International General Insurance Holdings Ltd. · NASDAQ:IGIC

International General Insurance — SPAC Merger (December 2019)

39 slides from International General Insurance's SPAC merger presentation, December 2019

  1. Slide 1: IGI Investor Presentation

    IGI Investor Presentation December 2019 INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED

  2. Slide 2: Today's Presenters

    Today’s Presenters 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 International Marine & General brokerage busi

  3. Slide 3: Contents

    CONTENTS COMPANY OVERVIEW Section 1 INVESTMENT HIGHLIGHTS Section 2 FINANCIAL OVERVIEW Section 3 TRANSACTION OVERVIEW Section 4 SUPPLEMENTAL MATERIALS Section 5

  4. Slide 4: Company Overview

    COMPANY OVERVIEW Section 1

  5. 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 • Highly-rated international specialist (re)insurer with Cash & Short 17-year track record and an A (Excellent) AM Best Term Deposits as Operating ROE rating with a Stable Outlook and an A- S&P rating 2019E GPW % of Total

  6. Slide 6: 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+

  7. 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 Attractive Market Opportunity Tiberius Board is Complementary  Management would like to continue to participate in significant C. ALLEN BRADLEY, JR. upside potential for IGI as meaningful owners AMSF stock perfor

  8. Slide 8: Conservative Specialty-Class Individual Risk Underwriter

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

  9. Slide 9: Broad Distribution Network

    Broad Distribution Network By 2018 Gross Premiums Written (% 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”

  10. Slide 10: Investment Highlights

    INVESTMENT HIGHLIGHTS Section 2

  11. Slide 11: Investment Highlights

    Investment Highlights 1 Market Respected and  Management has received numerous industry awards and is recognized for its client service Recognized Management Team 2  Well-diversified book of 17 business lines (including sub-classes) spanning across attractive Multi-Line Specialty (Re)Insurer speci

  12. Slide 12: Market Respected and Recognized Management Team

    1 Market Respected and Recognized Management Team Wasef Jabsheh International General Insurance 2019 EY Entrepreneur of the Year 2018 Reinsurer of the Year for Jordan Our clients have benefitted from their Our experience with them is as a tough but fair Specialty insurer IGI has a record of consiste

  13. Slide 13: Steadily Growing and Increasingly Diversified Specialty (Re)Insurer

    2 Steadily Growing and Increasingly Diversified Specialty (Re)Insurer Accident Year GPW by Business Line ($mm)  Risks vary from large hotels to industrial Specialty manufacturing and forestry Short-Tail -  Conservative in risks related to hazardous $340 Property operations (15% of 2018 GPW)  Grow

  14. Slide 14: Disciplined Risk Selection and Prudent Risk Management Framework

    3 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

  15. Slide 15: Underwriting in Recognized Markets w/ Differentiated Geographical Exposure

    4 Underwriting in Recognized Markets w / Differentiated Geographical Exposure Exposure to 200+ Countries Underwriters by Location Labuan Middle East, Africa and Asia (24%) Latin America (18%) Casablanca 1 4  Comprises MENA ($32m), Asia  Comprises Central America ($28m) and Africa ($14m) ($27m) and

  16. Slide 16: Scalable Tech-Enabled Operating Platform

    5 Scalable Tech-Enabled Operating Platform  Largely London-based underwriting staff supported by back and middle-office operations in Amman (Jordan)  Amman hub provides central services to global underwriting platform  Average annual salary of ~$26k in Jordan for support staff(1) Employees (excl.

  17. Slide 17: Conservative Balance Sheet and Capital Management

    6 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&

  18. Slide 18: Underwriting Expertise & Limited Investment Risk Drive Value Creation

    7 Underwriting Expertise & Limited Investment Risk Drive Value Creation Combined Ratio (2009-2018) Investment Portfolio(1) Total Value Creation CAGR (2009-2018)(2) Equity Other 90.5% 5% 2% 9.9% Real 9.0% Estate 9% Cash & S-T 51% Gov. & Corp. Fixed Income 33% IGI IGI Average Combined Ratio IGI 2018Y

  19. Slide 19: High Quality ROE with Limited Volatility Among Best-in-Class Peers

    8 High Quality ROE with Limited Volatility Among Best-in-Class Peers 18.0% Historically HSX-LON P/BV: 1.90x strong, low- volatility ROE with no Debt KNSL P/BV: 5.75x(1) 15.0% and 50%+ of BEZ-LON P/BV: 2.33x Investment LRE-LON P/BV: 1.72x RLI P/BV: 4.10x Portfolio in Cash 10 Year Average Operating RO

  20. Slide 20: Well Defined Levers for Risk-Adjusted Value Creation

    9 Well Defined Levers for Risk-Adjusted Value Creation A  Well-positioned to capitalize on recent developments in the London and the Middle East insurance markets − Lloyd’s increasingly focused on portfolio remediation to improve underwriting profitability Organic Growth in − Capacity reductions /

  21. Slide 21: Financial Overview

    FINANCIAL OVERVIEW Section 3

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

    Track Record of Delivering Results Through the “Market Cycle” Assumes capital contribution at transaction close on 3/31/20 Gross Premiums Written ($mm) Combined Ratio 13% ’18-’19E Growth Reflective Historical Results Include Projections Exclude of Improving Market Conditions PY Reserve Development P

