01:30 PM EDT, 03/14/2024 (MT Newswires) -- International General Insurance ( IGIC ) closed 2023 with continued strong underwriting margins, RBC Capital Markets said Wednesday in a report.

Despite some premium growth deceleration due to adjustments in long-tail lines and reinsurance, the company declared a $0.50 a share special dividend, RBC said. "While market conditions aren't quite as favorable as the previous years, we think there are ample opportunities for growth in targeted lines/geographies," the report said.

In Q4 results, operating EPS of $0.65 a share was in line with the preannouncement, jumping from $0.29 a year earlier. The company had a combined ratio in the low 80s, up from the previous three quarters, RBC said. "Results were favorably impacted by a lower [accident year] loss ratio as a result of mix shifts toward short tail and reinsurance," according to the report.

Rate increases averaged 9% across International General Insurance's ( IGIC ) short-tail book in the quarter, which according to RBC, continues to outpace the loss cost trend. The biggest rate acceleration was again in property, engineering, and political violence" the report said.

RBC maintained its 2024 EPS estimate at $2.75 with 2025 at $2.90, and it kept its outperform rating with a price target of $15.

International General Insurance ( IGIC ) shares fell 2% in recent trading Thursday.

Price: 12.77, Change: -0.26, Percent Change: -2.00