International General Insurance Holdings (IGI) has posted a decline in first-quarter net income for 2025, citing higher catastrophe-related losses and lower underwriting income across several business segments.
The company reported net income of US$27.3 million for the three months ending March 31, 2025, down from US$37.9 million in the same period a year earlier. Core operating income fell to US$19.5 million from US$40.0 million year-on-year. The core operating return on average equity dropped to 12.0%, from 29.2% in Q1 2024.
Gross written premiums rose by 13.7% to US$206.5 million in the first quarter, compared to US$181.6 million in the prior-year period. IGI attributed the increase primarily to growth in its reinsurance segment.
Underwriting income fell to US$27.9 million, from US$52.0 million a year earlier, due to a higher level of loss activity. The loss ratio climbed to 55.5% from 38.7% in Q1 2024. Catastrophe losses amounted to US$28.2 million in the latest quarter, compared to US$10.8 million in the same period the previous year.
The net policy acquisition expense ratio rose to 19.8%, up from 15.9% in Q1 2024. The company reported an increase of US$4.1 million in net policy acquisition expenses and a US$10.4 million increase in ceded written premiums. Of this, US$7.3 million was related to reinstatement premiums on loss-affected business.
The general and administrative expense ratio stood at 19.1%, compared to 19.5% a year earlier. IGI’s combined ratio increased to 94.4% for Q1 2025, up from 74.1% in the same quarter last year.
“Against a backdrop of significantly elevated natural catastrophe and large loss activity and significant macroeconomic uncertainty, including currency volatility, our performance for the first quarter of this year clearly underscores our value proposition and the strength of our diversification strategy,” IGI group president and CEO Waleed Jabsheh (pictured above) said.
Comparatively, in 2024, IGI’s gross written premiums for the year totalled US$700.1 million, an increase from US$688.7 million in 2023.
Net premiums earned rose to US$483.1 million, compared to US$447.2 million the previous year. Underwriting income stood at US$187.5 million, slightly up from US$183.1 million in 2023.
In its specialty short-tail segment, which accounted for 46% of the company’s gross written premiums, IGI reported US$96.0 million in gross written premiums, compared to US$94.2 million in Q1 2024. Net premiums earned were US$57.3 million, down from US$60.5 million. Underwriting income in this segment dropped to US$25.0 million from US$35.3 million, due to increased catastrophe losses and reduced net premiums earned.
The specialty long-tail segment, representing 20% of the gross written premiums, recorded US$40.5 million in gross written premiums, up from US$38.7 million. Net premiums earned decreased by 17.7% to US$30.6 million. The segment posted an underwriting loss of US$7.5 million, compared to a gain of US$9.9 million in the first quarter of 2024, reflecting higher net loss and loss adjustment expenses alongside lower net premiums earned.
The reinsurance segment, comprising 34% of the company's gross written premiums, reported a 43.7% increase in gross written premiums to US$70.0 million, from US$48.7 million a year earlier. Net premiums earned increased to US$24.9 million from US$16.8 million. Underwriting income rose to US$10.4 million, compared to US$6.8 million in the first quarter of 2024. The result was driven by the higher level of net premiums earned, partially offset by increased net loss and loss adjustment expenses, including catastrophe losses.
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