International General Insurance's Q2 net income rises 3.9%

Overview

• IGI Q2 net income rises 3.9% yr/yr to $34.1 mln

• Core operating income for Q2 misses analyst expectations, impacted by currency movements

• Gross written premiums for Q2 fall 8.6% yr/yr, reflecting competitive market conditions

Outlook

• Company notes increasing competition in certain market areas

• IGI highlights impact of U.S. Dollar weakening on results

• Company emphasizes diversification strategy to manage market cyclicality

Result Drivers

• CURRENCY IMPACT - Currency revaluation of non-U.S. Dollar loss reserves negatively impacted underwriting results

• COMPETITIVE MARKET - Gross written premiums fell due to increased competition in insurance and reinsurance markets

• CAT LOSSES - Catastrophe losses contributed to higher loss ratios, affecting underwriting income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "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 $32.00, about 26.7% above its August 4 closing price of $23.47

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBw334jTja