International General Insurance Holdings Ltd. (“IGI” or the
“Company”) (NASDAQ: IGIC) today reported financial results for the
first quarter of 2023 based on Generally Accepted Accounting
Principles in the United States of America ("U.S. GAAP"). As a
result of the voluntary change to U.S. GAAP, we no longer report
financial information in accordance with IFRS. The prior period
comparatives for the first quarter of 2022 have been adjusted from
those previously reported to conform with the current basis of
accounting under U.S. GAAP.
Highlights for the first quarter of 2023 include:
(in millions of U.S. Dollars, except
percentages and per share information)
Quarter Ended
March 31,
2023
2022
Gross written premiums
$173.9
$126.4
Net premiums earned
$105.1
$87.3
Underwriting income
$39.8
$41.7
Net investment income (1)
$12.4
$2.1
Profit for the period
$33.9
$22.2
Combined ratio (2)
78.4%
71.8%
Earnings per share (diluted)
(3)
$0.71
$0.47
Return on average equity
(annualized) (4)
32.2%
23.6%
Core operating income (4)
$29.3
$23.3
Core operating earnings per share
(diluted) (4)
$0.62
$0.49
Core operating return on average equity
(annualized) (4)
27.9%
24.7%
(1) See Note (1) in the “Notes to the Condensed Consolidated
Financial Statements (Unaudited)” below. (2) See “Supplementary
Financial Information” below. (3) See Note (2) in the “Notes
to the Condensed Consolidated Financial Statements (Unaudited)”
below. (4) See the section titled “Non-GAAP Financial
Measures” below.
IGI Chairman and CEO Mr. Wasef Jabsheh said, “IGI had a very
positive start to 2023, posting another excellent set of financial
results for the first quarter. We responded decisively to improving
areas of our markets with the same disciplined execution,
delivering profitable growth as reflected in a 78.4% combined
ratio. With these strong underwriting results, coupled with
significantly improved investment results, driven by higher yields
and increased reinvestment rates, we recorded a profit of $33.9
million, a 32.2% annualized return on average equity, and a 27.9%
annualized core operating return on average equity.”
“The operating environment remains positive, notwithstanding the
broader macroeconomic, geopolitical and environmental challenges
that persist. We grew our gross premiums by over 37% during the
first quarter of 2023 as we took advantage of the rating momentum
and improved terms in our short-tail and reinsurance segments. We
are encouraged by the strong and profitable growth seen to date in
the second quarter.”
“There is a lot of positive momentum in many areas of our
business and we remain optimistic and excited about our future. As
we have continued to grow and evolve into a truly international
specialist insurer, we remain focused on consistent, disciplined
execution of our strategy so that we continue our track record of
generating long-term shareholder value through excellence in
underwriting.”
Results for the Quarters ended March 31, 2023 and
2022
Profit for the quarter ended March 31, 2023 was $33.9 million,
compared to profit of $22.2 million for the quarter ended March 31,
2022. The increase in profit was primarily driven by an increase of
$17.8 million in net premiums earned, positive movement of $10.3
million in total investment income, and $2.7 million of favorable
movement in foreign exchange as a result of currency revaluation
against the U.S. Dollar. Return on average equity (annualized) was
32.2% for the first quarter of 2023 compared to 23.6% for the first
quarter of 2022.
Core operating income, a non-GAAP measure, defined below, was
$29.3 million for the quarter ended March 31, 2023, compared to
$23.3 million for the comparable period in 2022. The core operating
return on average equity (annualized) was 27.9% for the first
quarter of 2023 compared to 24.7% for the first quarter of
2022.
Underwriting Income
Underwriting income, a non-GAAP measure, was $39.8 million for
the first quarter of 2023 compared to $41.7 million for the first
quarter of 2022, with the decrease largely driven by a higher level
of loss and loss adjustment expenses, partially offset by growth in
net premiums earned.
Gross written premiums were $173.9 million for the quarter ended
March 31, 2023, representing an increase of 37.6% compared to gross
written premiums of $126.4 million for the quarter ended March 31,
2022. The increase was largely driven by growth in both the
Short-tail and Reinsurance segments of 35.3% and 187.9%
respectively, partially offset by a 6.0% decrease in the Long-tail
Segment.
The loss ratio increased 13.3 points to 45.7% for the quarter
ended March 31, 2023, compared to 32.4% for the quarter ended March
31, 2022, largely driven by an increased level of losses, in
particular, the earthquake in Turkey as well as flooding in New
Zealand from Cyclone Gabrielle, both in February 2023, and a lower
level of favorable development of net loss reserves from prior
accident years.
