IGIC

Overall Financial Performance

• Q2 2026 GWP totaled $201.7 million (up 7.4% YoY), and H1 2026 GWP totaled just under $400 million (up 1.2% YoY). Approximately $10 million of H1 GWP comes from new Indian business secured after registration approval in June 2026.
• Q2 2026 combined ratio was 95.1%, including 18.8 points of catastrophe (CAAT) losses (11 points directly war-related) and 1.4 points of unfavorable prior year reserve development. Ex-CAAT accident year combined ratio was 74.9%, down from 76% in Q2 2025.
• H1 2026 combined ratio was 92.2%, including 19 points of CAAT losses (12 points directly war-related) and 13 points of favorable prior year reserve development. Ex-CAAT accident year combined ratio was 86.2%, up from 84.1% in H1 2025.
• An additional $10 million in indirect war losses in H1 added 4.5 points to the combined ratio and are not included in the CAAT line.
• Net income was just under $21 million ($0.49 per share) in Q2, and $42.5 million ($0.98 per share) in H1 2026, down from $34.1 million ($0.77 per share) in Q2 2025 and $61.4 million ($1.36 per share) in H1 2025.
• Return on average equity was 12.6% for Q2 2026, and 12.3% for H1 2026, broadly in line with the company's long-term averages.
• The company returned over $72 million in capital to shareholders in H1 2026, consisting of ~$55 million in dividends (including a $1.15 special dividend declared in March) and $18.2 million in share repurchases.

War Loss Resilience

• Aggregate net war-related losses for H1 2026 are on track to be the largest single net loss event in International General Insurance Holdings Ltd. (IGI)'s nearly 25-year history, with $14 million in net losses recorded in Q2 2026 and ~$39 million for H1. Losses are concentrated in the company's property (PV) book, stemming from exposures in the UAE, Saudi Arabia, Bahrain, and Oman, with no exposures in sanctioned countries. IGI's ability to absorb this large loss while maintaining strong profitability demonstrates the resilience of its business model, risk framework, and balance sheet.
• Following the conflict, IGI reduced PV line sizes and war exposures in the Middle East, while also taking advantage of improved pricing to write new business in the region, growing the PV book by approximately 45% with mostly pricing improvements and some new business growth.

Strategic & Operational Updates

• IGI secured regulatory approval to open a branch office in Gift City, India in June 2026, and is currently staffing and setting up the office. It has already written ~$10 million in GWP of new Indian business, concentrated in specialty niches including cyber and surety. This is a long-term growth opportunity in one of the world's fastest growing large economies.
• IGI is positioned to grow its direct marine liability book following the Baltimore bridge loss, with improved renewal rates expected for the remainder of 2026 and into 2027.
• Balance sheet: Total assets were just under $2.2 billion at the end of Q2 2026, with total investments and cash totaling just under $1.3 billion. 78% of the investment portfolio is allocated to fixed income, with a 4.5% yield and steady duration of 3.5 years. Total equity was just below $670 million at quarter end. After Q2 2026 repurchases, 3.9 million common shares remain under the existing 5 million share repurchase authorization.

Market Environment & Strategy

• The company maintains a long-term focus on over-the-cycle performance rather than quarterly results, with a core strategy of diversified underwriting, technical underwriting discipline, active capital and cycle management, and focus on risk-adjusted returns. The company does not rely on investment returns to offset underwriting performance during soft market conditions.

Management did not issue formal quantitative financial guidance for full-year 2026, but provided the following qualitative forward-looking outlooks:

• The company expects market conditions to stabilize somewhat for the long tail segment after multiple sequential years of declining rates.
• Further softening of reinsurance pricing at the January 1, 2027 renewal will depend on loss activity through the remainder of 2026.
• Renewal rates for marine liability are expected to continue improving through the rest of 2026 and into 2027, supporting growth of IGI's direct marine liability book.
• Management is cautiously optimistic that pricing will stabilize in the downstream energy segment following recent sizable industry losses.
• IGI sees continued healthy deal flow in construction engineering lines, driven by growth in global infrastructure projects.

