International General Insurance Holdings Ltd. (“IGI” or the
“Company”) (NASDAQ: IGIC) today reported financial results for the
fourth quarter and full year 2024.
Highlights for the fourth quarter and full year 2024
include:
(in millions of U.S. Dollars, except
percentages and per share information)
Quarter Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Gross written premiums
$174.6
$164.9
$700.1
$688.7
Net premiums earned
$120.6
$114.9
$483.1
$447.2
Underwriting income (1)
$48.8
$43.5
$187.5
$183.1
Net investment income
$13.6
$14.5
$53.9
$50.2
Net income
$30.0
$33.0
$135.2
$118.2
Combined ratio (1)
77.8%
81.8%
79.9%
76.7%
Earnings per share (diluted)
(2)
$0.65
$0.72
$2.98
$2.55
Return on average equity (3)
18.4%
26.1%
22.6%
24.8%
Core operating income (3)
$40.9
$30.0
$144.8
$133.8
Core operating earnings per share
(diluted) (3)
$0.89
$0.65
$3.19
$2.88
Core operating return on average
equity (3)
25.0%
23.7%
24.2%
28.1%
(1)
See “Supplementary Financial Information”
below.
(2)
See “Note to the Consolidated Financial
Statements (Unaudited)” below.
(3)
See the section titled “Non-GAAP Financial
Measures” below.
IGI Group President & CEO Mr. Waleed Jabsheh said, “We
posted strong fourth quarter financial results to round out another
excellent year in 2024. For the full year, we delivered a combined
ratio of 79.9%, and produced record net income and operating
income, leading to a return on average equity of 22.6% and a core
operating return on average equity of 24.2%. Most importantly, we
grew our book value per share by almost 20%.”
“We have a long history of generating value for our shareholders
across market cycles by actively and effectively managing our
capital focusing first on underwriting discipline, intelligent risk
selection and shifting to those lines and markets with the best
risk-adjusted returns and, secondly, by returning excess capital to
shareholders. In 2024, we returned close to $50 million to
shareholders in common share dividends and share repurchases.”
Results for the Periods ended December 31, 2024 and
2023
Net income for the quarter ended December 31, 2024 was $30.0
million compared to $33.0 million for the quarter ended December
31, 2023. Net income for the full year 2024 increased 14.4% to
$135.2 million compared to $118.2 million for the full year 2023.
The fourth quarter and full year for 2024 and 2023 were positively
impacted by underwriting income generated across all segments and
net investment income earned.
Return on average equity (annualized) was 18.4% for the fourth
quarter of 2024, compared to 26.1% for the fourth quarter of 2023
and 22.6% for the full year 2024, compared to 24.8% for the full
year 2023.
Core operating income, a non-GAAP measure, was $40.9 million for
the fourth quarter of 2024, compared to $30.0 million for the same
period in 2023. The core operating return on average equity
(annualized) was 25.0% for the fourth quarter of 2024 compared to
23.7% for the fourth quarter of 2023. Core operating income was
$144.8 million for the year ended December 31, 2024, compared to
$133.8 million for the same period in 2023. The core operating
return on average equity was 24.2% for the full year 2024, compared
to 28.1% for the full year 2023.
Underwriting income increased to $48.8 million for the fourth
quarter of 2024 compared to $43.5 million for the fourth quarter of
2023, primarily due to an increase in net premiums earned.
Underwriting income increased to $187.5 million for the full year
2024 compared to $183.1 million for the full year 2023, with an
increase in net premiums earned partially offset by a higher level
of net loss and loss adjustment expenses.
Gross written premiums increased by 5.9% to $174.6 million in
the quarter ended December 31, 2024, compared to $164.9 million for
the comparable period in 2023. The increase was primarily in the
Reinsurance Segment. Gross written premiums were $700.1 million for
the full year 2024 compared to $688.7 million for the full year
2023. The increase was driven by growth in the Reinsurance and
Short-tail segments, partially offset by a decrease in the
Long-tail Segment.
The loss ratio was 43.0% for the quarter ended December 31,
2024, compared to 47.6% for the same period in 2023. The loss ratio
for the full year 2024 was 44.7% compared to 42.3% for the full
year 2023.
The net policy acquisition expense ratio was 16.6% for the
fourth quarter of 2024 compared to 14.5% for the same quarter of
2023, and 16.5% for the full year 2024, compared to 16.8% for the
full year 2023.
The general & administrative expense ratio was 18.2% for the
fourth quarter of 2024, compared to 19.7% for the same quarter of
2023, and 18.7% for the full year 2024, compared to 17.6% for the
full year 2023. General and administrative expenses for the fourth
quarter of 2024 were $22.0 million compared to $22.6 million for
the same quarter of 2023 and increased to $90.4 million for the
full year 2024 from $78.9 million for the full year 2023. This
increase was largely driven by higher human resources costs in line
with the Company’s growth.
