SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form
6-K
REPORT
OF FOREIGN PRIVATE ISSUER
PURSUANT
TO RULE 13a-16 OR 15d-16
UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For
the month of May 2024
Commission
File Number: 001-39255
International
General Insurance Holdings Ltd.
(Translation
of Registrant’s name into English)
74 Abdel
Hamid Sharaf Street, P.O. Box 941428, Amman 11194, Jordan
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form
20-F ☒ Form 40-F ☐
INCORPORATION BY REFERENCE
This report on Form 6-K, including Exhibit 99.1
attached hereto, shall be deemed to be incorporated by reference into the registration statement on Form F-3 (File No. 333-254986) and
Form S-8 (File No. 333-238918) of International General Insurance Holdings Ltd. (including the prospectuses forming a part of such registration
statements) and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports
subsequently filed or furnished.
EXHIBIT
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
| |
INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD. |
| |
|
|
|
| Date: May 7, 2024 |
By: |
/s/ Pervez Rizvi |
| |
|
Name: |
Pervez Rizvi |
| |
|
Title: |
Chief Financial Officer |
3
Exhibit 99.1
IGI Reports First Quarter 2024 Unaudited Financial
Results
HAMILTON, Bermuda, May 7, 2024 -- International
General Insurance Holdings Ltd. (“IGI” or the “Company”) (NASDAQ: IGIC) today reported financial results for the
first quarter of 2024.
Highlights for the first quarter of 2024 include:
|
| | |
Quarter Ended March 31, | |
| (in millions of U.S. Dollars, except percentages and per share information) | |
2024 | | |
2023 | |
| Gross written premiums | |
$ | 181.6 | | |
$ | 173.9 | |
| Net premiums earned | |
$ | 114.5 | | |
$ | 105.1 | |
| Underwriting income (2) | |
$ | 52.0 | | |
$ | 39.8 | |
| Net investment income (1) | |
$ | 15.4 | | |
$ | 12.4 | |
| Net income for the period | |
$ | 37.9 | | |
$ | 33.9 | |
| Combined ratio (2) | |
| 74.1 | % | |
| 78.4 | % |
| Earnings per share (diluted) (3) | |
$ | 0.84 | | |
$ | 0.71 | |
| Return on average equity (annualized) (4) | |
| 27.6 | % | |
| 32.2 | % |
| Core operating income (4) | |
$ | 40.0 | | |
$ | 29.3 | |
| Core operating earnings per share (diluted) (4) | |
$ | 0.89 | | |
$ | 0.62 | |
| Core operating return on average equity (annualized) (4) | |
| 29.2 | % | |
| 27.9 | % |
| (1) | See Note (1) in the “Notes to the Consolidated Financial
Statements (Unaudited)” below. |
| (2) | See “Supplementary Financial Information” below. |
| (3) | See Note (2) in the “Notes to the Consolidated Financial
Statements (Unaudited)” below. |
| (4) | See the section titled “Non-GAAP Financial Measures”
below. |
IGI President & CEO Mr. Waleed Jabsheh said,
“IGI had a very positive start to 2024, posting another excellent set of financial results for the first quarter. While market conditions
are more mixed than a year ago, we continue to benefit from the strong foundations that we’ve laid over recent quarters and years
to position our company for continued success.”
“We are continuing to see new opportunities
and find new ways of accessing business. With underwriting income up more than 30% and a lower level of losses in the first quarter, we
posted a healthy 74.1% combined ratio. These strong underwriting results, coupled with significantly improved investment results, resulted
in net income of $37.9 million, a 27.6% annualized return on average equity, and a 29.2% annualized core operating return on average equity.”
“As market conditions remain varied across
our portfolio, we are focused on consistent selective and disciplined underwriting and targeted growth and diversification, moving our
capital to those areas with the highest risk-adjusted returns. With a number of new initiatives in place, we are well-positioned to continue
to deliver on our goal of creating sustainable long-term value for our shareholders.”
Results for the Quarters Ended March 31, 2024 and 2023
Net income for the quarter ended March 31, 2024
increased 11.8% to $37.9 million from $33.9 million for the quarter ended March 31, 2023. The increase in net income was primarily driven
by the increase of $12.2 million in underwriting income and an increase of $3.0 million in net investment income. This was partially offset
by higher net foreign exchange loss and general and administrative expenses. Return on average equity (annualized) was 27.6% for the first
quarter of 2024 compared to 32.2% for the first quarter of 2023.
