Q1 2026 International General Insurance Holdings Ltd Earnings Call
Speaker #1: Participants are in listen-only mode. Should you need any assistance, please signal a conference specialist by pressing the star key, followed by 0. After today's presentation, there will be an opportunity to ask questions.
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Speaker #1: I would now like to turn the conference over to Robin Sidders, Head of Corporate Relations. Please go ahead.
Speaker #2: Thank you, John, and good morning, and welcome to today's conference call. Today we'll be discussing the financial results for the first quarter 2026, which you will have seen in our press release, which we issued after the market closed yesterday.
Speaker #2: you can find a copy of the press release, in the investor section of our website at iginsure.com, and we've also posted a supplementary investor presentation which can be found on our website as well, on the presentations page in the investor section.
Speaker #2: On today's call are Executive Chairman of IGI, Wasef Jabsheh, President and CEO, Waleed Jabsheh, and Chief Financial Officer Hervez Rizvi. As always, Wasef will begin the call with some high-level comments before handing over to Waleed to walk through the drivers of the results.
Speaker #2: For the first quarter 2026 and finish up with our views on market conditions and our outlook for the remainder of the year. Then we'll open the, the call up for Q&A.
Speaker #2: I'll begin with some customary safe-harbor language. Our speakers' remarks may contain forward-looking statements. Some of the forward-looking statements can be identified by the use of forward-looking words.
Speaker #2: We caution you that such forward-looking statements should not be regarded as rep as a representation by us that the future plans, estimate, or expectations contemplated by us will, in fact, be achieved.
Speaker #2: These forward-looking statements involve risks, uncertainties, and assumptions. While actual events or results may differ materially from those projected in the forward-looking statements due to, a variety of factors, including the risk factors set forth in the company's annual report on Forms 20F for the year ended December 31st, 2025, the company's reports on Form 6K and other filings with the SEC, as well as our results press release issued yesterday evening, and we take no we undertake no obligation to update or revise publicly any forward-looking statements which speak only as of the date they are made.
Speaker #2: During this call, we'll use certain non-GAAP financial measures for reconciliation of these measures to the nearest GAAP measure. Please see our earnings release, which has been filed with the SEC and is available on our website.
Speaker #2: With that, I'll turn the call over to our Executive Chairman, Wasef Jabsheh.
Speaker #3: thank you, Robin. And good day, everyone. Thank you for joining us on today's call. As, you saw from our first quarter financial results, that we issued last night, we, we are off to a strong start in 2026.
Speaker #3: On their own, these results are excellent, but viewed in the context of our long-term performance, they underscore the value of consistency and discipline in the existing our strategy.
Speaker #3: Long-term success in our business depends heavily on consistency and discipline. No matter what is going on in the world around us, this is particularly true for IGI, given the scope of our portfolio, the high severity lines of business we are writing, and our global footprint.
Speaker #3: Our value proposition and promise is to uncertainty, to maximize shareholders' returns over time, while being a stable, reliable, and fair partner to our customers.
Speaker #3: The first quarter of 2026 has certainly seen its fair share of uncertainty, with the ongoing conflict in the Middle East. Socially, politically, and economically.
Speaker #3: It is not just impacting the region, but is having global ramifications as well. Already, we are hearing insured market loss estimate out upwards of the $3 billion mark.
Speaker #3: when we established IGI in Amman, Jordan almost 25 years ago, our initial focus was almost exclusively on the Middle East region. It's a region we know and understand well, and where our relationships are some of the h longest in our history.
Speaker #3: I'll leave it to Waleed, to talk more about our Middle East exposures, and the dynamics of what is happening in the region. But before I do, I want to reiterate our how pleased I am with our performance in the first quarter.
Speaker #3: Notwithstanding the tragic consequences of the war. As we look ahead to our 25th anniversary, year in '27, 2027, I'm immensely proud of all, that we have accomplished at IGI.
Speaker #3: We are a relatively small player in the global insurance landscape, yet we are definitely punching well above our weight in terms of expertise and execution.
Speaker #3: This is clearly demonstrated in our financial performance and the significant value that we generate for our shareholders' consistently year after year. I will now hand over to Waleed to discuss the numbers in more detail and talk about market conditions and our outlook.
