Core Viewpoint - International General Insurance Holdings Ltd. (IGIC) reported quarterly earnings of $0.87 per share, missing the Zacks Consensus Estimate of $0.91 per share, but showing an increase from $0.67 per share a year ago [1][2] Financial Performance - The company posted revenues of $128.6 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 5.02% and down from $138.1 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [2] Stock Performance - International General Insurance shares have declined approximately 9.7% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.86 on revenues of $138.2 million, and for the current fiscal year, it is $2.69 on revenues of $535.5 million [7] - The estimate revisions trend for the company was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Insurance - Multi line industry, to which International General Insurance belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Premiums and Revenues - Gross written premiums for Q3 2025 were $131.3 million, down from $138.3 million in Q3 2024, while for the first nine months of 2025, they were $525.6 million, a slight increase from $525.5 million in the same period of 2024[2][6] - Net premiums earned for Q3 2025 were $114.7 million, compared to $126.1 million in Q3 2024, and for the first nine months of 2025, they were $342.5 million, down from $362.5 million in the same period of 2024[2][4] - Total revenues for the nine months ended September 30, 2025, were $390.6 million, slightly down from $403.8 million in the same period of 2024[27] - For the nine months ended September 30, 2025, the total gross written premiums reached $525.6 million, while net written premiums were $350.8 million[41] Underwriting Performance - Underwriting income for Q3 2025 was $51.4 million, an increase from $41.4 million in Q3 2024, but for the first nine months of 2025, it decreased to $114.3 million from $138.7 million in the same period of 2024[2][7] - The combined ratio improved to 76.5% in Q3 2025 from 86.0% in Q3 2024, while for the first nine months of 2025, it was 87.1%, up from 80.5% in the same period of 2024[2][11] - The loss ratio improved to 39.3% in Q3 2025 from 51.5% in Q3 2024, but increased to 49.3% for the first nine months of 2025 from 45.3% in the same period of 2024[2][8] - The net loss and loss adjustment expenses for the quarter ended September 30, 2025, were $45.1 million, compared to $65.0 million in 2024[48] Net Income and Earnings - Net income for Q3 2025 was $33.5 million, slightly down from $34.5 million in Q3 2024, and for the first nine months of 2025, it was $94.9 million, compared to $105.1 million in the same period of 2024[2][4] - Core operating income for Q3 2025 was $38.6 million, up from $30.7 million in Q3 2024, but for the first nine months of 2025, it decreased to $80.8 million from $103.9 million in the same period of 2024[2][5] - The diluted earnings per share attributable to equity holders for the nine months ended September 30, 2025, was $2.14, down from $2.31 in 2024[45] - The net income available to common shareholders for the quarter ended September 30, 2025, was $33.5 million, compared to $34.3 million in 2024[45] Shareholder Equity and Assets - Total shareholders' equity increased to $686.5 million at September 30, 2025, compared to $654.8 million at December 31, 2024[23] - Book value per share increased by 9.3% to $16.23 as of September 30, 2025, compared to $14.85 at December 31, 2024[25] - Average shareholders' equity increased to $674.4 million in Q3 2025, compared to $619.9 million in Q3 2024[55] - Total assets increased to $2,121.8 million as of September 30, 2025, from $2,037.6 million at December 31, 2024[30] Investment Performance - Investment income for the first nine months of 2025 increased by 6.8% to $40.6 million, compared to $38.0 million in the same period of 2024[19] - Net investment income for the nine months ended September 30, 2025, was $45.8 million, up from $40.3 million in the same period of 2024[27] - The investment yield for the quarter ended September 30, 2025, was 4.1%, slightly down from 4.2% in the same quarter of 2024[43] Foreign Exchange Impact - The net foreign exchange loss for Q3 2025 was $6.1 million, compared to a gain of $8.6 million in Q3 2024, while the net foreign exchange gain for the first nine months of 2025 was $11.1 million, up from $4.7 million in the same period of 2024[20][21] - The company reported a net foreign exchange gain of $6.1 million in Q3 2025, contrasting with a loss of $8.6 million in Q3 2024[55] Company Ratings and Outlook - IGI is rated "A" (Excellent)/Stable by AM Best and "A" (Strong)/Stable by S&P Global Ratings[62] - Forward-looking statements indicate potential risks including competition, economic factors, and geopolitical tensions affecting performance[63] Share Repurchase - The company repurchased 789,575 common shares at an average price of $23.79 per share during the third quarter of 2025[24] Portfolio and Operations - The company has a diverse portfolio including energy, property, and marine trades, with operations in multiple global locations[62]