The combined ratio was 77.8% for the fourth quarter of 2024,
compared to 81.8% for the fourth quarter of 2023, and 79.9% for the
full year 2024, compared to 76.7% for the full year 2023.
Segment Results
The Specialty Short-tail Segment, which represented 59%
of the Company’s gross written premiums for the year ended December
31, 2024, generated gross written premiums of $106.2 million for
the fourth quarter of 2024, compared to $105.2 million for the
fourth quarter of 2023. Net premiums earned were $62.4 million for
the fourth quarter of 2024, compared to $62.5 million for the same
quarter of 2023. Underwriting income was $21.0 million for the
fourth quarter of 2024, compared to $27.2 million for the same
quarter of 2023, with the decrease primarily driven by a higher
level of net loss and loss adjustment expenses during the fourth
quarter of 2024, compared to the same period in 2023.
Gross written premiums for the full year 2024 were $412.3
million, an increase of 2.9% compared to $400.7 million for the
full year 2023. Net premiums earned for the full year 2024 were
$256.0 million, an increase of 8.4% compared to $236.2 million for
the full year 2023. Underwriting income was $112.2 million for the
full year 2024, an increase of 4.8% compared to $107.1 million for
the full year 2023, primarily due to a higher level of net premiums
earned, partially offset by a higher level of net loss and loss
adjustment expenses for the full year 2024 compared to 2023.
The Specialty Long-tail Segment, which represented
29% of the Company’s gross written premiums for the year ended
December 31, 2024, recorded gross written premiums of $63.6 million
for the fourth quarter of 2024, compared to $64.6 million for the
fourth quarter of 2023. Net premiums earned for the quarter ended
December 31, 2024 were $35.8 million, a decrease of 4.8% compared
to $37.6 million for the same quarter of 2023. This segment
recorded an underwriting income of $14.3 million in the fourth
quarter of 2024, compared to $7.0 million in the fourth quarter of
2023, largely due to a lower level of net loss and loss adjustment
expenses for the fourth quarter of 2024 compared to the same period
in 2023.
Gross written premiums for the full year 2024 were $204.4
million, a decrease of 9.9% compared to $226.9 million for the full
year 2023. Net premiums earned for the year ended December 31, 2024
were $146.3 million, a decrease of 7.3% compared to $157.8 million
for the full year 2023, primarily as a result of the lower level of
gross written premiums. Underwriting income was $39.5 million for
the full year 2024, a decrease of 31.2% compared to $57.4 million
for the full year 2023, primarily due to a lower level of net
premiums earned and a higher level of net loss and loss adjustment
expenses for the full year 2024 compared to 2023.
The Reinsurance Segment, which represented 12% of the
Company’s gross written premiums for the year ended December 31,
2024, recorded gross written premiums of $4.8 million compared to
negative $4.9 million for the fourth quarter of 2023 which was
impacted by prior period premium adjustments. Net premiums earned
for the quarter ended December 31, 2024 were $22.4 million, an
increase of $7.6 million compared to $14.8 million for the same
quarter in 2023. Underwriting income increased to $13.5 million for
the fourth quarter of 2024, compared to $9.3 million for the fourth
quarter of 2023, primarily the result of the higher level of net
premiums earned, partially offset by a higher level of net loss and
loss adjustment expenses, and net policy acquisition expenses,
during the fourth quarter of 2024.
Gross written premiums for the full year 2024 were $83.4
million, an increase of 36.5% compared to $61.1 million for the
full year 2023. Net premiums earned for the full year 2024 were
$80.8 million, an increase of 51.9% compared to $53.2 million for
the full year 2023, primarily as a result of the higher level of
gross written premiums. Underwriting income increased to $35.8
million for the full year 2024, compared to $18.6 million for the
full year 2023, primarily due to a higher level of net premiums
earned partially offset by a higher level of net loss and loss
adjustment expenses and net policy acquisition expenses for the
full year 2024 compared to 2023.
Investment Results
Investment income increased by 19.8% to $13.9 million in the
fourth quarter of 2024, compared to the fourth quarter of 2023,
driven by higher yields on a larger fixed income portfolio. The
annualized investment yield on average total investments and cash
and cash equivalents was 4.4% for the fourth quarter of 2024, up
from 4.3% in the corresponding period of 2023. Net investment
income was $13.6 million for the fourth quarter of 2024, compared
to $14.5 million for the fourth quarter of 2023.
