Bermuda-based International General Insurance Holdings Ltd, the specialty commercial re/insurer, has reported net profit for the second quarter of $5.6 million, compared to a net profit of $12 million for the same quarter a year ago.

For the first six months of 2021, net profit was $20.1 million, compared to a net profit of $11.2 million for the first six months of 2020.

Core operating income was $9 million and $10.3 million for the quarters ended June 30, 2021 and June 30, 2020, respectively.

Core operating income was $23.8 million for the first six months of 2021 compared to $23.7 million for the comparable period in 2020.

Gross written premiums were $166.1 million for the quarter ended June 30, representing growth of 21 per cent compared to $137.3 million for the same quarter last year.

For the first six months of 2021, gross written premiums were $266.8 million, an increase of 12.8 per cent compared to $236.5 million for the comparable period in 2020.

The combined ratio for the second quarter was 92.3 per cent, compared to 84 per cent for the same quarter in 2020. The quarter-over-quarter increase is primarily the result of the higher current accident year loss ratio of 55.8 per cent in the quarter ended June 30, compared to 49.8 per cent in 2020, the company said.

The combined ratio for the six months ended June 30 was 88.5 per cent, compared to 82.6 per cent for the same period a year ago, which had benefited primarily from the weakening of the pound sterling against the US dollar.

Total investment income was $4.5 million for the second quarter, compared to $4.7 million in the second quarter of 2020. For the first six months of 2021, total investment income was $9.7 million compared to $2.6 million in 2020.

The company’s board of directors has declared an ordinary common share dividend of 16 cents per share.

Wasef Jabsheh, chairman and chief executive officer of IGI, said: “Our results for the second quarter and first half of 2021 provide further confirmation of the successful track record IGI has built over the past 20 years. Premium growth in the second quarter was strong at 21 per cent, after more muted production in the first quarter, with strong profitability for the first half of 2021 reflected in our 88.5 per cent combined ratio.

“With market conditions holding up well and rate increases across our portfolio at close to 13 per cent, we remain focused on maximising opportunities.

“In addition to seeing attractive business in the new contingency line written by our UK subsidiary in London, we recently announced that our subsidiary in Malta has been granted approval by local regulators to begin writing business.

“Overall, Europe represents a good growth opportunity for IGI and we expect our results in the coming months and years to reflect this. Our Malta subsidiary is already seeing significant interest and activity and we have an experienced team in place to capitalise on opportunities across Europe.

“We have grown our book value per share by 1.9 per cent for the year to date in 2021, and 17 per cent since becoming a public company in March 2020.

“I am very pleased with our progress, particularly in what has been an extraordinary and turbulent time for all of us, and we look forward to continuing our track record of generating value for our shareholders over the long-term.”

IGI said the financial strength ratings of the IGI group have been assigned to the company’s new European subsidiary in Malta.

S&P Global Ratings has assigned an “A-” financial strength rating to IGI Europe, while AM Best has assigned an “A” (Excellent) financial strength rating. Both ratings have a stable outlook.

The company said both S&P and AM Best cited IGI Europe’s strategic relationship to, and support from, IGI as key factors in its decisions, as well as IGI’s balance sheet strength and its track record of strong operating performance.

IGI is an international specialty risks commercial insurer and reinsurer underwriting a diverse portfolio of specialty lines.

The company is registered in Bermuda, with operations in Bermuda, London, Malta, Dubai, Amman, Labuan and Casablanca.