IGI sees slight drop in net income for Q2 as CoR hits 81.2%

IGI has revealed that net income for Q2 of 2024 was $32.8 million, down from $40.5 million in the same quarter of 2023, while its combined ratio was 81.2%, up from 73.5% in the same period last year.

According to the firm, its net income was largely driven by underwriting income generated across all segments, with net premiums earned exceeding net loss and loss adjustment expenses and net policy acquisition expenses.

Meanwhile, gross written premiums in Q2 of 2024 were $205.6 million, representing an increase of 3% compared to the same period of 2023. The increase was reportedly driven by growth in the Reinsurance and Short-tail segments.

In fact, the Reinsurance Segment recorded gross written premiums of $16.4 million in Q2 of 2024, compared to $10.4 million for the same period last year.

IGI’s loss ratio for Q2 of 2024 was 45.1%, an increase of 6.4 points compared to 38.7% for Q2 of 2023.

Looking at the results from an H1 perspective, net income for the first six months of 2024 was $70.7 million, down from $74.4 million in H1 of 2023.

At the same time, underwriting income in the first six months of 2024 was $97.3 million, an increase of 8.1% compared to $90 million for the first six months of 2023.

As per IGI, the increase was primarily 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.

IGI’s gross written premiums in H1 of 2024 were $387.2 million, representing an increase of 3.7% compared to the same period last year.

The loss ratio for H1 was 42%, comparable to the loss ratio of 41.9% for the same period in 2023, while the firm’s combined ratio for H1 of 2024 was 77.7% compared to 75.7% in H1 of 2023.

IGI President & CEO, Waleed Jabsheh, commented, “We had another strong quarter resulting in an excellent first half of 2024. In spite of a more active loss environment during the second quarter, most notably in our property and offshore energy books, we posted healthy underwriting results, highlighted by combined ratios of 81.2% and 77.7% for the second quarter and first half of 2024, respectively – both well below our long-term averages.”

“Market conditions continue to be mixed with opportunities for growth in certain segments relatively harder to come by. This is exactly the type of environment where risk selection and discipline are critical and where we can continue to demonstrate the value of our underwriting strategy and the benefits of our growing and diversified portfolio.

“We continue to deliver strong ROEs and generate steady growth in book value per share through our underwriting and investment results, as well as through our active capital management, underscoring our commitment to generating long-term shareholder value. Consistent and sustainable value creation is central to everything we do at IGI.”

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