IGI reports 85.7% Q3 combined ratio as reserve releases mask tougher underlying trends

By The Financial Edition · 4 November 2026 · 11:24 GMT · Insurance Business UK · 1 min read

Underlying underwriting and reserve reliance

International General Insurance Holdings (IGI) reported a headline combined ratio of 85.7% for the third quarter of 2026, alongside a core operating return on equity of 16.9% on an annualised basis. However, the headline result includes US$8.8 million of favourable prior-year reserve development. When adjusted, IGI's accident-year combined ratio for the third quarter stands at 92.8% after adding back US$8.6 million of current-year catastrophe losses. For the nine months to September 30, the gap is more pronounced, with a headline combined ratio of 90.1% compared to an accident-year combined ratio of 101.0%. Reserve releases for the nine-month period totalled US$39.4 million, up from US$30 million in the same period of 2025.

Segment shifts and war losses

Gross written premiums fell 9% in the third quarter to US$119.6 million from US$131.3 million a year earlier, driven largely by lower production in the short-tail energy line. For the nine months, gross written premiums stood at US$518.5 million compared to US$525.6 million a year ago. IGI noted that Middle East conflict losses, primarily affecting political violence and energy books, contributed to the majority of its 14.8 points of accident-year catastrophe losses in the nine-month loss ratio, which group president and chief executive Waleed Jabsheh described as likely the single largest loss event in the company's history. Meanwhile, the long-tail segment's nine-month underwriting income swung from US$1 million in 2025 to US$32.9 million in 2026.

Why it matters

Brokers and underwriters should note that IGI's nine-month accident year combined ratio sits at 101.0%, indicating that a growing share of headline profitability relies on prior-year reserve releases rather than current-year core underwriting.

Jargon, explained

combined ratio: An insurer's claims and relevant expenses as a percentage of earned premiums. Below 100% generally means an underwriting profit.
underwriting: Assessing a risk and deciding whether to provide insurance, at what price and on which terms.
loss ratio: Claims costs compared with earned insurance premiums for a stated period.

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