IGI enjoys growth, CEO flags disciplined execution

International General Insurance (IGI) enjoyed a positive first quarter posting an improved profit and strong growth driven by short-tail and reinsurance business as its CEO highlighted its “disciplined execution.”

The company posted a net profit of $33.9 million, compared to profit of $22.2 million for the quarter ended March 31, 2022. The increase was primarily driven by an increase of $17.8 million in net premiums earned, positive movement of $10.3 million in total investment income, and $2.7 million of favourable movement in foreign exchange.

Its combined ratio for the quarter was 78.4% compared to 71.8% in the same period a year earlier. The increase was primarily the result of a higher loss and loss adjustment expense ratio, as described above.

Its gross written premiums were $173.9 million for the quarter ended March 31, 2023, representing an increase of 37.6% compared to gross written premiums of $126.4 million for the quarter ended March 31, 2022. The increase was largely driven by growth in both the Short-tail and Reinsurance segments of 35.3% and 187.9% respectively, partially offset by a 6.0% decrease in the Long-tail Segment.

IGI reported its results for the first quarter based on Generally Accepted Accounting Principles in the US, a voluntary change meaning it no longer reports financial information in accordance with IFRS. The prior period comparatives for the first quarter of 2022 have been adjusted to conform with accounting under US GAAP.

Wasef Jabsheh, IGI chairman and CEO, said: “IGI had a very positive start to 2023, posting another excellent set of financial results for the first quarter. We responded decisively to improving areas of our markets with the same disciplined execution, delivering profitable growth as reflected in a 78.4% combined ratio. With these strong underwriting results, coupled with significantly improved investment results, driven by higher yields and increased reinvestment rates, we recorded a profit of $33.9 million, a 32.2% annualized return on average equity, and a 27.9% annualized core operating return on average equity.

“The operating environment remains positive, notwithstanding the broader macroeconomic, geopolitical and environmental challenges that persist. We grew our gross premiums by over 37% during the first quarter of 2023 as we took advantage of the rating momentum and improved terms in our short-tail and reinsurance segments. We are encouraged by the strong and profitable growth seen to date in the second quarter.

“There is a lot of positive momentum in many areas of our business and we remain optimistic and excited about our future. As we have continued to grow and evolve into a truly international specialist insurer, we remain focused on consistent, disciplined execution of our strategy so that we continue our track record of generating long-term shareholder value through excellence in underwriting.”