International General Insurance Holdings Ltd. Q4 FY2025 earnings call

• Wasef Jabsheh noted 2025 was a strong year with ~14% book value growth and $108 million return to shareholders, including a special dividend. - Waleed Jabsheh discussed key highlights like over $161 million underwriting income, combined ratio under 86%, return on average equity 18.6%, and book value per share growth. - Talked about segment results, balance sheet details including assets, investments, share repurchases, and equity. - Shared views on market conditions, with competition in certain lines like energy and property, strength in reinsurance, mixed short-tail, cautiously optimistic on long-tail with leveling off in pricing, and focus on global strategy and diversification.

Short-tail segment: Conditions mixed, rates broadly adequate. Underwriting income improved over 14% in Q4 but declined over 7% for full year due to lower net premiums earned and higher ceded premiums. Reinsurance segment: Conditions strong, pricing adequate. Underwriting income down ~4.5% in Q4 but up almost 30% for full year, reflecting shift to higher-margin reinsurance. Long-tail segment: Challenging for several years. Underwriting income for Q4 '25 was $10 million vs $14.3 million in Q4 '24; full year '25 underwriting income was $10.9 million vs $39.5 million in 2024. FX-neutral basis would have been $29.2 million for '25 vs $34.3 million for '24.

• Focus remains on focus, consistency, discipline for 2026. - Anticipate some contraction in top line in certain portfolio areas where business doesn't meet profitability targets. - Expect to replace lost income from non-renewed PI binder with new business, with a stable and potentially positive trajectory for long-tail portfolio once runoff of that portfolio is done. - G&A expenses expected to be more stable with potential growth on underwriting side if new opportunities arise.

Q: Could you walk through the state of competition, durability of pricing competition, particularly in property, and if we're reaching a bottom or continuing in 2026?

A: Competition in line with recent quarters, energy and property lines most pressured, no short-term let down expected, but can be managed.

Q: Type of insurers running into, traditional capital or new capital with alternative backing?

A: Pretty much all traditional, from larger carriers.

Q: Opportunity for M&A, multiples making sense?

A: Nothing solid on radar at present, focused on organic growth.

Q: How decide size of dividend vs buyback and capital management approach?

A: Buyback ongoing, special dividend based on business performance, capital adequacy, and ensuring strong capital position.

Q: Extent on long-tail line business in Q4 walking away from business not meeting hurdles?

A: Long-tail business had downward trajectory, most walking away done, replacing with new business.

Q: G&A pressure, if stuff done going forward, additional pressure in next quarters?

A: More stability, G&A expenses in pounds, growth on underwriting side if new opportunities, strategy impacts ratios but combined ratio remains healthy.

Q: Concerns on construction business delays impacting top line?

A: Projects take time to finalize, but not pulled, positive sign as big area for future