Core operating income, a non-GAAP measure, was
$40.0 million for the quarter ended March 31, 2024, compared to $29.3 million for the same period in 2023. The core operating return on
average equity (annualized) was 29.2% for the first quarter of 2024 compared to 27.9% for the first quarter of 2023.
Underwriting income increased 30.7% to $52.0 million
in the first quarter of 2024 compared to $39.8 million for the first quarter of 2023, with the increase primarily driven by higher net
premiums earned as a result of the overall growth of the portfolio, and a lower level of loss and loss adjustment expenses.
Gross written premiums were $181.6 million for
the quarter ended March 31, 2024, representing an increase of 4.4% compared to gross written premiums of $173.9 million for the quarter
ended March 31, 2023. The increase was driven by growth in the Reinsurance and Short-tail Segments.
The loss ratio was 38.7% for the quarter ended
March 31, 2024 compared to 45.7% for the quarter ended March 31, 2023.
The net policy acquisition expense ratio was 15.9%
in the first quarter of 2024 compared to 16.5% in the same quarter of 2023.
The general & administrative expense ratio
was 3.3% higher at 19.5% in the first quarter of 2024 compared to 16.2% in the first quarter of 2023 largely driven by higher human resources
costs in line with the Company’s overall growth.
The combined ratio for the quarter ended March
31, 2024 improved by 4.3 points to 74.1% compared to 78.4% for the quarter ended March 31, 2023.
Segment Results
The Specialty Long-tail Segment, which
represented 21% of the Company’s gross written premiums for the quarter ended March 31, 2024, recorded gross written premiums of
$38.7 million for the first quarter of 2024, a decrease of 7.9% compared to $42.0 million for the first quarter of 2023. Net premiums
earned for the quarter ended March 31, 2024 were $37.2 million, a decrease of 7.7% compared to $40.3 million in the same quarter in 2023,
primarily as a result of the lower level of gross written premium. Underwriting income was $9.9 million, a decrease of 12.4% compared
to $11.3 million in the first quarter of 2023 primarily due to a lower level of net premiums earned in the first quarter of 2024.
The Specialty Short-tail Segment, which
represented 52% of the Company’s gross written premiums for the quarter ended March 31, 2024, generated gross written premiums of
$94.2 million for the first quarter of 2024, an increase of 2.8% compared to $91.6 million in the first quarter of 2023. Net premiums
earned were $60.5 million, an increase of 18.6% compared to $51.0 million in the same quarter in 2023, primarily driven by overall premium
growth and positive movement in the net change in unearned premiums in this Segment. Underwriting income was $35.3 million compared to
$28.8 million for the same quarter of 2023, with the increase primarily driven by the higher level of net premiums earned during the first
quarter of 2024, compared to the same period in 2023.
The Reinsurance
Segment, which represented 27% of the Company’s gross written premiums for the quarter ended March 31, 2024, recorded gross
written premiums of $48.7 million compared to $40.3 million for the first quarter of 2023. Net premiums earned for the quarter ended March
31, 2024 were $16.8 million, compared to $13.8 million for the same quarter in 2023. Underwriting
income was a gain of $6.8 million for the first quarter of 2024, compared to a loss of $0.3 million for the first quarter of 2023. The
improvement in underwriting income was primarily the result of the higher level of net premiums earned during the first quarter of 2024,
in addition to the decrease in net loss and loss adjustment expenses by $4.0 million during the first quarter of 2024, compared to the
same period in 2023.
Net Foreign Exchange (Loss) Gain
The loss on foreign exchange in the first quarter
of 2024 was $4.3 million, compared to a gain of $1.3 million in the first quarter of 2023, both of which primarily represent currency
revaluation movements. The first quarter of 2024 recorded negative currency movement in the Company’s major transactional currencies
(mainly Pound Sterling and Euro) against the U.S. Dollar, as opposed to positive currency movement in the first quarter of 2023.
Investment Results
Net investment income was $15.4 million for the
first quarter of 2024, compared to $12.4 million for the first quarter of 2023 and included investment income of $11.8 million and $8.7
million for the quarters ended March 31, 2024 and 2023, respectively, which represented an annualized investment yield of 4.2%
on average total investments and cash and cash equivalents in the first quarter of 2024, compared to 3.5% in the corresponding period
in 2023. The increase in net investment income was primarily attributable to the growth in interest income, driven by the rise in interest
rates on a larger investment portfolio compared with the same period of 2023.
