International General Insurance Holdings (IGIC) Q2 2025 Earnings Call August 06, 2025 09:00 AM ET Speaker0Good day, and welcome to the International General Insurance Holdings Limited Second Quarter and First Half twenty twenty five Financial Results Conference Call. All participants are in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. I would now like to turn the conference over to Robin Sidders, Head of Investo ...

IGI Investor Presentation Second Quarter 2025 August 2025 Forward Looking Statements This presentation 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 "ability," "aim," "impact," "seek," ...

International General Insurance Holdings Ltd. (IGIC) came out with quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.27%. A quarter ago, it was expected that this company would post earnings of $0.47 per share when it actually produced earnings of $0.42, delivering a surprise of -10.64%.Over the l ...

Financial Data and Key Metrics Changes - The company reported a combined ratio of 94.4%, indicating a deterioration compared to previous quarters due to elevated loss activity and macroeconomic uncertainties [6][19]. - Net income for Q1 2025 was $27.3 million or $0.59 per share, down from $37.9 million or $0.84 per share in Q1 2024, primarily due to lower underwriting income and higher reinstatement premiums [19][30]. - Core operating income decreased to $19.5 million or $0.42 per share from $40 million or $0.89 per share year-over-year [20]. Business Line Data and Key Metrics Changes - Gross written premiums (GWP) increased by over 13% to just over $206 million, driven mainly by growth in the reinsurance segment [16]. - The short tail segment saw gross premiums rise by 2%, but earned premiums fell by 5.3% due to reinstatement premiums impacting reinsurance purchases [23][24]. - The long tail segment experienced slight premium growth but recorded an underwriting loss of $7.5 million compared to a profit of $10 million in Q1 2024, attributed to higher loss activity and FX impacts [28]. Market Data and Key Metrics Changes - The reinsurance treaty segment showed significant top-line growth of almost 44%, driven by new business in specialty treaty lines [25]. - The company noted heightened competitive pressure in various markets, particularly in the long tail segment, where net rates remain adequate despite several quarters of decline [32][33]. - The U.S. market was highlighted as a key growth area, with expectations for continued opportunities despite increased competition [36][38]. Company Strategy and Development Direction - The company emphasized its diversification strategy as a key strength in navigating market volatility and uncertainty [6][8]. - Management expressed confidence in the ability to find new business opportunities while maintaining a disciplined approach to underwriting [11][31]. - The focus remains on long-term growth rather than short-term results, with a commitment to protecting the portfolio and servicing clients effectively [10][11]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by elevated loss activity and geopolitical tensions but remained optimistic about the company's resilience and strategic positioning [10][14]. - The outlook for the remainder of the year includes a cautious approach to new business in competitive markets, particularly in the U.S. and Europe [36][38]. - Management reiterated the importance of maintaining adequate rates and being selective in underwriting to ensure profitability [62][66]. Other Important Information - The company paid a special dividend of $0.85, returning a total of $43.5 million to shareholders during the quarter [7][30]. - Total assets increased by almost 3% to $2.1 billion, with total equity just over $650 million at the end of the quarter [29][30]. Q&A Session Summary Question: Inquiry about the professional indemnity portfolio - Management confirmed that the area under review is similar to one previously remediated, indicating ongoing performance issues but no systemic problems [46][47]. Question: Clarification on combined ratio deterioration - Management explained that the reported deterioration was influenced by currency impacts, with a more accurate comparison showing a 6 to 7 point deterioration when adjusted for FX [51][53]. Question: Impact of tariffs on marine and port business - Management stated that there has been no significant impact from tariffs on their marine business, although cargo values might be affected [60]. Question: Outlook for aviation market - Management indicated that the aviation market remains challenging, but their book has shown solid profitability despite a reduced portfolio [68].

