International General Insurance Holdings Ltd. · NASDAQ:IGIC

International General Insurance — SPAC Merger (March 2020)

37 slides from International General Insurance's SPAC merger presentation, March 2020

  1. Slide 1: IGI Investor Presentation

    IGI Investor Presentation March 2020 INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED

  2. Slide 2: Contents

    CONTENTS COMPANY OVERVIEW Section 1 BUSINESS OVERVIEW Section 2 TRANSACTION OVERVIEW Section 3 FINANCIAL PERFORMANCE Section 4 RISK MANAGEMENT Section 5 CORPORATE GOVERNANCE Section 6

  3. Slide 3: Company Overview

    COMPANY OVERVIEW Section 1

  4. Slide 4: Specialty (Re)Insurer With 18-Yr Track Record Maximizing Total Value Creation

    Specialty (Re)Insurer With 18-Yr Track Record Maximizing Total Value Creation • Highly-rated international specialty (re)insurer with Cash & Short Core Operating 18-year track record and an A (Excellent) AM Best Term Deposits as ROAE rating with a Stable Outlook and an A- S&P rating 2019 GPW % of To

  5. Slide 5: Evolution Into a Global Specialty (Re)Insurer

    Evolution Into a Global Specialty (Re)Insurer 2009 Commenced $50mm $75mm capital underwriting General Aviation capital raise raise 2007 business Established Bermudian subsidiary Commenced underwriting 2002 2005 Commenced 2008 Professional Commenced Assigned BBB rating 2006 underwriting Assigned BBB+

  6. Slide 6: Steadily Growing and Increasingly Diversified Specialty (Re)Insurer

    Steadily Growing and Increasingly Diversified Specialty (Re)Insurer Accident Year GPW by Business Line ($mm) Property (15% of 2018 GPW)  Risks vary from large hotels to industrial manufacturing and forestry  Conservative in risks related to hazardous Property operations (15% of 2018 GPW)  Growth

  7. Slide 7: Market Respected and Recognized Executive Management Team

    Market Respected and Recognized Executive Management Team Wasef Jabsheh Hatem Jabsheh Founder, Vice Chairman & CEO Group COO • Over 50 years insurance experience • Over 18 years industry experience • Established ADNIC(1), Middle East Insurance • Established an asset management and Brokers and Intern

  8. Slide 8: Optimized, Cost-Efficient and Diverse Global Operations

    Optimized, Cost-Efficient and Diverse Global Operations Non-Underwriting Staff by Location Underwriters by Location Casablanca Labuan Labuan Dubai 2% Casablanca 2% Underwriting 1% 3% 8% Headquarters London in London 13% Dubai 12% London Amman 57% 21% Amman 81% 51 Underwriters In a mainly male-domina

  9. Slide 9: Business Overview

    BUSINESS OVERVIEW Section 2 savin —

  10. Slide 10: Conservative Specialty-Class Individual Risk Underwriter

    Conservative Specialty-Class Individual Risk Underwriter Intelligent Risk Selection & Management Favorable Reserve Development(1)  Class-underwriting profit-centers irrespective of geography  Conservative approach to setting reserves  In-depth risk assessment of underlying exposure  Facultative

  11. Slide 11: Broad Distribution Network

    Broad Distribution Network By 2018 Gross Written Premiums (% of Total) Top 10: 71% 29% Top 5: 59% 24% 13% 13% 6% 4% 4% 2% 2% 2% 2% Gallagher Marsh Willis JLT AON Miller THB Price Forbes UIB RKH Group Others IGI has Long-Standing Relationships with an Array of Brokers that have “Boots on the Ground”

  12. Slide 12: Opportunity to Capitalize on Sector Tailwinds in Core Business

    Opportunity to Capitalize on Sector Tailwinds in Core Business with… Deploying Capital into a Hardening Market IGI’s 2019 Quarterly Year-over-Year Rate Increases Pricing for excess and surplus (E&S) risks rose by between 5% and 20% during the fourth quarter [of 2019]. (January 2020) 29.7% 27.0% 23.1

