IGI Q2 earnings hit by Middle East conflict despite premium growth
International General Insurance (IGI) reported a 39% decline in second-quarter net income as significant losses from the Middle East conflict pushed its combined ratio to 95.1%, although the specialty re/insurer continued to grow gross written premium and remained profitable.
Second quarter net income saw a $13.5 million drop to $20.9 million from $34.1 million in 2025. First half net income also took a significant hit, down 31% to $42.5 million from $61.4 million the year prior.
Catastrophe losses of 18.8% in Q2 contributed to a 57.9% loss ratio for the quarter taking the overall margin down 4.6 points to a combined ratio of 95.1% from 90.5% in 2025.
First half combined ratio fared better shedding 0.2 points to 92.2% from 92.4%.
Short tail and reinsurance segments contributed to a 7.4% increase in Q2 gross written premium to $201.7 million from $187.8 million. First half GWP increased 1.1% year-on-year to $398.9 million from $394.3 million.
IGI underwriting income for the second quarter and first half of 2026 was $29.5 million and $67.2 million, down 15% and up 6.6% respectively.
New business following the registration approval and launch of the India GIFT City reinsurance branch generated Q2 reinsurance GWP of $24.7 million, up 52% from Q2 2025.
Jabsheh said: “We delivered excellent underlying results in both the second quarter and first half of 2026 and continued to generate significant returns for shareholders, highlighted by annualized returns on average equity of 12.6% and 12.3% for the second quarter and first six months 2026, respectively.
“These results were delivered against a backdrop of significant loss activity, mostly stemming from war in the Middle East, which in aggregate represents one of the largest single event losses in IGI’s almost 25-year history.
“Our results clearly show the resilience and strength that we have built in IGI. To be able to absorb this level of loss in the first six months of 2026 while posting net income of $42.5 million, a combined ratio of 92.2%, and returning $72.9 million to shareholders, demonstrates that our strategy is not only working very well, but also as it was designed to work.”
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