International General Insurance (NASDAQ:IGIC) reported second-quarter and first-half 2026 results that reflected sizable war-related losses in the Middle East, while management said underwriting profitability, capital returns and new business growth demonstrated the insurer’s resilience amid softening market conditions.
Executive Chairman Wasef Jabsheh said the company operated against a backdrop of conflict in the Middle East, broader global uncertainty and declining pricing in many insurance lines. He described the war-related losses recorded during the first half as likely among the largest net loss events in IGI’s history.
War losses weigh on earnings and combined ratio
President and CEO Waleed Jabsheh said IGI recorded nearly $14 million of net war losses in the second quarter and roughly $39 million in the first half. The losses included direct and indirect claims, predominantly in the company’s political violence, or PV, portfolio, along with an indirect loss in its energy portfolio previously disclosed in the first quarter.
The physical-damage and business-interruption losses primarily stemmed from exposures in the United Arab Emirates, Saudi Arabia, Bahrain and, to a lesser extent, Oman, he said. IGI does not have exposures in sanctioned countries, according to management.
IGI posted a combined ratio of 95.1% for the second quarter, including 18.8 percentage points of catastrophe losses, 11 points of which were related to the war. Its ex-catastrophe accident-year combined ratio was 74.9%, compared with 76% in the second quarter of 2025.
For the first half, the combined ratio was 92.2%, including 19 points of catastrophe losses and 12 points related to war. The first-half ex-catastrophe accident-year combined ratio was 86.2%, compared with 84.1% a year earlier. Waleed Jabsheh noted that roughly $10 million of additional indirect war losses were not classified in the catastrophe line and represented about 4.5 additional points on the combined and loss ratios.
Second-quarter net income was just under $21 million, or $0.49 per share, down from $34.1 million, or $0.77 per share, a year earlier. First-half net income totaled $42.5 million, or $0.98 per share, compared with $61.4 million, or $1.36 per share, in the prior-year period.
Premium growth aided by India launch
Gross written premiums rose 7.4% year over year to $201.7 million in the second quarter and increased 1.2% to just under $400 million for the first half. Management attributed much of the growth to about $10 million of new business written in India after the company received registration approval in June to establish an office in GIFT City, India’s international financial services center.
IGI said it is establishing and staffing the new branch, which it views as a long-term expansion opportunity. Most of the business written so far is treaty reinsurance, with a focus on niches including cyber and surety.
Net premiums earned increased 8.7% to $125 million in the second quarter and 3.7% to $236.2 million in the first half. Underwriting income was $29.5 million for the quarter and just over $67 million for the first half, with the first-half figure up about 6.7% from the comparable 2025 period.
In the long-tail segment, second-quarter net earned premiums rose more than 33%, and underwriting income improved to $5.5 million from an underwriting loss of just under $3 million a year earlier. First-half underwriting income in that segment increased to just under $23 million from an underwriting loss of just over $10 million in 2025.
Management said it recorded $1.7 million of reserve strengthening in the second quarter, or about 1.5 points on the combined ratio, related to specific long-tail accounts. Waleed Jabsheh said the action reflected a more cautious view based on additional data and experience, rather than a systemic issue. Across all segments, IGI released more than $30 million of prior-year reserves during the first half.
Capital returns and investment portfolio
Book value per share was $16.04 at the end of the second quarter. IGI returned approximately $73 million to shareholders in the first half, including nearly $55 million in dividends—incorporating a $1.15 special dividend declared in March—and $18.2 million in share repurchases.
During the quarter, the company repurchased a little more than 205,000 common shares at an average price of $24.82. It had 3.9 million shares remaining under its existing 5 million-share repurchase authorization at quarter-end.
Total assets were just under $2.2 billion, while total investments and cash were just under $1.3 billion. Fixed-income securities represented about 78% of the investments and cash portfolio, generating $14.5 million of investment income in the quarter and $28.6 million in the first half. The fixed-income portfolio had a 4.5% yield at the end of the second quarter and a duration of 3.5 years.
Market outlook: selective growth amid competitive pressure
Management said insurance pricing remains mixed, with competitive pressure increasing in reinsurance, energy and certain property lines. Waleed Jabsheh said some conditions had become “quite irrational” in portions of the energy and property markets, though he expressed cautious optimism that losses in downstream energy could help stabilize pricing.
In the Middle East, IGI has reduced PV line sizes and war exposures following the conflict, while also writing new business at improved pricing and terms. Management said it has grown its PV book by about 45%, with most of that increase attributable to higher pricing, as well as new business.
During the question-and-answer session, Waleed Jabsheh said the market response to war-exposed business had been strong but uneven. He said premium increases in some cases reached “thousands of percent,” though certain market participants eased underwriting requirements after a ceasefire announcement. He added that IGI had not seen another significant wave of losses since the severe activity in March and April, while cautioning that conditions could deteriorate.
The company also cited opportunities in specialty treaty reinsurance, marine liability, cargo war, construction engineering and contingency insurance. Management said it remains focused on technical underwriting, diversified risk exposures, cycle management and capital allocation as it navigates a more competitive market environment.
About International General Insurance (NASDAQ:IGIC)
International General Insurance (NASDAQ:IGIC) is a global specialty insurer and reinsurer focused on underwriting a diverse portfolio of property and casualty risks. Headquartered in Pembroke, Bermuda, the company provides tailored risk solutions across a broad range of industry sectors. IGIC operates within the excess and surplus lines market, leveraging specialized expertise to cover complex and hard-to-place risks that fall outside the scope of standard commercial insurance.
Founded in 1988, IGIC has grown its product offering to include marine, energy, aviation, construction, professional liability and credit & surety lines.
