By Mia MacGregor

Feb 25 - (The Insurer) - International General Insurance Holdings closed Q4 2024 by cutting 4 points from its combined ratio to 77.8% as the (re)insurer reported core operating income of $0.89 per diluted share that came in ahead of the $0.74 consensus estimate of three analysts as per MarketWatch.

• Combined ratio down 4 points YoY to 77.8%

• Core operating income per diluted share of $0.89 beats analysts' consensus estimate

• GPW increases 5.9% YoY to $174.6 million

• GPW grows in specialty short-tail and reinsurance, but dips in specialty long-tail

The improvement in the company's combined ratio reflected a 4.6 point year on year improvement in its fourth quarter 2024 loss ratio to 43.0%.

IGI booked underwriting income that increased to $48.8 million in 2024's fourth quarter from the prior year period's $43.5 million. That increase, IGI noted, was primarily due to higher net premiums earned.

The Bermuda-based company reported core operating income of $40.9 million in Q4 2024, up from $30.0 million in the prior year period.

Its core operating income per diluted share totalled $0.89 for the final three months of last year, up from Q4 2023's $0.65.

Gross premiums written (GPW) increased by 5.9 percent to $174.6 million in Q4 2024, up from $164.9 million in the prior-year quarter. The company attributed this growth primarily to its reinsurance segment.

Net investment income dipped by $0.9 million year on year to $13.6 million in 2024's fourth quarter.

The specialty short-tail segment recorded GPW of $106.2 million for the fourth quarter of 2024, up from the prior year period's $105.2 million. Underwriting income in the specialty short-tail segment declined by $6.2 million year on year to $21.0 million, with the reduction primarily due to higher net loss and loss adjustment expenses, IGI said.

In specialty long-tail, GPW totalled $63.6 million in 2024's fourth quarter, down from the prior year period's $64.6 million. Specialty long-tail underwriting income increased to $14.3 million in 2024's fourth quarter from the prior year period's $7.0 million, with the rise driven by lower net loss and loss adjustment expenses.

Within IGI's reinsurance segment, GPW totalled $4.8 million in 2024's fourth quarter, compared with negative-$4.9 million in the same period in 2023, which the company noted had been impacted by prior period premium adjustments. Reinsurance underwriting income increased $4.2 million year on year to $13.5 million for Q4 2024, driven by higher net premiums earned, partially offset by increased net loss, loss adjustment expenses, and policy acquisition costs.

For full year 2024, core operating income reached $144.8 million, up from 2023's $133.8 million.

Underwriting income for 2024 increased to $187.5 million from $183.1 million in the prior year, with an increase in net premiums earned partially offset by a higher level of net loss and loss adjustment expenses, according to the company.

The full-year combined ratio was 79.9 percent, compared to 76.7 percent in 2023.

GPW for 2024 totaled $700.1 million, up from $688.7 million in 2023. IGI attributed the increase to growth in its reinsurance and short-tail segments, which was partially offset by a decline in the long-tail segment.

The full-year loss ratio was 44.7 percent, compared with 42.3 percent in 2023.

Commenting on the results, IGI's president and CEO Waleed Jabsheh said: “We posted strong fourth quarter financial results to round out another excellent year in 2024.

“For the full year, we delivered a combined ratio of 79.9%, and produced record net income and operating income, leading to a return on average equity of 22.6% and a core operating return on average equity of 24.2%. Most importantly, we grew our book value per share by almost 20%.”