The general and administrative expense ratio was 16.2% in the
first quarter of 2023, a decrease of 3.4 points compared to 19.6%
in the same quarter of 2022, largely the result of proportionately
higher net premiums earned in the first quarter of 2023 compared to
the first quarter of 2022.
The policy acquisition expense ratio was 16.5% in the first
quarter of 2023, a decrease of 3.3 points when compared to 19.8% in
the same quarter of 2022, largely the result of proportionately
higher net premiums earned in the first quarter of 2023 compared to
the first quarter of 2022.
The combined ratio for the quarter ended March 31, 2023 was
78.4% compared to 71.8% for the quarter ended March 31, 2022. The
increase was primarily the result of a higher loss and loss
adjustment expense ratio, as described above.
Segment Results
The Long-tail Segment, which represented approximately
24% of the Company’s gross written premiums for the quarter ended
March 31, 2023, recorded gross written premiums for the first
quarter of 2023 of $42.0 million compared to $44.7 million for the
first quarter of 2022. Net premiums earned for the quarter ended
March 31, 2023 were $40.3 million, compared to $38.9 million in the
comparable quarter in 2022. The underwriting income for this
segment was $11.3 million for the first quarter of 2023, compared
to $17.1 million in the first quarter of 2022. The decline in
underwriting income was primarily due to a higher level of loss and
loss adjustment expenses in the first quarter of 2023 compared to
the first quarter of 2022, partially offset by the increase in net
premiums earned.
The Short-tail Segment, which represented approximately
53% of the Company’s gross written premiums for the quarter ended
March 31, 2023, recorded gross written premiums for the first
quarter of 2023 of $91.6 million compared to $67.7 million in the
first quarter of 2022. Net premiums earned for the quarter ended
March 31, 2023 were $51.0 million, compared to $41.5 million in the
comparable quarter in 2022. Underwriting income for this segment
was $28.8 million for the first quarter of 2023, compared to $22.7
million for the comparable quarter of 2022, with the increase being
driven by higher net premiums earned and improved rates in a number
of lines.
The Reinsurance Segment, which represented approximately
23% of the Company’s gross written premiums for the quarter ended
March 31, 2023, recorded gross written premiums for the first
quarter of 2023 of $40.3 million, compared to $14.0 million for the
first quarter of 2022. Net premiums earned for the quarter ended
March 31, 2023 were $13.8 million, compared to $6.9 million for the
comparable quarter in 2022. Underwriting income for this segment
was a loss of $0.3 million for the first quarter of 2023, compared
to a gain of $1.9 million for the first quarter of 2022. The
decline in underwriting income was primarily due to a higher level
of loss and loss adjustment expenses in the first quarter of 2023
compared to the first quarter of 2022, partially offset by the
increase in net premiums earned.
Foreign Exchange Gain (Loss)
The gain on foreign exchange in the first quarter of 2023 was
$1.3 million, compared to a loss of $1.4 million in the first
quarter of 2022, both of which largely represent currency
revaluation movements. The first quarter of 2023 saw a greater
degree of positive currency movement in the Company’s major
transactional currencies (mainly Pound Sterling and Euro) against
the U.S. Dollar, when compared with negative currency movement in
the first quarter of 2022.
Investment Results
Net investment income was $12.4 million in the first quarter of
2023, compared to $2.1 million in the first quarter of 2022.
Investment income was $8.7 million and $3.9 million for the
quarters ended March 31, 2023 and 2022, respectively. This
represented an annualized investment yield of 3.5% on average total
investments and cash and cash equivalents in the first quarter of
2023, compared to a 1.8% annualized investment yield in the
corresponding period in 2022. The increase in net investment income
was primarily attributable to (a) the growth in interest income,
driven by the rise in interest rates in the first quarter of 2023
compared to the same period of 2022, and (b) the change in the
unrealized gain (loss) on equity investments from a loss of $1.0
million in the first quarter of 2022 to a gain of $4.3 million in
the same period of 2023.
