HAMILTON, Bermuda - International General Insurance Holdings Ltd. (NASDAQ: IGIC) announced a stronger-than-expected performance in the fourth quarter, surpassing analyst earnings estimates.
Following the earnings release, IGI's stock saw a modest uptick of 0.79%.
The company reported an adjusted EPS of $0.65, which was $0.03 higher than the consensus estimate of $0.62. Despite this earnings beat, revenue fell short of expectations, with the quarter's revenue reaching $164.9 million against the anticipated $188.8 million.
The company's financial results reflect a robust end to the year, with net income for the quarter increasing 46.7% to $33.0 million from the $22.5 million reported in the same period last year. This improvement was primarily driven by an $18.8 million rise in underwriting income and a $6.4 million boost in net investment income. The company's annualized return on average equity also climbed to 26.1% for the fourth quarter, up from 22.7% in the previous year.
IGI's underwriting income for the fourth quarter grew significantly by 76.1% to $43.5 million, compared to $24.7 million in the fourth quarter of 2022. This was mainly due to higher net premiums earned as a result of overall portfolio growth. The company's combined ratio, a key measure of underwriting profitability, improved to 81.8% from 92.1% year-on-year.
CEO Mr. Waleed Jabsheh commented on the results, highlighting the company's record metrics, including the lowest full-year combined ratio in IGI's history and a core operating return on average equity of 28.1% for the full year. He also noted the company's disciplined underwriting approach and the ability to navigate challenging market conditions.
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