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IGI’s Q3 operating income more than doubles

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IGI has reported third-quarter core operating income of $15.4mn, a 140.6% increase year on year, as net earned premiums grew and claims and expenses fell.

Combined ratio: IGI’s combined ratio improved by 8.7 percentage points to 85%. IGI said it benefited from increasing net premiums and favorable development of loss reserves from prior accident years during the quarter.

Investments: Net investment income increased by 33.3% to $4mn for Q3 this year. This represented an annualized investment yield of 1.9% for the quarter, compared with a 1.7% annualized return for the same period last year. The increase reflects slightly higher yields on IGI’s fixed income bond portfolio.

Top line: Gross written premium (GWP) increased by 13.9% to $115.3mn for Q3.

In the long-tail segment, GWP increased by 1.7% to $55.3mn for the third quarter, as the net underwriting result for the segment more than doubled to $17.1mn due to higher net earned premiums and lower claims and expenses year on year.

In the short-tail segment, GWP increased by 30.6% to $54.6mn for the third quarter, as IGI expanded in all short-tail lines except aviation. The net underwriting result for short-tail during Q3 was $8.8mn, a 4.7% increase year on year, as the increase in net premiums earned was partially offset by an increase in net claims and expenses, as well as in net policy acquisition expenses.

In the reinsurance segment, GWP was $5.4mn, an 8% increase from the third quarter of 2020. The net underwriting result for this segment fell by 46.7% to $0.8mn as claims and expenses rose compared with the prior-year quarter.

IGI chairman and CEO Wasef Jabsheh said: “Through the first nine months of 2021, we have performed well on all key measures, most notably growing our book value per share by 3.6%.

“Attractive market conditions are holding up, with further rate increases across our portfolio in excess of 13%, though I would note we are now seeing some easing in upwards rate momentum, and we expect this to continue as we approach the January 2022 renewal period.

“Having said that, we are seeing attractive opportunities across our markets, particularly in Europe following the launch of our European subsidiary in Malta in July.”

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