International General Insurance Holdings has reported net income of $27.3 million for the first quarter of the year, a drop of $10.6 million compared with Q1 2024.

IGI group president and chief executive officer, Waleed Jabsheh, said his firm had posted relatively solid results for the first quarter of 2025, highlighted by a combined ratio of 94.4 per cent and a return on average equity of 16.7 per cent.

“Against a backdrop of significantly elevated natural catastrophe, large-loss activity and significant macroeconomic uncertainty, including currency volatility, our performance for the first quarter of this year clearly underscores our value proposition and the strength of our diversification strategy,” Mr Jabsheh said.

He said while market conditions were becoming more challenging overall, he remained positive about the year ahead.

“We have consistently demonstrated our ability to manage through all market cycles and to create value through intelligent and disciplined risk selection and shifting to those lines and markets with the best risk-adjusted returns, as well as returning excess capital to shareholders,” he said.

In the first three months, IGI returned $43.5 million to shareholders in dividends, including a special dividend, and share repurchases.

Underwriting income was down $27.9 million compared with $52 million during the same period last year, the loss attributed to a higher level of loss activity.

Gross written premiums were $206.5 million for the three-month period ending March 31, up $24.9 million, with the increase primarily in the reinsurance segment.

Core operating income was $19.5 million for the first quarter, compared with $40 million for the same period in 2024. The firm generated a core operating return on average equity (annualised) of 12 per cent and 29.2 per cent for the first quarters of 2025 and 2024 respectively.

The loss ratio was 55.5 per cent for the quarter ended March 31 compared with 38.7 per cent for the same period in 2024, largely driven by catastrophe losses of $28.2 million in the first quarter of 2025, compared with $10.8 million in the first quarter of 2024.

The net policy acquisition expense ratio for the first quarter of 2025 was 19.8 per cent, compared with 15.9 per cent for the same quarter of 2024, primarily due to the higher level of reinstatement premiums recorded in the first quarter of 2025.

The first quarter of 2025 experienced an increase in net policy acquisition expenses of $4.1 million and increase in ceded written premium of $10.4 million, of which $7.3 million was reinstatement premiums on loss-affected business.

The general and administrative expense ratio was 19.1 per cent for the first quarter of 2025 compared with 19.5 per cent for the same period last year.