Bermudian-domiciled International General Insurance Holdings Ltd has reported higher profits for the first nine months, even though third-quarter net income fell 51.8 per cent year-over-year to $10.9 million from $22.6 million in the prior-year quarter.

The specialist commercial insurer and reinsurer said the decrease was driven primarily by the negative movement of $17.2 million in the change in fair value of derivative financial liabilities relating to warrants and earn-out shares, and to a lesser extent higher net loss and loss adjustment expenses and general and administrative expenses.

It added that this was offset partially by the increase of $12.5 million in net premiums earned and the positive movement of $3.4 million in net investment income.

Return on average equity (annualised) was 9.3 per cent for the quarter compared with 23.9 per cent for the prior-year quarter.

Net income for the nine months ended September 30 increased 27.5 per cent to $85.2 million from $66.8 million for the prior-year period, the company said.

Return on average equity (annualised) was 25.8 per cent for the first nine months of 2023 compared with 23.3 per cent in the prior-year period.

IGI chief executive Waleed Jabsheh said: “IGI’s excellent third-quarter and nine-month results — reflected in a combined ratio of 73.2 per cent and a core operating return on average equity of 31 per cent — demonstrate our continued discipline and ability to shift focus to those lines with the strongest margins.”

He added: “While market conditions remain healthy in many lines and increasingly pressured in others, we achieved overall net rate increases of more than 7 per cent across our portfolio, recording healthy premium growth of 25.1 per cent during the third quarter and 22.6 per cent for the first nine months of 2023.

“As we look ahead to 2024, we expect to build on the momentum and profitable growth trajectory of the last several quarters, enabling us to continue to deliver on our value proposition to all our stakeholders.”