International General Insurance Holdings Ltd. (“IGI” or the
“Company”) (NASDAQ: IGIC) today reported condensed and unaudited
financial results for the first quarter 2021.
Highlights for the first quarter 2021 include:
(in millions of U.S. Dollars, except
percentages and per share information)
Quarter Ended March
31,
2021
2020
Gross written premiums
$100.6
$99.2
Net premiums earned
$82.3
$68.5
Net underwriting results
$27.6
$23.2
Total investment income, net
(1)
$4.0
$2.6
Profit (loss) for the period
$14.5
($0.9)
Combined ratio (2)
84.6%
81.3%
Earnings per share (Basic and
Diluted) (3)
$0.30
($0.02)
Return on average equity
(annualized) (4)
14.7%
(1.1%)
Core operating income (4)
$14.7
$13.4
Core operating earnings per share
(4) (Basic and Diluted)
$0.30
$0.35
Core operating return on average equity
(annualized) (4)
14.9%
16.4%
- See Note (1) in the “Notes to the Condensed Consolidated
Financial Statements (Unaudited)” below.
- See “Supplementary Financial Information” below.
- See Note (3) in the “Notes to the Condensed Consolidated
Financial Statements (Unaudited)” below.
- See the section titled “Non-IFRS Financial Measures”
below.
IGI Chairman and CEO Mr. Wasef Jabsheh said, “We have had a very
solid start to 2021 on the back of our strong performance in 2020.
Our results for the first quarter of 2021 clearly illustrate the
strength of our underwriting capabilities and our agility in
managing the portfolio to maximize returns. While rate momentum
remained robust with increases of more than 15% across our
portfolio during the first quarter, we saw the pace of rate
acceleration slowing down in certain lines. Gross written premiums
were broadly in line with the first quarter of 2020, but more
significantly, net earned premiums were up 20.0% with a combined
ratio of 84.6%.”
“We recently announced our entry into the contingency market,
which you’ll know from the headlines has experienced significant
disruption globally as a result of the COVID-19 pandemic.
Consistent with our underwriting philosophy, we will grow this book
carefully and thoughtfully. We are also close to completing the
process of establishing a European platform in Malta and we expect
to be able to start writing business inside the European Union in
the near future.”
“Having completed our first full year as a U.S. listed company,
I am very pleased with our progress, having grown our book value
per share by 15.1% from March 31, 2020. We look forward to
continuing our long track-record of success in generating value for
our shareholders.”
Results for the Quarters Ended March 31, 2021 and
2020
Net profit for the quarter ended March 31, 2021 was $14.5
million, compared to a net loss of $0.9 million for the quarter
ended March 31, 2020.
Core operating income, a non-IFRS measure defined below, was
$14.7 million for the first quarter of 2021 compared to $13.4
million for the comparable quarter in 2020, primarily the result of
a higher level of underwriting income. Despite the $1.3 million
increase in core operating income, the core operating return on
average equity (annualized) decreased to 14.9% for the quarter
ended March 31, 2021, compared to 16.4% in the same period of 2020
as a result of the increase in average shareholders’ equity from
$328.1 million at March 31, 2020 to $395.3 million at March 31,
2021.
Underwriting Results
Gross written premiums were $100.6 million for the quarter ended
March 31, 2021, compared to $99.2 million for the quarter ended
March 31, 2020. While market conditions remained positive, the
Company also continued to further refine its existing portfolio,
achieving improved terms and conditions.
The claims and claims expense ratio was 50.0% for the quarter
ended March 31, 2021, compared to 46.3% for the first quarter of
2020. This included current accident year net catastrophe losses of
$0.1 million or 0.2 points for the quarter ended March 31, 2021,
compared to $0.8 million or 1.2 points for the quarter ended March
31, 2020. Prior year development on loss reserves was favorable
amounting to $4.3 million or 5.3 points for the quarter ended March
31, 2021 driven by improvement in prior year loss reserves in the
professional indemnity and financial institution lines of the
Long-tail segment and the property line of the Short-tail segment.
This compares to favorable development of $10.0 million or 14.6
points for the quarter ended March 31, 2020.
The combined ratio for the quarter ended March 31, 2021 was
84.6%, compared to 81.3% for the first quarter of 2020, which had
benefitted from the weakening of the Pound Sterling against the
U.S. dollar.