Total Shareholders’ Equity
Total shareholders’ equity at March 31,
2024 was $557.2 million, compared to $540.5 million at December 31, 2023. The movement in total shareholders’ equity during the
quarter ended March 31, 2024 is illustrated below:
(in millions of U.S. Dollars) | |
Quarter
Ended
March 31,
2024 | |
| Total Shareholders’ equity at December 31, 2023 | |
$ | 540.5 | |
| Net income for the period | |
$ | 37.9 | |
| Unrealized losses during the period on available-for-sale investments | |
$ | (2.4 | ) |
| Purchase of treasury shares (a) | |
$ | (3.6 | ) |
| Share-based compensation expense during the period | |
$ | 0.9 | |
| Vesting of earnout shares | |
$ | 7.6 | |
| Cash dividends declared during the period | |
$ | (23.7 | ) |
| Total shareholders’ equity at March 31, 2024 | |
$ | 557.2 | |
Book value per share was $12.58 at March 31, 2024,
reflecting growth of 1.5% over book value per share of $12.40 at December 31, 2023.
| (a) | In the first quarter of 2024, the Company repurchased approximately
275,580 common shares at an average price per share of $13.09. The Company has approximately 1.0 million common shares remaining under
its existing 5 million common share repurchase authorization. |
International General Insurance Holdings Ltd.
Consolidated Statements of Income (Unaudited)
| | |
Quarter Ended
March 31, | |
| (in millions of U.S. Dollars except per share data) | |
2024 | | |
2023 | |
| Gross written premiums | |
$ | 181.6 | | |
$ | 173.9 | |
| Ceded written premiums | |
$ | (38.5 | ) | |
$ | (32.9 | ) |
| Net written premiums | |
$ | 143.1 | | |
$ | 141.0 | |
| Net change in unearned premiums | |
$ | (28.6 | ) | |
$ | (35.9 | ) |
| Net premiums earned | |
$ | 114.5 | | |
$ | 105.1 | |
| Investment income(1) | |
$ | 11.8 | | |
$ | 8.7 | |
| Net realized gain on investments(1) | |
| - | | |
$ | 0.1 | |
| Net unrealized gain on investments(1) | |
$ | 3.5 | | |
$ | 3.5 | |
| Change in allowance for expected credit losses on investments(1) | |
$ | 0.1 | | |
$ | 0.1 | |
| Net investment income | |
$ | 15.4 | | |
$ | 12.4 | |
| Other revenues | |
$ | 0.2 | | |
$ | 0.6 | |
| Total revenues | |
$ | 130.1 | | |
$ | 118.1 | |
| Expenses | |
| | | |
| | |
| Net loss and loss adjustment expenses | |
$ | (44.3 | ) | |
$ | (48.0 | ) |
| Net policy acquisition expenses | |
$ | (18.2 | ) | |
$ | (17.3 | ) |
| General & administrative expenses | |
$ | (22.3 | ) | |
$ | (17.0 | ) |
| Change in allowance for expected credit losses on receivables | |
$ | (0.2 | ) | |
$ | 0.1 | |
| Change in fair value of derivative financial liabilities | |
$ | (2.1 | ) | |
$ | (0.1 | ) |
| Other expenses | |
$ | (1.3 | ) | |
$ | (0.8 | ) |
| Net Foreign exchange (loss) gain | |
$ | (4.3 | ) | |
$ | 1.3 | |
| Total expenses | |
$ | (92.7 | ) | |
$ | (81.8 | ) |
| Net income before tax | |
$ | 37.4 | | |
$ | 36.3 | |
| Income tax credit (expense) | |
$ | 0.5 | | |
$ | (2.4 | ) |
| Net income for the period | |
$ | 37.9 | | |
$ | 33.9 | |
| Diluted earnings per share attributable to equity holders (2) | |
$ | 0.84 | | |
$ | 0.71 | |
See “Notes to the Consolidated Financial Statements (Unaudited)”
below.
International General Insurance Holdings Ltd.