Total Equity
Total equity at March 31, 2023 was $430.2 million, compared to
$411.0 million at December 31, 2022. The movement in total equity
during the quarter ended March 31, 2023 is illustrated below:
(in millions of U.S. Dollars)
Quarter Ended March 31,
2023
Total Equity at beginning of period
(a)
$411.0
Profit for the period
$33.9
Net change in fair value reserves for
investments through other comprehensive income (OCI)
$6.1
Purchase of treasury shares
($21.0)
Issuance of restricted share awards
$0.6
Cash dividends declared during the
period
($0.4)
Total Equity at March 31, 2023
$430.2
(a) Total Equity at December 31, 2022 of $411.0 million on a
U.S. GAAP basis decreased from the previously reported Total Equity
under IFRS of $429.8 million primarily due to earnout shares
previously classified as equity under IFRS now reported as a
liability at fair value under U.S. GAAP with changes in fair value
recognised in the income statement.
Book value per share was $9.98 at March 31, 2023, compared to
$9.07 at December 31, 2022.
During the first quarter of 2023, the Company had repurchased
2,447,815 common shares at an average price per share of $8.58. In
the second quarter of 2023, between April 1 and May 12, 2023
(inclusively), the Company has repurchased an additional 164,698
common shares at an average price per share of $8.37. As of May 16,
2023, the Company had approximately 2.1 million shares remaining
under its existing 5 million common share repurchase
authorization.
International General Insurance Holdings Ltd. Condensed
Consolidated Income Statements (Unaudited)
Quarter Ended
March 31,
(in millions of U.S. Dollars except per
share data)
2023
2022
Gross written
premiums..........................................................................
$173.9
$126.4
Reinsurers’ share of insurance
premiums..............................................
($32.9)
($32.7)
Net written
premiums.............................................................................
$141.0
$93.7
Net change in unearned
premiums........................................................
($35.9)
($6.4)
Net premiums
earned.............................................................................
$105.1
$87.3
Net Investment Income
(1).......................................................................
$12.4
$2.1
Change in fair value of derivative
financial liabilities............................
($0.1)
$1.9
Other revenues
........................................................................................
$0.6
$0.7
Total revenues
.........................................................................................
$118.0
$92.0
Expenses
..................................................................................................
Loss and loss adjustment expenses
.......................................................
($48.0)
($28.3)
Policy acquisition expenses
....................................................................
($17.3)
($17.3)
General & Administrative
expenses........................................................
($17.0)
($17.1)
Impairment loss on Financial
Assets.......................................................
$0.1
($3.5)
Other expenses
........................................................................................
($0.8)
($1.3)
Foreign exchange gain
(loss)...................................................................
$1.3
($1.4)
Total
expenses.........................................................................................
($81.7)
($68.9)
Profit before
tax.......................................................................................
$36.3
$23.1
Tax Expense
.............................................................................................
($2.4)
($0.9)
Profit for the period
................................................................................
$33.9
$22.2
Diluted earnings per share attributable
to equity holders (2)..............
$0.71
$0.47
See “Notes to the Condensed Consolidated Financial Statements
(Unaudited)” below.
International General Insurance Holdings Ltd. Condensed
Consolidated Balance Sheets
(in millions of U.S. Dollars)
As at
March 31, 2023
(Unaudited)
As at
December 31, 2022
(Unaudited)
ASSETS
Investments
Fixed maturity securities
available-for-sale, at fair value
$500.0
$489.1
Fixed maturity securities held to
maturity
$2.0
$2.0
Equity securities, at fair value
$38.4
$31.4
Other investments
$11.6
$12.2
Short-term investments
$252.7
$265.7
Term Deposits
$9.0
$31.3
Investments in associates measured at fair
value
$4.1
$4.9
Cash and cash equivalents
$156.6
$122.2
Accrued investment income
$8.6
$6.3
Insurance receivables
$242.0
$216.0
Reinsurance recoverables
$194.1
$188.8
Ceded unearned premiums
$79.5
$93.2
Deferred policy acquisition costs, net
$63.9
$59.5
Deferred tax assets
$5.3
$5.8
Other assets
$53.7
$52.0
TOTAL ASSETS
$1,621.5
$1,580.4
LIABILITIES
Reserve for loss and loss adjustment
expenses
$662.9
$636.2
Unearned premiums
$412.5
$390.2
Other liabilities
$19.6
$28.8
Insurance payables
$72.4
$90.4
Derivative financial liabilities
$23.9
$23.8
TOTAL LIABILITIES
$1,191.3
$1,169.4
EQUITY
Common shares at par value
$0.5
$0.5
Additional paid-in capital
$129.0
$147.9
Treasury shares
($1.5)
-
Accumulated other comprehensive income,
net of taxes
Foreign currency translation reserve
($0.4)
($0.4)
Fair value reserve
($37.7)
($43.8)
Retained earnings
$340.3
$306.8
TOTAL EQUITY
$430.2
$411.0
TOTAL LIABILITIES AND EQUITY
$1,621.5
$1,580.4
See “Notes to the Condensed Consolidated Financial Statements
(Unaudited)” below.
