Summary of International General Insurance Holdings (IGIC) FY Conference Company Overview - **Company Name**: International General Insurance Holdings (IGIC) - **Ticker Symbol**: IGIC (NASDAQ) - **Founded**: 2002 in Jordan - **Current CEO**: Waleed Jabsheh, with the company since its inception - **Capital Growth**: Initial capital of $25 million has grown to approximately $700 million [4][5] Business Model and Strategy - **Specialization**: IGIC is a specialist insurance and reinsurance company, initially focused on a few lines of business, now expanded to nearly 25 different lines [3][11] - **Global Presence**: Operates eight offices worldwide, including locations in Asia, the Middle East, Africa, Europe, and Bermuda [3][4] - **Employee Growth**: From a handful of employees to approximately 470-480 [4] Market Dynamics - **Cyclical Nature**: The insurance industry is cyclical, with rates fluctuating based on supply and demand. Currently, IGIC is positioned in the middle of the cycle [5][9] - **Competition**: Increased competition has led to pricing pressures, with a tendency for companies to lower prices during profitable periods, which can lead to inadequate pricing and subsequent losses [6][9] Risk Management and Discipline - **Focus on Discipline**: Emphasizes the importance of maintaining discipline in underwriting and risk management, avoiding overextension during profitable times [10][15] - **Diversified Portfolio**: Maintains a diversified portfolio across three segments: reinsurance, short tail, and long tail, allowing for better management of market cycles [11][13] - **Risk Appetite**: Clearly defined risk tolerances and appetite, avoiding markets and lines of business that do not align with their expertise, such as U.S. liability business [16][15] Financial Performance - **Long-term Focus**: IGIC does not provide quarterly guidance, instead focusing on long-term value creation, aiming for a combined ratio in the mid-to-high 80s and a return on equity in the low-to-mid teens over a 10-year cycle [26][27] - **Recent Performance**: Achieved combined ratios in the mid to high 70s and ROEs in the low to mid 20s in recent years, outperforming the industry average [27][30] Investment Philosophy - **Conservative Approach**: Investment strategy is conservative, focusing on fixed income and avoiding high-risk investments. Equities represent less than 2% of the overall portfolio [32][34] - **Share Buybacks**: Announced a buyback program in 2022, having repurchased 7.5 million shares, with a new authorization for an additional 5 million shares [34][35] Conclusion - **Value Creation**: The ultimate goal is to deliver and grow value without sacrificing the bottom line for top-line growth. The company has built a strong track record as a public entity over the past five years [27][35]

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Financial Data and Key Metrics Changes - The company reported net income of $33.5 million for Q3 2025 and $94.9 million for the first nine months, resulting in an annualized return on average equity of 20% for Q3 and 19% for the first nine months [5][24] - Book value per share grew by almost 10% to $16.23 in the first nine months of 2025, with total equity reaching just under $690 million [6][24] - The combined ratio for Q3 was 76.5%, significantly improved from 86% in Q3 of the previous year, while the combined ratio for the first nine months was just over 87% compared to 80.5% for the same period in 2024 [12][13] Business Line Data and Key Metrics Changes - Gross premiums written in Q3 were just over $131 million, a decrease of about 5%, while for the first nine months, gross premiums were up marginally to just over $525 million [10][11] - The short-tail segment saw gross premiums up 2% in Q3 but down 2.7% for the first nine months, with net premiums earned down about 10.4% and 8.1% for Q3 and the first nine months, respectively [17] - The reinsurance segment generated gross premiums of just under $98 million for the first nine months, reflecting almost 25% growth compared to the same period in 2024, with underwriting income up 35% for Q3 [19][20] Market Data and Key Metrics Changes - The company noted increasing competitive pressures across the market, particularly in the long-tail segment, which has seen declining rates and margins [20][32] - The U.S. market remains a significant focus, with opportunities for new business in specialty treaty and short-tail portfolios despite competitive pressures [33][34] - The company is optimistic about the potential for improvement in the long-tail segment by 2026 and 2027, although current conditions remain challenging [32][34] Company Strategy and Development Direction - The company emphasizes disciplined underwriting and capital management to generate high-quality returns, focusing on areas with the best risk-adjusted returns [5][25] - A new $5 million common share repurchase authorization was approved, indicating a commitment to returning value to shareholders [9][23] - The company is expanding its presence in specialty treaty business and enhancing distribution capabilities to drive additional margin [30][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the elevated level of competitive pressure but characterized it as orderly and disciplined, with confidence in finding growth opportunities [25][27] - The recent S&P upgrade to an A rating is expected to open new business opportunities and enhance the company's market position [9][27] - Management remains focused on intelligent risk selection and will not sacrifice profitability for top-line growth, emphasizing the importance of cycle management [34][35] Other Important Information - The company returned a total of about $98 million to shareholders in share repurchases and dividends in the first nine months of 2025 [24] - Total assets increased by just over 4% to $2.12 billion, with total investments and cash at $1.32 billion [22] Q&A Session Summary Question: Comments on market conditions and long-tail business - Management indicated that while competitive pressures are increasing, they are not currently considering walking away from other accounts outside of the specific non-renewed account mentioned [38][39] Question: Outlook for the reinsurance segment - Management noted that while Q1 has historically been strong, they anticipate more pressure on the top line for the reinsurance book as the market generates excess capital [40][41] Question: Perspectives on large account property in the U.S. - Management does not believe that large account property has bottomed out and expects continued pressure in that area [44]

