International General Insurance : Solvency and Financial Condition Report 2025 (igi europe 2025ye sfcr)

Published: 2026-04-13 08:08:16 ET IGIC

Published on 04/13/2026 at 08:08 am EDT

Solvency and Financial Condition Report

International General Insurance Company (Europe) Ltd

31 December 2025

TABLE OF CONTENTS

Business 6

Underwriting Performance 9

Investment Performance 11

Performance of Other Activities 12

Any Other Information 12

General Information on the System of Governance 13

Fit and Proper Requirements 18

Risk Management System Including the Own Risk and Solvency Assessment 18

Internal Control System 22

Internal Audit Function 24

Actuarial Function 24

Outsourcing 25

Any Other Information 26

Underwriting Risk 27

Market Risk 31

Credit Risk 32

Liquidity Risk 34

Operational Risk 35

Other Material Risks 37

Other material information 39

Assets 42

Technical Provisions 44

Other Liabilities 54

Alternative methods for valuation 54

Other material information 54

Own Funds 55

Solvency Capital Requirement and Minimum Capital Requirement 56

Use of the duration based equity risk sub module in the SCR Calculation 59

Difference between the Standard Formula and any Internal Model used 60

Non-Compliance with the SCR and MCR 60

Other material information 60

Executive Summary

The EU-wide regulatory regime for insurance and reinsurance companies, known as Solvency II, came into force on 1 January 2016. Solvency II requires reporting and public disclosure of information, including the annual publication of the Solvency and Financ

year ended 31 December 2025.

performance, system of governance, risk profile, valuation for solvency purposes and capital management. This SFCR has been reviewed and approved by the Board of Directors.

Business and Performance

IGIE is a non-

using EU passporting rights under the Freedom of Services regime.

For the year ended 31 December 2025, IGIE recorded a loss after tax of US$2.4m (2024: profit after tax of US$2.9m). The result was primarily driven by a large claim notified during the first quarter, with a gross incurred value of US$22.6m. After reinsurance, the net incurred value was US$3.7m. The year was also impacted by an increased allocation of intra-group management service costs.

The insurance service result was adversely affected by movements in foreign exchange rates, primarily the weakening of the US dollar against the euro, which contributed to the net finance expense recorded by the Company. The movement in net expense from reinsurance contracts held reflects the quota share cession to International General Insurance Co. Ltd

incurred claims.

Notwithstanding these matters, IGIE delivered a stronger underlying performance compared to the prior year. The insurance service result improved to US$5.2m, up from US$1.4m in 2024. Throughout the year, the Company continued to operate in challenging market conditions, marked by heightened competition, while maintaining a selective underwriting approach to preserve technical margins and support long-term sustainability.

investment portfolio was composed of cash, term deposits, and short-term, well-rated fixed-income securities, generating an investment return of US$1.4m (2024: US$1.3m).

System of Governance

IGIE has implemented an effective system of corporate governance. As at 31 December 2025, the Board comprised one executive director, two non-executive directors and two independent non-executive directors. Each Board member has oversight responsibilities to ensure that key functions and critical business activities are carried out effectively and in a sound and prudent manner.

activities for the benefit of its shareholders and to balance the interests of its diverse stakeholders, including customers, employees, international suppliers and local communities.

The Company has implemented a comprehensive system of internal controls and risk management governance, to effectively monitor and manage risk exposures to reduce volatility and ensure adequate policyholder protection at all times.

The governance structure is based on well-defined lines of responsibility

Risk Profile

contagion, credit rating downgrade, reputational, ESG and other risks (including emerging risks) that arise in the ordinary course of business. These risks are assessed using a combination of qualitative risk and control assessments and quantitative measures (including the Solvency II Standard Formula), and are reported to management and the Board at least quarterly against established risk appetite and tolerance limits.

changes in its risk profile through its quarterly risk and capital reporting, with escalation to the Board where risk metrics approach or breach defined limits and where events or strategic developments could materially

Section C also

Valuation for Solvency Purposes

The assets and liabilities in the Solvency II balance sheet have been valued in compliance with the Solvency II Directive (2009/138/EC).

Section D provides details of the recognition and valuation principles applied, including the bases, methods and main assumptions used in the valuation of assets, technical provisions and other liabilities for each material asset/liability class. The section also provides an analysis of how the valuation of assets and liabilities under Solvency II differ from those applied under the International Financial Reporting Standards

Section D.2 also provides the value of technical provisions, including the amount of the best estimate and the risk margin. An analysis of the key areas of uncertainties associated with the value of technical provisions is also provided.

Capital Management

During the reporting period, IGIE used the

The

There is no adjustment made to the SCR to take into account the Loss Absorbing Capacity of Deferred Taxes

The

During Q1 2025, IGIE experienced a deterioration in its SCR ratio following the notification of a significant claim. To ensure that IGIE continued to operate above its internal risk appetite threshold of 175%, and to

ded a capital injection of US$5m during the

capital base, increased Tier 1 unrestricted Own Funds, and improved the SCR coverage ratio accordingly.

During 2025, the Company maintained a SCR ratio in excess of both the 100% Solvency II regulatory limit and the 150% MFSA ongoing authorisation condition. As a result of a US$10 million capital injection received

strengthened. Accordingly, there is no reasonably foreseeable risk of non-compliance over its business

ongoing support.

funds to meet the SCR, with an appropriate margin, and that sufficient liquidity is available for the payment of claims in order that the Company is able to meet its legal obligations as they fall due. Furthermore, IGIE benefits from a full Parental Guarantee which provides policyholders with protection beyond that provided by its own capital resources.

Business and Performance

Name and legal form of the undertaking

IGIE is a non-life insurance company incorporated in Malta and authorised by the Malta Financial Services

Development House, St. Anne Street, Floriana FRN 9010, Malta

Company Registration Number: C 106283

Directors

Andreas Loucaides (Chair of the Board, Non-executive Director) Keith Mallia-Milanes (Executive Director)

Clifford Murphy (Non-executive Director)

Paul Martin (Independent Non-executive Director)

Anna Marie Tabone (Independent Non-executive Director)

Insurance Supervisor

Malta Financial Services Authority, Triq l-Imdina, Zone 1

Central Business District, Birkirkara, CBD 1010, Malta

Tel: +356 2144 1155

https://www.mfsa.com.mt

External Auditor

PKF Assurance (Malta) Limited 15, Level 3,

Mannarino Road, Birkirkara BKR 9080, Malta

Tel: +356 2148 4373

https://pkfmalta.com/

Ownership and Shareholdings

IGI Group, a Nasdaq-listed company incorporated in Bermuda in 2019. The following shareholdings of more than 10% in the IGI Group are provided in the table below:

Shareholder

Holding

(Note 1)

Wasef Salim Jabsheh (Note 2)

33.9

Oman International Development and Investment Company SAOG (through its subsidiaries

Jabreen Capital and Ominvest International Holding Limited)

22.3

Note 1 - The % Holding consists of common shares only.

Note 2 - As of December 31, 2025

for which he has the right to vote, of which 88,410 vest on January 2, 2026, 45,141 vest on January 2, 2027 and 15,230 vest on January 2, 2028.

Corporate Structure

The full Group corporate structure as at 2025 year-end is detailed below:

-regulated holding company registered and which was founded in 2006. IGIH acted as a

holding company of the group until 2020 when it became a subsidiary of IGI Group.

