International General Insurance's Q4 2024: Conflicting Signals on Growth Strategies, Reinsurance, and Market Dynamics

These are the key contradictions discussed in International General Insurance's latest 2024Q4 earnings call, specifically including: Growth Strategy and Market Conditions, Reinsurance Strategy and Market Conditions, Market Conditions and Rate Environment, and Growth Strategy:



Financial Performance and Growth:
- International General Insurance Holdings Ltd. (IGI) reported a combined ratio of 77.8% for Q4 and 79.9% for the full year 2024, with a core operating return on equity of 25% for Q4 and 24.2% for the full year.
- The company achieved a book value per share growth of almost 20% for the year, including dividends.
- These results were driven by disciplined underwriting, efficient capital management, and continued strong performance in key financial metrics.

Market Conditions and Growth Strategy:
- IGI confronted increased competitive pressures, leading to more disciplined risk selection and a focus on bottom-line profitability.
- The company noted challenges in the Long-tail segment due to rate pressures and took a cautious view of this area.
- Growth opportunities were identified in areas like Short-tail and Reinsurance segments, where respective premiums increased by 6% and 36% for Q4 and the year.
- IGI's strategy emphasized market intelligence, focusing on territories with emerging trends and strong rate momentum.

Capital Management and Shareholder Returns:
- Total assets increased by 11% to over $2 billion, with the investments and cash portfolio growing by more than 14% during the year.
- IGI repurchased over 220,000 common shares in Q4, reaching 1.5 million for the full year, with $2.3 million shares remaining under authorization.
- The company's capital management strategy included returning $116.3 million to shareholders through dividends and share repurchases since going public.

Expansion into U.S. and Europe:
- IGI expanded its presence in the U.S., reaching $120 million in gross premiums, and in Europe, writing almost $90 million across all segments.
- Growth in these regions was achieved through strategic office expansions, enhanced marketing activities, and new product offerings.
- The company's focus on relationships and strategic expansion contributed to market penetration and growth opportunities.