International General Insurance : Annual Report

INTERNATIONAL GENERAL

INSURANCE HOLDINGS LTD.

Annual

Report 2023

REACHING NEW HEIGHTS

ALWAYS LOOKING BEYOND

CONTENTS

About us	4
Letter from the Executive Chairman	5
Year in Review: Report from the President & CEO	8
Financial highlights	15
Financial statements & accounts	16
Board of Directors	233

FORWARD LOOKING STATEMENTS DISCLOSURE

This Annual Report 2023 contains certain statements that are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You should not place undue reliance on such statements because they are subject to numerous uncertainties and factors relating to IGI's operations and business environment, all of which are difficult to predict and many of which are beyond IGI's control. Forward-looking statements include information concerning IGI's possible or assumed future results of operations, including descriptions of our business strategy. These statements are often, but not always, made through the use of words or phrases such as "believe," "anticipate," "could," "may," "would," "should," "intend," "plan," "potential," "will," "expect," "believe," "continue," "strategy,"

"outlook" and similar expressions. Such statements are qualified by the inherent risks and uncertainties surrounding future expectations generally, and may differ materially from actual future experience.

For a more detailed discussion of such risks and uncertainties, see IGI's annual report on Form 20-F for the year ended December 31, 2023, including those under "Risk Factors" therein, and in the Company's other filings with the SEC. IGI undertakes no obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

GLOBALLY

CONNECTED

1. BERMUDA	4. OSLO	6. AMMAN	8. KUALA LUMPUR
Park Place, 1st Floor,	c/o Tyveholmen AS	74 Abdel Hamid Sharaf St.	29th Floor, Menara TA One
55 Par-la-Ville Road,	7 etg, Tjuvholmenallé 19	P.O. Box 941428	Jalan P Ramlee 50250
Hamilton HM 01 Bermuda	0252 Oslo Norway	Amman 11194 Jordan	Kuala Lumpur Malaysia

2. CASABLANCA	5. MALTA	7. DUBAI	9. LABUAN
32-42, Bd Abdelmoumen	3rd Floor - Development	Office 606, Level 6, Tower 1	Level 1, LOT 7, Block F
Residence Walili 25	House	Al Fattan Currency House	Saguking Commercial
4th Floor P.O. Box 20000	St. Anne Street Floriana	Dubai International	Building
Casablanca Morocco	FRN 9010 Malta	Financial Centre	Jalan Patau - Patau
3. LONDON		P.O. Box 506646, Dubai	87000 Labuan Malaysia
	United Arab Emirates
15-18 Lime Street
London EC3M 7AN England

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ABOUT US

IGI has been a successful niche player in the insurance and reinsurance specialty markets for more than 20 years. Formed in 2001 in Amman, Jordan, the company began underwriting operations in 2002 writing five specialty lines of business. Today, IGI writes a diverse global portfolio of specialty lines.

From its beginnings, IGI's focus has been on serving our clients, capital strength and preservation, and generating shareholder value through responsive and focused underwriting in markets we know and understand. The result is a demonstrated track record of compounded annual double-digit total value creation. While we have evolved and grown significantly since 2002, the key cultural attributes that have made us successful remain embedded throughout our Company today.

A

AM Best

Stable

Outlook

A-

S&P

Stable

Outlook

IGI

We are an international specialist insurance and reinsurance group, registered in Bermuda and listed on Nasdaq Capital Markets under the symbol "IGIC".

Our business

Established in 2001, we are an entrepreneurial business with a diversified risk portfolio of Energy, Property, General Aviation, Construction & Engineering, Ports & Terminals, Marine Cargo, Marine Trades, Contingency, Political Violence, Financial Institutions, General Third-Party Liability (Casualty), Legal Expenses, Professional Indemnity, D&O, Marine Liability, and Reinsurance Treaty Business.

We are truly international

Registered in Bermuda, we have offices in Bermuda, London, Amman, Malta, Dubai, Oslo, Casblanca, and Kuala Lumpur. We have long standing relationships in these regions, providing a high level of cultural compatibiity and service to our clients and brokers.

An entrepreneurial success story

IGI has a long track record of success. Over the past 5 years, we have grown our premiums at a compounded annual rate of more than 18%, while achieveing an average combined ratio of 85.0% and an average core operating return on equity of 16.7%.

Annual Report 2023

International General Insurance Holdings Ltd.