IGI Bermuda is a Class 3B (re)insurer regulated by the Bermuda Monetary Authority

IGI Underwriting

International General Insurance Company -life insurance undertaking, based in London, and authorised by the Prudential Regulation Authority and regulated by the PRA and Financial Conduct Authority

SUL a specialty underwriting agency for writing marine liability and trade,

currently not transacting any business, however, it retains its FCA authorisation.

International General Insurance Co. Ltd. - is registered as a foreign offshore company of IGI Bermuda in Labuan in accordance with the Offshore Companies Act 1990. IGI Labuan is classified as a second-

acts as an offshore capitalised branch of IGI Bermuda. It is also licensed to issue Islamic law-compliant re-takaful policies. IGI Labuan is supported by a marketing office in Kuala Lumpur.

IGI Dubai

International General Insurance Co. Ltd.

IGI Nordic AS

IGI Services Ltd was established in the Cayman Islands in October 2016 and is engaged in the business of owning and chartering of aircraft. IGI Services Ltd is a wholly owned subsidiary of IGI Bermuda.

Specialty Malls Investments Co. is a limited liability company registered and incorporated in August 2004 under the Jordanian Companies Law No. (22) of 1997. Its office is located in Jordan and the main business objectives of the company are developing and leasing of real estate properties. Specialty Malls Investments Co. is a wholly owned subsidiary of IGI Bermuda.

Business Information and other events

Consistent with the IGI

structured approach to develop most of the business lines written by the Group within the EEA and it will do so prudently and with the appropriate underwriting teams with the necessary experience and skills in the sector.

The IGI Group has built high levels of experience and expertise in energy, property, marine, construction and engineering, political violence, general aviation, ports and terminals, contingency, professional lines, financial institutions and treaty reinsurance business. During 2025, IGIE continued focusing and building strategic relationships for the same classes of business in Europe and will continue to do so in the future.

Classes of Insurance Business:

Class 1 - Accident (I/R) Class 9 - Other damage to property (I/R)

Class 4 - Railway rolling stock (I/R) Class 11 - Aircraft liability (I/R)

Class 5 - Aircraft (I/R) Class 12 - Liability for ships (I/R)

Class 6 - Ships (I/R) Class 13 - General liability (I/R)

Class 7 - Goods in transit (I/R) Class 16 - Miscellaneous financial loss (I/R)

Class 8 - Fire and natural forces (I/R) Class 17 - Legal Expenses (I/R)

The Company was granted passporting rights under Freedom of Services to write all the above classes of insurance business in the following countries:

Austria

Finland

Latvia

Romania

Belgium

France

Liechtenstein

Slovakia

Bulgaria

Germany

Lithuania

Slovenia

Croatia

Greece

Luxembourg

Spain

Cyprus

Hungary

Netherlands

Sweden

Czech Republic

Iceland

Norway

Denmark

Ireland

Poland

Estonia

Italy

Portugal

With its focused strategy, the Company provides tailored insurance and reinsurance solutions via intermediaries to suit the particular needs of its clients, taking factors such as geographical location, risk accumulation, and cross class exposures into account.

This is backed by a deep and extensive knowledge across applicable classes of business and an extensive panel of high-quality reinsurance partners supporting IGI Group in offering meaningful capacity whilst containing downside risk.

IGI Bermuda provided the initial start-up capital of IGIE and continues to support the business including through the provision of a 75% intra-group quota share reinsurance

The IGI Group and IGIE with a stable outlook from A.M. Best Inc.

IFRS 17

The Company has applied the Premium Allocation Approach ( PAA ) for those insurance and reinsurance contracts with a coverage period of each contract in the group of one year or less or for those contracts whereby the recognition and measurement of insurance contracts under the PAA does not materially differ had those insurance contracts been recognized and measured under the general model. For those contracts which did not meet the PAA eligibility criteria, the Company measures those contracts under the General Measurement Model ( GMM ).

The Company has adopted IGI

The Company focuses on the profitability of the policies that it underwrites rather than on the volume of business, relying on a team of experienced underwriters with strong, long-standing relationships with brokers and reinsurers.

The underwriting performance of IGIE for the year ended 31 December 2025 and 2024 is provided below:

US$

2024

Insurance revenue

50,990

27,634

Insurance service expenses

(58,876)

(19,107)

Net income/ (expense) from reinsurance contracts held

13,127

(7,159)

Insurance service result

5,241

1,368

Finance income / (expenses) from insurance contracts issued

(12,032)

2,397

Finance income / (expenses) from reinsurance contracts held

2,202

194

Net insurance service result

(4,589)

3,959

Note: Values underlying the tables shown are held to the nearest US$1. When displayed and rounded to the nearest US$1,000 the row totals and column totals may differ from the sum of the rounded amounts.

The 2025 result was primarily affected by a significant first-quarter claim, with a gross incurred value of US$22.6m and a net value of US$3.7m after reinsurance. In addition, results were influenced by higher allocations of intra-group management service costs. The insurance service result was also adversely affected by the weakening of the US dollar against the euro, which contributed to the net finance expense reported by the Company.

The movement in the net expense from reinsurance contracts held takes into consideration the 75% quota share cession to IGI Bermuda.

Underwriting Result by material lines of business for 31 December 2025

US$

Energy

Property

Marine & Aviation

Professional & Financial Lines

Other

Total

Insurance revenue

7,151

10,964

10,828

22,047

50,990

Insurance service expenses

(25,914)

(8,473)

(8,641)

(15,848)

(58,876)

Net income / (expense) from reinsurance contracts held

9,620

4,287

(375)

(241)

(164)

13,127

Insurance service result

(9,143)

6,778

1,812

5,958

(164)

5,241

Finance income / (expenses) from insurance contracts issued

(1,300)

(2,567)

(2,354)

(5,810)

(1)

(12,032)

Finance income / expenses from reinsurance contracts held

355

1,750

2,202

Net insurance service result

(10,348)

4,566

(540)

148

1,585

(4,589)

Underwriting Result by material lines of business for 31 December 2024

US$

Energy

Property

Marine & Aviation

Professional & Financial Lines

Other

Total

Insurance revenue

4,031

4,477

8,230

10,896

27,634

Insurance service expenses

(5,394)

(3,030)

(4,832)

(5,851)

(19,107)

Net income / (expense) from reinsurance contracts held

(324)

(1,615)

(524)

(268)

(4,428)

(7,159)

Insurance service result

(1,687)

(168)

2,874

4,777

(4,428)

1,368

Finance income / (expenses) from insurance contracts issued

177

364

710

1,146

2,397

Finance income / expenses from reinsurance contracts held

(20)

(97)

308

194

Net insurance service result

(1,530)

3,586

5,924

(4,120)

3,959

Energy: Energy (Upstream, Downstream, Renewables)

Property & Contingency: Property, Construction and Engineering, Political Violence, Contingency, Inherent Defects Insurance (now discontinued)

Marine and Aviation: Ports and Terminals, Marine Liability, Marine Cargo, Marine Trades, General Aviation Professional & Financial Lines (non-US): Financial Institutions, Professional Indemnity, Directors and Officers, Legal Expenses and other casualty lines of business

Other: Reinsurance ceded on legacy business

Underwriting Result by material geographical areas

Information on the material geographical areas in which the Company carries out business is provided in the Appendices as part of S.04.05 template.

