20-F: International General Insurance Holdings Reports Annual Results for 2024

International General Insurance Holdings Ltd. files its annual report on Form 20-F, detailing its financial performance for the fiscal year ended December 31, 2024.

Summary

• International General Insurance Holdings Ltd. has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024.
• The report includes audited consolidated financial statements and related information.
• As of December 31, 2024, the company had 45,108,936 outstanding common shares.
• The company operates under U.S. GAAP accounting principles.
• The report discusses forward-looking statements and associated risks.
• The company's operations are subject to extensive laws and regulations in various jurisdictions.
• The company's top 5 international brokers produced 64% of the gross written premiums of its underwriting operations for the year ended December 31, 2024.
• The company ceded 30% of its gross written premium to third-party reinsurers for the year ended December 31, 2024.
• The company's investment in fixed maturity securities was approximately $1,004.1 million, or 78% of its total investment and cash portfolio, as of December 31, 2024.
• The company's investment portfolio consisted of corporate securities (97.5%) and government securities (2.5%) as of December 31, 2024.
• The company holds a stable outlook rating of A (Excellent) from A.M. Best and a stable outlook rating of Afrom S&P.
• The company's gross written premium was $700.1 million for the year ended December 31, 2024.
• The company's gross written premium was $688.7 million for the year ended December 31, 2023.
• The company's gross written premium was $582.0 million for the year ended December 31, 2022.
• The company's net income was $135.2 million for the year ended December 31, 2024.
• The company's net income was $118.2 million for the year ended December 31, 2023.
• The company's net income was $89.2 million for the year ended December 31, 2022.
• The company's basic earnings per share attributable to equity holders was $3.01 for the year ended December 31, 2024.
• The company's basic earnings per share attributable to equity holders was $2.58 for the year ended December 31, 2023.
• The company's basic earnings per share attributable to equity holders was $1.85 for the year ended December 31, 2022.
• The company's diluted earnings per share attributable to equity holders was $2.98 for the year ended December 31, 2024.
• The company's diluted earnings per share attributable to equity holders was $2.55 for the year ended December 31, 2023.
• The company's diluted earnings per share attributable to equity holders was $1.84 for the year ended December 31, 2022.
• The company's board of directors determined that going forward the board intended to declare a $0.01 per share dividend on a quarterly basis (increased to $0.025 per share in May 2024).

Sentiment

Score: 7

Explanation: The document presents a generally positive outlook with growth in key financial metrics, but also acknowledges certain risks and challenges.

Positives

• The company experienced an increase in gross written premiums, reaching $700.1 million in 2024.
• Net income increased to $135.2 million in 2024.
• Basic earnings per share attributable to equity holders increased to $3.01 in 2024.
• The company maintains a strong financial position with a significant investment portfolio.
• The company holds a stable outlook rating of A (Excellent) from A.M. Best and a stable outlook rating of Afrom S&P.

Negatives

• The company experienced a net foreign exchange loss of $8.1 million for the year ended December 31, 2024.
• Net loss and loss adjustment expenses increased 14.3% from $189.1 million in 2023 to $216.1 million in 2024.

Risks

• The company's operations are subject to extensive laws and regulations, and failure to comply could have a material adverse effect.
• The insurance and reinsurance industries are highly competitive, which may result in fewer policies underwritten and lower premium rates.
• Claims arising from catastrophe events are unpredictable and could be severe.
• The company may not be able to raise capital in the long term on favorable terms or at all.
• Information technology systems that the company uses could fail or suffer a security breach, which could have a material adverse effect.

Future Outlook

The company aims to continue creating superior long-term value for its shareholders by expanding its presence in existing markets, expanding its presence to new specialty lines of business and markets, maintaining balance sheet strength and thorough reserves assessment, maintaining its conservative investment strategy, and continuing to purchase conservative reinsurance coverage, while optimizing for risk-adjusted returns.

Industry Context

The insurance and reinsurance industries are mature and highly competitive, with companies competing on various factors including premium charges, reputation, terms and conditions, ratings, and quality of service. The industry is also facing increasing competition from capital market participants and new entrants, which may impact pricing and profitability.

Comparison to Industry Standards

• The document does not contain enough information to make a detailed comparison to industry standards.
• However, the document does mention that the company competes with major U.S., UK, Bermudian, European and other domestic and international insurers and reinsurers and underwriting syndicates from Lloyds.
• The document also mentions that the company competes with capital market participants that create alternative products, such as catastrophe bonds, that are intended to compete with traditional reinsurance products.

Related Party Transactions

• In 2024, the Group rented a boat for business promotion from a company owned by a major shareholder.
• The total expense charged to the general and administrative expenses was $242 thousand (2023: $206 thousand).

Stakeholder Impact

• The company's financial performance and strategic initiatives are expected to create long-term value for shareholders.
• The company's commitment to prudent risk management and regulatory compliance is expected to protect policyholders.
• The company's focus on client service and broker relationships is expected to benefit customers and distribution partners.
• The company's investment in technology and operational efficiency is expected to improve the overall business.

Next Steps

• The company will continue to execute its strategy of expanding in existing markets and new lines of business.
• The company will continue to monitor its capital adequacy and manage its investment portfolio.
• The company will continue to purchase conservative reinsurance coverage.

Key Dates

Keywords

insurance, reinsurance, financial results, annual report, gross written premium, net income, earnings per share, risk management, capital, regulations