The timing of the transaction with Tiberius was both positive and opportune for IGI, while the simplified access to capital enables the insurer to grow in the current market, according to the company’s President, Waleed Jabsheh.
Following its business combination with Tiberius, former Dubai-registered IGI became a public company and started trading on the Nasdaq under the symbol ‘IGIC’ earlier this year.
Prior to the deal completing, IGI also revealed that its Bermuda subsidiary had received provisional approval to enter the U.S. excess and surplus (E&S) lines market from the 1st of April.
In light of the developments at the company and its transition from a private to public company, Reinsurance News spoke with IGI President Waleed Jabsheh.
“To be totally honest with you, it’s pretty much business as usual. Focusing on the lines of business that we currently write. We have a product suite of about 17 different classes and sub-classes.
“The timing of the transaction we find to be quite positive and opportune, given the market conditions. Being a public company will give us more credibility within the industry as well, with a public company being under even more stricter regulations,” said Jabsheh.
Currently, IGI is regulated by the PRA, the FCA, the BMA in Bermuda, and the DFSA in Dubai, in addition to regulators in Malaysia, Casablanca, and Jordan. Of course, listing on the Nasdaq means U.S. and SEC regulations, which Jabsheh explained provides its stakeholders, particularly those in the US, with much more confidence in the credibility of the company.
Being a public company also provides IGI with easier access to capital, if and when it ever needs it.
“We are putting more capital onto the balance sheet through this transaction, so that will give us the funding and the means to grow in a market like this.
“From a timing perspective, I’m sure you’re aware where the market is and what it’s been doing for the last 12 to 18 months. We’ve seen hardening in rates and underlying terms and conditions across most of our classes of business. And, we see no let down in that at least throughout this year,” he continued.
In the near-term, IGI is focused on growing within the spheres it already operates in, and regarding its new market entry, the U.S. portfolio will be solely focused on short-tail classes.
“Previously, every time we looked at the U.S. E&S market, honestly, we didn’t feel that the timing was right. We didn’t want to enter a market that was soft and we just waited until we felt the market conditions were more amenable to an entry for us,” said Jabsheh.
He continued to underline that the success of IGI’s entry into the U.S. marketplace will also be supported by the expertise gained through the Tiberius transaction.
“The Board of Directors of Tiberius are well renowned market experts, individuals who have worked most of their careers in the insurance sector, built companies themselves privately and took them public. So, we found the fit between IGI and Tiberius to be very, very positive and beneficial.
“Their expertise will help us have a successful entry into the U.S. and build a successful portfolio,” he said.
Looking forward, and Jabsheh reiterated that apart from the fact IGI is now a public company with more money on its balance sheet, it’s business as usual in the way it underwrites business, manages its portfolios and the company.
Regarding the market environment and the outlook for the remainder of the year, Jabsheh told Reinsurance News that the expectation is for market conditions to continue.
“With everything that is going on, I think it even more solidifies that sort of expectation. We are seeing rate increases across predominantly all of our classes of business, except for terrorism. But everywhere else, and of course it varies from class to class, and the magnitude is different from class to class, we’re seeing no let down in the positive rate movements that we achieved last year and the year before.
“So, our expectation is that will continue at least throughout 2020 and into 2021,” he explained.