  23. Slide 23: Illustrative Value Lever Analysis

    Illustrative Value Lever Analysis ($ in mm) Well-Priced Premiums (1) (2) (4) Earned A B C Through and Investment Portfolio Fully Repositioned $2 ($3) $37 $4 $3 $33 $1 $30 2019E Standalone Organic Growth 2020E Standalone New Business Inv. Income on Existing Portfolio Public Company 2020E Proforma 202

  24. Slide 24: Transaction Overview

    Transaction Overview Section 4

  25. Slide 25: $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

  26. Slide 26: Attractive Entry Valuation Relative to Specialty Peers

    Attractive Entry Valuation Relative to Specialty Peers Price to Book Value(1) Price to 2020E Earnings 5 Year Avg. Operating ROE Dividend Yield No Fin. Leverage 50%+ Investment Superior Portfolio in Cash Regular 25% Dividend Discount 23% Discount 1.64x 9.0% 9.0% 2.7% 17.7x 1.26x 13.2x 1.6% (2) (3) (4

  27. Slide 27: 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

  28. Slide 28: Transaction Steps & Timeline

    Transaction Steps & Timeline  October 10, 2019: Transaction announcement / Tiberius 8-K filing with SEC  December 9, 2019: Initial Form F-4 filed with the SEC  Q1 2020: Anticipated effectiveness of Form F-4  Q1 2020: Anticipated Nasdaq Listing approval  Q1 2020: Tiberius Shareholder Meeting  Q

  29. Slide 29: Supplemental Materials

    SUPPLEMENTAL MATERIALS Section 5

  30. Slide 30: Operating Earnings and Summary Financial Metrics

    Operating Earnings and Summary Financial Metrics Year Ended December 31, 6 Months Ended June 30, Year Ended December 31, ($ in mm) 2016 2017 2018 2019 2019 2020E Profit For the Period $32.9 $7.0 $25.5 $14.9 $29.7 $37.3 Net Realized Losses (Gains) on investments (2.7) (3.1) (1.3) (0.4) - -- Net Impai

  31. Slide 31: IFRS Summary Balance Sheet

    IFRS Summary Balance Sheet As of December 31, As of June 30, As of December 31, ($ in mm) 2016 2017 2018 2019 2019 2020E Assets Investments: Investments in bonds, equities and other assets $233.8 $234.4 $200.9 $220.6 -- -- Investment properties 30.3 30.6 30.7 31.1 -- -- Investments in associates 13.

  32. Slide 32: IFRS Summary Income Statement

    IFRS Summary Income Statement Year Ended December 31, 6 Months Ended June 30, Year Ended December 31, ($ in mm) 2016 2017 2018 2019 2019 2020E Gross Written Premiums $232.3 $275.1 $301.6 $186.3 $340.0 $420.0 Reinsurance Share of Insurance Premiums (82.7) (114.3) (98.2) (49.0) (113.2) (140.5) Net Wri

  33. Slide 33: Illustrative Double-Digit Earnings Power Without Financial Leverage

    Illustrative Double-Digit Earnings Power Without Financial Leverage IGI’s Returns Driven by Five Key Inputs 1 Premium Leverage 2 Underwriting Profit 3 Investment Leverage 4 Investment Yield 5 Tax Rate Operating Return on Equity Calculation UNLEVERED Operating Return on Equity Sensitivity Analysis IG

  34. Slide 34: Reinsurance Program and Strategy to Mitigate Risk

    Reinsurance Program and Strategy to Mitigate Risk Reinsurance strategy to protect capital and optimize underwriting profitability  Reinsurance strategy combination of quota share, facultative and XOL coverage Protection  Coverage tailored according to the underlying exposure  Reinsurance panel co

  35. Slide 35: IGI Partners with Well-Rated Reinsurance Partners

    IGI Partners with Well-Rated Reinsurance Partners Based on 2018 GPW ($mm) Excess of Loss Quota Share Participant AM Best GPW ($) Participant AM Best GPW ($) Hannover A+ $8.6 Argo A $8.3 AIG Europe A 4.7 Munich Re A+ 3.3 Liberty (Synd. 4472) A 2.6 Transatlantic Re A+ 2.1 Hannover (Bermuda) A+ 2.6 Han

  36. Slide 36: History of Consistent Favorable Reserve Development

    History of Consistent Favorable Reserve Development ($mm) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 6/30/2019 NPE $97.3 $97.7 $119.3 $148.4 $180.6 $189.5 $155.8 $157.9 $146.7 $183.3 $103.5 Accident Year - Net Incurred Losses Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 6/3

  37. Slide 37: Current Corporate Structure

    Current Corporate Structure International General Insurance Holdings Ltd United Arab Emirates Group Holding Company Dubai International Financial Centre IGI Underwriting Co Ltd International General Insurance Co Ltd(1) North Star Underwriting Limited Jordan Bermuda UK Underwriting agency for the IGI

  38. Slide 38: Peer Trading Comparables

    Peer Trading Comparables Price Market Cap. ROE Price / Book Price / EPS Regular Ticker 11/29/19 ($MM) 2019E 2020E Reported Tangible 2019E 2020E Div. Yield IGI Pro Forma IGI $10.45 $545 9.6% 8.2% 1.26x 1.27x 11.5x 13.2x 2.7% Arch Capital Group Ltd. ACGL $41.97 $16,943 11.5% 10.7% 1.64x 1.74x 15.3x 14

  39. Slide 39: 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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