International General Insurance Holdings Ltd. (IGI) reported an increase in underwriting income for the first quarter of 2026, even as overall net income declined compared with the same period last year.

The Bermuda-based specialty insurer and reinsurer posted underwriting income of US$37.7 million for the quarter ended March 31, 2026, up 35.2% from US$27.9m in Q1 2025. The combined ratio improved to 89.1% from 94.4% over the same period, reflecting lower net loss and loss adjustment expenses.

Net income, however, declined to US$21.7m from US$27.3m a year earlier. The company attributed the drop in part to a net foreign exchange loss of US$2.4m in Q1 2026, compared with a gain of US$7.2m in the same quarter of 2025, driven by negative currency movements in sterling and the euro against the US dollar.

Gross written premiums fell to US$197.2m from US$206.5m, a decline the company linked primarily to the non-renewal of two sizeable reinsurance programmes, as well as softer market conditions. The reinsurance segment recorded the steepest drop, with gross written premiums falling to US$55.6m from US$70.0m.

Catastrophe losses of US$21.3m were recorded in the quarter, primarily tied to war and ongoing conflict in the Middle East, and were reflected in the specialty short-tail segment. These losses contributed 19.2 percentage points to the loss ratio, compared with 25.0 points a year earlier.

Core operating income, a non-GAAP measure, rose to US$24.4m from US$19.5m, with core operating return on average equity climbing to 14.3% from 12.0% in the prior-year period.

Total shareholders’ equity decreased to US$653.6m on 31 March 2026 from US$710.2m on December 31, 2025, partly reflecting US$51.5m in cash dividends declared and US$13.1m in share repurchases during the quarter. Book value per share stood at US$15.60, down from US$16.91 at year-end 2025.

Company reaction

IGI group president and chief executive Waleed Jabsheh (pictured) said the results reflected “consistent and disciplined execution”. He added: “We continue to actively manage our capital, prioritising profitable growth in underwriting first, and then returning excess capital to our shareholders. In the first three months of 2026, we returned almost US$65 million to shareholders through share repurchases and dividends, including an extraordinary dividend of US$1.15 per share.”

The Q1 2026 results follow what executives described as a strong full-year 2025. During the company’s fourth-quarter earnings call, IGI executives highlighted what they described as an “outstanding” year in 2025, marked by strong underwriting and investment performance, book value growth, and continued capital returns to shareholders.