Financial Data and Key Metrics Changes - The company reported a growth in book value per share of almost 20% and over 24% when including dividends [7] - For the full year, net income was slightly above $135 million, up almost 15% from the prior year, marking a record result [25] - Core operating income reached a record $40.9 million in Q4 and $144.8 million for the full year [25][28] - The combined ratio was 77.8% for Q4 and 79.9% for the full year, indicating strong performance [13][20] Business Line Data and Key Metrics Changes - Gross earned premiums increased by just under 6% in Q4, driven mainly by growth in the Short Tail and Reinsurance segments [19] - The Short Tail segment saw gross premiums up marginally in Q4 and just shy of 3% for the full year, while underwriting income was down in Q4 but up almost 5% for the full year [22] - The Reinsurance segment performed well, with gross premiums up more than 36% for the full year [23] - The Long Tail segment faced challenges, with a contraction of about 1.5 points in Q4 and almost 10 points for the full year [24] Market Data and Key Metrics Changes - The company noted increased competition and pressure on rates in many markets, impacting top line growth [14] - The U.S. market has been identified as a significant growth area, with gross premiums of over $120 million written in 2024 [39] - Europe remains a growth area, with approximately $90 million in gross premiums written across all segments [40] Company Strategy and Development Direction - The company aims to maintain a disciplined approach to growth, focusing on bottom line profitability and risk management [50] - There is a commitment to finding new business opportunities while adhering to risk tolerances [29] - The company has expanded its presence in key markets, including the U.S., Europe, and Asia Pacific, enhancing marketing activities and collaboration [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging operating environment, citing a strong balance sheet and disciplined underwriting [42] - The outlook for 2025 includes expectations of manageable losses from recent events, with a focus on identifying profitable opportunities [38] - Management acknowledged the competitive pressures in the market but emphasized the importance of maintaining underwriting discipline [30] Other Important Information - Total assets increased almost 11% to over $2 billion, with investments and cash portfolio growing by more than 14% [25] - The company repurchased over 220,000 common shares in Q4, totaling nearly 1.5 million shares for the year [27] Q&A Session Summary Question: Thoughts on competitive environment and growth opportunities - Management acknowledged the competitive environment but emphasized their ambition to grow while maintaining risk discipline [49][50] Question: Impact of California wildfire losses on growth appetite - Management stated it is too early to determine the long-term impact of wildfire losses on pricing and growth in California [54][55] Question: Core loss ratio performance compared to peers - Management attributed their lower core loss ratio to disciplined underwriting and a focus on bottom line profitability [62][63] Question: Pricing environment in various markets - Management noted that while competition is increasing, there are still areas of rate adequacy, particularly in construction and engineering [77]

Financial Performance - Gross written premiums rose to USD 387,197 thousand for the six months ended June 30, 2024, compared to USD 373,534 thousand for the same period in 2023, an increase of 3.5%[3] - Net premiums earned increased to USD 236,389 thousand in June 2024, up from USD 223,427 thousand in June 2023, reflecting a growth of 5.4%[3] - Investment income grew significantly to USD 24,934 thousand in June 2024, compared to USD 18,433 thousand in June 2023, marking an increase of 35.5%[3] - Net income for the six months ended June 30, 2024, was USD 70,661 thousand, a decrease from USD 74,363 thousand in the same period of 2023, representing a decline of 5.7%[4] - Total comprehensive income for the six months ended June 30, 2024, was USD 67,398 thousand, down from USD 79,177 thousand in the same period of 2023, a decrease of 15.0%[4] - The company reported a basic earnings per share of USD 1.56 for the six months ended June 30, 2024, compared to USD 1.60 for the same period in 2023[3] - Net income available to common shareholders for the six months ended June 30, 2024, is USD 69,071 thousand[39] Assets and Liabilities - Total assets increased to USD 1,958,350 thousand as of June 30, 2024, up from USD 1,837,900 thousand at December 31, 2023, representing a growth of 6.6%[2] - Total liabilities increased to USD 1,370,141 thousand as of June 30, 2024, compared to USD 1,297,470 thousand at December 31, 2023, an increase of 5.6%[2] - The company’s total investments reached USD 1,047,237 thousand as of June 30, 2024, compared to USD 955,668 thousand at December 31, 2023, an increase of 9.6%[2] - Retained earnings rose to USD 469,342 thousand as of June 30, 2024, up from USD 423,049 thousand at December 31, 2023, reflecting an increase of 10.9%[2] Cash Flow and Investments - Net cash provided by operating activities increased to USD 120,732,000 for the