International General Insurance Holdings Ltd. (IGI) has reported a gross written premium (GWP) $128 million for Q1 22, representing a 27% growth compared to GWP of $100.6 million from last years quarter.
IGI stated that the increase in GWP was the result of new business generated across all segments and virtually all lines, as well as rate increases on existing business across all segments.
The company also saw a spike in net underwriting results for the quarter as they improved to $41.3 million from $27.6 million in Q1 21, which was largely driven by growth in net premiums earned and a lower level of net claims and claim adjustment expenses.
At the same time, net claims and claims expense ratio improved to 32.8% for the quarter, a major improvement from 50% from last years period. Combined ratio also improved to 72.2%, from 84.6% from the prior years quarter.
Moreover, IGI reported a $19.4 million profit for the quarter, a major increase compared to last years quarter profit of $10.2 million. In addition, core operating income for the quarter saw a significant increase at $23.9 million, compared to $14.6 million for the comparable period in 2021.
Furthermore, IGI’s total investment income for Q122 was a gain of $2.6 million, compared to a gain of $5 million in Q121.
IGI Chairman and CEO, Wasef Jabsheh said: “IGI had a strong start to 2022 as our growth and cycle management strategy resulted in an excellent set of financial results across all key financial measures. Most notably, we recorded a 50% increase in net underwriting results, a 90% increase in profit for the quarter, and a 64% increase in core operating income in the first quarter of 2022 compared to the first quarter of 2021, resulting in 8.8 points of improvement in our core operating return on average equity to 24.1%.
“We grew our gross premiums by 27% during the first quarter of 2022 as we continued to take advantage of a robust rating environment and capitalize on market opportunities in all areas of our business, while continuing to strengthen our existing portfolio. Our combined ratio for the first quarter of 2022 was 72.2%, an exceptional result and well below our long-term average of around 90%.
“I would note that IGI has minimal direct exposure to Russia and Ukraine and we don’t expect any material losses arising from the conflict there. Nevertheless, it is events such as this that continue to remind us of the complexity and uncertainty of the world around us, and the impact they have on our global economies. Elevated inflationary pressures and rising interest rates in the first quarter of 2022 were evident in the mark-to-market impacts in our investment results.”
He continues: “Overall, our performance in the first quarter of 2022 demonstrates the effectiveness of our underwriting strategy and provides another positive data point in the track record of high-quality results that IGI has achieved over many years. We expect that our markets and the rating environment will remain favorable for the foreseeable future, resulting in profitable growth in 2022. Our commitment has always been to generate long-term value for our shareholders, and we are continuing to explore our options on the capital management front to ensure that we continue to deliver on this commitment.”
