IGIC — International General Insurance Holdings Ltd.

IGIC Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Gross Written Premiums (GWP): $201.7 million for Q2, nearly $400 million for H1, reflecting increases of 7.4% and 1.2% year-over-year, respectively.
• Net Premiums Earned: $125 million for Q2 and $236.2 million for H1, up 8.7% and 3.7% year-over-year.
• Underwriting Income: $29.5 million for Q2 and just over $67 million for H1, a 6.7% increase over the first half of 2025.
• Combined Ratio: 95.1% for Q2 (including 18.8 points of CAT losses) and 92.2% for H1 (including 19 points of CAT losses).
• Net Income: $21 million ($0.49 per share) for Q2, down from $34.1 million ($0.77 per share) a year ago; $42.5 million ($0.98 per share) for H1, down from $61.4 million ($1.36 per share).
• Return on Average Equity: 12.6% for Q2 and 12.3% for H1, consistent with long-term averages.
• Total Capital Returned to Shareholders: Over $72 million, including $55 million in dividends and $18.2 million in share repurchases.

2. Strategic Updates and Business Highlights:

• IGI remains focused on risk-adjusted returns and active cycle management despite challenging market conditions.
• The company has expanded its portfolio in the Middle East, particularly in the Property and Casualty (PV) line, growing by 45% in Q2 due to improved pricing.
• A new branch office in GIFT City, India, has been established, with $10 million in new business already written, marking a significant expansion into a fast-growing market.
• The company continues to leverage its diversified portfolio to manage risk and capitalize on opportunities across various regions.

3. Forward Guidance and Outlook:

• Management remains cautiously optimistic about market stabilization, particularly in the long-tail segment, where improved pricing and demand are expected.
• The company anticipates continued opportunities in specialty treaty lines and is focused on maintaining underwriting discipline amid competitive pressures.
• IGI plans to adjust its approach to capital returns based on market conditions and valuations, potentially shifting from buybacks to dividends if deemed appropriate.

4. Bad News, Challenges, or Points of Concern:

• The company faced significant war-related losses, totaling approximately $39 million in the first half, marking one of the largest loss events in its history.
• The competitive landscape remains challenging, with pricing pressures in various lines of business, particularly in reinsurance and energy sectors.
• The combined ratio has increased slightly year-over-year, indicating some deterioration in underwriting performance due to elevated loss activity.
• There are ongoing risks associated with geopolitical instability in the Middle East, which could affect future performance.

5. Notable Q&A Insights:

• Management acknowledged that while the market has reacted positively to the war's impact on certain lines, the response has not been uniform across all sectors.
• They indicated that CAT losses have stabilized since the peak in March and April, but the situation remains fluid.
• The company is taking a cautious approach to reserving, particularly in long-tail segments, reflecting a prudent view based on accumulated data and experience.
• Management expressed a commitment to maintaining underwriting discipline and managing exposures effectively, regardless of broader market trends.

Overall, IGI demonstrated resilience in Q2 2026 despite significant challenges, with a focus on strategic growth and maintaining strong financial health.