Company Overview - IGI's total assets reached approximately $700 million as of full year 2024[4] - IGI's gross written premium was approximately $21 billion as of September 30, 2025[4] - IGI has an average 10-Year Core ROE of 140% and an average combined ratio of 870% from 2015-2024[4] - The Jabsheh family holds 358% ownership in IGI as of September 30, 2025[9] Financial Performance (Q3/9M 2025) - Net income for Q3 2025 was $335 million, a decrease of 29% compared to Q3 2024[20] - Net income for 9M 2025 was $949 million, a decrease of 97% compared to 9M 2024, primarily due to lower underwriting income[20] - The combined ratio for Q3 2025 was 765%, benefiting from a positive foreign currency revaluation of 46 points[20] - The combined ratio for 9M 2025 was 871%, negatively impacted by a foreign currency revaluation of 75 points[20] - Underwriting income for Q3 2025 was $514 million, a 242% increase compared to Q3 2024, influenced by lower losses and positive foreign currency revaluation of $50 million[20] - Underwriting income for 9M 2025 was $1143 million, a 176% decrease compared to 9M 2024, impacted by higher losses, reinstatement premiums, and negative foreign currency revaluation of $236 million[20] - Book value per share was $1623, a 57% increase from June 30, 2025, and a 93% increase from December 31, 2024[20] - Capital returned to shareholders in Q3 2025 amounted to $209 million through dividends and share repurchases (790k shares)[20] - Capital returned to shareholders in 9M 2025 totaled $979 million, including a $085 extraordinary dividend in Q1 and share repurchases (23m shares)[20] Investment Portfolio - The total investment portfolio was $1316 billion as of September 30, 2025[28] - The average credit quality of the investment portfolio is A, with a duration of 37 years[28] - The bond portfolio is geographically diversified, with 41% in North America, 11% in the UK, 18% in Europe, 15% in Australasia, and 14% in the Middle East[28]

