International General Insurance Holdings Ltd 6-K, filed May 16, 2023
International General Insurance Holdings Ltd. (IGIC)
About this 6-K
International General Insurance Holdings Ltd filed this 6-K on May 16, 2023.
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 2023
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 ☐
EXHIBIT
| Exhibit Number |
Exhibit Description | |
| 99.1 | IGI Investor Presentation Q1 2023 (May 2023). |
1
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 16, 2023 | By: | /s/ Pervez Rizvi | |
| Name: | Pervez Rizvi | ||
| Title: | Chief Financial Officer | ||
2
Exhibit 99.1
IGI Investor Presentation First Quarter 2023 May 2023
Forward Looking Statements 2 International General Insurance Holdings Ltd. This presentation 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,” and similar expressions are intended to identify such forward - looking statements . Forward - looking statements contained in this presentation 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 potential effects of the COVID - 19 pandemic and emerging variants ; ( 6 ) 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 ; ( 7 ) the inability to maintain the listing of the Company’s common shares or warrants on Nasdaq ; ( 8 ) the failure to realize the anticipated benefits of the acquisition of EIO ; and ( 9 ) 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 .
Key Market Data (1) Stock Exchange Nasdaq Symbol IGIC Market Cap/Price $ 359 mm / $ 8 . 29 Sh . Equity/BVPS $ 430 mm / $ 9 . 98 Employees 364 » “Underwriting first” individual risk underwriting strategy focused on profitable growth, diversification, and lower volatility » Underwriting portfolio well - diversified by line of business, product, and territory serviced by 96 underwriters (1) across 8 offices » Performance - based culture with well - respected and recognized leadership and proven expertise in intelligent risk selection across a diverse range of specialty lines » Uniquely positioned to capitalize on market opportunities through dynamic portfolio management across market cycles » Balance sheet strength and stability focused on capital preservation underpinned by a prudent reserving philosophy and conservative investment strategy » Strong shareholder alignment through significant insider ownership (Jabsheh family ownership: 32.5%) Overview IGI is an international specialist (re)insurance group with deep technical expertise providing coverage across a diversified portfolio of specialty lines A A - (1) Data as of March 31, 2023 Commitment to long - term total value creation through growth in tangible book value per share plus dividends 3 International General Insurance Holdings Ltd.
13.0% 12.4% 12.1% 10.3% 0.1% 9.8% 7.0% 10.3% 14.3% 23.7% 27.9% 5% 0% 10% 15% 20% 25% 30% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 $8.32 $9.20 $9.30 $10.43 $10.72 $11.36 $12.17 $10.20 $11.06 $12.01 $13.08 $10 $12 $14 Track Record of Maximizing Total Value Creation Average ROE 2014 - 3/31/2023: 12.8% Core Operating Return on Average Shareholders’ Equity CAGR 2013 – 3/31/2023: 4.6% Public listing on Nasd aq (1) $8 $6 $4 $2 $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 3/31/2023 (1) IGI completed a business combination with Tiberius Acquisition Corp. and began trading on Nasdaq on March 18, 2020. As a result of the Business Combination, $41 million of capital was raised; in addition, IGI’s total shares outstanding were reduced causing a dilutive impact of approximately 33%. Tangible Book Value Per Share plus Dividends 4 International General Insurance Holdings Ltd. Q1 2023 Annualized
IFC - CA UVE PGR AMSF AIZ CB TRV RLI AFG WRB ALL HIG SIGI FFH - CA BRK.B IGIC ACGL WTM ORI HCI MKL RE THG SAFT CNA EIG CINF RNR JRVR HMN MCY LRE - LON AXS KMPR PRA AIG DGICA ARGO UFCS GBLI SPNT GLRE Return on Tangible Equity and Sharpe Ratio 12/31/2013 - 12/31/2022 Superior Total Value Creation Source: Dowling Research. Note: The chart represents 10 - year average ROTE and Sharpe ratio (or shorter period for companies where 10 years is not available). Sharpe ratio is estimated as the difference between 10 Year average ROTE and 10 Year Mean U.S. Treasury, divided by the Company’s ROTE Standard Deviation. Lower Volatility, Higher Returns Higher Volatility, Higher Returns Higher Volatility, Lower Returns Lower Volatility, Lower Returns » Proven track record of higher, more consistent returns with lower volatility 5 International General Insurance Holdings Ltd.