1. Short Tail Segment: Gross written premiums (GWP) increased 7% year-over-year (YoY) for Q2 2026, and increased just over 2% YoY for H1 2026. Net premiums were down 3% YoY for Q2, and up just over 4% YoY for H1. Underwriting income was $16 million for Q2 and just over $25 million for H1, down substantially YoY due to elevated war-related losses, but remained healthy. This segment accounted for the majority of the company's war-related losses from the Middle East conflict.
2. Reinsurance Segment: Q2 2026 GWP increased, driven by new business from India, with net premiums written up just under 6% YoY to just over $25 million. For H1, both gross written premiums and net earned premiums were down YoY, primarily due to the non-renewal of two reinsurance programs in Q1 2026 that was previously disclosed. Underwriting income for the quarter was negatively impacted by higher overall loss activity.
3. Long Tail Segment: Q2 2026 gross written premiums were flat YoY, while net earned premiums were up over 33% YoY, leading to underwriting income of $5.5 million (compared to an underwriting loss of just under $3 million in Q2 2025). For H1, gross written premiums were up 6.6% YoY and net earned premiums up 17.4% YoY, driven by new business growth across most lines. Underwriting income increased substantially to just under $23 million for H1 (compared to an underwriting loss of just over $10 million in H1 2025). A modest $1.7 million reserve strengthening was completed for this portfolio in Q2 2026, representing 1.5 percentage points of the Q2 combined ratio, and was a prudent adjustment specific to early years of the business with no systemic issues.

• Pricing is declining rapidly across many lines of business, with competitive pressures becoming increasingly severe, and pricing has reached irrational levels in some portions of the energy and property bulk portfolios.
• Ongoing conflict in the Middle East creates persistent uncertainty over future loss development, and has already resulted in the largest net loss event in IGI's history; the situation could deteriorate again leading to additional large losses.
• Some infrastructure projects in the Middle East have been delayed or canceled as a direct result of the conflict and associated uncertainty.
• Pricing improvements for war-exposed lines in the Middle East have been inconsistent across the market, with some market participants easing underwriting standards following a ceasefire announcement, which creates ongoing market-wide risk if volatility persists.
• Reserve risk remains for long-tail lines of business, requiring ongoing adjustment as additional loss experience emerges, though IGI maintains a conservative reserving approach for this segment.

Q: Roland Mayor (RBC) asked whether the market has responded appropriately to Middle East war risk, and whether global competitive pressure has limited pricing adjustments for exposed lines. / A: Management noted a strong pricing reaction in war-exposed property lines, with rate increases in some cases reaching thousands of percent. The reaction has been inconsistent across the market: some participants eased underwriting standards after a ceasefire announcement, even as uncertainty remains. IGI maintains strict underwriting discipline and will only write business that meets its risk-adjusted return requirements regardless of competitors' actions, and the conflict has not impacted non-war exposed lines to date.

Q: Mayor asked whether there has been additional large catastrophe loss activity in Q3 2026 to date, given elevated CAAT losses in the first half. / A: Management reported there have not been large severe losses comparable to those seen in March and April 2026 (when nearly all of IGI's year-to-date war losses occurred). While targeted attacks have continued after the ceasefire agreement, the loss environment has been fairly quiet so far in Q3, though management noted the situation could deteriorate again.

Q: Mayor asked how IGI approaches capital return at current valuations, specifically whether it would shift allocations from share buybacks to dividends if valuations remain low. / A: Management confirmed the existing share repurchase authorization remains in place, and the timing, volume and price of repurchases will be evaluated dynamically based on market conditions. Management noted the company avoids buying back shares at certain valuation levels, and would look to deploy excess capital through alternative return methods (including dividends) if buybacks are not attractive.

Q: Mayor asked for clarification on the recent Q2 2026 reserve strengthening, including which lines were impacted and if there was a change to current year loss projections. / A: Management confirmed the modest $1.7 million reserve adjustment was specific to long tail lines (mostly IB&R), and was driven by additional accumulated experience and data from the segment. IGI maintains a conservative approach to long tail reserving, and the adjustment was a small, prudent update that does not reflect any systemic issues. Across the full company, IGI released more than $30 million in prior year reserves in H1 2026, and the long tail segment reserve position remains broadly in line with year-end 2025 levels.