Investment income increased 28.5% to $51.9 million for the full
year 2024 as compared to $40.4 million for the full year 2023 for
the same reasons described above. This represented an investment
yield of 4.3% for the full year 2024, compared to a 3.9% investment
yield for the full year 2023. Net investment income increased to
$53.9 million for the full year 2024, compared to $50.2 million for
the full year 2023.
Net Foreign Exchange (Loss) Gain
The net foreign exchange loss for the fourth quarter of 2024 was
$12.9 million, compared to a gain of $8.5 million for the fourth
quarter of 2023, both of which primarily represent currency
revaluation movements. The fourth quarter of 2024 experienced a
negative currency movement in the Company’s major transactional
currencies (mainly the UK Pound Sterling and the Euro) against the
U.S. Dollar, compared to positive currency movement for the fourth
quarter of 2023.
The net foreign exchange loss for the full year of 2024 was $8.1
million, compared to a gain of $5.1 million for the full year of
2023.
Change in Fair Value of Derivative Financial
Liabilities
The change in fair value of derivative financial liabilities for
the fourth quarter of 2024 was $nil compared to $6.7 million for
the same quarter of 2023 and was $4.9 million for the full year
2024 compared to $27.3 million for the full year 2023. These
changes were driven by the final tranche of earnout shares that
vested during the third quarter of 2024.
Income tax
For the fourth quarter and full year of 2024, an income tax
credit of $4.3 million and $2.8 million, respectively was recorded
compared to an income tax expense of $1.6 million and $7.8 million
for the fourth quarter and full year of 2023, respectively. This
change from an expense to a credit was largely driven by deferred
tax assets recognized in 2024 with respect to two subsidiaries.
Total Shareholders’ Equity
Total shareholders’ equity at December 31, 2024 was $654.8
million, compared to $540.5 million at December 31, 2023. The
movement in total shareholders’ equity during the quarter and year
ended December 31, 2024 is illustrated below:
(in millions of U.S. Dollars)
Quarter Ended December
31, 2024
Year Ended December 31,
2024
Total Shareholders’ equity at beginning
of period
$651.6
$540.5
Net income
$30.0
$135.2
Unrealized (losses) gains on
available-for-sale investments
($21.8
)
$2.0
Change in foreign currency translation
reserve
($0.1
)
-
Purchase of treasury shares (a)
($4.9
)
($23.2
)
Issuance of common shares under
share-based compensation plan
$1.2
$4.6
Vesting of earnout shares
-
$22.2
Cash dividends declared
($1.2
)
($26.5
)
Total shareholders’ equity at December
31, 2024
$654.8
$654.8
Book value per share was $14.85 at
December 31, 2024, reflecting growth of 19.8% over book value per
share of $12.40 at December 31, 2023.
(a)
In the fourth quarter of 2024, the Company
repurchased approximately 220,354 common shares at an average price
per share of $22.37. During the full year of 2024, the Company
repurchased 1,476,621 common shares at an average price per share
of $15.68. At December 31, 2024, the Company had approximately 2.3
million common shares remaining under its existing 7.5 million
common share repurchase authorization.
International General Insurance Holdings Ltd.
Consolidated Statements of Income (Unaudited)
Quarter Ended December
31,
Year Ended December
31,
(in millions of U.S. Dollars except per
share data)
2024
2023
2024
2023
Gross written premiums
$174.6
$164.9
$700.1
$688.7
Ceded written premiums
($56.0
)
($49.3
)
($210.6
)
($191.5
)
Net written premiums
$118.6
$115.6
$489.5
$497.2
Net change in unearned premiums
$2.0
($0.7
)
($6.4
)
($50.0
)
Net premiums earned
$120.6
$114.9
$483.1
$447.2
Investment income
$13.9
$11.6
$51.9
$40.4
Net realized gain on investments
$0.4
$2.0
$0.6
$6.7
Net unrealized (loss) gain on
investments
($0.8
)
$0.6
$1.4
$2.7
Change in allowance for expected credit
losses on investments
$0.1
$0.3
-
$0.4
Net investment income
$13.6
$14.5
$53.9
$50.2
Other revenues
$1.0
$0.1
$2.0
$1.9
Total revenues
$135.2
$129.5
$539.0
$499.3
Expenses
Net loss and loss adjustment expenses
($51.8
)
($54.7
)
($216.1
)
($189.1
)
Net policy acquisition expenses
($20.0
)
($16.7
)
($79.5
)
($75.0
)
General and administrative expenses
($22.0
)
($22.6
)
($90.4
)
($78.9
)
Change in allowance for expected credit
losses on receivables
$0.3
($2.0
)
($1.5
)
($2.5
)
Change in fair value of derivative
financial liabilities (1)
-
($6.7
)
($4.9
)
($27.3
)
Other expenses
($3.1
)
($0.7
)
($6.1
)
($5.6
)
Net Foreign exchange (loss) gain
($12.9
)
$8.5
($8.1
)
$5.1
Total expenses
($109.5
)
($94.9
)
($406.6
)
($373.3
)
Income before income taxes
$25.7
$34.6
$132.4
$126.0
Income tax credit (expense)
$4.3
($1.6
)
$2.8
($7.8
)
Net income for the period
$30.0
$33.0
$135.2
$118.2
Diluted earnings per share attributable
to equity holders (2)
$0.65
$0.72
$2.98
$2.55
(1)
The change in fair value of derivative
financial liabilities has been reclassified from Total revenues for
the prior year to conform to the current presentation.