Investment Portfolio Composition

A summary of the Investment Portfolio by asset class as at 31 December 2025 is given below:

US$

Carrying Values

Composition %

Cash at Bank

7,076

19%

Term Deposits

3,200

Fixed Income Securities

27,326

73%

Total

37,602

100%

The IGIE Board has adopted an Investment Policy and Guidelines that is similar to that of IGI Group with a focus on Cash, Short Term Deposits and Fixed-Income Securities, allowing for a small holding of listed equities in future years.

The investment strategy is comprised of high-level objectives and prescribed investment guidelines governing target asset allocation by class. The actual asset allocation mix has adhered to these targets with only minor variations driven by broader changes to the macro-economic environment and liquidity requirements. The Company does not however actively change its investments in response to short-term factors such as increased volatility or changes in market sentiment.

The Investment team uses a panel of high-quality third-party custodians/brokers who also act as investment advisors and assist in implementing the

Investment Portfolio Performance

As at year-

term well-rated fixed-income securities, generating an investment return of US$1.4m (2024: US$1.3m).

Gains and losses recognised directly in equity

As at year-end 2025, the Company recognised a fair value gain on its debt instruments through OCI of US$0.5m (2024: loss of US$0.2m).

Information about any investments in securitisations

There were no investments in securitisations as at 31 December 2025.

There have been no other significant activities undertaken by IGIE other than its insurance related activities. There are no other material matters to the business or performance of IGIE.

Geopolitical risk continues to be a key area of uncertainty. Recent developments, including the sustained Russian invasion of Ukraine, ongoing instability across the Middle East and changes in U.S. trade and economic policy, may affect inflation, economic growth, global supply-chains and energy markets. These developments may have indirect impacts on insurance claims and investments with the potential for broader international spillovers affecting commodity prices, global trade flows and macro-financial conditions.

While IGIE currently has no material direct underwriting or investment exposures to these conflicts and political developments, the Company may be exposed to indirect impacts, including elevated financial market volatility, supply-chain pressures and operational dependencies. The Company continues to monitor developments closely and will respond as appropriate to manage any potential exposures.

Other material information

Effective 1 January 2025, the IGI Group became subject to group-wide supervision, with the Bermuda

ding consolidated regulatory reporting and disclosure obligations, and the calculation of group solvency in accordance with the Bermuda Solvency Capital

There is no further information that requires disclosure.

System of Governance

This section provides information regarding the system of governance, fit and proper requirements and assessment, remuneration policy and practices, risk management system, key functions and outsourcing policy.

the Board of Directors, Board and management committees and key functions.

Governance Structure Overview

IGIE has implemented an effective system of corporate governance that is commensurate with the nature, scale and complexity of

The Company has adopted the IGI Group Corporate Code of Business Conduct and Ethics applicable to all of its directors, officers and employees. The Code of Business Conduct and Ethics covers, among other things, conflicts of interest, company books and records, use of company property, payments of gifts, corporate opportunities, compliance, extension of credit to officers and directors, confidentiality and employee relations.

The Company has also adopted the IGI Group Financial Code of Ethics applicable to the Executive Chairman, President and Chief Executive Officer, Chief Financial Officer, Senior Vice President

The below outlines the board structure of IGIE:

As depicted in the chart above, as at 31 December 2025 the Board comprised one executive director, two non-executive directors and two independent non-executive directors. Each Board member has oversight responsibilities to help ensure that key functions and critical business activities are carried out effectively and in a sound and prudent manner.

activities for the benefit of its shareholders and to balance the interests of its diverse stakeholders, including customers, employees, international suppliers and local communities.

The Board is responsible for providing leadership, integrity and judgement in directing the activities of the Company and for setting the goals and strategies necessary to operate and to provide oversight for the implementation of those strategies carried out by the executive management. Potential conflicts of interest are discussed and disclosed at the start of every Board meeting.

The

the appropriate lines of reporting. IGIE is structured so as to achieve its objectives and to enable effective risk management and to carry out its activities in a manner proportional to its size and complexity.

Taking into account the nature, scale and complexity of the risk profile and business activities of IGIE, the system of governance is considered to be appropriate for the Company.

As depicted in the above chart, IGIE has established an Underwriting and Claims Committee. The terms of reference are approved by the Board. The roles and responsibilities of the Underwriting and Claims Committee are outlined below.

IGI

limits;

Main roles and responsibilities of key functions

IGIE has in place four key functions, being Risk Management, Compliance, Actuarial and Internal Audit, as required by the Solvency II Directive and Chapter 6 of the Insurance Rules issued by the MFSA.

The information below outlines the main roles and responsibilities of the four key functions:

Is responsible for:

profile, reputational and regulatory standing, or capital adequacy; and

Further details are provided in section B.3.

Is responsible for:

Further details are provided in section B.4.

The Internal Audit Function acts as the third line of defence. The function provides an independent and

governance and internal controls. This is achieved through the preparation and implementation of an annual internal audit plan that utilises risk analysis and ensures that there are sufficient checks and balances throughout the Company and its outsourced third-party service providers which are critical to the Co

Further details are provided in section B.5.

The main responsibilities of the Actuarial Function are:

Further details are provided in section B.6.

Material Changes During the Period

Following the resignation of Ruwan Perera on 11 March 2025, Subir Kumar was appointed as Chief Technology and Information Officer and Chief Information Security Officer effective 1 September 2025. During the transition period, the IT function was overseen by the Group Chief Operating Officer, Hatem Jabsheh.

Additionally, Ms. Anais Mekki resigned from her role as the approved person for the Compliance Function and subsequently, on 8 January 2025, Ms. Sara Sassone was approved by the MFSA as the person

Remuneration Policy and Practices

The remuneration policy and practices in respect of executives and employees are designed to compensate

financial strength and in a way that does not discriminate against anyone in accordance with the terms of the IGI Employee Diversity and Inclusion Policy.

The Company pays an employee a basic salary that is considered appropriate given the market rate for the

globally and conducts an analysis of country and local relevant benchmarking data to ensure the accuracy of both variable and fixed remuneration.

Executive directors are remunerated in accordance with their employment contracts issued and executed in their relevant entity country.

In addition to a fixed salary entitlement, IGI Group rewards employees with discretionary Short-Term

and do not constitute a contractual right. The STI bonus is bas

and the profitability of the Group. The STI remuneration provides incentives for prudent risk taking in the short term, long term, and for sound risk management.

Discretionary Long-Term Incentives ( LTI ) may also be awarded to Executive and Senior Management in the form of Restricted Share Units in IGI Holdings Ltd., in accordance with the IGI

Executive Directors and all employees are also eligible for Company pension contributions that are set according to local market practice and at a level that assists the Company in attracting and retaining high quality individuals.

ESPP ). The ESPPs are non-qualified plans that provide eligible employees of the Company and its designated affiliates with an opportunity to purchase ordinary shares at a discount through payroll deductions. Under the terms of the plans, for every share purchased by eligible employees, the Company will award the employee with a matching share (subject to vesting periods) on the date of purchase of the shares. This, in effect, allows eligible employees to purchase ordinary shares in the Company at a 50% discount.

Non-executive Board members are compensated via the terms of their respective Service Agreements or Terms of Appointment Letters.

Material Transactions during the reporting period

No other material transactions occurred during the reporting period.

