The length of the hard market will be driven by the length of the soft market we have just come through, according to Waleed Jabsheh, president at IGI.
“We have seen years of rate reductions and margins being erased, there has not been enough adequacy in the rates being charged,” Jabsheh said. “It was an aggressive soft market so now we are seeing an aggressive hard market.”
Jabsheh said he was very happy with IGI’s underwriting performance for Q3 and year to date, with the re/insurer reporting a net profit of $9.5 million for Q3, and $20.7 million for the first nine months of the year. He singled out IGI’s combined ratio of 86.5 percent for the first nine months of 2020 as especially pleasing.
IGI has seen the most growth in the lines where it has seen the biggest rate increases, Jabsheh noted. Its D&O book saw rate increases of 85 percent, “increases we have never seen before,” noted Jabsheh. Aviation and professional indemnity rates were up by 30 percent, he added.
“Dislocation always creates opportunities, and we are always looking for new opportunities,” said Jabsheh. “We have a flat management structure and a nimble culture which allows us to respond quickly when opportunities arise.”
Jabsheh pointed to “an abundance of opportunities out there right now,” and increased volume of business, which he said shows no sign of slowing down. “I see the hard market continuing into 2022 but I prefer not to try and predict further out than that,” he added.
Jabsheh predicted IGI will continue to deliver strong results in the coming quarters. “This is exactly the kind of market that IGI thrives in,” he said. “We have always been focused on the bottom line, on being disciplined and getting value for the capacity we offer.”
IGI, Waleed Jabsheh