Financial Data and Key Metrics Changes - The company reported a combined ratio of 94.4%, indicating a deterioration primarily due to elevated loss activity and reinstatement premiums [7][19][20] - Net income for Q1 2025 was $27.3 million or $0.59 per share, down from $37.9 million or $0.84 per share in Q1 2024 [20][21] - Core operating income decreased to $19.5 million or $0.42 per share compared to $40 million or $0.89 per share in the same quarter last year [21] - Total assets increased by almost 3% to $2.1 billion, with total investments in cash at $1.3 billion [30] Business Line Data and Key Metrics Changes - Gross written premiums (GWP) grew by over 13% to just over $206 million, driven mainly by the reinsurance segment [18] - The short tail segment saw gross premiums up 2% but earned premiums down 5.3% due to reinstatement premiums [24] - The reinsurance treaty segment experienced a top line growth of almost 44%, primarily from new business in specialty treaty lines [26] - The long tail segment faced challenges with premiums up slightly but recorded an underwriting loss of $7.5 million compared to a profit of $10 million in Q1 2024 [29] Market Data and Key Metrics Changes - The company noted heightened foreign exchange volatility impacting financial results, particularly with the U.S. Dollar weakening against major currencies [17] - The U.S. market remains the biggest growth area, with expectations for continued opportunities despite increased competition [38][39] Company Strategy and Development Direction - The company emphasizes a long-term perspective, focusing on stability and resilience amid market volatility [12][13] - A diversified strategy is highlighted as a key strength, allowing the company to navigate market cycles effectively [10][32] - The company is committed to maintaining discipline in underwriting and risk selection, particularly in challenging segments like long tail [28][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the elevated loss environment and macroeconomic uncertainties but expressed confidence in the company's ability to manage these challenges [7][12] - The outlook for the remainder of the year includes a cautious approach to new business, particularly in competitive markets [36][38] - Management noted that while rates are declining, many areas still exhibit rate adequacy, allowing for continued business writing [62] Other Important Information - The company paid a special dividend of $0.85, returning a total of $43.5 million to shareholders during the quarter [8][31] - The G&A expense ratio showed marginal improvement to 19.1% from 19.5% year-over-year [24] Q&A Session Summary Question: Inquiry about the professional indemnity portfolio - Management confirmed that the area under review is similar to one previously remediated, indicating ongoing performance issues but no systemic problems [46][47] Question: Clarification on combined ratio deterioration - Management explained that the combined ratio deterioration was influenced by currency impacts, with a more accurate comparison showing a 6 to 7 point deterioration when adjusted for currency [51][53] Question: Impact of tariffs on marine and port business - Management stated that there has been no significant impact from tariffs on their marine business, although cargo values might be affected [60] Question: Outlook for aviation market - Management indicated that the aviation market remains challenging, with a reduced book size but solid profitability in recent quarters [68]

International General Insurance Holdings (IGIC) Q1 2025 Earnings Call May 07, 2025 09:00 AM ET Speaker0 Please note this event is being recorded. I would now like to turn the conference over to Robin Sidders, Head of Investor Relations. Please go ahead. Speaker1 Thanks, Scott, and good morning, and welcome to today's conference call. Today, we'll be discussing our first quarter twenty twenty five results. We issued our press release last night, which you would have seen after the market closed. If you'd lik ...

Core Viewpoint - International General Insurance Holdings Ltd. (IGIC) reported quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.47 per share, and down from $0.89 per share a year ago, indicating a -10.64% earnings surprise [1][2] Financial Performance - The company posted revenues of $129 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.80%, and down from $130.1 million year-over-year [2] - Over the last four quarters, IGIC has surpassed consensus EPS estimates only once [2] Stock Performance - IGIC shares have increased approximately 9.9% since the beginning of the year, contrasting with the S&P 500's decline of -3.9% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.66 on revenues of $133.8 million, and for the current fiscal year, it is $2.84 on revenues of $546.1 million [7] - The estimate revisions trend for IGIC is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Insurance - Multi line industry, to which IGIC belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

IGI Investor Presentation First Quarter 2025 May 2025 Forward Looking Statements This presentation 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 "ability," "aim," "impact," "seek," "st ...

