IGI reports increased net income of $34.1m for Q2’25

International General Insurance Holdings Ltd. (IGI) has announced its financial results for the second quarter of 2025, reporting a net income of $34.1 million, an increase of 3.9% over the $32.8 million reported for the second quarter of 2024, although the combined ratio increased to 90.5%.

The annualized return on average equity was 20.8% and 22.9% for the quarters ended June 30, 2025 and 2024, respectively.

The resulting combined ratio rose to 90.5% in Q2 2025, compared to 81.2% reported in the same period last year. This increase was attributed to a higher loss ratio of 53%, up from 45.1%, which was predominantly impacted by the revaluation of non-US dollar loss reserves as the US dollar weekend against other major currencies, the firm explained.

Underwriting income also saw a decline, dropping to $35 million for the second quarter of 2025 compared to $45.3 million for the second quarter of 2024.

Additionally, gross written decreased to $187.8 million in Q2 2025 from $205.6 million for the comparable period in 2024.

Core operating income was $22.8 million for Q2 2025, compared to $33.2 million for the same period in 2024. IGI generated a core operating return on average equity (annualized) of 13.9% and 23.2% for the second quarters of 2025 and 2024, respectively.

According to the firm, core operating income for Q2 2025 included a lower level of underwriting income which was negatively impacted by currency revaluation movements.

For the six months of 2025, IGI’s net income was $61.4 million compared to $70.7 million, compared to the $70.7 million reported in the same period last year.

The annualized return on average equity for this period was 18.6%, a decrease from 25.0%. Core operating income was $42.2 million for 6M, compared to $73.3 million for the same period in 2024. The annualized core operating return on average equity stood at 12.8%, compared to 26.0% for the first six months of 2024.

For the first six months of 2025, gross written premiums were $394.3 million, an increase of 1.9% over gross written premiums of $387.2 million in the same period last year. The increase was driven by growth in the Reinsurance segment, partially offset by a decrease in the Long-tail and Short-tail segments.

Underwriting income was decreased to $63.0 million from $97.3 million. Loss ratio in 6M was 54.3%, which increased from 42.0% in the same period last year, impacted by catastrophe losses (“CAT losses”) of $38.6 million, as well as the impact of currency revaluation movements of non-US dollar loss reserves.

The resulting combined ratio for the first six months of 2025 was 92.4%, compared to 77.7% for the first six months of 2024. The combined ratio for the first six months of 2025 was negatively impacted by currency revaluation movements.

By segment performance, reinsurance recorded gross written premiums of $16.3 million for Q2 2025, effectively flat when compared to $16.4 million for Q2 2024. Net premiums earned stood at $24.0 million, a 21.2% increase compared to the same quarter in 2024.

Underwriting income went up 57.7% to $12.3 million for Q2 2025, primarily the result of the higher level of net premiums earned.

The specialty sort-tail segment generated gross written premiums of $125.6 million for the second quarter of 2025, compared to $137.2 million in Q2 2024. Net premiums earned were $60.2 million, and underwriting income increased to $25.6 million, largely driven by a lower level of net loss and loss adjustment expenses.

The specialty long-tail segment recorded gross written premiums of $45.9 million for Q2 2025, compared to $52.0 million for Q2 2024. Net premiums earned for the quarter were $30.8 million compared to $36.3 million for the same quarter of 2024.

This segment recorded an underwriting loss of $2.9 million, largely due to a higher level of net loss and loss adjustment expenses and a lower level of net premiums earned. Additionally, underwriting income, which is transacted primarily in Pounds, was negatively impacted by currency revaluation movements on net loss reserves amounting to $14.6 million.

IGI Group President & CEO Mr. Waleed Jabsheh said, “The second quarter of 2025 marked a continuation of strong results in our underwriting and investment portfolios, culminating in net income of $34.1 million and an annualized return on average equity of 20.8%. These outcomes clearly demonstrate the benefit of our multi-faceted diversification strategy, our specialist expertise, and the discipline embedded in our underwriting culture at a time when insurance and reinsurance markets are becoming increasingly competitive.”

“At IGI, our business is well-diversified geographically with a predominantly international portfolio of risks much of which is denominated in foreign currencies. To date in 2025, the U.S. Dollar, which is our financial reporting currency, has seen significant weakening against our other major transactional currencies. This led to a meaningful impact on our reported results for the second quarter, most significantly on our underwriting results, specifically the revaluation of non-U.S. Dollar loss reserves.”

“Current market conditions are generally healthy though becoming more competitive in some areas of our portfolio, both by line of business and by geography. Our strategy, expertise and footprint are specifically geared towards managing the cyclicality and volatility of our business, where lines and markets behave largely independent of each other. Over the past two decades, we have demonstrated our ability to perform at a high level through all stages of the cycle, generating consistent and sustainable value for our shareholders. In the first half of 2025, we grew our book value per share by 3.4%, and in total, we returned $77 million to shareholders in the form of dividends and share repurchases.”