International General Insurance Holdings Ltd. ((IGIC)) has held its Q4 earnings call. Read on for the main highlights of the call.
International General Insurance Holdings Ltd. (IGI) recently held its earnings call, revealing a year of strong financial performance marked by record achievements and growth, particularly in the U.S. market. Despite facing increased competition and a challenging loss environment, the company maintained a disciplined approach, suggesting a cautiously optimistic outlook for the future.
Outstanding Year in 2024
IGI reported impressive results for 2024, with solid performance across all key financial metrics. The company achieved a growth in book value per share of almost 20%, and when dividends are included, this figure rises to over 24%. This showcases IGI’s robust financial health and strategic growth.
Strong Financial Track Record
Since becoming a public company, IGI has demonstrated a strong financial track record. The company has doubled its underwriting portfolio and more than doubled its asset base, investments, and cash portfolio. This growth has resulted in an average core operating return on equity of 20.1%, highlighting IGI’s effective financial management.
Record Core Operating Income
In the fourth quarter, IGI achieved a record core operating income of $40.9 million, contributing to almost $145 million for the full year. This performance led to a core operating return on average equity of 24.2%, underscoring the company’s operational efficiency and profitability.
U.S. Market Growth
IGI’s expansion into the U.S. market has been a significant success, with the company writing over $120 million in gross premiums. This growth highlights the opportunities and potential for further expansion in this key market.
Investment Portfolio Performance
The company’s investments and cash portfolio grew by more than 14% during the year, with a fixed income yield of 4.3%. This generated almost $52 million in investment income, reflecting IGI’s strategic investment decisions and strong portfolio management.
Increased Competition and Rate Pressure
IGI faced increased competition and rate pressure across many lines and markets, which limited top-line growth to under 2% for the full year. Despite these challenges, the company maintained its focus on disciplined growth and capital management.
Challenges in Long Tail Segment
The long tail segment experienced a contraction of almost 10% for the year, with underwriting income down over 30%. This was due to expected market pressure and IGI’s disciplined risk selection approach.
Elevated Loss Environment
The year 2024 saw an elevated loss environment with natural disasters such as hurricanes, extreme flooding, and convective storms. However, IGI managed its share of these losses effectively, demonstrating resilience in challenging conditions.
California Wildfires and Risk Losses
The beginning of 2025 was marked by significant loss activity, including California wildfires, impacting the short tail and reinsurance lines. IGI’s response to these events will be crucial in maintaining its financial stability.
Forward-Looking Guidance
Looking ahead, IGI provided guidance that reflects a robust performance with a combined ratio of 77.8% for Q4 and 79.9% for the full year. The company achieved a record core operating income of $40.9 million in Q4, contributing to a total of almost $145 million for the year. Despite increased competition, gross premiums rose by nearly 6% in Q4 and 2% for the full year. IGI’s strategic focus on disciplined growth and capital management positions it well for future success.
In summary, International General Insurance Holdings Ltd. delivered a strong performance in 2024, marked by record achievements and growth, particularly in the U.S. market. Despite facing challenges such as increased competition and a challenging loss environment, IGI’s disciplined approach and solid financial foundation suggest a cautiously optimistic outlook for the future.