Core Viewpoint - International General Insurance Holdings Ltd. (IGIC) reported quarterly earnings of $0.87 per share, missing the Zacks Consensus Estimate of $0.91 per share, but showing an increase from $0.67 per share a year ago [1][2] Financial Performance - The company posted revenues of $128.6 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 5.02% and down from $138.1 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [2] Stock Performance - International General Insurance shares have declined approximately 9.7% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.86 on revenues of $138.2 million, and for the current fiscal year, it is $2.69 on revenues of $535.5 million [7] - The estimate revisions trend for the company was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Insurance - Multi line industry, to which International General Insurance belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Premiums and Revenues - Gross written premiums for Q3 2025 were $131.3 million, down from $138.3 million in Q3 2024, while for the first nine months of 2025, they were $525.6 million, a slight increase from $525.5 million in the same period of 2024[2][6] - Net premiums earned for Q3 2025 were $114.7 million, compared to $126.1 million in Q3 2024, and for the first nine months of 2025, they were $342.5 million, down from $362.5 million in the same period of 2024[2][4] - Total revenues for the nine months ended September 30, 2025, were $390.6 million, slightly down from $403.8 million in the same period of 2024[27] - For the nine months ended September 30, 2025, the total gross written premiums reached $525.6 million, while net written premiums were $350.8 million[41] Underwriting Performance - Underwriting income for Q3 2025 was $51.4 million, an increase from $41.4 million in Q3 2024, but for the first nine months of 2025, it decreased to $114.3 million from $138.7 million in the same period of 2024[2][7] - The combined ratio improved to 76.5% in Q3 2025 from 86.0% in Q3 2024, while for the first nine months of 2025, it was 87.1%, up from 80.5% in the same period of 2024[2][11] - The loss ratio improved to 39.3% in Q3 2025 from 51.5% in Q3 2024, but increased to 49.3% for the first nine months of 2025 from 45.3% in the same period of 2024[2][8] - The net loss and loss adjustment expenses for the quarter ended September 30, 2025, were $45.1 million, compared to $65.0 million in 2024[48] Net Income and Earnings - Net income for Q3 2025 was $33.5 million, slightly down from $34.5 million in Q3 2024, and for the first nine months of 2025, it was $94.9 million, compared to $105.1 million in the same period of 2024[2][4] - Core operating income for Q3 2025 was $38.6 million, up from $30.7 million in Q3 2024, but for the first nine months of 2025, it decreased to $80.8 million from $103.9 million in the same period of 2024[2][5] - The diluted earnings per share attributable to equity holders for the nine months ended September 30, 2025, was $2.14, down from $2.31 in 2024[45] - The net income available to common shareholders for the quarter ended September 30, 2025, was $33.5 million, compared to $34.3 million in 2024[45] Shareholder Equity and Assets - Total shareholders' equity increased to $686.5 million at September 30, 2025, compared to $654.8 million at December 31, 2024[23] - Book value per share increased by 9.3% to $16.23 as of September 30, 2025, compared to $14.85 at December 31, 2024[25] - Average shareholders' equity increased to $674.4 million in Q3 2025, compared to $619.9 million in Q3 2024[55] - Total assets increased to $2,121.8 million as of September 30, 2025, from $2,037.6 million at December 31, 2024[30] Investment Performance - Investment income for the first nine months of 2025 increased by 6.8% to $40.6 million, compared to $38.0 million in the same period of 2024[19] - Net investment income for the nine months ended September 30, 2025, was $45.8 million, up from $40.3 million in the same period of 2024[27] - The investment yield for the quarter ended September 30, 2025, was 4.1%, slightly down from 4.2% in the same quarter of 2024[43] Foreign Exchange Impact - The net foreign exchange loss for Q3 2025 was $6.1 million, compared to a gain of $8.6 million in Q3 2024, while the net foreign exchange gain for the first nine months of 2025 was $11.1 million, up from $4.7 million in the same period of 2024[20][21] - The company reported a net foreign exchange gain of $6.1 million in Q3 2025, contrasting with a loss of $8.6 million in Q3 2024[55] Company Ratings and Outlook - IGI is rated "A" (Excellent)/Stable by AM Best and "A" (Strong)/Stable by S&P Global Ratings[62] - Forward-looking statements indicate potential risks including competition, economic factors, and geopolitical tensions affecting performance[63] Share Repurchase - The company repurchased 789,575 common shares at an average price of $23.79 per share during the third quarter of 2025[24] Portfolio and Operations - The company has a diverse portfolio including energy, property, and marine trades, with operations in multiple global locations[62]

Core Insights - International General Insurance Holdings Ltd. (IGI) has appointed Malcolm Barnes as Head of Specialty Treaty, enhancing its reinsurance capabilities [1] Company Developments - Malcolm Barnes will be based in IGI's London office at 20 Fenchurch and is tasked with building and managing the specialty treaty reinsurance business [1] - The addition of Barnes is expected to provide further depth and breadth to IGI's reinsurance team, indicating a strategic focus on expanding its presence in the London market [1]

Group 1 - The individual investor has over 10 years of trading experience and has developed as a stock analyst for the last five years, focusing on value companies linked to commodity production [1] - The investor emphasizes the importance of sustained free cash flows, low leverage, and sustainable debt in identifying companies with high recovery potential [1] - There is a preference for analyzing underappreciated sectors such as oil & gas, metals, and mining, particularly in emerging markets, to uncover investment opportunities [1] Group 2 - The investor is interested in companies with a strong pro-shareholder attitude, including solid buyback programs and consistent dividend distributions [1] - The educational background includes a financial master's degree specializing in company valuation and an economic degree [1] - The motivation is to share valuable information with the Seeking Alpha community to aid individual investment decisions [1]