Global Presence, Local Knowledge » Main underwriting hubs in UK, Europe, Middle East / North Africa, Asia Pacific covering a mix of mature and high - growth, under - represented geographies » Distribution relationships and presence in key territories with high degree of local knowledge, cultural compatibility, and trusted relationships 6 International General Insurance Holdings Ltd.
(1) Represents difference in average combined ratios for the period 2013 – 3/31/2023 between IGIC and peers. Peers include: MKL, ACGL, WRB, RE, RNR, HSX - LON, AXS, RLI, BEZ - LON, ARGO, KNSL, LRE - LON, JRVR and Lloyd’s of London (2) 2014 - Q1 2023 (annualized) (3) Source Dowling Research (see Slide 5) Strategy to Maximize Total Value Creation over the Long - term Track Record of Strong Underwriting Results Consistent Execution of Underwriting Strategy Balance Sheet Strength, Prudent Use of Capital Individual risk underwriting facilitates tighter risk control Global footprint, local knowledge, long relationships Deep technical expertise, specialized experience Dynamic cycle management, focused on lines with strong margins and rate momentum Lower volatility, prudent use of reinsurance, managed catastrophe exposure Maintain optimal level of capital for “underwriting first” strategy; return excess capital in dividends, share repurchases Prudent reserving philosophy Zero financial leverage Conservative investment portfolio structure – high quality fixed income; duration management Underwriting strategy results in average ~4 pt combined ratio advantage 1 vs. peers 10 - year average 2 87.9% combined ratio 10 - year 2 average 12.8% core operating ROE, including soft market years Superior risk adjusted return, low relative volatility 3 7 International General Insurance Holdings Ltd.
Well - Positioned for Future Total Value Creation Opportunities Build - out of US/European Business » US: $25.4 mm GWP in Q1 2023, including E&S business; all short - tail, primarily energy, property, and contingency » Europe: $19.5 mm GWP in Q1 2023; predominantly long - tail lines, supplemented by some short - tail business » Steady growth in short - tail and reinsurance lines where conditions remain strong: cumulative net rate increases at 3/31/2023: 9.1% short - tail; 29.7% treaty reinsurance » Continued build out of long - tail opportunities in Europe, MENA region, and Asia Pacific. Cumulative net rate increases at 3/31/2023: 1.9%; dedicated expertise expanded » Demonstrated ability to shift underwriting focus with market opportunities Capitalize on Market Opportunities Continued Focus on Diversification and Growth » Expected growth in Nordic markets through acquisition of Norwegian energy MGA » On - the - ground presence in Bermuda with gradual buildout of reinsurance treaty business » Single “hub” underwriting approach promotes efficiency in decision - making across markets » Continuous evaluation of opportunities to enter new lines/markets while maintaining overall risk appetite Prudent Capital Management » Efficient use of capital, prioritizing profitable growth in underwriting first, then returning capital to shareholders through dividends and share repurchases; repurchases 2022/2023 (through March 31, 2023) = 2,758,357 common shares; utilized 58% of current authorization » Current share repurchase authorization of up to 5 million common shares; regular quarterly common share dividend of $0.01 per share 8 International General Insurance Holdings Ltd.