Supplementary Financial Information – Combined Ratio
(Unaudited) International General Insurance Holdings
Ltd.
Quarter Ended
March 31,
2023
2022
Loss ratio
(a)...........................................................
.
45.7%
32.4%
Policy acquisition expense ratio
(b)......................................
16.5%
19.8%
General and administrative expense ratio
(c)......................
16.2%
19.6%
Expense ratio
(d)......................................................
32.7%
39.4%
Combined ratio
(e)...................................................
78.4%
71.8%
(a) Represents loss and loss adjustment expenses as a percentage
of net premiums earned. The split of loss ratio between current
accident year, current year CAT losses and prior years’ loss
development is as follows:
Quarter Ended March
31,
2023
2022
(in millions of U.S. Dollars, except
percentages)
Loss and loss adjustment
expenses
% of net premiums earned
Loss and loss adjustment
expenses
% of net premiums earned
Current year net incurred
claims
$48.0
45.7%
$28.3
32.4%
Minus: Current accident year CAT
losses
$14.4
13.7%
$5.2
6.0%
Minus: Effect of prior years’
development
($12.0)
(11.4%)
($17.5)
(20.0%)
Current accident year (before CAT
losses)
$45.6
43.4%
$40.6
46.4%
(b) Represents policy acquisition expenses as a percentage of
net premiums earned.
(c) Represents general and administrative expenses as a
percentage of net premiums earned.
(d) Represents the sum of the policy acquisition expenses ratio
and the general and administrative expense ratio.
(e) Represents the sum of the loss ratio and the expense
ratio.
International General Insurance Holdings Ltd.
Supplementary Financial Information – Book Value per Share
(Unaudited)
(in millions of U.S. Dollars, except share
and per share data)
As at
March
31,
2023
As at
December 31, 2022
Investments..................................................................................................
$817.8
$836.6
Cash and cash
equivalents...........................................................................
$156.6
$122.2
Total investments and cash and cash
equivalents...................................
$974.4
$958.8
Common shares outstanding (in millions)*
………………………………………..
46.9
49.0
Minus: Unvested shares (in millions)**
……………………………………………..
3.8
3.7
Number of vested common outstanding
shares (in millions) (a) ……..
43.1
45.3
Total equity (b)
……………………………………………………………………………….
$430.2
$411.0
Book value per share (b)/(a)
…………………………………………………………..
$9.98
$9.07
* Common shares issued and outstanding as at March 31, 2023 and
December 31, 2022 are as follows:
No. of shares as at
March 31, 2023
Vested common shares as of December 31,
2022
45,308,596
Vested restricted share awards
283,859
Cancelled treasury shares
(2,271,775)
Treasury shares balance as of March 31,
2023
(177,708)
Vested common shares as of March 31,
2023
43,142,972
Unvested earnout shares as of March 31,
2023
3,012,500
Unvested restricted share awards as of
March 31, 2023
762,322
Total unvested shares as of March 31,
2023
3,774,822
Total common shares outstanding
46,917,794
No. of shares as at
December 31, 2022
Vested common shares as of December 31,
2021
45,471,084
Vested restricted share awards
146,386
Cancelled treasury shares
(308,874)
Treasury shares balance as of December 31,
2022
(1,668)
Vested common shares as of December 31,
2022
45,306,928
Unvested earnout shares as of December 31,
2022
3,012,500
Unvested restricted share awards as of
December 31, 2022
667,181
Total unvested shares as of December
31, 2022
3,679,681
Total common shares outstanding
48,986,609
** 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 in
2023, 2022, 2021 and 2020 pursuant to the Company’s 2020 Omnibus
Incentive Plan and beneficiaries are entitled to dividends and
voting rights. However, the Restricted Share Awards are
non-transferable by their holders until they vest as per the
respective Restricted Share Award Agreements. As at March 31, 2023,
the vesting conditions attached to both Earnout Shares and unvested
Restricted Share 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 diluted earnings per share.
