International General Insurance Holdings Ltd. · NASDAQ:IGIC
International General Insurance — Q1 2021 Earnings Presentation
32 slides from International General Insurance's earnings presentation, May 2021
Slide 1: IGI Investor Presentation Q1 2021
IGI Investor Presentation Q1 2021 May 2021
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 4 Investment Highlights 13 Financial Performance 25 Appendix 28
Slide 4: Company Overview
COMPANY OVERVIEW Section 1
Slide 5: IGI is a Specialty (Re)Insurer with a Proven Track Record
IGI is a Specialty (Re)Insurer with a Proven Track Record “Specialty”: (1) a distinctive mark or quality; (2) a product of a special kind or of special excellence”(1) IGI are specialists with recognized expertise in their lines of businesses Local, specialized knowledge resulting in a 5-point combin
Slide 6: Key Financial Metrics
Key Financial Metrics Market Capitalization / Stock Price (NASDAQ: IGIC) $391.5mm / $8.56(1) Shareholders’ Equity / BVPS $396.0mm / $8.71 LTM Gross Written Premium $468.7mm Q1 2021 Core Operating ROAE 14.9% 40% of annual net after-tax profit paid semi-annually a Dividends Paid $0.17 dividend for per
Slide 7: Developments
Overview Q1 2021 1.4% increase driven by portfolio $100.6 million Compared to $99.2mm in Q1'20 optimization achieving improved terms and Gross Written Premium conditions 84.6% Compared to 81.3% in Q1'20 5% favorable reserve development and 0.2% CAT ratio Financial Performance Combined Ratio 40bps im
Slide 8: IGI - Global Specialty (Re)Insurer Evolution
IGI - Global Specialty (Re)Insurer Evolution 2009 Commenced 2007 underwriting $50mm Established General Aviation capital raise Bermudian business 2012 subsidiary Commenced Commenced underwriting 2002 Commenced underwriting Ports & 2005 underwriting 2008 Professional Terminals Commenced business Assi
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 Reinsurance 9% Australasia South Reinsurance 2% America 9% North Worldwide 2% Marine America 4% Long-tail Cargo 4% 38% General 2% Aviation Africa Broker 1 6% 6% 16% Casua
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 IGIC Shareholder Base(1) Commentary 2.4% ✓ Strong alignment of interest through significant insider ownership ✓ Employee’s long-term commitment strengthened by share- based compensation (Omnibus Incentive Plan established in 2020) 29.8%
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 integrity, prioritizing honesty Innovative Genuine and doing what is right • Entrepreneurial • Collaborative environment approach ▪ Genuine culture that promotes • Employee • Global team responsib
Slide 13: Investment Highlights
INVESTMENT HIGHLIGHTS Section 2
Slide 14: Key Investment Highlights
Key Investment Highlights 1▪ Specialty Individual Risk Underwriter with Strategy to Protect Capital & Optimize Underwriting Profitability 2▪ Superior Underwriting Performance Even in Heavier Loss Years 3▪ Active Cycle Management Balancing Growth and Risk Selection 4▪ Track Record of Delivering Resul
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) Industry 2011 2012 2018 IGI Cat Loss Japan, New Hurricane Sandy Hurricane Michael, Combined
Slide 16: Superior Underwriting Performance Even in Heavier Loss Years
2 Superior Underwriting Performance Even in Heavier Loss Years Combined Ratio 120% IGI Combined Ratio 100% higher than peers 80% IGI Combined Ratio lower than peers 60% 40% Peer Average Combined Ratio(1): 94% IGI Average Combined Ratio: 89% 20% IGI Combined Ratio Advantage: 5% 0% 2011 2012 2013 2014
Slide 17: Active Cycle Management Balancing Growth and Risk Selection
3 Active Cycle Management Balancing Growth and Risk Selection GPW by Business Segment ($mm) Accelerating $467 $469 Growth $349 Strong Cycle Management $302 $275 $252 $242 $240 $232 $226 $203 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 LTM Q1'21 Short-Tail Long-Tail Reinsurance Prudent Growth a
Slide 18: Track Record of Delivering Results through the Market Cycle
4 Track Record of Delivering Results through the “Market Cycle” Combined Ratio 105% Average: 89% 94% 87% 89% 88% 86% 87% 89% 89% 84% 85% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1'21 Un-Levered Core Operating ROAE 15% Average: 10% 13% 12% 12% 12% 12% 10% 9% 10% 7% 0% 2011 2012 2013 2014 20
Slide 19: Thoughtful Reserving Philosophy Anchored in Conservatism and Balance Sheet Preservation
