IGI reports Q3 profit of $18.6 million
IGI recorded a rise in profit for the third quarter to $18.6 million from $16.1 million in Q3 2021. For the first nine months of 2022, profit was $59.8 million, compared to profit of $34.5 million for the first nine months of 2021.
Gross written premium (GWP) in the third quarter rose to $120.6 million from $115.3 million, and in the nine month period to $425.1 million from $382.1 million.
Combined ration dipped to 73.8 percent from 85 percent in Q3, and to 73.6 percent from 87.3 percent in the first nine months of the year.
IGI chairman and chief executive officer Wasef Jabsheh said: “IGI recorded another strong set of results in the third quarter of 2022, continuing the momentum of the prior two quarters, and culminating in a combined ratio of 73.6 percent and a core operating return on average shareholders’ equity of 26.9 percent for the first nine months of 2022.”
Market conditions and rates are “holding up”, he said, across the company’s portfolio and it continues to grow at a “steady pace”, with gross written premiums up more than 11 percent year-to-date.
“As we look ahead to 2023, we continue to closely monitor the broader economic effects of rising inflation and interest rates as well as foreign exchange movements. The effect of the strengthening US dollar against our transactional currencies, the pound sterling and the euro, particularly in our long-tail business which accounts for about a third of our total gross premiums, was evident in prior quarterly results and is again evident in the third quarter, resulting in a positive impact on our underwriting results," Jabsheh said.
“We expect to see further opportunities to continue on our profitable growth trajectory, particularly after the headline events of the third quarter, which we expect will positively impact rates in some of our markets. While we were less impacted than others in our industry by these catastrophic events–in particular the devastation of Hurricane Ian–they once again provide a reminder of why we do what we do–to provide peace of mind in times of uncertainty. That is our purpose and our commitment at IGI and it is what enhances the value that we provide to our customers and our shareholders.”
IGI’s Long-tail Segment, which represented approximately 37 percent of its GWP for the nine months ended September 30, includes financial institutions, marine liability, inherent defects insurance, and professional lines, which is comprised of professional indemnity, directors and officers, legal expenses, and other casualty lines (non-US). GWP for the third quarter in the Long-tail Segment were $53.4 million compared to $55.3 million for the third quarter of 2021.
Its Short-tail Segment, which represented approximately 57 percent of its GWP for the nine month period, includes energy, property, general aviation, ports and terminals, marine trades, marine cargo, contingency, construction and engineering, and political violence. GWP for the third quarter in the Short-tail Segment were $60.7 million, a year-on-year increase of 11.2 percent.
Its Reinsurance Segment, which represented approximately 6 percent of its GWP for the nine month period, includes its inwards reinsurance portfolio. GWP for the third quarter was $6.5 million, compared to $5.4 million in the third quarter of 2021. GWP in the nine month period was $26.8 million, compared to $20.0 million 2021.
