MARC Ratings has affirmed its insurer financial strength rating of AA+ with a stable outlook on Bermuda-based International General Insurance Co Ltd (IGI). The rating affirmation continues to be driven by IGI’s well-diversified underwriting portfolio across business lines and countries, and a strong capitalisation level that remains supportive of growth. These strengths are underscored by a prudent approach to reserving policy.

IGI is a specialty insurer with gross written premiums (GWP) and net profit strengthening by 16.8% y-o-y to US$545.6 million and 25.6% y-o-y to US$41.8 million in 2021. The strong growth continued to be driven by the casualty and engineering lines, which accounted for 34.8% and 5.7% of GWP. Notwithstanding the strong performance, IGI remains exposed to catastrophic events, although this is mitigated by its reinsurance strategy and management expertise. This was evident in the minimal loss of US$8.4 million incurred in the recent catastrophic flooding across parts of Europe.

IGI has a strong capital base as reflected by a regulatory solvency ratio of 161% as at end-2021 compared to the minimum of 120% set by the Bermuda Monetary Authority (BMA). It comfortably met BMA’s minimum solvency margin with statutory capital and surplus at US$378 million which suggests large headroom against a more severe situation. IGI continues to maintain healthy cash and short-term deposits of US$421.8 million or 46.2% of the insurer’s portfolio in 2021 (2020: US$305.2 million, 39.4%). IGI’s liquidity position remains healthy with a liquid assets-to-net technical reserves ratio of 137.7% (2020: 142.5%).