At a glance
- A positive outlook on the holding company's "bbb" long-term issuer credit rating reflects potential for an upgrade if the group keeps outperforming peers through a softer stage of the cycle, AM Best said.
- For creditors and counterparty-risk reviewers, a potential upgrade would apply to the holding company's "bbb" issuer credit rating, not the A financial-strength rating of the Bermuda underwriting subsidiary.
- The group's five-year weighted average return on equity was 20% for 2021-2025, AM Best said.
AM Best changed its outlook on International General Insurance Holdings' "bbb" long-term issuer credit rating to positive from stable, expecting the Bermudian specialty insurer and reinsurer to hold strong results even as underwriting conditions soften.
A positive outlook on the holding company's "bbb" long-term issuer credit rating reflects potential for an upgrade if the group keeps outperforming peers through a softer stage of the cycle, AM Best said. AM Best affirmed the A (excellent) financial-strength rating of IGI Co, the group's Bermuda underwriting subsidiary, and its "a" long-term issuer credit rating. The financial-strength outlook remained stable.
For creditors and counterparty-risk reviewers, a potential upgrade would apply to the holding company's "bbb" issuer credit rating, not the A financial-strength rating of the Bermuda underwriting subsidiary.
The group's five-year weighted average return on equity was 20% for 2021-2025, AM Best said. Its combined ratio was marginally above 80% over the same period.
AM Best said the balance sheet is underpinned by the strongest level of risk-adjusted capitalisation under its Best's Capital Adequacy Ratio model, alongside strong liquidity, a conservative investment portfolio and no debt leverage.
The assessment follows a first half in which losses tied largely to the Middle East conflict produced one of the largest single-event loss experiences in the company's history. IGI still reported $42.5 million of net income for the six months to June 30 and a combined ratio of 92.2%, with gross written premiums of $398.9 million against $394.3 million a year earlier.
AM Best also cited the group's diversified international platform, including a reinsurance branch established in India this year. IGI, listed on Nasdaq, reports third-quarter and nine-month results on Nov. 3.
Reported by the Insurance regulation desk from Royal Gazette Bermuda Re. Published . Corrections