International General Insurance Holdings Ltd. · NASDAQ:IGIC
International General Insurance — Q1 2022 Earnings Presentation
31 slides from International General Insurance's earnings presentation, May 19, 2022
Slide 1: IGI Investor Presentation Q1 2022
IGI Investor Presentation Q1 2022 May 2022
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 24 Appendix 27
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 6-point combin
Slide 6: Key Financial Metrics
Key Financial Metrics Market Capitalization / Stock Price (NASDAQ: IGIC) $386mm / $7.86(1) Shareholders’ Equity / BVPS $390.9mm / $8.57 LTM Gross Written Premium $573.1mm Q1 2022 Core Operating ROAE 24.1% Dividends Paid 40% of annual net after-tax profit paid semi-annually Financial Strength Ratings
Slide 7: Developments Overview Q1 2022
Overview Q1 2022 Premium growth of 27.3% driven by new $128.1 million Compared to $100.6 mm in Q1’21 business and portfolio optimization achieving Gross Written Premium rate increases and improved terms and conditions Financial Performance Increase of 49.6% driven by disciplined and $41.3 million Co
Slide 8: IGI - Global Specialty (Re)Insurer Evolution over 20 years
IGI - Global Specialty (Re)Insurer Evolution over 20 years 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
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 10.7% South America Australasia 2.2% Contingency 2.7% Worldwide 1.7% Marine Cargo 6.3% Treaty Long-tail 1.6% 35.3% Africa Reinsurance Political Violence 5.9%
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 ✓ Strong alignment of interest through significant insider ownership ✓ Open market common share repurchases totaling 139,516 (for $1.09 million) in December 2021 by IGI founder, Chairman & CEO Wasef Ja
Slide 12: IGI Values Centre Around Integrity, Genuine Approach and Innovation
IGI Values Centre Around Integrity, Genuine Approach and Innovation ▪ The foundation of IGI is built on integrity, prioritizing honesty Innovative Genuine and doing what is right • Entrepreneurial • Collaborative environment approach • Employee • Global team ▪ Genuine culture that promotes responsib
Slide 13: Investment Highlights
INVESTMENT HIGHLIGHTS Section 2
Slide 14: Key Investment Highlights
Key Investment Highlights 1▪ Specialty Individual Risk Underwriter with Strategy to Protect Capital & Optimize Underwriting Profitability 2▪ Superior Underwriting Performance Even in Heavier Loss Years 3▪ Active Cycle Management Balancing Growth and Risk Selection 4▪ Track Record of Delivering Resul
Slide 15: Specialty Individual Risk Underwriter with Strategy to Protect Capital & Optimize Underwriting Profitability
Specialty Individual Risk Underwriter with Strategy to Protect Capital & Optimize 1 Underwriting Profitability Intelligent Risk Selection & Management Significantly Less Volatility from Catastrophes ($ 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: 88% 20% IGI Combined Ratio Advantage: 6% 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 Growth $573 $546 $467 Strong Cycle $349 Management $302 $275 $252 $242 $240 $232 $226 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 LTM Q1'22 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 Average: 88% 105% 94% 89% 88% 86% 87% 89% 89% 86% 84% 72% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 2022 Un-Levered Core Operating ROAE 24% Average: 11% 14% 13% 12% 12% 12% 10% 10% 9% 7% 0% 2012 2013 2014 2015
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 ▪ History of releasing reserves once losses are fully developed ▪ No U.S. casualty exposure Favourable Reserve Development $27 $24 $23 $18 $16 $9 $6 $
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 Labuan Casablanca Malta London Underwriting headquarters 1% 1% 1% Bermuda Amman Dubai Group holding company domicile 2% Operational headquarters Amman 174 Underwriting parent company London 39
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 PGR IFC-CA 1st UVE AMSF KNSL Quintile 10 Year Return o
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% 31.0% 30.2% 29.2% 29.5% 27.6% 24.9% 23.1% 23.3% 20.4% 19.3% 18.2% 18.4% 17.7% 14.8% 10.0% 9.6% 8.3% 9.0% 7.2% 7.8% 7.8% 7.5% 7.3% 2.4% Mar Jun Sep De
Slide 23: Well-positioned for Future Shareholder Value Creation Opportunities
9 Well-positioned for Future Shareholder Value Creation Opportunities Continued build out of IGI presence / business in Europe and U.S. ▪ US: $11.7mm of gross premium written in Q1 2022; all short-tail business, primarily energy and property, as well as contingency ▪ Europe: $15.7mm of gross written
Slide 24: Financial Performance
FINANCIAL PERFORMANCE Section 3
Slide 25: Selected Financial Data
Selected Financial Data Year ended December 31, Quarter ended March 31, ($ in mm) 2017 2018 2019 2020 2021 2021 2022 Operating Results: Gross Written Premiums $275.1 $301.6 $349.2 $467.3 $545.6 $100.6 $128.1 Net Underwriting Results 23.6 56.1 52.0 77.4 105.8 27.6 41.3 Core Operating Earnings $0.3 $2
Slide 26: Defensively Positioned, Conservative Investment Portfolio
Defensively Positioned, Conservative Investment Portfolio Total Investment Income, Net ($mm) Total Investments and Cash Breakdown Real Estate Cash & Cash Equity shares 2.4% Equivalent 5.4% 19.4% Money at Fixed income Short term securities deposits 51.7% 21.1% $4.0 $3.9 March 31, 2022 Total Investmen
Slide 27: Appendix
Appendix INTERNATIONAL GENERAL INSURANCE HOLDINGS LIMITED International General Insurance Holdings Ltd.
Slide 28: IFRS Summary Income Statement
IFRS Summary Income Statement Year Ended December 31, Quarter ended March 31, ($ in mm) 2017 2018 2019 2020 2021 2021 2022 Gross Written Premiums $275.1 $301.6 $349.2 $467.3 $545.6 $100.6 $128.1 Reinsurance Share of Insurance Premiums (114.3) (98.2) (97.1) (128.9) (163.0) (23.5) (37.3) Net Written P
Slide 29: IFRS Reconciliation – Core Operating Earnings
IFRS Reconciliation – Core Operating Earnings Year Ended December 31, Quarter ended March 31, ($ in mm) 2017 2018 2019 2020 2021 2021 2022 Profit For the Period $7.0 $25.5 $23.6 $27.2 $43.7 $10.2 $19.4 Realized Losses / (Gains) on Investments (3.1) (1.3) (1.0) (0.9) (0.3) 0.1 - Net Impairment Losses
Slide 30: Book Value per Common Share and Diluted Book Value per Common Share
Book Value per Common Share and Diluted Book Value per Common Share ($ and share count in mm, except per share values) As of March 31, 2022 Shares Common Book Value Potential Shares Outstanding Equity per Share Basic Book Value per Share 45.617 $390.9 $8.57 Dilutive Impact of Shares Subject to Earn
Slide 31: 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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