IGIC — International General Insurance Holdings Ltd.

IGIC Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Gross Written Premiums: $197.2 million, down 4.5% year-over-year, reflecting cycle management actions.
• Underwriting Income: $37.7 million, up 35.1% from Q1 2025.
• Combined Ratio: 89.1%, improved by 5.3 points compared to Q1 2025, including $15 million in losses from the Middle East conflict.
• Return on Average Equity (ROE): 12.7%; Core ROE: 14.3%.
• Book Value per Share: $15.60, a slight decline from year-end 2025.
• Dividends and Share Repurchases: Total capital return of approximately $65 million, including $51.5 million in dividends and $13.1 million in share repurchases.

2. Strategic Updates and Business Highlights

• The company emphasized its resilience and stability amid global uncertainties, particularly due to the ongoing conflict in the Middle East.
• IGIC is leveraging its long-standing relationships and expertise in the region to navigate current market dynamics.
• The long-tail segment showed strong growth, with a 22% increase in top-line driven by new business in professional indemnity and marine liability lines.
• The company is focusing on specialty treaty lines in reinsurance, anticipating opportunities due to recent market losses.

3. Forward Guidance and Outlook

• The management expressed cautious optimism regarding future opportunities in the political violence and marine sectors, expecting continued rate increases due to the ongoing instability in the Middle East.
• The company plans to maintain disciplined execution and risk selection, with a focus on long-term value creation for shareholders.
• Management indicated that while competitive pressures remain, they are well-positioned to capitalize on emerging opportunities.

4. Bad News, Challenges, or Points of Concern

• Market Conditions: The ongoing conflict in the Middle East has resulted in significant insured losses (estimated upwards of EUR 3 billion), impacting the overall market.
• Competitive Pressures: The reinsurance segment is experiencing increased competition, which may affect margins.
• Declining Premiums: The decline in gross written premiums reflects tougher market conditions and the non-renewal of certain reinsurance programs.
• Reserve Development: While the company reported favorable reserve releases, there is a need for cautiousness as market conditions worsen.

5. Notable Q&A Insights

• Management confirmed that the energy loss from Q1 amounted to $10.5 million, resulting from a collision involving an offshore oil platform due to war-related circumstances.
• There is uncertainty regarding the durability of the political violence market, with management suggesting that even if political stability is restored, the market may not revert to previous conditions quickly.
• The company expects continued development of losses from the Middle East conflict into Q2, but anticipates that the impact will be more limited than in Q1.
• Management reiterated their commitment to disciplined underwriting and risk management, emphasizing that they will not sacrifice profitability for growth.

Overall, IGIC reported strong financial performance in Q1 2026, navigating significant challenges while positioning itself for future opportunities in a volatile market.