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,
2023
(in millions of U.S. Dollars)
Specialty Long-tail
Specialty Short-tail
Reinsurance
Total
Underwriting revenues
Gross written premiums
$42.0
$91.6
$40.3
$173.9
Reinsurers’ share of insurance
premiums
($7.3)
($25.6)
-
($32.9)
Net written premiums
$34.7
$66.0
$40.3
$141.0
Net change in unearned premiums
$5.6
($15.0)
($26.5)
($35.9)
Net premiums earned
$40.3
$51.0
$13.8
$105.1
Loss and loss adjustment expenses
($21.9)
($14.2)
($11.9)
($48.0)
Policy acquisition expenses
($7.1)
($8.0)
($2.2)
($17.3)
Underwriting income*
$11.3
$28.8
($0.3)
$39.8
For the quarter ended March 31,
2022
(in millions of U.S. Dollars)
Specialty Long-tail
Specialty Short-tail
Reinsurance
Total
Underwriting revenues
Gross written premiums
$44.7
$67.7
$14.0
$126.4
Reinsurers’ share of insurance
premiums
($14.4)
($18.3)
-
($32.7)
Net written premiums
$30.3
$49.4
$14.0
$93.7
Net change in unearned premiums
$8.6
($7.9)
($7.1)
($6.4)
Net premiums earned
$38.9
$41.5
$6.9
$87.3
Loss and loss adjustment expenses
($13.7)
($10.9)
($3.7)
($28.3)
Policy acquisition expenses
($8.1)
($7.9)
($1.3)
($17.3)
Underwriting Income*
$17.1
$22.7
$1.9
$41.7
* Underwriting income is a non-GAAP financial measure.
International General Insurance Holdings Ltd. Notes to
the Condensed Consolidated Financial Statements (Unaudited)
(1) The following are the calculated investment yields and the
reconciliation of net investment income included in the Condensed
Consolidated Income Statements (Unaudited) to investment income
used to calculate investment yield:
Quarter Ended
March 31,
(in millions of U.S. Dollars, except
percentages)
2023
2022
Net investment
income*...........................................................................
$12.4
$2.1
Minus
Realized gain on investments
..................................................................
$0.1
-
Unrealized gain (loss) on
investments.....................................................
$4.3
($1.0)
Change in fair value of investment in
associates....................................
($0.8)
-
Expected credit loss on
investments........................................................
$0.1
($0.8)
Investment income
(a)…………………………………………………………………...
$8.7
$3.9
Average total investments and cash and
cash equivalents (b)……………
$982.7
$873.3
Investment Yield (a) / (b)
annualized……………………….….…….….………
3.5%
1.8%
* Net investment income is comprised of interest and dividend
income, realized and unrealized gain (loss) on investments, change
in the fair value of investment in associates, expected credit loss
on investments, investment custodian fees and other investment
expenses.
(2) Represents profit for the period available to common
shareholders divided by the weighted average number of vested
common shares – diluted calculated as follows:
Quarter Ended
March 31,
(in millions of U.S. Dollars, except share
and per share information)
2023
2022
Profit for the period
$33.9
$22.2
Minus: Profit attributable to the Earnout
Shares
$2.2
$0.8
Minus: Dividends attributable to
restricted share awards
-
$0.1
Profit available to common shareholders
(a)
$31.7
$21.3
Weighted average number of shares –
diluted (in millions of shares) (b)*
44.4
45.6
Diluted earnings per share attributable
to equity holders (a/b)
$0.71
$0.47
* The weighted average number of common shares refers to the
number of common shares calculated after adjusting for the changes
in issued and outstanding common shares over a reporting
period.
International General Insurance Holdings Ltd. Non-GAAP
Financial Measures
In presenting IGI’s results, management has included and
discussed certain non-GAAP financial measures. We believe that
these non-GAAP 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 U.S. GAAP.
Reconciliation of Combined Ratio to Accident Year Combined
Ratio Prior to CAT Losses
The table below illustrates the reconciliation of the combined
ratio on a financial and accident year basis. The combined ratio is
the sum of our loss ratio, our policy acquisition expenses ratio
and our general and administrative expenses ratio. We show the
combined ratio because we believe investors can utilize the
combined ratio to illustrate our underwriting results.
