International General Insurance Holdings Limited Announces Full Year 2017 Results
International General Insurance Holdings Limited today reported earnings for the 2017 financial year.
The Group announced a 19% increase in gross written premiums (GWP) from US$231.43 million as of 31st December 2016 to US$275.34 million for the same period in 2017, demonstrating growth in GWP in all of IGI's major lines of business. This growth came as a result of writing more business in existing lines and an expansion in IGI's casualty and energy classes.
The year 2017 was the most expensive for catastrophe losses on record. However, prudent portfolio management helped mitigate the severity of IGI's losses at a net level.
Meanwhile, the Group posted a net profit of US$7.9 million in 2017 compared to US$32.1 million the year before. The Group's combined ratio stood at 103% at the end of 2017, compared to 87.5% in 2016.
Investment income rose by 28% to US$14.6 million, compared to US$11.4 million in 2016.
Overall, the Group reported growth in total assets of 9% to US$888.79 million as at the end of 2017 from US$818.46 million in 2016. Despite the losses, shareholders' equity slightly increased at year end.
Mr. Wasef Jabsheh, Vice Chairman and Chief Executive Officer of IGI, said: "IGI's full year results were announced against the backdrop of a very difficult year, which saw a competitive trading environment continue to keep pressure on rates, followed by catastrophe losses in the third quarter. Despite this, we stuck to our strategy of strict underwriting discipline and focused on maintaining a healthy and diversified portfolio."
"Meanwhile, our growth in GWP in all of IGI's major lines of business proves the strength of the Group's market expertise, and demonstrates our commitment to a strategy of disciplined profitable growth."
"Last year's historical catastrophes have undoubtedly had their impact on the market. We must however remember that the fundamental role of the reinsurance industry is to be there as supportive partners to our clients in times of need. This is of utmost importance to IGI and we take pride in our strong track record reflecting a prompt and efficient claims service."
"We view the coming year with optimism. Last year's losses will likely improve market conditions over the coming months and drive sustainable premium growth in the near future. IGI is poised to benefit from the enhanced environment and will continue its focused profitable growth strategy."
Highlights of the 2017 financial year along with those of the previous year are as follows:
$ in million
Gross written premium 275.34 231.43
Net underwriting result 25.07
Investment income 14.63 11.43
Profit for the year 7.86 32.07
Loss ratio, net 60.40%
Combined ratio 103.09%
Return on equity 2.52% 10.3%
Net Underwriting result to GWP 9.11% 21.9%
The Board of Directors decided not to distribute a second dividend for the year. This brings the total dividend for 2017 to US$5,735,027.