International General Insurance Holdings Stock

International General Insurance Holdings Ltd., together with its subsidiaries, provides specialty insurance and reinsurance solutions worldwide.

The company provides its solutions in over 200 countries and territories. It underwrites a diversified portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, marine, contingency and treaty reinsurance. The company’s underwriting focus is supported by exceptional service to our clients and brokers.

The company manages its risks through a variety of means, including contract terms, portfolio selection and underwriting and geographic diversification.

The company’s primary underwriting subsidiary, IGI Bermuda, is a class 3B insurance and reinsurance company regulated by the BMA. IGI Bermuda’s subsidiary, IGI UK, underwrites UK and international domiciled business and risks that are predominantly sourced through London brokers and is regulated by the PRA and the FCA. The company underwrites insurance in the EU through its Malta subsidiary, IGI Europe, which is regulated by the Malta Financial Services Authority (MFSA). The company maintains its centralized operational functions in Amman, Jordan, complemented by offices in London and Dubai and our Asia Pacific hub in Kuala Lumpur, Malaysia. The company is licensed as a Tier 2 reinsurer in Labuan, Malaysia and have a representative office in Casablanca, Morocco. The company also operates in Norway through its Norway-based managing general agency Energy Insurance Oslo AS. The company’s presence in various geographic locations provides it with access to global business in profitable niche markets.

Strategy

The key elements of the company’s strategy are to expand its presence in existing markets; maintain its conservative investment strategy; expand its presence to new specialty lines of business and markets; and continue to purchase conservative reinsurance coverage.

Segments

The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance.

Specialty Long-tail segment includes its professional lines (non-U.S.) business, which includes its professional indemnity, directors and officers, legal expenses and other casualty lines of business, its financial institutions line of business, its marine liability line of business and its inherent defects insurance line of business. The lines of business in the company’s specialty long-tail segment are generally characterized by claims that are often reported and ultimately paid or settled years, or even decades, after the related loss events occur. As a general rule, estimates of accident year or underwriting year ultimate losses for long-tail businesses are notably more uncertain than those for short-tail businesses.

Specialty Short-tail segment includes the company’s energy (upstream, downstream, power and renewable), property, construction and engineering, political violence, ports and terminals, marine cargo, contingency and general aviation lines of business. The lines of business in the company’s specialty short-tail segment generally include exposures for which losses are usually known and paid within a relatively short period of time after the underlying loss event has occurred. The underlying loss events typically tend to be of lower frequency and higher severity.

Reinsurance segment includes the company’s inward reinsurance treaty business.

In addition, the company has a corporate function (Corporate), which includes the activities of the parent company, and which carries out certain functions, including investment management.

Specialty Long-Tail

Professional Lines

The company’s professional lines of business represented approximately 32.9% of its GWP for the year ended December 31, 2022.

The company primarily underwrites professional lines risks from Europe and the UK on a primary basis, meaning that loss up to a limit is covered primarily, or on an excess-of-loss basis.

Financial Institutions

The company’s financial institutions line of business represented approximately 4.9% of its GWP for the year ended December 31, 2022.

The financial institutions business covers a range of risks including bankers’ blanket bond, financial institutions professional indemnity, financial institutions directors’ & officers’ liability, plastic card fraud, electronic computer crime, vault risk, cash in transit, commercial crime and fidelity guarantee, and money.

Marine Liability

The company’s marine liability line of business represented approximately 0.6% of its GWP for each of the year ended December 31, 2022.

The company’s marine liability portfolio covers third party liabilities related to marine risks, including ship repairer’s liability, ship owner’s protection and indemnity, Wharfinger’s liability, Stevedore’s liability, Charterer’s liability and port and terminal excess liability. The company focuses on marine liability portfolio predominantly on Asia and Europe.

Inherent Defects Insurance

Our inherent defects insurance line of business represented approximately 1.5% of the company’s GWP for the year ended December 31, 2022.

The company’s inherent defects insurance portfolio covers inherent defects insurance and insurance backed guarantee risks. The company focuses its inherent defects insurance portfolio predominantly on the U.K and Europe.

Specialty Short-tail segment

Energy

The company’s energy businesses represented approximately 20.2% of the company’s GWP for the year ended December 31, 2022. The company has a lead capability in both upstream energy and downstream energy (oil and gas, petrochemicals, refining, conventional power and renewable energy), with a maximum exposure of $75 million and $50 million for any single risk in upstream and downstream energy, respectively. We have a strong presence in major energy insurance hubs and in 2018 began underwriting renewable energy.

