IGIC Weathers Historic Middle East Losses, Launches India Expansion

International General Insurance Holdings (IGIC) reported Q2 2026 net profit of $21 million despite absorbing the largest war-related loss event in its 25-year history. The company recorded net war losses of $14 million in Q2 and roughly $39 million in H1, predominantly stemming from its political violence (PV) book. Yet the underlying underwriting engine proved its mettle: the H1 combined ratio came in at 92.2%, core operating return on average equity hit 12.5%, and over $72 million was returned to shareholders through dividends and buybacks. This is a company that has not only survived an extraordinary shock but has used it to reinforce its strategy.

Resilience Under Fire

The scale of the losses was unprecedented. As Waleed Jabsheh put it, “the war losses in aggregate for the first six months of the year represent what's possibly the largest net loss event in IGI's history” — Waleed Jabsheh, Executive (likely CFO or similar senior role) · 2026-08-05. The event was a real-life stress test, with 12 points of CAT losses related to the war in H1, but the ex-CAT accident year combined ratio of 86.2% remained healthy, albeit slightly above the prior year's 84.1%. The company's use of loss event analysis and its disciplined underwriting in Political Violence lines allowed it to cut line sizes and reduce exposure while still delivering a 92% combined ratio. This resilience is not accidental; it reflects the deliberate diversification and active cycle management that has been core to IGIC's story.

Turning Adversity into Advantage

While the losses were painful, the market dislocation created a significant opportunity. In the Middle East, pricing for PV and related lines improved dramatically, and IGIC capitalized on it. As Waleed noted in the prepared remarks, “we've taken advantage of the significantly improved pricing and terms and grown our PV book by about 45% in Q2” — Waleed Jabsheh, Executive (likely CFO or similar senior role) · 2026-08-05. This was a continuation of themes from the prior quarter's call, where management had already highlighted the exceptional rate increases. In May, Waleed described the market reaction: “we're seeing huge, huge multiples in rate increases. And like I said, in some cases, over in the thousands of percent” — Waleed Jabsheh, Executive (likely CEO or senior management) · 2026-05-06. He also framed it as “short-term pain for longer term gain” — Waleed Jabsheh, Executive (likely CEO or senior management) · 2026-05-06. The persistence of conflict and the aggregate nature of PV policies suggest this opportunity could be durable, and IGIC is positioned to benefit while others may be slow to re-enter.

India: A New Frontier

Beyond the war-driven growth, the company unveiled a genuinely new strategic initiative: expansion into India. Management announced they had “secured registration approval for the setup of a branch office in GIFT City” — Waleed Jabsheh, Executive (likely CFO or similar senior role) · 2026-08-05, India's first operational international financial services center. Already, they have written around $10 million of new Indian business, primarily in treaty reinsurance niches like cyber and surety. This move expands IGIC's global footprint and taps into one of the world's fastest-growing economies, further diversifying its underwriting portfolio. The office in GIFT City is a tangible sign of the company's long-term vision and its commitment to building physical presence in key regions.

Discipline and Outlook

The quarter also highlighted the company's careful reserve management. While IGIC strengthened reserves by $1.7 million in the long-tail segment—a modest adjustment based on more granular data—it released more than $30 million of prior-year reserves across all segments in H1. This conservative posture, combined with a focus on technical underwriting, positions the company well as the broader market softens. As Waleed summed up the company's philosophy,

our model and strategy was designed to perform