AM Best has affirmed the credit ratings of Bermudian-based International General Insurance Holdings Ltd and its subsidiaries.

The ratings agency affirmed the financial strength rating of A (Excellent) and the long-term issuer credit ratings of “a” (Excellent) of Bermudian-based International General Insurance Co Ltd, International General Insurance Company (UK) Ltd, and Malta’s International General Insurance Company (Europe) PLC.

Concurrently, AM Best has affirmed the long-term ICR of “bbb” (Good) of International General Insurance Holdings Ltd.

The outlook of these credit ratings is stable.

The ratings reflect IGI’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

AM Best said the ratings of IGICL, IGIUK and IGI Europe reflected their strategic importance to IGI as subsidiaries.

IGI’s balance sheet strength assessment is underpinned by its consolidated risk-adjusted capitalisation being assessed at the strongest level, as measured by Best’s capital adequacy ratio.

The agency said the group’s balance sheet strength was further supported by its strong liquidity position and conservative investment portfolio.

IGI does not have any debt leverage and benefits from additional financial flexibility from its listing on the Nasdaq.

AM Best said IGI had a track record of strong operating performance, illustrated by a five-year (2018-2022) weighted average return-on-equity ratio of 11.6 per cent.

At year-end 2022 and half-year 2023, IGI reported robust underwriting profits, with combined ratios below 80 per cent in both periods (compared with a five-year average of 87.2 per cent over 2018-2022).

Prospectively, the group is expected to maintain its strong profitability as it continues to apply its prudent underwriting approach and benefit from the hard market cycle in its key segments, AM Best said.

The agency said the group had been expanding its business volumes in recent periods, evident by a compound annual growth rate of 17.9 per cent over the past five years (2018-2022).

At half-year 2023, IGI reported 21.6 per cent revenue growth, further improving its product and geographic diversification, notably by increasing its business in North America, AM Best said.