Financial Performance - Net income for the six months ended June 30, 2025, was $61,446 thousand, a decrease of 13.06% from $70,661 thousand in the prior year[8] - Total comprehensive income increased to $80,830 thousand for the six months ended June 30, 2025, compared to $67,398 thousand in 2024, marking a growth of approximately 19.97%[8] - Basic earnings per share decreased to $1.37 for the six months ended June 30, 2025, down from $1.56 in the same period of 2024[6] - Net income available to common shareholders for the six months ended June 30, 2025, was $60,649,000, down from $69,071,000 in 2024, reflecting a decline of 12.5%[38] - Diluted earnings per share for the six months ended June 30, 2025, was $1.36, down from $1.55 in 2024, representing a decline of 12.3%[38] Assets and Liabilities - Total assets increased to $2,124,090 thousand as of June 30, 2025, compared to $2,037,538 thousand at December 31, 2024, reflecting a growth of approximately 4.26%[4][5] - The total liabilities increased to $1,461,774 thousand as of June 30, 2025, from $1,382,706 thousand at December 31, 2024, indicating a rise of approximately 5.71%[5] - The reserve for unpaid loss and loss adjustment expenses increased to $801,496 thousand as of June 30, 2025, from $794,243 thousand at December 31, 2024[5] - As of June 30, 2025, total cash, cash equivalents, and restricted cash amounted to $180.524 million, an increase from $168.246 million as of December 31, 2024[21] Cash Flow - Net cash provided by operating activities decreased significantly to $27,172 thousand for the six months ended June 30, 2025, compared to $120,732 thousand in the same period of 2024[12] - Cash and cash equivalents at the end of the period were $180,524 thousand, slightly down from $185,607 thousand at the end of June 2024[12] Shareholder Returns - The company paid dividends of $41,891 thousand during the six months ended June 30, 2025, compared to $24,368 thousand in the same period of 2024[12] - The company repurchased 1,502,024 shares during the period, increasing the total treasury shares to 671,709 as of June 30, 2025[33] Fair Value Measurements - The total fair value of assets measured at fair value as of June 30, 2025, was $1.047 billion, with corporate bonds contributing $975.502 million[28] - The change in fair value for equity-method investments measured at fair value increased to $2.125 million as of June 30, 2025[29] - There were no transfers into or out of Level 3 financial assets during the six months ended June 30, 2025[30] Accounting Standards - The company had no new U.S. GAAP accounting standards adopted that would materially impact the financial statements[20] Other Information - There were no material subsequent events between June 30, 2025, and the date of the report that required disclosure[39]

Financial Data and Key Metrics Changes - The company reported net income of $34.1 million for Q2 2025 and $61.4 million for the first half of the year, resulting in an annualized return on average equity of 20.8% for Q2 and 18.6% for the first half [6][31] - Book value per share increased by 3.4% to $15.36 in the first half of the year, with a total of $77 million returned to shareholders through dividends and share repurchases [7][31] - Gross premiums for Q2 2025 were just under $190 million, reflecting a decrease of 8.7%, while for the first six months, gross premiums were up almost 2% to around $395 million [15][16] Business Line Data and Key Metrics Changes - In the short tail segment, gross premiums decreased by 8.5% for Q2 and 4.2% for the first half, with underwriting income up almost 21% in Q2 due to lower losses compared to the previous year [21][22] - The reinsurance segment saw flat gross premiums compared to Q2 last year, but a growth of about 33% for the first half, driven by strong renewals and new business [22][23] - The long tail segment faced challenges, with gross premiums down almost 12% in Q2 and 5% in the first half, resulting in an underwriting loss of $3 million for Q2 [26][27] Market Data and Key Metrics Changes - The company noted competitive pressures in various areas of its portfolio, particularly in the long tail segment, which is most affected by foreign currency movements [10][11] - The underwriting portfolio is diversified geographically, with about half transacted in non-U.S. Dollar currencies, impacting the revaluation of loss reserves [12][14] - The overall market conditions remain generally healthy, but certain areas are experiencing increased competition, particularly in property and energy lines [32][38] Company Strategy and Development Direction - The company focuses on cycle management, moving capital to areas with strong rate momentum and high margins while reducing exposure in less profitable areas [7][10] - There is a commitment to not sacrifice bottom-line profitability for top-line growth, emphasizing sustainable value generation for the long term [36][43] - The company is expanding its capabilities in specific markets while maintaining a cautious approach to underwriting in competitive segments [37][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating headwinds and highlighted the importance of a diversified strategy to manage cyclicality and volatility [42][43] - The outlook for the remainder of 2025 includes continued contraction in certain areas of the portfolio where profitability does not meet targets [32][34] - Management remains optimistic about finding profitable opportunities across various lines despite competitive pressures [32][39] Other Important Information - The company repurchased over 1.34 million shares at an average price of $23.28 during Q2, with approximately 800,000 shares remaining on the repurchase authorization [31] - Total assets increased by over 4% to about $2.1 billion, with total investments and cash at $1.3 billion [30] Q&A Session Summary Question: Net to gross retention on a written premium basis was 64% in the quarter, down from 73% year over year. Can you speak to that? - Management indicated that the decrease was primarily due to opportunistic buying of facultative reinsurance in a softer market, aiming to generate higher fee income [46][47] Question: Regarding the professional indemnity portfolio that will be non-renewed, what was the session level a couple of years ago versus now? - Management noted that the quota share has hovered between 60% to 85% over the years, with the intent of non-renewal aimed at improving overall profitability [48][49]