Total revenue has declined since the same period in 2023
Insurance News
By
International General Insurance Holdings (IGI) has released its financial results for the second quarter and first six months of 2024, showing mixed performance across various metrics.
For the quarter ending June 30, 2024, IGI reported net profit of $32.8 million, down from $40.5 million in the same period in 2023. This decrease in net income was due to underwriting income in all categories, with net premiums experiencing a net loss. and loss adjustment costs, and total policy acquisition costs.
Annual return on average equity was 22.9%, compared to 36.1% in the second quarter of 2023.
Non-GAAP operating income was $33.2 million for the quarter, compared to $38.1 million last year. Core operating return on average equity (annualized) was 23.2%, down from 34.0% in the second quarter of 2023.
Total written premiums for the quarter were $205.6 million, a 3.0% increase from $199.6 million in the second quarter of 2023, driven by growth in the Reinsurance and Short-tail segments. The average loss for the quarter increased to 45.1%, compared to 38.7% in the same period last year. Average policy acquisition costs totaled 17.7%, down from 18.9% in the second quarter of 2023.
Average general and administrative expenses increased to 18.4%, from 15.9% last year, primarily due to higher human resources costs related to the company's growth. The combined ratio was 81.2%, compared to 73.5% in the second quarter of 2023.
For the six months ending June 30, 2024, IGI's net income was $70.7 million, down from $74.4 million in the same period of 2023. Underwriting income increased 8.1% to $97.3 million, driven by higher premiums earned on portfolio growth, slightly higher losses and loss adjustment costs. The annualized return on average equity was 25.1%, down from 33.9% in the first six months of 2023.
Core operating income for the first half of the year was $73.3 million, up from $67.5 million a year ago. Core operating profit on average dividends (annualized) was 26.0%, compared to 30.8% in the first quarter of 2023.
Total written premiums for the first six months were $387.2 million, a 3.7% increase from $373.5 million in the same period of 2023. The loss ratio remained stable at 42.0%, compared to 41.9% last year. The average policy acquisition rate was 16.8%, down from 17.8% in the first half of 2023.
Average general and administrative expenses increased to 18.9%, from 16.0% last year, reflecting higher labor costs. The combined rate for the first half of 2024 was 77.7%, up from 75.7% in the same period of 2023.
IGI President and CEO Waleed Jabsheh (pictured above) noted that the company had a strong quarter, leading to a positive first half of 2024.
“Market conditions continue to be mixed with opportunities for growth in certain segments difficult to find. This is exactly the type of environment where risk selection and discipline are most important and where we can continue to demonstrate the value of our underwriting strategy and the benefits of our growing and diversified portfolio,” said Jabsheh.
What are your thoughts on this matter? Please feel free to share your comments below.
Keep up with the latest news and events
Join our mailing list, it's free!
Source link
