IGI triples net income in third quarter

Bermuda-based International General Insurance tripled its net income in the third quarter, recording profits of $34.5 million compared to $10.9 million a year earlier. 

IGI said the increase was driven by a rise in net premiums earned, which rose from $109 million to $126 million, although the company’s underwriting income fell 16.7% from $49.7 million to $41.4 million. 

“We had another quarter of strong performance with solid underwriting margins as well as a more favourable investment environment,” said IGI President & CEO Mr. Waleed Jabsheh. 

“While the third quarter was marked by heavier catastrophe losses globally as well as varied underwriting and financial markets, we have remained focused on consistently executing our strategy, at a time when risk selection and discipline are critical. All in for the third quarter, we recorded net income of $34.5 million, and a return on average equity of 22.3%.

“As we look ahead to 2025, we are in our strongest position ever, with a solid and consistently growing capital base. At September 30, 2024, total equity was $651.6 million, an increase of more than $100 million or 20.6% from December 31, 2023. This, in addition to our focus on building a larger and more diversified underwriting portfolio, has created a strong foundation and a level of resilience that will continue to serve us well in the future.

“As always, consistent and sustainable value creation is at the core of everything we do at IGI. In the first nine months of 2024, we grew our book value per share by 18.6% to $14.71. In addition to paying out more than $25 million in common share dividends for the year to date to September 30, 2024, we continued to repurchase our common shares. We will continue to focus on delivering strong returns and generating value for our shareholders for the remainder of 2024 and beyond.” 

The company said that in addition to the rise in net premiums earned, a decrease of $15.5 million in the change in fair value of derivative financial liabilities and a change of $15.1 million in the net foreign exchange gain over the third quarter of 2023 also contributed. 

“This was partially offset by a $24.4 million increase in net loss and loss adjustment expenses, which were negatively impacted by the currency revaluation on loss reserves denominated in Pounds Sterling during the third quarter of 2024,” the company said. 

IGI said core operating income was $30.7 million for the quarter ended September 30, 2024, compared to $36.3 million for the same period in 2023. The core operating return on average equity (annualized) was 19.8% for the third quarter of 2024 compared to 31.0% for the third quarter of 2023.

Gross written premiums were $138.3 million for the quarter ended September 30, 2024, compared to $150.3 million for the quarter ended September 30, 2023. The decrease was reflected in all segments. 

The company’s combined ratio deteriorated to 86% from 73.2%. 

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