Segment Results
The Long-tail Segment, which represented approximately
38% of the Company’s gross written premiums for the quarter ended
March 31, 2021, includes all professional and financial lines
written by the Company, including D&O, professional indemnity,
financial institutions, legal expenses, as well as surety, marine
liability, inherent defects insurance, and general third-party
liability (non U.S. casualty).
Gross premiums written for the first quarter of 2021 in the
Long-tail Segment were $38.2 million, a slight increase from the
$37.8 million in the first quarter of 2020. Net written premiums
for the quarter ended March 31, 2021 were $30.1 million, compared
to $34.4 million in the comparable quarter in 2020. The net
underwriting result for this segment was $12.7 million for the
first quarter of 2021, compared to $12.6 million in the first
quarter of 2020.
The Short-tail Segment, which represented approximately
53% of the Company’s gross written premiums for the quarter ended
March 31, 2021, includes energy, property, general aviation, ports
and terminals, marine trades, marine cargo, construction and
engineering, and political violence.
Gross premiums written for the first quarter of 2021 in the
Short-tail Segment were $53.4 million, compared to $54.4 million in
the first quarter of 2020. Net written premiums for the quarter
ended March 31, 2021 were $38.0 million, compared to $37.8 million
in the comparable quarter in 2020. The net underwriting result for
this segment was $13.4m for the first quarter of 2021, an increase
of $5.0 million from the first quarter of 2020, primarily driven by
an increase in net premiums earned of $4.5 million and a $0.9
million lower level of claims and claims adjustment expenses.
The Reinsurance Segment, which represented approximately
9% of the Company’s gross written premiums for the quarter ended
March 31, 2021, comprises the Company’s inwards reinsurance
portfolio.
Gross and net premiums written for the first quarter of 2021 in
the Reinsurance Segment were $9.0 million, compared to $7.0 million
in the first quarter of 2020. The net underwriting result for this
segment was $1.5 million for the first quarter of 2021, compared to
$2.2 million in the first quarter of 2020 primarily due to a $1.9
million higher level of claims and claims adjustment expenses
partially offset by a $1.3 million higher net premium earned in the
first quarter of 2021 compared to the first quarter of 2020.
Foreign Exchange Losses
The loss on foreign exchange for the quarter ended March 31,
2021 was $1.2 million compared to a loss of $11.9 million for the
first quarter of 2020. The loss was primarily driven by currency
revaluation recorded in Euro denominated cash, investments, and
insurance receivable balances led by the weakening in the Euro
against the U.S. Dollar as of March 31, 2021 versus December 31,
2020, whilst other major operating currencies - the Pound Sterling
and Australian Dollar - remained relatively flat compared to
year-end 2020. The higher level of loss in the first quarter of
2020 was driven by weakening in all three of IGI’s other major
operating currencies, U.S. Dollar apart, notably the Pound
Sterling, Euro, and the Australian Dollar relative to the U.S.
Dollar at the start of the COVID-19 global pandemic in the first
quarter of 2020.
Investment Results
Total investment income was $5.1 million for the first quarter
of 2021, compared to a loss of $2.0 million in the first quarter of
2020, the latter including significant unrealized revaluation
losses on investments as a result of a sharp global market
dislocation caused by the COVID 19 pandemic in the first quarter of
2020. Total investment income, net (which excludes realized and
unrealized gains and losses, expected credit losses on investments,
and the share of profit from associates) was $4.0 million and $2.6
million for the quarters ended March 31, 2021 and 2020,
respectively. This represented an annualized investment yield of
2.1% for the first quarter of 2021, compared to 1.7% for the
corresponding period in 2020 whereby the increase is mainly driven
by higher yields on the Company’s fixed income bonds portfolio.
Cash, cash equivalents and term deposits totaled $297.1 million
at March 31, 2021, representing 38.0% of the total investments and
cash portfolio, compared to $305.6 million at December 31, 2020,
when it represented 39.4%. The total investment and cash portfolio
includes cash, cash equivalents and term deposits (cash portfolio),
investments, investment in associates, and investment
properties.
