13 March 2017Insurance

Dubai’s IGI shrinks business in 2016 due to soft market but remains optimistic

Dubai-based re/insurer International General Insurance Holdings (IGI) has recorded lower gross written premiums and net profits for 2016, but management claims to “view future prospects with optimism.”

The group reported gross written premiums of $231.4 million for 2016, down from $242.3 million in 2015. Net profits fell to $32.1 million from $35.0 million over the period.

“Despite the continued competitive trading environment keeping pressure on rates, IGI’s underwriting teams upheld their focus on quality business whilst maintaining the discipline required to navigate through these challenging times,” said Wasef Jabsheh, vice chairman and CEO of IGI.

Nevertheless, the combined ratio deteriorated to 87.4 percent in 2016 from 84.3 percent in 2015. The group underwrites a worldwide portfolio including energy, property, marine, engineering, casualty, general aviation, ports & terminals and proportional reinsurance treaty business with the main geographical focus being the Afro-Asian markets.

“IGI’s story is one of disciplined, methodical growth. Based on our excellent ratings, our long-standing client relationships and our profit-oriented underwriting policy, we are in a good position to weather these tough market conditions. Our 87 percent combined ratio is a testament to our strict underwriting discipline and focus on maintaining a healthy and diversified portfolio,” Jabsheh noted.

Gross earned premiums increased to US$241.3 million in 2016 from $238.4 million in 2015; net earned premiums rose to $156.9 million from US$155.8 million over the period.

Net investment income was up marginally at $12.8 million in 2016 from $12.5 million in 2015.

“We have taken important steps during the year, including a successful rebrand and the setup of innovative technology oriented support and business modelling. Despite soft market conditions, we view future prospects with optimism," Jabsheh said.

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