IGI net income drops on rise in short-tail losses
International General Insurance's net income dropped 19% to $32.8 million in the second quarter as its underwriting income due to losses in its short-tail property and energy books.
For the first six months of the year, the Bermuda-based company's profit dropped 4.9% from $74.4 million in the first half of 2023 to $70.7 million.
Gross written premiums increased from $199.6 million to $205.6 million but underwriting income declined to $45.3 million from $5.2 million. The increase was driven by growth in the reinsurance and short-tail segments, the company said.
IGI's combined ratio worsened to 81.2% from 73.5% in the same period in 2023.
“We had another strong quarter resulting in an excellent first half of 2024," said IGI president and chief executive officer Waleed Jabsheh. "In spite of a more active loss environment during the second quarter, most notably in our property and offshore energy books, we posted healthy underwriting results, highlighted by combined ratios of 81.2% and 77.7% for the second quarter and first half of 2024, respectively - both well below our long-term averages.
“Market conditions continue to be mixed with opportunities for growth in certain segments relatively harder to come by. This is exactly the type of environment where risk selection and discipline are critical and where we can continue to demonstrate the value of our underwriting strategy and the benefits of our growing and diversified portfolio.
“We continue to deliver strong ROEs and generate steady growth in book value per share through our underwriting and investment results, as well as through our active capital management, underscoring our commitment to generating long-term shareholder value. Consistent and sustainable value creation is central to everything we do at IGI.”
Return on annualised average equity was 22.9% for the second quarter of 2024 compared to 36.1% for the second quarter of 2023.
The specialty short-tail segment, which represented 60% of the company’s gross written premiums for the six months ended June 30, 2024, generated gross written premiums of $137.2 million for the second quarter of 2024, an increase of 8.5% compared to $126.5 million in the second quarter of 2023. Underwriting income was $21.2 million compared to $30.3 million for the same quarter of 2023.
The reinsurance segment, which represented 17% of the Company’s gross written premiums for the six months ended June 30, 2024, recorded gross written premiums of $16.4 million compared to $10.4 million for the second quarter of 2023. Underwriting income increased to $7.8 million for the second quarter of 2024, compared to $4 million for the second quarter of 2023 primarily the result of the higher level of net premiums earned during the second quarter of 2024.
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