A.M. Best Co. has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of “a-” to International General Insurance Company Limited (IGI) (Bermuda). A.M. Best has also assigned an issuer credit rating (ICR) of “bbb-” to International General Insurance Holdings Limited (IGIH) (Dubai). The outlook for all ratings is stable.
According to A.M. Best, "the ratings reflect the IGI’s excellent risk-adjusted capitalisation, strong operating performance and continuously improving business profile with increasing international presence."
"A.M. Best believes that IGI’s current and prospective risk-adjusted capitalisation is excellent and is expected to remain supportive of its annual projected business growth of 65% in 2009. IGI’s absolute level of economic capital of USD 200 million expected in 2008 (as at 31st March 2008) is viewed as strong and is expected to be further improved by retaining a proportion of earnings in the future."
In A.M. Best’s opinion, IGI’s operating performance is likely to remain strong and is projected to be between USD 20 – 22 million annually over the next two years. A.M. Best expects IGI’s prospective return on premium to be sound at approximately 25%, a healthy combined ratio of around 85% and good investment returns of approximately 4%. The company’s expense ratio is likely to be stable at the level of around 30%, while the loss ratio is projected to be around 55%-60% in the coming two years.
A.M. Best believes that IGI’s business profile is continuously improving and is likely to grow in the near future following its on-track international expansion and further diversification of business lines. In A.M. Best’s view, the Labuan and the planned Dublin subsidiaries will continue to raise IGI’s profile in the Far Eastern and European territories and will further benefit IGI in expanding its business.
Commenting on the above Mr. Wasef Jabsheh, Vice Chairman and Chief Executive Officer said “I am very pleased with this news and would like to thank everyone at IGI for the part that they played in this achievement. At IGI we are committed to offering the highest possible levels of service, professionalism and expertise to our stakeholders and look forward to maintaining and improving this rating in the years to come”.
It should be noted that IGIH is registered in the Dubai International Financial Centre (DIFC) with wholly owned subsidiary Companies in Bermuda and Jordan. According to industry sources, this is the first time that a Jordan based company gets a rating that is this high by AM Best.