Speaker #3: And I'll remain on the call for any questions at the end. Waleed.
Speaker #4: good morning, thank you, Wasef, and thank you all for, joining us today. as, as Wasef or like Wasef, I'm very pleased with our, performance in, in the first quarter.
Speaker #4: In the face of increasing competitive pressures and heightened global uncertainty, our results, our clear demonstration of our resilience, and also, stability. Our diversified platform and strong and consistent execution provide us with a lot of optionality, as we've said in the past, and I truly commend all of our people for their focus and skill in capitalizing on the opportunities that are coming out of this uncertainty.
Speaker #4: Just turning specifically to the results for the first quarter, I'm gonna focus on, on the key points, the drivers behind the numbers, and then we'll open it up for, any questions you, you may have, at the end.
Speaker #4: and I'll starting with some key highlights for the first quarter. We recorded gross, written premiums of 197.2 million dollars, that's a 4.5% decline from Q1 '25, and reflects our cycle management actions in the face of increasingly tough market conditions.
Speaker #4: We recorded new business across por across the por our portfolio, but it was this was offset somewhat by the non-renewable of some, two reinsurance programs.
Speaker #4: one, non-renewed, which was our decision, and the other one where the seed is decided, to retain and not buy the reinsurance anymore. Underwriting income came in at, at, 37.7 million dollars, that's an increase of 35.1% over the first quarter of, 2025, and that resulted in a combined ratio of 89.1% for the quarter.
Speaker #4: That's 5.34 that's 5.3 points better than Q1 of last year, and in line, with our long-term averages. Combined ratio for Q1 includes about 15 million dollars of net losses related to the Middle East, conflict, and I'll talk about that more in, in a moment.
Speaker #4: return on average equity was 12.7%, and the core ROE was 14.3%, both also in line with, our long-term averages. book value per share was $15.60, that's a slight decline from year-end 2025, but that includes total capital return to shareholders of almost 65 million dollars.
Speaker #4: That's made up of 51.5 million dollars in dividends, that includes the, special dividend of $1.15, that we paid out in April, and then, further share repurchases amounting to just over, 13 million dollars.
Speaker #4: Net premiums earned were 111.2 million, relatively flat with the same period of last year. Combined ratio of 89.1% for, for the first quarter, that includes 19.
Speaker #4: 19.2 points of cap losses, primarily related to the Middle East war losses, and 29 points of favorable prior year, reserve development. That compares, to Q1 of last year where the combined ratio was 94.4%, which included 25 points of accident-tier cap losses, and, just under 23 points of favorable reserve development.
Speaker #4: One thing to point out, is that this, the during the first quarter of this year, currency revaluation movements were, much less of a feature than some prior quarters, and especially compared to the first quarter of last year.
Speaker #4: All in, we delivered core operating income of 24.4 million, dollars, or, 56 cents per share for the first, for Q1, of this year versus 19.5 million dollars or 42 cents per share, for the first quarter of last year.
Speaker #4: specifically, on our segment results, we'll, we'll start off with the short-tail segment, where conditions continue, to be quite, mixed. And, and that's evident in our results for the first quarter.
Speaker #4: Rates are still adequate overall, but there's a lot of variation in the level of adequacy from one line to another. And I'll expand on this in a in a in a in a few minutes.
Speaker #4: top line was down just, by 4%, underwriting income was down considerably, year over year, but still in very positive territory at 9.5 million dollars.
Speaker #4: This in spite of the level of losses, related to the war, again, amounting to about 15 million, mainly recorded in the political violence line, as well as an energy loss, in the Persian Gulf.
Speaker #4: this ultimately really speaks to how we manage risk and the resilience we've be we've built in our, portfolio. In the reinsurance segment, where conditions are becoming more competitive in the business we write, underwriting income was up just under 6% for the first quarter, that's on a lower level of gross written premium and net earned premiums.
Speaker #4: As I said, there were two, programs we, we, we non-renewed, but on the flip side, we're, we're starting to see some decent opportunities in the specialty treaty lines.
