Q2 FY2026
Filed Aug 4, 2026IGI Reports Second Quarter and First Six Months of 2026 Unaudited Financial Results and Declares Ordinary Common Share Dividend
Gross written premiums increased by 7.4% to $201.7 million and all segments remained underwriting-profitable, but second-quarter net income declined to $20.9 million from $34.1 million as Middle East war-related CAT losses raised the combined ratio to 95.1% from 90.5% and foreign exchange moved to a $1.0 million loss from a $10.1 million gain.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q2 2026 gross written premiumsother | $ 201.7 | – | 7.4% |
| Q2 2026 ceded written premiumsother | $ (57.1 ) | – | – |
| Q2 2026 net written premiumsother | $ 144.6 | – | – |
| Q2 2026 net premiums earnedother | $ 125.0 | – | – |
| Q2 2026 total revenuesother | $ 143.5 | – | – |
| Q2 2026 underwriting incomeother | $ 29.5 | – | – |
| Q2 2026 investment incomeother | $ 14.5 | – | 4.3% |
| Q2 2026 net investment incomeother | $ 17.5 | – | – |
| Q2 2026 net foreign exchange lossother | $ (1.0 ) | – | – |
| Q2 2026 income before income taxesother | $ 21.0 | – | – |
| Q2 2026 income tax expenseother | $ (0.1 ) | – | – |
| Q2 2026 net incomeGAAP | $ 20.9 million | – | – |
| Q2 2026 diluted earnings per share attributable to equity holdersGAAP | $ 0.49 | – | – |
| Q2 2026 loss ratioother | 57.9 % | – | – |
| Q2 2026 expense ratioother | 37.2 % | – | – |
| Q2 2026 combined rationon-GAAP | 95.1 % | – | – |
| Q2 2026 CAT lossesnon-GAAP | 18.8% | – | – |
| Q2 2026 accident year combined ratio prior to CAT lossesnon-GAAP | 74.9 % | – | – |
| Q2 2026 investment yield (annualized)other | 4.6 % | – | – |
| Q2 2026 return on average equity (annualized)non-GAAP | 12.6 % | – | – |
| Q2 2026 core operating incomenon-GAAP | $ 18.7 million | – | – |
| Q2 2026 diluted core operating earnings per sharenon-GAAP | $ 0.44 | – | – |
| Q2 2026 core operating return on average equity (annualized)non-GAAP | 11.3 % | – | – |
| First six months 2026 gross written premiumsother | $ 398.9 | – | – |
| First six months 2026 net premiums earnedother | $ 236.2 | – | – |
| First six months 2026 total revenuesother | $ 269.2 | – | – |
| First six months 2026 underwriting incomeother | $ 67.2 | – | – |
| First six months 2026 net investment incomeother | $ 31.0 | – | – |
| First six months 2026 net incomeGAAP | $ 42.5 million | – | – |
| First six months 2026 diluted earnings per share attributable to equity holdersGAAP | $ 0.98 | – | – |
| First six months 2026 combined rationon-GAAP | 92.2 % | – | – |
| First six months 2026 core operating incomenon-GAAP | $ 43.1 million | – | – |
| First six months 2026 diluted core operating earnings per sharenon-GAAP | $ 1.00 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Specialty Long-tail SegmentNet premiums earned were $41.2 million compared to $30.8 million for the same quarter of 2025, and underwriting income was $5.5 million compared to an underwriting loss of $2.9 million, largely the result of a higher level of net premiums earned. | $42.7 million gross written premiums for the second quarter of 2026 | – | – |
| Specialty Short-tail SegmentUnderwriting income was $16.0 million compared to $25.6 million, with the decrease largely the result of the war in the Middle East driving a higher level of net loss and loss adjustment expenses. | $134.3 million gross written premiums for the second quarter of 2026 | – | – |
| Reinsurance SegmentThe increase reflected new business written in India following registration approval received to operate in GIFT City, India during the second quarter of 2026. Underwriting income decreased to $8.0 million from $12.3 million primarily due to higher net loss and loss adjustment expenses. | $24.7 million gross written premiums for the second quarter of 2026 | – | – |
Capital returns
- In the second quarter of 2026, the Company repurchased 205,160 common shares at an average price per share of $24.82.
- For the first six months of 2026, the Company repurchased 750,534 common shares at an average price per share of $24.30.
- At June 30, 2026, the Company had 3.9 million common shares remaining under its existing 5 million common share repurchase authorization.
- Purchase of treasury shares was $ (5.1 ) for the quarter ended June 30, 2026 and $ (18.2 ) for the six months ended June 30, 2026.
- Cash dividends declared were $ (3.2 ) for the quarter ended June 30, 2026 and $ (54.7 ) for the six months ended June 30, 2026.
- On August 3, 2026, the Board declared an ordinary common share dividend of $0.075 per share for the quarter ended June 30, 2026, payable on September 2, 2026 to shareholders of record at the close of business on August 18, 2026.
What drove it
- Quarterly gross written premium growth was due to increases in both the Short-tail and Reinsurance Segments.
- CAT losses related to the war in the Middle East were the primary driver of elevated loss activity during the second quarter and first six months of 2026.
- The first half also included the impact of a large non-CAT energy loss recognized during the first quarter, which had no material movement in the second quarter.
- Second-quarter net investment income included higher positive mark-to-market movement in the equity portfolio compared to the second quarter of 2025.
- Net foreign exchange losses were primarily driven by negative currency movements in major transactional currencies, mainly the Pound Sterling and the Euro, against the U.S. Dollar.
Concerns
- The second-quarter loss ratio was 57.9%, including CAT losses of 18.8%, compared to 53.2%, including CAT losses of 9.0%, in the second quarter of 2025.
- Second-quarter combined ratio increased to 95.1% from 90.5%.
