International General Insurance Holdings (IGIC) AI Stock Analysis

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International General Insurance Holdings

(NASDAQ:IGIC)

Rating:79Outperform

Price Target:―

IGIC's overall stock score is strong at 78.6, driven primarily by its solid financial performance, robust valuation, and positive earnings call insights. The company's effective cost management, zero debt, strong equity growth, and strategic market expansion underline its resilience in a competitive and challenging market environment. However, the absence of current cash flow data presents a minor limitation. Technical indicators suggest a stable to slightly positive trend, further supporting the stock's attractiveness.

International General Insurance Holdings (IGIC) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.08B

Dividend Yield7.62%

Average Volume (3M)140.70K

Price to Earnings (P/E)8.8

Beta (1Y)0.68

Revenue Growth13.29%

EPS Growth17.14%

CountryUS

Employees401

SectorFinancial

Sector Strength82

IndustryInsurance - Diversified

Share Statistics

EPS (TTM)0.59

Shares Outstanding45,108,936

10 Day Avg. Volume177,180

30 Day Avg. Volume140,703

Financial Highlights & Ratios

PEG Ratio0.04

Price to Book (P/B)0.85

Price to Sales (P/S)0.00

P/FCF Ratio-4.21

Enterprise Value/Market Cap0.21

Enterprise Value/Revenue0.11

Enterprise Value/Gross Profit0.43

Enterprise Value/Ebitda5.03

Forecast

1Y Price Target

$32.00

Price Target Upside33.56% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

International General Insurance Holdings Business Overview & Revenue Model

Company DescriptionInternational General Insurance Holdings Ltd. provides specialty insurance and reinsurance solutions worldwide. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It underwrites a diversified portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, casualty, financial institutions, marine, contingency, and treaty reinsurance. The company was founded in 2001 and is based in Amman, Jordan.

How the Company Makes MoneyInternational General Insurance Holdings makes money primarily through underwriting insurance policies and collecting premiums from clients. The company's revenue model is based on assessing and underwriting various types of risks, setting premium prices accordingly, and investing the premiums collected. Key revenue streams include premiums from direct insurance and reinsurance operations across sectors like energy, property, and marine. The company also generates investment income from the premiums collected, which are invested in a diverse portfolio to earn returns. Significant partnerships with brokers and agents enhance its market reach, contributing to its earnings by expanding its client base and distributing its products more effectively.

International General Insurance Holdings Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: -6.70%|

Next Earnings Date:Aug 14, 2025

Earnings Call Sentiment Neutral

The earnings call reflected resilience and strategic adaptability in a challenging environment. While IGI demonstrated strong growth in premiums and a solid combined ratio, it faced significant challenges from increased loss activity and currency volatility. The company's strategic focus on diversification and disciplined underwriting provided stability, but the quarter's results were tempered by lower net income and challenges in the long-tail segment.

Q1-2025 Updates

Positive Updates

Strong Growth in Gross Written Premiums

IGI reported a 13% growth in gross written premiums, surpassing $206 million, primarily driven by the reinsurance segment, which grew by almost 44%.

Solid Combined Ratio Performance

The company achieved a combined ratio of 94.4%, reflecting resilience despite a challenging quarter with significant market losses.

Return to Shareholders

For the second consecutive year, IGI paid a special dividend of $0.85, returning a total of $43.5 million to shareholders during the first quarter.

Positive Prior Year Development

The company experienced favorable prior year development of $25.8 million, primarily driven by positive experience in the short-tail segment.

Investment Income Growth

Investment income increased by over 15% from Q1 2024, with fixed income securities generating $13.6 million at a yield of 4.3%.

Negative Updates

Increased Loss Activity and Catastrophes

The quarter was impacted by higher natural catastrophe losses, including California wildfires and Taiwan earthquakes, affecting both reinsurance and short-tail segments.

Currency Volatility Impact

Currency volatility negatively impacted reserves, with a reported 10-point impact on the combined ratio due to non-U.S. dollar reserves.

Underperformance in Long-Tail Segment

The long-tail segment recorded an underwriting loss of $7.5 million, driven by higher loss activity and negative development in the professional indemnity portfolio.

Decreased Net Income

Net income decreased to $27.3 million from $37.9 million in Q1 2024, attributed to lower underwriting income and increased loss activity.

Company Guidance

During the first quarter of 2025, International General Insurance Holdings Ltd. reported a combined ratio of 94.4%, highlighting the strength of their diversification strategy amidst a challenging environment with significantly elevated loss events and macroeconomic volatility. The company returned $43.5 million to shareholders, which included a special dividend of $0.85 per share. Gross written premiums (GWP) grew over 13% to $206 million, primarily due to growth in the reinsurance segment. The net earned premium stood just under $113 million, factoring in $7.3 million of reinstatement premiums paid on loss-affected accounts. The quarter also saw a net income of $27.3 million or $0.59 per share, compared to $37.9 million or $0.84 per share in the first quarter of 2024. Core operating income was $19.5 million, with a return on average shareholder equity of 16.7%. The company faced higher levels of natural catastrophes such as the California wildfires and earthquakes in Taiwan, along with increased foreign exchange volatility, which impacted non-U.S. dollar reserves by approximately 10 points on the combined ratio. Total equity was reported at just over $650 million, with a book value per share of $14.65, while the total return perspective showed a 4.5% increase in book value per share plus dividends at the end of Q1 from the end of the previous year.

