International General Insurance Holdings (IGI) reported net income of US$42.5 million for the first six months of 2026, absorbing what the company described as one of the largest single-event losses in its nearly 25-year history stemming from the war in the Middle East.
The Bermuda-based specialty insurer and reinsurer posted gross written premiums of US$398.9 million for H1 2026, up from US$394.3 million for the same period in 2025. Net premiums earned rose to US$236.2 million from US$227.8 million year-on-year. Q2 gross written premiums specifically rose 7.4% to US$201.7 million, driven by growth in both the Short-tail and Reinsurance segments.
The combined ratio for H1 2026 was 92.2%, compared to 92.4% for H1 2025, with catastrophe losses accounting for 19 percentage points of the loss ratio. For Q2 2026 alone, the combined ratio was 95.1% against 90.5% for Q2 2025, with CAT losses representing 18.8 percentage points, up from 9 percentage points in Q2 2025.
Net income for Q2 2026 was US$20.9 million, compared to US$34.1 million for Q2 2025, with the decline driven by elevated Middle East CAT losses and a large non-CAT energy loss recognised in the first quarter of the year. Underwriting income was US$29.5 million for Q2 2026 against US$35 million for the same period last year. For H1 2026, underwriting income rose to US$67.2 million from US$63 million, with all three segments generating underwriting profit despite the elevated loss environment.
IGI group president and CEO Waleed Jabsheh said the first-half results demonstrated the resilience of the business. "These results were delivered against a backdrop of significant loss activity, mostly stemming from war in the Middle East, which in aggregate represents one of the largest single event losses in IGI's almost 25-year history," he said. Jabsheh added that the company posted net income of US$42.5 million and a combined ratio of 92.2% for the half while returning US$72.9 million to shareholders. He also described the outcome as evidence that its strategy was working as designed.
The specialty short-tail segment, which represented 57% of gross written premiums in the first half of the year, bore the primary impact of Middle East war losses. Underwriting income for this segment fell to US$25.2 million from US$50.6 million in H1 2025.
The concentration of losses in specialty lines reflects a broader market pattern. A Morningstar DBRS report published in May found that insured losses from the Middle East conflict were largely contained within specialist markets - including marine war risk, aviation war cover, political violence, and energy lines - rather than the wider P&C sector.
The specialty long-tail segment swung from an underwriting loss of US$10.3 million in H1 2025 to underwriting income of US$22.9 million in H1 2026, driven by higher net premiums earned and lower net loss and loss adjustment expenses.
The reinsurance segment reported underwriting income of US$19.1 million for H1 2026, compared to US$22.7 million for the same period last year. That drop reflects lower net premiums earned after the non-renewal of two programmes in Q1 2026.
IGI's own non-GAAP reconciliation shows the underlying picture is somewhat more strained than the 92.2% headline combined ratio alone suggests. Stripping out both current-year catastrophe losses and favourable prior-year reserve development, the accident year combined ratio for H1 2026 was 105.2%, up from 101.0% in H1 2025 - meaning the current year's core underwriting result, before the benefit of releasing reserves from earlier years, actually deteriorated year-on-year. IGI's H1 2026 result also benefited from US$30.6 million of favourable prior-year reserve development, more than the US$19.6 million of favourable development recorded in H1 2025, meaning a larger share of this year's headline profitability was supported by releasing reserves set aside for older claims rather than current-year underwriting performance alone. That's a worthwhile distinction for brokers and cedants assessing IGI's pricing discipline going forward, since favourable reserve development of this scale is not guaranteed to recur at the same level in future periods.
Reinsurance segment gross written premiums rose to US$24.7 million in Q2 2026 from US$16.3 million in Q2 2025, with the increase driven by new business in India following IGI's registration approval to operate in GIFT City during the quarter. GIFT City, India's only operational international financial services centre, saw gross written premiums nearly double to US$1.13 billion in FY2026 as the number of reinsurers at the hub expanded.
Return on average equity (annualised) was 12.3% for H1 2026, against 18.6% for H1 2025. Core operating income was US$43.1 million for the first half, up from $42.2 million for the same period in 2025. Net investment income was US$31 million for H1 2026 against US$32.6 million for the prior year period, with the annualised investment yield on average total investments rising to 4.5% from 4.4%.
Total shareholders' equity stood at US$669.0 million at June 30, 2026, down from US$710.2 million at December 31, 2025. That decline reflects US$42.5 million in net income, offset by US$15.0 million in unrealised losses on available-for-sale investments, US$18.2 million in share buybacks (750,534 shares repurchased in H1 at an average price of US$24.30), and US$54.7 million in declared dividends. Book value per share fell to US$16.04 from US$16.91 over the same period.
IGI's board declared an ordinary common share dividend of US$0.075 per share for Q2 2026, payable on September 2 to shareholders of record as at August 18. IGI holds an "A" (Excellent)/Stable rating from AM Best and an "A" (Strong)/Stable rating from S&P Global Ratings.
