ANNUAL REPORT 2017 - iginsure.com

1 ANNUAL REPORT . & ACCOUNTS. 2017. 1. ANNUAL REPORT . & ACCOUNTS. 2017. International General Insurance Holdings Limited ANNUAL REPORT & Accounts 2017. 4. CONTENTS. About us 6. Board of Directors 9. Letter from the Board: focus on the future 10. Financial highlights 12. Financial statements & accounts 14. 5. International General Insurance Holdings Limited ANNUAL REPORT & Accounts 2017. ABOUT US. WE ARE A LEADING INTERNATIONAL Established in 2001, we are an entrepreneurial business with a worldwide portfolio. Registered in the Dubai SPECIALIST COMMERCIAL INSURER International Financial Centre with operations in Bermuda, London, Amman, Kuala Lumpur and Casablanca, we are AND REINSURER, UNDERWRITING renowned for delivering outstanding levels of service to A DIVERSIFIED PORTFOLIO OF our clients and brokers.

2 SPECIALTY LINES. BUSINESS CLASSES. ENERGY MARINE & AVIATION PROPERTY. Upstream Energy Ports & Terminals Property Downstream Energy Marine Liability Forestry General Aviation Construction & Engineering Political Violence PROFESSIONAL & REINSURANCE. FINANCIAL LIABILITIES Treaty reinsurance Financial Institutions Professional Indemnity Directors' & Officers'. Casualty Legal Expenses 6. International General Insurance Holdings Limited ANNUAL REPORT & Accounts 2017. OFFICE LOCATIONS. 3. 1 2 4. 5. 6. 1. BERMUDA 2. CASABLANCA 3. LONDON. 44 Church Street 32-42, Bd Abdelmoumen 15-18 Lime Street Hamilton HM 12 Residence Walili 25 London EC3M 7AN. Bermuda 4th Floor Box 20000 England Casablanca Morocco 4.

3 AMMAN 5. DUBAI 6. LABUAN. 74 Abdel Hamid Sharaf St. Office 606, Level 6, Tower 1 Level 1, LOT 7, Block F. Box 941428 Al Fattan Currency House, Saguking Commercial Amman 11194 Dubai International Building Jordan Financial Centre, Jalan Patau Patau Box 506646, Dubai 87000 Labuan United Arab Emirates Malaysia KUALA LUMPUR. Marketing Office 29th Floor, Menara TA One Jalan P Ramlee 50250. Kuala Lumpur Malaysia 7. International General Insurance Holdings Limited ANNUAL REPORT & Accounts 2017. 8. International General Insurance Holdings Limited ANNUAL REPORT & Accounts 2017. BOARD OF DIRECTORS. MOHAMMAD ABU GHAZALEH SOUMITRA BISWAS. Chairman Director (Chairman and CEO, Fresh Del Monte Produce Inc.)

4 Miami). HANI JABSHEH Director WASEF JABSHEH (Co-founder ). CEO & Vice Chairman ABDULAZIZ AL BALUSHI KHALIFA AL MULHEM Director Director (Group CEO of Oman International (Chairman, National Polypropylene Development and Investment Company Company Limited Saudi Arabia) SAOG OMINVEST'). DAVID KING Director (Non-executive Director of the Board of Directors of Forex capital Markets Limited). 9. International General Insurance Holdings Limited ANNUAL REPORT & Accounts 2017. LETTER FROM THE BOARD: FOCUS ON THE FUTURE. A CLEAR STRATEGY Despite a competitive trading and rate environment in 2017 and significant FOR MEASURED natural disasters throughout the year, our underwriters continued to produce GROWTH AND AN premium growth, whilst maintaining EMPHASIS ON PRUDENT disciplined underwriting.

5 In 2017, the Group announced a 19%. UNDERWRITING TO The Group announced a 19% increase increase in gross in gross written premiums (GWP) from DELIVER BOTTOM LINE US$ million in December 2016 written premiums PROFIT. THIS WAS THE to US$ million in 2017, which demonstrated impressive growth in (GWP).. MAIN GOAL FOR 2017, GWP in all of IGI's major lines of business from last year. CONSIDERING THE. While 2017 saw the most expensive year OVERCAPACITY IN THE for catastrophe losses, IGI's exposure MARKET AND THE was limited to Property and Reinsurance after disasters is what the industry inward treaty. Effective reinsurance CONTINUAL EROSION protection helped to mitigate the severity does bringing much needed cover and relief when nature strikes, allowing OF RATES.

6 Of IGI's losses at net level, indicated by a 31% increase in net incurred claims year- governments and businesses to get back on-year, compared to a 95% increase in up and running. IGI was proud to have gross level claims year-on-year. paid its first claims related to Hurricane Despite our best intentions to have Irma just four days after the event. another great year, Mother Nature Meanwhile, the Group posted a net profit had other ideas, bringing a stream of US$ million in 2017 compared to LOOKING AHEAD A CLEAR. of disasters, including two Caribbean US$ million the year before. The STRATEGY FOR GROWTH. Hurricanes, Irma and Maria, plus two Group saw its combined ratio reach up Mexican earthquakes that resulted in to 103% at the end of 2017, compared IGI has been focusing on future-proofing the worst catastrophe year on record.

7 To in 2016. the business, with ambitious plans to We missed the Californian wildfires grow in new and existing markets via a and Hurricane Harvey that caused measured profitable growth strategy. We 2017 CATASTROPHES have several initiatives in place as part major flooding in Houston. Whilst the company's bottom line has been Following the series of catastrophes of this strategic plan, which will continue impacted by these catastrophes, we in 2017, there was plenty of talk in the to lay down the tracks for future success have accomplished a great deal in the market about the need to return to that is consistent with our philosophy year and are pleased to REPORT that sensible and prudent underwriting.

8 Of prudent underwriting and continued IGI has continued along its journey Price increases, however, did not reflect profitability. of profitable growth during these this in the January 2018 renewals. Whilst there was some movement in As part of this strategy, organisational challenging market conditions. The pricing and terms and conditions, it changes in management structure Board fully understands that we are was muted. However, the cost of these have been implemented to efficiently in the risk business and is supportive catastrophes is yet to be established and deal with IGI's growth ambitions, of the executive team. The results price adjustments may still materialize.

9 Which includes enhancing the Group's have not dampened our underwriters'. geographic platforms and expanding commitment to achieve an underwriting The 2017 hurricane season illustrated business lines and underwriting teams profit in the coming years. the role the insurance and reinsurance throughout our various offices. sectors play in society and the support extended to clients. Helping companies Meanwhile, we continue to look for ways and communities get back on their feet to strengthen our offering in the Far East, with a planned growth strategy in Kuala Lumpur to expand the Asia hub. 10. IMPORTANT ACCOMPLISHMENTS During 2017, IGI continued its support IN 2017 of cancer research and charitable IGI has made a substantial investment organisations.

10 IGI also promoted in improving our risk management, various local and international cultural actuarial and capital modelling systems initiatives and sporting activities such as part of the Group's investment in as the Equal Playing Field's recent In July 2017, providing our underwriters with the Guinness World Record soccer game Best upgraded on Mount Kilimanjaro in 2017, an support services required in today's initiative that challenges gender the company's rating marketplace. The aim is to improve and stabilise earnings over time, and give disparity in sports. to A- (excellent) with the Group a more sophisticated capital Moving forward, we have a clear focus a positive outlook.