Bermuda-based insurers and reinsurance companies International General Insurance Holdings Ltd., which went public through a specialty company transaction last year, will reduce its reported profit for 2020 by $ 4.4 million due to changes in accounting guidance for SPAC, the company said. Friday.
IGI in March reported a profit of $ 31.6 million for 2020.
The conversion was made "as a result of further consideration of a statement from the Securities and Exchange Commission on April 12, 2021 regarding accounting treatment for warrant instruments issued by (SPAC) ", said an IGI statement.
SPAC companies issue public warrants to third-party investors to increase the potential return during an IPO.
The change will also increase the company's total liabilities by $ 1
In August, IGI reclassified its private warrants as a derivative liability instead of equity. "After further analysis and discussion with SEC staff, IGI has decided that the public warrants should also be recorded as a derivative liability," said IGI.
IGI was established in 2001 and is headquartered in Amman, Jordan. The company listed on the Nasdaq Stock Exchange reported gross premiums of $ 467.3 million by 2020.