Shares of International General Insurance Holdings Ltd (IGIC) surged 6.52% in after-hours trading on Tuesday, following the release of its second-quarter 2025 financial results. The company reported a 3.9% year-over-year increase in net income, reaching $34.1 million, despite facing challenges from currency fluctuations and competitive market conditions.

The property and casualty insurer posted earnings per share (EPS) of $0.77 for the quarter, with core operating EPS coming in at $0.51. While the core operating EPS fell short of the $0.53 consensus estimate from two analysts, investors appeared to focus on the company's overall profitability and strong market position. The combined ratio, a key metric for insurers, stood at a healthy 90.5% for the quarter.

Despite the positive market reaction, IGIC faced headwinds during the quarter. Gross written premiums declined by 8.6% year-over-year, reflecting intensifying competition in certain market areas. The company also noted that currency revaluation of non-U.S. Dollar loss reserves negatively impacted underwriting results. However, Wall Street remains optimistic about IGIC's prospects, with a median 12-month price target of $32.00, representing a 26.7% upside from its last closing price. The current average analyst rating on the shares is "strong buy," with two analysts recommending either "strong buy" or "buy," highlighting the market's confidence in the company's long-term strategy and ability to navigate challenging market conditions.