International General Insurance Holdings (IGIC) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: 4.14%
• Average Volume (3M): 89.81K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.77
• Revenue Growth: 9.52%
• EPS Growth: N/A
• Country: US
• Employees: 401
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 0.77
• Shares Outstanding: 45,108,936
• 10 Day Avg. Volume: 52,821
• 30 Day Avg. Volume: 89,815
• PEG Ratio: 0.47
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 2.00
• P/FCF Ratio: 5.18
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 1.99
• Enterprise Value/Ebitda: 36.44
• 1Y Price Target: $32.00
• Price Target Upside: 31.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• 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.

Positive Factors

Revenue Growth

The robust revenue growth of approximately 14.2% indicates strong demand for IGIC's insurance products and effective market penetration, supporting long-term business expansion.

Zero Debt

Having no debt enhances IGIC's financial flexibility, reduces risk, and allows for reinvestment in growth opportunities, contributing to a stable financial foundation.

U.S. Market Expansion

Significant growth in the U.S. market highlights IGIC's strategic expansion and ability to capture new opportunities, strengthening its competitive position in a key market.

Negative Factors

Increased Competition

Rising competition and pricing pressures can constrain revenue growth and profitability, challenging IGIC's ability to maintain market share and margins over time.

Long Tail Segment Challenges

Contraction in the long tail segment indicates difficulties in underwriting profitability, potentially impacting future earnings and requiring strategic adjustments.

Elevated Loss Environment

Frequent loss events increase claims costs and can pressure underwriting profitability, necessitating robust risk management and pricing strategies to mitigate impacts.

International General Insurance Holdings Business Overview & Revenue Model

Company Description

International 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 Money

International 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 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

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

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

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	525.95M	471.96M	386.60M	357.10M	296.00M
Gross Profit	230.30M	471.60M	386.60M	357.10M	296.00M
EBITDA	135.69M	0.00	90.94M	47.06M	30.02M
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 Price: 24.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 24.28 is above the 20-day moving average (MA) of 24.25, above the 50-day MA of 23.96, and above the 200-day MA of 23.97, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 30.09 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACGL	79 Outperform	$33.81B	9.36	17.09%	―	23.79%	-32.09%
IGIC	79 Outperform	$1.09B	8.75	20.11%	4.14%	9.52%	―
ESGR	77 Outperform		―		―	10.70%	-39.16%
AIG	70 Outperform	$43.61B	14.46	7.61%	2.10%	-33.87%	-5.72%
Sector *	68 Neutral	$18.10B	11.52	9.93%	3.73%	9.70%	1.14%
FIHL	66 Neutral	$1.83B	17.57	-1.83%	2.30%	20.42%	-110.82%
GSHD	63 Neutral	$3.04B	70.82	60.58%	―	23.49%	60.38%