Global Indemnity Group, LLC (NYSE:GBLI) (the “Company”) today
reported net income available to shareholders for the nine months
ended September 30, 2023, of $19.2 million compared to net loss
available to shareholders of $3.5 million(1) for the corresponding
period in 2022. Net income available to shareholders for the three
months ended September 30, 2023 was $7.6 million, compared to net
income available to shareholders of $23.6 million(1) for the
corresponding period in 2022.
Selected Operating and Balance
Sheet Information
Consolidated Results Including
Continuing Lines and Exited Lines
(Dollars in millions, except per
share data)
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2023
2022
2023
2022
Gross Written Premiums
$
98.9
$
175.8
$
332.0
$
563.6
Net Written Premiums
$
95.6
$
142.8
$
317.5
$
469.5
Net Earned Premiums
$
111.7
$
153.6
$
380.9
$
458.2
Net income (loss) available to
shareholders
$
7.6
$
23.6
$
19.2
$
(3.5)
Net income (loss) available to
shareholders per share
$
0.55
$
1.60
$
1.39
$
(0.24)
Combined ratio analysis:
Loss ratio
58.3
%
57.6
%
60.7
%
58.0%
Expense ratio
41.4
%
39.6
%
38.5
%
39.0%
Combined ratio
99.7
%
97.2
%
99.2
%
97.0%
As of September 30,
2023
As of June 30, 2023
As of March 31, 2023
As of December 31,
2022
Book value per share (2)
$
46.27
$
46.03
$
45.68
$
44.87
Book value per share plus cumulative
dividends and excluding AOCI
$
54.84
$
54.28
$
53.46
$
52.98
Shareholders’ equity (3)
$
630.7
$
626.4
$
628.2
$
626.2
Cash and invested assets (4)
$
1,366.8
$
1,343.4
$
1,347.1
$
1,342.6
Shares Outstanding (in millions)
13.5
13.5
13.7
13.9
(1) Includes a net gain of $16.5 million
for the sale of the Company's Farm, Ranch, & Stable renewal
rights.
(2) Net of cumulative Company
distributions to common shareholders totaling $5.75 per share,
$5.50 per share, $5.25 per share and $5.00 per share as of
September 30, 2023, June 30, 2023, March 31, 2023, and December 31,
2022, respectively.
(3) Shareholders’ equity includes $4
million of series A cumulative fixed rate preferred shares.
(4) Including receivable/(payable) for
securities sold/(purchased).
Business Highlights
- Underwriting income was $0.7 million for the three months ended
September 30, 2023 compared to $4.6 million for the same period in
2022 and $3.9 million for the nine months ended September 30, 2023
compared to $14.6 million for the same period in 2022. (Please see
tables which follow.) The Company's Continuing Lines and
Consolidated accident year combined ratios were 97.8% and 98.6%,
respectively, for the three months ended September 30, 2023 and
97.6% and 98.9%, respectively, for the nine months ended September
30, 2023.
- Commercial Specialty, excluding terminated business1 2,
performed as follows:
- Package Specialty E&S, the Company’s primary division
within its Commercial Specialty segment, increased gross written
premiums by 6.1% to $53.5 million for the three months ended
September 30, 2023 from $50.4 million for the same period in 2022
and increased by 12.4% to $173.4 million for the nine months ended
September 30, 2023 from $154.3 million for the same period in 2022
driven by new agency appointments, strong rate increases as well as
exposure growth in both property and general liability.
- Targeted Specialty E&S decreased gross written premiums by
21.7% to $33.5 million for the three months ended September 30,
2023 from $42.8 million for the same period in 2022 and decreased
by 20.4% to $102.8 million for the nine months ended September 30,
2023 from $129.1 million for the same period in 2022. Targeted
Specialty includes the Company's InsurTech business and its class
specific business.
- Targeted Specialty InsurTech increased gross written premiums
by 22.7% to $13.4 million for the three months ended September 30,
2023 from $10.9 million for the same period in 2022 and increased
by 16.8% to $35.7 million for the nine months ended September 30,
2023 from $30.6 million for the same period in 2022 primarily due
to new agent appointments and focused marketing efforts.
- Targeted Specialty Class Specific decreased gross written
premiums by 36.9% to $20.2 million for the three months ended
September 30, 2023 from $31.9 million for the same period in 2022
and decreased by 31.9% to $67.1 million for the nine months ended
September 30, 2023 from $98.5 million for the same period in 2022
primarily due to actions taken to improve underwriting results
through increased rates, reduced exposures to catastrophe prone
business and non-renewal of underperforming business.
- Commercial Specialty incurred accident year gross loss ratios
of 56.5% and 57.1% for the three and nine months ended September
30, 2023, respectively, which are 5.0 points lower and 0.6 points
higher, respectively, than the same periods in 2022.
- Net investment income increased to $14.2 million for the three
months ended September 30, 2023 from $8.4 million for the three
months ended September 30, 2022 and increased to $39.4 million for
the nine months ended September 30, 2023 from $16.9 million for the
nine months ended September 30, 2022.
- The increase in net investment income was primarily due to the
strategies employed by the Company in April 2022 to take advantage
of rising interest rates, which resulted in a 74% increase in book
yield over time on the fixed income portfolio to 4.0% at September
30, 2023 from 2.3% at March 31, 2022, while the average duration of
these securities was shortened to 1.2 years at September 30, 2023
from 3.3 years at March 31, 2022.