The Company maintains a Fit and Proper Policy designed to ensure that Directors, persons appointed to carry out a senior management role or key function

The assessment includes an extensive range of background checks which include but are not limited to:

The fitness and properness of the respective persons are reviewed on an annual basis.

Risk Management System

IGIE closely monitors and manages risk exposures and the aggregate risk profile through a dedicated Risk function operating processes aimed at containing volatility, ensuring adequate policyholder protection at all times, and optimising risk / return profiles through the use of effective capital allocation.

Risk management system oversight is the responsibility of the Board of Directors

The governance structure includes well-defined lines of accountability for individuals, committees and boards

and Capital Management Framework. As with other business functions, the risk management function is subject to Internal Audit.

IGIE has implemented the IGI Group

The key objectives of the framework include:

The risk function provides detailed Risk and Capital reporting to the Board at least quarterly encompassing

In the event of an actual, projected or proposed material change in the risk profile, the function performs an analysis to understand the potential implications from a risk and capital perspective ensuring that the results of the self-assessment form an integral part of the management and strategic decision-making process.

In addition to this ongoing monitoring and reporting, the function provides regulatory reporting on an annual/triennial basis including the ORSA, SFCR and Regular Supervisory Report

On a quarterly basis, Risk Owners are required to formally reassess and reaffirm the full scope of risks and emerging risks, and associated controls, for which they are responsible through discussion with the Risk function. Any changes to existing items, including the addition of new risks etc. are considered during this discussion to ensure that all significant operational risks faced by the Company are well understood and monitored on a regular basis.

IGIE has embedded the Group-wide Risk and Control Self-

qualitative assessment on all key risks and controls is carried out on a quarterly basis. The assessments of risks and controls are performed through discussions with Risk and Control Owners and challenged by the Risk Management function.

All key risks are assigned inherent and residual probability and severity ratings, taking into consideration the controls in place and their effectiveness. Controls are rated as Fully Effective, Partially Effective or Not in Effect/Not Effective, based on supporting narrative provided by Control Owners.

The assessment of controls ensures that they remain effective and the level of residual risk remains within

their associated controls clearly and at a level that enables effective monitoring and audit, providing a comprehensive assessment of the control environment.

A quantitative assessment of risks is also carried out using the SII Standard Formula and internal capital tools to quantify the risks to which the Company is exposed and the capital to hold to meet those risk exposures.

The monitoring of all identified risks and controls

Monitoring of all key risks is carried out on at least a quarterly basis to ensure risks remain within the risk appetite and tolerance limits. This includes the monitoring of natural (e.g. Floods, Earthquake, Windstorm) and man-made (e.g. Fire, Terror) catastrophe risk exposures, quality of investments and their performance, security and credit ratings of counterparties, liquidity and currency mismatches between assets and liabilities, as well as operational risks, risk events and potential emerging risks.

Furthermore, the Risk function monitors the appropriateness of the control environment and the resolution of any identified deficiencies therein in the form of actions recorded on the risk management tool. Actions may also manifest from other sources in relation to the Risk and Capital Management Framework, such as from material changes in business strategy, high risk events, emerging risks, internal audit and board and committee meetings.

A Risk and Capital review report is circulated to the IGIE Board on a quarterly basis. The report provides

inherent or residual risk ratings, material control changes over the quarter, and the quantitative risk assessment results based on the SII Standard Formula calculation.

Any emerging risks and risk events identified during the period are also reported to the Board on a quarterly basis.

Furthermore, IGIE

Enterprise Risk Management Committee

( ERMC ) and the IGIE Board accordingly. As a result, risk metrics that are close to or exceed the approved risk appetite and/or tolerance limits are escalated to the IGIE Board for consideration. Any breaches in risk tolerance limits are discussed by the ERMC and the Board and any agreed remediation actions continue to be monitored until the risk metric falls back within the risk appetite and tolerance limit.

The Risk Appetite Frameworks ( RAFs ) are reviewed at least annually to ensure they remain consistent with the Company

regulatory expectations. Any risk appetite changes are subject to appropriate Board approval and are codified and reported fully in the quarterly Risk and Capital Reporting to the Board. Proposals to add / remove / amend tolerances may also be made at appropriate points in time through the quarterly cycle and considered by the Board at that time.

Furthermore, all underlying detail of control assessments and actions, including any challenge by the Risk function, granular control assessments and justification of action statuses is fully visible to the Internal Audit function.

The IGIE Exposure Management Summary also provides senior management and the IGIE Board with an overview of underwriting exposure accumulations across the multiple lines of business underwritten by the Company.

Implementation and integration of the Risk Management System in the organisational structure and decision-making process

The Boards and committees in turn are supported by the Risk, Actuarial, Compliance and Internal Audit functions consistent with the governance model operated across the IGI Group and its operating entities and recognised industry good practice.

The governance structure is based on well-defined lines of responsibility

individuals within business functions, committees, Board, Risk Management, Actuarial, Compliance and Internal Audit. Ownership and clear lines of accountability are defined for all risk tasks, and these are ultimately linked to individual objectives.

Individuals within business functions are responsible for identifying and effectively managing and monitoring risks within their respective business function. The governance framework then enables the Risk Management function to have independent oversight and challenge to the first line through review and ongoing discussions to ensure that risks are being adequately monitored and kept within the boundaries defined by IGI Group and the Company.

The Compliance function is responsible for the identification and assessment of compliance risks, as well as identifying any emerging compliance risks, such as new laws and regulatory information which may have an impact on the Company. At the third line of defence, the Internal Audit function, provides an objective and independent assurance on the effectiveness of the risk management and internal control system.

Furthermore, a good risk culture is a key element contributing to the effectiveness of the Risk and Capital Management Framework and the day-to-day risk management processes across all areas of the Company.

the Company, by promoting support and collaboration among employees for the benefit of stakeholders. IGI encourages the open reporting of risk events and near-misses and as a result has established a culture of continuous learning, improving processes and the control environment.

in a way that is proportionate and reflects the inter-relationship between IGIE, IGIUK and its parent IGI Bermuda.

IGIE performs a comprehensive ORSA at least annually. The ORSA is not a one-off exercise but a process linking business planning, ongoing risk assessments, and capital management, comprising both regular risk monitoring and forward-looking assessment. On a quarterly basis, the Risk function produces a detailed Risk

position, or risk appetite over the quarter. This quarterly monitoring of dynamic risk and capital elements ensures that emerging risks or shifts in the risk profile are promptly identified and managed within defined appetite. In parallel, the ORSA includes multi-year projections of IGIE

The combination of these elements addresses the full scope of the requirements of the ORSA process and is considered both proportionate and appropriate to the risk profile of IGIE.

The results of the ORSA, including SCR projections and stress and scenario test results, are fully integrated into IGIE

In line with Solvency II, on an annual basis the Company prepares an ORSA report documenting the ORSA process and its outcome, including the results of the assessment and the management actions taken as a result of the assessment.

Determination of Solvency Needs

At an aggregate level, the IGI Group targets its economic capital such that it remains sufficient to withstand a reasonably foreseeable shock or series of shocks whilst maintaining the

The resultant level of capital held at IGI Bermuda is therefore significantly higher than the Bermuda Solvency Capital Requirement (considered broadly equivalent to the Solvency II SCR).