Financial Performance Overview Q1 2023 $173.9 million Gross Written Premium Compared to $126.4 mm in Q1’22 Premium growth of 37.6% due to new and renewal business and portfolio optimization achieving rate increases and improved terms and conditions $39.8 million Underwriting Income Compared to $41.7 mm in Q1’22 Decline of 1.9% due to higher level of net losses partially offset by higher net earned premiums $33.9 million Profit Compared to $22.2 mm in Q1’22 78.4% Combined Ratio Compared to 71.8% in Q1’22 Increase of 52.7% driven by disciplined underwriting, higher net premiums earned, higher investment income, and 11.4 pts of favorable development Increase due to an increase of 13.3 pts in the loss and loss adjustment expense ratio primarily due to the earthquake in Turkey and flooding in New Zealand 27.9% Core Operating ROAE Compared to 24.7% in Q1’22 3.2% improvement due to higher earned premium, 11.4 pts favorable development, offset by a higher level of losses Financial Performance Developments International General Insurance Holdings Ltd. 9 ▪ Disciplined underwriting with focus on profitable growth and diversification – shift to lines and markets with strong margins and rate momentum ▪ Strong rate momentum in many lines of business (reinsurance and virtually all short - tail lines except aviation) and geographic markets (predominantly U.S. with improvement in Europe, Latin America, and Asia); cautious approach on long - tail lines where there is more competition and pricing pressure ▪ Improved investment income driven by higher yields (on a larger fixed income portfolio) and increased reinvestment rates from rise in interest rates ▪ Q1 share repurchases of 2,447,815 common shares through March 31, 2023
$0 $100 $200 $300 $400 $500 $600 2012 2014 2019 2020 Property Financial Institutions 2021 General Aviation 2022 GWP Millions Reinsurance Political violence 2013 Energy Contingency 2015 2016 Engineering Inherent Defects Insurance 2017 2018 Marine Professional Lines Earnings Stability Through Broad Diversification » Meaningful diversification by line of business, product, geography, broker distribution, facility vs. individual risk, and short vs. long - tail risks » ~25 lines of business written globally, supported by 8 offices GWP by Line of Business United Kingdom 23% 10 International General Insurance Holdings Ltd. Asia 11% Middle East 12% Europe 12% North America 13% Caribbean 6% Worldwide 1% 9% Africa 4% Central Ameri… GWP by Geography 3/31/2023 Australasia South America 2%
Track Record of Profitable Growth & Strong Cycle Management » Prudent growth and cycle management balancing growth and risk selection » Sound approach to capitalizing on market dislocation » 10 Year (2013 - 2022) GPW CAGR: 10.3% » 10 Year (2014 - Q1 2023 annualized) combined ratio average: 87.9% Strong Cycle Management 11 International General Insurance Holdings Ltd. GWP $Millions $630 * * IGI Q1 2023 combined ratio
$80.6 $47.7 $39.6 $40.5 $61.5 $161.3 $99.0 $66.5 $99.2 $121.0 $125.0 $15.0 89% 88% 86% 84% 87% 105% 89% 94% 89% 86% 78% 78% 0% 20% 40% 60% 80% 100% 120% 140% $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 160% '12 '13 '14 '15 '16 '17 '20 '22 Q1'23* Specialist Individual Risk Strategy to Protect Capital and Optimize Profitability » 71% individually underwritten as of March 31, 2023; 15% MGA - originated; 14% reinsurance » Class - underwriting profit centers irrespective of geography of risk » In - depth risk assessment of underlying exposure » Facultative reinsurance designed to enhance risk - adjusted returns » Prudent use of treaty reinsurance to protect capital 2021 Hurricane Ida, Winterstorm Uri 2017 Hurricanes Harvey, Irma, Maria 2018 Hurricane Michael, California wildfires '18 '19 Earthquakes / Tsunamis '21 Man - made Weather IGIC Combined Ratio Source: Swiss Re Institute, PCS, Insurance Information Institute, A.M. Best, IGI. $Billions 2022 Hurricane Ian * Source Q1 2023 global insured loss estimate Aon Impact Forecasting Division 12 International General Insurance Holdings Ltd.
Asset Allocation Total Investment Portfolio* Credit Quality Bond Portfolio Conservative Investment Strategy » Investment portfolio managed conservatively to ensure on - going ability to pay claims and improve ROE while avoiding undue risk Total Investment Portfolio of $974.3 Million 3/31/2023 Average Credit Quality: A - Average Duration: 3.1 Years Geographic Diversification Bond Portfolio AAA 1% AA 10% A 58% BBB 30% Non - Investment Grade / Unrated 1% North America 33% UK 2% Europe 24% Australasia 23% Middle East 18% Worldwide 0% * Investment properties are presented under Property & Equipment under U.S. GAAP and are no longer part of the investment portfolio, whereas under IFRS it was included in the investment portfolio 13 International General Insurance Holdings Ltd.
37% 52% 2017 Q1 2023 31% 25% 2017 (1) Data based on case + IBNR reserve development. Q1 2023 IBNR as % of Total Net Reserves Specialty – Long - Tail as % of Total NPW Favourable Reserve Development Prudent Reserving Philosophy Anchored in Conservatism and Balance Sheet Preservation » IBNR reserves reflect growth of specialty long - tail lines (average duration 4 - 7 years) » History of releasing reserves once losses are fully developed » No U.S. casualty exposure $24 $27 $23 $9 $6 $6 $16 $40 $12 15% 17% 16% 5% 3% 2% 5% 11% 11% 2015 2016 2017 2021 2022 Q1 2023 2018 2019 2020 Favorable Development / NPE 14 International General Insurance Holdings Ltd.
