IGI Reports Fourth Quarter and Full Year 2024 Unaudited Financial Results
IGI (NASDAQ: IGIC) reported strong financial results for Q4 and full year 2024. The company achieved a combined ratio of 79.9% and delivered record net income of $135.2 million for FY2024, a 14.4% increase from $118.2 million in 2023.
Key highlights include:
- Q4 2024 net income: $30.0 million
- Return on average equity: 22.6% for FY2024
- Gross written premiums increased 5.9% to $174.6 million in Q4 2024
- Book value per share grew by almost 20%
- Total shareholders' equity reached $654.8 million by December 31, 2024
The company returned nearly $50 million to shareholders through dividends and share repurchases in 2024. Investment income increased 28.5% to $51.9 million for FY2024, with an investment yield of 4.3%.
IGI (NASDAQ: IGIC) ha riportato risultati finanziari solidi per il quarto trimestre e per l'intero anno 2024. L'azienda ha raggiunto un rapporto combinato del 79,9% e ha registrato un reddito netto record di 135,2 milioni di dollari per l'anno fiscale 2024, con un aumento del 14,4% rispetto ai 118,2 milioni di dollari del 2023.
I punti salienti includono:
- Reddito netto Q4 2024: 30,0 milioni di dollari
- Rendimento medio del capitale: 22,6% per l'anno fiscale 2024
- I premi lordi scritti sono aumentati del 5,9% a 174,6 milioni di dollari nel Q4 2024
- Il valore contabile per azione è cresciuto di quasi il 20%
- Il patrimonio totale degli azionisti ha raggiunto 654,8 milioni di dollari entro il 31 dicembre 2024
L'azienda ha restituito quasi 50 milioni di dollari agli azionisti attraverso dividendi e riacquisti di azioni nel 2024. Il reddito da investimenti è aumentato del 28,5% a 51,9 milioni di dollari per l'anno fiscale 2024, con un rendimento degli investimenti del 4,3%.
IGI (NASDAQ: IGIC) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. La compañía logró un ratio combinado del 79.9% y reportó un ingreso neto récord de 135.2 millones de dólares para el año fiscal 2024, un aumento del 14.4% respecto a los 118.2 millones de dólares en 2023.
Los aspectos destacados incluyen:
- Ingreso neto Q4 2024: 30.0 millones de dólares
- Retorno sobre el capital promedio: 22.6% para el año fiscal 2024
- Las primas brutas escritas aumentaron un 5.9% a 174.6 millones de dólares en el Q4 2024
- El valor contable por acción creció casi un 20%
- El patrimonio total de los accionistas alcanzó los 654.8 millones de dólares al 31 de diciembre de 2024
La compañía devolvió casi 50 millones de dólares a los accionistas a través de dividendos y recompra de acciones en 2024. Los ingresos por inversiones aumentaron un 28.5% a 51.9 millones de dólares para el año fiscal 2024, con un rendimiento de inversión del 4.3%.
IGI (NASDAQ: IGIC)는 2024년 4분기 및 전체 연도에 대한 강력한 재무 결과를 발표했습니다. 이 회사는 79.9%의 결합 비율을 달성했으며, 2024 회계연도에 1억 3,520만 달러의 기록적인 순이익을 올렸습니다. 이는 2023년의 1억 1,820만 달러에서 14.4% 증가한 수치입니다.
주요 하이라이트는 다음과 같습니다:
- 2024년 4분기 순이익: 3,000만 달러
- 평균 자본 수익률: 2024 회계연도에 22.6%
- 2024년 4분기 총 서면 보험료가 5.9% 증가하여 1억 7,460만 달러에 달했습니다.
- 주당 장부가치가 거의 20% 증가했습니다.
- 2024년 12월 31일 기준으로 총 주주 자본이 6억 5,480만 달러에 도달했습니다.
회사는 2024년 동안 배당금과 자사주 매입을 통해 거의 5천만 달러를 주주에게 반환했습니다. 투자 수익은 2024 회계연도에 28.5% 증가하여 5,190만 달러에 달했으며, 투자 수익률은 4.3%입니다.
