International General Insurance(US:IGIC)2025-11-19 16:17Summary of International General Insurance Holdings (IGIC) FY Conference Company Overview - Company Name: International General Insurance Holdings (IGIC) - Ticker Symbol: IGIC (NASDAQ) - Founded: 2002 in Jordan - Current CEO: Waleed Jabsheh, with the company since its inception - Capital Growth: Initial capital of $25 million has grown to approximately $700 million [4][5] Business Model and Strategy - Specialization: IGIC is a specialist insurance and reinsurance company, initially focused on a few lines of business, now expanded to nearly 25 different lines [3][11] - Global Presence: Operates eight offices worldwide, including locations in Asia, the Middle East, Africa, Europe, and Bermuda [3][4] - Employee Growth: From a handful of employees to approximately 470-480 [4] Market Dynamics - Cyclical Nature: The insurance industry is cyclical, with rates fluctuating based on supply and demand. Currently, IGIC is positioned in the middle of the cycle [5][9] - Competition: Increased competition has led to pricing pressures, with a tendency for companies to lower prices during profitable periods, which can lead to inadequate pricing and subsequent losses [6][9] Risk Management and Discipline - Focus on Discipline: Emphasizes the importance of maintaining discipline in underwriting and risk management, avoiding overextension during profitable times [10][15] - Diversified Portfolio: Maintains a diversified portfolio across three segments: reinsurance, short tail, and long tail, allowing for better management of market cycles [11][13] - Risk Appetite: Clearly defined risk tolerances and appetite, avoiding markets and lines of business that do not align with their expertise, such as U.S. liability business [16][15] Financial Performance - Long-term Focus: IGIC does not provide quarterly guidance, instead focusing on long-term value creation, aiming for a combined ratio in the mid-to-high 80s and a return on equity in the low-to-mid teens over a 10-year cycle [26][27] - Recent Performance: Achieved combined ratios in the mid to high 70s and ROEs in the low to mid 20s in recent years, outperforming the industry average [27][30] Investment Philosophy - Conservative Approach: Investment strategy is conservative, focusing on fixed income and avoiding high-risk investments. Equities represent less than 2% of the overall portfolio [32][34] - Share Buybacks: Announced a buyback program in 2022, having repurchased 7.5 million shares, with a new authorization for an additional 5 million shares [34][35] Conclusion - Value Creation: The ultimate goal is to deliver and grow value without sacrificing the bottom line for top-line growth. The company has built a strong track record as a public entity over the past five years [27][35]