Speaker #4: I'll also talk about that in a moment. long-tail segment was a bright spot in our, segment results. We posted, 22% increase in top line, driven by new business in most lines, but most, most notably, within, the professional indemnity and, and marine liability lines.
Speaker #4: You'll recall that this, this has been mo the more, challenging area of our portfolio for the past, two, three years, and, and where we took the decision to non-renew business with the expectation, that in doing so, the overall, profitability profile of the of the of the segment would improve.
Speaker #4: Ultimately, underwriting income was up significantly by about 25 million dollars, and that's on a ha slightly higher net earned premiums, due to the higher volume of, premiums written.
Speaker #4: just quickly to the balance sheet, total assets were 2.1 billion dollars, total investments in cash 1.3 billion, allocation to fixed income securities, generated, just over 14 million investment income, in the first quarter, and that's a yield of 4.3%.
Speaker #4: and the average duration came down very slightly to 3.5 years. During, Q1, excuse me, we repurchased, a little over 545,000 common shares, average price per share, was 24 dollars and 11 cents.
Speaker #4: at the end of the quarter, we had about 4.1 million shares still outstanding, under, our existing 5 million common share, repurchase authorization. total equity was 653.6 million, at the end of the quarter, and that includes the, almost 65 million share repurchases, the common share dividend mentioned earlier, including the special, that was paid in April.
Speaker #4: now that compares to total equity of 700 just over 710 million dollars, at the end of 2025. Ultimately, we recorded a return on average equity of 12.7%, and a core operating ROA of, 14.3%.
Speaker #4: So very strong, results, especially considering the overall market softening and the heightened level of, you know, uncertainty around the globe. now before I turn to our market outlook, I'd just like to, expand on some of Wasef's comments about the Middle East, as it, continues to be an important region for us, and I think that in some pockets, there's still a bit of a perception that IGI is predominantly Middle Eastern company.
Speaker #4: Now in reality, company, with strong presence and understanding of all our markets. Now that's particularly true in the Middle East, through the, through our offices in Amman and, Dubai, where we've been serving clients for, for, for decades now.
Speaker #4: Specific losses incurred in the in, in, in the first quarter of, the year were perma primarily in the political violence book, and predominantly in the UAE and, and Bahrain relating to, physical damage.
Speaker #4: As well as the, the, upstream side, Persian market. a year ago. I mean, we're seeing instability in many regions around the world, and this is leading to an interesting dynamic.
Speaker #4: in that, we're seeing some decent opportunities come out of this uncertainty and dislocation. Now, it's an unfortunate fact, but, but a reality, or the reality of our business, that, that market corrections and improving conditions, only happen after significant loss and tragedy.
Speaker #4: So what this represents really is a lot, little short-term pain for a longer-term gain. The elevated level of competitive pressure across the market that we talked about on the last quarter's call, is still very much prevalent, but our vast diversification, broad product offering, global footprint, and, and the local knowledge that we have provides us with a level of, resilience and, and, as we always say, optionality.
Speaker #4: Now turning a bit to our geographic markets and the opportunities we're seeing, I'll start with the Middle East. as I mentioned earlier, we've got teams in Amman and Dubai, they work closely with our London teams, to capitalize on the opportunities arising from the current dynamic.
Speaker #4: where we're seeing the most opportunity here is obviously in the PV line, as that is where the bulk of the losses are, and, and, and, and that's in a market also which is long overdue for, a risk-adjusted, pricing correction.
Speaker #4: Pricing is now many, many multiples of where it was, before the war. And when, when I say that, I mean, in some cases, you know, the rate increases we're achieving, are amounting to, to, in the thousands of, of percentage point increases.
Speaker #4: Policy structures are, are improving, limits are shrinking significantly, and where there's historically been an, an, an, an overabundance of Middle East PV capacity, it's now much, much less ample.
Speaker #4: there's very clearly a changing perception of war risk in the region, and we uncertain, today than even can capitalize on that effectively, and efficiently, because we've already we already have the, the, the experience, significant experience.
Speaker #4: We already have the relationships, and we have the presence in the region. Now in other ge excuse me, now, in other geographic regions like the US, Europe, Asia-Pac, the story is, is, is fairly similar to what we said on prior calls, I'm not going to spend too much time on this, and but, but we're continuing as always, to, to look at these markets in a bigger and, and, in a bigger way, and, and look at new markets.
