IGI reports net income rise of 14.4% to $135m for FY’24

International General Insurance Holdings Ltd. (IGI) has reported a net income increase of 14.4% for the full year 2024 (FY’24) to $135.2 million compared to $118.2 million in the prior year, although the firm’s Q4 2024 net income decreased to $30 million compared to $33 million in Q4 2023.

Both periods in 2024 and 2023 were positively impacted by underwriting income generated across all segments and net investment income earned, explains the firm.

For Q4 2024, underwriting income increased to $48.8 million compared to $43.5 million in the prior year quarter, driven by greater net premiums earned.

For FY’24, underwriting income increased to $187.5 million compared to $183.1 million for FY’23, with an increase in net premiums earned and a higher net loss and loss adjustment expenses.

The insurer’s gross written premiums (GWP) for Q4’24 increased by 5.9% to $174.6 million, compared to Q4’23’s $164.9 million, due to growth in the reinsurance segment. For FY’24, GWP was $700.1 million compared to $688.7 million in 2023, driven by growth in all segments.

The firm’s loss ratio for Q4’24 was 43% compared to 47.6% for the same period in 2023. For FY’24, it was 44.7% compared to 42.3% in 2023.

The combined ratio was 77.8% for Q4 2024, compared to 81.8% in Q4 2023, and 79.9% for FY’24, compared to 76.7% for FY’23.

IGI has reported that catastrophe losses for Q4 2024 were driven by $6.7 million of combined reserves recorded for Hurricane Helene and flooding in the United Arab Emirates, Oman and the United Kingdom (in short-tail and reinsurance segments).

The cat losses for FY’24 were driven by the $18 million of reserves recorded for the earthquake in Taiwan, Hurricane Helene (in short-tail and reinsurance segments), flooding in the United Arab Emirates, Oman, Southern Germany and Morocco (in all segments) and a general CAT reserve of $13.9 million.

The annualized return on average equity was 18.4% for the fourth quarter of 2024, compared to 26.1% in the comparative quarter and 22.6% for full year 2024, compared to 24.8% for full year 2023.

Segment wise, IGI’s reinsurance arm represented 12% of its GWP for FY’24, with $4.8 million in Q4 2024 compared to negative $4.9 million in Q4 2023 which was impacted by prior period premium adjustments. Net premiums earned (NPE) for Q4 2024 were $22.4 million, an increase of $7.6 million compared to $14.8 million for the same quarter in 2023. Underwriting income increased to $13.5 million, compared to $9.3 million in Q4 2023, primarily due to growth in NPE and a higher level of net loss and loss adjustment expenses, and net policy acquisition expenses, during the fourth quarter of 2024.

For FY’24, reinsurance GWP were $83.4 million, an increase of 36.5% compared to $61.1 million for FY’23. At the same time, NPE increased by 51.9% at $80.8 million compared to $53.2 million for FY’23. The unit’s underwriting income increased to $35.8 million for 2024, compared to $18.6 million for 2023.

The specialty short-tail unit represented 59% of IGI’s GWP for FY’24, it generated GWP of $106.2 million for Q4 2024, compared to $105.2 million for Q4 2023. The NPE were $62.4 million for Q4 2024, compared to $62.5 million for the same quarter of 2023. For the segment, underwriting income decreased to $21 million for Q4 2024, compared to $27.2 million for the same quarter of 2023.

For FY’24, GWP in the segment were $412.3 million, an increase of 2.9% compared to $400.7 million last year, while NPE were $256 million, an increase of 8.4% compared to $236.2 million for the full year 2023. The underwriting income increased by 4.8% to $112.2 million compared to $107.1 million for the full year 2023.

Lastly, the specialty long-tail unit represented 29% ofIGI’s GWP for FY’24, recording GWP of $63.6 million for Q4 2024, compared to $64.6 million for Q4 2023. NPE for the quarter were $35.8 million, a decrease of 4.8% compared to $37.6 million for the same quarter of 2023. This segment recorded an underwriting income of $14.3 million in Q4 2024, compared to $7 million in Q4 2023.

For FY’24 GWP were $204.4 million, a decrease of 9.9% compared to 2023’s $226.9 million. NPE were $146.3 million, a decrease of 7.3% compared to $157.8 million for FY’23, due to a decrease in GWP. Underwriting income was $39.5 million, a decrease of 31.2% compared to $57.4 million for FY’23.

IGI’s investment income increased by 19.8% to $13.9 million in the fourth quarter of 2024 due to higher yields on a larger fixed-income portfolio. Net investment income was $13.6 million, compared to $14.5 million in Q4 2023. For FY’24 investment income increased 28.5% to $51.9 million compared to $40.4 million in 2023, representing an investment yield of 4.3% for 2024, compared to a 3.9% investment yield for the full year 2023. Net investment income increased to $53.9 million for FY’24, compared to $50.2 million for 2023.

Waleed Jabsheh, Group President & Chief Executive Officer, IGI commented, “We posted strong fourth quarter financial results to round out another excellent year in 2024. For the full year, we delivered a combined ratio of 79.9%, and produced record net income and operating income, leading to a return on average equity of 22.6% and a core operating return on average equity of 24.2%. Most importantly, we grew our book value per share by almost 20%.

“We have a long history of generating value for our shareholders across market cycles by actively and effectively managing our capital focusing first on underwriting discipline, intelligent risk selection and shifting to those lines and markets with the best risk-adjusted returns and, secondly, by returning excess capital to shareholders. In 2024, we returned close to $50 million to shareholders in common share dividends and share repurchases.”

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