International General Insurance Holdings Financial Statement Overview

Summary

International General Insurance Holdings showcases strong financial performance with significant revenue growth and robust profitability margins. The balance sheet reflects financial stability with zero debt and solid equity growth, enhancing investor confidence. However, the lack of current cash flow data limits a full evaluation of liquidity and cash management capabilities. Overall, IGIC remains well-positioned in the insurance industry, but increased transparency in cash flow reporting would strengthen its financial narrative.

Income Statement

Very Positive

International General Insurance Holdings (IGIC) has demonstrated strong revenue growth with a notable increase from $471.96 million in 2023 to $539 million in 2024, indicating a robust revenue growth rate of approximately 14.2%. The gross profit margin remains high at 100%, showing effective cost management. The net profit margin improved to 25.1% in 2024 from 25.0% in 2023, reflecting stability in profitability. The EBIT margin also increased significantly to 83.0% in 2024, showcasing enhanced operational efficiency. However, the absence of reported EBITDA margins is a minor limitation.

Balance Sheet

Positive

The balance sheet shows a strong equity position with an equity ratio improving to 32.1% in 2024 from 35.6% in 2023, indicating stability in capitalization. The absence of total debt in 2024 is a positive sign of financial health, reducing leverage risks. Return on equity (ROE) remains impressive at 20.6%, emphasizing efficient use of shareholders' equity to generate profits. The improvement in stockholders' equity from $540.43 million in 2023 to $654.8 million in 2024 suggests a strong financial foundation. However, the decline in cash and cash equivalents poses a potential liquidity concern.

Cash Flow

Neutral

The cash flow statement reveals challenges with operating cash flow not reported in 2024, diminishing insight into cash generation capabilities. The free cash flow to net income ratio for 2023 was strong, but the absence of current free cash flow data limits the analysis. Positive free cash flow in previous years highlights effective cash management, yet the lack of recent data hinders a comprehensive assessment. The trend of no capital expenditures in 2024 suggests cost containment, but it may also imply limited reinvestment for growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	539.00M	471.96M	386.60M	357.10M	296.00M
Gross Profit	539.00M	471.60M	386.60M	357.10M	296.00M
EBITDA	0.00	0.00	90.94M	47.06M	30.01M
Net Income	135.15M	118.19M	89.23M	46.81M	27.25M
Balance Sheet
Total Assets	2.04B	1.52B	1.56B	1.45B	1.28B
Cash, Cash Equivalents and Short-Term Investments	380.58M	297.64M	138.00M	242.10M	133.40M
Total Debt	0.00	2.13M	3.07M	3.75M	2.95M
Total Liabilities	1.38B	976.37M	1.13B	1.05B	884.60M
Stockholders Equity	654.80M	540.43M	429.80M	401.90M	394.60M
Cash Flow
Free Cash Flow	202.84M	193.36M	-86.62M	127.44M	-92.48M
Operating Cash Flow	209.47M	196.61M	-85.35M	129.79M	-90.57M
Investing Cash Flow	-186.57M	-90.36M	-1.24M	-2.49M	-1.91M
Financing Cash Flow	-49.68M	-49.16M	-14.25M	-16.89M	35.66M

International General Insurance Holdings Technical Analysis

Technical Analysis Sentiment

Positive

Last Price23.96

Price Trends

50DMA

23.55

Positive

100DMA

24.12

Negative

200DMA

23.05

Positive

Market Momentum

MACD

0.11

Negative

RSI

56.03

Neutral

STOCH

73.33

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IGIC, the sentiment is Positive. The current price of 23.96 is above the 20-day moving average (MA) of 23.19, above the 50-day MA of 23.55, and above the 200-day MA of 23.05, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 56.03 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IGIC.

International General Insurance Holdings Risk Analysis

International General Insurance Holdings disclosed 77 risk factors in its most recent earnings report. International General Insurance Holdings reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

International General Insurance Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IGIC	79 Outperform	$1.08B	8.80	20.50%	7.62%	13.29%	17.14%
ESGR	77 Outperform	$5.04B	10.80	8.56%	―	10.70%	-39.16%
ACGL	72 Outperform	$33.42B	9.15	18.42%	―	25.29%	-23.19%
Sector *	67 Neutral	$17.07B	11.91	9.69%	3.75%	11.66%	-9.47%
FIHL	66 Neutral	$1.77B	17.57	-0.42%	2.47%	23.28%	-103.35%
GSHD	63 Neutral	$3.92B	87.12	60.58%	―	21.60%	90.80%
AIG	56 Neutral	$47.94B	18.58	6.13%	2.16%	-44.30%	-33.09%

* Financial Sector Average

Performance Comparison

IGIC

International General Insurance Holdings

23.96

10.00

71.63%

AIG

American International Group

83.18

9.93

13.56%

ACGL

Arch Capital Group

89.19

-4.25

-4.55%

ESGR

Enstar Group

337.91

8.02

2.43%

GSHD

GooseHead Insurance

104.50

51.22

96.13%

FIHL

Fidelis Insurance Holdings Ltd.

16.19

0.18

1.12%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025