IGI (NASDAQ: IGIC) a annoncé des résultats financiers solides pour le quatrième trimestre et l'année complète 2024. L'entreprise a atteint un taux combiné de 79,9% et a enregistré un revenu net record de 135,2 millions de dollars pour l'exercice 2024, soit une augmentation de 14,4 % par rapport à 118,2 millions de dollars en 2023.
Les points forts incluent:
- Revenu net Q4 2024: 30,0 millions de dollars
- Rendement sur les capitaux propres moyens: 22,6 % pour l'exercice 2024
- Les primes brutes souscrites ont augmenté de 5,9 % pour atteindre 174,6 millions de dollars au Q4 2024
- La valeur comptable par action a augmenté de près de 20 %
- Les capitaux propres totaux des actionnaires ont atteint 654,8 millions de dollars au 31 décembre 2024
L'entreprise a restitué près de 50 millions de dollars aux actionnaires par le biais de dividendes et de rachats d'actions en 2024. Les revenus d'investissement ont augmenté de 28,5 % pour atteindre 51,9 millions de dollars pour l'exercice 2024, avec un rendement d'investissement de 4,3 %.
IGI (NASDAQ: IGIC) hat starke Finanzergebnisse für das vierte Quartal und das gesamte Jahr 2024 gemeldet. Das Unternehmen erzielte ein kombiniertes Verhältnis von 79,9% und lieferte einen Rekordnettogewinn von 135,2 Millionen US-Dollar für das Geschäftsjahr 2024, was einem Anstieg von 14,4% gegenüber 118,2 Millionen US-Dollar im Jahr 2023 entspricht.
Wichtige Highlights sind:
- Nettoergebnis Q4 2024: 30,0 Millionen US-Dollar
- Rendite auf das durchschnittliche Eigenkapital: 22,6% für das Geschäftsjahr 2024
- Die brutto geschriebenen Prämien stiegen im vierten Quartal 2024 um 5,9% auf 174,6 Millionen US-Dollar
- Der Buchwert pro Aktie wuchs um fast 20%
- Das gesamte Eigenkapital der Aktionäre erreichte bis zum 31. Dezember 2024 654,8 Millionen US-Dollar
Das Unternehmen gab 2024 fast 50 Millionen US-Dollar an die Aktionäre durch Dividenden und Aktienrückkäufe zurück. Die Erträge aus Investitionen stiegen um 28,5% auf 51,9 Millionen US-Dollar für das Geschäftsjahr 2024, mit einer Investitionsrendite von 4,3%.
- Record net income of $135.2 million, up 14.4% YoY
- Strong combined ratio of 79.9% for FY2024
- Investment income increased 28.5% to $51.9 million
- Book value per share grew by almost 20%
- Return on average equity of 22.6%
- $50 million returned to shareholders
- Core operating return on equity declined to 24.2% from 28.1% in 2023
- Long-tail segment GWP decreased 9.9% to $204.4 million
- Net foreign exchange loss of $8.1 million in 2024 vs. gain of $5.1 million in 2023
- Combined ratio increased to 79.9% from 76.7% in 2023
Insights
IGI's Q4 and full-year 2024 results demonstrate exceptional underwriting discipline and profitability in a challenging insurance market environment. The full-year combined ratio of 79.9% stands out as particularly impressive, significantly outperforming the industry average which typically hovers around 95-100%. While this represents a slight deterioration from 2023's 76.7%, maintaining a sub-80% combined ratio indicates superior risk selection and pricing strategy.
The company delivered record net income of $135.2 million for 2024, a 14.4% increase over 2023, translating to a return on average equity of 22.6%. This ROE substantially exceeds the insurance industry's typical 8-12% range, positioning IGI among the top performers in its sector. The core operating return on average equity of 24.2% further emphasizes the strength of the underlying insurance operations.
