SHUAA Capital psc (SHUAA), the leading investment banking institution in the UAE, announced Tuesday that it is finalizing the capital increase undertaken by the Jordan-based International General Insurance Company (IGI).
The capital increase is conducted through a private placement of 814,882 shares, representing 44.9% of capital stock, for US$75 million. IGI reported that the placement is oversubscribed. IGI's capital and surplus is now standintg at US$143 million.
Mr. Wasef Jabsheh, IGI's Chairman and Chief Executive Officer on Wednesday told Menareport.com: ""We have been working closely with SHUAA as this company is the most successful finance firm in the region. We thank them for their efforts and professionalism."
On the deal itself, Mr. Jabsheh added: "The injection of the new capital will help the company expand. We plan now to develop writing aviation insurance and non-proportional reinsurance. It will also support our geographical expansion plans as we are set to establish a subsidiary in Malaysia and Dubai. At present, we are also studying the option to open an office in London. I am sure that these new locations will create new business opportunities for us."
On a wider scale, Mr. Jabsheh noted: "By this capital increase I can say that IGI is one of the biggest businesses in Jordan, especially in terms of attracting foreign investment. We bring in foreign capital for the benefit of the Jordanian economy and naturally the US$75 million will help the local market."
IGI is involved in the (re)insurance underwriting business mainly for the oil and gas, construction, marine and property. IGI is differentiated from other (re)insurance companies in the region in that it conducts business mainly on a facultative basis, where each risk is evaluated on its own merits. As such IGI's business requires high levels of technical expertise and experience which is reflected in the quality and caliber of its management and staff.
With an incorporation date of October 4, 2001, IGI commenced underwriting operations on March 1,2002.