Total Equity
Total equity as at March 31, 2021 was $396.0 million compared to
$394.6 million at December 31, 2020. The movement in Total Equity
during the quarter ended March 31, 2021 is illustrated below:
(in millions of U.S. Dollars)
Quarter Ended March
31,
2021
Total Equity at beginning of period at
January 1, 2021
$394.6
Profit for the period
$14.5
Net change in fair value reserves for
investments through other comprehensive income
($5.0)
Issuance of restricted share awards
$0.2
Cash dividends declared during the
period
($8.3)
Total Equity at March 31, 2021
$396.0
Total Equity includes $9.2 million of warrants issued and
outstanding at March 31, 2021 and December 31, 2020. On April 12,
2021, the Division of Corporate Finance and the Office of the Chief
Accountant of the Securities and Exchange Commission (the “SEC”)
released a “Staff Statement on Accounting and Reporting
Considerations for Warrants Issued by Special Purpose Acquisition
Companies (SPACs)”. The statement focused on guidance under U.S.
Generally Accepted Accounting Principles (US GAAP) considered in
determining whether to classify warrants as equity or as a
liability measured at fair value with changes in fair value
reported in earnings. The Company does not report under US GAAP.
The Company is currently in the process of evaluating the
applicability of, and whether there is any impact of, the statement
on its accounting, including classification, for warrants on its
IFRS financial statements.
Book value per share was $8.71 at March 31, 2021, representing a
marginal increase from $8.69 at December 31, 2020, and up 15.1%
from $7.57 at March 31, 2020.
International General Insurance Holdings Ltd. Condensed
Consolidated Statements of Income (Unaudited)
Quarter Ended
March 31,
(in millions of U.S. Dollars, except for
percentages and per share data)
2021
2020
Gross written
premiums.......................................................
$100.6
$99.2
Reinsurers’ share of insurance
premiums..........................
($23.5)
($20.0)
Net written
premiums.........................................................
$77.1
$79.2
Net change in unearned
premiums.....................................
$5.2
($10.7)
Net premiums
earned..........................................................
$82.3
$68.5
Net claims and claim adjustment
expenses........................
($41.2)
($31.7)
Net policy acquisition
expenses...........................................
($13.5)
($13.6)
Net underwriting
results………………………………………………
$27.6
$23.2
Net investment income
(1)………………………………….……………
$5.0
($2.0)
Share of profit from associates
(1)……….…………………………..
$0.1
-
General and administrative
expenses.................................
($15.0)
($10.4)
Other expenses, net
(2)..........................................................
($0.7)
($0.3)
Listing related
expenses.......................................................
-
($2.5)
Bargain Purchase
-
$2.4
Loss on foreign exchange
....................................................
($1.2)
($11.9)
Profit (loss) before
tax.........................................................
$15.8
($1.5)
Income tax
............................................................................
($1.3)
$0.6
Profit (loss) for the
period...................................................
$14.5
($0.9)
Basic and diluted earnings per share
attributable to equity
holders(3)……………………………………………………………
$0.30
($0.02)
International General Insurance Holdings Ltd. Condensed
Consolidated Statements of Financial Position (Unaudited)
(in millions of U.S. Dollars)
As at
March 31,
2021
As at
December 31, 2020
ASSETS
Cash and cash equivalents
$107.7
$133.4
Term deposits
$189.4
$172.2
Insurance receivables
$156.1
$166.6
Investments (4)
$452.4
$438.1
Investments in associates (4)
$11.7
$11.6
Reinsurance share of outstanding
claims
$186.4
$187.5
Reinsurance share of unearned premiums
$44.3
$50.1
Deferred excess of loss premiums
$14.5
$17.1
Deferred policy acquisition costs
$54.1
$55.2
Other assets
$10.4
$9.5
Investment properties (4)
$19.9
$20.0
Property, premises and equipment
$12.9
$13.2
Intangible assets
$5.8
$4.7
TOTAL ASSETS
$1,265.6
$1,279.2
LIABILITIES
Gross outstanding claims
$513.7
$492.3
Gross unearned premiums
$266.4
$277.2
Insurance payables
$57.2
$83.5
Other liabilities
$23.1
$20.5
Deferred tax liabilities
$0.1
$0.1
Unearned commissions
$9.1
$11.0
TOTAL LIABILITIES
$869.6
$884.6
EQUITY
Common shares at par value
$0.5
$0.5
Share premium
$157.9
$157.6
Warrants
$9.2
$9.2
Foreign currency translation reserve
($0.4)
($0.3)
Fair value reserves
$13.1
$18.2
Retained earnings
$215.7
$209.4
TOTAL EQUITY
$396.0
$394.6
TOTAL LIABILITIES AND EQUITY
$1,265.6
$1,279.2
International General Insurance Holdings Ltd. Supplementary
Financial Information – Condensed Consolidated Statements of
Income (Unaudited)
Quarter Ended
March 31,
2021
2020
Ratios
Claims and claims expense ratio
(a)........................