Segment performance reveals a strategic portfolio management approach. The Reinsurance segment demonstrated the strongest growth with gross written premiums increasing 36.5% and underwriting income nearly doubling to $35.8 million. This suggests IGI has identified attractive opportunities in reinsurance while maintaining disciplined underwriting, as evidenced by the improved results.
The Long-tail segment's dynamics are particularly telling - despite a 9.9% decrease in gross written premiums, the segment still generated $39.5 million in underwriting income. This indicates IGI is willing to reduce premium volume when pricing doesn't meet their return thresholds, prioritizing profitability over growth. The Short-tail segment, representing 59% of premiums, showed modest growth while maintaining strong underwriting results.
The investment portfolio delivered an improved 4.4% yield in Q4 2024, up from 4.3% in Q4 2023, generating $13.9 million in investment income. This yield outperforms many peers and contributes significantly to overall profitability without taking excessive investment risk.
IGI's balance sheet strengthened considerably, with book value per share growing nearly 20% to $14.40, providing a solid foundation for future operations and potential shareholder returns. The company's commitment to shareholder value is evident in the $50 million returned through dividends and share repurchases in 2024.
Foreign exchange volatility impacted quarterly comparisons, with a $12.9 million loss in Q4 2024 versus an $8.5 million gain in Q4 2023, explaining much of the quarter-over-quarter net income decline despite improved underwriting results. The $4.3 million tax credit in Q4 2024 (versus a $1.6 million expense in Q4 2023) also materially affected results.
For investors, IGI represents a compelling opportunity in the specialty insurance sector, combining disciplined underwriting, strong returns, and a commitment to shareholder value. The company's ability to maintain excellent profitability while growing selectively in favorable market segments suggests a sustainable business model capable of delivering superior returns across market cycles.
IGI's investment performance in 2024 demonstrates sophisticated portfolio management in a complex interest rate environment. The 4.4% investment yield achieved in Q4 2024 stands significantly above the industry average of 3-4% for comparable specialty insurers, reflecting effective asset allocation and reinvestment strategies.
The 28.5% increase in investment income to $51.9 million represents a material contributor to IGI's overall profitability, accounting for approximately 27% of the company's core operating income. This robust investment performance complements IGI's excellent underwriting results, creating a balanced dual-engine approach to generating returns – a hallmark of top-performing insurance companies.
Looking deeper at the numbers reveals interesting dynamics. While investment income grew substantially, net investment income increased at a more modest 7.4% ($53.9M vs $50.2M year-over-year). This divergence suggests either higher investment management expenses or possibly some realized losses within the portfolio that partially offset the strong income generation.
The growing investment portfolio reflects both strong operational cash flows and IGI's disciplined capital management. Based on the reported yields and income, I estimate the investable asset base has expanded to approximately $1.2 billion, providing significant financial flexibility and a growing stream of recurring income.
IGI's investment approach appears well-aligned with its underwriting liabilities. The company has likely maintained a conservative duration profile in its fixed income portfolio, balancing higher current yields against potential mark-to-market volatility. This approach is particularly prudent given the uncertain interest rate trajectory for 2025, with markets anticipating potential rate cuts that could impact reinvestment yields.
The foreign exchange losses of $12.9 million in Q4 and $8.1 million for the full year highlight a potential area for improvement in IGI's financial management. These losses, primarily from GBP and EUR positions against the USD, significantly offset investment gains. While some currency exposure is inevitable given IGI's international operations, more robust hedging strategies could help mitigate this volatility.
For investors, IGI's investment performance enhances the overall investment thesis. The company has demonstrated an ability to generate superior returns on both sides of the balance sheet – underwriting and investments. The 4.3% full-year yield, combined with the exceptional 79.9% combined ratio, helps explain the impressive 22.6% return on equity, which substantially exceeds most insurance industry peers.
As we look ahead to 2025, IGI's investment portfolio is well-positioned to continue delivering strong results, though investors should monitor how potential interest rate cuts might impact reinvestment yields. The company's growing investment base should provide increasing contribution to earnings, helping to buffer any potential softening in underwriting conditions that might emerge in certain specialty insurance segments.