(2)
See “Note to the Consolidated Financial
Statements (Unaudited)”.
International General Insurance Holdings Ltd.
Consolidated Balance Sheets (Unaudited)
(in millions of U.S. Dollars)
As at December 31,
2024
As at December 31,
2023
ASSETS
Investments
Fixed maturity securities
available-for-sale, at fair value
$1,002.1
$765.6
Fixed maturity securities held to
maturity
$2.0
$2.0
Equity securities, at fair value
$29.0
$26.2
Other investments, at fair value
$12.3
$11.1
Short-term investments
$89.5
$42.2
Term deposits
$0.7
$105.1
Equity-method investments measured at fair
value
$1.9
$3.5
Total investments
$1,137.5
$955.7
Cash and cash equivalents
$155.2
$177.0
Accrued investment income
$15.3
$11.5
Premiums receivable
$256.0
$245.2
Reinsurance recoverables
$225.7
$223.1
Ceded unearned premiums
$113.3
$98.0
Deferred policy acquisition costs, net of
ceding commissions
$67.1
$65.3
Deferred tax assets, net
$7.0
$4.1
Other assets
$60.5
$58.0
TOTAL ASSETS
$2,037.6
$1,837.9
LIABILITIES
Reserve for unpaid loss and loss
adjustment expenses
$794.2
$712.1
Unearned premiums
$465.3
$443.5
Insurance and reinsurance payables
$90.1
$89.7
Other liabilities
$33.2
$34.8
Derivative financial liability
-
$17.3
TOTAL LIABILITIES
$1,382.8
$1,297.4
SHAREHOLDERS’ EQUITY
Common shares at par value
$0.5
$0.4
Additional paid-in capital
$144.9
$137.6
Treasury shares
($3.7
)
-
Accumulated other comprehensive loss, net
of taxes
($18.6
)
($20.6
)
Retained earnings
$531.7
$423.1
TOTAL SHAREHOLDERS’ EQUITY
$654.8
$540.5
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$2,037.6
$1,837.9
International General Insurance Holdings Ltd.
Supplementary Financial Information – Combined Ratio
(Unaudited)
Quarter Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Loss ratio (a)
43.0%
47.6%
44.7%
42.3%
Net policy acquisition expense ratio
(b)
16.6%
14.5%
16.5%
16.8%
General and administrative expense ratio
(c)
18.2%
19.7%
18.7%
17.6%
Expense ratio (d)
34.8%
34.2%
35.2%
34.4%
Combined ratio (e)
77.8%
81.8%
79.9%
76.7%
(a)
Represents net loss and loss adjustment
expenses as a percentage of net premiums earned.
(b)
Represents net policy acquisition expenses
as a percentage of net premiums earned.
(c)
Represents general and administrative
expenses as a percentage of net premiums earned.
(d)
Represents the sum of the net policy
acquisition expense ratio and the general and administrative
expense ratio.
(e)
Represents the sum of the loss ratio and
the expense ratio.
International General Insurance Holdings Ltd.
Supplementary Financial Information – Book Value per Share
(Unaudited)
(in millions of U.S. Dollars, except share
and per share data)
As at December 31,
2024
As at December 31,
2023
Common shares outstanding (in
millions)*
45.1
46.1
Minus: Unvested shares (in millions)**
1.0
2.5
Number of vested common outstanding
shares (in millions) (a)
44.1
43.6
Total shareholders’ equity (b)
$654.8
$540.5
Book value per share (b)/(a)
$14.85
$12.40
* Common shares issued and outstanding as at December 31, 2024
are as follows:
No. of shares as at
December 31, 2024
Vested common shares as of December 31,
2023
43,584,549
Treasury shares balance as of December 31,
2023
3,800
Vested restricted share awards
397,293
Vested earnout shares
1,612,500
Cancelled treasury shares
(1,326,410)
Treasury shares balance as of December 31,
2024
(154,011)
Total vested common shares as of
December 31, 2024
44,117,721
Unvested restricted share awards as of
December 31, 2024
991,215
Total common shares outstanding as of
December 31, 2024
45,108,936
** 3,012,500 Earnout Shares were
originally subject to vesting at stock prices ranging from $11.50
to $15.25, and were entitled to dividends and voting rights, but
were non-transferable by their holders until they vested. As of
December 31, 2024, the vesting conditions attached to Earnout
Shares have been met for all tranches totaling 3,012,500 shares,
and these shares are now included in the weighted average number of
common shares outstanding for the calculation of diluted earnings
per share. Restricted Share Awards were issued pursuant to the
Company’s 2020 Omnibus Incentive Plan and beneficiaries are
entitled to dividends and voting rights. However, the Restricted
Share Awards are non-transferable by their holders until they vest
per the respective Restricted Share Award Agreements. At December
31, 2024, the vesting conditions attached to the unvested
Restricted Share Awards to employees have not been met.
