International General Insurance's Q2 2025: Navigating Key Contradictions in Retention, Portfolio Management, and Market Strategy

Net to gross retention strategy, professional indemnity portfolio management, market conditions and strategic focus, short-tail business performance and competitive landscape, reserve release approach and expectations are the key contradictions discussed in International General Insurance Holdings Ltd.'s latest 2025Q2 earnings call.



Strong Financial Performance:
- International General Insurance Holdings Ltd. (IGI) generated net income of $34.1 million for Q2 and $61.4 million for the first half of 2025.
- The results are attributed to the company's ability to manage through geopolitical and macroeconomic uncertainties and maintain discipline in capital management.

Impact of Currency Fluctuations:
- The combined ratio for Q2 was 90.5% and 92.4% for the first half, negatively impacted by 21 points and 15 points, respectively, due to foreign currency movements.
- The revaluation of non-U.S. dollar loss reserves, particularly in the long-tail segment transacted in sterling, affected underwriting results.

Portfolio Management and Strategic Decisions:
- IGI's long-tail segment has been challenging, with a decline in rates and lower margins, leading to a 5% drop in gross premiums for the first half.
- The company is contracting this portfolio and reviewing underperforming areas, such as the professional indemnity portfolio, to improve profitability.

Increased Reinsurance Focus:
- The reinsurance segment showed strong growth in Q1, with 33% increase in gross premiums for the first half, driven by marine, energy, and property lines.
- IGI shifted focus to higher-margin reinsurance business, resulting in 60% increase in underwriting income in the second quarter.

Shareholder Returns and Capital Management:
- IGI grew book value per share by 3.4% to $15.36 in the first half and returned $77 million to shareholders through dividends and share repurchases.
- The company's proactive capital management and disciplined approach to investing in high-quality opportunities are contributing to strong shareholder returns.