Highlights for the fourth quarter and full year 2024 include:
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2023 |
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Gross written premiums |
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Net premiums earned |
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Underwriting income (1) |
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Net investment income |
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Net income |
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Earnings per share (diluted) (2) |
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Return on average equity (3) |
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Core operating income (3) |
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Core operating earnings per share (diluted) (3) |
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Core operating return on average equity (3) |
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| (1) | See “Supplementary Financial Information” below. |
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| (2) | See “Note to the Consolidated Financial Statements (Unaudited)” below. |
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| (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
“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
Results for the Periods ended December 31, 2024 and 2023
Net income for the quarter ended December 31, 2024 was
Return on average equity (annualized) was
Core operating income, a non-GAAP measure, was
Underwriting income increased to
Gross written premiums increased by
The loss ratio was
The net policy acquisition expense ratio was
The general & administrative expense ratio was
The combined ratio was
Segment Results
The Specialty Short-tail Segment, which represented
Gross written premiums for the full year 2024 were
The Specialty Long-tail Segment, which represented
Gross written premiums for the full year 2024 were
The Reinsurance Segment, which represented
Gross written premiums for the full year 2024 were
Investment Results
Investment income increased by
Investment income increased
Net Foreign Exchange (Loss) Gain
The net foreign exchange loss for the fourth quarter of 2024 was
The net foreign exchange loss for the full year of 2024 was
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
Income tax
For the fourth quarter and full year of 2024, an income tax credit of
Total Shareholders’ Equity
Total shareholders’ equity at December 31, 2024 was
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Total Shareholders’ equity at beginning of period |
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Net income |
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Unrealized (losses) gains on available-for-sale investments |
( |
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Change in foreign currency translation reserve |
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- |
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Purchase of treasury shares (a) |
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Issuance of common shares under share-based compensation plan |
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Vesting of earnout shares |
- |
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Cash dividends declared |
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Total shareholders’ equity at December 31, 2024 |
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Book value per share was |
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| (a) |
In the fourth quarter of 2024, the Company repurchased approximately 220,354 common shares at an average price per share of |
International General Insurance Holdings Ltd.
Consolidated Statements of Income (Unaudited)
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Year Ended
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2024 |
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2023 |
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2024 |
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2023 |
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Gross written premiums |
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Ceded written premiums |
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Net written premiums |
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Net change in unearned premiums |
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Net premiums earned |
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Investment income |
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Net realized gain on investments |
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Net unrealized (loss) gain on investments |
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Change in allowance for expected credit losses on investments |
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Net investment income |
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Other revenues |
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Expenses |
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Net loss and loss adjustment expenses |
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Net policy acquisition expenses |
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( |
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General and administrative expenses |
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( |
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Change in allowance for expected credit losses on receivables |
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( |
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( |
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( |
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Change in fair value of derivative financial liabilities (1) |
- |
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( |
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( |
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( |
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Other expenses |
( |
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( |
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( |
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( |
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Net Foreign exchange (loss) gain |
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Total expenses |
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( |
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( |
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Income before income taxes |
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Income tax credit (expense) |
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( |
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Net income for the period |
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Diluted earnings per share attributable to equity holders (2) |
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| (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. |
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| (2) | See “Note to the Consolidated Financial Statements (Unaudited)”. |
International General Insurance Holdings Ltd.
Consolidated Balance Sheets (Unaudited)
(in millions of |
As at December 31,
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As at December 31,
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ASSETS |
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Investments |
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Fixed maturity securities available-for-sale, at fair value |
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Fixed maturity securities held to maturity |
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Equity securities, at fair value |
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Other investments, at fair value |
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Short-term investments |
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Term deposits |
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Equity-method investments measured at fair value |
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Total investments |
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Cash and cash equivalents |
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Accrued investment income |
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Premiums receivable |
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Reinsurance recoverables |
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Ceded unearned premiums |
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Deferred policy acquisition costs, net of ceding commissions |
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Other assets |
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TOTAL ASSETS |
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LIABILITIES |
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Reserve for unpaid loss and loss adjustment expenses |
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Unearned premiums |
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Insurance and reinsurance payables |
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Other liabilities |
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Derivative financial liability |
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TOTAL LIABILITIES |
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SHAREHOLDERS’ EQUITY |
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Common shares at par value |
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Additional paid-in capital |
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Treasury shares |
( |
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- |
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Accumulated other comprehensive loss, net of taxes |
( |
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( |
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Retained earnings |
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TOTAL SHAREHOLDERS’ EQUITY |
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
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International General Insurance Holdings Ltd.