IGIE calculates its overall solvency needs using the SII Standard Formula, which is used to quantify capital

he IGIE Board monitors SII Own Funds coverage against its target Solvency Ratio on a formal basis at least quarterly (including a full recalculation of the Standard Formula SCR) and at any other such times as appropriate in the event of a projected or actual material impairment in the level of Own Funds or a material change in the risk profile.

Additionally, for those risks which are not covered by the Standard Formula, the Company has in place a number of controls to mitigate such risks. As explained above, the Company monitors all risks on an ongoing basis in order to identify any changes which may possibly result in capital shortfalls and ensure adequate management of such risks as they develop/emerge.

Should the Company require additional capital due to unexpected changes in external or internal factors, IGIE has the ability to draw down a capital injection from the IGI Group, IGIE also enjoys the benefit of a

Description of the Internal Control Framework

The Company has established an Internal Control Framework which is directly linked to risk management and compliance. The framework has been established to ensure that the Company has an effective internal control system in place and that the control activities are commensurate to the risks arising from the

In addition, since IGI Group is listed on the Nasdaq Capital Markets, IGI Group and its subsidiaries are subject to Section 404 of the Sarbanes- SOX is a law that seeks, among other things, to:

Furthermore, SOX 404

The system of internal control follows the Committee Of Sponsoring Organizations of the Treadway

Risk assessment to identify, analyse and manage the relevant risks to the achievement of

Control activities which reflect policies and procedures to help ensure that management directives are carried out and any necessary actions are taken to address risks to the achievement of the

Compliance Function

The Compliance function is an independent and outsourced function and reports to the Board of Directors on at least a quarterly basis.

Compliance ensures that the business of the Company complies with all applicable regulatory requirements.

Among the responsibilities of the Compliance function is the crucial task of identifying and comprehensively understanding the legal, regulatory, and statutory requirements governing the company's operations. This includes staying abreast of any updates or changes in these regulations to ensure ongoing compliance.

Furthermore, the Compliance Function plays a pivotal role in establishing, implementing, and overseeing controls, policies, and procedures within the organization. These measures are designed to uphold regulatory standards and ensure that the company operates within the bounds of the law. Collaboration with various business units is essential in embedding these controls and policies throughout the organization, fostering a culture of compliance across all levels.

In addition to establishing controls, the Compliance Function is tasked with monitoring the firm's activities on a risk-based approach. This involves conducting regular assessments to identify potential compliance risks and taking appropriate action to mitigate them. Reporting these findings to the Board and senior management is essential for maintaining transparency and enabling informed decision-making regarding compliance matters.

As regulations and standards evolve, the Compliance Function serves as a trusted advisor to the Board and senior management, providing insights into impending regulatory changes and their potential impact on the company. This advisory role extends to assisting in the design and implementation of controls necessary to meet these evolving standards, ensuring the company remains compliant and adaptable in a dynamic regulatory environment.

Moreover, the Compliance Officer is responsible for developing and implementing the Compliance Policy and Plan, as well as the Compliance Monitoring Programme. These foundational documents serve as guiding frameworks for the company's compliance efforts and require annual approval from the Board to ensure alignment with strategic objectives and regulatory requirements.

The Compliance Function acts as a liaison with regulatory authorities, facilitating communication, reporting, and addressing any regulatory inquiries or inspections. Prompt notification of any breaches or noncompliance is imperative to maintain regulatory trust and integrity.

Lastly, the Compliance Function conducts regular reviews of products, procedures, and systems to assess their compliance effectiveness and identify areas for improvement. This ongoing evaluation is essential for ensuring continuous compliance and mitigating potential risks to the company's reputation and regulatory standing.

IGIE has outsourced its Internal Audit function to IGIU under the terms of an SLA between IGIU and IGIE. It carries out an independent review of the internal control and governance system reporting on the strengths and weaknesses of the system.

The objective of the function is to provide

To maintain its independence and objectivity, the Internal Audit function does not perform another key function and does not assume operational responsibility or authority over any of the activities audited. Consequently, the Internal Audit function does not implement controls, develop procedures, install systems, prepare records or engage in any other activity that may impair its judgement.

Internal Audit adopts a risk-based approach with higher risk areas being reviewed on at least an annual basis. The Head of Internal Audit reports to the

IGIE has outsourced its Actuarial Function to IGIUK under the terms of an SLA between IGIUK and IGIE. It supports the IGI Group and all its subsidiaries across all areas where actuarial support is typically required. The Actuarial team is split between London, UK (currently 16 employees including the Group Chief Actuary), Amman, Jordan (currently 2 employees) and Bermuda (currently 1 employee).

The function coordinates and oversees the calculation of the Solvency II and IFRS technical loss provisions for the Company and carries out quarterly reserving reviews. It works closely with the Underwriting, Claims, Finance and Risk Management teams to ensure a deep understanding of exposure and loss experience.

In addition to its core role in reserving, the Actuarial function assists in reinsurance purchases including programme design and the development of technical pricing models and tools across all lines of business.

The IGI Group Chief Actuary reports to the IGI Group CEO and IGIUK CEO and is a member of or attends:

There is potential for conflict of interest to affect the Actuarial Function, and this is dealt with through appropriate protocols and procedures and reporting line structure.

Relevant members are required to consider appropriate actuarial standards including peer review requirements. All actuaries within the function are members of professional organisations and subject to professionalism requirements and regulated by their Self-Regulati

To ensure that the Actuarial function maintains an appropriate level of independence the Group Chief Actuary has a direct reporting line to the IGIE Board, including Non-Executive Directors.

Outsourcing is the use of a third-party (intra-group or outside IGI Group) to perform a process, a service or an activity on a recurring or ongoing basis which would otherwise be undertaken by the Company. The third

IGIE seeks to outsource those activities where outsourcing provides access to either specialist expertise not available in-house or where outsourcing enables significant efficiency savings. IGIE will only consider outsourcing to those third parties and intra-

regulatory standards.

When outsourcing any critical/important or key functions, the Company remains responsible for discharging its obligations under the relevant regulatory requirements. Outsourcing of critical or important functions or activities is not undertaken in such a way that could lead to any of the following:

During 2025, the IGIE Board reviewed and approved the Group Outsourcing and Other Third-Party

this Group policy throughout the outsourcing lifecycle (from need initiation to contract establishment). Prior to outsourcing any critical function, the Company conducts a risk assessment and due diligence to confirm that it can maintain sufficient oversight and control over the proposed outsourcing arrangement.

The Company also ensures that it establishes appropriate contingency arrangements to allow business continuity in the event of a significant loss of services from the service provider. Considerations include a

significant loss of resources at the service provider, or financial failure of the service provider and unexpected termination of the arrangement. Third-party arrangements are categorised according to the materiality of their services to the Company. Material arrangements will undergo enhanced due diligence and monitoring, with key performance indicators ( KPIs ) established at the outset and regularly tracked during the outsourcing lifecycle.

The table below outlines the critical or important functions that the Company outsourced during the reporting period:

Critical or Important Function

Name of Provider

Jurisdiction

Internal Audit

IGIU

Amman, Jordan

Actuarial Function

IGIUK

London, UK

Compliance Function

Willis Towers Watson

Malta

Claims Management

IGIU Note 1Amman, Jordan

IGIUK Note 2London, UK

Finance Function (IFRS17)

Willis Towers Watson

Malta

Information Technology

IGIU

Amman, Jordan

Note 1

For each outsourced key function IGIE has designated Board members responsible for the oversight of these functions to provide appropriate challenge and oversight of the performance and results of the service providers and ensure that the functions are being carried out in an effective manner and in line with all Solvency II requirements.