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LETTER FROM THE EXECUTIVE CHAIRMAN

To My Fellow Shareholders

2023 was an exceptional year for IGI. On virtually every measure, our financial results were outstanding and exceeded the record results achieved in 2022.

We grew our gross premium portfolio by a healthy 18.3% with a combined ratio of 76.7% and delivered a core operating return on average equity of 28.1%. Our shareholders were rewarded with a 61% increase in share price. In addition, and consistent with our long-standing promise to shareholders, we returned approximately $33 million in capital in the form of dividends and share repurchases. Our strategy has always reflected our belief that we will generate the best returns for our shareholders through our underwriting - growing when our markets are favorable, and when we have excess capital, return it to our shareholders who have put their trust in us. I am very pleased with our most recent decision to pay a $0.50 per share special cash dividend for 2023 in addition to our regular quarterly dividends.

These results were achieved during a year in which we effected a successful CEO transition - our first in 22 years, opened a new office in Oslo - our eighth, while building out our product offerings and skillsets in other offices. During 2023, we also executed two successful capital markets transactions. It would be fair to say that 2023 was not just an active year for IGI in terms of seizing opportunities that would both expand and diversify our footprint, but also in continuing to build a strong foundation that would effectively and efficiently service our growing company.

I said in my letter to you a year ago that our success is not just in the numbers we publish, but in the people that make up the IGI family. The results that you are seeing from IGI are the consequence of a consistently well-executed strategy, and a deep understanding of who we are and what our capabilities are.

I am exceedingly proud of everyone at IGI for their resilience, discipline, and consistent and high-quality communication and collaboration. Again, I truly believe that we have a uniqueness

in the set of values that we live by, call it the IGI culture, our DNA, or our corporate character. Throughout what was in many ways a challenging year, we remained steadfastly focused, ultimately producing what are exceptional results and delivering on our promises largely because of our ability to maintain that cultural integrity that defines us. What's most important to us is our ability to remain true to who we are and continue to do what we do best, but always strive to do it better.

I thank every member of the IGI family for their dedication and commitment in continuing to advance our goal of creating consistent and sustainable long-term value for our shareholders through responsible and selective underwriting, and targeted growth and diversification.

On behalf of my fellow Directors, to our brokers, our clients, shareholders and all our stakeholders, thank you for your continued support of IGI.

Wasef S Jabsheh

Executive Chairman

Europe, Africa & Middle East	The Americas	Asia

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International General Insurance Holdings Ltd.

Annual Report 2023

BUILDING ON

STRONG FOUNDATIONS

• Throughout what was in many ways a challenging year, we remained steadfastly focused, ultimately producing what are exceptional results and delivering on our promises largely because of our ability to maintain that cultural integrity that defines us. "

Wasef S Jabsheh

Executive Chairman

SHAPING THE FUTURE

We will continue to be responsible stewards of shareholder capital, while building on the strong foundations of the past two decades.

Waleed Jabsheh

President & CEO

YEAR IN REVIEW

REPORT FROM THE PRESIDENT & CEO

It gives me great pleasure and pride to be writing to you for the first time as IGI's Chief Executive Officer, a position I took on in mid-2023. I have been entrusted with great responsibility in taking over this role from my father and IGI founder, Wasef Jabsheh, who has built and led IGI's successful track record for over two decades. I have been asked several times how I will put my own mark on IGI and what I will do differently. The simple answer is nothing dramatic; I will continue our focus on profitably growing and diversifying our portfolio, executing with precision, maintaining high-quality service to our clients, and actively and efficiently managing the capital entrusted to us so that we continue to generate strong shareholder value. Most importantly, as we grow and evolve, preserving our unique IGI culture is one of my single biggest priorities as that is what has driven our history of success.

From our outset as a single modest office with three employees to a $600 million-plus market capitalized public company with over 400 people across eight offices globally, we have been able to maintain our small company culture, one that feels like a family, with a high level of engagement and commitment across all levels of our organization. It is a culture that fosters and drives the attitudes, actions and decisions of our people. This gives us a uniqueness that is not easy to replicate but can be difficult to maintain as we grow. I am especially proud of all our people for the decisions made throughout 2023 in anticipating and responding to challenging and shifting market conditions.