Speaker #4: At the same time. Now, turning to specific, lines of business, I'll start with our reinsurance segment, our treaty portfolio. margins here are still healthy, but competitive pressures are becoming increasingly, prevalent, as, as we've been hearing from everybody else.
Speaker #4: the opportunities here are more concentrated in specialty treaty lines, and, and that's where there, there've been, significant losses. So, basically marine, energy, and, terror, and political violence.
Speaker #4: you recall that we added a new a new senior, specialty treaty reinsurance underwriter last October, so we're well, positioned at the right time to develop and diversify, this part of the portfolio.
Speaker #4: In our in our long-tail segment, we continue, to be cautiously optimistic as we've been saying for the last couple of quarters. we're seeing some new opportunities and good deal flow, and you saw that in our first quarter results, especially in the more niche segments like, marine liability.
Speaker #4: specifically relating to the to the Baltimore bridge collapse, back in 2024, we've all seen in the news, reports that losses are, are now estimated to be as high, if not excess, 2.8 billion dollars.
Speaker #4: And that's ma that makes it a, a single largest loss in the history of the marine market. This is upending marine markets globally, particularly the, liability side.
Speaker #4: I want to be clear that IGI doesn't expect any material change in our loss estimates related to the to the to this event, that we recorded two years ago.
Speaker #4: Instead, I think this is very clearly an opportunity for us to capitalize on improved pricing, and demand for capital to grow and expand our direct liability book.
Speaker #4: We've already seen some of that in 2026, and it's widely expected that, renewal rates for the remainder of this year and into, 2027 are, will continue to improve.
Speaker #4: Now, turning to our short-tail portfolio, I've already spoken about PV. short-tail marine lines, like Cargo and specifically Cargo War and War on Land, we're seeing some positive traction coming out of the war, in the Middle East in these areas.
Speaker #4: Our energy book and, and certain areas of our property book, two of our largest lines, are clearly tougher than a year ago. And, and even since the beginning of this year, we've seen those competitive pressures further increase to the point of honestly being quite irrational in, in, in, in, in some cases.
Speaker #4: Having said that, we continue to see relatively healthy conditions in the more specialist lines like construction and engineering. A continued, excellent, deal flow. And contingency, also continues to be a bright spot, and that's a book that's, continues to grow for us.
Speaker #4: So definitely some very good opportunities in the pipeline for us. And this is in, in spite of the competitive pressures in, in, in some of the pockets we, we, we spoke about.
Speaker #4: I mean, but that of course is the is the nature of our business. In the, in the context of our size, breadth of offering, global footprint, financial strength, and, and ultimately the expertise of our people, it is a little easier for us to move the dial and write new healthy margin business.
Speaker #4: We've got a lot of levers to work, with, and we're in p in the position we need to be in right now, to take advantage of the opportunities in front of us.
Speaker #4: Now the underpinning of our strategy, and what our track record is built upon, as we've always said, is our disciplined execution. This is embedded in our DNA.
Speaker #4: We're a resilient company with a normal st quarter of a decade history, quarter of a century history, excuse me, of consistency and stability. Our position in the market is much stronger today, and we've shown that we won't compromise on our principles or values under pressure.
Speaker #4: We've demonstrated clearly that we're not afraid to say no, when business doesn't meet our terms or profitability thresholds. And we won't, under any circumstances, sacrifice the bottom line, to benefit the top line.
Speaker #4: Our focus is on intelligence risk selection, paying attention to the small print, and being aware of what's going on around us. It's embedded in our corporate culture.
Speaker #4: So we will continue to do what we do best, and that is to deliver on our promise of being a fair partner, to all our stakeholders, while generating superior value, for our shareholders.
Speaker #4: So I'm going to pause here, and we will turn it over for questions. operator, we're ready to take the first question, please.
Speaker #2: Thank you. We'll now begin the question and answer session. As a reminder, to ask a question, you may press star, then one on your telephone keypad.
Speaker #2: And if you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, press star one again. We will post momentarily to assemble our roster.