six months ended June 30, 2024, compared to USD 87,816,000 for the same period in 2023, representing an increase of 37.4%[8] - The net cash used in investing activities was USD 93,177,000 for the six months ended June 30, 2024, compared to USD 15,274,000 for the same period in 2023, indicating a significant increase in investment outflows[8] - Cash, cash equivalents, and restricted cash at the end of the period were USD 185,607,000, a slight decrease from USD 188,393,000 at the end of June 30, 2023[8] Shareholder Returns - Dividends paid increased to USD 24,368,000 in the first half of 2024, compared to USD 864,000 in the same period of 2023, showing a substantial rise in shareholder returns[8] - The company repurchased 927,033 shares at a cost of USD 12,603 thousand during the six months ended June 30, 2024[35] - The balance of treasury shares as of June 30, 2024, is 284,044 shares, valued at USD 3,979 thousand[35] Reserves and Expenses - The reserve for unpaid loss and loss adjustment expenses rose to USD 712,098,000 as of June 30, 2024, up from USD 636,245,000 at the end of 2023, indicating an increase of 11.9%[17] - Total loss and loss adjustment expenses incurred, net of reinsurance, were USD 99,238,000 for the six months ended June 30, 2024, compared to USD 189,087,000 for the same period in 2023, reflecting a decrease of 47.5%[19] - The net reserve for unpaid loss and loss adjustment expenses at the end of the period was USD 541,225,000, an increase from USD 499,849,000 at the beginning of the period[17] Fair Value Measurements - Total fair value of assets measured at fair value as of June 30, 2024, is USD 896,764 thousand, with corporate bonds contributing USD 825,013 thousand[29] - Corporate bonds available-for-sale amounting to USD 165,250 thousand were transferred from level 2 to level 1 as of June 30, 2024[29] - The fair value of Earnout Shares at the end of the period decreased to USD 5,430,000 as of June 30, 2024, down from USD 17,290,000 at the end of 2023, reflecting a decline of 68.6%[26] Other Information - The company experienced a net foreign exchange difference of USD 2,969,000 in cash and cash equivalents at the beginning of the period, which was not present in the current period[8] - The company reported a change in term deposits of USD 26,390,000 for the six months ended June 30, 2024, compared to a decrease of USD 4,554,000 in the same period of 2023[8] - There have been no material events between June 30, 2024, and the date of this report that require disclosure[40]

Financial Data and Key Metrics Changes - The company reported an annualized return on average equity of 22.9% for Q2 and 25.1% for the first half of 2024, with average equity increasing by almost 30% year-over-year [5] - Book value per share grew by 7.3% to $13.31 at the end of June 2024, following a growth of over 36% in 2023 [5][14] - Net income for Q2 was $32.8 million and $70.7 million for the first half, slightly down from the prior year due to increased loss activity [13] - Core operating income increased by 8.6% from the first half of last year, reaching just over $73 million [13] Business Line Data and Key Metrics Changes - Gross written premium growth was 3% in Q2 and 3.7% for the first half, driven by short-tail and reinsurance segments [9] - The reinsurance segment saw gross premiums up 57.7% in Q2 and 28.4% for the first half, with net premiums earned increasing by almost 35% [10] - The long-tail segment experienced contraction in gross premium volume, with rates and conditions leading to a cautious approach in underwriting [10][12] Market Data and Key Metrics Changes - The U.S. market saw gross premiums increase by over 47% in the first half of 2024 compared to the same period last year [23] - In Europe, the company rolled around $17 million in Q2 and just under $40 million in the first six months, with expectations for further growth [24] - The MENA region and Asia continue to present opportunities, with talent being added on the ground across various lines of business [24] Company Strategy and Development Direction - The company focuses on generating consistent and sustainable value through disciplined underwriting and capital allocation [7][19] - There is an emphasis on enhancing distribution capabilities and targeting new business opportunities, particularly in engineering and construction [16][21] - The company maintains a cautious approach to underwriting in the long-tail segment, prioritizing profitability over volume [27][29] Management's Comments on Operating Environment and Future Outlook - Management noted that while market conditions remain generally healthy, competitive pressures are increasing, particularly in domestic markets [15][18] - The company expects mid to possibly high single-digit growth in gross premiums for the year, down from previous expectations of high single-digits to low double-digits [9][28] - Management highlighted the importance of maintaining discipline in underwriting and focusing on profitability, especially in a competitive environment [18][19] Other Important Information - Total assets increased just under 7% to $1.96 billion, and total equity rose just under 9% to $588.2 million at the end of June [14] - The company increased its common