International General Insurance Holdings (IGIC) Q2 FY26 earnings call: the analyst Q&A

Earnings call· Jun 2026 (Q2 FY26)· Aug 5, 2026

Source: earnings call transcript

Executive summary

International General Insurance Holdings Ltd. Q2 FY26 — Resilient Performance Amidst War Losses and Softening Market

International General Insurance Holdings Ltd. demonstrated strong resilience in Q2 FY26, delivering healthy underwriting results and significant capital returns despite substantial war-related losses in the Middle East and a softening market. The company's diversified portfolio and disciplined underwriting allowed it to absorb significant shock losses while expanding into new markets like India and adjusting exposures in volatile regions. Management emphasized a focus on technical underwriting and active cycle management to navigate current market dynamics.

Highlights

Underwriting income was $29.5 million for Q2 and $67 million for H1, representing a 6.7% increase over H1 2025.
Combined ratio of 92.2% for the first half, demonstrating strong underlying performance despite significant losses.
Net income reached $42.5 million for the first half of the year.
Total capital returned to shareholders exceeded $72 million in H1, comprising $55 million in dividends and $18.2 million in share repurchases.
New Indian business contributed $10 million in Gross Written Premiums (GWP) following registration approval in June.

Concerns

Net war losses totaled almost $14 million in Q2 and roughly $39 million for H1, marking potentially the largest net loss event in IGI's history.
Combined ratio for Q2 was 95.1%, impacted by 18.8 points of CAT losses, with 11 points directly related to the war.
Market conditions are softening, with pricing continuing to decline rapidly in many lines.
Unfavorable prior year reserve development of 1.4 points on the combined ratio in Q2, primarily related to specific long-tail accounts.

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Short-Tail Conditions remain mixed with increases and decreases in different areas. Underwriting income was substantially down year-over-year due to elevated loss activity, much related to the war, but still healthy. Gross Written Premiums (Q2): up 7%Gross Written Premiums (H1): up 2%Net Premiums Earned (Q2): down 3%Net Premiums Earned (H1): up 4%Underwriting Income (H1): $25 million	—	—	—	$16 million
Reinsurance Conditions are increasingly competitive, and underwriting income was impacted by higher losses. The decline in H1 GWP and net earned premiums was primarily due to the non-renewal of two large programs in Q1. Gross Written Premiums (Q2): up (largely due to new Indian business)Net Premiums Written (Q2): up 6% to $25 millionGross Written Premiums (H1): down (due to non-renewal of two sizable programs)Net Earned Premiums (H1): down (due to non-renewal of two sizable programs)	—	—	—	—
Long-Tail Driven by new business in most lines, particularly marine liability. Underwriting income for Q2 improved significantly from a loss in the prior year. The company remains cautiously optimistic about market conditions stabilizing in this segment. Gross Written Premiums (Q2): steadyNet Earned Premiums (Q2): up 33%Gross Written Premiums (H1): up 6.6%Net Earned Premiums (H1): up 17.4%Underwriting Income (H1): $23 million	—	—	—	$5.5 million

Product announcements

Product	Type	Timeline	Details
GIFT City Branch Office	expansion	June 2026 (registration approval)

Risks & headwinds

War and conflict in the Middle East Q2 and H1 FY26

Net war losses of almost $14 million in Q2 and roughly $39 million for H1; 12 points on H1 combined ratio.

Mitigation:Used insights to further reduce PV line sizes and exposures; taking advantage of price correction to write new business at significantly improved pricing.

Softening market environment and declining pricing Ongoing

Pricing continued to decline in many lines; competitive pressures increased in energy and property to the point of being quite irrational in some cases.

Mitigation:Focus on risk-adjusted returns, active cycle management, and diversified portfolio; being selective in what to write; cautiously optimistic for stabilization in energy book following sizable losses.

Project delays and cancellations in the Middle East Ongoing

Instances where construction engineering projects are either being delayed or canceled altogether.

Mitigation:Leveraging diversification, experience, and relationships to capitalize on other opportunities, such as contingency.

