International General Insurance Holdings Ltd. (IGIC) stock prices were down by 3.11% as of the market closing on May 21st, 2021, bringing the price per share down to USD$8.71 at the end of the trading day. Subsequent current market fluctuation saw the stock rally by 0.12% as it climbed to USD$8.70.
Promising Financial Report
Net profit for the first quarter of the fiscal year 2021 was reported at USD$14.5, a significant improvement over the USD$0.9 net loss reported for the quarter ended March 31st, 2021. Core operating income came in at USD$14.7 million for Q1 2021, compared to the USD$13.4 million for the same quarter of the prior year. Despite the increase, the core operating return on average equity (annualized) decreased to 14.9% in the first quarter of 2021 down from 16.4% in Q1 2020. This is largely attributable to the increase in average shareholders’ equity from USD$328.1 million as of March 31st, 2020, compared to the USD$395.3 reported as of March 31st, 2021.
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Underwriting Results
Gross written premiums for the quarter ended March 31st, 2021 were reported at USD$100.6 million, up from the USD$99.2 million reported for the quarter ended March 31st of the previous year. IGIC continued to enjoy favorable market conditions as it sustained its efforts to refine its existing portfolio. This was evidenced by the company reported having achieved improved terms and conditions.
Investment Results
Compared to the USD$2 million loss reported in Q1 2020, the first quarter of the fiscal year 2021 reported a significant improvement, with total investment income totaling USD$5.1 million. This difference can largely be attributed to the substantial unrealized revaluation losses on investments stemming from the economically disruptive effects of the onset of the global Covid-19 pandemic in Q1 2020.
Solid Liquidity Position
As of March 31st, 2021, IGIC reported having cash, cash equivalents, and term deposits totaling USD$297.1 million, signifying a solid liquidity position. These reserves represented 38% of the company’s cumulative investments and cash portfolio, down from the USD$305.6 representing 39.4% as of December 31st, 2020. The total investments and cash portfolio includes cash, cash equivalents, and term deposits, investments, investment in associates, and investment properties.
Future Outlook for IGIC
Armed with a solid liquidity position that it can use to leverage further growth, IGIC is primed for a prosperous rest of the fiscal year 2021. Current and potential investors are hopeful that the company will be able to consolidate the growth it has experienced and rake in significant and sustained increases in shareholder value.
