IGI worked claims & rate to hack 12 points from Q1 combined ratio
Specialist commercial re/insurer International General Insurance Holdings (IGI) upped its Q1 underwriting profits by half on a decline in claims that hacked an eye-opening 12.4 points from the group’s combined ratio.
Gross written premium of $128 million was up 27.3% year on year with management crediting new business across “all segments and virtually all lines” as well as rate increases on existing business across all segments. Mark growth at 18.3% in long-tail lines and 29.6% in short-tail. Reinsurance GWP of $13.7 million was up by a half from the prior year's $9.0 million.
After handing a fast-rising share to reinsurers and earning prior sales into the books, net earned premiums had risen a more moderate 6.0% year on year.
Growth came as the group “continued to take advantage of a robust rating environment and capitalize on market opportunities in all areas of our business, while continuing to strengthen our existing portfolio,” CEO Wasef Jabsheh (pictured) said.
With claims down, including heavy favourable prior year adjustments for 20.1 pints and 5.3 points from the current period, net underwriting profits grew nearly 50% year on year to $41.3 million. IGI took an eye-opening 12.4 points from its combined ratio to 72.2%., what Jabsheh called “an exceptional result and well below our long-term average of around 90%.”
“I would note that IGI has minimal direct exposure to Russia and Ukraine and we don’t expect any material losses arising from the conflict there,” Jabsheh added.
Jabsheh sells the 2022 outlook as a growth story, built in part on continued rate hardening.
“We expect that our markets and the rating environment will remain favourable for the foreseeable future, resulting in profitable growth in 2022,” he said.
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