Speaker #2: Our first question comes from the line of Rowland Mayor with RBC Capital Markets. Please go ahead.
Speaker #3: Hi, I wanted to quickly say that given all that's going on in the Middle East, I hope everyone at IGI sees family is safe, and then congrats on the strong year, given all the moving pieces.
Speaker #4: Thank you. Thank you, Rowland. So I'm glad to say that everybody's in, in good shape and spirits.
Speaker #3: Could you help me with this large non-cat energy loss? And what was the size of it, and what happened there?
Speaker #4: Yeah, ba-basically, I mean, this is a this is a, an event that's actually was a direct indirect consequence of the war, where, a large support vessel in the energy industry, collided into, an offshore oil, platform.
Speaker #4: the, the circumstances around it are, are the, the cor not the precautions, but the I believe the, the, the unfortunate, actions that were taken, to, because of the war, and, and the circumstances around the, the, the fighting, where, you know, not, not enough safety measures were taken, and, you know, GPS was turned off, lights were turned off, and, and they decided to make a run for it, and ended up colliding with a with an offshore, platform.
Speaker #4: so it was an unfortunate incident, but, that's where we're here for. in terms of the amount for us, that loss amounted to about 10, 10 and a half million dollars net, to us in the quarter.
Speaker #4: So those were the circumstances of the loss.
Speaker #3: Okay, that's very helpful. And then I wanted to ask, on the durability of the opportunity and the political violence in war market, with all the excess capital in the industry today, would you expect that to be durable, or do you think people will start to rush in once there's some signs of stability in the region?
Speaker #4: I mean, it depends on, on, on your perception of, of, of the region. I mean, if you if you're asking me, I can't control what the rest of the market does.
Speaker #4: I don't think if, you know, if, if, a political agreement is, is, is, comes to fruition, I don't think that necessarily should or would result in, in the market piling back in, and ignoring what's happened over the last couple of months.
Speaker #4: I think there's a lot of pain. I mean, w I mentioned or Wasef mentioned, you know, the, the, the estimated market losses, are upwards of 3 billion, and some are talking close to 4 billion.
Speaker #4: You take that into co put that into context, the global political violence market premium, is estimated to be around a billion and a half.
Speaker #4: So so you know, it's been thi-this event on its own, in one of the smallest PB markets, actually, in the world, has created so much pain and agony for, for those involved.
Speaker #4: so I think regardless of what happens politically, the, the, the, the, the, the, the uncertainty will continue, to be there, and, and I think this I'm hoping is a longer-term opportunity, where, you know, we could quickly make back a lot of the, the, the losses, that we've incurred, and the market can, as a as a whole.
Speaker #4: As I mentioned earlier, I mean, we're seeing you know, huge, huge multiples in rate increases, and, and like I said, in some cases, over, you know, in the thousands of percent.
Speaker #4: and so, you know, as I mentioned as well, short-term pain for long ter longer-term gain, and I truly believe that is the case, on this occasion.
Speaker #3: Thank you. And then if I could squeeze in one more. It looks like the first quarter had bigger reserve releases than other quarters. Can you maybe just walk through what drove the development this quarter?
Speaker #4: Yeah, I mean, I think I think that just, you know, reinforces, you know, what we've always said on of how we approach the reserving side.
Speaker #4: I mean, I mean, if, if, if, if, if putting aside the events of the quarter, I mean, it was an unbelievable quarter for us.
Speaker #4: and, and prior years continued to perform ahead of expectation. Now, the releases weren't concentrated in any specific segment. It was pretty much you know, across across the board.
Speaker #4: but I think it's just a, a, a, a testament to the cautious approach that we always said we'd take to, to reserve releases. And, and, you know, we expect that pattern to, to, continue in the coming quarters, and, and, and years.
Speaker #4: as the market deteriorates, I mean, just to give you an idea, as the market, you know, w as, as we plan, as we as we update our plan every 6 to 12 months, you know, we update our plan loss ratios, you know, based on our expectation and based on our based on, you know, the, the changing market conditions.
