How AM Best’s Credit Rating System Helps International General Insurance Holdings Ltd

AM Best confirmed the credit rating of International General Insurance Holdings Ltd. in its annual credit review. This is an indicator of the company’s financial health and an optimistic forecast for the near future. The rating may change if the company faces any financial difficulties. These are the primary elements that could affect the rating.

Financial strength ratings

In the initial three months of the year, AM Best expects excellent underwriting performance from International General Insurance Holdings Ltd. The company is extremely confident of its solid financial standing. In 2022, the company will earn a hefty profit. Additionally, it is expected to strengthen its financial flexibility in 2020. It is likely that the company will eventually list on the Nasdaq stock exchange.

The company has a good liquidity profile and a highly appraised reinsurance panel. AM Best assessed the enterprise risk management for the business as necessary. Stability in underwriting has led to a rise in profitability. The company expects that the underwriting efficiency will continue to grow and the profitability levels will stay the same.

AM Best confirmed the IGI’s long-term issuer rating. The financial strength rating for IGI was attained by AM Best. The ratings reflect IGI’s strong balance sheet as well being a proper enterprise risk management and adequate operating performance.

Credit ratings of issuers that are long-term

AM Best has affirmed the ALR Credit Ratings for IGI. These ratings pertain to IGI, its subsidiaries and affiliates. IGI company, as well as its affiliates as well as its affiliates. These include Chubb Bermuda Insurance Ltd., Chubb Limited, MedPro Ltd. and National Indemnity Company. National Indemnity Company.

The rating of each of the companies reflect their business situation, financial stability, and ability to meet policyholder obligations. AM Best assessed the company’s enterprise risk management (ERM), as it was in line with the requirements. The rating also highlights the strong balance sheets and operating margins. The ratings also highlight the companies’ important role in supporting the global A&H segment.

IGI is a small capital base, but it is well-diversified and has excellent reinsurance panels. Its liquidity profile is excellent and its financial performance was impressive, with an average five-year weighted weighted ratio that was 92% between 2017 to 2021. The expectation is that the company will report impressive results throughout the initial three months of the year, and through 2022. Over the last five years, its underwriting performance is not consistent. However, it has implemented correction measures in order to change its underwriting trends.

Effects of a decline in GE’s credit profile

GE is a world-class company and has a solid profit margin in certain key areas. However, its margins for Power and Renewable Energy are smaller than those of its competitors because of the challenging business environment. But, it has an established position in the market that helps to in overcoming some of the shorter-term problems in these companies.

GE Capital has a long-term issuer default rating (IDR) of BBB+. Although the company has a higher leverage than comparable lending and stand-alone finance firms however, it has solid financial options, as well as an established airline leasing franchise. With intercompany loans, it has access to GE Industrial resources.

GE Capital has $12 billion in intercompany loan and $15 billion in senior secured notes. Leverage for the company’s long-term will be four times higher than financial companies with similar ratings. The leverage will likely stay at the current levels over the medium-term. The company is also exposed to risk related to residual value with regard to leasing aircraft, as well as cyclicality risk.

Outlook

International General Insurance Holdings Ltd was formed in the year 2001. It’s both an expert commercial reinsurer, as well as an insurance company with an international portfolio. It operates in three primary segments: reinsurance, specialty insurance. General third-party liability insurance and casualty insurance are its major business lines. Diversification of the market is apparent in its operations. The management team of the company has years of experience in recruiting top-quality employees. Its balance sheet is strong and the liquidity of its business is sufficient.

IGI offers a diverse portfolio of insurance companies that are special in a wide range of fields, including marine, aviation and engineering. It has been given the provisional authorization to write surplus lines in the U.S. and will start creating surplus lines as of 1 April 2020. The company has established a representative office in Casablanca Finance City, Morocco. The firm has started to provide energy insurance. The company’s operations across the globe include an office in Dubai.

AM Best has assigned an A Financial Strength Rating to IGI. The rating is an indication of IGI’s stable outlook with a strong capitalisation as well as prudent reserves policies. It anticipates IGI will deliver solid underwriting outcomes in the next months. IGI’s broad business portfolio and strong underwriting discipline have also been praised from AM Best.

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