Core Insights - International General Insurance Holdings Ltd. (IGI) has appointed Malcolm Barnes as Head of Specialty Treaty, enhancing its reinsurance capabilities [1] Company Developments - Malcolm Barnes will be based in IGI's London office at 20 Fenchurch and is tasked with building and managing the specialty treaty reinsurance business [1] - The addition of Barnes is expected to provide further depth and breadth to IGI's reinsurance team, indicating a strategic focus on expanding its presence in the London market [1]

Group 1 - The individual investor has over 10 years of trading experience and has developed as a stock analyst for the last five years, focusing on value companies linked to commodity production [1] - The investor emphasizes the importance of sustained free cash flows, low leverage, and sustainable debt in identifying companies with high recovery potential [1] - There is a preference for analyzing underappreciated sectors such as oil & gas, metals, and mining, particularly in emerging markets, to uncover investment opportunities [1] Group 2 - The investor is interested in companies with a strong pro-shareholder attitude, including solid buyback programs and consistent dividend distributions [1] - The educational background includes a financial master's degree specializing in company valuation and an economic degree [1] - The motivation is to share valuable information with the Seeking Alpha community to aid individual investment decisions [1]

Financial Performance - Net income for the six months ended June 30, 2025, was $61,446 thousand, a decrease of 13.06% from $70,661 thousand in the prior year[8] - Total comprehensive income increased to $80,830 thousand for the six months ended June 30, 2025, compared to $67,398 thousand in 2024, marking a growth of approximately 19.97%[8] - Basic earnings per share decreased to $1.37 for the six months ended June 30, 2025, down from $1.56 in the same period of 2024[6] - Net income available to common shareholders for the six months ended June 30, 2025, was $60,649,000, down from $69,071,000 in 2024, reflecting a decline of 12.5%[38] - Diluted earnings per share for the six months ended June 30, 2025, was $1.36, down from $1.55 in 2024, representing a decline of 12.3%[38] Assets and Liabilities - Total assets increased to $2,124,090 thousand as of June 30, 2025, compared to $2,037,538 thousand at December 31, 2024, reflecting a growth of approximately 4.26%[4][5] - The total liabilities increased to $1,461,774 thousand as of June 30, 2025, from $1,382,706 thousand at December 31, 2024, indicating a rise of approximately 5.71%[5] - The reserve for unpaid loss and loss adjustment expenses increased to $801,496 thousand as of June 30, 2025, from $794,243 thousand at December 31, 2024[5] - As of June 30, 2025, total cash, cash equivalents, and restricted cash amounted to $180.524 million, an increase from $168.246 million as of December 31, 2024[21] Cash Flow - Net cash provided by operating activities decreased significantly to $27,172 thousand for the six months ended June 30, 2025, compared to $120,732 thousand in the same period of 2024[12] - Cash and cash equivalents at the end of the period were $180,524 thousand, slightly down from $185,607 thousand at the end of June 2024[12] Shareholder Returns - The company paid dividends of $41,891 thousand during the six months ended June 30, 2025, compared to $24,368 thousand in the same period of 2024[12] - The company repurchased 1,502,024 shares during the period, increasing the total treasury shares to 671,709 as of June 30, 2025[33] Fair Value Measurements - The total fair value of assets measured at fair value as of June 30, 2025, was $1.047 billion, with corporate bonds contributing $975.502 million[28] - The change in fair value for equity-method investments measured at fair value increased to $2.125 million as of June 30, 2025[29] - There were no transfers into or out of Level 3 financial assets during the six months ended June 30, 2025[30] Accounting Standards - The company had no new U.S. GAAP accounting standards adopted that would materially impact the financial statements[20] Other Information - There were no material subsequent events between June 30, 2025, and the date of the report that required disclosure[39]

