International General Insurance (IGIC) Q3 2024 earnings summary

Executive summary

• Achieved a combined ratio of 80.5% for the first nine months of 2024, net income of $105.1M, and annualized ROE of 23.5%, with book value per share up 18.6% to $14.71.

• Company doubled its asset base to over $2B, market cap surpassed $1B, and total equity reached $651.6M, with global expansion and new offices in Malta, Bermuda, and Oslo.

• Maintains a strong balance sheet, conservative investment strategy, and significant insider ownership (35% Jabsheh family).

• Demonstrates a 10-year CAGR of 7.0% in tangible book value per share plus dividends and a 10-year average core operating ROE of 13.9%.

• Operates globally with underwriting hubs in Bermuda, UK, Europe, MENA, and Asia Pacific.

Financial highlights

• Q3 2024 gross written premium was $138.3M (down 8% YoY); nine-month GWP was $525.5M (up 0.3%), with net income for Q3 at $34.5M and $105.1M for nine months.

• Net premiums earned in Q3 2024 were $126.1M (up from $108.9M); nine-month net premiums earned were $362.5M (up from $332.2M).

• Underwriting income for Q3 2024 was $41.4M; nine-month underwriting income was $138.7M.

• Investment portfolio reached $1.29B as of September 30, 2024; annualized investment yield improved to 4.3% for the first nine months.

• Diluted EPS for Q3 2024 was $0.75; nine-month diluted EPS was $2.31.

Outlook and guidance

• Management expects continued growth in 2025, especially in Short-tail and Reinsurance segments, with focus on US, Europe, and expansion in Nordic, MENA, and Asia Pacific regions.

• Market outlook for January 1 renewals is stable, with some stabilization in long-tail rates and positive momentum in reinsurance.

• Prudent capital management with ongoing share repurchases and regular dividends, including a $0.50/share extraordinary dividend in April 2024.