Speaker #4: and so, with the competitive pressures that we've been seeing, recently, obviously, our, our approach will become more cautious, and, and in the initial 12 months of any, of any accident here, we-we're, we're, we're pretty much you know, reserving to plan, and, and, and following that, we, we, we start to, to take a hard look on at, you know, actual true incurred performance, and, and, and on that basis, that dictates the, the, what do you call it?
Speaker #4: The amount or level of, of reserve, you know, development, that, that, that ha that occurs.
Speaker #3: That's great. Thank you so much.
Speaker #4: Thank you, Roland.
Speaker #1: Our next question comes from the line of Michael Phillips with Oppenheimer. Please go ahead.
Speaker #3: thank you. thanks for your time, guys. ca I guess, first, quick numbers question. Can you give a dollar impact of the two reinsurance contracts that were lost in the quarter?
Speaker #4: F-from a from, from I mean, these are portfolios of business that we, reinsure. Now, one of them, I mean, i-it combined, it's probably in the mid to high, single, digit millions of dollars in terms of GWP.
Speaker #4: Now, one of them, just to give you a, a, a, some, some clarity around that, Mike, is that, the one we chose to, walk away from, was because obviously, as we mentioned, we had we brought in a specialty treaty underwriter, tail end of last year, and that is the that is, the book that he would write is something similar to, what do you call it?
Speaker #4: Is, is similar to what, what, the book that we walked away from. so it's basically bringing that in-house capability in-house, rather than, than, than relying on, on, on, or piggybacking on somebody else's portfolio.
Speaker #4: and then the second one, as I said, the Cedant what do you call it? Decided they wanted to retain, the portfolio that rather than reinsure part of it out.
Speaker #4: plain and simple.
Speaker #3: Okay. No, thank you. a-and, and I just kinda wanna circle over on, on the Middle East stuff. w you know, opportunities, obviously, gonna come from this, and Waleed, when you talk about multiples or rate increases that are in the thousands, I guess I'm trying to get a sense of you know, I think political balance for you is in terms of premium is, you know, low single digit.
Speaker #3: but other lines that could be affected that create opportunity, i-is there a way you can help us think about, you know, what's your mix of overall premium that could be affected by this, in terms of these opportunities, political violence, again, is a big loss line, but I think it again, it's only, what, 2 or 3 percent of your premium.
Speaker #3: So what other lines will you talk about these rate increases that are so strong because of what's happened in the Middle East could be affected by, by your book?
Speaker #4: in terms of, of, of giving a-an idea on premium, I think it's very difficult and very early to, to, to be able to give any, any sort of ideas.
Speaker #4: But, I I mean, by far, the, the, the, the, most, what do you call it? The, the, the, the, the line that will have will, will, will be impacted in the conditions, you know, in terms of conditions, will be impacted the most.
Speaker #4: And, and 100% based on what, we've seen and experienced so far, is on the political violence side. not only are the rates multiplying, by, you know, 10, 15, 20 times, but the limits are shrinking, capacities dwindling, line sizes are, are, being adjusted by the in by, by all the players.
Speaker #4: now, where I think there, there's definitely opportunity, is, is, is again, on the marine side, especially on, on marine an-anything to do related with war, you know, Hull war, cargo war, war on land, but we haven't seen the activity in those areas, come to fruition in the same, to the same level that we see in the political violence side.
Speaker #4: I think it will come, ultimately, the Strait of Hormuz is effectively still shut, with a limited number of, of, of ships, going in and out.
Speaker #4: And until those ships are, are, are able to now, to sail, you know, freely, you're, you're not gonna see the abundance of that business, so, so when that happens, I think that you're gonna be, seeing, plenty of opportunity, in those lines of business.
Speaker #4: But our, our big focus right now is on the political violence side, and I think that's, the, the, the, the, what do you call it?
Speaker #4: The, the, the hanging fruit, if you wanna, if you wanna call it that, and that I think that will continue. As a and as I think, you know, I reiterate in my, in my response to, to Roland's question, I think this is gonna be, a prolonged opportunity, where markets will be making their money back, I believe, in, in, in, in quite a short period of time.
Speaker #4: because, the conditions you know, regardless of what political, agreements, or, or, or resolutions, you know, I think, I I think there will always following these last couple of months, there'll always the heightened level of uncertainty and cautiousness by the market will, will, will stick around for quite a bit.
