International General Insurance Holdings Ltd. · NASDAQ:IGIC
International General Insurance — SPAC Merger (October 2019)
38 slides from International General Insurance's SPAC merger presentation, Oct 11, 2019
Slide 1: IGI Investor Presentation October 2019
IGI Investor Presentation October 2019
Slide 2: Today's Presenters
Today’s Presenters (1) Abu Dhabi National Insurance Company. Wasef JabshehFounder, Vice Chairman & CEOOver 50 years insurance experienceEstablished ADNIC(1), Middle East Insurance Brokers and International Marine & General Insurance Co. in 1991, which was sold to HCC in 1994Previously on the board o
Slide 3: COMPANY OVERVIEW Section INVESTMENT HIGHLIGHTS Section FINANCIAL OVERVIEW Section 3 TRANSACTION OVERVIEW Section 4
COMPANY OVERVIEW Section 1 INVESTMENT HIGHLIGHTS Section 2 FINANCIAL OVERVIEW Section 3 TRANSACTION OVERVIEW Section 4 SUPPLEMENTAL MATERIALS Section 5
Slide 4: Company Overview
COMPANY OVERVIEW Section 1 |
Slide 5: Specialty (Re)Insurer With 17-Yr Track Record Maximizing Total Value Creation
Specialty (Re)Insurer With 17-Yr Track Record Maximizing Total Value Creation 2019E GPW$340mm London Bermuda Casablanca Amman Dubai Kuala Lumpur Combined Ratio (Last 10 Years Avg.)90% Financial Leverage 0% Total Value Creation 10-Year CAGR(1)10% Cash & Short Term Deposits as % of Total Investable As
Slide 6: Evolution Into a Global Specialty (Re)Insurer
Evolution Into a Global Specialty (Re)Insurer 2002Commenced operations in Jordan, underwriting energy, property and engineering business 2005Assigned BBB rating by S&PCommenced underwriting reinsurance business 2008Assigned BBB+ rating by S&P and A- rating by A.M. BestEstablished IGI Dubai 2010Estab
Slide 7: Opportunity for IGI to Capitalize on Sector Tailwinds & Partner with Industry Veterans
Property direct and facultative underwriters are continuing to achieve double-digit rate rises on renewal business as they ride momentum fuelled by the withdrawal of capacity from major US domestic writers (May 2019) Opportunity for IGI to Capitalize on Sector Tailwinds & Partner with Industry Veter
Slide 8: Conservative Specialty-Class Individual Risk Underwriter
Conservative Specialty-Class Individual Risk Underwriter 2018 Gross Premiums Written: $302mm In-depth Risk Underwriting Culture Matched with Conservative Reserving Philosophy Note: Financial statements of IGI have been prepared in accordance with International Financial Reporting Standards (IFRS), a
Slide 9: Broad Distribution Network
Broad Distribution Network IGI has Long-Standing Relationships with an Array of Brokers that have “Boots on the Ground” By 2018 Gross Premiums Written Top 10: 71% Top 5: 59% Note: Financial statements of IGI have been prepared in accordance with International Financial Reporting Standards (IFRS), as
Slide 10: Investment Highlights
Section 2 INVESTMENT HIGHLIGHTS
Slide 11: Investment Highlights
Investment Highlights Market Respected and Recognized Management Team Multi-Line Specialty (Re)Insurer Individual Risk Selection & Underwriting Differentiated Geographical Footprint Scalable Operating Platform Conservative Balance Sheet and Capital Management Well Defined Levers for Value Creation M
Slide 12: Market Respected and Recognized Management Team
Market Respected and Recognized Management Team 1 Source: Company filings, website. Under Wasef’s leadership, IGI is now one of the most successful reinsurance companies in the Middle East and Northern Africa region. He has transformed it into a truly global company, writing... business in more than
Slide 13: Steadily Growing and Increasingly Diversified Specialty (Re)Insurer
Steadily Growing and Increasingly Diversified Specialty (Re)Insurer Accident Year GPW by Business Line ($mm) 2009-2019E CAGR: 8% 2 Strong Cycle Management Note: Financial statements of IGI have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the Int
Slide 14: Disciplined Risk Selection and Prudent Risk Management Framework
Disciplined Risk Selection and Prudent Risk Management Framework 3 Source: Management information. Note: Financial statements of IGI have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the International Accounting Standards Board.(1) Size of bubble
Slide 15: Underwriting in Recognized Markets w/ Differentiated Geographical Exposure
Underwriting in Recognized Markets w / Differentiated Geographical Exposure 2018 GPW:$302m Underwriters by Location Comprises MENA ($37m), Asia ($32m) and Africa ($9m) Middle East, Africa and Asia (26%) Europe (40%) Comprises Central America ($27m) and South America ($26m) Latin America (17%) Compri
Slide 16: Scalable Tech-Enabled Operating Platform
Scalable Tech-Enabled Operating Platform 5 Largely London-based underwriting staff supported by back and middle-office operations in Amman (Jordan)Amman hub provides central services to global underwriting platformAverage annual salary of ~$26k in Jordan for support staff(1) Cost-Efficient, Optimize
Slide 17: Conservative Balance Sheet and Capital Management
Regulated by BMA, UK FCA and PRARobust 287% Bermuda solvency ratio supports one of the highest ratings in the MENA region(2)No financial leverage Conservative Balance Sheet and Capital Management Seamless communication among actuarial reserving team, underwriting and claimsReserve testing performed
Slide 18: Underwriting Expertise & Limited Investment Risk Drive Value Creation
Underwriting Expertise & Limited Investment Risk Drive Value Creation Investment Portfolio(1) Combined Ratio (2009-2018) IGI 2018Y Yield: 2.1% IGI Total Value Creation per Share Since Inception(2) (3) Total Value Creation CAGR (2009-2018)(2) IGI Combined Ratio Compared to Industry 7 Peer 10-Yr Avg:
Slide 19: High Quality ROE with Limited Volatility Among Best-in-Class Peers
High Quality ROE with Limited Volatility Among Best-in-Class Peers 8 Note: Bubble size representative of P/BV multiple. Source: SNL Financial. Note: Financial statements of IGI have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the International A
Slide 20: Well Defined Levers for Risk-Adjusted Value Creation
Well Defined Levers for Risk-Adjusted Value Creation 9 Reactivate IGI’s existing Lloyd's coverholder platform (North Star)Leverage our core underwriting skills to manage third-party capitalUse of platform to add scale without incremental balance sheet or underwriting risk Leverage Lloyd’s Coverholde
Slide 21: Financial Overview
Section 3 FINANCIAL OVERVIEW
Slide 22: Track Record of Delivering Results Through the Market Cycle
Track Record of Delivering Results Through the “Market Cycle” Combined Ratio Gross Premiums Written ($mm) Un-Levered Operating Return On Equity Net Operating Income ($mm) ’09-’18 CAGR: 7.8% ’09-’18 CAGR: 12.8% 13% ’18-’19E Growth Reflective of Improving Market Conditions Source: IGI annual reports.
