/2014-12/31/2023
Higher Volatility, Higher Returns | Lower Volatility, Higher Returns | |
ORI | SIGI | TRV | ||||||||
CINF | ||||||||||
WRB | ||||||||||
EIG | THG | |||||||||
CNA | ||||||||||
HMN | EG | ACGL | HIG | |||||||
SAFT | IGIC | ALL | ||||||||
AIG | ||||||||||
FIHL | MKL | |||||||||
MCY | ||||||||||
RNR | ||||||||||
AXS | ||||||||||
LRE | ||||||||||
DFY | ||||||||||
HCI | ||||||||||
PRA | ||||||||||
JRVR | ||||||||||
SPNT | WTM | KMPR | ||||||||
HG | DGICA | |||||||||
GLRE UFCS
AMSF | IFC | |
RLI | KNSL | |
PGR | ||
CB | ||
AFG |
PLMR
FFH AIZ
BRK/B
UVE
Higher Volatility, Lower Returns | Lower Volatility, Lower Returns | |
Source: Dowling Research. Note: The chart represents 10 -year average ROTE and Sharpe ratio (or shorter period for companies where 10 years is not available). Sharpe ratio is estimated as the difference between 10 Year average ROTE and 10 Year Mean U.S. Treasury, divided by the Company's ROTE Standard Deviation.
International General Insurance Holdings Ltd. | 5 |
Global Presence, Local Knowledge
- Main underwriting hubs in Bermuda, UK, Europe, Middle East / North Africa, Asia Pacific covering a mix of mature and high-growth,under-represented geographies
- Distribution relationships and presence in key territories with high degree of local knowledge, cultural compatibility, and trusted relationships
International General Insurance Holdings Ltd. | 6 |
Strategy to Maximize Total Value Creation over the Long-term
Consistent Execution of Underwriting Strategy
Individual risk underwriting facilitates tighter risk control
Global footprint, local knowledge, long relationships
Deep technical expertise, specialized experience
Dynamic cycle management, focused on lines with strong margins and rate momentum
Lower volatility, prudent use of reinsurance, managed catastrophe exposure
Balance Sheet Strength,
Prudent Use of
Capital
Maintain optimal level of capital for "underwriting first" strategy; return excess capital in dividends, share repurchases
Zero financial leverage
Prudent reserving philosophy
Conservative investment portfolio structure - high quality fixed income; duration management
Track Record of Strong Underwriting Results
Underwriting strategy results in average ~4 pt combined ratio advantage1 vs. peers
10-year2 average 86.4% combined ratio
10-year2 average 14.5% core operating ROE, including soft market years
Superior risk adjusted return, low relative volatility4
(1) | Represents difference in average combined ratios for the period 2014-2023 between IGIC and peers. Peers include: MKL, ACGL, WRB, RE, RNR, HSX-LON, AXS, RLI, BEZ-LON, KNSL, LRE-LON, JRVR and Lloyd's of London | |
(2) | 2015-3/31/2024 | (annualized) |
(4) | Source Dowling | Research (see Slide 5) |
International General Insurance Holdings Ltd. | 7 |
Well-Positioned for Future Total Value Creation Opportunities
Build-out of
US/European
Business
Capitalize on
Market
Opportunities
Continued
Focus on
Diversification
and Growth
Prudent
Capital
Management
- US: $34.1mm as of March 31, 2024, including E&S business; all short-tail, primarily property, energy, contingency, and treaty reinsurance
- Europe: $22.1mm as of March 31, 2024; predominantly long-tail lines, supplemented by some short-tail business
- Steady growth in short-tail and reinsurance lines where conditions remain strong: cumulative
net rate increases at 3/31/2023: 2.7% short-tail; 7.4% treaty reinsurance - Continued focus on long-tail opportunities in Europe and Nordic region, MENA region, and Asia Pacific, with dedicated expertise expanded in these regions
- Demonstrated ability to shift underwriting focus with market opportunities
- Expected growth in Nordic markets through acquisition of Norwegian energy MGA and build out of team - addition of two professional and financial lines underwriters
- On-the-groundpresence in Bermuda with gradual buildout of reinsurance treaty business
- Single "hub" underwriting approach promotes efficiency in decision-making across markets
- Continuous evaluation of opportunities to enter new lines/markets within risk appetite
- Efficient use of capital, prioritizing profitable growth in underwriting first, then returning capital to shareholders through dividends and share repurchases; repurchases 2022 - 3/31/2024 = 4,007,360 common shares; utilized ~80% of current 5 million common share repurchase authorization
- Paid $23.7 million in regular quarterly common share dividend of $0.01 per share, plus extraordinary cash dividend of $0.50 per share
International General Insurance Holdings Ltd. | 8 |
Financial Performance Overview Q1 2024
$181.6 million
Gross Written Premium
$52.0 million
Underwriting Income
$37.9 million
Net Income
74.1%
Combined Ratio
29.2%
Core Operating ROAE
Q1 2024
Compared to $173.9 | Premium growth of 4.4% driven by growth in short- |
mm in Q1'23 | tail and treaty reinsurance business |
Compared to $39.8 | Increase of 30.7% due to higher net earned |
mm in Q1'23 | premiums due to overall portfolio growth |
Compared to $33.9 | Increase of 11.8% primarily due to increase in |
underwriting income and net investment income, | |
mm in Q1'23 | partially offset by a higher FX loss and higher G&A |
expenses | |
Compared to 78.4% | Improvement of 4.3 pts due to lower loss ratio |
in Q1'23 | |
Compared to 27.9% | 1.3 pt improvement due to higher underwriting |
income and investment income partially offset by | |
in Q1'23 | |
higher G&A expenses | |
International General Insurance Holdings Ltd. | 9 |
Earnings Stability Through Broad Diversification
- Meaningful diversification by line of business, product, geography, broker distribution, facility vs. individual risk, and short vs. long-tail risks
- ~25 lines of business written globally, supported by 8 offices
$700 | GWP by Geography | |||||
3/31/2023 | ||||||
Australasia | South America | |||||
Worldwide | 1% | 2% | ||||
Africa 6% | United Kingdom | |||||
$600 | 17% | |||||
6% | ||||||
Central | ||||||
Americ… | Asia | GWP by Line of Business | ||||
Caribbean | ||||||
$500 | 6% | 11% | ||||
North | Middle East | ||||||||||
Millions$ | $400 | America | 12% | ||||||||
21% | |||||||||||
Europe | |||||||||||
13% | |||||||||||
GWP | $300 | ||||||||||
$200 | |||||||||||
$100 | |||||||||||
$0 | |||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | ||
Reinsurance | Energy | Engineering | Marine | Property | General Aviation |
Political violence | Contingency | Inherent Defects Insurance | Professional Lines | Financial Institutions | ||||||
International General Insurance Holdings Ltd. | 10 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
International General Insurance Holdings Ltd. published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 20:47:48 UTC.
