IGI has reported profit of $85.5 million for 2022, nearly doubling its return from the previous year thanks to higher net premiums earned and investment income, together with a lower level of net claims and strong underwriting results.
Core operating income was $94.4 million for the year, compared to $53.1 million in 2021.
For the fourth quarter specifically, profit was $25.7 million, compared $9.1 million for the same period in the previous year, with core operating income stable at $13.5 million.
IGI’s net underwriting results were $24.7 million for Q4 compared to $30.6 million in 2021, with the decrease largely driven by a higher level of net claims and claim adjustment expenses, partially offset by growth in net premiums earned.
Gross written premiums were $156.7 million in the quarter, representing a decrease of 4.2% on the previous year’s Q4, primarily due to results in the long-tail segment. For the full year, premiums were $581.8 million, an increase of 6.6% compared to $545.6 million for 2021.
The combined ratio for the quarter was 92.4% compared to 83.8% previously, and for the year it was 78.5%, compared to 86.4% in 2021.
Gross written premiums for IGI’s reinsurance segment were $4.2 million for the quarter, compared to $4.0 million previously and its net underwriting result for this segment was $3.2 million, up from a loss of $1.0 million in Q4 2021.
For the full year, reinsurance premiums were $31.0 million, again up from $24.0 million previously, and the underwriting result was $7.6 million, versus $2.4 million in the prior year.
Investment income amounted to $7.5 million for the quarter and $16.6 million for the year, compared to a loss of $4.0 million and a positive result of $8.8 million in the respective prior year periods.
“IGI finished its 20th anniversary year with excellent results across the board, marked by continued profitable growth, diversification and consistent execution of our strategy,” said IGI Chairman and CEO Wasef Jabsheh.
“This is particularly gratifying given the many challenges our industry faced during 2022, including significant natural catastrophes, rising financial and social inflation, currency volatility, and political instability,” he continued.
“So far in 2023, the market overall continues to be robust, though there remains wide variation in terms and conditions by line of business and geography. We expect the dislocation in reinsurance markets that was evident in the lead up to the January renewals will result in plenty of opportunity for us to continue to achieve profitable growth.”
