IGI announces latest earnings

IGI announces latest earnings | Insurance Business Asia

Insurance News

IGI announces latest earnings

CEO describes interim results “excellent” despite decrease in net income

Insurance News

By
Terry Gangcuangco

Specialist commercial insurance and reinsurance group International General Insurance Holdings (IGI) has published its financial results for the quarter and nine months ended September 30.

According to the (re)insurer, here’s how it fared in the two periods:

Metric

Q3 2023

Q3 2022

9M 2023

9M 2022

Gross written premium

US$150.3 million

US$120.1 million

US$523.8 million

US$427.2 million

Underwriting income

US$49.7 million

US$42 million

US$139.5 million

US$124 million

Net investment income

US$9 million

US$5.6 million

US$35.7 million

US$6.2 million

Net income

US$10.9 million

US$22.6 million

US$85.2 million

US$66.8 million

Core operating income

US$36.3 million

US$28.1 million

US$103.7 million

US$80.4 million

In a release, IGI noted: “The decrease in net income [in Q3] was primarily driven by the negative movement of US$17.2 million in the change in fair value of derivative financial liabilities relating to warrants and earnout shares, and to a lesser extent higher net loss and loss adjustment expenses and general and administrative expenses.

“This was partially offset by the increase of US$12.5 million in net premiums earned and the positive movement of US$3.4 million in net investment income.”

The 27.5% increase in net income in 9M, meanwhile was attributed to significantly higher net premiums earned and net investment income.

Commenting on the numbers, chief executive Waleed Jabsheh 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.”

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