International General Insurance Holdings Ltd. (IGIC): A Bull Case Theory

We came across a bullish thesis on International General Insurance Holdings Ltd. on X.com by Fierce Beast. In this article, we will summarize the bulls’ thesis on IGIC. International General Insurance Holdings Ltd. ‘s share was trading at $24.15 as of September 10th. IGIC’s trailing and forward P/E were 8.66 and 7.74 respectively according to Yahoo Finance.

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IGI Capital (IGIC) is attracting renewed investor interest following its recent dip, presenting a compelling opportunity for long-term shareholders. The company, which experienced a 1Q miss with declines in ROE and combined ratio, appears to be facing largely one-off issues, with management expecting a normalization by year-end. Historically, IGIC has delivered a tangible book value (TBV) CAGR in the high teens over the past decade, underscoring the company’s consistent performance and disciplined capital management.

Recent share repurchases and special dividend payouts further highlight management’s commitment to returning capital to shareholders, with potential for additional distributions in the future. IGIC’s specialization in the Middle East market provides a unique niche, supported by its low-float, small-cap structure, which, while limiting institutional participation, enhances its appeal for private investors. Unlike traditional reinsurers, which often trade at depressed price-to-book multiples due to catastrophic risk exposure, IGIC’s focus on specialty insurance—comprising roughly 80–85% of its portfolio—supports higher valuation potential.

At a current price-to-book ratio of 1.6x, IGIC appears undervalued relative to peers with similar ROE and growth profiles. Considering these factors, a fair value target of around $34 per share by year-end seems reasonable, with upside potential as the market recognizes the company’s operational resilience and niche specialization. Overall, IGIC presents a unique investment opportunity, combining a strong historical performance track record, disciplined capital returns, and a specialized underwriting model that supports both growth and attractive risk-adjusted returns.

Previously we covered a bullish thesis on International General Insurance Holdings Ltd. (IGIC) by Kyler Johnson in September 2024, which highlighted the company’s specialty insurance focus, disciplined underwriting, strong combined ratio, and long-term growth potential. The stock has appreciated approximately 32% since our coverage. The thesis still stands as IGIC maintains robust free cash flow and capital discipline. Fierce Beast shares a similar perspective but emphasizes 1Q operational issues, ROE and combined ratio normalization, and share repurchases, highlighting a near-term opportunity.

International General Insurance Holdings Ltd. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held IGIC at the end of the second quarter which was 7 in the previous quarter. While we acknowledge the risk and potential of IGIC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IGIC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.