IGI decreases net profit as it restates 2020 and 2021 financial statements
International General Insurance Holdings (IGI) has said it will decrease its net profit, increase its total liabilities and file a restated consolidated financial statement for the year ended December 31, 2020.
The move is in response to a statement issued by the US Securities and Exchange Commission (SEC) with respect to the accounting treatment for warrant instruments issued by Special Purpose Acquisition Companies (SPACs).
The impact of the restatement on the consolidated financial statements will be a decrease to net profit of $4.4 million for 2020, an increase in total liabilities of $13.6 million as of December 31, 2020, and a corresponding decrease to total equity of $13.6 million as of December 31, 2020.
The restatement of the consolidated financial statements had no impact on the company’s liquidity, cash or cash equivalents, or cash flows from operating, investing, and financing activities, IGI said.
IGI has 12.75 million public warrants and 4.5 million private warrants outstanding. No Warrants have been exercised or redeemed since originally issued.
Wasef Jabsheh (pictured), chairman and chief executive officer of IGI, said: “ IGI is one of several hundred U.S. public companies to restate or revise their financial statements as a result of the SEC’s Staff Statement on warrant accounting for SPACs.
“This restatement does not impact the financial strength of IGI. We do not anticipate the restatement to impact our previously communicated core operating income and core operating earnings per share. We continue to remain confident in the positive momentum IGI has achieved since we became a public company in 2020.”
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