Financial Data and Key Metrics Changes - The company reported net income of $34.1 million for Q2 2025 and $61.4 million for the first half of the year, resulting in an annualized return on average equity of 20.8% for Q2 and 18.6% for the first half [6][31] - Book value per share increased by 3.4% to $15.36 in the first half of the year, with a total of $77 million returned to shareholders through dividends and share repurchases [7][31] - Gross premiums for Q2 2025 were just under $190 million, reflecting a decrease of 8.7%, while for the first six months, gross premiums were up almost 2% to around $395 million [15][16] Business Line Data and Key Metrics Changes - In the short tail segment, gross premiums decreased by 8.5% for Q2 and 4.2% for the first half, with underwriting income up almost 21% in Q2 due to lower losses compared to the previous year [21][22] - The reinsurance segment saw flat gross premiums compared to Q2 last year, but a growth of about 33% for the first half, driven by strong renewals and new business [22][23] - The long tail segment faced challenges, with gross premiums down almost 12% in Q2 and 5% in the first half, resulting in an underwriting loss of $3 million for Q2 [26][27] Market Data and Key Metrics Changes - The company noted competitive pressures in various areas of its portfolio, particularly in the long tail segment, which is most affected by foreign currency movements [10][11] - The underwriting portfolio is diversified geographically, with about half transacted in non-U.S. Dollar currencies, impacting the revaluation of loss reserves [12][14] - The overall market conditions remain generally healthy, but certain areas are experiencing increased competition, particularly in property and energy lines [32][38] Company Strategy and Development Direction - The company focuses on cycle management, moving capital to areas with strong rate momentum and high margins while reducing exposure in less profitable areas [7][10] - There is a commitment to not sacrifice bottom-line profitability for top-line growth, emphasizing sustainable value generation for the long term [36][43] - The company is expanding its capabilities in specific markets while maintaining a cautious approach to underwriting in competitive segments [37][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating headwinds and highlighted the importance of a diversified strategy to manage cyclicality and volatility [42][43] - The outlook for the remainder of 2025 includes continued contraction in certain areas of the portfolio where profitability does not meet targets [32][34] - Management remains optimistic about finding profitable opportunities across various lines despite competitive pressures [32][39] Other Important Information - The company repurchased over 1.34 million shares at an average price of $23.28 during Q2, with approximately 800,000 shares remaining on the repurchase authorization [31] - Total assets increased by over 4% to about $2.1 billion, with total investments and cash at $1.3 billion [30] Q&A Session Summary Question: Net to gross retention on a written premium basis was 64% in the quarter, down from 73% year over year. Can you speak to that? - Management indicated that the decrease was primarily due to opportunistic buying of facultative reinsurance in a softer market, aiming to generate higher fee income [46][47] Question: Regarding the professional indemnity portfolio that will be non-renewed, what was the session level a couple of years ago versus now? - Management noted that the quota share has hovered between 60% to 85% over the years, with the intent of non-renewal aimed at improving overall profitability [48][49]

Financial Highlights - IGI's total assets reached approximately $700 million as of full year 2024[4] - The company's gross written premium was $2.1 billion as of June 30, 2025[4] - IGI reported a net income of $34.1 million for Q2 2025, a 4% increase over Q2 2024[20] - The company's net income for the first half of 2025 was $61.4 million, a 13.2% decrease compared to the first half of 2024[20] - IGI's book value per share increased by 4.8% from March 31, 2025, to $15.36[20] Underwriting Performance - IGI's combined ratio for Q2 2025 was 90.5%[20] - The combined ratio for the first half of 2025 was 92.4%[20] - Underwriting income for Q2 2025 was $35.0 million[20] - Underwriting income for the first half of 2025 was $63.0 million[20] Capital Management - IGI returned $33.5 million to shareholders in Q2 2025 through dividends and share repurchases[20] - The company returned $77.0 million to shareholders in the first half of 2025, including a $0.85 special dividend and share repurchases[20] - As of June 30, 2025, the Jabsheh family owned 35.8% of the company[9]

