Reasons for the leap include the company continuing to benefit from sustained hard market conditions in many of its reinsurance and short-tail lines, and a better investment environment.
According to a statement released by IGI, the increase in net income was mainly motivated by an increase of $22.4 million in net premiums earned, and a positive movement of $15.8 million in net investment income. This was also partially offset by increased net loss and loss adjustment expenses, net policy acquisition expenses and general and administrative expenses, the statement said.
Data revealed in the report, available here, also shows that IGI’s return on average equity (annualised) has also risen significantly, from 23.5% in Q2 2022, to 36.1% for Q2 of 2023. Gross written premiums were also $199.6 million in Q2, representing an increase of 10.5% compared to the same quarter, 2022. IGI’s Q2 combined ratio improved by 1.4 points to 73.5%.
The report reveals that net income for H1 is currently $74.4 million, showing a rise of 68.3% on 2022. Furthermore, IGI’s underwriting income, a non-GAAP measure, also raised 24.6% to $50.2 million in Q2 of 2023 in comparison with $40.3 million for Q2 of 2022.
Executives said the rise has been motivated by several factors, most notably, higher net premiums earned offsetting a higher level of net loss as well as loss adjustment expenses and net policy acquisition expenses.
The loss ratio also improved by 1.5 points to 38.7% in Q2, largely the result of proportionately higher net premiums earned compared to the same period last year.
Speaking about the report results, IGI CEO, Waleed Jabsheh, said, “IGI produced another set of exceptional results across all key measures in the second quarter of 2023 as we continued to benefit from sustained hard market conditions in many of our reinsurance and short-tail lines, and a more favourable investment environment.
“The trends that we saw during the first quarter of 2023 continued throughout the second quarter resulting in gross premium growth of 10.5% in the second quarter and 21.6% for the first half of 2023.
“We are seeing plenty of opportunities to continue to show profitable growth in reinsurance and many short-tail markets where we have deep expertise, while being cautious in other short-tail and long-tail lines where there is more competitive pressure, and remaining focused on disciplined and selective underwriting.”
Jabsheh added, “All indications are that the positive trends in many short-tail and reinsurance lines that we have experienced over the last several quarters will remain for at least the near-term and we look forward to building on this momentum in the quarters ahead, and continuing to generate sustainable long-term value for our shareholders.”
Source: IGI