Consolidated Balance Sheets (Unaudited)
| (in millions of U.S. Dollars) | |
As at
March 31,
2024 | | |
As at
December 31,
2023 | |
| ASSETS | |
| | |
| |
| Investments | |
| | |
| |
| Fixed maturity securities available-for-sale, at fair value | |
$ | 809.3 | | |
$ | 765.6 | |
| Fixed maturity securities held to maturity | |
$ | 2.0 | | |
$ | 2.0 | |
| Equity securities, at fair value | |
$ | 28.7 | | |
$ | 26.2 | |
| Other investments | |
$ | 11.4 | | |
$ | 11.1 | |
| Short-term investments | |
$ | 41.7 | | |
$ | 42.2 | |
| Term deposits | |
$ | 104.9 | | |
$ | 105.1 | |
| Equity-method investments measured at fair value | |
$ | 3.1 | | |
$ | 3.5 | |
| Total investments | |
$ | 1,001.1 | | |
$ | 955.7 | |
| Cash and cash equivalents | |
$ | 150.2 | | |
$ | 177.0 | |
| Accrued investment income | |
$ | 13.9 | | |
$ | 11.5 | |
| Premiums receivable | |
$ | 280.1 | | |
$ | 245.2 | |
| Reinsurance recoverables | |
$ | 213.7 | | |
$ | 223.1 | |
| Ceded unearned premiums | |
$ | 91.0 | | |
$ | 98.0 | |
| Deferred policy acquisition costs, net of ceding commissions | |
$ | 67.9 | | |
$ | 65.3 | |
| Deferred tax assets, net | |
$ | 5.0 | | |
$ | 4.1 | |
| Other assets | |
$ | 57.0 | | |
$ | 58.0 | |
| TOTAL ASSETS | |
$ | 1,879.9 | | |
$ | 1,837.9 | |
| | |
| | | |
| | |
| LIABILITIES | |
| | | |
| | |
| Reserve for unpaid loss and loss adjustment expenses | |
$ | 720.7 | | |
$ | 712.1 | |
| Unearned premiums | |
$ | 465.1 | | |
$ | 443.5 | |
| Other liabilities | |
$ | 46.0 | | |
$ | 34.8 | |
| Insurance and reinsurance payables | |
$ | 79.1 | | |
$ | 89.7 | |
| Derivative financial liabilities | |
$ | 11.8 | | |
$ | 17.3 | |
| TOTAL LIABILITIES | |
$ | 1,322.7 | | |
$ | 1,297.4 | |
| | |
| | | |
| | |
| SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| Common shares at par value | |
$ | 0.5 | | |
$ | 0.4 | |
| Additional paid-in capital | |
$ | 145.4 | | |
$ | 137.6 | |
| Treasury shares | |
$ | (2.9 | ) | |
| - | |
| Accumulated other comprehensive income, net of taxes | |
| | | |
| | |
| Foreign currency translation reserve | |
$ | (0.4 | ) | |
$ | (0.4 | ) |
| Fair value reserve | |
$ | (22.6 | ) | |
$ | (20.2 | ) |
| Retained earnings | |
$ | 437.2 | | |
$ | 423.1 | |
| TOTAL SHAREHOLDERS’ EQUITY | |
$ | 557.2 | | |
$ | 540.5 | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | |
$ | 1,879.9 | | |
$ | 1,837.9 | |
See “Notes to the Consolidated Financial Statements (Unaudited)”
below.
International General Insurance Holdings Ltd.
Supplementary Financial Information – Combined Ratio (Unaudited)
| | |
Quarter
Ended
March 31, | |
| | |
2024 | | |
2023 | |
| Loss ratio (a) | |
| 38.7 | % | |
| 45.7 | % |
| Net policy acquisition expense ratio (b) | |
| 15.9 | % | |
| 16.5 | % |
| General and administrative expense ratio (c) | |
| 19.5 | % | |
| 16.2 | % |
| Expense ratio (d) | |
| 35.4 | % | |
| 32.7 | % |
| Combined ratio (e) | |
| 74.1 | % | |
| 78.4 | % |
| (a) | Represents net loss and loss adjustment expenses as a percentage
of net premiums earned. |
| (b) | Represents net policy acquisition expenses as a percentage
of net premiums earned. |
| (c) | Represents general and administrative expenses as a percentage
of net premiums earned. |
| (d) | Represents the sum of the net policy acquisition expenses
ratio and the general and administrative expense ratio. |
| (e) | Represents the sum of the loss ratio and the expense ratio. |
International General Insurance Holdings Ltd.