  13. Slide 13: Differentiated Global Exposure in Attractive Markets

    …Differentiated Global Exposure in Attractive Markets Exposure to 200+ Countries and Territories (1) Attractive Industry Rate Momentum and Dynamics Q1'19 3.3% 8.9% Worldwide Q2'19 6.3% 10.1% Africa Q3'19 8.3% 15.9% Asia 5% Latin America Q4'19 10.6% 22.5% 9% 18% Q1'19 2.9% 16.1% Q2'19 6.3% 21.3% UK M

  14. Slide 14: Transaction Overview

    TRANSACTION OVERVIEW Section 3

  15. Slide 15: Transaction Creates a ~$550mm Publicly-Listed Specialty (Re)Insurer

    Transaction Creates a ~$550mm(1) Publicly-Listed Specialty (Re)Insurer  Tiberius Acquisition Corporation (“Tiberius”) is a Nasdaq-listed special purpose acquisition company  A newly formed Bermuda holding company (“PubCo”) will acquire Tiberius through a subsidiary merger, with Tiberius security h

  16. Slide 16: Attractive Entry Valuation Relative to Specialty Peers

    Attractive Entry Valuation Relative to Specialty Peers Price to Book Value 10 Year Avg. Core Operating ROAE Dividend Yield 29% Discount No Fin. Leverage 50%+ Investment Portfolio in Cash 1.78x 1.7% Peer Median 9.8% (at 2/28): 1.57x 9.4% 1.5% 1.27x (1) (2) (3) (4) IGI Peer Median IGI Peer Median IGI

  17. Slide 17: $100mm+ of Fully Committed Financing = Transaction Certainty

    $100mm+ of Fully Committed Financing = Transaction Certainty Assumes no redemptions by Tiberius shareholders Transaction Sources and Uses(1) ($mm) Pro Forma Ownership(1) Fully committed financing from existing Forward Purchase Up to 70%+ Free Float(4) Agreements and certain Tiberius investors, backs

  18. Slide 18: Transaction Steps & Timeline

    Transaction Steps & Timeline  March 17, 2020: Anticipated transaction close  March 13, 2020: Tiberius Shareholder Meeting  Week of March 2, 2020: Anticipated Nasdaq Listing approval  February 25, 2020: FCA regulatory approval received  February 24, 2020: PRA regulatory approval received  Febru

  19. Slide 19: Financial Performance

    FINANCIAL PERFORMANCE Section 4

  20. Slide 20: Underwriting Expertise & Limited Investment Risk Drive Value Creation

    Underwriting Expertise & Limited Investment Risk Drive Value Creation Combined Ratio (2010-2019) Investment Portfolio(1) Total Value Creation CAGR (2010-2019)(2) Equity 90.2% 7% 9.5% 9.2% Real Estate 6% Cash & S-T Gov. & Corp. 52% Fixed Income 35% IGI IGI Average Combined Ratio IGI 2019Y Yield: 1.8%

  21. Slide 21: 10 Year Average Operating ROAE

    High Quality ROAE with Limited Volatility Among Best-in-Class Peers Strong, low-volatility ROAE with no debt and 50%+ of 18.0% Investment Portfolio in Cash KNSL P/BV: 7.18x (2) HSX-LON P/BV: 1.86x (1) 15.0% RLI P/BV: 4.11x BEZ-LON P/BV: 2.42x LRE-LON P/BV: 1.77x 10 Year Average Operating ROAE 12.0%

  22. Slide 22: Track Record of Delivering Results Through the Market Cycle

    Track Record of Delivering Results Through the “Market Cycle” Written Premiums ($mm) Combined Ratio Increased retention in 24% ’18-’19 Growth Reflective Historical Average: 90% Hardening Market of Improving Market Conditions 105% $349 93% 94% 87% 89% 88% 86% 87% 89% 84% $302 $275 $240 $252 $242 $252

  23. Slide 23: Positioned to Deliver Double Digit Returns in Hardening Market

    Positioned to Deliver Double Digit Returns in “Hardening” Market Premium Leverage(1) Investment Leverage(2)  Current ROAE is unlevered 0.1x premium leverage = ∆ ROAE 55 bps 10% investment leverage = ∆ ROAE 18 bps 0.72x 201%  IGI’s Q4’19 average rate increases 0.58x 0.61x 180% over 20% 163% 168% 0.