The Company takes a risk-based approach to all these activities with service providers subject to defined contracts, service level agreements and ongoing performance management.

Assessment of adequacy of the system of governance

Through its ongoing assessment of the system of governance including the critical/important and key functions, the regular review of their outputs, and the annual Corporate Governance Assessment Review, the Board considers the appropriateness and adequacy of the system of governance in relation to the nature, scale and the complexity of the risks inherent in its business.

Other material information

There is no other material information regarding the system of governance that requires disclosure.

Risk Profile

as required by Article 295 of the Commission Delegated Regulation 2015/35. It outlines the

profile and risk exposures over the reporting period, and describes how these risks are identified, monitored

and

strategic, group contagion, credit rating downgrade, reputational, ESG and other risks (including emerging risks) that arise as a result of doing business. These risks are assessed using a combination of qualitative risk and control self-assessments and quantitative measures (including the Solvency II Standard Formula) and are reported to management and the Board at least quarterly against established risk appetite and tolerance limits.

Underwriting risk is a core intrinsic risk which arises from the Company s general insurance activities. It is associated with the risk of financial losses or adverse changes in the value of insurance liabilities due to variations in underwriting results from plan.

Risk Exposure

The most material elements of underwriting risk may result from inadequate pricing and reserving assumptions due to internal or external factors including inadequate reinsurance protection, underwriting breaches or large natural or man-made catastrophe claims, including in respect of Political Violence and Contingency classes of business.

Reserve risk is defined as the risk that technical provisions may be inadequate, by line of business or in aggregate. To recognise liabilities for unpaid losses and loss adjustment expenses, whether reported or not, the Company establishes reserves representing estimates of future claim payments and related costs arising from insured events that have occurred. These estimates are inherently subjective and based on actuarial judgments, and may change as claims develop, new information becomes available, coverage positions are clarified, or economic conditions evolve.

The timing and amount of claim settlements and reinsurance recoveries may differ from the assumptions used in establishing reserves. Adverse development or delays in settlement could require reserve strengthening or improvements, which would reduce or increase profitability.

The Company has a low appetite for loss of earnings arising from catastrophe losses or exposures and looks to mitigate downside losses to a reasonable level expressed as a percentage of capital for both a single occurrence and aggregate year basis through outwards reinsurance coverage. Furthermore, IGIE uses the services of IGI Group which has a dedicated catastrophe and exposure management team responsible for continually developing and enhancing the reporting, analysis and methodology underpinning the aggregation systems upon which it relies.

The team has extensive risk management, underwriting, actuarial and data management skills and experience and works closely with risk management, actuaries, proprietary modelling entities and other related entities as required.

To manage and monitor the natural (including climate-related risk) catastrophe exposures, the Company uses a range of approaches incorporating a combination of both stochastic probabilistic loss modelling and deterministic event sets to measure and quantify exposures.

For non-natural exposures where stochastic modelling capabilities are not available, and for natural perils / zones where models are either not available or not robust, the Company uses several alternative deterministic or Probable Maximum L

scenarios.

In addition, the Company produces actual historical loss scenarios that have resulted in large industry wide insured losses along with cloned events to produce a deviation around these scenarios.

Furthermore, as an additional critical part of the underwriting and portfolio management process of the Political Violence class of business, it is imperative that accurate up-to-date exposure data is available. The Company employs the Sequel Impact tool for aggregating terrorism exposures on the basis of individually geocoded risk exposures.

Cyber underwriting risk is defined as the set of prudential risks emanating from underwriting insurance contracts that are exposed to cyber-related losses resulting from malicious acts (e.g. cyber-attack, infection of an IT system with malicious code) and non-malicious acts (e.g. loss of data, accidental acts or omissions) involving both tangible and intangible assets.

IGIE chooses not to write stand-alone Cyber insurance and hence its affirmative exposures are limited. While the Company aims to exclude cyber exposure where possible, it may still be exposed to silent (non-affirmative) cyber underwriting risk exposure.

To ensure cyber coverage clarity and reduce silent cyber exposures underwriters make use of the cyber clauses released by UK insurance industry associations

to fully exclude or substantially limit potential coverage for cyber-related claims. Furthermore, where policies include an element of exclusion with writebacks or limited exclusions, these are covered by the outwards reinsurance programme.

Risk Concentration

IGIE writes a diversified book of business across the EEA and through different classes of business. The Company seeks to manage its exposure to insurance and reinsurance losses through a number of loss limitation methods, including internal risk management procedures, writing business on an excess of loss

occurrence limitations for each event, employing coverage restrictions and following prudent underwriting guidelines for each programme written.

In relation to catastrophe risk, the Company monitors and controls the accumulation of risk for a number of realistic disaster scenario events. There are specific scenarios for natural, man-made and economic disasters, and for different business lines.

The following table details the most material IGIE risk concentrations in respect of Underwriting risk as reported to the IGIE Board meeting for the Q4 2025 period. The amounts are reported net of all reinsurance and allowing for reinstatement premiums where relevant. The % Own Funds column demonstrates the impact of each scenario in terms of its potential to deplete available Own Funds at Q4 2025.

Max Exposure

US$m

% of Own

Funds Note 1

Italy

0.4

EEA

0.9

EEA

1.0

EEA

1.3

Aukra - Norway

2.9

11%

Line of Business Basis

All Nat Cat Exposed Risks

Political Violence

All Natural Perils

(1 in 100)

All Natural Perils

(1 in 250)

All Natural Perils

Terrorism

SRCC Note 4- Largest City Exposures

Greece - Alimos

1.3 5%

War

Greece

0.7 3%

Casualty &

Professional Lines

Deterministic (2 max lines)

5.5

21%

Financial Institutions

Deterministic (2 max lines)

4.4

17%

General Aviation Note 5

Deterministic (largest 2 combined Hull / Liability)

5.1

19%

Note 1: Single Occurrence Event Risk Appetite: Green <15%, Amber 15% - 30%, Red >30%(modelled loss as % of Own Funds). Aggregate Occurrence Event Risk Appetite: Green <20%, Amber 20% - 30%, Red >30%(modelled loss as % of Own Funds).

Note 2: AEP (Aggregate Exceedance Probability)

Note 3: OEP (Occurrence Exceedance Probability (OEP)

Note 4: SRCC refers to Strikes, Riots and Civil Commotion and is based on a deterministic scenario resulting in the loss amounting to 20% of the total insured value of all exposures in a given major city.

Note 5: This is a somewhat theoretical and extreme return period scenario as it requires the two largest combined Hull/Liability exposures in our worldwide portfolio colliding with each other resulting in a total loss.

IGIE

showing the aggregate level of catastrophe risk at a 1 in 100-year return period, 1 in 250-year return period and at a 1 in 500-year return period for worldwide regions. In addition, IGIE monitors the Worldwide ANP 1 in 250-year return period

00) accounted for

5% of Own Funds at year-

Scenario (Political Violence Terrorism - 250 Meter Bomb Blast) would amount to 11% of available Solvency II Own Funds and would fall within the headroom held.

Risk Mitigation

The primary tools for managing Underwriting risk include:

The Company employs an extensive reinsurance programme designed to contain underwriting risk within acceptable levels.