Supplementary Financial Information – Book Value per Share
(Unaudited)
| (in millions of U.S. Dollars, except share and per share data) | |
As at
March 31,
2024 | | |
As at
December 31,
2023 | |
| Investments | |
$ | 1,001.1 | | |
$ | 955.7 | |
| Cash and cash equivalents | |
$ | 150.2 | | |
$ | 177.0 | |
| Total investments and cash and cash equivalents | |
$ | 1,151.3 | | |
$ | 1,132.7 | |
| | |
| | | |
| | |
| Common shares outstanding (in millions)* | |
| 46.3 | | |
| 46.1 | |
| Minus: Unvested
shares (in millions)** | |
| 2.0 | | |
| 2.5 | |
| Number of vested common outstanding shares (in millions) (a) | |
| 44.3 | | |
| 43.6 | |
| | |
| | | |
| | |
| Total shareholders’ equity (b) | |
$ | 557.2 | | |
$ | 540.5 | |
| Book value per share (b)/(a) | |
$ | 12.58 | | |
$ | 12.40 | |
| * | Common shares issued and outstanding as at March 31, 2024
and December 31, 2023 are as follows: |
| | |
No.
of shares as at | |
| | |
March
31,
2024 | |
| Vested common shares as of December 31, 2023 | |
| 43,584,549 | |
| Vested restricted share awards | |
| 397,293 | |
| Treasury shares balance as of December 31, 2023 | |
| 3,800 | |
| Vested earnout shares | |
| 600,000 | |
| Cancelled treasury shares | |
| (55,652 | ) |
| Treasury shares balance as of March 31, 2024 | |
| (223,728 | ) |
| Total vested common shares as of March 31, 2024 | |
| 44,306,262 | |
| | |
| | |
| Unvested earnout shares as of March 31, 2024 | |
| 1,012,500 | |
| Unvested restricted share awards as of March 31, 2024 | |
| 1,020,665 | |
| Total unvested shares as of March 31, 2024 | |
| 2,033,165 | |
| Total common shares outstanding as of March 31, 2024 | |
| 46,339,427 | |
| ** | Earnout Shares were subject to vesting at stock prices ranging
from $11.50 to $15.25, and are entitled to dividends and voting rights, but are non-transferable by their holders until they vest. If
the Earnout Shares do not vest on or prior to March 17, 2028, they will be cancelled by the Company. Restricted Share Awards were issued
pursuant to the Company’s 2020 Omnibus Incentive Plan and beneficiaries are entitled to dividends and voting rights. However, the
Restricted Share Awards are non-transferable by their holders until they vest per the respective Restricted Share Award Agreements. As
at March 31, 2024, the vesting conditions attached to Earnout Shares have only been met for the first and second tranches totaling 2,000,000
shares, and these shares are included in the weighted average number of common shares for diluted earnings per share calculation. At
March 31, 2024, the remaining unvested Earnout Shares and unvested Restricted Share Awards to employees have not been met, and as a result
these shares were not included in the calculation for diluted earnings per share. |
International General Insurance Holdings Ltd.