Quarter Ended
March 31,
(In millions of U.S. Dollars, except
percentages)
2023
2022
Net premiums earned (a)
$105.1
$87.3
Loss and loss adjustment expenses (b)
($48.0)
($28.3)
Policy acquisition expenses (c)
($17.3)
($17.3)
General and administrative expenses
(d)
($17.0)
($17.1)
Prior years favorable development (e)
($12.0)
($17.5)
CAT losses (f)*
$14.4
$5.2
Combined ratio ((b+c+d)/a)**
78.4%
71.8%
Minus: Prior years unfavorable (favorable)
development (e/a)
(11.4%)
(20.0%)
Accident year combined ratio
89.8%
91.8%
Minus: CAT losses on an accident year
basis (f/a)
13.7%
6.0%
Accident year combined ratio prior to
CAT losses
76.1%
85.8%
* The CAT losses for the quarter ended March 31, 2023 are
primarily attributable to $8.4 million of reserves recorded for the
earthquake in Turkey (in the Reinsurance Segment) and flooding in
New Zealand from Cyclone Gabrielle (in the Short-tail Segment),
both of which occurred in February 2023.
** See “Supplementary Financial Information - Combined Ratio
(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 amounts of these gains and losses are heavily
influenced by, and fluctuate 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 premiums, 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 U.S. GAAP, 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 analyze the Company’s results in a similar
manner to the way in which 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 Income Statements” from profit for the period and tax
effecting each line item (resulting in each item being a non-GAAP
measure), as illustrated in the table below:
Quarter Ended
March 31,
(in millions of U.S. Dollars, except for
percentages and per share data)
2023
2022
Profit for the
period.........................................................................................................
$33.9
$22.2
Reconciling items between profit for the
period and core operating income:
Realized gain on investments (tax
adjusted)
(i)...............................................................
($0.1)
-
Unrealized (gain) loss on investments (tax
adjusted) (i).................................................
($4.3)
$1.0
Expected credit losses on investments (tax
adjusted)(i)................................................
($0.1)
$0.9
Change in fair value of investment in
associates...........................................................
$0.8
-
Change in fair value of derivative
financial
liabilities.....................................................
$0.1
($1.9)
Foreign exchange (gain) loss (tax
adjusted) (i)
................................................................
($1.0)
$1.1
Core operating income
$29.3
$23.3
Average shareholders’ equity
(ii)......................................................................................
$420.6
$376.7
Core operating return on average equity
(annualized) (iii) and (v)....................................
27.9%
24.7%
Diluted core operating earnings per share
(iv)
...............................................................
$0.62
$0.49
Return on average equity (annualized)
(v).......................................................................
32.2%
23.6%
i. Represents a non-GAAP financial measure as components within
the line-item balances for Net investment income and foreign
exchange gains or losses reported in “Condensed Consolidated Income
Statements (Unaudited)” have been adjusted above for the related
tax impact.
ii. Represents 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 period
divided by average shareholders’ equity.
iv. Represents core operating income attributable to vested
equity holders divided by weighted average number of vested common
shares –diluted as follows:
Quarter Ended
March 31,
(in millions of U.S. Dollars, except per
share information)
2023
2022
Core operating income for the period
$29.3
$23.3
Minus: Core operating income attributable
to earn-out shares
$1.9
$0.9
Minus: Dividends attributable to
restricted share awards
-
$0.1
Core operating income available to
common shareholders (a)
$27.4
$22.3
Weighted average number of shares –
diluted (in millions of shares) (b)
44.4
45.6
Diluted core operating earnings per
share (a/b)
$0.62
$0.49
v. Return on average equity (annualized) and core operating
return on average equity (annualized), both non-GAAP financial
measures, represent the returns generated on common shareholders’
equity during the period.
The Company has posted a First Quarter 2023 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, marine trades, contingency,
political violence, financial institutions, general third-party
liability (casualty), legal expenses, professional indemnity,
D&O, marine liability and reinsurance treaty business.
Registered in Bermuda, with operations in Bermuda, London, Malta,
Dubai, Amman, Oslo, Kuala Lumpur 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-”(Strong)/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,” “commitment,” 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, 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, and our growth prospects. 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 and emerging
variants; (6) the effects of the hostilities between Russia and
Ukraine and the sanctions imposed on Russia by the United States,
European Union, United Kingdom and others; (7) the inability to
maintain the listing of the Company’s common shares or warrants on
Nasdaq; (8) the failure to realize the anticipated benefits of the
acquisition of EIO; and (9) other risks and uncertainties indicated
in IGI’s 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 except to the extent that is
required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230516005893/en/
IGI: 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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