International General Insurance Holdings Ltd. · NASDAQ:IGIC
International General Insurance — SPAC Merger (November 2019)
38 slides from International General Insurance's SPAC merger presentation, Nov 20, 2019
Slide 1: IGI Investor Presentation November 2019
INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED IGI Investor Presentation November 2019
Slide 2: Today's Presenters
Today’s Presenters 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 of HCC Insurance Waleed JabshehPresidentOve
Slide 3: Contents
CONTENTS COMPANY OVERVIEW Section 1 INVESTMENT HIGHLIGHTS Section 2 FINANCIAL OVERVIEW Section 3 TRANSACTION OVERVIEW Section 4 SUPPLEMENTAL MATERIALS Section 5
Slide 4: Company Overview
Section 1 COMPANY OVERVIEW
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 Leverage0% Total Value Creation 10-Year CAGR(1)10% Cash & Short Term Deposits as% of Total Investable Asse
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&P Commenced underwriting reinsurance business 2008Assigned BBB+ rating by S&P and A- rating by A.M. Best Established IGI Dubai 2010Est
Slide 7: Opportunity for IGI to Capitalize on Sector Tailwinds & Partner with Industry Veterans
Opportunity for IGI to Capitalize on Sector Tailwinds & Partner with Industry Veterans Market-Leading Insurance Managers and Owners Partnering with “Like-Minded” Respected Public-Company Insurance Veterans Tiberius Board is Complementary Attractive Market Opportunity Management would like to continu
Slide 8: Conservative Specialty-Class Individual Risk Underwriter
Conservative Specialty-Class Individual Risk Underwriter $16 $24 $27 $23 $9 8.2% 15.1% 17.4% 15.1% 4.9% 2014 2015 2016 2017 2018Favorable Development / Net Premiums Earned Individually Underwritten 70% 6 International General Insurance Holdings Limited MGA-Originated Business 25% 2018 Gross Premiums
Slide 9: Broad Distribution Network
13% 13% 6% 4% 4% 2% 2% 2% 2% 29% Gallagher Marsh Willis JLT AON Miller THB Price Forbes UIB RKH Group Others Broad Distribution Network IGI has Long-Standing Relationships with an Array of Brokers that have “Boots on the Ground” Top 5: 59%24% Note: Financial statements of IGI have been prepared in a
Slide 10: Investment Highlights
Section 2 INVESTMENT HIGHLIGHTS
Slide 11: Investment Highlights
Investment Highlights Well Defined Levers for Value Creation Management has received numerous industry awards and is recognized for its client service Well-diversified book of 17 business lines (including sub-classes) spanning across attractive specialty and niche products Prudent, sound individual
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
$203$179$153 $226 $240 $252 $242 $231 $275 $302 $340 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Steadily Growing and Increasingly Diversified Specialty (Re)Insurer Accident Year GPW by Business Line ($mm) 2009-2019E CAGR: 8% 2 Strong Cycle information. 13 International General Insurance
Slide 14: Disciplined Risk Selection and Prudent Risk Management Framework
Disciplined Risk Selection and Prudent Risk Management Framework 3 Energy Professional Liability & Financial Institution Lines Marine Ports and Terminals Aviation Reinsurance Engineering Political Violence 0% 20% 40% 60% 80% 100% 0% 100% Property(2) Source: Management information. Note: Financial st
Slide 15: Underwriting in Recognized Markets w/ Differentiated Geographical Exposure
Underwriting in Recognized Markets w / Differentiated Geographical Exposure Latin America 17% Worldwide17% UK 25% Continental Europe 15% Middle East 12% Asia11% Africa 3% 2018 GPW:$302m Underwriters by Location Comprises MENA ($37m), Asia ($32m) and Africa ($9m) Middle East, Africa and Asia (26%) Eu
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 PRA Robust 287% Bermuda solvency ratio supports one of the highest ratings in the MENA region(2) No financial leverage 154% 152% 162% 154% 157%130% 135% 2012 2013 2014 2015 2016 2017 2018 Conservative Balance Sheet and Capital Management Seamless communication among actu
Slide 18: Underwriting Expertise & Limited Investment Risk Drive Value Creation
9.1% 10.2% 90.4% Underwriting Expertise & Limited Investment Risk Drive Value Creation Investment Portfolio(1) Combined Ratio (2009-2018) Real Estate 6% Equity Other 5% 4% IGI Total Value Creation per Share Since Inception(2) IGI Peer Median(3) Total Value Creation CAGR (2009-2018)(2) 442 461 102 10
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 BEZ-LON P/BV: 2.34x RLI P/BV: 4.38x HSX-LON P/BV: 1.74x JRVR P/BV: 1.42x WRB P/BV: 2.06x ARGO P/BV: 1.12x LRE-LON P/BV: 1.61x RNR P/BV: 1.53x RE P/BV: 1.21x MKL P/BV: 1.46x AXS P/BV: 1.03x 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% 18.0% 0.0%
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” $153 $179 $203 $226 $240 $252 $242 $231 $275 $302 $340 $420 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2020E Gross Premiums Written ($mm) Un-Levered Operating Return On Equity Net Operating Income ($mm) Historical Average 90%
Slide 23: Illustrative Value Lever Analysis
Illustrative Value Lever Analysis ($ in mm) Organic GPW growth from 2019 to 2020.$36mm of transaction proceeds (approximately one-third of the total) deployed at 0.7x net premium written leverage at combined ratio of 91%.Assumes investment of transaction proceeds at net investment yield of 3.0%. (1)
Slide 24: Transaction Overview
Section 4 Transaction Overview
Slide 25: Transaction Sources and Uses; Pro Forma Ownership
Equity Consideration to IGI $306 Equity Consideration to IGI $306 Cash - IPO Proceeds $180 Cash to IGI Shareholders $80 Forward Commitment$25 PIPE Proceeds $24 Growth Capital$124 Sources: $535 Uses: $535 Current IGI Shareholders (Jabsheh Family) 24% Current IGI Shareholders (Non-Jabsheh)31% SPAC IPO
Slide 26: Attractive Entry Valuation Relative to Specialty Peers
1.26x 1.59x Peer Median 13.5x 16.6x 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 11/15/2019. Financial statements of IGI have been prepared in accordance with International Financi
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 28 International General Insurance Holdings Limited 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
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 31 International General Insurance Holdings Limited 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. Year Ende
Slide 32: IFRS Summary Income Statement
IFRS Summary Income Statement 32 International General Insurance Holdings Limited 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 expense
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-event- Net PML of $14mm in 1:250 event Catastrophe Risk Reinsurance strategy combination of quota
Slide 34: IGI Partners with Well-Rated Reinsurance Partners
IGI Partners with Well-Rated Reinsurance Partners 34 International General Insurance Holdings Limited Excess of Loss Quota Share Participant AM Best GPW ($) Argo A $8.3 Munich Re A+ 3.3 Transatlantic Re A+ 2.1 Hannover A+ 1.7 Aspen A 1.5 Swiss Re A+ 1.0 Barbican (Synd. 1955) A 0.9 Talbot (Synd. 1984
Slide 35: History of Consistent Favorable Reserve Development
History of Consistent Favorable Reserve Development 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 NPE $97,260 $97,702 $119,276 $148,443 $180,649 $189,541 $155,762 $156,903 $154,809 $182,054 A ccident Year - Ne t Incurred Losse s Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Yr
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 Internationa
Slide 37: Peer Trading Comparables
Peer Trading Comparables Source: FactSet, SNL Financial. Market data as of 11/15/2019. 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 enter into investment activity, nor does it purport to give legal, tax or investment advice. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. Internat
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