Supplementary Financial Information - Segment Results (Unaudited)
Segment information for IGI’s consolidated
operations is as follows:
| For the quarter ended March 31, 2024 |
(in millions of U.S. Dollars) | |
Specialty
Long-tail | | |
Specialty
Short-tail | | |
Reinsurance | | |
Total | |
| Underwriting revenues | |
| | |
| | |
| | |
| |
| Gross written premiums | |
$ | 38.7 | | |
$ | 94.2 | | |
$ | 48.7 | | |
$ | 181.6 | |
| Ceded written premiums | |
$ | (8.0 | ) | |
$ | (29.0 | ) | |
$ | (1.5 | ) | |
$ | (38.5 | ) |
| Net written premiums | |
$ | 30.7 | | |
$ | 65.2 | | |
$ | 47.2 | | |
$ | 143.1 | |
| Net change in unearned premiums | |
$ | 6.5 | | |
$ | (4.7 | ) | |
$ | (30.4 | ) | |
$ | (28.6 | ) |
| Net premiums earned | |
$ | 37.2 | | |
$ | 60.5 | | |
$ | 16.8 | | |
$ | 114.5 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net loss and loss adjustment expenses | |
$ | (20.9 | ) | |
$ | (15.5 | ) | |
$ | (7.9 | ) | |
$ | (44.3 | ) |
| Net policy acquisition expenses | |
$ | (6.4 | ) | |
$ | (9.7 | ) | |
$ | (2.1 | ) | |
$ | (18.2 | ) |
| Underwriting income | |
$ | 9.9 | | |
$ | 35.3 | | |
$ | 6.8 | | |
$ | 52.0 | |
| For the quarter ended March 31, 2023 |
(in millions of U.S. Dollars) | |
Specialty Long-tail | | |
Specialty Short-tail | | |
Reinsurance | | |
Total | |
| Underwriting revenues | |
| | |
| | |
| | |
| |
| Gross written premiums | |
$ | 42.0 | | |
$ | 91.6 | | |
$ | 40.3 | | |
$ | 173.9 | |
| Ceded written premiums | |
$ | (7.3 | ) | |
$ | (25.6 | ) | |
| - | | |
$ | (32.9 | ) |
| Net written premiums | |
$ | 34.7 | | |
$ | 66.0 | | |
$ | 40.3 | | |
$ | 141.0 | |
| Net change in unearned premiums | |
$ | 5.6 | | |
$ | (15.0 | ) | |
$ | (26.5 | ) | |
$ | (35.9 | ) |
| Net premiums earned | |
$ | 40.3 | | |
$ | 51.0 | | |
$ | 13.8 | | |
$ | 105.1 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net loss and loss adjustment expenses | |
$ | (21.9 | ) | |
$ | (14.2 | ) | |
$ | (11.9 | ) | |
$ | (48.0 | ) |
| Net policy acquisition expenses | |
$ | (7.1 | ) | |
$ | (8.0 | ) | |
$ | (2.2 | ) | |
$ | (17.3 | ) |
| Underwriting income | |
$ | 11.3 | | |
$ | 28.8 | | |
$ | (0.3 | ) | |
$ | 39.8 | |
International General Insurance Holdings Ltd.
Notes to the Consolidated Financial Statements (Unaudited)
| (1) | The following table shows the investment yield calculation: |
| | |
Quarter Ended March 31, | |
| (in millions of U.S. Dollars, except percentages) | |
2024 | | |
2023 | |
| Investment income | |
$ | 11.8 | | |
$ | 8.7 | |
| Average total investments and cash and cash equivalents | |
$ | 1,154.5 | | |
$ | 982.7 | |
| Investment Yield (annualized) | |
| 4.2 | % | |
| 3.5 | % |
| (2) | Represents net income for the period available to common
shareholders divided by the weighted average number of vested common shares – diluted calculated as follows: |
| | |
Quarter Ended March 31, | |
| (in millions of U.S. Dollars, except share and per share information) | |
2024 | | |
2023 | |
| Net income for the period | |
$ | 37.9 | | |
$ | 33.9 | |
| Minus: Net income attributable
to the earnout shares | |
$ | 0.4 | | |
$ | 2.2 | |
| Minus: Dividends
attributable to restricted share awards | |
$ | 0.1 | | |
| - | |
| Net income available to common shareholders (a) | |
$ | 37.4 | | |
$ | 31.7 | |
| Weighted average number of shares – diluted (in millions of shares) (b)* | |
| 44.3 | | |
| 44.4 | |
| Diluted earnings per share attributable to equity holders (a/b) | |
$ | 0.84 | | |
$ | 0.71 | |
| * | The
weighted average number of common shares refers to the number of common shares calculated after adjusting for the changes in issued and outstanding common
shares over a reporting period. |
International General Insurance Holdings Ltd.
Non-GAAP Financial Measures
In presenting IGI’s financial results, management
has included and discussed certain non-GAAP financial measures. We believe that these non-GAAP measures, which may be defined and calculated
differently by other companies, help to explain and enhance the understanding of our results of operations. However, these measures should
not be viewed as a substitute for those determined in accordance with U.S. GAAP.