50.0%
46.3%
Policy acquisition expense ratio
(b).................................
16.4%
19.9%
General and administrative expense ratio
(c)................
18.2%
15.1%
Expense ratio
(d).................................................
34.6%
35.0%
Combined ratio
(e)...............................................
84.6%
81.3%
- Represents net claims and claim adjustment expenses as a
percentage of net premiums earned.
- Represents net policy acquisition expenses as a percentage of
net premiums earned.
- Represents general and administrative expenses as a percentage
of net premiums earned.
- Represents the sum of the policy acquisition expense ratio and
the general and administrative expense ratio.
- Represents the sum of the claims and claim expense ratio and
the expense ratio.
International General Insurance Holdings Ltd.
Supplementary Financial Information – Consolidated Statements of
Financial Position (Unaudited)
(in millions of U.S. Dollars, except share
and per share data)
As at
March 31,
2021
As at
December 31, 2020
Cash and cash equivalents and term
deposits ...........
$297.1
$305.6
Total investments
(4)......................................................
$484.0
$469.7
Total Investments and cash
portfolio.........................
$781.1
$775.3
As at
March 31,
2021
As at
December 31, 2020
Common shares outstanding (in millions)*
................
48.8
48.5
Minus: Unvested shares (in millions)**
......................
3.3
3.1
Number of vested common outstanding
shares (in millions)
(a)......................................................
45.5
45.4
Total equity*** (b)
.......................................................
$396.0
$394.6
Book value*** per share (b)/(a)
..........................
$8.71
$8.69
* Common shares issued and outstanding as at March 31, 2021 and
December 31, 2020 are as follows:
No. of shares
March 31, 2021
Common shares as of December 31,
2020
45,426,251
Vested restricted shares awards
44,829
Common shares as of March 31,
2021
45,471,080
Earnout shares as of March 31, 2021
3,012,500
Unvested restricted share awards as of
March 31, 2021
269,671
Total unvested shares as of March 31,
2021
3,282,171
Total Common shares outstanding
48,753,251
No. of shares
December 31, 2020
Common shares as of December 31,
2020
45,426,251
Earnout shares as of December 31, 2020
3,012,500
Unvested restricted share awards as of
December 31, 2020
134,500
Total unvested shares as of December
31, 2020
3,147,000
Total Common shares outstanding
48,573,251
** Earnout Shares are subject to vesting at stock prices ranging
from $11.50 to $15.25, are entitled to dividends and voting rights,
but are non-transferable by their holders until they vest. If the
Earnout Shares do not vest on or prior to March 17, 2028, they will
be cancelled by the Company. Restricted Share awards were issued
pursuant to the Company’s 2020 Omnibus Incentive Plan and are
entitled to dividends. However, the Restricted Shares awards are
non-transferable by their holders until they vest as per the
respective Restricted Shares Award Agreements. As at March 31,
2021, the vesting conditions attached to both Earnout Shares and
unvested Restricted Shares awards to employees have not been met,
and as a result these shares were not included in the weighted
average number of common shares for both basic and diluted earnings
per share.
*** Total Equity, or book value, includes $9.2 million of
warrants. If the Company had accounted for its public and private
warrants as liabilities as at December 31, 2020, profit for the
period would have been lower by $3.3 million for public warrants
and $1.2 million for private warrants to reflect the change in the
fair value of the warrants. The further impact on profit for the
period for the quarter ended March 31, 2021 would have been a
higher profit by $0.2 million for public and private warrants
collectively had such warrants been accounted for as
liabilities.