The external reinsurance programme is designed and purchased at the IGI Bermuda level to leverage the purchasing power of the IGI Group and to provide protection to all IGI Group insurance risk taking entities and with full oversight from IGIE. It encompasses:

The effectiveness of these arrangements is monitored on a current and retrospective basis through the reserving process, where their impact on mitigating the gross risk and potential counterparty default risk is explicitly considered.

Prospectively, the risk / return profile and overall adequacy of the reinsurance programme are evaluated during the business planning and reinsurance placement process using internal and external deterministic and stochastic analysis, in collaboration with the Actuarial function to appropriately parameterise loss distributions.

The impact of reinsurance recoveries, including the associated counterparty default risk, is explicitly reflected

The following specific risks relating to the programme are monitored on an ongoing basis to ensure continued alignment with the Risk Appetite Framework and the capital assumptions used in the SCR calculation:

Stress testing and sensitivity analysis

See section C.7 for information on stress testing and sensitivity analysis for all the risk categories.

Market risk is defined as the risk of adverse changes in the value of assets, liabilities, and financial instruments arising from movements in market prices, including interest rates, equity prices, credit spreads and foreign exchange rates. This may affect

Risk Exposure

well-rated fixed-income securities (72.7%).

Risk Concentration

asset portfolio at 31 December 2025 exposed IGIE to some concentration of cash deposits held with an A rated bank. While this is not necessarily of concern, the Company regularly monitors economic conditions and the bank s financial condition and credit ratings to ensure it is aware of any material threats or any possible adverse events in a timely manner.

The Company has no other material risk concentrations.

Prudent Person Principle

The Company has established investment guidelines approved by the Board for the purpose of effectively

manner to cover the Minimum Capital Requirement and the Solvency Capital Requirement in accordance with the Prudent Person Principle, as laid down in Article 132 of the Solvency II Directive.

The guidelines enable the Company to maintain a highly liquid investment portfolio while ensuring the security, quality, profitability and sustainability of the investment portfolio. During 2025, IGIE held a high proportion of its investments in well-rated fixed-income securities across different sectors, while still

Furthermore, the Company may only assume investment risks that it is able to identify, measure, respond to, monitor, control, and report on while taking into consideration the capital requirements and adequacy, liquidity requirements, the financial market environment, and policyholder obligations.

investment including risk tolerances for counterparty quality, concentration, and asset types. The allocation limits are set to ensure the risk is maintained within the risk tolerance levels and that the portfolio meets appropriate regulatory requirements. These are updated at least annually and at other such times as required to adapt to the changing economic, business and investment market conditions.

Risk Mitigation

The Company has a relatively low appetite for market risk and asset-liability mismatch and therefore seeks to maintain its investments in line with the conservative internal investment guidelines, recognising that the

The primary tools for managing Market risk include, but are not limited to:

Stress testing and sensitivity analysis

See section C.7 for information on stress testing and sensitivity analysis for all the risk categories.

Credit risk is defined as the risk of financial loss arising from the failure of a counterparty to meet its financial obligation to the Company in a timely manner. The Company is exposed to the risk of counterparty default in respect of premiums receivable, reinsurance recoverables and its investment holdings and cash balances.

The potential impact of such counterparty default is explicitly captured in the Standard Formula SCR calculation.

Risk Exposure

Credit risk is split into the following sub-categories including:

its reinsurance obligations;

At year- ance counterparties and

bank deposits, which are both classified as Type 1 in the Standard Formula SCR. The Company is exposed to reinsurer counterparty risk since it employs an outwards reinsurance programme in addition to the intra-group quota share arrangement in place between the Company and IGI Bermuda. The Company is also exposed to counterparty default risk as a result of the amount of cash held at banks.

Counterparty default risk is considered non-core in that it is not something where we seek to create a return It arises as a consequence of the use of reinsurance to mitigate underwriting risk, the management of

course of business.

Risk Concentration

The Company is exposed to concentrations of credit risk in respect of the intra-group reinsurance arrangement with its parent. In this respect, the Board closely monitors the financial and solvency position of IGI Bermuda on a quarterly basis.

During the reporting period, IGIE was also exposed to Credit risk concentration in respect of a significant amount of cash holdings with an

Risk Mitigation

The Company has a low appetite for Credit risk in including material levels of bad debt arising from intermediaries, reinsurers and other third parties.

The primary tools for managing Credit risk include:

- -tail classes, and at least an

- classes at the time of placement. Counterparties rated below these thresholds may only be used subject to the approval of the Reinsurance Committee;

and guidelines to ensure a better diversification of its investment portfolio.

Stress testing and sensitivity analysis

See section C.7 for information on stress testing and sensitivity analysis for all the risk categories.

Liquidity risk is defined as the risk that the Company will not be able to meet its commitments associated with insurance contracts and financial liabilities as they fall due.

Risk Exposure

The Company considers liquidity risk both in terms of the risk of having insufficient liquid financial resources to satisfy policyholder liabilities and maintaining financial flexibility in the event of a stress event.

Liquidity risk includes the following:

Risk Concentration

There were no material liquidity risk concentrations as at 31 December 2025.

Risk Mitigation

The Company maintains a low appetite for liquidity risk. Liquidity risk is primarily mitigated through conservative investment strategy and guidelines designed to ensure the availability of high quality liquid assets at all times. The investment guidelines require the portfolio to be structures so that it can comfortably meet a combination of significant reserve payouts and a gross underwriting stress loss, even under adverse conditions.

As at year- -term

well-rated fixed-income securities. All of these instruments are considered readily realisable with minimal price volatility, thereby supporting the Com

Additionally, liquidity risk is monitored on a quarterly basis within the Risk Appetite Framework, ensuring continuous oversight and early identification of any emerging vulnerabilities.

IGIE also benefits from a full Parental Guarantee, which provides an additional layer of policyholder protection

Expected Profit in Future Premium

The gross

EPIFP represents the profits that are expected to materialise from existing (in-force) insurance and reinsurance contracts that are to be received in the future, but that have not yet been received. Any premiums already received by IGIE are not included in the EPIFP. Net of all reinsurance this amount is US$428k.

Stress testing and Sensitivity analysis

See section C.7 for information on stress testing and sensitivity analysis for all the risk categories.

Operational risk refers to the risk of losses resulting from inadequate or failed internal processes, people, systems, or from external events. Operational risk events may impact the Company in terms of financial loss, reputational damage, regulatory sanction, inefficiency or opportunity loss.

Risk Exposure

The Company is exposed to Operational risks which may crystallise either independently of, or be correlated to the intrinsic

remain a key risk to IGI which has been escalated as a result of technological advancements and geopolitical tensions.

reporting as of 31 December 2025, based upon criteria set forth in Internal Control

An allowance for the potential capital impact of Operational risks is made under the SII Standard Formula.

Operational risk is monitored via the risks and controls register that articulates the material sources of potential risks and failures in the key controls in place to manage them.

Risk Concentration

The

services to policyholders.

Risk Mitigation

The control and risk mitigation approach includes:

During 2025, the Company completed an Internal Audit review of its readiness for the Digital Operational

On a quarterly basis and/or following an operational loss event materialising, the Risk function meets Risk and Control Owners to formally discuss and reassess/reaffirm the risk ratings and control effectiveness ratings for which they are responsible. Control Owners are required to assess whether the controls in place are still operating as intended and whether they will continue to operate effectively in the future.