Reconciliation of Combined Ratio to Accident
Year Combined Ratio Prior to CAT Losses
The table below illustrates the reconciliation
of the combined ratio on a financial and accident year basis.
| | |
Quarter
Ended
March 31, | |
| (In millions of U.S. Dollars, except percentages) | |
2024 | | |
2023 | |
| Net premiums earned (a) | |
$ | 114.5 | | |
$ | 105.1 | |
| Net loss and loss adjustment expenses (b) | |
$ | (44.3 | ) | |
$ | (48.0 | ) |
| Net policy acquisition expenses (c) | |
$ | (18.2 | ) | |
$ | (17.3 | ) |
| General and administrative expenses (d) | |
$ | (22.3 | ) | |
$ | (17.0 | ) |
| Prior years favorable development (e) | |
$ | (22.2 | ) | |
$ | (12.0 | ) |
| Catastrophe (“CAT”) losses (f)* | |
$ | 10.8 | | |
$ | 14.4 | |
| | |
| | | |
| | |
| Combined ratio ((b+c+d)/a)** | |
| 74.1 | % | |
| 78.4 | % |
| Minus: Prior
years favorable development (e/a) | |
| (19.4 | %) | |
| (11.4 | %) |
| Accident year combined ratio | |
| 93.5 | % | |
| 89.8 | % |
| Minus: CAT
losses on an accident year basis (f/a) | |
| 9.4 | % | |
| 13.7 | % |
| Accident year combined ratio prior to CAT losses | |
| 84.1 | % | |
| 76.1 | % |
| * | The CAT losses for the first quarter ended March 31, 2024
are primarily attributable to $10.4 million of general CAT load recorded primarily in the Short-tail Segment and to a lesser extent in
the Reinsurance Segment. |
The CAT losses for the quarter ended March 31,
2023 were primarily attributable to $8.4 million of reserves recorded for the earthquake in Turkey (in the Reinsurance Segment) and flooding
in New Zealand from Cyclone Gabrielle (in the Short-tail Segment).
| ** | See “Supplementary Financial Information - Combined
Ratio (Unaudited)” |
International General Insurance Holdings Ltd.
Non-GAAP Financial Measures
The table below illustrates the split of loss
ratio between current accident year, current year CAT losses, which are included in ‘Net loss and loss adjustment expenses’,
and prior years’ loss development is as follows:
| | |
Quarter Ended March 31, | |
| | |
2024 | | |
2023 | |
| (in millions of U.S. Dollars, except percentages) | |
Net loss and loss adjustment expenses | | |
% of net premiums earned | | |
Net loss and loss adjustment expenses | | |
% of net premiums earned | |
| Current year net incurred claims | |
$ | 44.3 | | |
| 38.7 | % | |
$ | 48.0 | | |
| 45.7 | % |
| Minus: Current accident year
CAT losses | |
$ | 10.8 | | |
| 9.4 | % | |
$ | 14.4 | | |
| 13.7 | % |
| Minus: Effect
of prior years’ development | |
$ | (22.2 | ) | |
| (19.4 | )% | |
$ | (12.0 | ) | |
| (11.4 | )% |
| Current Accident year (Prior to CAT losses) | |
$ | 55.7 | | |
| 48.7 | % | |
$ | 45.6 | | |
| 43.4 | % |
Core Operating Income
Core operating income measures the performance
of our operations without the influence of after-tax gains or losses on investments and foreign currencies and other items as noted in
the table below. We exclude these items from our calculation of core operating income because the amounts of these gains and losses are
heavily influenced by, and fluctuate in part according to, economic and other factors external to the Company and/or transactions or events
that are typically not a recurring part of, and are largely independent of, our core underwriting activities and including them distorts
the analysis of trends in our operations. We believe the reporting of core operating income enhances an understanding of our results by
highlighting the underlying profitability of our core insurance operations. Our underwriting profitability is impacted by earned premiums,
the adequacy of pricing, and the frequency and severity of losses. Over time, such profitability is also influenced by underwriting discipline,
which seeks to manage the Company’s exposure to loss through favorable risk selection and diversification, IGI’s management
of claims, use of reinsurance and the ability to manage the expense ratio, which the Company accomplishes through the management of acquisition
costs and other underwriting expenses.
In addition to presenting net income for the period
determined in accordance with U.S. GAAP, we believe that showing “core operating income” provides investors with a valuable
measure of profitability and enables investors, rating agencies and other users of our financial information to analyze the Company’s
results in a similar manner to the way in which Management analyzes the Company’s underlying business performance.
International General Insurance Holdings Ltd.