Commitment to Social Responsibility and Governance Our purpose: To provide peace of mind in times of uncertainty. This is core to our values, our business, and our corporate character. We have a long track record of supporting our people and our communities. IGI Values are Embedded Throughout the Company Mature governance structure: » Majority independent Board with well - defined committees and charters » Robust corporate policies – subject to regular review » ESG Committee established and meets quarterly reporting to Executive and Board History of community and social support: » Significant investment in support of arts, educational, and health initiatives » Culture of participation and giving back to the communities where our people live and work Long standing commitment to Diversity & Inclusion: » Diversified workforce: culture, gender, religion, race, age, etc. » Fourth consecutive year of support for Lloyds of London ‘Dive In Festival’ supporting D&I in insurance; designated country lead for future ‘Dive In’ events in Jordan Sustainability: » ESG Committee developing strategy including sustainability and climate risk initiatives 15 International General Insurance Holdings Ltd.
Appendix
Selected Financial Data 17 International General Insurance Holdings Ltd. (1) Represents annualized core operating income for the period divided by average shareholders’ equity; Average shareholders’ equity equals the total equity at the reporting period end plus the total equity as of the beginning of the reporting period, divided by 2. (2) Represents annualized net premium earned for the quarter divided by prior year end shareholders’ equity. audited) U.S. GAAP (Unaudited) U.S. GAAP (Un IFRS (Audited) Year Ended December 31, Quarter ended March 31, Year Ended December 31, 2023 2022 2022 2021 2020 2019 2018 2017 ($ in mm) Operating Results: $173.9 $126.4 $582.0 $537.6 $467.3 $349.2 $301.6 $275.1 Gross Written Premiums 39.8 41.7 148.6 104.0 77.4 52.0 56.1 23.6 Underwriting Income $29.3 $23.3 $94.2 $53.0 $35.6 $21.6 $29.5 $0.3 Core Operating Earnings 27.9% 24.7% 23.8% 14.3% 10.3% 7.0% 9.8% 0.1% Core Operating Return on Equity (1) Key Metrics: 45.7% 32.4% 41.9% 51.0% 53.5% 54.8% 46.5% 59.2% Loss Ratio 16.5% 19.8% 18.6% 18.3% 19.2% 21.1% 22.9% 24.7% Policy acquisition expense ratio 16.2% 19.6% 17.9% 17.2% 16.6% 18.2% 19.3% 21.1% G&A expense ratio 78.4% 71.8% 78.4% 86.5% 89.3% 94.1% 88.7% 105.0% Combined Ratio Financial Position: $974.4 $872.4 $958.8 $886.6 $775.3 $604.7 $505.0 $489.6 Investments and Cash Portfolio - - - - - - - - - - - - - - - - Debt 430.2 372.3 411.0 381.1 381.0 312.1 301.2 301.4 Shareholders' Equity $9.98 $8.16 $9.07 $8.38 $8.39 - - - - - - Book Value per Share Select Ratios: 81.1% 74.1% 67.9% 71.1% 72.4% 72.2% 67.4% 58.4% Retention Ratio (NPW / GPW) 102.2% 91.6% 98.8% 94.7% 90.8% 71.6% 60.8% 48.7% Premium Leverage (NPE / Shareholders' Equity) (2) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Debt - to - Total Capitalization Ratio