Unfavorable prior year reserve development Q2 FY26

$1.7 million or about 1.5 points in the combined ratio in Q2.

Mitigation:Specific to long-tail portfolio, reflecting a more prudent view of early years of this business; overall, released more than $30 million of prior year reserves across all segments in H1.

What to watch in Q3 FY26

Middle East PV pricing adequacy

next quarter

Current Significant pricing improvement, some in thousands of percent

Target Improved pricing and policy structures hold

Why it matters

Ensuring sustained pricing discipline in the Middle East PV book is crucial for profitability given the ongoing conflict and volatility.

So, we're optimistic that the improved pricing and the policy structures will hold.

Find out whether IGIC delivers this. Inve re-checks your case every morning.

Q&A highlights

Has the market responded appropriately to the Middle East conflict, or have global competitive pressures limited the pricing response?

The market reaction to the war has been positive for exposed lines like PV, with some rate increases in the thousands of percent. However, the response has not been consistently adequate, especially after ceasefire announcements. IGI maintains its disciplined underwriting approach regardless of competitors, noting the conflict has not impacted other lines like property or construction.

“Has the reaction been positive? Definitely. Has it been enough? In some cases, yes, in some cases, no. But we will stick to our guns, and we will continue to underwrite the book and manage the exposures in the best way we see fit for us regardless of what the others do.”

asked by Rowland Mayor · answered by Waleed Jabsheh

2 min read 6 chapters

Detailed narrative

Middle East War Impact and Resilience

IGI reported significant war-related losses in the Middle East, totaling almost $14 million in Q2 and approximately $39 million for the first half of 2026. These losses, predominantly in the PV book and affecting exposures in the UAE, Saudi Arabia, Bahrain, and Oman, represent what is likely the largest net loss event in IGI's history. Despite this, the company maintained a healthy combined ratio of 92.2% for H1 and recorded $42.5 million in net income, demonstrating the resilience of its underwriting model and balance sheet.

Market Conditions and Strategic Response

The market environment is characterized by softening conditions and declining pricing across many lines, with competitive pressures increasing, particularly in energy and property. IGI's strategy emphasizes risk-adjusted returns, active cycle management, and portfolio diversification to navigate this volatility. The company has used insights from recent events to reduce PV line sizes and exposures while capitalizing on improved pricing in the Middle East to grow its PV book by 45% in Q2.

Expansion into the Indian Market

IGI achieved a meaningful milestone by securing registration approval in June to establish a branch office in GIFT City, India's first international financial services center. This expansion strengthens IGI's global footprint and diversification strategy. The company has already written approximately $10 million in Gross Written Premiums from new Indian business, primarily in treaty reinsurance, focusing on niche areas like cyber and surety.

Segment Performance Overview

The short-tail segment experienced mixed conditions, with GWP up 7% in Q2 but underwriting income down due to elevated loss activity. The reinsurance segment faces increasing competition, with GWP up in Q2 due to new Indian business, but H1 GWP and net earned premiums were down due to non-renewals. The long-tail segment showed improved performance, with net earned premiums up 33% in Q2 and underwriting income reaching $5.5 million, driven by new business and modest adjustments to reserving philosophy.

Capital Management and Shareholder Returns

IGI returned over $72 million in capital to shareholders during the first half of 2026. This included almost $55 million in dividends, notably a special dividend of $1.15 per share declared in March, and $18.2 million in share repurchases. The company repurchased 205,000 common shares in Q2 at an average price of $24.82, with 3.9 million shares remaining under its existing $5 million authorization.

Investment Portfolio Performance

The investment portfolio, with total investments and cash just under $1.3 billion at the end of Q2, generated $14.5 million in investment income for Q2 and $28.6 million for H1. The portfolio, 78% allocated to fixed income securities, achieved a yield of 4.5% at the end of Q2, with duration held steady at 3.5 years. This performance contributes to overall returns without being relied upon to support underwriting in a softening cycle.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.