International General Insurance Holdings Ltd. Supplementary
Financial Information - Segment Results (Unaudited)
Segment information for IGI’s consolidated operations is as
follows:
For the quarter ended March 31,
2021
(in millions of U.S. Dollars)
Specialty Long-tail
Specialty Short-tail
Reinsurance
Total
Underwriting revenues
Gross written premiums
$38.2
$53.4
$9.0
$100.6
Reinsurers’ share of insurance
premiums
($8.1)
($15.4)
-
($23.5)
Net written premiums
$30.1
$38.0
$9.0
$77.1
Net change in unearned premiums
$10.6
($1.5)
($3.9)
$5.2
Net premiums earned
$40.7
$36.5
$5.1
$82.3
Net claims and claim adjustment
expenses
($21.5)
($16.9)
($2.8)
($41.2)
Net policy acquisition expenses
($6.5)
($6.2)
($0.8)
($13.5)
Net underwriting results
$12.7
$13.4
$1.5
$27.6
For the quarter ended March 31,
2020
(in millions of U.S. Dollars)
Specialty Long-tail
Specialty Short-tail
Reinsurance
Total
Underwriting revenues
Gross written premiums
$37.8
$54.4
$7.0
$99.2
Reinsurers’ share of insurance
premiums
($3.4)
($16.6)
-
($20.0)
Net written premiums
$34.4
$37.8
$7.0
$79.2
Net change in unearned premiums
($1.7)
($5.8)
($3.2)
($10.7)
Net premiums earned
$32.7
$32.0
$3.8
$68.5
Net claims and claim adjustment
expenses
($13.0)
($17.8)
($0.9)
($31.7)
Net policy acquisition expenses
($7.1)
($5.8)
($0.7)
($13.6)
Net underwriting results
$12.6
$8.4
$2.2
$23.2
International General Insurance Holdings Ltd. Supplementary
Financial Information - Notes to the Condensed Consolidated
Financial Statements (Unaudited)
1. The following are the calculated
investment yields and the reconciliation of investment income and
share of profit from associates included in the Condensed
Consolidated Statements of Income (Unaudited) to Total investment
income net, used to calculate investment yield:
Quarter Ended
March 31,
(in millions of U.S. Dollars, except
percentages)
2021
2020
Net investment
income*.........................................................................
$5.0
($2.0)
Share of profit from investments in
associates.....................................
$0.1
-
Total investment
income........................................................................
$5.1
($2.0)
Minus
Realized loss on
investments...................................................................
($0.2)
-
Unrealized gain (loss) on
investments……………………….……………………..
$1.4
($4.6)
Fair value loss on investment properties
..............................................
($0.2)
-
Share of profit from investments in
associates.....................................
$0.1
-
Total investment income, net
(a)…………………………………………………..
$4.0
$2.6
Average investments and cash portfolio, at
cost (b) …
$752.2
$614.9
Investment Yield (a) / (b)
annualized…………………………………………….
2.1%
1.7%
* Net investment income is comprised of interest and dividend
income, realized and unrealized gain (loss) on investments,
realized and unrealized gain (loss) on investment properties,
expected credit loss on investments, investment custodian fees and
other investment expenses.
2. Represents the sum of other revenues,
other expenses and impairment loss on insurance receivables.
Quarter Ended
March 31,
(in millions of U.S. Dollars)
2021
2020
Other
revenues................................................................................................
$0.4
$0.1
Other expenses
...............................................................................................
($0.6)
($0.4)
Impairment loss on insurance
receivables.....................................................
($0.5)
-
Other expenses,
net......................................................................
($0.7)
($0.3)
3. Represents net profit (loss) for the
period attributable to vested common shares divided by the weighted
average number of shares – basic and diluted calculated as
follows:
Quarter Ended
March 31,
(in millions of U.S. Dollars, except share
and per share information)
2021
2020
Profit (loss) for the period
$14.5
($0.9)
Minus: Profit (loss) attributable to the
Earnout Shares
$0.9
($0.1)
Minus: Profit attributable to the
Restricted Shares
$0.1
-
Net profit (loss) for the period
available to common shareholders (a)
$13.5
($0.8)
Weighted average number of shares – basic
and diluted (in millions of shares) (b)
45.5
35.8
Basic and diluted earnings per share
(a/b)
$0.30
($0.02)
4. Includes the following:
As at
(in millions of U.S. Dollars)
March 31, 2021
December 31, 2020
Investments.........................................................................
$452.4
$438.1
Investment
properties........................................................
$19.9
$20.0
Investments in
associates...................................................
$11.7
$11.6
Total
investments...............................................................
$484.0
$469.7
International General Insurance Holdings Ltd. Non-IFRS
Financial Measures
In presenting IGI’s results, Management has included and
discussed certain non-IFRS financial measures. We believe that
these non-IFRS measures, which may be defined and calculated
differently by other companies, help to explain and enhance an
understanding of our results of operations. However, these measures
should not be viewed as a substitute for those determined in
accordance with IFRS.
Combined Ratio
The table below illustrates the reconciliation of the combined
ratio on a financial and accident year basis:
Quarter Ended March
31,
(in millions of U.S. Dollars, except
percentages)
2021
2020
Net premiums earned (a)
.......................................................................
