IGI profit takes a hit from catastrophe losses

International General Insurance (IGI) saw its net income drop 28% to $27.3 million in Q1 2025, driven by a rise in catastrophe losses.

The Bermuda-based specialty insurer said gross written premium increased by 13.7% to $206.5 million but net premiums earned decreased slightly from $114.5 million to $112.8 million.

Underwriting income was almost halved to $27.9 million from $52 million, and the company’s combined ration deteriorated from 74.1% to 94.4%.

Management said the results were “relatively solid” given the level of losses in the quarter,

“We posted relatively solid results for the first quarter of 2025, highlighted by a combined ratio of 94.4% and a return on average equity of 16.7%,” said group president and chief executive officer Waleed Jabsheh (pictured). “Against a backdrop of significantly elevated natural catastrophe and large loss activity and significant macroeconomic uncertainty, including currency volatility, our performance for the first quarter of this year clearly underscores our value proposition and the strength of our diversification strategy.

“While market conditions are becoming more challenging overall, we remain positive about the year ahead. We have consistently demonstrated our ability to manage through all market cycles and to create value through intelligent and disciplined risk selection and shifting to those lines and markets with the best risk-adjusted returns, as well as returning excess capital to shareholders.

“Already in the first quarter of 2025, we have returned $43.5 million to shareholders in dividends, including a special dividend, and share repurchases.”

Catastrophe losses included $17.5 million of combined reserves recorded for the Southern California wildfires in the reinsurance segment, the earthquakes in Taiwan and the Bridgewater Canal breach in Manchester, UK — both in the short-tail segment — and a general catastrophe reserve of $9.7 million.

The company said its loss ratio was 55.5% compared to 38.7% in 2024, largely driven by catastrophe losses of $28.2 million in the first quarter of 2025, compared with $10.8 million in the first quarter of 2024.

The specialty short-tail segment, which represented 46% of gross written premiums, generated GWP of $96 million compared with $94.2 million a year earlier.

Underwriting income was $25 million compared to $35.3 million, largely due to higher catastrophe losses and a lower level of net premiums earned.

The specialty long-tail segment, which represented 20% of GWP, recorded gross written premiums of $40.5 million compared to $38.7 million. Net premiums earned for the quarter were $30.6 million, a decrease of 17.7% compared with $37.2 million in the first quarter of 2024. The segment took an underwriting loss of $7.5 million in the first quarter of 2025, compared with income of $9.9 million in the first quarter of 2024, largely due to a higher level of losses and lower net premiums earned.

The reinsurance segment offset weaknesses in the insurance segments with a 43.7% rise in GWP and a 52.9%  jump in underwriting income.

The segment, which represented 34% of GWP, had GWP of $70 million, up from $48.7 million in 2024. Net premiums earned were $24.9 million, an increase of $8.1 million or 48.2%, compared with $16.8 million in 2024.

Underwriting income increased 52.9% to $10.4 million for the first quarter of 2025, compared with $6.8 million for the first quarter of 2024, primarily the result of the higher level of net premiums earned, partially offset by a higher level of net loss and loss adjustment expenses which included a higher level of catastrophe losses during the first quarter of 2025.

Net investment income edged up to $15.5 million from $15.4 million.

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