International General Insurance Holdings (IGI) released its financial results for the second quarter and the first six months of 2024, showing mixed performance across various metrics.
For the quarter ending June 30, 2024, IGI reported a net income of $32.8 million, down from $40.5 million in the same period of 2023. This decrease in net income was driven by underwriting income across all segments, with net premiums earned exceeding net loss and loss adjustment expenses, and net policy acquisition expenses.
The annualised return on average equity was 22.9%, compared to 36.1% in the second quarter of 2023.
Core operating income, a non-GAAP measure, stood at $33.2 million for the quarter, compared to $38.1 million in the previous year. The core operating return on average equity (annualised) was 23.2%, down from 34.0% in the second quarter of 2023.
Gross written premiums for the quarter were $205.6 million, a 3.0% increase from $199.6 million in the second quarter of 2023, driven by growth in the Reinsurance and Short-tail segments. The loss ratio for the quarter increased to 45.1%, compared to 38.7% in the same period last year. The net policy acquisition expense ratio was 17.7%, down from 18.9% in the second quarter of 2023.
The general and administrative expense ratio rose to 18.4%, from 15.9% in the previous year, primarily due to higher human resources costs associated with the company's growth. The combined ratio was 81.2%, compared to 73.5% in the second quarter of 2023.
For the six months ending 30 June 2024, IGI's net income was $70.7 million, down from $74.4 million in the same period of 2023. Underwriting income increased by 8.1% to $97.3 million, driven by higher net premiums earned from portfolio growth, partially offset by higher net loss and loss adjustment expenses. The annualised return on average equity was 25.1%, down from 33.9% in the first six months of 2023.
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Core operating income for the first half of the year was $73.3 million, up from $67.5 million in the previous year. The core operating return on average equity (annualised) was 26.0%, compared to 30.8% in the first half of 2023.
Gross written premiums for the first six months were $387.2 million, a 3.7% increase from $373.5 million in the same period of 2023. The loss ratio remained stable at 42.0%, compared to 41.9% in the previous year. The net policy acquisition expense ratio was 16.8%, down from 17.8% in the first half of 2023.
The general and administrative expense ratio increased to 18.9%, from 16.0% in the previous year, reflecting higher human resources costs. The combined ratio for the first half of 2024 was 77.7%, up from 75.7% in the same period of 2023.
IGI president and CEO Waleed Jabsheh (pictured above) commented that the company had a strong quarter, resulting in an excellent first half of 2024.
“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,” Jabsheh said.
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