International General Insurance Holdings (IGI) has reported an after-tax loss of $0.9m (£0.7m) for the quarter ended 31 March 2020, compared with a net profit after tax of $6.5m (£5.4m) in the same period last year.
The insurance company reported gross underwriting profit of $23.2m (£19.1m) compared with $11.8 (£9.7m) m for the quarter.
The company primarily attributed its first quarter results to the Covid-19 pandemic including foreign exchange losses of $11.9m (£9.8m), specifically weakening in the company’s transactional currencies (Pound Sterling and Euro) against the US dollar.
Also ,mark-to-market adjustments in the equity investment portfolio resulting in an unrealised loss of $4.6m (£3.8m) and net claims and claims expenses of $2m (£1.7m) , primarily representing the cost of claims incurred but not yet reported.
The company also reported gross written premiums of $99.2m (£81.8m) for the quarter compared with $80m (£65.9m) in 2019, reflecting year over year growth of 24%.
IGI chairman and CEO Mr. Wasef Jabsheh said the first three months of 2020 have been “extraordinary” across the globe but particularly for IGI as it became a public company and began trading on Nasdaq in mid-March.
He said: “We have seen significant turbulence across global financial and capital markets, disruption in (re)insurance markets, and the way we do business has been upended. Our results for the first quarter of 2020 – similar to other (re)insurance companies – clearly show the impacts of this crisis.
“While we recorded unrealized investment losses and significant fluctuations in our operating currencies, to date we have not recorded material underwriting losses as a direct result of the pandemic, but we are constantly monitoring this as the situation continues to evolve.”
He added: “Notwithstanding the uncertainty, IGI remains strong. I am very proud of the performance and resilience of all our people who have had to adjust to a whole new way of working.
“I am particularly pleased with the strong underwriting performance achieved during this period, and also that we were able to leverage our long-standing relationships and market position to take advantage of opportunities to refine our portfolio in our core lines and geographies, while writing profitable new business.”