IGI reports Q1’24 CoR of 74.1% with 31% rise in underwriting income

Re/insurer International General Insurance Holdings Ltd. (IGI) has reported a Q1 2024 combined ratio of 74.1%, an improvement of 4.3 points compared to 78.4% in Q1 2023.

The re/insurer’s net income for this quarter increased 11.8% to $37.9 million from $33.9 million in Q1 2023, primarily driven by an increase of $12.2 million in underwriting income and an increase of $3 million in net investment income.

The underwriting income reported for Q1 2024 increased 30.7% to $52 million compared to $39.8 million for Q1 2023, driven by higher net premiums earned, a lower level of loss, and loss adjustment expenses.

The firm’s gross written premiums (GWP) were $181.6 million for the quarter, representing an increase of 4.4% compared to $173.9 million for Q1 2023, attributed to growth driven by the reinsurance and short-tail segments.

The firm’s loss ratio was 38.7% for Q1 2024 compared to 45.7% year over year with a core operating income of $40 million, compared to $29.3 million in Q1 2023. The core operating annualized return on average equity was 29.2% for Q1 2024 compared to 27.9% for Q1 2023.

The reinsurance segment represented 27% of the firm’s GWP for Q1 2024, recorded at $48.7 million compared to $40.3 million in Q1 2023. Net premiums earned were $16.8 million, compared to $13.8 million a year earlier. Meanwhile, underwriting income was profitable at $6.8 million for Q1 2024, compared to a loss of $0.3 million for Q1 2023. This improvement was primarily the result of the higher level of net premiums earned during the first quarter of 2024 along with a decrease in net loss and loss adjustment expenses by $4 million.

The specialty long-tail segment represented 21% of the re/insurer’s GWP for Q1 2024 of $38.7 million, a decrease of 7.9% compared to $42 million for Q1 2023. Net premiums earned were $37.2 million, a decrease of 7.7% compared to $40.3 million in Q1 2023, due to a lower level of gross written premium. Also, underwriting income showed a decrease of 12.4% at $9.9 million, compared to $11.3 million in Q1 2023.

In the specialty short-tail segment, which represented 52% of the firm’s GWP in Q1 2024 at $94.2 million, an increase of 2.8% compared to $91.6 million in Q1 2023, net premiums earned were $60.5 million, an increase of 18.6% compared to $51 million in Q1 2023, driven by overall premium growth and positive movement in the net change in unearned premiums in this segment. Underwriting income hit $35.3 million, an increase compared to $28.8 million for the same quarter of 2023.

On the asset side of the balance sheet, IGI has reported net investment income of $15.4 million for the first quarter of 2024, compared to $12.4 million for the first quarter of 2023.

Waleed Jabsheh, President & Chief Executive Officer, IGI commented on the results: “IGI had a very positive start to 2024, posting another excellent set of financial results for the first quarter. While market conditions are more mixed than a year ago, we continue to benefit from the strong foundations that we’ve laid over recent quarters and years to position our company for continued success.

“We are continuing to see new opportunities and find new ways of accessing business. With underwriting income up more than 30% and a lower level of losses in the first quarter, we posted a healthy 74.1% combined ratio. These strong underwriting results, coupled with significantly improved investment results, resulted in net income of $37.9 million, a 27.6% annualized return on average equity, and a 29.2% annualized core operating return on average equity.

“As market conditions remain varied across our portfolio, we are focused on consistent selective and disciplined underwriting and targeted growth and diversification, moving our capital to those areas with the highest risk-adjusted returns. With a number of new initiatives in place, we are well-positioned to continue to deliver on our goal of creating sustainable long-term value for our shareholders.”

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