AM Best has affirmed the credit ratings of Bermudian-based International General Insurance Holdings Ltd and its subsidiaries.

The credit ratings agency affirmed the financial strength rating of A (Excellent) and the long-term issuer credit ratings of “a” (Excellent) of Bermuda’s International General Insurance Co Ltd, International General Insurance Company (UK) Ltd, and International General Insurance Company (Europe) Ltd of Malta.

Concurrently, AM Best has affirmed the long-term ICR of “bbb” (Good) of International General Insurance Holdings Ltd.

The outlook of these credit ratings is stable.

The ratings reflect IGI’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The ratings of IGICL, IGIUK and IGI Europe reflect their strategic importance to IGI.

IGI’s balance sheet strength assessment is underpinned by its consolidated risk-adjusted capitalisation assessed at the strongest level, as measured by Best’s capital adequacy ratio.

The group’s balance sheet strength is further supported by its strong liquidity position and conservative investment portfolio. IGI does not have any debt leverage and financial flexibility is enhanced through its listing on the Nasdaq.

AM Best said: “IGI has a track record of strong operating performance, illustrated by a five-year (2019-2023) weighted average return-on-equity ratio of 16 per cent.

“IGI’s performance has been underpinned by robust underwriting performance, demonstrated by a five-year (2019-2023) weighted average combined ratio marginally below 85 per cent, which has continued into 2024 to-date (H1 2024 combined ratio of 77.7 per cent).

“Over this period, results have been supported by releases of prior year reserves. Prospectively, the group is expected to maintain its strong profitability, supported by its selective underwriting approach and good rate adequacy in its key segments.”

The ratings agency said IGI maintains a well-diversified portfolio by line of business and geography.

The group has been expanding its business volumes in recent periods, evidenced by strong growth over the last five years (2019-2023).

AM Best said it expects IGI to achieve further growth over the medium term while maintaining its strong underwriting discipline.