  24. Slide 24: Historical Core Operating Earnings and Summary Financial Metrics

    Historical Core Operating Earnings and Summary Financial Metrics Year Ended December 31, ($ in mm) 2016 2017 2018 2019 Unaudited Profit For the Period $32.9 $7.0 $25.5 $23.6 Net Realized Losses (Gains) on investments (2.7) (3.1) (1.3) (1.0) Net Impairment Losses recognized in earnings 0.3 0.1 0.0 (0

  25. Slide 25: Historical IFRS Summary Income Statement

    Historical IFRS Summary Income Statement Year Ended December 31, ($ in mm) 2016 2017 2018 2019 Unaudited Gross Written Premiums $232.3 $275.1 $301.6 $349.3 Reinsurance Share of Insurance Premiums (82.7) (114.3) (98.2) (97.1) Net Written Premiums $149.6 $160.8 $203.4 $252.2 Net Change in Unearned Pre

  26. Slide 26: Historical IFRS Summary Balance Sheet

    Historical IFRS Summary Balance Sheet Year Ended December 31, ($ in mm) 2016 2017 2018 2019 Unaudited Investments: Investments in bonds, equities and other assets $233.8 $234.4 $200.9 - Investment properties 30.3 30.6 30.7 - Investments in associates 13.3 14.3 13.4 - Total Investments $277.4 $279.3

  27. Slide 27: Risk Management

    RISK MANAGEMENT Section 5

  28. Slide 28: Conservative Balance Sheet and Capital Management

    Conservative Balance Sheet and Capital Management Capital adequacy in excess of The ratings reflect IGI’s balance STABLE OUTLOOK STABLE OUTLOOK our AAA benchmark(1) sheet strength…as well as its Strong Credit RATING RATING strong operating performance, limited business profile and Ratings A- by S&P

  29. Slide 29: Disciplined Risk Selection and Prudent Risk Management Framework

    Disciplined Risk Selection and Prudent Risk Management Framework Prudent, Sound Underwriting Focused on Profitability(1) 2017 AY Cat Losses as a % of Equity(4) 100% 10.2% Ports and 7.6% Aviation Terminals 80% Professional 5 Year Average Claim & Claim Expense Ratio Liability & Financial Institution L

  30. Slide 30: Reinsurance Strategy to Protect Capital & Optimize Underwriting Profitability

    Reinsurance Strategy to Protect Capital & Optimize Underwriting Profitability Top 5 Reinsurers by Credit Ratings Reinsurance Strategy By 2018 GPW  Reinsurance strategy combination of quota Quota Share AM Best share, facultative and XOL coverage Argo A-  Coverage tailored according to the Protectio

  31. Slide 31: Reserving Framework

    Reserving Framework  IGI took advantage of improving market in specialty long-tail segment in casualty, financial institutions and Directors & Officers liability lines  Q4 2019 rate increase in specialty long-tail segment ranging from 13% to 39%  IBNR reserves reflect growth of specialty long-tai

  32. Slide 32: History of Consistent Favorable Reserve Development

    History of Consistent Favorable Reserve Development ($ in mm) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 NPE $97.3 $97.7 $119.3 $148.4 $180.6 $189.5 $155.8 $157.9 $146.7 $183.3 $215.5 Accident Year - Net Incurred Losses Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

  33. Slide 33: Corporate Governance

    CORPORATE GOVERNANCE Section 6

  34. Slide 34: IGI Values

    IGI Values Culture of collaboration, transparency and respect We listen, consider and endeavor to offer solutions to all our customers. We encourage Innovative our employees to innovate and to come up with new ideas and initiatives We are a global team, supporting and collaborating with each other,

  35. Slide 35: Highly Respected & Qualified Independent Board of Directors

    Highly Respected & Qualified Independent Board of Directors Proposed IGI Board of Directors Post Listing(1) WASEF JABSHEH – CEO, IGI MICHAEL GRAY(2) Chairman Independent Director • CEO and founder of IGI, 2001 • CEO of Tiberius and The Gray Insurance Company • More than 50 years specializing in mari

  36. Slide 36: Governance Structure Transitioning to Public Company Standards

    Governance Structure Transitioning to Public Company Standards Corporate Social Hired Head of IR Disclosure Responsibility hired with 15+ years Committee principles and of public insurance Listed established to report programs company experience to Audit Committee established FOUNDED: 2001 Listed Le

  37. Slide 37: 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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