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

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:

Key Details

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.)