International General Insurance (NASDAQ:IGIC) reported third-quarter net income of $28 million, or $0.66 per share, as the insurer navigated softer market conditions and elevated catastrophe losses tied largely to the war in the Middle East.
Net income declined from $33.5 million, or $0.75 per share, in the prior-year quarter. For the first nine months of 2026, net income was $70.5 million, or $1.65 per share, compared with $94.9 million, or $2.14 per share, a year earlier.
Executive Chairman Wasef Jabsheh said the company generated returns on average shareholders’ equity of 16.9% in the third quarter and 13.8% for the first nine months. He also said IGI returned nearly $80 million to shareholders through dividends and share repurchases during the period.
Premium Trends and Underwriting Results
Gross written premium was just under $120 million in the third quarter, down 8.9% from the prior-year period. For the first nine months, gross written premium was just under $520 million, a 1.4% decline. President and CEO Waleed Jabsheh said the reduction reflected the company’s underwriting discipline as conditions became more challenging, rather than a concern about the top-line performance.
Net premiums earned increased 8.5% year over year in the third quarter to just under $125 million, while nine-month net premiums earned rose 5.3% to $360 million. Underwriting income totaled $43 million in the quarter and $110 million for the first nine months.
The third-quarter combined ratio was 85.7%, including 6.9 percentage points of catastrophe losses, of which 2.6 points were related to the Middle East war. The ratio also benefited from 7.1 points of favorable prior-year reserve development. For the first nine months, the combined ratio was 90.1%, including 14.8 points of catastrophe losses, primarily associated with the Middle East conflict, and nearly 11 points of favorable reserve development.
Jabsheh said the third-quarter policy acquisition expense ratio increased to 19.4% from 15.9% a year earlier, partly because prior-year results included higher realized foreign-exchange gains and because gross commission expenses increased across segments. On an FX-neutral basis, the prior-year third-quarter ratio would have been 18.4%, he said.
- Short-tail underwriting income was $20.3 million in the third quarter and more than $45 million in the first nine months, with results affected by elevated war-related losses.
- Reinsurance underwriting income increased more than 22% year over year to $12.7 million in the third quarter. Nine-month premiums were lower following the non-renewal of two sizable programs in the first quarter.
- Long-tail underwriting income totaled about $10 million in the third quarter and nearly $33 million for the first nine months, compared with approximately $1 million in the prior-year nine-month period. The 2025 result was negatively affected by foreign-exchange movements, management said.
Capital, Investments and Share Repurchases
Total assets stood at $2.11 billion at the end of the third quarter, while total investments and cash were $1.28 billion. Fixed-income securities represented 78% of investments and cash and generated $14.2 million of investment income during the quarter and $42.8 million during the first nine months. The fixed-income portfolio yield was 4.4% at quarter-end, and its duration increased to 3.7 years from 3.5 years at the end of the previous quarter.
IGI repurchased more than 148,000 common shares during the third quarter at an average price of $24.68 per share. Year to date, it repurchased just under 900,000 shares at an average price of $24.37. The company had 3.8 million shares remaining under its existing authorization at the end of the quarter.
Total equity was slightly above $663 million, down from $710 million at the end of 2025. Management said equity reflected nearly $80 million of shareholder capital returns, including about $58 million in dividends and approximately $22 million in repurchases. Equity was also affected by negative mark-to-market movements on the bond portfolio totaling about $44 million during the first nine months. Book value per share was $15.99, down 5.4% from year-end.
Market Conditions and Growth Initiatives
Management said pricing pressure was most pronounced in commercial property and energy, with commercial property rates declining by roughly 15% across the board. Jabsheh said international property pricing was holding up better than U.S. pricing, while energy rates were falling despite loss activity across downstream, power, renewable and upstream business.
IGI cited opportunities in political violence, marine cargo, construction and engineering, contingency, professional indemnity and marine liability. The company has increased its political violence portfolio by about 50% from a modest base following the Middle East war, while reducing gross line sizes to limit war exposure. It has also tripled its direct marine liability book this year, according to Jabsheh, citing improved demand and pricing following the Baltimore Bridge loss.
In treaty reinsurance, management said margins remain relatively healthy but competitive pressure is increasing, particularly in property. The company is focusing on specialty treaty lines including marine, energy, political violence, terrorism and cyber.
IGI also highlighted two expansion initiatives. Its Cipher Underwriting platform, a Bermuda-based specialty treaty managing general agency focused on cyber reinsurance, has secured regulatory approvals and begun operations. IGI owns 60% of Cipher and will initially serve as its sole carrier, while Cipher will be the company’s sole underwriter in those lines, Jabsheh said.
The company’s new India platform in GIFT City is expected to have most of its team in place by November and be fully staffed by the end of January. Management said the platform will pursue opportunities in India and the broader subcontinent, including cyber, surety, liability, construction and engineering, marine cargo, political violence and professional lines.
During the question-and-answer session, Jabsheh said the company does not expect material fourth-quarter losses from recent European civil unrest because its European political violence portfolio is predominantly focused on pure terrorism coverage. He also said the company’s underwriting decisions are fully separated from investment-income considerations.
About International General Insurance (NASDAQ:IGIC)
International General Insurance Holdings Ltd. (NASDAQ: IGIC) is a specialty insurance and reinsurance company that underwrites risks for commercial clients, brokers and other insurers. The company focuses on complex and specialized lines of business rather than broad consumer insurance products.
Its offerings include energy, property, engineering, marine, aviation, casualty, political violence and other specialty insurance products, along with treaty and facultative reinsurance. Coverage is designed for businesses and industries that may require tailored underwriting and risk-management solutions.
International General Insurance was established in 2001 and serves clients and insurance partners across international markets through underwriting operations in locations including Bermuda, London and Jordan.
