International General Insurance Holdings Ltd. ((IGIC)) has held its Q2 earnings call. Read on for the main highlights of the call.
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International General Insurance Holdings Ltd. (IGI) recently held its earnings call, revealing a mixed yet strategically managed performance. The company reported strong net income and return on equity, alongside growth in book value, despite facing challenges such as foreign currency revaluation impacts and competitive pressures that led to a decrease in gross premiums. The reinsurance segment demonstrated significant growth, although the long-tail segment encountered difficulties. Overall, the call conveyed a neutral sentiment, balancing positive performance metrics with strategic management of the portfolio.
Strong Net Income and Return on Equity
IGI reported a robust net income of $34.1 million for Q2 and $61.4 million for the first half of 2025. This resulted in an impressive annualized return on average equity of 20.8% for Q2 and 18.6% for the first half, showcasing the company’s effective financial management and profitability.
Book Value and Shareholder Returns
The company’s book value per share increased by 3.4% to $15.36 in the first half of the year. Additionally, IGI returned a total of $77 million to shareholders through dividends and share repurchases, reflecting a commitment to delivering shareholder value.
Reinsurance Segment Growth
IGI’s reinsurance segment experienced a remarkable 33% growth in gross premiums for the first half of 2025. This growth was driven by strong renewal and new business, with underwriting income increasing by 55%, highlighting the segment’s robust performance.
Impact of Foreign Currency Revaluation
The revaluation of non-U.S. dollar loss reserves had a significant negative impact on IGI’s underwriting results, particularly affecting the combined ratio by approximately 21 points in Q2. This challenge underscores the complexities of operating in a global market.
Decrease in Gross Premiums
Gross premiums decreased by 8.7% in Q2, a reflection of competitive pressures in both short-tail and long-tail segments. This decline indicates the challenging market conditions IGI is navigating.
Underwriting Loss in Long-Tail Segment
The long-tail segment recorded an underwriting loss of $3 million in Q2, attributed to currency revaluation, higher losses, and a strategic contraction of the portfolio. This loss highlights the ongoing challenges within this segment.
Forward-Looking Guidance
Looking ahead, IGI remains optimistic about its strategic focus on high-margin opportunities, particularly in engineering and construction lines. Despite the challenges faced, the company achieved a combined ratio of 90.5% for Q2 and 92.4% for the first half, and it continues to prioritize growth in book value and shareholder returns.
In conclusion, International General Insurance Holdings Ltd.’s earnings call presented a balanced view of its financial performance. While the company faced challenges such as foreign currency impacts and competitive pressures, it demonstrated resilience through strong net income, return on equity, and strategic growth in its reinsurance segment. The company’s focus on high-margin opportunities and commitment to shareholder returns remain key takeaways from the call.