Bermuda-registered International General Insurance Holdings Ltd reported today that its full-year profit nearly doubled in 2022, as claims declined.

IGI said net income for the year ended December 31, 2022 was $85.5 million, compared to $43.6 million for 2021.

The company said: “The increase was primarily the result of higher net premiums earned and total investment income, together with a lower level of net claims and claim adjustment expenses driven by strong underwriting results and reinforced by higher favourable development of net loss reserves from prior accident years, which benefited from the currency devaluation impact on loss reserves denominated in pounds sterling and euros during the year.

Net income in the fourth quarter jumped to $25.7 compared to $9.1 million for the same period in 2021 and was largely a result of an increase of $10.8 million in net premiums earned and “positive movement” of $11.6 million in total investment income.

IGI also recorded an increase in foreign exchange gains of $10.8 million as a result of a greater degree of currency revaluation against the US dollar on a comparative basis.

“These increases were partially offset by unfavourable development of net loss reserves from prior accident years, which were negatively impacted by the currency revaluation on loss reserves denominated in pounds sterling and euros during the quarter.

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IGI Fourth Quarter and Twelve Months 2022 Financial Results_March 2_22_FINAL.pdf

Core operating income was $13.5 million for the quarter ended December 31, 2022, compared to $13.6 million for the comparable period in 2021.

Core operating income was $94.4 million for the year ended December 31, 2022, compared to core operating income of $53.1 million for the year ended December 31, 2021.

Wasef Jabsheh, IGI’s chairman and chief executive, said: “IGI finished its 20th-anniversary year with excellent results across the board, marked by continued profitable growth, diversification and consistent execution of our strategy, reflected in a 78.5 per cent combined ratio and 22.7 per cent core operating return on average shareholders’ equity for the full year.

“This is particularly gratifying given the many challenges our industry faced during 2022, including significant natural catastrophes, rising financial and social inflation, currency volatility and political instability.”

Mr Jabsheh added: “So far in 2023, the market overall continues to be robust, though there remains wide variation in terms and conditions by line of business and geography. We expect the dislocation in reinsurance markets that was evident in the lead-up to the January renewals will result in plenty of opportunity for us to continue to achieve profitable growth.”

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