Industry Competition and Market Conditions - The insurance and reinsurance industry is highly competitive, leading to potential reductions in premium rates and increased customer acquisition costs[34] - Market conditions may cause reinsurance to become more costly or unavailable, impacting the level of underwriting commitments[47] - The cyclicality of the insurance and reinsurance industry can lead to significant fluctuations in premium rates and operating results[41] - Consolidation in the insurance and reinsurance industry may increase competition, resulting in fewer submissions and less favorable policy terms[39] Catastrophic Events and Climate Change - Claims arising from catastrophic events are unpredictable and could severely impact financial results[24] - The company is exposed to risks associated with climate change, which may increase the frequency and severity of catastrophic events[26] - The frequency and severity of catastrophe events may increase due to changing climate conditions, impacting the company's ability to predict and model such events[97] - Climate change may lead to increased frequency and severity of weather-related catastrophes, potentially resulting in material catastrophe-related losses[100] Financial and Operational Risks - Insufficient loss reserves could negatively impact the company's financial results[26] - The availability of reinsurance may be limited, affecting the company's risk management strategies[47] - Changes in macroeconomic conditions, such as a prolonged recession, could adversely affect the company's business[30] - The company faces risks from unpredictable claims arising from natural catastrophes, with significant claims reported from events such as Hurricane Ian and the 2022 Australia floods, totaling $11.5 million in 2024[86] Regulatory and Compliance Challenges - The company is subject to extensive regulatory supervision across multiple jurisdictions, including the US, UK, and Bermuda, which may impact its business operations[54] - Compliance with legal and regulatory requirements may result in significant expenses, negatively impacting profitability[49] - Changes in laws or regulations could materially affect the company's business operations and financial condition[51] - The company may face challenges in maintaining necessary licenses and approvals in various jurisdictions, potentially at significant cost[50] Investment and Credit Risks - The company’s investment portfolio may be adversely affected by global climate change regulations, as there is a consensus that a significant percentage of existing fossil fuel reserves must remain unconsumed to meet international commitments[101] - The company is exposed to credit risk, particularly during economic downturns, which could lead to impairments and defaults on investments[157] - The company is subject to counterparty risk related to its investments, particularly in corporate bonds, which could lead to significant losses due to defaults[161] - The company selectively engages with reinsurers that have strong financial ratings, but market conditions can change their financial stability[205] Broker and Reinsurance Relationships - The company relies on brokers for business sourcing, and deteriorating relationships could adversely affect operations[26] - The top 5 international brokers generated 64% of the gross written premiums for the year ended December 31, 2024, and 63% for the year ended December 31, 2023[132] - The company's reinsurance program ceded 30% of gross written premiums (GWP) for the year ended December 31, 2024, and 28% for the year ended December 31, 2023[140] - The company’s reliance on ceding companies for reinsurance may introduce greater uncertainty in reserve estimations, impacting financial performance[122] Economic and Political Risks - Political initiatives to restrict free trade, such as Brexit, could adversely affect the insurance and reinsurance industry and the company's business[62] - Ongoing global economic uncertainties may materially and adversely affect the company's results of operations and financial position[65] - The long-term impact of the Russian invasion of Ukraine and subsequent sanctions remains uncertain, potentially affecting the company's business operations[130] Operational and Systemic Risks - The company relies on the ability to process a high volume of transactions daily, and any failure in operational systems could disrupt business operations[183] - The company has established a strong delegated authority risk management process, but there is no assurance that safeguards will fully protect against losses[136] - The company’s operations are vulnerable to data security risks, which could lead to significant financial losses and reputational damage[186] Future Capital and Liquidity Considerations - Regulatory capital requirements are subject to change and may become more stringent, impacting the company's ability to raise capital[210] - Failure to meet regulatory capital requirements could lead to intervention by regulators, potentially requiring the company to raise additional funds[211] - The company's future capital requirements depend on its ability to write new business and manage investments effectively[214] - The company may face liquidity shortfalls following large losses due to the timing of claims settlements and reinsurance recoveries[144]

Company Overview - International General Insurance Holdings Ltd. (IGIC) shares increased by 5.4% to close at $27.01, following a significant trading volume compared to normal sessions, despite a 5.6% loss over the past four weeks [1] - The board approved an extraordinary cash dividend, indicating strong operational expertise and a focus on expanding in US and European markets while diversifying to accelerate growth [2] Financial Performance - IGIC aims to reduce volatility and catastrophe exposure through prudent reinsurance practices and maintains zero financial leverage [3] - The company is expected to report quarterly earnings of $0.58 per share, reflecting a year-over-year decline of 34.8%, while revenues are projected to be $135.5 million, an increase of 4.2% from the previous year [3] Market Sentiment - Recent trends in earnings estimate revisions show a 9.4% downward adjustment in the consensus EPS estimate over the last 30 days, which typically does not correlate with price appreciation [5] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [5] Industry Comparison - IGIC operates within the Zacks Insurance - Multi line industry, where another company, Old Republic International (ORI), has shown a slight increase of 0.2% to $37.77, with a 3% return over the past month [5] - ORI's consensus EPS estimate remains unchanged at $0.73, representing a 9% increase from the previous year, and it holds a Zacks Rank of 2 (Buy) [6]