SouthWest IDEAS Conference
Corporate Overview
expertise providing coverage across a diversified portfolio of
specialty lines
Key Market Data(1)
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Nasdaq |
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Symbol |
IGIC |
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Market Cap/Price |
$862mm / |
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Sh. Equity/BVPS |
$652mm / |
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Employees |
460 |
Our Purpose:
To provide peace of mind in times of
uncertainty.
This is core to our values, our business, and our corporate character. We have a long track record of supporting our people and our communities.
AA-
Commitment to long-term total value creation through growth in tangible
book value per share plus dividends
(1) Data as
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3 |
IGI Timeline
2001
$25mm capital raise
2007$75mm Established capital raise
2009
Commenced underwriting
2012-
2013
Commenced underwriting Ports & Terminals,
2015
veteran
2002
Commenced operations from
2005
Assigned BBB rating by S&P
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Commenced |
2006 |
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underwriting |
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Reinsurance |
Established |
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business |
Labuan Branch |
Commenced underwriting Financial Lines business
Purchased majority shareholding of SR Bishop
2008
Assigned A- rating by
Established IGI Dubai
business and
Professional Indemnity business
Acquired SR
Bishop and renamed to
2010
Established
IGI
and Political Violence business
IGI Dubai commences operations as an agency
S&P raises
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Increased quarterly |
CEO succession: |
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common share |
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dividend to |
named CEO; |
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increased share |
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repurchase |
named Executive |
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authorization to 7.5 |
Chairman |
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million common |
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shares |
Completed |
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acquisition of |
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Declared special |
Norway MGA |
Announced new dividend policy of
Commenced underwriting Contingency business
Established IGI Europe in
Redomiciled to
Listed
Ticker: "IGIC"
AM Best upgrades
2019
Commenced underwriting
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common share |
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market |
dividend of |
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cap(3) |
per share |
Completed |
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capital base(2) |
redemption and |
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delisting of |
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2024 |
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Warrants |
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2023 |
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(1) |
- At
9/30/2024 - As of
11/11/2024
repurchase authorization of 5 million common shares
2022
2021
Commenced underwriting Marine Trades and Marine
Cargo business $41mm
|
2020 |
capital raise |
2016-2018
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4 |
Corporate Profile
- "Underwriting first" individual risk underwriting strategy focused on profitable growth, diversification, and lower volatility
- Main underwriting hubs in
Bermuda ,UK (London ),Europe ,Middle East /North Africa ,Asia Pacific covering a mix of high-growth, under-represented markets - Underwriting portfoliowell-diversified by line of business, product, and territory serviced by 109 underwriters(1) across 8 offices
- Performance-basedculture with well-respected and recognized leadership and proven expertise in intelligent risk selection across a diverse range of specialty lines
- Uniquely positioned to capitalize on market opportunities throughdynamic portfolio management across market cycles
- Balance sheet strength and stabilityfocused on capital preservation underpinned by a prudent reserving philosophy and conservative investment strategy
- Strongshareholder alignment through significant insider ownership (Jabsheh family ownership: 34.7% (1))
(1) Data as of
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5 |
Global Presence, Local Knowledge
- Distribution relationships and presence in key territories with high degree of local knowledge, cultural compatibility, and trusted relationships
Nordic underwriting hub
Underwriting headquarters
Operational headquarters
Group holding company domicile
Underwriting parent company
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6 |
Strategy to Maximize Total Value Creation over the Long-term
Consistent execution of underwriting strategy
- Individual risk underwriting facilitates tighter risk control
- Global footprint, local knowledge, long relationships
- Deep technical expertise, specialized experience
- Dynamic cycle management, focused on lines with strong margins and rate momentum
- Lower volatility, prudent use of reinsurance, managed catastrophe exposure
Maintain strong balance sheet through prudent use of capital
- Maintain optimal level of capital for "underwriting first" strategy; retuexcess capital
- Zero financial leverage
- Prudent reserving philosophy
- Conservative investment portfolio structure - high quality fixed income; duration management
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- 10-year(1) average combined ratio: 86.8%
- 10-year(1) average core operating ROE, including soft market years: 14.2%
- Superior risk adjusted return, low relative volatility
- Underwriting strategy results in average ~4 pt combined ratio advantage(2) vs. peers
- 2015-2024(annualized)
- Represents difference in average combined ratios for the period 2015-Q3 2024 between IGIC and peers. Peers include: MKL, ACGL, WRB, RE, RNR, HSX-LON, AXS, RLI, BEZ-LON, KNSL, LRE-LON, HG and
Lloyd's of London
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7 |
Earnings Stability Through Broad Diversification
- Meaningful diversification by line of business, product, geography, broker distribution, facility vs. individual risk, and short vs. long-tail risks
- ~25 lines of business written globally, supported by 8 offices
- 67% individually underwritten at 12/31/2024; 24% MGA-originated; 9% reinsurance
IGI Financial Reporting
Segments:
Short-tail 58%
Long-tail 33%
Reinsurance 9%
FY 2023
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Diversification by Line of Business |
Diversification by Geography |
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8 |
- Dynamic cycle management, shifting mix of business to those lines with the strongest rate momentum and highest margins
- Prudent growth and risk selection
- Adept at capitalizing on market dislocation
87.9% 86.9%
87.1%
84.3%
105.0%
94.1%
88.7%
89.3%
86.4%
Written Premiums $ Millions
Strong Cycle
Management
54%
53%
78.5%
55%
76.7%
80.5%
58% 59%
Gross
77% 79%
15% 15%
81% 80%
15% 15%
72%
22%
54%
64%
41%
31%
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43% |
42% |
40% |
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4% |
5% |
33% 30%
9% 11%
2013 2014
2015 2016
Reinsurance
2017 2018 2019
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Long-Tail |
Short-Tail |
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2020 2021 2022
IGI Combined Ratio
2023 TTM
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9 |
Prudent Reserving Philosophy Anchored in Conservatism and Balance Sheet Preservation
- IBNR reserves reflect growth of specialty long-tail lines (average duration 4-7 years)
- History of releasing reserves once losses are fully developed
- No
U.S. casualty exposure
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15% |
17% |
16% |
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11% |
10% |
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9% |
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5% |
3% |
2% |
5% |
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2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
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10 |
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