Page 25 - October 2022 Issue 611 Part 2

Waleed Jabsheh (President of IGI)

Our ambition has always been to become a global
player with Middle Eastern roots

IGI is the twenty-year growth story of a small regional insurance business founded in
Jordan that over time has fully internationalized, re-domiciled to Bermuda and is now
present in all the major global insurance hubs. It is A-rated by AM Best and holds an A-
rating from S&P and now employs more than 300 staff writing circa 25 lines of business.
It produces underwriting profits that would be the envy of all but the very best players
in the insurance industry. IGI is a firm with a patient strategy that is happy to stay out
of the limelight and quietly get on with its business with the confidence that its under-
writing results will speak for themselves. Waleed Jabsheh, President of IGI, has been
meticulous and thoughtful in his responses to Al Bayan’s questions when we met him and
conducted an interview on the sidelines of the Monte Carlo Reinsurance Rendez-Vous.
Following is the Q & A.

We are consistent in our approach & risk appetite and inflation
will have a big impact on the industry

• Inflation is a major concern nowadays. How is it affecting the The company is doing really well
insurance & reinsurance markets?
- Inflation no doubt will have a big impact on the industry and the client • What are your latest realizations?
base but we as insurers and reinsurers need to work with our clients to - Thankfully, the company is doing really well. We achieved very healthy
ensure that we continue to provide a product that is affordable and pro- full year results last year as well as the first six months of this year. We
vides coverage that the clients are looking for. Otherwise, we will eliminate continue to grow and expand the operation; we are setting up an office in
the market ourselves. We have been in situations like this before, but IGI is Bermuda and we’ve recently acquired an MGA in Norway that will com-
agile and strategic, diversified, and well-positioned to perform in any envi- plement our operations in Europe and ultimately act as our Scandinavian
ronment – we will work closely with clients, brokers and stakeholders to find platform. Over the last few years, we’ve entered new classes of business,
solutions. Pressure on rates, and close attention to terms and conditions, and diversified into contingency and marine cargo. We are trying to max-
need to be maintained at the primary and reinsurance level to ensure that imize the opportunities that the current market conditions provide. We’ve
we are moving fast enough to keep ahead of the inflation trend. grown a lot over the last few years practically doubling in size and we are
excited about the future. The outlook looks bright, and we will continue
• Cyber risks are also a major concern and it is said that there is not doing exactly what we have done for the last twenty years. We are con-
enough capacity in the world market to contain the risks. How can sistent in our approach and risk appetite; this has allowed us to generate
insurers address this problem? our successful track record.
- Cyber is not an area that we operate in but is undoubtedly an important
area that is growing. Cyber is predicted to be one of the strongest areas • Will there be any changes in your expansion plans?
of growth - if not the strongest growth area - in the market. There has - We will continue to explore expansion opportunities all the time.. For
been a lot of dislocation in that market because of the adverse loss activ- example, we entered the US markets just about two and a half years ago
ity. IGI has stayed away from it because of the unknowns that come with which obviously is a very risk market. We need to ensure that any entry
it. It is still a young developing market where people are still trying to get whether into a new territory or class of business is carried out having under-
to grips with the exposures. The market stands today in a stronger posi- taken proper due diligence, and that we employ and bring the people in
tion than five years ago. There is a better understanding of the exposures who have the level of expertise that will allow us to navigate profitably with-
and the coverages that are being provided. Wordings are being tailored in those markets. IGI’s approach has always been dictated by caution. Our
and tightened to make the product more viable from a provider perspec- track record has shown that our growth has always been gradual, method-
tive, and to manage that systematic risk which everybody is concerned ical and focused always on the bottom-line. It is about understanding the
about. It is definitely an area that needs to be monitored closely and risks that you take before you take them which will put you in a position that
unquestionably will play and make up a big part of the overall market can allow you to manage them and navigate profitably.
going forward.
• To what extent are you committed to the Mena region?
• How do you view the recent increases in interest rates? - We are a global company but our roots are from the Middle East. Our
- The rising interest rate environment, from a reinsurance perspective, business initially was much more focused on the Middle East than it is
has adversely impacted capital and we’ve seen a reduction resulting today. Our commitment to the Middle East and North African markets
from mark-to-market adjustments. This was a common theme across the however is steadfast.
market in the first six months of this year. Increasing interest rates will, how- It is the part of the world that we know and understand best. Our offices
ever, generate more investment income. Where we stand today will not in Dubai, Amman and Casablanca are thriving. Our appetite towards
drive where rates go – there are many more factors to consider. The under- Middle Eastern businesses is always high and so it all comes down to
lying macro-economic environment, the volatility of the global reinsurance market conditions and our ability to generate and write the business that
space over the last several years with higher frequency of NatCat losses, will provide healthy returns. We all know how competitive the Middle
events like Covid and the Russian-Ukrainian war, have all driven volatility Eastern market can be so it is about taking the right steps at the right
and a tightening of prices in the reinsurance market that we are seeing time, but we will always look to develop in the Middle East to the largest
today. extent possible.

157 AL BAYAN ECONOMIC MAG - ISSUE 611 - OCTOBER 2022