Core Viewpoint - International General Insurance Holdings Ltd. (IGIC) reported quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.55 per share, and down from $0.74 per share a year ago, indicating a negative earnings surprise of -7.27% [1] Financial Performance - The company posted revenues of $132.9 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 5.34%, and down from $135.6 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [2] Stock Performance - International General Insurance shares have declined approximately 1.2% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.82 for the coming quarter and $2.67 for the current fiscal year, with revenues expected to be $143.6 million and $560.4 million respectively [7] - The estimate revisions trend for the company was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting shares are expected to perform in line with the market in the near future [6] Industry Context - The Insurance - Multi line industry, to which International General Insurance belongs, is currently in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - The company reported a combined ratio of 94.4%, indicating a deterioration compared to previous quarters due to elevated loss activity and macroeconomic uncertainties [6][19]. - Net income for Q1 2025 was $27.3 million or $0.59 per share, down from $37.9 million or $0.84 per share in Q1 2024, primarily due to lower underwriting income and higher reinstatement premiums [19][30]. - Core operating income decreased to $19.5 million or $0.42 per share from $40 million or $0.89 per share year-over-year [20]. Business Line Data and Key Metrics Changes - Gross written premiums (GWP) increased by over 13% to just over $206 million, driven mainly by growth in the reinsurance segment [16]. - The short tail segment saw gross premiums rise by 2%, but earned premiums fell by 5.3% due to reinstatement premiums impacting reinsurance purchases [23][24]. - The long tail segment experienced slight premium growth but recorded an underwriting loss of $7.5 million compared to a profit of $10 million in Q1 2024, attributed to higher loss activity and FX impacts [28]. Market Data and Key Metrics Changes - The reinsurance treaty segment showed significant top-line growth of almost 44%, driven by new business in specialty treaty lines [25]. - The company noted heightened competitive pressure in various markets, particularly in the long tail segment, where net rates remain adequate despite several quarters of decline [32][33]. - The U.S. market was highlighted as a key growth area, with expectations for continued opportunities despite increased competition [36][38]. Company Strategy and Development Direction - The company emphasized its diversification strategy as a key strength in navigating market volatility and uncertainty [6][8]. - Management expressed confidence in the ability to find new business opportunities while maintaining a disciplined approach to underwriting [11][31]. - The focus remains on long-term growth rather than short-term results, with a commitment to protecting the portfolio and servicing clients effectively [10][11]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by elevated loss activity and geopolitical tensions but remained optimistic about the company's resilience and strategic positioning [10][14]. - The outlook for the remainder of the year includes a cautious approach to new business in competitive markets, particularly in the U.S. and Europe [36][38]. - Management reiterated the importance of maintaining adequate rates and being selective in underwriting to ensure profitability [62][66]. Other Important Information - The company paid a special dividend of $0.85, returning a total of $43.5 million to shareholders during the quarter [7][30]. - Total assets increased by almost 3% to $2.1 billion, with total equity just over $650 million at the end of the quarter [29][30]. Q&A Session Summary Question: Inquiry about the professional indemnity portfolio - Management confirmed that the area under review is similar to one previously remediated, indicating ongoing performance issues but no systemic problems [46][47]. Question: Clarification on combined ratio deterioration - Management explained that the reported deterioration was influenced by currency impacts, with a more accurate comparison showing a 6 to 7 point deterioration when adjusted for FX [51][53]. Question: Impact of tariffs on marine and port business - Management stated that there has been no significant impact from tariffs on their marine business, although cargo values might be affected [60]. Question: Outlook for aviation market - Management indicated that the aviation market remains challenging, but their book has shown solid profitability despite a reduced portfolio [68].

Financial Data and Key Metrics Changes - The company reported a combined ratio of 94.4%, indicating a deterioration primarily due to elevated loss activity and reinstatement premiums [7][19][20] - Net income for Q1 2025 was $27.3 million or $0.59 per share, down from $37.9 million or $0.84 per share in Q1 2024 [20][21] - Core operating income decreased to $19.5 million or $0.42 per share compared to $40 million or $0.89 per share in the same quarter last year [21] - Total assets increased by almost 3% to $2.1 billion, with total investments in cash at $1.3 billion [30] Business Line Data and Key Metrics Changes - Gross written premiums (GWP) grew by over 13% to just over $206 million, driven mainly by the reinsurance segment [18] - The short tail segment saw gross premiums up 2% but earned premiums down 5.3% due to reinstatement premiums [24] - The reinsurance treaty segment experienced a top line growth of almost 44%, primarily from new business in specialty treaty lines [26] - The long tail segment faced challenges with premiums up slightly but recorded an underwriting loss of $7.5 million compared to a profit of $10 million in Q1 2024 [29] Market Data and Key Metrics Changes - The company noted heightened foreign exchange volatility impacting financial results, particularly with the U.S. Dollar weakening against major currencies [17] - The U.S. market remains the biggest growth area, with expectations for continued opportunities despite increased competition [38][39] Company Strategy and Development Direction - The company emphasizes a long-term perspective, focusing on stability and resilience amid market volatility [12][13] - A diversified strategy is highlighted as a key strength, allowing the company to navigate market cycles effectively [10][32] - The company is committed to maintaining discipline in underwriting and risk selection, particularly in challenging segments like long tail [28][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the elevated loss environment and macroeconomic uncertainties but expressed confidence in the company's ability to manage these challenges [7][12] - The outlook for the remainder of the year includes a cautious approach to new business, particularly in competitive markets [36][38] - Management noted that while rates are declining, many areas still exhibit rate adequacy, allowing for continued business writing [62] Other Important Information - The company paid a special dividend of $0.85, returning a total of $43.5 million to shareholders during the quarter [8][31] - The G&A expense ratio showed marginal improvement to 19.1% from 19.5% year-over-year [24] Q&A Session Summary Question: Inquiry about the professional indemnity portfolio - Management confirmed that the area under review is similar to one previously remediated, indicating ongoing performance issues but no systemic problems [46][47] Question: Clarification on combined ratio deterioration - Management explained that the combined ratio deterioration was influenced by currency impacts, with a more accurate comparison showing a 6 to 7 point deterioration when adjusted for currency [51][53] Question: Impact of tariffs on marine and port business - Management stated that there has been no significant impact from tariffs on their marine business, although cargo values might be affected [60] Question: Outlook for aviation market - Management indicated that the aviation market remains challenging, with a reduced book size but solid profitability in recent quarters [68]