International General Insurance Q3 net income falls due to lower energy line premiums

International General Insurance Holdings

Tue 21:35

Overview
Specialty insurer's Q3 core operating EPS slightly beat analyst expectations
Gross written premiums and net income declined yr/yr, impacted by lower energy line premiums
Combined ratio rose to 85.7% from 76.5% on higher loss and expense ratios, including CAT losses

Outlook
Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers
CAT LOSSES - Co said CAT losses related to the war in the Middle East were the primary driver of elevated loss activity during the quarter and first nine months
HIGHER EXPENSES - Net policy acquisition expense ratio increased due to lower realized foreign exchange gains and higher gross commission expenses across all segments
SEGMENT PERFORMANCE - Specialty Short-tail segment saw lower underwriting income due to higher net loss and loss adjustment expenses, while Reinsurance segment underwriting income rose on higher net premiums earned

Company press release: ID:nBw3ZPKkWa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Core Operating EPS
Beat
$0.67
$0.66 (3 Analysts)
Q3 EPS
 
$0.66
 
Q3 Net Income
 
$28.0 mln
 
Q3 Combined Ratio
 
85.70%
 
Q3 Core Operating Income
 
$28.2 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy"
Wall Street's median 12-month price target for International General Insurance Holdings Ltd is $30.00, about 20.7% above its November 2 closing price of $24.85
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Nov 2 - CNA Financial Q3 net income falls, catastrophe losses rise
Nov 2 - Greenlight Capital Re Q3 net income returns to profit as premiums slip
Nov 3 - British insurer Hiscox's nine-month premiums rise on retail demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)