Summary Income Statement IFRS (Audited) 18 International General Insurance Holdings Ltd. U.S. GAAP (Unaudited) U.S. GAAP (Unaudited) Year Ended December 31, Year Ended December 31, Quarter ended March 31, 2023 2022 2022 2021 2020 2019 2018 2017 ($ in mm) $173.9 $126.4 $582.0 $537.6 $467.3 $349.2 $301.6 $275.1 Gross Written Premiums (32.9) (32.7) (187.0) (155.2) (128.9) (97.1) (98.2) (114.3) Reinsurance Share of Insurance Premiums $141.0 $93.7 $395.0 $382.4 $338.4 $252.2 $203.4 $160.8 Net Written Premiums (35.9) (6.4) (18.6) (43.2) (54.9) (36.6) (20.1) (14.0) Net Change in Unearned Premiums $105.1 $87.3 $376.4 $339.2 $283.5 $215.5 $183.3 $146.7 Net Premiums Earned (48.0) (28.3) (157.6) (173.0) (151.7) (118.1) (85.3) (86.9) Net Loss and Loss Adjustment Expenses (17.3) (17.3) (70.2) (62.2) (54.4) (45.4) (42.0) (36.2) Net Policy Acquisition Expenses $39.8 $41.7 $148.6 $104.0 $77.4 $52.0 $56.1 $23.6 Underwriting Income 12.4 2.1 14.7 10.9 8.5 13.0 9.4 13.6 Net Investment Income (17.0) (17.1) (67.2) (58.2) (46.9) (39.3) (35.4) (30.9) General & Administrative Expenses - - - - (3.4) (4.8) - - Listing Associated Extraordinary Expenses (0.2) (0.6) (1.5) (2.2) (4.4) (1.4) (1.2) (1.8) Other Expenses, net (0.1) 1.9 4.6 0.7 (4.4) - - - Changes in Fair Value of Derivative Financial Liabilities 0.1 (3.5) (3.0) (3.3) Impairment Loss on Financial Assets 1.3 (1.4) (3.5) (3.4) 2.5 5.7 (3.4) 2.6 Gain / (Loss) on Foreign Exchange $36.3 $23.1 $92.7 $48.5 $29.3 $25.3 $25.6 $7.0 Profit Before Tax (2.4) (0.9) (2.9) (1.8) (2.1) (1.7) (0.1) 0.0 Tax Expense $33.9 $22.2 $89.8 $46.7 $27.2 $23.6 $25.5 $7.0 Profit for the Period
Reconciliation – Core Operating Earnings 19 International General Insurance Holdings Ltd. (1) Represents a non - GAAP financial measure as the line item balances reported in the “Summary Income Statement” have been adjusted for the related tax impact. (2) Related to the business combination with Tiberius Acquisition Corp. in March 2020. IFRS (Audited) Year Ended December 31, 2020 2019 2018 2017 ($ in mm) $27.2 $23.6 $25.5 $7.0 Profit For the Period (0.9) (1.0) (1.3) (3.1) Realized Losses / (Gains) on Investments - (0.0) 0.0 0.1 Net Impairment Losses Recognized in Earnings - (1.6) 0.9 - Unrealized Loss (Gain) on Revaluation on Financial Assets (1) 0.3 - - - Expected Credit Losses on Investments - - - (0.1) Unrealized Losses / (Gains) on Investments - - - - Realized Losses / (Gains) on investment properties 2.0 0.3 - - Fair Value Losses / (Gains) on investment properties 1.5 0.4 0.9 (1.0) Fair value (Gain) / Loss on investment properties held through associates 4.4 - - - Changes in Fair Value of Derivative Financial Liabilities (2.3) (4.9) 3.4 (2.6) (Gain) / Loss on Foreign Exchange (Tax Adjusted) (1) 3.4 4.8 - - Listing Associated Extraordinary Expenses (2) $35.6 $21.6 $29.5 $0.3 Core Operating Income U.S. GAAP (Unaudited) Quarter Ended March 31, U.S. GAAP (Unaudited) Year Ended December 31, 2023 2022 2022 2021 $33.9 $22.2 $89.8 $46.7 Profit For the Period (0.1) 0.0 0.7 (0.3) Realized (gain) loss on investments (tax adjusted) (1) (4.2) 1.0 5.6 (1.5) Unrealized (gain) loss on investments (tax adjusted) (1) 0.0 0.8 0.1 0.2 Expected credit losses on investments 0.8 0.0 (0.3) 5.3 Change in the fair value of investment in associates 0.1 (1.9) (4.6) (0.7) Change in fair value of derivative financial liabilities (1.0) 1.1 2.9 3.3 Loss (gain) on foreign exchange (tax adjusted) (1) $29.3 $23.3 $94.2 $53.0 Core Operating Income
For more information: 20 International General Insurance Holdings Ltd. Investor Relations Robin Sidders (Head of Investor Relations) Email: Robin.Sidders@iginsure.com Telephone: +44 2072 200100 Mobile: +44 7384 514785