Supplementary Financial Information – Combined Ratio (Unaudited)
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Quarter Ended December 31, |
Year Ended December 31, |
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2024 |
2023 |
2024 |
2023 |
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Loss ratio (a) |
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Net policy acquisition expense ratio (b) |
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General and administrative expense ratio (c) |
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Expense ratio (d) |
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Combined ratio (e) |
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| (a) | Represents net loss and loss adjustment expenses as a percentage of net premiums earned. |
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| (b) | Represents net policy acquisition expenses as a percentage of net premiums earned. |
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| (c) | Represents general and administrative expenses as a percentage of net premiums earned. |
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| (d) | Represents the sum of the net policy acquisition expense ratio and the general and administrative expense ratio. |
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| (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 |
As at December 31,
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As at December 31,
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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 |
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Total shareholders’ equity (b) |
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Book value per share (b)/(a) |
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* Common shares issued and outstanding as at December 31, 2024 are as follows:
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No. of shares as at |
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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 |
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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 |
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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 |
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(in millions of |
Specialty Long-tail |
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Specialty Short-tail |
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Reinsurance |
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Total |
Underwriting revenues |
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Gross written premiums |
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Ceded written premiums |
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Net written premiums |
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Net change in unearned premiums |
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Net premiums earned |
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Net loss and loss adjustment expenses |
( |
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( |
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( |
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( |
Net policy acquisition expenses |
( |
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( |
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( |
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( |
Underwriting income |
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For the quarter ended December 31, 2023 |
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(in millions of |
Specialty Long-tail |
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Specialty Short-tail |
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Reinsurance |
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Total |
Underwriting revenues |
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Gross written premiums |
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( |
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Ceded written premiums |
( |
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( |
Net written premiums |
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( |
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Net change in unearned premiums |
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( |
Net premiums earned |
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Net loss and loss adjustment expenses |
( |
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( |
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( |
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( |
Net policy acquisition expenses |
( |
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( |
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( |
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( |
Underwriting income |
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International General Insurance Holdings Ltd.
Supplementary Financial Information - Segment Results (Unaudited)
For the Year ended December 31, 2024 |
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(in millions of |
Specialty Long-tail |
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Specialty Short-tail |
