International General Insurance(US:IGIC)2023-03-02 22:20Financial Performance - Gross written premiums for Q4 2022 were $156.7 million, a decrease of 4.2% from $163.5 million in Q4 2021[11] - Net premiums earned for the year ended December 31, 2022, increased to $376.4 million, up from $345.2 million in 2021, representing an increase of 9.8%[2] - Profit for the full year 2022 was $85.5 million, compared to $43.6 million in 2021, marking a 96.5% increase[8] - Core operating income for the year ended December 31, 2022, was $94.4 million, up from $53.1 million in 2021, reflecting a significant increase of 77.7%[9] - The company reported a profit for the period of $85.5 million in 2022, significantly higher than $43.6 million in 2021, with basic earnings per share rising to $1.74 from $0.89[35] - For the quarter ended December 31, 2022, the net profit attributable to equity holders was $23.8 million, a significant increase from $8.5 million in the same quarter of 2021, representing a growth of 180%[3] - The basic and diluted earnings per share attributable to equity holders for the year ended December 31, 2022, were $1.74, compared to $0.89 in 2021, reflecting a year-over-year increase of 95.5%[3] Underwriting Performance - The combined ratio for the year ended December 31, 2022, improved to 78.5%, down from 86.4% in 2021[16] - The net claims and claims expense ratio for the year ended December 31, 2022, was 41.9%, compared to 51.0% in 2021, indicating improved underwriting performance[15] - The net claims and claim adjustment expenses for the year ended December 31, 2022, totaled $157.7 million, a decrease from $176.2 million in 2021, indicating improved claims management[51] - The combined ratio for 2022 was 78.5%, compared to 86.4% in 2021, reflecting enhanced operational efficiency[40] - The combined ratio for the year ended December 31, 2022, was 78.5%, an improvement from 86.4% in 2021, demonstrating enhanced underwriting performance[61] Investment Performance - Total investment income for the year ended December 31, 2022, was $20.7 million, compared to $14.2 million in 2021, representing a 45.8% increase[2] - The net investment income for 2022 was $16.4 million, slightly up from $16.1 million in 2021, indicating stable investment performance[35] - The investment yield for the year ended December 31, 2022, was 2.5%, compared to 2.1% in 2021, indicating an improvement in investment performance[54] - The net investment income for the quarter ended December 31, 2022, was $7.6 million, significantly higher than $3.0 million in the same quarter of 2021[54] - The company experienced a realized loss on investments of $0.7 million for the year, compared to a gain of $0.3 million in 2021, highlighting volatility in investment performance[64] Segment Performance - The Long-tail Segment accounted for approximately 40% of gross written premiums in 2022, with net underwriting results increasing to $83.7 million from $50.9 million in 2021[19] - The Short-tail Segment saw gross written premiums increase by 13.0% to $318.6 million for the full year 2022, compared to $282.0 million in 2021[22] - The Reinsurance Segment's gross written premiums increased to $31.0 million in 2022, up from $24.0 million in 2021, reflecting growth in this area[25] Equity and Assets - Total equity increased to $429.8 million as of December 31, 2022, from $401.9 million at the end of 2021, with a book value per share rising to $9.49 from $8.83[31] - Total assets increased to $1,561.1 million as of December 31, 2022, from $1,451.9 million in 2021, driven by growth in investments and term deposits[38] - Cash and cash equivalents decreased to $138.0 million from $242.1 million, while term deposits increased to $297.0 million from $180.0 million[38] - The total equity as of December 31, 2022, was $429.8 million, an increase from $401.9 million in 2021, marking a growth of 6.9%[45] - As of December 31, 2022, the book value per share increased to $9.49 from $8.83 in 2021, representing a growth of 7.5%[45] Shareholder Actions - The company repurchased 310,542 common shares at an average price of $7.65 per share by December 31, 2022, and an additional 2,271,775 shares at $8.60 per share in January 2023[32] - The weighted average number of vested common shares for the year was 45.5 million, consistent with the previous year, indicating stable share count[66] Future Outlook and Risks - The company aims to expand its portfolio in specialty lines, with operations in multiple international markets including Bermuda, London, and Dubai, enhancing its global footprint[69] - The company emphasizes that forward-looking statements may differ from actual results due to various risks and uncertainties[70] - Key factors affecting performance include changes in demand for services, competition, and the impact of global events such as the COVID-19 pandemic and geopolitical tensions[70] - The company highlights the potential effects of the proposed acquisition of EIO and the importance of realizing anticipated benefits from this acquisition[70]