International General Insurance Holdings Ltd.
Supplementary Financial Information - Segment Results
(Unaudited) Segment information for IGI’s consolidated
operations is as follows:
For the quarter ended December 31,
2024
(in millions of U.S. Dollars)
Specialty Long-tail
Specialty Short-tail
Reinsurance
Total
Underwriting revenues
Gross written premiums
$63.6
$106.2
$4.8
$174.6
Ceded written premiums
($27.9)
($28.1)
-
($56.0)
Net written premiums
$35.7
$78.1
$4.8
$118.6
Net change in unearned premiums
$0.1
($15.7)
$17.6
$2.0
Net premiums earned
$35.8
$62.4
$22.4
$120.6
Net loss and loss adjustment expenses
($14.5)
($31.4)
($5.9)
($51.8)
Net policy acquisition expenses
($7.0)
($10.0)
($3.0)
($20.0)
Underwriting income
$14.3
$21.0
$13.5
$48.8
For the quarter ended December 31,
2023
(in millions of U.S. Dollars)
Specialty Long-tail
Specialty Short-tail
Reinsurance
Total
Underwriting revenues
Gross written premiums
$64.6
$105.2
($4.9)
$164.9
Ceded written premiums
($28.0)
($21.3)
-
($49.3)
Net written premiums
$36.6
$83.9
($4.9)
$115.6
Net change in unearned premiums
$1.0
($21.4)
$19.7
($0.7)
Net premiums earned
$37.6
$62.5
$14.8
$114.9
Net loss and loss adjustment expenses
($24.1)
($26.7)
($3.9)
($54.7)
Net policy acquisition expenses
($6.5)
($8.6)
($1.6)
($16.7)
Underwriting income
$7.0
$27.2
$9.3
$43.5
International General Insurance Holdings Ltd.
Supplementary Financial Information - Segment Results
(Unaudited)
For the Year ended December 31,
2024
(in millions of U.S. Dollars)
Specialty Long-tail
Specialty Short-tail
Reinsurance
Total
Underwriting revenues
Gross written premiums
$204.4
$412.3
$83.4
$700.1
Ceded written premiums
($68.2)
($140.9)
($1.5)
($210.6)
Net written premiums
$136.2
$271.4
$81.9
$489.5
Net change in unearned premiums
$10.1
($15.4)
($1.1)
($6.4)
Net premiums earned
$146.3
$256.0
$80.8
$483.1
Net loss and loss adjustment expenses
($78.7)
($103.3)
($34.1)
($216.1)
Net policy acquisition expenses
($28.1)
($40.5)
($10.9)
($79.5)
Underwriting income
$39.5
$112.2
$35.8
$187.5
For the Year ended December 31,
2023
(in millions of U.S. Dollars)
Specialty Long-tail
Specialty Short-tail
Reinsurance
Total
Underwriting revenues
Gross written premiums
$226.9
$400.7
$61.1
$688.7
Ceded written premiums
($73.9)
($117.6)
-
($191.5)
Net written premiums
$153.0
$283.1
$61.1
$497.2
Net change in unearned premiums
$4.8
($46.9)
($7.9)
($50.0)
Net premiums earned
$157.8
$236.2
$53.2
$447.2
Net loss and loss adjustment expenses
($69.2)
($93.1)
($26.8)
($189.1)
Net policy acquisition expenses
($31.2)
($36.0)
($7.8)
($75.0)
Underwriting income
$57.4
$107.1
$18.6
$183.1
International General Insurance Holdings Ltd.
Supplementary Financial Information – Investment Yield
(Unaudited)
The following table shows the investment yield calculation:
Quarter Ended
December 31,
Year Ended
December 31,
(in millions of U.S. Dollars, except
percentages)
2024
2023
2024
2023
Investment income
$13.9
$11.6
$51.9
$40.4
Average total investments and cash and
cash equivalents(i)
$1,287.9
$1,076.3
$1,215.2
$1,029.1
Investment Yield (annualized)
4.4%
4.3%
4.3%
3.9%
(i)
This represents the average of the month
end fair value balances of total investments and cash and cash
equivalents in each reporting period.