The company’s upstream energy team covers the oil and gas industry both offshore and onshore. The company’s industry knowledge and products allow us to service a broad spectrum of clients involved with the construction, exploration and production, operating, contracting and decommissioning industries. The company’s focus is on operators and companies with proven track records and strong risk management policies worldwide, with a particular focus in the Middle East, the wider Afro-Asian region and Scandinavia, excluding named windstorms in the U.S. Gulf of Mexico area. The company has a strong presence in major energy insurance hubs, namely the United Kingdom, Norway, the United Arab Emirates and Malaysia. The company’s clients in the upstream energy line of business include major oil and gas corporations, national and state-owned oil and gas operations, independent oil and gas companies, integrated energy companies, contractors and service industry companies.

The company’s downstream energy business provides expert insurance for a wide range of onshore energy plants around the world, with a particular focus in the Middle East, Afro-Asian, European and Latin American regions. The company underwrites a portfolio of predominantly operating risks in the onshore energy sector, with an emphasis on operators and companies with proven track records and strong risk management policies, with a geographically diversified portfolio. The company’s clients in the downstream energy line of business include petrochemical operators, oil refineries, utilities, independent power producer (IPP) companies and energy pipeline operators. We insure a spread of operational risks including machinery breakdown and property damage, and associated loss of revenues.

The company underwrites renewable energy. The company’s renewable energy business provides expert insurance for a wide range of risks, including wind power (onshore and offshore), solar power (photovoltaic, concentrated, thermal and floating), bioenergy (biomass, biogas, biofuels and waste-to-energy), hydro, geothermal, wave & tidal, battery storage, and other emerging technologies, e.g. energy efficiency. We cover the full life-cycle of a renewable energy project, namely construction, marine and inland transit, operational and decommissioning, including associated loss of revenues, liabilities, as well as natural catastrophe risks. The company writes business on a worldwide basis.

Property

The company’s property offering includes coverage for physical damage, machinery breakdown, business interruption and forestry. The company covers a wide variety of risks from large hotels to industrial manufacturing. The company’s clients include a wide range of businesses involved in sectors such as leisure, commercial and industrial property, manufacturing, heavy industry and infrastructure, civil works and communications.

Construction and Engineering

The company’s construction and engineering business represented approximately 5.4% of its GWP for the year ended December 31, 2022.

The company’s construction and engineering line of business provides coverage with respect to construction all risks (CAR), civil engineering completed risks (CECR), machinery breakdown and business interruption (MB/BI), erection all risks (EAR) and contractors’ plant and equipment (CPE/CPM). The company focuses its construction and engineering portfolio on construction all risks and erection all risks.

Political Violence

The company’s political violence portfolio represented approximately 2.0% of its GWP for the year ended December 31, 2022.

The company’s political violence line of business focuses on comprehensive sabotage and terrorism, strikes, riots, civil commotions, malicious damage, missing mutiny, coup d’etat, insurrection, revolution, rebellion, war and civil war. The company’s coverage generally includes physical loss or damage, business interruption, debris removal and third party liability following a political violence peril.

Ports and Terminals

The company’s ports and terminals business represented approximately 4.7% of its GWP for the year ended December 31, 2022.

The company’s current offerings in this line of business include the handling of equipment, damage to port property, business interruption and damage to port craft, marine trade, liabilities to authorities and other liabilities. The company primarily serves port authorities, terminal operators, stevedores, warehouse operators and depot operators. This also includes a variety of organizations specializing in other aspects of the shipping industry, including freight forwarders, non-vessel operating common carriers, ship managers, ship agents and ship brokers.

General Aviation

The company’s general aviation business represented approximately 3.8% of its GWP for the year ended December 31, 2022.

The company’s general aviation portfolio covers worldwide commercial and industrial operations, including coverage for hull, hull and spares, war and allied perils, third party legal liability, general aviation premises, spares, passenger legal liability, personal accident and general aviation hangar keepers. The company focuses its general aviation portfolio on South and Central America, Europe, Asia and Africa.

Marine Cargo

The company’s marine cargo line of business represented approximately 1.8% of its gross written premium for the year ended December 31, 2022.

The company’s marine cargo portfolio covers general cargo, oil, machinery and equipment, project cargo, war on land and freight forwarders. The company covers cargo for physical loss or damage while in transit by air, land or sea for importers, exporters and manufacturers. The company has a worldwide focus for our marine cargo portfolio.

Contingency

The company’s contingency line of business represented approximately 1.9% of its gross written premium for the years ended December 31, 2022.

The company’s contingency portfolio covers all risks event cancellation, non-appearance, event terrorism and political violence perils, named peril cancellation, prize indemnity and bespoke non-physical damage business interruption, in each case excluding communicable disease. The company has a worldwide focus for our contingency portfolio.

