International General Insurance Company Ltd. (IGI) (Bermuda) has been assigned a financial strength rating of A- (excellent) and an issuer credit rating of "a-" by AM Best Co.

Best has also assigned an issuer credit rating (ICR) of "bbb-" to International General Insurance Holdings Ltd. (IGIH) (Dubai). The outlook for all ratings is stable

The ratings reflect the IGI's excellent risk-adjusted capitalisation, strong operating performance and continuously improving business profile with increasing international presence.

Best believes that IGI's current and prospective risk-adjusted capitalisation is excellent and is expected to remain supportive of its annual projected business growth of 65 percent in 2009. IGI's absolute level of economic capital of $200 million expected in 2008 (as at March 31, 2008) is viewed as strong and is expected to be further improved by retaining a proportion of earnings in the future.

In Best's opinion, IGI's operating performance is likely to remain strong and is projected to be between $20 and $22 million annually over the next two years.

Best expects IGI's prospective return on premium to be sound at approximately 25 percent, a healthy combined ratio of around 85 percent and good investment returns of approximately four percent.

The company's expense ratio is likely to be stable at the level of around 30 percent, while the loss ratio is projected to be around 55 percent to 60 percent in the coming two years.

Best believes that IGI's business profile is continuously improving and is likely to grow in the near future following its on-track international expansion and further diversification of business lines.

In Best's view, the Labuan and the planned Dublin subsidiaries will continue to raise IGI's profile in the Far Eastern and European territories and will further benefit IGI in expanding its business.