S&P affirms IGI financial strength rating

Rating agency S&P Global has reaffirmed the financial strength rating of A- of International General Insurance (IGI), the global specialist commercial insurer and reinsurer that operates on Bermuda.

IGI’s issuer credit and insurer financial strength ratings were reaffirmed by S&P, despite a catastrophe-heavy year in 2017, resulting in additional liability charges. S&P added that the company had been given a stable outlook.

“S&P reaffirming our A- rating reflects the consistency of our underwriting strategy, strength of our balance sheet and high-calibre talent.” said Wasef Jabsheh, chief executive officer of IGI. “Even in a cat-heavy 2017, IGI’s sound underwriting performance helped us to maintain continued profitability and capital adequacy.”

In its report, S&P said: “IGI’s sound underwriting performance continues as seen in its five-year average net combined ratio of 88percent and average net profits of $30 million.”

S&P praised IGI’s business risk profile, calling IGI a “relatively small but geographically-diversified facultative insurer, with a good operating performance”. The rating agency also commented on IGI’s strong capitalisation and effective control over its insurance and catastrophe risks.

“This affirmation will help IGI continue to improve the performance of its core operations and strengthen its balance sheet,” said Hatem Jabsheh, chief operations officer at IGI. “S&P recognised the investment IGI made in improving its risk capital and analytics software in 2017, which set out to facilitate a more predictable underwriting performance, while creating operational effectiveness.

“This rating is a confirmation of our programme of prudent, well-managed growth matched with increased adoption of technology and innovation.”