Reinsurance segment

The company’s reinsurance business represented approximately 5.3% of its GWP for the year ended December 31, 2022.

The company’s reinsurance portfolio includes primarily underwritten programs related to the marine liability, energy, property, engineering, motor, casualty and aviation sectors, and is concentrated in the MENA region and the wider Afro-Asian and European markets. The company’s reinsurance portfolio is primarily written on a non-proportional or excess-of-loss basis. Property reinsurance forms the most significant portion of the company’s overall treaty reinsurance portfolio.

Platform

The company primarily underwrites business through IGI Bermuda, IGI UK and IGI Europe (which are subsidiaries of IGI Bermuda). Additionally, the company issues Labuan-governed policies (through a capitalized Malaysian branch of IGI Bermuda) and is also licensed to issue Islamic re-takaful policies. The platforms through which IGI issues these policies are discussed below.

IGI Bermuda

IGI’s Bermuda-governed policies are issued pursuant to a license held by IGI Bermuda. The underwriting operations for the Bermuda-governed policies are located in IGI Underwriting Co. Ltd. (IGI Underwriting), which is registered and based in Amman, Jordan. When a Bermuda-governed policy is sourced through IGI’s office in the United Kingdom, the policy is referred to the office in Amman for formal underwriting approval. IGI Dubai also has underwriting authority to underwrite Bermuda-governed policies through an underwriting agency agreement, subject to authority limits, and IGI Morocco operates a representative office of IGI Bermuda in Casablanca which is authorized to issue Bermuda governed policies. IGI Bermuda has three additional wholly-owned subsidiaries: Specialty Mall Investment Co., which focuses on real estate properties, development, and leasing, IGI Services Limited, which focuses on owning and chartering aircraft and EIO, writing a portfolio of energy and construction business in Norway.

IGI UK

IGI’s UK-governed policies are primarily underwritten by IGI UK based in London. IGI UK serves as an important point of contact for brokers based in London, through whom IGI sources the majority of its business. IGI also owns North Star, a specialty underwriting agency for writing marine liability and trade, war and special risks policies and which is based alongside IGI UK in IGI’s London office.

IGI Labuan Branch

International General Insurance Co. Ltd — Labuan Branch (the Labuan Branch), a second-tier reinsurer registered in Labuan, Malaysia, is licensed to issue Labuan law-governed policies, including Islamic law-compliant re-takaful policies. The Labuan Branch obtained the approval of the Labuan Financial Services Authority to engage the Labuan Financial Services Authority’s Shariah Supervisory Council as its internal Shariah advisory board, which is permitted under the Directive on Islamic Financial Business in the Labuan International Offshore Financial Center. IGI’s Labuan-based operation is supported by an Asia Pacific hub in Kuala Lumpur, which also serves as a point of contact for local brokers in Asia. Both Labuan-governed policies and Bermuda-governed policies sourced through the Labuan Branch are referred to IGI’s Amman office for underwriting approval.

IGI Europe

IGI’s Europe-governed policies are issued pursuant to a license held by IGI Europe. IGI Europe was acquired in 2021 in order to continue to underwrite business throughout the European Economic Area (EEA) countries following the U.K. decision to withdraw from the EU (Brexit).

Representation and Intermediate Offices (Non-Risk Bearing Companies)

IGI Morocco

IGI Bermuda operates a representative office of IGI Bermuda in Casablanca, which is regulated by Casablanca Finance City. Our Casablanca operations constitute the company’s Africa hub and provide access to the Northern, Central and West African markets.

IGI Dubai

IGI Dubai is authorized as a category four entity by the Dubai Financial Services Authority and it operates as a marketing and intermediate office of IGI Bermuda in Dubai. The company’s Dubai operations constitute our Middle East hub and provide access to the MENA region, including the Gulf Cooperation Council markets.

IGI Nordic AS

IGI Nordic AS is a Norway-based managing general agency writing a portfolio of energy and construction business in Norway on behalf of IGI Bermuda.

Marketing and Distribution

The company sources its business primarily through brokers, with 61% of 2022 premiums coming from five producing brokers. Given the company’s regional focus, it also makes use of a range of smaller, more regional brokers, such as NASCO, UIB, Fenchurch Faris and Chedid Re. The company’s largest broker relationships as measured by gross written premiums are with Arthur J. Gallagher, Aon, Willis, Lockton, Marsh and Howden Broking Group.

Claims Management

The company offers prompt and professional claims service to its policyholders and service providers. The company’s claims department works closely with its underwriting team in order to achieve a synchronized and efficient process for managing claims. The company’s systems allow it to review real-time, detailed information on its current claims activity across it.