Speaker #4: And it should.
Speaker #3: Okay. Yeah, yeah. Thank no, thank you for all that. I, I i you know, the, the type I guess, next question is a little weird, but d-do the type of losses that you experience from these events in the Middle East, d-do they all from, th-they're different kind of losses that, you know, we're sort of used to, given the infrequent nature of these kind of things.
Speaker #3: But d-do these offer any different opportunity for you to have recoverables? later? the, the, the example you gave of the non-cap loss and the oil rig, made me think of this.
Speaker #3: But are, are there different types of opportunities for recoverables from war events, down the road?
Speaker #4: I, I've not, not seen not, not, nothing outside of the, the, the ordinary. I mean, war is war. Nobody, you know, the i-there's no sort of recovery in terms of subrogation or anything like that, that you can I think I, I, I don't see that, happening.
Speaker #4: Now, in, in, in terms of the, the, the, the energy loss itself, obviously, the r the owners of the pl of, of the of the platform can recover, or sue, you know, look to recover from the owners of the vessel.
Speaker #4: Now, we insure the platform. We don't we have nothing to do with the vessel itself. so, so, so, over time, you know, we may be able to recover from the owners of the vessel.
Speaker #4: And, and i-i-it's, it's pretty clear what happened, the issue you have here is there are, are, are, statute limitations based on maritime law, that limit how much you can recover, regardless of the extent of the damage.
Speaker #4: And, and that depends on the vessel and its size and its, various, various, characteristics of the vessel. We're not 100% certain what those limitations are in this case.
Speaker #4: but my, my, my, suspicion is that, there will be an element of recovery. I'm not confident that it'll be a significant, element re-relative to the size of the, the, actual loss in, in 100% terms.
Speaker #3: Okay. No, thanks. and then maybe just the last last one, kinda on the same topic. you know, 1Q, we had March, is there is it fair for us to maybe just extrapolate, you know, I, I guess the question's really what, w-what's, what since 1Q look like for those type of losses, since the end of the quarter?
Speaker #4: Sorry, sorry. I didn't get that, Mike.
Speaker #3: Yeah. just I'm, I'm, I'm cur you know, i-i-if we think about 2Q and, and cap losses for you guys, given the exposure in the Middle East, i-is it fair for us to kinda think about that you had one month of losses in March, and maybe just extrapolate from there what the second quarter might look like once we see that?
Speaker #4: I mean, March was definitely the busiest, month. It will there be, continued development of these losses in Q2, undoubtedly, of course. I mean, we're, we're.
Speaker #3: Mm-hmm.
Speaker #4: a-any losses that happen will, will, will continue to develop. And there were, there was further activity, in April. Now, most of April was fairly quiet, except for the first week, 10 days.
Speaker #4: so, the event is not necessarily over. and obviously, if, if, if, if there is no political, solution to all of this, I'm hoping there is, but if there isn't, then, then, the con the, the, the, the situation will, will, will continue to evolve and develop.
Speaker #4: I think, you know, the, the, the positive thing about political violence business is that the coverages are all provided, on an aggregate basis. So once you're once, if you get, if, if, if a if a loss is, impacts a per a specific policy, that erodes all its o all the limited purchased.
Speaker #4: There is no second or third event that can happen. You know, it's a it's an aggregate policy, and that, that, that coverage is exhausted, and it in your next not exposed to it anymore.
Speaker #4: so, so that's the positive aspect. So in answer to your question, will there be continued development? Yes. I would expect that development to be more limited than it was in Q1.
Speaker #3: Okay. Yeah. Thank you for that. And I appreciate all your time.
Speaker #4: Pleasure. Thanks, Mike.
Speaker #3: Discuss, please, our question and answer session. I would like to turn the conference back over to the management for closing remarks.
Speaker #2: Well, thank, thank you all for joining us today, as always. And thanks for your continued, support for IGI. if any, di if, if anybody has any additional questions, please, contact Robin.
Speaker #2: And she'll be happy, to assist. And we look forward to speaking to you all on, on, on the Q2 call. have a good day, everyone.
Speaker #2: Thank you.
