International General Insurance Holdings Ltd. · NASDAQ:IGIC
International General Insurance — Q2 2021 Earnings Presentation
31 slides from International General Insurance's earnings presentation, Aug 13, 2021
Slide 1: IGI Investor Presentation Q2 2021
IGI Investor Presentation Q2 2021 INTERNATIONAL GENERAL INSURANCE HOLDINGS LTD.
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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,
Slide 3: Contents
CONTENTS Company Overview Investment Highlights Financial Performance Appendix
Slide 4: Company Overview
COMPANY OVERVIEW Section 1 ‘iy vi mn
Slide 5: IGI is a Specialty (Re)Insurer with a Proven Track Record
IGl is a Specialty (Re)Insurer with a Proven Track Record | kind or of special excellenc IGI are specialists with recognized expertise in their lines of businesses Local, specialized knowledge resulting in a 4-point combined ratio advantage relative to peers Managed volatility — business focused on
Slide 6: Key Financial Metrics
Key Financial Metrics Market Capitalization / Stock Price (NASDAQ: IGIC) $455mm / $9.33( Shareholders’ Equity / BVPS. $403.1mm / $8.86 LTM Gross Written Premium $497.6mm Q2 2021 Core Operating ROAE 9.0% Dividends Paid 40% of annual net after-tax profit paid semi-annually $0.16 dividend for period Ja
Slide 7: Overview Q2 2021
Overview Q2 2021 a illi Compared to $137.3mm in 24% increase driven by portfolio optimization y Pp p Gross Written Premium Q2'20 achieving improved terms and conditions i 1.2% unfavorable reserve development and 92.3% Compared to 84.0% in 6 points increase in the current accident 8 — ' , Q2'20 Combi
Slide 8: IGI - Global Specialty (Re)Insurer Evolution
IGI - Global Specialty (Re)Insurer Evolution $50mm capital raise 2002 ‘Commenced ‘operations in Jordan, ‘underwriting ray, pope business 2005 Assigned B88 rating by S&P 2008 Assigned A- rating by AM. Best and BBB+ rating by S&P Established IGI Dubai 2009 Commenced nerwnting 2010 Established regulate
Slide 9: Specialty Business Diversified by Line, Geography, and Broker Distribution
Specialty Business Diversified by Line, Geography, and Broker Distribution GWP by Line of Business GWP by Geography GWP by Broker ‘Australasia south America 236 om Gorn, Z\ ~~ \Marinansurance Caribbean stares Sor oe ‘% * Balanced specialty book across long-tail_ __* Well diversified with mix of matu
Slide 10: Market Respected and Recognized Executive Management Team
Market Respected and Recognized Executive Management Team * Highly experienced management team with an average of more than 30 years of industry experience * Strong business culture of recognizing and rewarding achievers = Family owners actively manage business and have closely aligned interests wit
Slide 11: Enhanced Alignment of Interest and Expected Improved Liquidity
Enhanced Alignment of Interest and Expected Improved Liquidity strong alignment of interest through significant insider ownership Employee's long-term commitment strengthened by share. based compensation (Omnibus Incentive Plan establishe: 2020) Y Lock.up expiration (on March 17, 2021) promotes enha
Slide 12: IGI Values Centre Around Integrity, Genuine Approach and Innovation
IGI Values Centre Around Integrity, Genuine Approach and Innovation = The foundation of IGI is built on egrity, prioritizing honesty and doing what is right enuine culture that promotes collaboration and supports diversity among our global team for the benefit of all stakeholders = Fosters an innova
Slide 13: Investment Highlights
INVESTMENT HIGHLIGHTS Section 2
Slide 14: Key Investment Highlights
Key Investment Highlights C1) Specialty Individual Risk Underwriter with Strategy to Protect Capital & Optimize Underwriting Profitability 2} ‘Superior Underwriting Performance Even in Heavier Loss Years C3} Active Cycle Management Balancing Growth and Risk Selection (4 Track Record of Delivering Re
Slide 15: Specialty Individual Risk Underwriter with Strategy to Protect Capital & Optimize Underwriting Profitability
Specialty Individual Risk Underwriter with Strategy to Protect Capital & Optimize 1] Underwriting Profitability Intelligent Risk Selection & Management Significantly Less Volatility from Catastrophes ($ in bn) = ei a oni et H Japan, New | | Hurricane Sandy: ' Hurricane Michael, 7 | Calta wits store
Slide 16: Superior Underwriting Performance Even in Heavier Loss Years
e Superior Underwriting Performance Even in Heavier Loss Years Combined Ratio 120% 1 ici Combined! ' Ratio ‘ 100% 1 “1 v 80% ' oe en I IGI Combined Ratio | 1 lower than peers 60% om Peer Average Combined Ratio": 94% IGI Average Combined Ratio: 90% a IGI Combined Ratio Advantage: 4% 0% 2011 2012 2013
Slide 17: Active Cycle Management Balancing Growth and Risk Selection
