International General Insurance Holdings Ltd. (IGI) has reported that net income in Q2 increased 84.1% to $40.5 million, with a combined ratio of 73.5%, as the firm continued to benefit from sustained hard market conditions in many of its reinsurance and short-tail lines, and a “more favourable investment environment.”
IGI explained that the increase in net income was primarily driven by an increase of $22.4 million in net premiums earned, and a positive movement of $15.8 million in net investment income, which was partially offset by increased net loss and loss adjustment expenses, net policy acquisition expenses and general and administrative expenses.
The firm’s return on average equity (annualised) was 36.1% for Q2 of 2023, compared to 23.5% for the same quarter last year.
Net income for H1 now stands at $74.4 million, marking an increase of 68.3% from last year.
Meanwhile, IGI’s underwriting income, a non-GAAP measure, increased 24.6% to $50.2 million in Q2 of 2023 compared to $40.3 million for Q2 of 2022.
The firm said the increase was driven by higher net premiums earned offsetting a higher level of net loss and loss adjustment expenses and net policy acquisition expenses.
Gross written premiums were $199.6 million in Q2, representing an increase of 10.5% compared to the same quarter last year.
The loss ratio also improved by 1.5 points to 38.7% in Q2, largely the result of proportionately higher net premiums earned compared to the same period last year.
As mentioned, IGI’s Q2 combined ratio improved by 1.4 points to 73.5%.
IGI CEO, Waleed Jabsheh, said, “IGI produced another set of exceptional results across all key measures in the second quarter of 2023 as we continued to benefit from sustained hard market conditions in many of our reinsurance and short-tail lines, and a more favourable investment environment.
“The trends that we saw during the first quarter of 2023 continued throughout the second quarter resulting in gross premium growth of 10.5% in the second quarter and 21.6% for the first half of 2023.
“We are seeing plenty of opportunities to continue to show profitable growth in reinsurance and many short-tail markets where we have deep expertise, while being cautious in other short-tail and long-tail lines where there is more competitive pressure, and remaining focused on disciplined and selective underwriting.”
Jabsheh concluded, “All indications are that the positive trends in many short-tail and reinsurance lines that we have experienced over the last several quarters will remain for at least the near-term and we look forward to building on this momentum in the quarters ahead, and continuing to generate sustainable long-term value for our shareholders.”