The risk and control assessment enables the Risk function and the Board to identify the top risks of the Company and understand which risks are being effectively mitigated and controlled and those which are less effective and to focus on and allocate resources to those areas of risk with higher residual risk exposures.

Stress testing and Sensitivity analysis

See section C.7 for information on stress testing and sensitivity analysis for all the risk categories.

In addition to the above risks that have the potential to result in capital depletion, the Company also considers Strategic risk, Group contagion risk, Group rating downgrade risk, Reputational risk and ESG risk to be relevant.

The risks are managed through the strategic and business planning / performance monitoring processes to ensure that changes in the economic and market environment are factored into the long-term and tactical plans for the Company.

Strategic risk

The Company defines strategic risk as the risk of adverse impact on shareholder value, or income and capital arising from adverse business decisions, poor execution or failure to respond appropriately to market and industry changes. This may be caused by failure to:

This is mitigated through detailed strategic and business plans which undergo stress and scenario testing and reverse stress testing annually. Risk assessments and stress and scenario testing, are also carried out prior to any key changes in the Company to ensure that the Company can remain within its risk appetite as a result of any strategic changes.

Group Contagion risk

The Company defines Group Contagion risk as the risk that adverse events, financial stress, operational disruption, or reputational damage affecting one or more business units or entities damage the solvency, liquidity, business continuity or reputation of the Company.

IGIE is exposed to contagion risk due to the interconnected nature of the IGI Group and its entities, both from an operational and financial perspective. IGIE relies on the wider IGI Group for the provision of some functions. Consequently, the Company may be exposed to risks stemming from intra-group outsourcing arrangements, particularly where these services are not carried out in accordance with the service level

Contagion risks may also arise from strategic or operational decisions taken by the IGI Group or other Group entities which may compromise the IGI

Group Rating Downgrade Risk

IGIE is exposed to the risk that a downgrade in the credit rating of the IGI Group could adversely affect the

The IGI Group currently holds

- A downgrade in either of these ratings could negatively impact the IGI Group and IGIE

and renew existing insurance and reinsurance policies and agreements. Additionally, a downgrade could trigger contractual provisions requiring IGI to establish trusts, post letters of credit, or return unexpired premiums, potentially leading to a material loss of business.

IGI Group provides A.M. Best and S&P with detailed balance sheet, risk profile, and business plan data at least annually, which is used in their rating assessments. The Group also participates in annual meetings with rating analysts to discuss financial performance, strategic initiatives, and the risk management framework. IGI actively monitors its S&P capital position on a quarterly basis to ensure an adequate economic

e Board to ensure full

Reputational risk

Reputational risk is defined as the risk that adverse events or circumstances negatively affect the reputation of IGI Group or its operating entities (including IGIE) with its rating agencies, regulators, policyholders, intermediaries and existing shareholders or prospective investors, which may cause an unexpected decline

credit rating. This may be caused due to failure to:

Reputational risk may also be caused by the crystallisation of other risks including legal risks, regulatory and compliance risks, strategic risks and information security risks (e.g. a data breach).

The Company defines ESG risk as the risk of environmental, social, or governance events, or conditions which, if they occur, could cause an actual or a potential material negative impact on the value of assets; liabilities; financial results; or reputation of the entity.

ESG risks could arise internally within a particular department (including outsourced service providers) or externally, impacting the reputation and/or financial position of the Company. ESG risks that could negatively affect the Company might include the following:

weaknesses or any unethical or wrongdoing by the company (including outsourced third-party service providers).

IGIE includes the consideration of ESG risks alongside other risk factors in its strategic decision making, including but not limited to underwriting, investments, and operational practices.

During 2025

employee wellbeing, human rights and fair labour practices, ethical business practices and integrity, ESG-related risks and other ESG matters.

IGI also continued to progress the actions arising from the group-wide double materiality assessment finalised in 2025. The outcomes of this assessment continue to guide our ESG strategy and sustainability

established individual risk appetite statements and tolerance limits for ESG risks to further strengthen the alignment of ESG considerations within the Risk and Capital Management Framework.

Risk mitigation

To mitigate the above risks IGIE has implemented a number of controls, which are recorded in the risks and controls register and are monitored and assessed on a quarterly basis.

Stress Testing and Sensitivity Analysis

IGIE monitors and reports quarterly on a range of individual underwriting stress scenarios as defined within the Standard Formula SCR calculation and a full set of PMLs and RDSs are reported through the quarterly Risk and Capital Review Board reporting and accompanying Executive Exposure Summary.

IGIE conducts specific stress and scenario testing on a regular basis to assess the resilience of its business plan and to implement informed decision making. In the most recent round of stress testing and scenario analysis, the following scenario tests were considered:

IGIE also applies reverse stress testing on a periodic basis in support of its planning and as an integral part of the ORSA process including reporting the conclusions to Boards and regulators.

The creation of reverse stress tests at a level that are sufficient to exhaust regulatory capital at IGIE may result in somewhat implausible scenarios at significant extreme return periods however reverse stress testing can add greater value through considering those elements that are not readily quantifiable in capital terms

including where they refer more to loss of opportunity rather than pure balance sheet impact. In addition, were such scenarios to manifest, IGIE would utilise the Parental Guarantee.

In relation to operational risks, a qualitative approach to stress testing and scenario analysis is carried out,

model to become unviable. IGIE has established the following situations, each of which individually may render the business model unviable or significantly impaired:

Scenario

Description

Liquidity shortfall

IGIE is unable to make available sufficient resources to pay its financial

obligations as they fall due.

Capital shortfall

IGI Group is unable to maintain capital in excess of rating agency and /

or regulatory requirements.

Loss of license to operate

undertaking regulated activities.

Withdrawal of reinsurer support

Reinsurance partners limit / withdraw support or offer terms that are not

commercially viable.

Loss of rating / downgrade

One or both of S&P and A.M. Best put the IGI Group, and consequently

IGIE on negative outlook or downgrade current ratings.

Failure to run operations / exposure to IGI Group systems

IGIE is unable to process business over a prolonged period due to governance failure, loss of people/teams, poor risk culture, or rogue

underwriter.

Emerging Risks

IGI defines Emerging Risks as new, developing or changing risks that are not yet fully understood and for which there is a high degree of uncertainty around their likelihood, velocity and potential impact. In March 2026, IGI formalised a dedicated Emerging Risk Working Group to strengthen horizon-scanning and provide coordinated oversight of new and developing risks.

An Emerging risk register is maintained by the Risk Management function. Additionally, emerging or crystallising risks are reported through as a standing item in quarterly Risk Management report to the Board. In the event of a new or developing Emerging Risk being considered as representing a material risk, the Risk Management function will escalate as appropriate in order that appropriate mitigation can be implemented.

The following provides a summary of the key emerging risks identified and monitored during 2025 and into early 2026:

Ongoing and rapidly intensifying geopolitical tensions which were most recently heightened by the joint U.S.

monitor these developments to assess implications for underwriting and claims, reinsurance availability, investments and operational resilience across IGI.

Social Inflation is concerned with the rising costs of insurance claims. Those rising costs are being fuelled by trends in society like significantly increased jury awards against corporate policyholders.

Disclaimer

International General Insurance Holdings Ltd. published this content on April 13, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 13, 2026 at 12:07 UTC.