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International General Insurance Holdings (IGI) reported a 75% decrease in net profit, due to expensive catastrophe losses, as part of its 2017 full-year results.
From US$32.1 million in 2016, the Dubai-based insurer reported a net profit of US$7.9 billion in 2017. The firm’s combined ratio was at 103% as of end-2017, compared to 87.5% in the previous year. According to the insurer, last year’s catastrophe losses were the most expensive on record, but prudent portfolio management helped mitigate the severity of its losses.
The insurer also revealed a 19% rise in GWP to US$275.34 million, with growth in all major lines of business. According to a statement by the firm, the growth was a result of increased business written in existing lines and expansion in its casualty and energy classes.
Investment income increased by 28% to US$14.6 million, and total assets grew 9% to to US$888.79 million.
“IGI’s full year results were announced against the backdrop of a very difficult year, which saw a competitive trading environment continue to keep pressure on rates, followed by catastrophe losses in the third quarter,” commented Wasef Jabsheh, vice chairman and chief executive officer of IGI. “Despite this, we stuck to our strategy of strict underwriting discipline and focused on maintaining a healthy and diversified portfolio.”
He added: “We view the coming year with optimism. Last year’s losses will likely improve market conditions over the coming months and drive sustainable premium growth in the near future.”
