IGI has announced a second quarter net profit of $5.6 million, compared to a net profit of $12 million in the prior year period.
Core operating income stood at $9 million and $10.3 million for Q220 and Q221, respectively.
The lower core operating income is primarily the result of a 6-point increase in the current accident year loss ratio, the majority of which is recorded in the engineering line of the short-tail segment and the inward treaty reinsurance portfolio of the reinsurance segment.
The decline in net underwriting results on a comparative basis was partially offset by an increase in total investment income.
Gross written premiums were $166.1 million, representing growth of 21% from last year.
The net claims and claims expense ratio was 56.9% for the quarter, compared to 48.1% for the prior year period.
This included current accident year net catastrophe losses of $0.4 million or 0.5 points, compared to $1.8 million or 2.7 points.
Prior year development on loss reserves was unfavorable amounting to $1.0 million or 1.2 points, driven by deterioration of $2.3 million in the short-tail segment, primarily in downstream energy, and $0.5 million in the reinsurance segment, partially offset by favorable movement of $1.8 million in the long-tail segment
The combined ratio for the quarter was 92.3%, compared to 84% in the prior year period.
The quarter-over-quarter increase is primarily the result of the higher current accident year loss ratio of 55.8%.
“Our results for the second quarter and first half of 2021 provide further confirmation of the successful track record IGI has built over the past 20 years,” said Chairman and CEO Mr. Wasef Jabsheh.
“Premium growth in the second quarter was strong at 21%, after more muted production in the first quarter, with strong profitability for the first half of 2021 reflected in our 88.5% combined ratio.”
