Standard & Poor’s Ratings Services announced that it has assigned its ‘BBB’ long-term counterparty credit and insurer financial strength ratings to Jordan-based insurer International General Insurance Co. Ltd. Jordan (IGI) with a stable outlook.
“The ratings reflect IGI’s strong capitalization, able management team, and good earnings,” stated S&P credit analyst Kevin Willis. “These rating strengths are partly offset by the marginal competitive position of the company and its aggressive growth strategy.”
S&P described IGI as a “small, Jordan-based insurer, focused primarily on energy business in the Afro-Asian region. IGI commenced trading in 2002.”
The rating agency said the stable outlook reflects its expectation that “IGI’s management will maintain its cautious underwriting resolve in accepting risks and continue to deliver sound earnings. The company is targeting aggressive growth in gross premium volumes to $80 million in the year ending March 31, 2006.
“IGI’s focus will remain on energy risks, but it will expand its property, marine, and engineering portfolios, and commence underwriting nonproportional reinsurance and aviation business. Earnings will moderate, but remain good, as the global underwriting cycle continues to weaken. The nature of the accepted risks and underwriting controls in place will enable combined ratios to better 100 percent in most years, although operating performance will be exposed to short-term volatility arising from large individual losses.”
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