Insurer and reinsurer International General Insurance Holdings Ltd. (IGI) has reported reinsurance gross written premiums (GWP) for the third quarter of 2023 of $15.3 million, up 140% year-on-year, as the carrier took advantage of improved pricing.
The company’s reinsurance segment represented approximately 10% of the total GWP for Q3 2023. Net premiums earned within reinsurance rose from $7.5 million to $10 million, as the segment’s underwriting income increased by almost $5 million to $5.8 million.
IGI attributes the stronger reinsurance underwriting result to the 33% rise in net premiums earned on the back of significant premium growth and improved pricing in reinsurance lines of business when compared with last year.
The firm’s short-tail segment accounts for the majority, or 52% of IGI’s Q3 2023 GWP, growing 28% year-on-year to $77.4 million for the quarter. Net premiums earned rose 36% to $61 million, while underwriting income improved significantly to $20.8 million compared with $4.7 million for the same period in 2022. The stronger result reflects a higher level of net premiums earned and a lower level of losses.
In its long-tail business, which represented 38% of total GWP in the quarter, premium growth was less at 8% to $57.6 million. Net premiums earned fell 14% year-on-year to $38 million, largely as a result of an increase of $7.3 million in ceded premium, says IGI. Within long-tail, underwriting income declined year-on-year by 36% to $23.1 million, primarily due to a higher level of net loss and loss adjustment expenses and a lower level of net premiums earned.
Despite the decline in long-tail, the improved performance in the firm’s short-tail and reinsurance books saw underwriting income across the group rise more than 18% to $49.7 million, mostly driven by higher net premiums earned as a result of the overall growth of the portfolio, partially offset by a higher level of net loss and loss adjustment expenses.
The loss ratio came down slightly to 37.3% in Q3 2023 compared with 38.2% in Q3 2022, as the net policy acquisition expense ratio fell from 18.3% to 17.1%. IGI has reported a combined ratio of 73.2% for Q3 2023 compared with 74% a year earlier.
Group-wide, GWP hit $150.3 million for Q3 2023, representing an increase of 25.1% year-on-year, driven by growth in all segments.
Net investment income also increased year-on-year, from $5.6 million in Q3 2022 to $9 million in Q3 2023.
Waleed Jabsheh, IGI’s Cheif Executive Officer, said: “IGI’s excellent third quarter and nine-month results – reflected in a combined ratio of 73.2% and a core operating return on average equity of 31.0% – demonstrate our continued discipline and ability to shift focus to those lines with the strongest margins.
“While market conditions remain healthy in many lines and increasingly pressured in others, we achieved overall net rate increases of more than 7% across our portfolio, recording healthy premium growth of 25.1% during the third quarter and 22.6% for the first nine months of 2023.
“As we look ahead to 2024, we expect to build on the momentum and profitable growth trajectory of the last several quarters, enabling us to continue to deliver on our value proposition to all our stakeholders.”