$82.3
$68.5
Net claims and claims adjustment expenses
(b) ...................................
($41.2)
($31.7)
Net policy acquisition expenses (c)
........................................................
($13.5)
($13.6)
General and administrative expenses (d)
..............................................
($15.0)
($10.4)
Prior year adverse/ (favorable)
development (e) .................................
($4.3)
($10.0)
Catastrophe (CAT) losses (f)
...................................................................
$0.1
$0.8
Combined ratio ((b+c+d)/a)*
..................................................................
84.6%
81.3%
Minus: CAT losses on an accident year
basis (f/a).................................
0.2%
1.2%
Minus: Prior year development
(favorable)/unfavorable (e/a) ...........
(5.3%)
(14.6%)
Accident year combined ratio prior to
CAT losses...............................
89.7%
94.7%
* See “Supplementary Financial Information - Condensed
Consolidated Statements of Income (Unaudited).”
Core Operating Income
Core operating income measures the performance of our operations
without the influence of after-tax gains or losses on investments
and foreign currencies and other items as noted in the table below.
We exclude these items from our calculation of core operating
income because the amount of these gains and losses is heavily
influenced by, and fluctuates in part according to, economic and
other factors external to the Company and/or transactions or events
that are typically not a recurring part of, and are largely
independent of, our core underwriting activities and including them
distorts the analysis of trends in our operations. We believe the
reporting of core operating income enhances an understanding of our
results by highlighting the underlying profitability of our core
insurance operations. Our underwriting profitability is impacted by
earned premium growth, the adequacy of pricing, and the frequency
and severity of losses. Over time, such profitability is also
influenced by underwriting discipline, which seeks to manage the
Company’s exposure to loss through favorable risk selection and
diversification, IGI’s management of claims, use of reinsurance and
the ability to manage the expense ratio, which the Company
accomplishes through the management of acquisition costs and other
underwriting expenses.
In addition to presenting profit for the period determined in
accordance with IFRS, we believe that showing “core operating
income” provides investors with a valuable measure of profitability
and enables investors, rating agencies and other users of our
financial information to more easily analyze the Company’s results
in a manner similar to how Management analyzes the Company’s
underlying business performance.
Core operating income is calculated by the addition or
subtraction of certain line items reported in the ‘Condensed
Consolidated Statements of Income’ from profit for the period and
tax effecting each line item (resulting in each item being a
non-IFRS measure), as illustrated in the table below:
Quarter Ended
March 31,
(in millions of U.S. Dollars, except for
percentages and per
2021
2020
share data)
Profit (loss) for the
period..............................................................................
$14.5
($0.9)
Reconciling items between profit (loss)
for the period and core operating income:
Realized loss on investments (tax
adjusted) (i)...............................................
$0.1
-
Unrealized (gain)/loss on investments (tax
adjusted) (i)...............................
($1.3)
$4.2
Loss on investment
properties…………………………………………………………………
$0.2
-
Listing related
costs.........................................................................................
-
$2.5
Bargain
purchase.............................................................................................
-
($2.4)
Loss on foreign exchange (tax adjusted)
(i) ....................................................
$1.2
$10.0
Core operating
income...................................................................................
$14.7
$13.4
Average shareholders’ equity
(ii).....................................................................
$395.3
$328.1
Core operating return on average equity
(annualized) (iii) (v)........................
14.9%
16.4%
Basic and diluted core operating earnings
per share (iv)...............................
$0.30
$0.35
Return on average equity (annualized)
(v)..........................................
14.7%
(1.1%)
i. Represents a non-IFRS financial measure as
the line-item balances reported in “Condensed Consolidated
Statements of Income (Unaudited)” have been adjusted above for the
related tax impact.
ii. Average shareholders’ equity equals the
total equity at the reporting period end plus the total equity as
of the beginning of the reporting period, divided by 2.
iii. Represents annualized core operating
income for the quarter divided by average shareholders’ equity.
iv. Represents core operating income
attributable to vested common shares dividend by weighted average
number of shares – basic and diluted as follows:
Quarter Ended
March 31,
(in millions of U.S. Dollars, except per
share information)
2021
2020
Core operating income
$14.7
$13.4
Minus: Core operating income attributable
to the Earnout Shares subject to vesting
$0.9
$0.8
Minus: Core operating income attributable
to the Restricted Shares awards subject to vesting
$0.1
-
Core operating income for the
period attributable to vested common shares (a)
$13.7
$12.6
Weighted average number of common shares –
basic and diluted (in millions of shares) (b)
45.5
35.8
Basic and diluted core operating
earnings per share (a/b)
$0.30
$0.35
v. Return on average equity and core
operating return on average equity, both non-IFRS financial
measures, represent the returns generated on common shareholders’
equity during the period. IGI’s objective is to generate superior
returns on capital that appropriately reward shareholders for the
risks assumed.