share repurchase authorization by 7.5 million shares and repurchased approximately 650,000 shares in Q2 [14] Q&A Session Summary Question: Growth outlook and long-tail challenges - Management indicated that growth is expected primarily from reinsurance and short-tail segments, with long-tail segments facing pressure, particularly in D&O and financial institutions [26][27] Question: U.S. business growth and property market - The company noted that growth in the U.S. is driven by new lines such as engineering and construction, despite competitive pressures in the property market [30][31] Question: Favorable reserve development - Management explained that favorable reserve development is due to a cautious reserving approach, with releases occurring across both short-tail and long-tail segments [33][35] Question: Offshore energy losses - Management clarified that the offshore energy losses were due to increased frequency of losses in that business line, primarily on the offshore construction side [36]

Financial Data and Key Metrics - The company posted a combined ratio in the 70s, with a return on average equity of 27.6% and a core operating return on average equity of 29.2% [11] - Book value per share grew by 1.5% in Q1 2024, following a 26% growth in 2023 [11] - Net income for Q1 2024 was just under $38 million, up from $34 million in Q1 2023, driven by higher underwriting income and a $3 million increase in net investment income [31] - Core operating income increased by more than 35% to $40 million in Q1 2024 compared to $29 million in Q1 2023 [32] - Total assets increased by 2% to $1.88 billion, and total equity grew by 3% to $567 million at the end of Q1 2024 [33] Business Line Performance - Gross written premium growth in Q1 2024 was 4.5%, with significant growth in the reinsurance segment, which grew by 21% compared to Q1 2022 [22] - The short-tail segment saw a 2.8% increase in gross premiums, driven by opportunities in engineering, contingency, property, and marine cargo [23] - The long-tail segment experienced a contraction in gross premiums due to rate and condition challenges, with the company choosing not to renew some business [24] - The treaty reinsurance business saw net price improvements of more than 70% in Q1 2024, following a 25% increase in 2023 [48] Market Performance - The US market remains a key growth area, with rates outpacing other markets in property, energy, and contingency lines [43] - In Europe, the company wrote over $22 million in Q1 2024, up from $19 million in Q1 2023, with growth opportunities in Nordic markets [44] - The company has established a presence at Lloyd's of London, offering lines such as property, energy, contingency, and marine cargo [50] Strategic Direction and Industry Competition - The company is focusing on managing cycles, maintaining underwriting discipline, and shifting capital to areas with strong rate momentum and high margins [13][14] - The company is expanding its geographic footprint, adding talent, and diversifying its reinsurance portfolio [19] - The company is cautious about competition in the short-tail segment, particularly in aviation and upstream energy, while reinsurance remains the most attractive area [58][59] Management Commentary on Market Conditions and Outlook - The company expects growth for 2024 to be in the high single-digits to low double-digits, with opportunities in engineering, property, and marine cargo [27][37] - The company is optimistic about 2024, despite competitive pressures and mixed market conditions [20][37] - The company is focusing on technical underwriting and cycle management to navigate the current market environment [39] Other Important Information - The company has repurchased shares under its existing authorization, with around 1 million shares remaining [34] - A special dividend of $0.50 per share was announced alongside the regular quarterly dividend of $0.01 per share in Q1 2024 [35] - The company has a core operating ROE of just under 30% for Q1 2024, compared to 27.9% in Q1 2023 [36] Q&A Session Summary Question: Reserve Releases in Q1 2024 - The strong reserve release in Q1 2024 reflects the company's cautious approach to reserving and the benign loss environment in 2023 [53] Question: Competitive Landscape in Short-Tail and Reinsurance Segments - The short-tail segment is mixed, with the US being the strongest market, while aviation is under pressure [58] - The reinsurance segment remains the most attractive, with significant growth opportunities, although competition is increasing [59][60] Question: Investment Yield and Cash Deployment - The company deployed cash into fixed income investments, maintaining an average rating of A and an average duration of 3.1 years [64]

Forward Looking Statements | --- | --- | |---------------------------------------------------------------------------------------|---------------------------------------------------------------------------| | | | | IGI is an international specialist technical expertise providing specialty lines | (re)insurance group with deep coverage across a diversified portfolio of | International General Insurance Holdings Ltd. 3 International General Insurance Holdings Ltd. 4 Global Presence, Local Knowledge 6 (1) Repr ...

