“Designed to provide the highest degree of safety, security, and assurance of timely payment.”
Investors Guaranty Insurance, Ltd. (“IGI”) is a limited liability insurance company incorporated and continuously operating in Bermuda since 1998. IGI is a general lines insurer and reinsurer. IGI is subject to the IGF Act and is, by law, a wholly-owned subsidiary of IGF.
- A principal source of funding for IGI is through its issuance of Risk-Linked Securities™ on a transaction specific basis. These instruments are primarily for purchase by Investors Guaranty Assurance, Ltd., IGX investment facilities, and third-party institutional investors.
- IGI does not manage assets for any party other than itself. Proceeds from the issuance of Risk- Linked Securities™ and other financial instruments are invested in its applicable government securities portfolios primarily supporting payment of claims and reserves on insurance and reinsurance policies. IGI’s expectation is to actively manage its assets and liabilities, premiums and loss reserves to produce positive underwriting and investment results, i.e. a return to specific classes of preferred equity holders, including IGF. IGI’s capital and surplus is allocated among its common (by law, only IGF) and preferred equity holders.
- IGI’s insurance underwriting and asset and liability management are the responsibility of the management team.
- IGI operates its insurance activities in accordance with the strict provisions of the IGF Act, including the maintenance of its statutory reserved assets with government approved custodians. Its financial statements are reported under Bermuda statutory accounting to the Bermuda Monetary Authority, and it operates its statutory reserve structure consistent with Canadian GAAP. This reporting methodology results in the following:
- IGI may only issue insurance contracts with a stated maximum claims payment and must, by law, maintain sufficient assets to fully pay the maximum of its policy obligations. IGI satisfies this legal requirement by maintaining portfolios of government obligations matched to currency and timing of payment to assure its ability to pay all claims payments; and
- Where an obligation cannot be defined currently, but may be determined in the future, IGI establishes a reserve from which to increase its government securities portfolio as applicable. IGI’s portfolios of government securities must by law, always be sufficient to timely pay all claims payments on all policies issued.