International General Insurance Holdings Ltd. Note to
the Consolidated Financial Statements (Unaudited)
(1) Represents net income for the period available to common
shareholders divided by the weighted average number of vested
common shares – diluted calculated as follows:
Quarter Ended
December 31,
Year Ended
December 31,
(in millions of U.S. Dollars, except share
and per share information)
2024
2023
2024
2023
Net income for the period
$30.0
$33.0
$135.2
$118.2
Minus: Net income attributable to the
earnout shares
-
$2.0
$1.4
$7.4
Minus: Dividends attributable to
restricted share awards
-
-
$0.6
-
Net income available to common
shareholders (a)
$30.0
$31.0
$133.2
$110.8
Weighted average number of shares –
diluted (in millions of shares) (b)*
46.2
43.1
44.7
43.5
Diluted earnings per share attributable
to equity holders (a/b)
$0.65
$0.72
$2.98
$2.55
* The weighted average number of common
shares refers to the number of common shares calculated after
adjusting for the changes in issued and outstanding common shares
over a reporting period.
International General Insurance Holdings Ltd. Non-GAAP
Financial Measures
In presenting IGI’s financial results, management has included
and discussed certain non-GAAP financial measures. We believe that
these non-GAAP measures, which may be defined and calculated
differently by other companies, help to explain and enhance the
understanding of our results of operations. However, these measures
should not be viewed as a substitute for those determined in
accordance with U.S. GAAP.
Reconciliation of Combined Ratio to Accident Year Combined
Ratio Prior to CAT Losses
The table below illustrates the reconciliation of the combined
ratio on a financial and accident year basis.
Quarter Ended
December 31,
Year Ended
December 31,
(In millions of U.S. Dollars, except
percentages)
2024
2023
2024
2023
Net premiums earned (a)
$120.6
$114.9
$483.1
$447.2
Net loss and loss adjustment expenses
(b)
($51.8)
($54.7)
($216.1)
($189.1)
Net policy acquisition expenses (c)
($20.0)
($16.7)
($79.5)
($75.0)
General and administrative expenses
(d)
($22.0)
($22.6)
($90.4)
($78.9)
Prior years unfavorable (favorable)
development (e)
($2.8)
$3.3
($37.2)
($39.3)
Current accident year catastrophe (“CAT”)
losses (f)*
$7.2
$9.5
$44.6
$38.3
Combined ratio ((b+c+d)/a)**
77.8%
81.8%
79.9%
76.7%
Minus: Prior years unfavorable (favorable)
development (e/a)
(2.3%)
2.9%
(7.7%)
(8.8%)
Accident year combined ratio
80.1%
78.9%
87.6%
85.5%
Minus: CAT losses on an accident year
basis (f/a)
6.0%
8.3%
9.2%
8.6%
Accident year combined ratio prior to
CAT losses
74.1%
70.6%
78.4%
76.9%
*The CAT losses for the quarter ended
December 31, 2024 are primarily attributable to $6.7 million of
combined reserves recorded for Hurricane Helene in the southeastern
United States (in the Short-tail and Reinsurance Segments) and
flooding in the United Arab Emirates, Oman and the United Kingdom
(in the Short-tail and Reinsurance Segments).
The CAT losses for the quarter ended
December 31, 2023 are primarily attributable to $6.9 million of
combined losses recorded for the earthquake in Turkey (in the
Reinsurance Segment), flash floods in India, Hurricane Otis in
Mexico and the Hawaii Wildfires (all in the Short-tail
Segment).
The CAT losses for the year ended December
31, 2024 are primarily attributable to $18.0 million of reserves
recorded for the earthquake in Taiwan (in the Short-tail and
Reinsurance segments) and flooding in the United Arab Emirates,
Oman, Southern Germany and Morocco (in all segments), Hurricane
Helene in the southeastern United States (in the Short-tail and
Reinsurance Segments) and a general CAT reserve of $13.9
million.
The CAT losses for the year ended December
31, 2023 are primarily attributable to $21.0 million of combined
losses recorded for the earthquake in Turkey (in the Reinsurance
Segment), flooding in New Zealand from Cyclone Gabrielle, flash
floods in India, Hurricane Otis in Mexico, adverse weather
conditions in Oman and the Hawaii Wildfires (all in the Short-tail
Segment), and a general CAT reserve of $9.0 million.