Financial Performance - Net loss and loss adjustment expenses decreased by 8.9% from $173.0 million in 2021 to $157.6 million in 2022, primarily due to favorable development on loss reserves and currency devaluation impacts [654]. - The loss ratio improved by 9.5 percentage points from 51.4% in 2021 to 41.9% in 2022, driven by favorable development on loss reserves from prior accident years [654]. - Core operating income for 2023 was $133.8 million, up from $93.9 million in 2022, reflecting strong underlying profitability [702]. - Return on average equity increased to 24.8% in 2023 from 22.5% in 2022, indicating improved efficiency in generating returns for shareholders [702]. Premiums and Revenue - Gross written premiums in the specialty long-tail segment decreased by 2.7% from $233.1 million in 2022 to $226.9 million in 2023, attributed to negative rate movement and cautious market conditions [661]. - Net premiums earned in the specialty long-tail segment decreased by 5.7% from $167.4 million in 2022 to $157.8 million in 2023 [668]. - Gross written premiums in the specialty short-tail segment increased by 26.2% from $317.4 million in 2022 to $400.7 million in 2023, driven by a 9.0% increase in average renewal premium rates [674]. - Net premiums earned in the specialty short-tail segment increased by 32.2% from $178.7 million in 2022 to $236.2 million in 2023 [678]. - Gross written premiums in the reinsurance segment increased by 94.0% from $31.5 million in 2022 to $61.1 million in 2023, supported by a 25.4% increase in average renewal premium rates [686]. - Net premiums earned rose by 75.6% from $30.3 million in 2022 to $53.2 million in 2023 [690]. Expenses - Net policy acquisition expenses increased by 17.8% from $59.6 million in 2021 to $70.2 million in 2022, with the net policy acquisition expense ratio rising from 17.7% to 18.7% [657]. - General and administrative expenses rose by 15.5% from $58.2 million in 2021 to $67.2 million in 2022, mainly due to increased employee-related costs and technology investments [658]. - Net policy acquisition expenses increased by 39.3% from $5.6 million in 2022 to $7.8 million in 2023, with the expense ratio decreasing to 14.7% [695]. Losses and Reserves - Net loss and loss adjustment expenses in the specialty long-tail segment increased by 37.0% from $50.5 million in 2022 to $69.2 million in 2023, due to higher current accident year losses [669]. - The short-tail segment loss ratio decreased by 11.0 percentage points to 39.4% in 2023 compared to 50.4% in 2022, primarily due to higher net premiums earned [682]. - Net loss and loss adjustment expenses increased by 56.7% from $17.1 million in 2022 to $26.8 million in 2023, primarily due to a $14.0 million increase in current year accident year losses [692]. - The loss ratio improved to 50.4% in 2023 from 56.4% in 2022, driven by higher net premiums earned [694]. - The total loss and loss adjustment expenses incurred, net of reinsurance, for the current accident year 2023 amounted to $228.4 million, compared to $199.5 million in 2022, representing a 14.4% increase [794]. - The net reserve for unpaid loss and loss adjustment expenses increased to $499.9 million from $447.4 million in 2022, reflecting a growth of 11.2% [794]. - The reserve for unpaid loss and loss adjustment expenses at the end of the period was $712.1 million, up from $636.2 million in 2022, indicating a rise of 11.5% [794]. Cash Flows - Net cash flows from operating activities increased by $41.7 million to $196.6 million in 2023, primarily due to business growth [716]. - Net cash flows used in investing activities decreased significantly from $246.6 million in 2022 to $90.4 million in 2023, reflecting a positive movement in term deposits and short-term investments [718]. - Net cash flows used in financing activities increased from a net cash outflow of $12.5 million in 2022 to a net cash outflow of $49.1 million in 2023, primarily due to share repurchases totaling $31.1 million and warrant redemptions of $16.3 million [720]. Capital and Solvency - The company targets a solvency ratio of more than 120% to ensure capital strength and support a stable dividend policy [714]. - IGI Bermuda's statutory capital and surplus was $548.7 million in 2023, exceeding the Target Capital Level (TCL) of $312.0 million by 76% [731]. - The Minimum Margin of Solvency (MSM) required for IGI Bermuda was $65.0 million in 2023, compared to $57.8 million in 2022 and $58.3 million in 2021, indicating an increase of 