IGI reports record net income for the year

Bermuda-based International General Insurance (IGI) reported a record net income of $135.2 million for 2024, driven by a rebound in its reinsurance segment and strong investment returns.

The specialty re/insurer saw a 14.3% increase in annual net income from $118.2 million. However, fourth-quarter net income declined by 9%, falling from $33 million to $30 million.

Gross written premiums for the quarter rose to $174.6 million from $164.9 million while GWP for the year rose to $700.1 million from $688.7 million. 

Underwriting income for the quarter rose 11.5% to $48.8 million and edged up 2.4% to $183.1 million for the year, with an increase in net premiums earned partially offset by a higher level of net loss and loss adjustment expenses for the full year results.

“We posted strong fourth quarter financial results to round out another excellent year in 2024,” said IGI group president & CEO Waleed Jabsheh (pictured). “For the full year, we delivered a combined ratio of 79.9%, and produced record net income and operating income, leading to a return on average equity of 22.6% and a core operating return on average equity of 24.2%. Most importantly, we grew our book value per share by almost 20%.

“We have a long history of generating value for our shareholders across market cycles by actively and effectively managing our capital focusing first on underwriting discipline, intelligent risk selection and shifting to those lines and markets with the best risk-adjusted returns and, secondly, by returning excess capital to shareholders. In 2024, we returned close to $50 million to shareholders in common share dividends and share repurchases.” 

The company’s combined ratio improved to 77.8% from 81.4% for the quarter but worsened from 76.7% to 79.9% for the year.

Specialty short-tail segment 

By segment, the company’s specialty short-tail underwriting, which represented 59% of the company’s annual GWP, generated gross written premiums of $106.2 million for the fourth quarter compared with $105.2 million in 2023. Underwriting income dropped to $21 million for the quarter compared to $27.2 million for the same quarter of 2023, due to a higher level of net loss and loss adjustment expenses during the fourth quarter of 2024, compared to the same period in 2023. Gross written premiums for the full year were $412.3 million, an increase of 2.9% compared to $400.7 million in 2023. 

Net premiums earned for the full year 2024 were $256 million, an increase of 8.4% compared to $236.2 million for the full year 2023. Underwriting income was $112.2 million for the full year 2024, an increase of 4.8% compared to $107.1 million for the full year 2023, primarily due to a higher level of net premiums earned, partially offset by a higher level of net loss and loss adjustment expenses for the full year 2024 compared to 2023.

Specialty long-tail segment

IGI’s specialty long-tail segment, which represented 29% of the company’s gross written premiums in 2024, saw GWP slip to $63.6 million in the fourth quarter, down from $64.6 million. However, underwriting income doubled to $14.3 million from $7 million, largely due to a lower level of losses. GWP for the year were $204.4 million, a decrease of 9.9% compared to $226.9 million for the full year 2023. Underwriting income was $39.5 million for the full year 2024, a decrease of 31.2% compared to $57.4 million for the full year 2023, due to a lower level of net premiums earned and a higher level of losses.

Reinsurance segment

The reinsurance segment, which represented 12% of the company’s gross written premiums in 2024, recorded gross written premiums of $4.8 million compared to negative $4.9 million for the fourth quarter of 2023, which was affected by prior period premium adjustments. Underwriting income rose to $13.5 million for the fourth quarter of 2024, compared with $9.3 million for the fourth quarter of 2023, primarily due to a higher level of net premiums earned.

For the year, reinsurance gross written premiums were $83.4 million, an increase of 36.5% compared with $61.1 million for the full year 2023. Net premiums earned for the full year 2024 were $80.8 million, an increase of 51.9% compared with $53.2 million for the full year 2023, primarily as a result of the higher level of gross written premiums. Underwriting income increased to $35.8 million for the full year 2024, compared to $18.6 million for the full year 2023, primarily due to a higher level of net premiums. 

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