** See “Supplementary Financial
Information - Combined Ratio (Unaudited)”
International General Insurance Holdings Ltd. Non-GAAP
Financial Measures
The table below illustrates the split of loss ratio between
current accident year, current year CAT losses, which are included
in ‘Net loss and loss adjustment expenses’, and prior years’ loss
development as follows:
Quarter Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
(in millions of U.S. Dollars, except
percentages)
Net loss and loss adjustment
expenses
% of net premiums earned
Net loss and loss adjustment
expenses
% of net premiums earned
Net loss and loss adjustment
expenses
% of net premiums earned
Net loss and loss adjustment
expenses
% of net premiums earned
Current year net incurred claims and loss
ratio
$51.8
43.0%
$54.7
47.6%
$216.1
44.7%
$189.1
42.3%
Minus: Current accident year CAT
losses
$7.2
6.0%
$9.5
8.3%
$44.6
9.2%
$38.3
8.6%
Minus: Effect of prior years’
development
($2.8)
(2.3%)
$3.3
2.9%
($37.2)
(7.7%)
($39.3)
(8.8%)
Current Accident year (Prior to CAT
losses)
$47.4
39.3%
$41.9
36.4%
$208.7
43.2%
$190.1
42.5%
Core Operating Income
Core operating income measures the performance of our operations
without the influence of after-tax gains or losses on investments
and foreign currencies and other items as noted in the table below.
We exclude these items from our calculation of core operating
income because the amounts of these gains and losses are heavily
influenced by, and fluctuate in part according to, economic and
other factors external to the Company and/or transactions or events
that are typically not a recurring part of, and are largely
independent of, our core underwriting activities and including them
distorts the analysis of trends in our operations. We believe the
reporting of core operating income enhances an understanding of our
results by highlighting the underlying profitability of our core
insurance operations. Our underwriting profitability is impacted by
earned premiums, the adequacy of pricing, and the frequency and
severity of losses. Over time, such profitability is also
influenced by underwriting discipline, which seeks to manage the
Company’s exposure to loss through favorable risk selection and
diversification, IGI’s management of claims, use of reinsurance and
the ability to manage the expense ratio, which the Company
accomplishes through the management of acquisition costs and other
underwriting expenses.
In addition to presenting net income for the period determined
in accordance with U.S. GAAP, we believe that showing “core
operating income” provides investors with a valuable measure of
profitability and enables investors, rating agencies and other
users of our financial information to analyze the Company’s results
in a similar manner to the way in which Management analyzes the
Company’s underlying business performance.
International General Insurance Holdings Ltd. Non-GAAP
Financial Measures
Core operating income is calculated by the addition or
subtraction of certain line items reported in the “Consolidated
Statements of Income” from net income for the period and tax
effecting each line item (resulting in each item being a non-GAAP
measure), as illustrated in the table below:
Quarter Ended
December 31,
Year Ended
December 31,
(in millions of U.S. Dollars, except for
percentages and per share data)
2024
2023
2024
2023
Net income for the period
$30.0
$33.0
$135.2
$118.2
Reconciling items between net income for
the period and core operating income:
Net realized gain on investments
($0.4)
($2.0)
($0.6)
($6.7)
Net unrealized loss (gain) on
investments
$0.8
($0.6)
($1.4)
($2.7)
Tax impact of net unrealized loss (gain)
on investments(i)
($0.1)
$0.1
-
$0.1
Change in allowance for expected credit
losses on investments
($0.1)
($0.3)
-
($0.4)
Tax impact of change in allowance for
expected credit losses on investments(i)
$0.1
$0.1
-
-
Change in fair value of derivative
financial liabilities
-
$6.7
$4.9
$27.3
Expense related to conversion of warrants
into cash(ii)
-
($0.1)
-
$1.9
Net foreign exchange loss (gain)
$12.9
($8.5)
$8.1
($5.1)
Tax impact of net foreign exchange loss
(gain)(i)
($2.3)
$1.6
($1.4)
$1.2
Core operating income
$40.9
$30.0
$144.8
$133.8
Average shareholders’ equity (iii)
$653.2
$505.3
$597.6
$475.7
Core operating return on average equity
(annualized) (iv) and (vi)
25.0%
23.7%
24.2%
28.1%
Diluted core operating earnings per share
(v)
$0.89
$0.65
$3.19
$2.88
Return on average equity (annualized)
(vi)
18.4%
26.1%
22.6%
24.8%
i.
The tax impact was calculated by applying
the prevailing corporate tax rate of each subsidiary to the gross
value of the relevant reconciling items as recognized separately by
the subsidiaries on a standalone basis.
ii.
This expense is included in the ‘Other
expenses’ line item in the condensed consolidated statements of
income.
iii.
Represents the total shareholders’ equity
at the end of the reporting period plus the total shareholders’
equity as of the beginning of the reporting period, divided by
2.
iv.