The key responsibilities of our claims management department are to:

process, manage and resolve reported insurance or reinsurance claims efficiently and accurately in order to ensure the proper application of intended coverage, reserve in a timely fashion for the probable ultimate cost of both indemnity and expense and make timely payments in the appropriate amount on those claims for which we are legally obligated to pay;

select appropriate counsel and experts for claims and manage claims-related litigation and regulatory compliance;

contribute to the underwriting process by collaborating with both underwriting teams and senior management in terms of the evolution of policy language and endorsements and providing claim-specific feedback and education regarding legal activities;

contribute to the analysis and reporting of financial data and forecasts by collaborating with the finance and actuarial functions relating to the drivers of actual claim reserve developments and potential for financial exposures on known claims; and

support the company’s marketing efforts through the quality of its claims service and in person support to its underwriting offices globally.

Investments

The company’s investments include a sizeable portfolio of high quality and diversified fixed income securities, term deposits and to a lesser extent a modest allocation to equities, alternative funds and real estate holdings.

Regulation

IGI Bermuda is registered as a Class 3B insurer with the Bermuda Monetary Authority (BMA) in Bermuda and is regulated as such under the Insurance Act.

A subsidiary of IGI, International General Insurance Company (UK) Ltd. (IGI UK), is authorized by the Prudential Regulation Authority (PRA) to effect and carry out (re)insurance contracts in the U.K. in all classes of general (non-life) business and is regulated by both the PRA and the Financial Conduct Authority (FCA).

Restrictions on Dividend Payments: The company law of England and Wales prohibits English companies, including IGI U.K., from declaring dividends to their shareholders unless they have profits available for distribution.

Solvency II Regime Reports and Returns: Under the Solvency II regime, IGI U.K. is required to disclose to the PRA quarterly and annual Quantitative Reporting Templates (QRTs) and, at least every three years, a narrative Regular Supervisory Report (RSR).

Insurance Distribution Directive: In October 2018, the Insurance Distribution Directive (‘IDD’) replaced the Insurance Mediation Directive (‘IMD’). While IMD only applied to insurance intermediaries, IDD applies to all those who conduct insurance distribution to clients, such as insurers (i.e., IGI U.K.), insurance intermediaries, and firms such as banks or retailers who provide insurance alongside their primary business and whose clients range from individual consumers to multinational organizations.

IGI is registered in the Dubai International Financial Center (DIFC) and is subject to Dubai Financial Services Authority (DFSA) supervision for the purpose of anti-money laundering compliance in the DIFC. Under Article 70(3) of the DIFC Regulatory Law, the DFSA has jurisdiction for the regulation of anti-money laundering in the DIFC and is the relevant authority that licenses and supervises Relevant Persons in the DIFC for the purposes of the United Arab Emirates (UAE) Federal legislation relating to money laundering, terrorist financing, the financing of unlawful organizations or sanctions non-compliance.

IGI, the company’s wholly owned subsidiary, is organized under the laws of the DIFC. The DIFC operates within a unique legal and regulatory framework that is distinct from those applicable in the rest of the United Arab Emirates (the UAE).

Following its acquisition in June 2021, IGI Europe is subject to regulation by the MFSA. The adequacy of the company’s Own Funds to meet the SCR is monitored on an ongoing basis and particularly in the event of an anticipated or actual material impairment in the level of Own Funds.

International General Insurance Co. Ltd. — Labuan Branch (the ‘Labuan Branch’), a branch of IGI for purposes of engaging in business in Malaysia, is licensed by the Labuan Financial Services Authority as a ‘second-tier offshore reinsurer,’ which means that local brokers might only offer reinsurance business to IGI after first offering it to first-tier reinsurers.

The company’s subsidiary, I.G.I Underwriting / Jordan ‘Exempted’ (IGI Underwriting), which is based in Amman, Jordan, is subject to regulation of the Insurance Supervision Department of Central Bank of Jordan.

As a licensed offshore entity, IGI Underwriting is required to update certain information with the Jordan Insurance Directorate annually, including information regarding the business conducted by IGI Underwriting during the year; the names of insurance and reinsurance companies with which IGI Underwriting has concluded binding authorities and the date of termination of each authority; a valid insurance policy possessed by IGI Underwriting; and any other data, documents or information required by the Director General of the Jordan Insurance Directorate.

A representative office of International General Insurance Co. Ltd., which is based in Morocco and serves as the company’s Africa hub, is regulated by the Casablanca Finance City.

History

International General Insurance Holdings Ltd. was founded in 2001.