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Reinsurance |
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Total |
Underwriting revenues |
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Gross written premiums |
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Ceded written premiums |
( |
|
( |
|
( |
|
( |
Net written premiums |
|
|
|
|
|
|
|
Net change in unearned premiums |
|
|
( |
|
( |
|
( |
Net premiums earned |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and loss adjustment expenses |
( |
|
( |
|
( |
|
( |
Net policy acquisition expenses |
( |
|
( |
|
( |
|
( |
Underwriting income |
|
|
|
|
|
|
|
For the Year ended December 31, 2023 |
|||||||
(in millions of |
Specialty Long-tail |
|
Specialty Short-tail |
|
Reinsurance |
|
Total |
Underwriting revenues |
|
|
|
|
|
|
|
Gross written premiums |
|
|
|
|
|
|
|
Ceded written premiums |
( |
|
( |
|
- |
|
( |
Net written premiums |
|
|
|
|
|
|
|
Net change in unearned premiums |
|
|
( |
|
( |
|
( |
Net premiums earned |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and loss adjustment expenses |
( |
|
( |
|
( |
|
( |
Net policy acquisition expenses |
( |
|
( |
|
( |
|
( |
Underwriting income |
|
|
|
|
|
|
|
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 |
2024 |
2023 |
2024 |
2023 |
|||
Investment income |
|
|
|
|
|||
Average total investments and cash and cash equivalents(i) |
|
|
|
|
|||
Investment Yield (annualized) |
|
|
|
|
|||
| (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 |
2024 |
2023 |
2024 |
2023 |
|||
Net income for the period |
|
|
|
|
|||
Minus: Net income attributable to the earnout shares |
- |
|
|
|
|||
Minus: Dividends attributable to restricted share awards |
- |
- |
|
- |
|||
Net income available to common shareholders (a) |
|
|
|
|
|||
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) |
|
|
|
|
|||
* 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
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 |
2024 |
2023 |
2024 |
2023 |
|||
Net premiums earned (a) |
|
|
|
|
|||
Net loss and loss adjustment expenses (b) |
( |
( |
( |
( |
|||
Net policy acquisition expenses (c) |
( |
( |
( |
( |
|||
General and administrative expenses (d) |
( |
( |
( |
( |
|||
Prior years unfavorable (favorable) development (e) |
( |
|
( |
( |
|||
Current accident year catastrophe (“CAT”) losses (f)* |
|
|
|
|
|||
|
|
|
|
|
|||
Combined ratio ((b+c+d)/a)** |
|
|
|
|
|||
Minus: Prior years unfavorable (favorable) development (e/a) |
( |
|
( |
( |
|||
Accident year combined ratio |
|
|
|
|
|||
Minus: CAT losses on an accident year basis (f/a) |
|
|
|
|
|||
Accident year combined ratio prior to CAT losses |
|
|
|
|
|||
*The CAT losses for the quarter ended December 31, 2024 are primarily attributable to
The CAT losses for the quarter ended December 31, 2023 are primarily attributable to
The CAT losses for the year ended December 31, 2024 are primarily attributable to
The CAT losses for the year ended December 31, 2023 are primarily attributable to
** 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 |
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 |
|
|
|
|
|
|
|
|
|||||||
Minus: Current accident year CAT losses |
|
|
|
|
|
|
|
|
|||||||
Minus: Effect of prior years’ development |
( |
( |
|
|
( |
( |
( |
( |
|||||||
Current Accident year (Prior to CAT losses) |
|
|
|
|
|
|
|
|
|||||||
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
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 |
2024 |
2023 |
2024 |
2023 |
|||
Net income for the period |
|
|
|
|
|||
Reconciling items between net income for the period and core operating income: |
|
|
|
|
|||
Net realized gain on investments |
( |
( |
( |
( |
|||
Net unrealized loss (gain) on investments |
|
( |
( |
( |
|||
Tax impact of net unrealized loss (gain) on investments(i) |
( |
|
- |
|
|||
Change in allowance for expected credit losses on investments |
( |
( |
- |
( |
|||
Tax impact of change in allowance for expected credit losses on investments(i) |
|
|
- |
- |
|||
Change in fair value of derivative financial liabilities |
- |
|
|
|
|||
Expense related to conversion of warrants into cash(ii) |
- |
( |
- |
|
|||
Net foreign exchange loss (gain) |
|
( |
|
( |
|||
Tax impact of net foreign exchange loss (gain)(i) |
( |
|
( |
|
|||
Core operating income |
|
|
|
|
|||
Average shareholders’ equity (iii) |
|
|
|
|
|||
Core operating return on average equity (annualized) (iv) and (vi) |
|
|
|
|
|||
Diluted core operating earnings per share (v) |
|
|
|
|
|||
Return on average equity (annualized) (vi) |
|
|
|
|
|||
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 |
2024 |
2023 |
2024 |
2023 |
|||
Core operating income for the period |
|
|
|
|
|||
Minus: Core operating income attributable to earnout shares |
- |
|
|
|
|||
Minus: Dividends attributable to restricted share awards |
- |
- |
|
- |
|||
Core operating income available to common shareholders (a) |
|
|
|
|
|||
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) |
|
|
|
|
|||
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
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
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
Source: International General Insurance Holdings Ltd.
FAQ
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