C3 } Active Cycle Management Balancing Growth and Risk Selection GPW by Business Segment (mm) Strong Cycle Management 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 LTMQ221 EB sorta ong-tai Reinsurance Prudent Growth and Cycle Management Marked by Opportunistic Approach to Capitalizing on Market
Slide 18: Track Record of Delivering Results through the Market Cycle
C4} Track Record of Delivering Results through the “Market Cycle” Combined Ratio 105% 94% 87% 89% 88% 86% 24% 87% | 89% 80% 89% 2011 2012 2013 2014 2015 2016 2017 2018, 2019 2020 H121 Un-Levered Core Operating ROAE Average: 10% 12% 10% 2016 Hr2t
Slide 19: Thoughtful Reserving Philosophy Anchored in Conservatism and Balance Sheet Preservation
Thoughtful Reserving Philosophy Anchored in Conservatism and Balance Sheet Preservation * IBNR reserves reflect growth of specialty long-tail lines = IGI took advantage of the improving market in specialty long-tail lines with Q2 2021 rate increases on average of 31% ory of releasing reserves once l
Slide 20: Optimized Global Operations with Physical Presence in Key Markets
6 } Optimized Global Operations with Physical Presence in Key Markets Non-Underwriting Employees by Location London Labuaf 2818" atta | i coe a Nae Dubai 2% 2% ‘Amman 143 J 9 London London 33 8 Dubal 4 ? Labuan 3 == : NNon-UIW Total 127 uta dae East underwriting hut ‘sia underrng hub Underwriters by
Slide 21: High Quality ROAE with Managed Volatility Among Peers
e High Quality ROAE with Managed Volatility Among Peers Higher Returns, Volatility of Annual ROTE (Determined By Sharpe Ratio) Lower Volatility Sth Quntile ‘4th Quintile 3rd Quintile 2nd Quintile ‘4st Quintile (Highest) (Lowest) Ls Po iBcca VE KNSL eHRTs © au AMS ec ame ee RU : TRV PLMR Isic H ears
Slide 22: Opportunity to Capitalize on Sector Tailwinds in Core Business
(3 } Opportunity to Capitalize on Sector Tailwinds in Core Business YTD Cumulative Net Rate Movement Specialty Short-Tail Specialty Long-Tail 33.7% 31.6% 31.0% 29.2% 29.5% 30.2% 24.9% 23.1% 20.4% 193% 18.2% 184% ae 10.0% 9.6% LL [| J [ [ Mar 31 Jun 30 Sep 30 Dec'31 Mar31 Jun 30 Sep 30 Dec 31 Mar 31
Slide 23: Well-positioned for Future Shareholder Value Creation Opportunities
(9) Well-positioned for Future Shareholder Value Creation Opportunities Continued build out of U.S. presence / business = $13.8mm of gross written premiums in H1 2021 vs. $9.2mm of gross written premiums in H1 2020 Capitalize on Pp market opps = IGI Europe up and running in Malta with experienced te
Slide 24: Financial Performance
FINANCIAL PERFORMANCE Section 3
Slide 25: Selected Financial Data
Selected Financial Data ‘Year ended December 34 ‘Quarter ended, June 30, (sin mm) 2016 2017 2018 2019 2020 2020 2021 Operating Results: Gross Written Premiums, $232.2 $278.1 $3018 $349.2 $4673 31373 $166.1 LUnderwiting Income 518 238 56.1 520 174 29 209 [Core Operating Earning $29.5 $13 $28.6 $21.4
Slide 26: Defensively Positioned, Conservative Investment Portfolio
Defensively Positioned, Conservative Investment Portfolio Total Investment Income, Net ($mm) Total Investments and Cash Breakdown Real Estate ash & Cash Equity shares 26% quivalents 5.8% 19.8% June 30, 2021 Total Investments and Cash: $853.0 million Fixed Income Portfolio Credit Ratings Non-Investme
Slide 27: Appendix
Appendix
Slide 28: IFRS Summary Income Statement
IFRS Summary Income Statement (Sin mm) Gross Written Premiums $275. Reinsurance Share of Insurance Premiums (1143) Net Written Premiums $160.8 [Net Change in Unearned Premiums a2 (140) (20.1) Net Premiums Earned $1879 $146.7 $1833 Net Claims and Claim Adjustment Expenses ws) (e589) (85.3) [Net Polic
Slide 29: IFRS Reconciliation — Core Operating Earnings
IFRS Reconciliation — Core Operating Earnings Profit For the Period $329 $70 $255 $236 $316 $120 $56 [Net Realized Losses (Gains) on Investments en en a3) (1.0) 09) a3) (04) [Net Impairment Losses Recognized in Eamings 03 oa 00 0) : é . ald Love (een ladon on nc . 7 ae as . fr ai Expected Crecit Los
Slide 30: Book Value per Common Share and Diluted Book Value per Common Share
Book Value per Common Share and Diluted Book Value per Common Share (8 and share count in mm, except per share values) ‘As of June 30, 2021 Shares ‘Common Book Value Outstanding Equity per Share Potential Shares Dilutive Impact of Shares Subject to Earn Out: Earn Out Eam Out Inthe-Money _impactto.__
Slide 31: For more information:
For more information: Investor Relations Robin Sidders (Head of Investor Relations) Email: Robin.Sidders@iginsure.com Telephone: +44 2072 200100 Mobile: +44 7384 514785 Operational Headquarters, Jordan General iting / Jordan “Exempted” PO Box 941428, 74 Abdel Hamid Sharaf St., Amman 11194, Jordan Te
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