International General Insurance Holdings reported a third-quarter profit of $28 million, down 16.4 per cent from a year earlier, as underwriting income fell and premium volumes declined.

The Bermudian-registered specialty insurer and reinsurer earned 66 cents per diluted share, compared with 75 cents in the same period last year, when net income was $33.5 million.

Its combined ratio deteriorated to 85.7 per cent from 76.5 per cent. A ratio below 100 per cent indicates an underwriting profit.

Underwriting income fell to $43 million from $51.4 million, although all three business segments remained profitable.

Gross written premiums declined 8.9 per cent to $119.6 million, primarily reflecting lower energy business in the specialty short-tail segment. Net premiums earned rose to $124.5 million from $114.7 million.

Waleed Jabsheh, IGI’s group president and chief executive, said: “We remain focused on disciplined portfolio management.

“The investments we have made in recent years to expand and diversify our capabilities — including our specialty reinsurance business, and the establishment of our new platform in India — are generating profitable new opportunities, even as market conditions become more challenging.”

For the first nine months, net income fell to $70.5 million from $94.9 million. Mr Jabsheh said the company had absorbed the largest single loss event in its 25-year history — the Middle East war — while returning almost $80 million to shareholders through dividends and share repurchases.

Catastrophe losses totalled $53.3 million for the nine months, with Middle East war losses the primary driver of elevated claims activity. The nine-month combined ratio rose to 90.1 per cent from 87.1 per cent.

The specialty short-tail segment’s quarterly underwriting income declined to $20.3 million from $29.6 million, while specialty long-tail underwriting income fell to $10 million from $11.4 million.

Reinsurance underwriting income increased to $12.7 million from $10.4 million, supported by higher net premiums earned.

Quarterly core operating income, which excludes certain investment and foreign-exchange movements, fell to $28.2 million from $38.6 million. Annualised core operating return on average equity was 16.9 per cent, compared with 22.9 per cent a year earlier.

Net investment income increased to $14.5 million from $13.1 million.

Shareholders’ equity stood at $663.4 million at September 30, down from $710.2 million at year-end. Book value per share declined to $15.99 from $16.91, primarily reflecting negative market-value movements in the fixed-income portfolio.

IGI declared a quarterly dividend of 7.5 cents per common share, payable on December 2 to shareholders of record on November 17. Nine-month gross written premiums were $518.5 million, compared with $525.6 million a year earlier.

• This story was generated by machine and edited by The Royal Gazette newsroom