Slide 23: Illustrative Value Lever Analysis
Illustrative Value Lever Analysis B C A ($ in mm) (1) Organic GPW growth from 2019 to 2020.(2) $35mm of transaction proceeds (approximately one-third of the total) deployed at 0.7x net premium written leverage at combined ratio of 91%.(3) Assumes investment of transaction proceeds at net investment
Slide 24: Transaction Overview
Section 4 Transaction Overview
Slide 25: $100mm+ of Fully Committed Financing = Transaction Certainty
$100mm+ of Fully Committed Financing = Transaction Certainty Pro Forma Ownership(1) Transaction Sources and Uses(1) ($mm) Pro Forma Shares Outstanding: 52.682 million(5) Assumes no redemptions by Tiberius shareholders (2) Jabsheh Family Pro Forma Ownership of ~24% in IGI Demonstrates Strong Alignmen
Slide 26: Attractive Entry Valuation Relative to Specialty Peers
Attractive Entry Valuation Relative to Specialty Peers Note: Peers include ARGO, HSX, LRE, BEZ, RLI, JRVR, KNSL, AXS, ACGL, MKL, WRB, RE, and RNR. Market data as of 10/3/2019. Financial statements of IGI have been prepared in accordance with International Financial Reporting Standards (IFRS), as ado
Slide 27: Transaction
Transaction Tiberius Acquisition Corporation (“Tiberius”) is a Nasdaq-listed special purpose acquisition companyA newly formed Bermuda holding company (“PubCo”) will acquire Tiberius through a subsidiary merger, with Tiberius security holders receiving equivalent securities of PubCoPubCo will acquir
Slide 28: Transaction Steps & Timeline
Transaction Steps & Timeline October 10, 2019: Transaction announcement / Tiberius 8-K filing with SECQ4 2019: Initial Form F-4 filed with the SECQ1 2020: SEC approves Form F-4Q1 2020: Nasdaq Listing approvalQ1 2020: Tiberius Shareholder MeetingQ1 2020: Transaction close subject to regulatory approv
Slide 29: Supplemental Materials
Section 5 SUPPLEMENTAL MATERIALS
Slide 30: Operating Earnings and Summary Financial Metrics
Operating Earnings and Summary Financial Metrics Source: IGI annual reports. Note: Financial statements of IGI have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the International Accounting Standards Board.(1) Includes loss (gain) on revaluation,
Slide 31: IFRS Summary Balance Sheet
IFRS Summary Balance Sheet Source: IGI annual reports. Note: Financial statements of IGI have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the International Accounting Standards Board.
Slide 32: IFRS Summary Income Statement
IFRS Summary Income Statement Source: IGI annual reports. Financial statements of IGI have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the International Accounting Standards Board, 2017 expenses restated per 2018 annual report.
Slide 33: Reinsurance Program and Strategy to Mitigate Risk
Reinsurance Program and Strategy to Mitigate Risk Reinsurance strategy to protect capital and optimize underwriting profitability Catastrophe protection up to $87.5mm which protects against 1:250 single-eventNet PML of $14mm in 1:250 event Catastrophe Risk Reinsurance strategy combination of quota s
Slide 34: IGI Partners with Well-Rated Reinsurance Partners
IGI Partners with Well-Rated Reinsurance Partners Excess of Loss Quota Share Source: Management, AM Best. Based on 2018 GPW ($mm)
Slide 35: History of Consistent Favorable Reserve Development
History of Consistent Favorable Reserve Development Source: Management information.
Slide 36: Current Corporate Structure
Current Corporate Structure Source: Management information(1) Subsidiaries also include Specialty Mall Investment Co. (real estate properties development and lease) and IGI Services Limited (owning and chartering aircraft) which are wholly-owned by International General Insurance Co Ltd Bermuda. Int
Slide 37: Peer Trading Comparables
Peer Trading Comparables Source: FactSet, SNL Financial. Market data as of 10/3/2019. Note: Financial statements of IGI have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the International Accounting Standards Board. US Tangible Book Values as of
Slide 38: Disclaimer
DISCLAIMER This Investor Presentation is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of International General Insurance Holdings Ltd. (“IGI”) or Tiberius A
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