- Specialty Short-tail underwriting income declined to $16.0 million from $25.6 million because of higher net loss and loss adjustment expenses associated with the war in the Middle East.
- Reinsurance underwriting income declined to $8.0 million from $12.3 million primarily due to higher net loss and loss adjustment expenses.
- First-half Reinsurance gross written premiums declined to $80.3 million from $86.3 million, primarily due to the non-renewal of two reinsurance programmes in the first quarter of 2026.
- First-half net foreign exchange loss was $3.4 million compared to a gain of $17.3 million in the corresponding period of 2025.
What to watch
- CAT losses related to the war and ongoing conflict in the Middle East, which were recorded in the Specialty Short-tail Segment.
- The development of the large non-CAT energy loss recognized during the first quarter of 2026.
- Premium generation from new business in India following GIFT City registration approval received during the second quarter of 2026.
- The effect of the non-renewal of two reinsurance programmes on Reinsurance Segment premiums and underwriting income.
- Further foreign exchange movements in the Pound Sterling and the Euro against the U.S. Dollar.
- Use of the remaining 3.9 million common shares under the existing repurchase authorization.
Balance sheet and cash flow
- Total shareholders’ equity was $669.0 million at June 30, 2026, compared to $710.2 million at December 31, 2025.
- Book value per share was $16.04 at June 30, 2026 compared to $16.91 at December 31, 2025.
- Total investments were $ 1,091.7 at June 30, 2026, compared to $ 1,134.5 at December 31, 2025.
- Cash and cash equivalents were $ 197.2 at June 30, 2026, compared to $ 186.2 at December 31, 2025.
- Total assets were $ 2,176.9 at June 30, 2026, compared to $ 2,100.8 at December 31, 2025.
- Reserve for unpaid loss and loss adjustment expenses was $ 842.9 at June 30, 2026, compared to $ 798.3 at December 31, 2025.
- Unearned premiums were $ 533.9 at June 30, 2026, compared to $ 469.9 at December 31, 2025.
- Total liabilities were $ 1,507.9 at June 30, 2026, compared to $ 1,390.6 at December 31, 2025.
- No operating cash flow, free cash flow, or debt figure was reported in the filing.
Analysis
IGI delivered premium growth and remained profitable in underwriting, but its second-quarter earnings profile was pressured by elevated catastrophe losses and an adverse foreign-exchange swing. Gross written premiums increased by 7.4% to $201.7 million, net premiums earned were $125.0 million versus $115.0 million, and every segment generated underwriting profit. Net income, however, was $20.9 million compared to $34.1 million, while diluted earnings per share were $0.49 compared to $0.77.
The principal underwriting issue was Middle East war-related loss activity. The second-quarter loss ratio was 57.9%, including CAT losses of 18.8%, versus 53.2%, including CAT losses of 9.0%, a year earlier. This drove the combined ratio to 95.1% from 90.5%, despite the expense ratio being broadly stable at 37.2% versus 37.3%. The accident year combined ratio prior to CAT losses was 74.9%, compared with 76.0%, which highlights the underlying pre-CAT result reported by the company.
Segment mix was uneven. Specialty Long-tail moved to underwriting income of $5.5 million from an underwriting loss of $2.9 million, supported by higher net premiums earned. Specialty Short-tail generated higher gross written premiums of $134.3 million but underwriting income fell to $16.0 million from $25.6 million because Middle East losses increased net loss and loss adjustment expenses. Reinsurance gross written premiums rose to $24.7 million from $16.3 million on new India business, while underwriting income declined to $8.0 million from $12.3 million on higher loss expenses. For the first half, Reinsurance premiums declined to $80.3 million from $86.3 million after two programme non-renewals in the first quarter.
Investment income increased by 4.3% to $14.5 million and annualized investment yield was 4.6%, compared to 4.5%. Net investment income rose to $17.5 million from $17.1 million, including higher positive mark-to-market movement in the equity portfolio. Foreign exchange was a material offset: the company reported a $1.0 million net foreign exchange loss versus a $10.1 million gain. Core operating income was $18.7 million versus $22.8 million, reflecting lower underwriting income on a comparative basis.
Capital returns remained meaningful, with $ (5.1 ) of second-quarter treasury-share purchases and $ (3.2 ) of cash dividends declared. Total shareholders’ equity was $669.0 million at June 30, 2026, down from $710.2 million at December 31, 2025, while book value per share was $16.04 compared to $16.91. The company declared a $0.075 per share ordinary common share dividend on August 3, 2026. No quantitative forward earnings, premium, margin, or expense guidance was provided.
Management, verbatim
We delivered excellent underlying results in both the second quarter and first half of 2026 and continued to generate significant returns for shareholders, highlighted by annualized returns on average equity of 12.6% and 12.3% for the second quarter and first six months 2026, respectively.
Waleed Jabsheh, IGI Group President & CEO
These results were delivered against a backdrop of significant loss activity, mostly stemming from war in the Middle East, which in aggregate represents one of the largest single event losses in IGI’s almost 25-year history.
Waleed Jabsheh, IGI Group President & CEO
Our results clearly show the resilience and strength that we have built in IGI. To be able to absorb this level of loss in the first six months of 2026 while posting net income of $42.5 million, a combined ratio of 92.2%, and returning $72.9 million to shareholders, demonstrates that our strategy is not only working very well, but also as it was designed to work.
Waleed Jabsheh, IGI Group President & CEO
Not in the filing
stated, not guessed- Forward financial guidance was not reported.
- Previous-release outlook was not provided.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Debt was not reported.
- Gross margin was not reported.
- Operating income was not reported.
- Operating expenses as a single consolidated line item were not reported.
- Tax rate was not reported.
- Prior-quarter comparisons for reported metrics were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.