HAMILTON, Bermuda - International General Insurance Holdings Ltd. (NASDAQ: IGIC), a global commercial insurer 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 repurchase program of 5 million shares, which was unveiled in May 2022.
As of Monday, the company had 475,203 shares remaining under the original authorization. With the new increase, IGI now has authorization to repurchase a total of 2,975,203 common shares. Share repurchases are a way for companies to return value to shareholders, and they can potentially improve earnings per share by reducing the number of shares outstanding.
The repurchase plan allows IGI to buy back shares from the open market, through privately negotiated transactions, block trades, or other methods, depending on market conditions, business considerations, and legal requirements. The timing and volume of repurchases will be subject to various factors, including market dynamics and other conditions outlined under the company's forward-looking statements.
IGI specializes in underwriting a diverse portfolio of specialty lines, including energy, property, and various forms of liability coverage. Established in 2001, the company operates out of multiple international locations, including Bermuda, London, and Dubai, and is known for its commitment to service quality. IGI holds an A (Excellent) rating with a stable outlook from AM Best and an A- (Strong) rating with a stable outlook from S&P Global Ratings.
The expansion of the share repurchase program is a strategic financial decision, but it's important to note that forward-looking statements provided 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 statement from International General Insurance Holdings Ltd. and does not include any form of endorsement or opinion on the company's strategies or financial prospects.
In other recent news, International General Insurance Holdings Ltd. (IGI) has been making noteworthy strides. The company has reported a robust 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 core operating return on average equity of 29.2%.
Total assets have grown by 2% to $1.88 billion, and total equity has risen by 3% to $567 million. This performance indicates strong growth prospects for IGI, with the company expecting 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 in its regular quarterly dividend to $0.025 per share. This decision underscores the company's commitment to delivering shareholder value. The first dividend at the new rate will be paid to shareholders on record by the close of business on June 3, 2024.
IGI has also been the recipient of positive analyst coverage, with its reinsurance portfolio seeing a growth of 21% in the first quarter. Still, the company's forward-looking statements involve risks and uncertainties, including changes in market demand, global economic conditions, and competition.
These factors could impact future financial results. Despite these potential risks, the company's recent performance and strategic initiatives suggest a promising outlook.
InvestingPro Insights
International General Insurance Holdings Ltd. (IGIC) has recently demonstrated a robust financial performance, as indicated by key metrics from InvestingPro. The company's market capitalization stands at an impressive $620.73 million, reflecting its substantial presence in the commercial insurance and reinsurance market. Moreover, IGIC boasts a notably low price-to-earnings (P/E) ratio of 5.18, suggesting that its shares might be undervalued relative to its near-term earnings growth potential.
Investors might find the company's revenue growth particularly encouraging; IGIC has achieved a 13.57% increase in revenue over the last 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. Moreover, the company's dedication to shareholder returns is evident through its consistent dividend payments over the past five years and a substantial dividend growth of 150% in the same period.
Two noteworthy InvestingPro Tips for IGIC include the analysts' anticipation of sales growth in the current year and the company's trading at a low earnings multiple, which may appeal to value-oriented 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 delve deeper into IGIC's financials and future prospects, InvestingPro offers additional tips and metrics. Readers can explore these insights and consider utilizing the special offer code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes 8 more InvestingPro Tips for a comprehensive analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.