HAMILTON, Bermuda – International General Insurance Holdings Ltd (NASDAQ: IGIC), a global commercial insurance and reinsurer, has expanded its share repurchase authorization to 7.5 million shares, the company announced Monday. This increase adds 2.5 million shares to the previous 5 million share repurchase program, which was unveiled in May 2022.
As of Monday, the company had 475,203 shares remaining under the original mandate. With the new increase, IGI now has authorization to repurchase a total of 2,975,203 common shares. Stock buybacks are a way for companies to return value to shareholders, and can improve earnings per share by reducing the number of shares outstanding.
The repurchase plan allows IGI to repurchase shares on the open market, through privately negotiated transactions, block trades, or other methods, depending on market conditions, business considerations, and legal requirements. The timing and amount of repurchases will be subject to various factors, including market dynamics and other conditions described in the Company's forward-looking statements.
IGI specializes in underwriting a variety of specialty lines, including energy, real estate, and various forms of liability coverage. Founded in 2001, the company operates in multiple international locations, including Bermuda, London and Dubai, and is known for its commitment to quality service. IGI has a rating of A (Excellent) with a stable outlook from AM Best and a rating of A- (Strong) with a stable outlook from S&P Global Ratings.
Expanding the stock repurchase program is a strategic financial decision, but it is important to note that the forward-looking statements made by the Company contain uncertainties. Investors should be aware that actual results may differ from expectations due to various risk factors, such as changes in market demand, competition, and global economic conditions, among others.
This announcement is based on a press release issued by International General Insurance Holdings Ltd. It does not include any form of endorsement or opinion about the company's strategies or financial prospects.
In other recent news, International General Insurance Holdings Ltd. (IGI) Remarkable steps. The company announced a strong start to 2024, with encouraging first-quarter financial results. These include a combined ratio in the 70s, a return on average equity of 27.6%, and a fundamental operating return on average equity of 29.2%.
Total assets grew by 2% to reach US$1.88 billion, and total shareholders' equity increased by 3% to reach US$567 million. This performance indicates strong growth prospects for IGI, as the company expects high-single-digit to low-double-digit growth rates for the full year.
In other recent developments, IGI's Board of Directors approved a 150% increase to its regular quarterly dividend to $0.025 per share. This decision confirms the company's commitment to providing shareholder value. The first dividend at the new rate will be paid to shareholders of record by the close of business on June 3, 2024.
IGI has also received positive coverage from analysts, with its reinsurance portfolio seeing 21% growth in the first quarter. However, the Company's forward-looking statements involve risks and uncertainties, including changes in market demand, global economic conditions, and competition.
These factors may affect future financial results. Despite these potential risks, the company's recent performance and strategic initiatives indicate promising prospects.
InvestingPro Insights
International General Insurance Holdings Ltd. showed (IGIC) recently reported strong financial performance, as evidenced by key metrics from InvestingPro. The company's market capitalization is US$620.73 million, reflecting its significant presence in the commercial insurance and reinsurance market. Furthermore, IGIC boasts a remarkably low price-to-earnings ratio of 5.18, suggesting that its stock may be undervalued relative to its near-term earnings growth potential.
Investors may find the company's revenue growth particularly encouraging; IGIC has generated a revenue increase of 13.57% over the past twelve months as of Q1 2024. This growth is complemented by a healthy gross profit margin of 46.02%, indicating efficient operations and strong pricing power in its niche markets. Furthermore, the company's dedication to generating shareholder returns is evident by its consistent dividend payments over the past five years and significant earnings growth of 150% in the same period.
Two noteworthy InvestingPro takeaways for IGIC include analysts' forecasts for sales growth in the current year and the company trading at low earnings multiples, which could attract value investors. These insights, along with the company's strategic decision to expand its share repurchase program, underscore IGIC's commitment to creating shareholder value.
For those looking to dive deeper into IGIC's financials and future prospects, InvestingPro offers additional tips and metrics. Readers can explore these ideas and consider using a special offer code ProNews24 For an additional 10% discount on your annual or biennial Pro and Pro+ subscription, which includes 8 additional InvestingPro tips for comprehensive analysis.
This article was created with the power of artificial intelligence and reviewed by an editor. For more information, see our terms and conditions.