IGI has shown strong performance in 2025, with a 10% growth in book value per share to $16.23 and returning close to $100 million to shareholders. The company’s S&P financial grade was upgraded to A with a stable outlook, highlighting its growth from $25 million to almost $700 million in shareholders’ equity.

Waleed Jabsheh, speaking on IGI’s third-quarter results, emphasized the company’s strong underwriting and investment performance, positioning them well for the future. The recent upgrade of their financial rating to full A by S&P will open doors to new business opportunities. The Board has authorized a new $5 million share repurchase program.

In Q3, gross premiums written were over $131 million, with a slight decrease of 5%, primarily driven by lower volume in reinsurance and long-tail segments. Net premiums earned were just under $115 million, with reinstatement premiums impacting the business. The combined ratio for Q3 was 76.5%, benefiting from positive currency revaluation.

Despite competitive pressures in certain segments, IGI’s gross premiums for the first 9 months were up marginally to over EUR 525 million. Net premiums earned for the same period were $342.5 million, including reinstatement premiums. The combined ratio for the first 9 months was just over 87%, impacted by currency revaluation but showing strong performance overall. The insurance company reported a decline in net income for the third quarter, with $33.5 million per share versus $34.5 million in 2024. Core operating income was $38.6 million in Q3, up from $30.7 million in the previous year. Gross premiums for the short-tail segment increased by 2% in Q3.

Net premiums earned for the short-tail segment were down about 10.4% in Q3 compared to the same period last year. Underwriting income was down 14.7% in Q3 due to lower net premiums earned. The reinsurance segment saw gross written premiums of just over $11 million in Q3, slightly lower than the previous year.

The reinsurance segment experienced flat earned premiums in Q3 but an increase of over 21% in the first nine months of the year. Underwriting income for the reinsurance segment was up 35% in Q3 and almost 50% for the first nine months of the year. The long-tail segment has faced challenges with declining rates and margins.

The company decided to non-renew a $50 million professional indemnity account due to profitability concerns. This decision impacted the top-line perspective in the third quarter, resulting in a decrease in gross written premiums. The company continues to focus on higher margin areas of the business to improve financial results. In the fourth quarter of 2025, there will be a significant impact of approximately $25 million. Gross premiums for the third quarter and first 9 months of 2025 were down 12.6% and 7.5%, respectively. Underwriting income for the third quarter was around $11.5 million, compared to an underwriting loss of $1 million last year.

The negative impact of currency revaluation movements amounted to about $17.5 million in the first 9 months of 2025. Total assets increased by just over 4% to $2.12 billion, with total investment cash at $1.32 billion. Investment income increased by just under 7% to $40.6 million for the first 9 months, with an average annualized yield of 4.2%.

The Board approved a new repurchase authorization of 5 million common shares. Total equity was just under $690 million at the end of Q3. A return on average shareholders’ equity of about 20% was recorded for the third quarter. Book value per share grew by almost 10% in the first 9 months up to September 30.

Despite competitive pressure in the market, the company remains confident in finding opportunities to grow its portfolio and write new business. Rate adequacy is seen across much of the portfolio, with a focus on enhancing distribution capabilities and generating additional margin. The company is focusing on healthier lines and markets while reducing exposure in areas with unacceptable risk-adjusted returns.

The company’s diversified strategy allows for profitable opportunities to write new business across various lines and geographies within the portfolio. The recent rating upgrade from S&P is expected to benefit the company and improve its position in the market. Despite the softening market, the company remains committed to maintaining discipline and walking away from business that does not meet profitability targets. IGI discusses the strength of domestic markets worldwide, emphasizing the importance of local expertise in retaining business. Reinsurance lines show healthy margins, with a focus on market share growth. Recent talent additions in property and energy teams reflect ongoing opportunities in these sectors, despite some challenges.

Specialty treaty business expansion, particularly in marine, energy, and cyber, is a key focus for IGI. The company sees steady opportunities in construction, engineering, and marine cargo, alongside growth in contingency and niche segments. Despite rate declines, long-tail segment remains adequate, with potential positive news in 2026-2027.

IGI continues to prioritize building its profile in the US, Europe, MENA, and Asia Pac markets. The company stresses the importance of intelligent risk selection and disciplined portfolio management. With a solid foundation, diverse portfolio, and strong balance sheet, IGI remains well-positioned for success in the market. The company remains focused on generating value long-term through underwriting profitability and quality. They are not considering walking away from any other segments after exiting a particular book of business last quarter. They are exploring opportunities in the professional indemnity market to offset the loss from the book they walked away from.

The reinsurance segment is expected to face more pressure on the top line as the market generates excess capital. However, the company remains confident in their diverse book of business and their focus on underwriting quality over top-line growth. They are adding specialty lines to their portfolio to help counter any market challenges.

The company emphasizes underwriting quality and profitability over top-line growth in the reinsurance market. They believe they have a strong team globally that understands the business and can navigate market challenges. The company has seen healthy returns in reinsurance and remains focused on managing the cycle effectively.

The company continues to prioritize underwriting quality and profitability in the reinsurance market. They have seen success in this area and believe their diverse portfolio and focus on underwriting will continue to drive results. They are confident in their team’s ability to navigate market challenges and generate healthy returns. According to Waleed Jabsheh, large account property in the U.S. is expected to continue decelerating, particularly in risk covers. Despite not being heavily involved in this area, Jabsheh anticipates a sustained appetite for risk covers at 1/1. He also wishes everyone happy holidays and looks forward to the next quarter’s call.

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The Motley Fool disclaimer reminds readers to conduct their own research and not solely rely on their content. The company has positions in and recommends International General Insurance. The article also provides access to the IGI (IGIC) Q3 2025 Earnings Call Transcript for further information.

Read more at Yahoo Finance: IGI (IGIC) Q3 2025 Earnings Call Transcript