Represents annualized core operating
income for the period divided by average shareholders’ equity.
v.
Represents core operating income
attributable to vested equity holders divided by the weighted
average number of vested common shares – diluted as follows:
Quarter Ended
December 31,
Year Ended
December 31,
(in millions of U.S. Dollars, except per
share information)
2024
2023
2024
2023
Core operating income for the period
$40.9
$30.0
$144.8
$133.8
Minus: Core operating income attributable
to earnout shares
-
$1.8
$1.5
$8.5
Minus: Dividends attributable to
restricted share awards
-
-
$0.6
-
Core operating income available to
common shareholders (a)
$40.9
$28.2
$142.7
$125.3
Weighted average number of shares –
diluted (in millions of shares) (b)
46.2
43.1
44.7
43.5
Diluted core operating earnings per
share (a/b)
$0.89
$0.65
$3.19
$2.88
vi.
Return on average equity (annualized) and
core operating return on average equity (annualized), both non-GAAP
financial measures, represent the returns generated on common
shareholders’ equity during the period.
The Company has posted a Fourth Quarter 2024 investor
presentation deck on its website at www.iginsure.com in the
Investors section under the Presentations & Webcasts tab.
About IGI:
IGI is an international specialty risks commercial insurer and
reinsurer underwriting a diverse portfolio of specialty lines.
Established in 2001, IGI has a worldwide portfolio of energy,
property, general aviation, construction & engineering, ports
& terminals, marine cargo, marine trades, contingency,
political violence, financial institutions, general third-party
liability (casualty), legal expenses, professional indemnity,
D&O, marine liability and reinsurance treaty business.
Registered in Bermuda, with operations in Bermuda, London, Malta,
Dubai, Amman, Oslo, Kuala Lumpur and Casablanca, IGI aims to
deliver outstanding levels of service to clients and brokers. IGI
is rated “A” (Excellent)/Stable by AM Best and “A-”(Strong)/Stable
by S&P Global Ratings. For more information about IGI, please
visit www.iginsure.com.
Forward-Looking Statements:
This press release contains “forward-looking statements” within
the meaning of the “safe harbour” provisions of the Private
Securities Litigation Reform Act of 1995. The expectations,
estimates, and projections of the business of IGI may differ from
its actual results and, consequently, you should not rely on
forward-looking statements as predictions of future events. Words
such as “expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believe,” “predict,” “potential,” “continue,” “commitment,”
“able,” “success” and similar expressions are intended to identify
such forward-looking statements. Forward-looking statements
contained in this press release may include, but are not limited
to, our expectations regarding the performance of our business, our
financial results, our liquidity and capital resources, the outcome
of our strategic initiatives, our expectations regarding other
market conditions, and our growth prospects. These forward-looking
statements involve significant risks and uncertainties that could
cause the actual results to differ materially from the expected
results. Most of these factors are outside of the control of IGI
and are difficult to predict. Factors that may cause such
differences include, but are not limited to: (1) changes in demand
for IGI’s services together with the possibility that IGI may be
adversely affected by other economic, business, and/or competitive
factors globally and in the regions in which it operates; (2)
competition, the ability of IGI to grow and manage growth
profitably, and IGI’s ability to retain its key employees; (3)
changes in applicable laws or regulations; (4) risks related to
fluctuations in global currencies including the UK Pound Sterling,
the Euro, and the U.S. Dollar; (5) the outcome of any legal
proceedings that may be instituted against the Company; (6) the
effects of the war between Russia and Ukraine; (7) the effects of
the hostilities between Israel, Hamas, Hezbollah, and Iran; (8) the
inability to maintain the listing of the Company’s common shares on
Nasdaq; and (9) other risks and uncertainties indicated in IGI’s
filings with the SEC. The foregoing list of factors is not
exclusive. In addition, forward-looking statements are inherently
based on various estimates and assumptions that are subject to the
judgment of those preparing them and are also subject to
significant economic, competitive, industry and other uncertainties
and contingencies, all of which are difficult or impossible to
predict and many of which are beyond the control of IGI. There can
be no assurance that IGI’s financial condition or results of
operations will be consistent with those set forth in such
forward-looking statements. You should not place undue reliance
upon any forward-looking statements, which speak only as of the
date made. IGI does not undertake or accept any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements to reflect any change in its
expectations or any change in events, conditions, or circumstances
on which any such statement is based except to the extent that is
required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250225822479/en/
IGI Contacts: Investors: Robin Sidders, Head of Investor
Relations M: + 44 (0) 7384 514785 Email:
robin.sidders@iginsure.com
Media: Aaida Abu Jaber, AVP PR & Marketing T:
+96265662082 Ext. 407 M: +962770415540 Email:
aaida.abujaber@iginsure.com
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