International General Insurance Holdings Ltd’s strong fourth quarter of fiscal 2023 allowed the company to finish the year with record results across a number of metrics.

Net income for the year to December 31 increased 32.5 per cent to $118.2 million (2022: $89.2 million).

The increase was primarily driven by an increase of $34.5 million in underwriting income, and positive movement of $35.8 million in net investment income.

It was partially offset by the negative movement of $31.9 million in the change in fair value of derivative financial liabilities and $11.7 million increase in general and administrative expenses, due to new hires, professional fees and IT-related expenses.

Return on average equity was 24.8 per cent for the full year of 2023 compared with 22.5 per cent for the full year of 2022.

Net income for the fourth quarter increased 46.7 per cent to $33.0 million from $22.5 million for the comparative quarter in 2022.

Return on average equity (annualised) was 26.1 per cent for the fourth quarter of 2023 compared with 22.7 per cent for the fourth quarter of 2022.

IGI CEO Waleed Jabsheh said: “These excellent results culminated in a combined ratio of 76.7 per cent, the lowest full year combined ratio in IGI’s history, and a core operating return on average equity of 28.1 per cent for the full year 2023, demonstrating consistent selective and disciplined underwriting, focusing on those lines with the strongest margins.”

“Market conditions remained positive through the January 1 renewal period, and we are continuing to see healthy opportunities in reinsurance and many short-tail lines. Pricing in our longtail lines remains adequate by and large, although conditions in these lines are becoming more challenging.

“Overall in 2023, we achieved net rate increases of 6.5 per cent across our portfolio, with strong premium growth of 18.3 per cent.”

“While the world around us has become increasingly polarised and our industry increasingly challenged, IGI, as always, remains focused on consistently executing our strategy, growing our company, and being a reliable and trusted partner to our brokers and clients.

“We are committed to our strategic priority of managing the cyclicality and inherent volatility of our business, and focused on maximising shareholder value through active and efficient capital management.”

Net investment income was $50.2 million for the full year of 2023, compared to $14.4 million for the full year of 2022 and included investment income of $40.4 million and $20.9 million for the years ended December 31, 2023 and 2022, respectively, which represented an investment yield of 3.9 per cent on average total investments and cash and cash equivalents for 2023, compared with a 2.4 per cent investment yield in the corresponding period in 2022.

The increase in net investment income was primarily attributable to the growth in interest income, and positive change in net realised and unrealised gain (loss) on investments.

The board of directors has declared an extraordinary cash dividend of $0.50 per common share for the period October 1 to December 31, 2023, in addition to the company’s regular quarterly common share dividend of $0.01 per share.

The extraordinary dividend plus the regular quarterly dividend, totalling $0.51, is payable on April 22, 2024 to shareholders of record at the close of business on April 1, 2024.