The Impact of AM Best Ratings on the Financial Stability of International General Insurance Holdings Ltd

AM Best confirmed the credit rating of International General Insurance Holdings Ltd. during its annual rating review. Its strong financial position and its positive outlook are reasons for this rating. However, the score could change if the company faces some financial problems. Here are the key factors that could have an impact on the ratings.

Financial strength ratings

AM Best anticipates strong underwriting outcomes by International General Insurance Holdings Ltd. for the first nine months. The company is extremely confident of its financial stability. The company is expected to be profitable in 2022. will be able to generate substantial profits. The company is expected to enhance its financial stability by 2020. It is likely that the company will eventually list on the Nasdaq stock exchange.

Excellent financial profile. Highly rated panel Reinsurance. AM Best assessed the enterprise risk management strategy of the firm as essential. The company’s underwriting performance has maintained its stability and profit margin has increased. The company expects that the performance of its underwriting will continue to improve and that the profitability remains the same.

AM Best confirmed the IGI’s rating as a long-term issuer. It also confirmed the financial strength rating of IGI in addition. These ratings are an indication of the solid financial position and sound risk management. It also reflects good operating performance.

Long-term issuer credit ratings

Associated Long-Term Issuer Credit Ratings of IGI have been confirmed by AM Best. These ratings pertain to the IGI company, as well as its subsidiaries as well as its affiliates. These include Chubb Bermuda Insurance Ltd., Chubb Limited, MedPro Ltd. as well as the National Indemnity Company.

The rating of each of these companies reflect their company profile, financial strength and their ability to fulfill 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 strength of balance sheets and operating margins. Furthermore, the ratings are a reflection of the company’s crucial role in supporting the world’s A&H segment.

Even though IGI’s capital pool is modest, it is able to provide excellent diversification as well as a reinsurance panel. Its liquidity profile has been a strong. The company reported an average five-year combined ratio of 92% from 2017 to 2021. It is anticipated that the company will deliver strong results during the beginning of this year, and in 2022. For the past five years the underwriting results was inconsistent. The company has made corrective measures to reverse the company’s subwriting trends.

The credit profile of GE is impacted by deterioration in credit

GE has an international presence and generates solid margins in certain key areas. However, its profit margins are lower than those of competitors due to challenging industry situations in its Power and Renewable Energy businesses. But, it has established market share and can help alleviate some of the current issues in these industries.

The long-term IDR rating of BBB+ pertains to issuer default ratings (IDR). However, despite having a higher leverage than other similarly-rated lending and stand-alone finance firms but it also has good financing options as well as an existing air leasing franchise. It has access to GE Industrial facilities through intercompany loans.

The company’s long-term debt comprises 15 billion in senior secured notes, 10 billion dollars of factored receivables, and the amount of $12 billion intercompany loan that are owed to GE Capital. Leverage for GE’s long-term debt is thought to be four times that of similarly rated finance firms. It is likely that the leverage will stay at the current levels for the foreseeable future. It is also subject to the risk of residual value in the case of leasing aircraft, as well as cyclicality risk.

Outlook

Established in 2001, International General Insurance Holdings Ltd (IGI) is an expert commercial reinsurer as well as a special insurance company with a vast range of commercial. Its primary business segments are including reinsurance, specialty insurers and financial institution. General third-party liability as well as casualty insurance are the company’s primary business divisions. Its offerings are varied both in terms of its products and markets, and its management team has a lengthy tradition of hiring top employees. The company’s liquidity is adequate and the balance sheet is strong.

IGI is a writer of a broad range of special insurance products that spans a range of sectors, including engineering, marine and aviation. It has been given provisional approval to write excess lines within the U.S. and will start creating surplus lines as of April 1, 2020. It also has opened Casablanca Finance City in Morocco as its representative. The firm has started to offer energy insurance. One of its global operations comprises a Dubai branch.

AM Best has assigned an A Financial Strength Rating to IGI. This rating indicates its stability outlook, solid capitalisation, as well as a prudent reserve policy. IGI is expected to deliver impressive underwriting performance over the coming months. The company’s well-diversified business profile and strong underwriting discipline have also been praised from AM Best.

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