21% from the previous year [728]. - The Enhanced Capital Requirement (ECR) for IGI Bermuda was $260.0 million in 2023, up from $230.8 million in 2022, representing an increase of 12.6% [729]. Investment Performance - The fair value of investments as of December 31, 2023, was $1,132.7 million, an increase from $958.8 million in 2022, reflecting a growth of 18.2% [751]. - Investment income for 2023 was $40.5 million, significantly higher than $20.9 million in 2022, marking an increase of 93.3% [751]. - The investment yield improved to 3.9% in 2023, compared to 2.4% in 2022 and 1.8% in 2021, indicating a positive trend in investment performance [751]. Risk Management - The primary market risk affecting the company includes interest rate risk associated with investments in fixed-maturity securities [1062]. - The company does not have significant exposure to commodity risk, focusing instead on credit, interest rate, and foreign currency risks [1060]. - Management reviews its provisions for claims incurred on a quarterly basis, indicating a proactive approach to reserve management [816].

Financial Data and Key Metrics Changes - The company reported a record net income of $118.2 million for the full year 2023, up from $89.2 million in 2022, reflecting a significant increase of 32.5% [12] - Core operating return on average equity (ROE) reached 28.1% for the full year, the highest in the company's history [7][14] - Total assets increased by more than 16% to $1.84 billion, while total equity rose by over 31% to $540 million [27] Business Line Data and Key Metrics Changes - Gross written premium (GWP) growth for the full year was just over 18%, with a notable 6.5% growth in the fourth quarter [10] - The short tail segment saw a growth of over 38% in GWP for Q4 and over 26% for the full year compared to 2022 [54] - The reinsurance treaty business recorded cumulative net rate increases exceeding 25% in 2023, with this segment now representing 9% of the overall premium portfolio, nearly double from the previous year [55][19] Market Data and Key Metrics Changes - In the U.S., GWP was just over $94 million in 2023, representing a growth of about 45% compared to 2022, with rate increases of almost 20% in short tail lines [22] - The European market also showed growth, with GWP increasing from about $62 million in 2022 to over $80 million in 2023 [1] - The Middle East market conditions are mixed, with competitive pressures increasing in certain lines, but opportunities remain in engineering and construction across the GCC countries [36] Company Strategy and Development Direction - The company aims to maintain a strong, diversified, and profitable portfolio while managing cyclicality and volatility, focusing on lines and markets with the strongest margins [2] - There is a commitment to return excess capital to shareholders through dividends and share repurchases, reflecting a focus on maximizing shareholder value [27][23] - The company is optimistic about future growth opportunities, particularly in the U.S. and Europe, where the books are relatively young [41] Management's Comments on Operating Environment and Future Outlook - Management noted that while competition is increasing, particularly in the short tail segments, there are still profitable opportunities available [5][15] - The long tail segment is facing challenges with downward trending rates, but overall rates remain adequate across the portfolio [20] - Management expressed confidence in the company's ability to navigate changing market conditions and continue delivering value to shareholders [37] Other Important Information - The company repurchased 3.4 million shares for $31.1 million and declared a special cash dividend of $0.50 per share in addition to a regular quarterly dividend of $0.01 per share [7][13] - The company recorded a core operating income that more than doubled in Q4 and increased by 42.5% for the full year compared to the previous year [12] Q&A Session Summary Question: Growth trends in U.S., ENS, and Europe for short tail - Management indicated that while growth trends are promising, they expect less rate increase in 2024 compared to previous years due to increased competition [5] Question: Accident year loss ratio improvement - Management noted that the improvement was largely due to a benign loss year and a shift in focus towards areas with higher margins, particularly in reinsurance [29] Question: Factors leading to the special dividend - Management explained that the decision for a special dividend was based on exceeding expectations in returns and recognizing shareholder support, while maintaining adequate capital for growth [30][32]

[Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Balance Sheets](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheets) Total assets reached **$1.73 billion** by June 30, 2023, up from **$1.58 billion**, with equity rising to **$466.8 million** Consolidated Balance Sheet Summary (USD '000) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Investments** | 861,980 | 836,655 | | **Cash and cash equivalents** | 170,392 | 122,143 | | **Premiums receivable, net** | 281,859 | 216,014 | | **TOTAL ASSETS** | **1,733,390** | **1,580,414** | | **Reserve for unpaid loss** | 684,978 | 636,245 | | **Unearned premiums** | 445,606 | 390,250 | | **TOTAL LIABILITIES** | **1,266,559** | **1,169,475** | | **TOTAL SHAREHOLDERS' EQUITY** | **466,831** | **410,939** | [Interim Condensed Consolidated Statements of Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Income) Net income surged **68.2%** to **$74.4 million** in H1 2023, driven by higher premiums and investment income Consolidated Income Statement Summary (USD '000) | Account | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | | **Gross written premiums** | 373,534 | 307,111 | | **Net premiums earned** | 223,427 | 183,316 | | **Total revenues** | 247,849 | 190,455 | | **Net loss and loss adjustment expenses** | (93,757) | (66,955) | | **Total expenses** | (168,700) | (145,580) | | **Net income** | **74,363** | **44,211** | | **Diluted earnings per share (USD)** | **1.59** | **0.92** | [Interim Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income reached **$79.2 million** in H1 2023, a significant turnaround from **$2.3 million** in the prior year Consolidated Comprehensive Income Summary (USD '000) | Account | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | | **Net income** | 74,363 | 44,211 | | **Change in unrealized gains or losses in investments, net of tax** | 4,797 | (41,854) | | **Comprehensive income** | **79,177** | **2,310** | [Interim Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to **$87.8 million** in H1 2023, resulting in a net cash increase of **$47.5 million** Consolidated Cash Flow Summary (USD '000) | Activity | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | 87,816 | 60,909 | | **Net cash used in investing activities** | (15,274) | (75,311) | | **Net cash used in financing activities** | (25,061) | (10,479) | | **NET CHANGE IN CASH** | **47,481** | **(24,881)** | [Interim Condensed Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity increased to **$466.8 million** by June 30, 2023, driven by net income and comprehensive income Reconciliation of Shareholders' Equity (USD '000) | Account | Amount | | :--- | :--- | | **Balance at December 31, 2022** | **410,939** | | Net Income | 74,363 | | Other comprehensive income | 4,814 | | Purchase of treasury shares | (23,813) | | Dividends paid | (879) | | Other | 1,407 | | **Balance at June 30, 2023** | **466,831** | [Notes to the Interim Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) [Note 1: Description of Business](index=7&type=section&id=1.%20DESCRIPTION%20OF%20BUSINESS) The company is a Bermuda-based holding company focused on insurance and reinsurance, expanding into Nordic markets - The company is a holding company for insurance and reinsurance businesses, incorporated in Bermuda[10](index=10&type=chunk) - On March 25, 2023, the Group acquired Energy Insurance Oslo AS to broaden its presence in the Nordic markets[12](index=12&type=chunk) [Note 2: Summary of Significant Accounting Policies](index=7&type=section&id=2.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Effective January 1, 2023, the company transitioned from IFRS to U.S. GAAP, reclassifying earn-out shares as liabilities - The company transitioned from IFRS to U.S. GAAP effective January 1, 2023[13](index=13&type=chunk) - The change to U.S. GAAP resulted in a decrease in Shareholder's equity at December 31, 2022, from **$429.8 million** (IFRS) to **$410.9 million** (U.S. GAAP), primarily due to the reclassification of earnout shares from equity to a liability[20](index=20&type=chunk) [Note 4: Reserves for Unpaid Loss and Loss Adjustment Expenses](index=10&type=section&id=4.