Thoughtful Reserving Philosophy Anchored in Conservatism and 5 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 Q1 2021 rate increases on average of 33.7% ▪ History of releasing reser
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 Casablanca Labuan London Dubai 1% Underwriting headquarters 2% 2% Bermuda Amman Group holding company domicile Operational headquarters Underwriting parent company London Amman 138 18% London 3
Slide 21: High Quality ROAE with Managed Volatility Among Peers
7 High Quality ROAE with Managed Volatility Among Peers Higher Returns, Volatility of Annual ROTE (Determined By Sharpe Ratio) Lower Volatility 5th Quntile 4th Quintile 3rd Quintile 2nd Quintile 1st Quintile (Highest) (Lowest) 50 40 30 20 10 0 0 HCI PGR IFC-CA KNSL 1st UVE HRTG AMSF CB Quintile ALL
Slide 22: Opportunity to Capitalize on Sector Tailwinds in Core Business
8 Opportunity to Capitalize on Sector Tailwinds in Core Business YTD Cumulative Net Rate Movement Specialty Short-Tail Specialty Long-Tail 33.7% 31.6% 29.5% 30.2% 29.2% 24.9% 23.1% 20.4% 19.3% 18.2% 18.4% 17.7% 10.0% 9.6% 8.3% 9.0% 7.2% 7.8% Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Ma
Slide 23: Well-positioned for Future Shareholder Value Creation Opportunities
9 Well-positioned for Future Shareholder Value Creation Opportunities Entry into U.S. market ▪ $22.9mm of gross written premiums for the last twelve months Capitalize on European market opportunities ▪ Application for Malta-based European platform progressing well Introduction of new lines of busine
Slide 24: Disconnect Between IGIC Fundamentals and Stock Price
10 Disconnect Between IGIC Fundamentals and Stock Price Q1’21 Financials Price Performance Since Q1’21 vs. Q1’20 Operating Return on Price-to-Book Multiple Combined Ratio IGIC IPO (3/18/20) Underwriting Revenue Growth Average Equity ARGO 87.9% KNSL 6.27x KNSL 37.1% KNSL 80.0% MKL 17.7% KNSL 73.1% RL
Slide 25: Financial Performance
FINANCIAL PERFORMANCE Section 3
Slide 26: Selected Financial Data
Selected Financial Data Year ended December 31, Quarter ended, March 31, ($ in mm) 2016 2017 2018 2019 2020 2020 2021 Operating Results: Gross Written Premiums $232.2 $275.1 $301.6 $349.2 $467.3 $99.2 $100.6 Underwriting Income 51.6 23.6 56.1 52.0 77.4 23.2 27.6 Core Operating Earnings $29.5 $1.3 $2
Slide 27: Defensively Positioned, Conservative Investment Portfolio
Defensively Positioned, Conservative Investment Portfolio Total Investment Income, Net ($mm) Total Investments and Cash Breakdown Real Estate Cash & Cash 4.0% Equivalents Equity Shares 6.0% 13.8% Term Deposits $5.0 Fixed Income 24.2% Securities 51.9% Q1 2021 Total Investments and Cash: $781.1 millio
Slide 28: Appendix
Appendix INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED International General Insurance Holdings Ltd.
Slide 29: IFRS Summary Income Statement
IFRS Summary Income Statement Year Ended December 31, Quarter Ended March 31, ($ in mm) 2016 2017 2018 2019 2020 2020 2021 Gross Written Premiums $232.3 $275.1 $301.6 $349.2 $467.3 $99.2 $100.6 Reinsurance Share of Insurance Premiums (82.7) (114.3) (98.2) (97.1) (128.9) (20.0) (23.5) Net Written Pre
Slide 30: IFRS Reconciliation – Core Operating Earnings
IFRS Reconciliation – Core Operating Earnings Year Ended December 31, Quarter Ended March 31, ($ in mm) 2016 2017 2018 2019 2020 2020 2021 Profit For the Period $32.9 $7.0 $25.5 $23.6 $31.6 ($0.9) $14.5 Net Realized Losses (Gains) on Investments (1) (2.7) (3.1) (1.3) (1.0) (0.9) - 0.1 Net Impairment
Slide 31: Book Value per Common Share and Diluted Book Value per Common Share
Book Value per Common Share and Diluted Book Value per Common Share ($ and share count in mm, except per share values) As of March 31, 2021 Shares Common Book Value Potential Shares Outstanding Equity per Share Basic Book Value per Share 45.471 $396.0 $8.71 Dilutive Impact of Shares Subject to Earn
Slide 32: For more information:
For more information: Investor Relations Registered and Head Office, Bermuda Robin Sidders (Head of Investor Relations) International General Insurance Holdings Ltd. Email: Robin.Sidders@iginsure.com 44 Church Street, Telephone: +44 2072 200100 Hamilton HM 12, Mobile: +44 7384 514785 Bermuda Telepho
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