In 2023, we achieved record results across virtually all financial metrics, surpassing 2022 which was the best year in our Company's history. Given the challenging market and economic conditions, as well as an increasingly concerning geo-political global landscape, this speaks solidly to our steadfast focus

on intelligently managing our capital, moving swiftly to those areas of our business with the highest margins, actively positioning our investment portfolio, and ultimately returning excess capital to our shareholders.

Our strategy is simple. We focus on specialty risks with an "underwriting first" philosophy, as that is where we believe we can achieve the best returns and add the most value for all our stakeholders. We are a predominantly facultative - or individual risk - underwriter, we understand our exposures and our capabilities, ensuring we stay within our well-defined risk appetite and risk tolerances. We focus on what we can do and do it well, while always striving to improve. Working off a single balance sheet across our group means we can make decisions quickly and intelligently and we are not competing with ourselves. Every team member understands what their individual and collective responsibility is, and also how what they do impacts the end result. We are details focused, we have a deep understanding of our markets with people on the ground providing cultural compatibility, we communicate with transparency, and we execute with precision.

Ultimately, we will continue to be responsible stewards of shareholder capital, while building on the strong foundations of the past two decades.

We focus on what we can do and do it well, while always striving to improve. Working off a single balance sheet across our group means we can make decisions quickly and intelligently and we are not competing with ourselves.

Annual Report 2023

International General Insurance Holdings Ltd.

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FINANCIAL RESULTS

We produced record results again in 2023, exceeding the record results posted in 2022. Book value per share was $12.40 at year end 2023, representing growth of 36.7% from year end 2022 and 67.3% for the 15 quarters since we became a public company. Growth in book value per share is our most important measure, as increases over time are a key indicator of long-term shareholder value creation.

We reported record core operating income of $133.8 million, representing an increase of 42.5% over 2022. On a per share basis, core operating income increased 48.5%. Return on average shareholders' equity was 24.8% and core operating return on average shareholders' equity was 28.1%, 4.4 points above that of 2022.

During 2023, we grew our underwriting portfolio by 18.3% or $106.7 million to $688.7 million. To provide context on our growth in recent years, we have grown our business by almost 50% over the past three years. We generated record underwriting profit, with $183.1 million in underwriting income, representing an increase of 23.2% over 2022. Our combined ratio for 2023 was 76.7%, representing a 1.8-point improvement on 2022, and almost 10 points from 2021.

We saw solid growth in both the Short-tail and Reinsurance Segments during 2023, but we took an increasingly more cautious view in our Long-tail Segment where renewal rates, while still adequate, have trended down in many lines for the past 8 quarters and competition is intensifying. We expect this to continue in 2024.

We continued to grow our balance sheet during 2023 while remaining fully unlevered. Total assets increased 16.3% to $1.8 billion and total equity increased 31.5%, comfortably surpassing the half a billion dollar mark to $540.5 million in 2023.

Our investment portfolio remains conservatively positioned with 96% of invested assets in fixed income securities, term deposits and cash and cash equivalents. Throughout 2023, we took action to mitigate inflationary impacts by keeping the duration of our bond portfolio relatively steady with 2022, ending 2023 at an average duration of 3.2 years. Our fixed income portfolio is well-diversified by sector and by geography, with 76% having a credit rating of "A" or above and improved our overall average credit rating to "A". We reported an increase in net investment income of almost 250% to $50.2 million and we expect that given the current interest rate environment, investment income will continue to grow through 2024. We will continue to look for opportunities to generate higher yields on our fixed income portfolio while maintaining our low risk profile.

From a capital management perspective, we are increasingly demonstrating our ability to pull the right levers to maximise shareholder value. During 2023, we continued to repurchase common shares under our existing 5 million common share repurchase authorization. In addition, during the year, we redeemed all outstanding warrants for cash at a total cost of $16.3 million. And as our Board stated in 2022 when we amended our dividend policy, we would consider special dividends as and when appropriate. I am pleased that our Board has declared a special cash dividend of 50 cents per common share for 2023, alongside the regular quarterly dividends.

For the remainder of 2024, as market opportunities remain relatively healthy overall in short-tail and reinsurance lines, we will prioritise using our capital to grow our business with the emphasis on maximising the overall profitability profile of IGI.

We continued to grow our balance sheet during 2023 while remaining fully unlevered. Total assets increased 16.3% to $1.8 billion and total equity increased 31.5%, comfortably surpassing the half a billion dollar mark to $540.5 million in 2023.

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International General Insurance Holdings Ltd.

Annual Report 2023