International General Insurance (IGI) has posted a profit of $21.8 million for the second quarter of 2022, up from $8.2 million in the same quarter last year. Profit for the first six months of the year, meanwhile, was $41.3 million, compared to $18.5 million of the same period in 2021.
The specialist commercial (re)insurer also reported a core operating income of $29.4 million for Q2 and $53.3 million for H1, a significant improvement compared to 2021 when the core operating income for Q2 was $8.8 million and H1 was $23.5 million. This was attributed to an increase in net premiums, as well as a lower level of net claims and claim adjustment expenses that benefited from higher favourable development of net loss reserves from prior accident years.
With core operating return on average shareholders’ equity increasing to 30% for Q2 and 26.8% for H1, IGI chairman and CEO Wasef Jabsheh said their results demonstrated effective strategy and execution capabilities.
“We continue to see attractive rate increases and favourable market conditions across a number of business lines and territories providing excellent opportunities to further grow our portfolio,” Jabsheh said. “In the first six months of 2022, premium production continued at a steady pace with increases in most lines of business, resulting in 14% growth in the first half of 2022. This is on top of the 56% growth we saw in 2020 and 2021. We are well-positioned to benefit from this momentum for the foreseeable future.”
Gross written premiums were $176.4 million for Q2, up 6.2% from the same quarter last year, and $304.4 million for H1, up 14.1% from the same period last year. These increases came as a result of new business across all segments and most business lines, as well as rate increases on existing business.
The combined ratio for both Q2 and H1 also improved, landing at 74.8% for Q2 and 73.5% for H1. This, according to IGI, was due to an increase in net premiums earned, a favourable development of net loss reserves from prior accident years, and the currency devaluation impact on loss reserves denominated in Pound Sterling and Euro.
“Like others in our sector, we are monitoring the broader economic impacts of elevated inflationary pressures, rising interest rates and foreign exchange movements, which were evident in our results for the second quarter and first half of 2022,” Jabsheh said. “Notwithstanding these factors, our capital position remains very strong allowing us to continue to execute on our ‘underwriting first’ strategy to grow in the lines and territories where we see the most attractive returns. We remain optimistic about our future and delivering on our commitment to generate long-term shareholder value.”