The Company has posted a First Quarter 2021 investor
presentation deck on its website at www.iginsure.com in the Investors section
under the Presentations & Webcasts tab.
---
About IGI: IGI is an international specialty risks commercial
insurer and reinsurer underwriting a diverse portfolio of specialty
lines. Established in 2001, IGI has a worldwide portfolio of
energy, property, general aviation, construction & engineering,
ports & terminals, marine cargo, political violence, financial
institutions, general third-party liability (casualty), legal
expenses, professional indemnity, D&O, surety, marine trades,
marine liability, contingency, and reinsurance treaty business.
Registered in Bermuda, with operations in Bermuda, London, Dubai,
Amman, Labuan and Casablanca, IGI aims to deliver outstanding
levels of service to clients and brokers. IGI is rated “A”
(Excellent)/Stable by AM Best and “A-”/Stable by S&P Global
Ratings. For more information about IGI, please visit
www.iginsure.com.
---
Forward-Looking Statements: This press release contains
“forward-looking statements” within the meaning of the “safe
harbour” provisions of the Private Securities Litigation Reform Act
of 1995. The expectations, estimates, and projections of the
business of IGI may differ from its actual results and,
consequently, you should not rely on forward-looking statements as
predictions of future events. Words such as “expect,” “estimate,”
“project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,”
“may,” “will,” “could,” “should,” “believes,” “predicts,”
“potential,” “continue,” and similar expressions are intended to
identify such forward-looking statements. Forward-looking
statements contained in this press release may include, but are not
limited to, information regarding our estimates of losses for
catastrophes and other large losses including losses related to the
COVID-19 pandemic, measurements of potential losses in the value of
our investment portfolio, our expectations regarding the
performance of our business, our financial results, our liquidity
and capital resources, the outcome of our strategic initiatives,
our expectations regarding pricing and other market conditions, our
growth prospects, and valuations of the potential impact of
movements in interest rates, credit spreads, equity securities'
prices and foreign currency rates. These forward-looking statements
involve significant risks and uncertainties that could cause the
actual results to differ materially from the expected results. Most
of these factors are outside of the control of IGI and are
difficult to predict. Factors that may cause such differences
include, but are not limited to: (1) changes in demand for IGI’s
services together with the possibility that IGI may be adversely
affected by other economic, business, and/or competitive factors
globally and in the regions in which it operates; (2) competition,
the ability of IGI to grow and manage growth profitably and IGI’s
ability to retain its key employees; (3) changes in applicable laws
or regulations; (4) the outcome of any legal proceedings that may
be instituted against the Company; (5) the potential effects of the
COVID-19 pandemic; (6) the inability to maintain the listing of the
Company’s common shares or warrants on Nasdaq; and (7) other risks
and uncertainties indicated in IGI’s annual report on Form 20-F for
the year ended December 31, 2020, including those under “Risk
Factors” therein, and in the Company’s other filings with the SEC.
The foregoing list of factors is not exclusive. In addition,
forward-looking statements are inherently based on various
estimates and assumptions that are subject to the judgment of those
preparing them and are also subject to significant economic,
competitive, industry and other uncertainties and contingencies,
all of which are difficult or impossible to predict and many of
which are beyond the control of IGI. There can be no assurance that
IGI’s financial condition or results of operations will be
consistent with those set forth in such forward-looking statements.
You should not place undue reliance upon any forward-looking
statements, which speak only as of the date made. IGI does not
undertake or accept any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
to reflect any change in its expectations or any change in events,
conditions, or circumstances on which any such statement is
based.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210520005933/en/
IGI Contacts: Investors: Robin Sidders, Head of Investor
Relations T: + 44 (0) 2072 204937 M: + 44 (0) 7384 514785 Email:
robin.sidders@iginsure.com Media: Aaida Abu Jaber, AVP PR
& Marketing T: +96265662082 Ext. 407 M: +962770415540 Email:
aaida.AbuJaber@iginsure.com
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