International General Insurance (IGIC) Q2 2024 earnings summary

Executive summary

• Delivered strong Q2 and H1 2024 results, with annualized ROE of 22.9% for Q2 and 25.1% for H1, despite a 30% increase in average equity year-over-year.

• Achieved strong underwriting and investment results in Q2 and H1 2024, despite a more active loss environment, particularly in property and offshore energy books.

• Maintains strong balance sheet and capital preservation, with significant insider ownership (34.7% by Jabsheh family).

• Operates globally with main underwriting hubs in Bermuda, UK, Europe, MENA, and Asia Pacific, leveraging local knowledge and relationships.

• Focus remains on underwriting profitability and sustainable value creation, not top-line growth.

Financial highlights

• Gross written premiums rose 3.0% year-over-year to $205.6M in Q2 and 3.7% to $387.2M in H1, driven by Reinsurance and Short-tail segments.

• Net income was $32.8M in Q2 (down from $40.5M) and $70.7M in H1 (down from $74.4M), mainly due to higher loss and expense ratios.

• Core operating income reached $33.2M in Q2 and $73.3M in H1, with H1 up 8.6% year-over-year.

• Combined ratios were 81.2% for Q2 and 77.7% for H1, both well below long-term averages.

• Investment yield improved to 4.6% annualized for H1, with an A-rated fixed income portfolio and 3.2-year duration.

Outlook and guidance

• Premium growth for 2024 now expected in mid to high single digits, revised from earlier high single to low double digits.

• Management expects continued mixed market conditions, emphasizing the importance of risk selection and underwriting discipline.

• Focus on growth in US and European business, with US portfolio at $73.1M (55% E&S, short-tail) and Europe at $39.1M (mainly long-tail).

• Continued emphasis on short-tail and reinsurance lines, and expansion in Nordic, MENA, and Asia Pacific regions.

• Ongoing evaluation of new market and line opportunities within risk appetite.