Non-GAAP Financial Measures
Core operating income is calculated by the addition
or subtraction of certain line items reported in the “Consolidated Statements of Income” from net income for the period and
tax effecting each line item (resulting in each item being a non-GAAP measure), as illustrated in the table below:
| |
Quarter Ended
March 31, | |
| (in millions of U.S. Dollars, except for percentages and per share data) | |
2024 | | |
2023 | |
| Net income for the period | |
$ | 37.9 | | |
$ | 33.9 | |
| Reconciling items between net income for the period and core operating income: | |
| | | |
| | |
| Net realized gain on investments | |
| - | | |
$ | (0.1 | ) |
| Net unrealized gain on investments | |
$ | (3.5 | ) | |
$ | (3.5 | ) |
| Change in allowance for expected credit losses on investments (tax adjusted) (i) | |
$ | (0.2 | ) | |
$ | (0.1 | ) |
| Change in fair value of derivative financial liabilities | |
$ | 2.1 | | |
$ | 0.1 | |
| Net foreign exchange loss (gain) (tax adjusted) (i) | |
$ | 3.7 | | |
$ | (1.0 | ) |
| Core operating income | |
$ | 40.0 | | |
$ | 29.3 | |
| Average shareholders’ equity (ii) | |
$ | 548.8 | | |
$ | 420.6 | |
| Core operating return on average equity (annualized) (ii) and (v) | |
| 29.2 | % | |
| 27.9 | % |
| Diluted core operating earnings per share (iv) | |
$ | 0.89 | | |
$ | 0.62 | |
| Return on average equity (annualized) (v) | |
| 27.6 | % | |
| 32.2 | % |
| i. | Represents a non-GAAP financial measure as line-item balances
have been adjusted for the related tax impact. |
| ii. | Represents the total shareholders’ equity at the reporting
period end plus the total shareholders’ equity as of the beginning of the reporting period, divided by 2. |
| iii. | Represents annualized core operating income for the period
divided by average shareholders’ equity. |
| iv. | Represents core operating income attributable to vested equity
holders divided by weighted average number of vested common shares – diluted as follows: |
| | |
Quarter Ended
March 31, | |
| (in millions of U.S. Dollars, except per share information) | |
2024 | | |
2023 | |
| Core operating income for the period | |
$ | 40.0 | | |
$ | 29.3 | |
| Minus: Core operating income
attributable to earnout shares | |
$ | 0.4 | | |
$ | 1.9 | |
| Minus: Dividends
attributable to restricted share awards | |
$ | 0.1 | | |
| - | |
| Core operating income available to common shareholders (a) | |
$ | 39.5 | | |
$ | 27.4 | |
| Weighted average number of shares – diluted (in millions of shares) (b) | |
| 44.3 | | |
| 44.4 | |
| Diluted core operating earnings per share (a/b) | |
$ | 0.89 | | |
$ | 0.62 | |
| v. | Return on average equity (annualized) and core operating
return on average equity (annualized), both non-GAAP financial measures, represent the returns generated on common shareholders’
equity during the period. |
The Company has posted a First Quarter 2024
investor presentation deck on its website at www.iginsure.com in the Investors section under the
Presentations & Webcasts tab.
---
About IGI:
IGI is an international specialty risks commercial
insurer and reinsurer underwriting a diverse portfolio of specialty lines. Established in 2001, IGI has a worldwide portfolio of energy,
property, general aviation, construction & engineering, ports & terminals, marine cargo, marine trades, contingency, political
violence, financial institutions, general third-party liability (casualty), legal expenses, professional indemnity, D&O, marine liability
and reinsurance treaty business. Registered in Bermuda, with operations in Bermuda, London, Malta, Dubai, Amman, Oslo, Kuala Lumpur and
Casablanca, IGI aims to deliver outstanding levels of service to clients and brokers. IGI is rated “A” (Excellent)/Stable
by AM Best and “A-”(Strong)/Stable by S&P Global Ratings. For more information about IGI, please visit www.iginsure.com.
---
Forward-Looking Statements:
This press release 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; (7) 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.
IGI Contacts:
Investors:
Robin Sidders, Head of Investor Relations
M: + 44 (0) 7384 514785
Email: robin.sidders@iginsure.com
Media:
Aaida Abu Jaber, AVP PR & Marketing
T: +96265662082 Ext. 407
M: +962770415540
Email: aaida.abujaber@iginsure.com
Grafico Azioni International General In... (NASDAQ:IGIC)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni International General In... (NASDAQ:IGIC)
Storico
Da Gen 2024 a Gen 2025