%20RESERVES%20FOR%20UNPAID%20LOSS%20AND%20LOSS%20ADJUSTMENT%20EXPENSES) Net reserve for unpaid losses was **$482.3 million** in H1 2023, with a **$27.5 million** favorable development - During the six months ended June 30, 2023, the company recorded a net favorable development of **$27.5 million** on prior accident years' loss reserves[25](index=25&type=chunk) - The favorable development was driven by decreases of **$19.6 million** in the short-tail business, **$4.6 million** in the long-tail business, and **$3.3 million** in the reinsurance book[25](index=25&type=chunk) [Note 5: Derivative Financial Liabilities](index=11&type=section&id=5.%20DERIVATIVE%20FINANCIAL%20LIABILITIES) Derivative financial liabilities totaled **$27.2 million** at June 30, 2023, comprising warrants and earn-out shares - The company has **17,250,000** warrants outstanding, accounted for as a derivative liability with a fair value of **$10.5 million** as of June 30, 2023[28](index=28&type=chunk)[30](index=30&type=chunk) - Earn-out shares, a derivative liability under U.S. GAAP, increased in fair value from **$13.8 million** to **$16.6 million**, with a **$2.8 million** change recognized in income[36](index=36&type=chunk)[38](index=38&type=chunk) [Note 6: Fair Value Measurements](index=13&type=section&id=6.%20FAIR%20VALUE) Total assets measured at fair value were **$649.9 million**, with liabilities at **$27.2 million**, as of June 30, 2023 Fair Value of Financial Instruments (June 30, 2023, USD '000) | Category | Level 1 | Level 2 | Level 3 | Total Fair Value | | :--- | :--- | :--- | :--- | :--- | | **Assets measured at fair value** | **262,335** | **381,531** | **5,997** | **649,863** | | Fixed maturity securities | 219,810 | 370,148 | 1,994 | 591,952 | | Equity securities | 42,525 | - | 374 | 42,899 | | **Liabilities measured at fair value** | **-** | **10,548** | **16,640** | **27,188** | | Derivative financial liabilities | - | 10,548 | 16,640 | 27,188 | [Note 7: Treasury Shares](index=15&type=section&id=7.%20TREASURY%20SHARES) The company repurchased **2.77 million** shares for **$23.8 million** in H1 2023, cancelling **2.74 million** shares Treasury Share Activity (H1 2023) | Activity | Number of shares | Value (USD '000) | | :--- | :--- | :--- | | **Balance at Dec 31, 2022** | **1,668** | **14** | | Repurchases | 2,771,775 | 23,813 | | Cancellation | (2,741,477) | (23,541) | | **Balance at June 30, 2023** | **31,966** | **286** | [Note 8: Earnings Per Share](index=15&type=section&id=8.%20EARNINGS%20PER%20SHARE) Basic EPS was **$1.60** and diluted EPS was **$1.59** for H1 2023, calculated using the two-class method Earnings Per Share Calculation | Metric | For the six months ended June 30, 2023 | For the six months ended June 30, 2022 | | :--- | :--- | :--- | | **Net Income (USD '000)** | 74,363 | 44,211 | | **Net income available to common shareholders (USD '000)** | 69,590 | 41,909 | | **Weighted average number of shares – basic** | 43,513,654 | 45,616,180 | | **Weighted average number of shares – diluted** | 43,755,831 | 45,664,111 | | **Basic earnings per share (USD)** | **1.60** | **0.92** | | **Diluted earnings per share (USD)** | **1.59** | **0.92** | - The two-class method was applied to compute basic EPS because unvested earn-out shares are considered participating securities[48](index=48&type=chunk) [Note 9: Subsequent Events](index=16&type=section&id=9.%20SUBSEQUENT%20EVENTS) On July 28, 2023, the company initiated a cash offer to purchase all outstanding warrants at **$0.95** per warrant - On July 28, 2023, the Company initiated an offer to purchase all outstanding public and private warrants for **$0.95** in cash per warrant[52](index=52&type=chunk)

Forward Looking Statements International General Insurance Holdings Ltd. 2 | --- | --- | |------------------------------------------|-------------------------------------------------------------------------------------------------------------------------| | | | | IGI is an technical expertise providing | international specialist (re)insurance group with deep coverage across a diversified portfolio of specialty lines | ➢ "Underwriting first" individual risk underwriting strategy focused on profitable growth, ...

International General Insurance Holdings Ltd. (NASDAQ:IGIC) Q1 2023 Earnings Conference Call May 17, 2023 9:00 AM ET Company Participants Robin Sidders - Head of Investor Relations Wasef Jabsheh - Chairman and CEO Waleed Jabsheh - President Pervez Rizvi - Chief Financial Officer Conference Call Participants Mark Dwelle - RBC Capital Markets Operator Good day, everyone, and welcome to the International General Insurance Holdings Ltd.'s First Quarter 2023 Financial Results Conference Call. [Operator Instructi ...