- Approximately $800 million of cash flow, or approximately 60%,
of the Company’s fixed income portfolio, will be generated from
maturities and investment income between September 30, 2023 and
December 31, 2024, positioning the Company to continue to increase
book yield by investing maturities in higher yielding bonds.
- Book value per share increased $1.40 per share, or 3.1%, to
$46.27 at September 30, 2023 from $44.87 at December 31, 2022.
1 Reflecting the Company's focus on “Main Street Specialty
E&S” clients and continuing efforts to terminate business that
does not meet the Company's underwriting criteria, which are
continuously refined. References to gross written premiums and loss
ratios in this Business Highlights section that exclude terminated
business within the Commercial Specialty segment contained in
Continuing Lines do not include (i) terminated gross written
premiums within Package Specialty E&S of $2.3 million for the
three months ended September 30, 2022 and $1.1 million and $8.1
million for the nine months ended September 30, 2023 and 2022,
respectively, in habitational lines in New York City and (ii)
terminated gross written premiums within Targeted Specialty E&S
of less than $0.1 million and $0.5 million for the three months
ended September 30, 2023 and 2022, respectively, and $0.7 million
and $12.5 million for the nine months ended September 30, 2023 and
2022, respectively, concentrated in a large corporate restaurant
account. There were no terminated gross written premiums within
Package Specialty E&S for the three months ended September 30,
2023.
2 Represents Non-GAAP financial measures or ratios. See
“Reconciliation of Non-GAAP Financial Measures and Ratios” at the
end of this press release.
Global Indemnity Group, LLC’s Business Segment Information
for the Three and Nine Months Ended September 30, 2023 and
2022
For the Three Months Ended
September 30, 2023
Continuing Lines
Exited Lines
Total
(Dollars in thousands)
Revenues:
Gross written premiums
$
98,893
$
33
$
98,926
Net written premiums
$
95,967
$
(344
)
$
95,623
Net earned premiums
$
110,350
$
1,345
$
111,695
Other income
275
24
299
Total revenues
110,625
1,369
111,994
Losses and Expenses:
Net losses and loss adjustment
expenses
Current accident year
65,456
(289
)
65,167
Prior accident year
11,841
(11,892
)
(51
)
Total net losses and loss adjustment
expenses
77,297
(12,181
)
65,116
Acquisition costs and other underwriting
expenses
43,224
2,978
46,202
Income (loss) from segments
$
(9,896
)
$
10,572
$
676
Combined ratio analysis:
Loss ratio
Current accident year
59.3
%
(21.5
%)
58.3
%
Prior accident year
10.7
%
(884.2
%)
—
Calendar year loss ratio
70.0
%
(905.7
%)
58.3
%
Expense ratio
39.2
%
221.4
%
41.4
%
Combined ratio
109.2
%
(684.3
%)
99.7
%
Accident year combined ratio(1)
97.8
%
169.9
%
98.6
%
For the Three Months Ended
September 30, 2022
Continuing Lines
Exited Lines
Total
(Dollars in thousands)
Revenues:
Gross written premiums
$
139,111
$
36,716
$
175,827
Net written premiums
$
136,227
$
6,608
$
142,835
Net earned premiums
$
133,643
$
20,001
$
153,644
Other income
272
44
316
Total revenues
133,915
20,045
153,960
Losses and Expenses:
Net losses and loss adjustment
expenses
Current accident year
79,590
11,861
91,451
Prior accident year
(2,441
)
(551
)
(2,992
)
Total net losses and loss adjustment
expenses
77,149
11,310
88,459
Acquisition costs and other underwriting
expenses
50,830
10,046
60,876
Income (loss) from segments
$
5,936
$
(1,311
)
$
4,625
Combined ratio analysis:
Loss ratio
Current accident year
59.6
%
59.3
%
59.5
%
Prior accident year
(1.9
%)
(2.8
%)
(1.9
%)
Calendar year loss ratio
57.7
%
56.5
%
57.6
%
Expense ratio
38.0
%
50.2
%
39.6
%
Combined ratio
95.7
%
106.7
%
97.2
%
Accident year combined ratio(1)
97.7
%
106.6
%
98.9
%
(1) Excludes the impact of net losses and
loss adjustment expenses and contingent commissions related to
prior accident years.
For the Nine Months Ended
September 30, 2023
Continuing Lines
Exited Lines
Total
(Dollars in thousands)
Revenues:
Gross written premiums
$
328,008
$
4,003
$
332,011
Net written premiums
$
317,357
$
123
$
317,480
Net earned premiums
$
361,372
$
19,551
$
380,923
Other income
808
127
935
Total revenues
362,180
19,678
381,858
Losses and Expenses:
Net losses and loss adjustment
expenses
Current accident year
217,557
13,642
231,199
Prior accident year
19,296
(19,296
)
-
Total net losses and loss adjustment
expenses
236,853
(5,654
)
231,199
Acquisition costs and other underwriting
expenses
136,275
10,506
146,781
Income (loss) from segments
$
(10,948
)
$
14,826
$
3,878
Combined ratio analysis:
Loss ratio
Current accident year
60.2
%
69.8
%
60.7
%
Prior accident year
5.3
%
(98.7
%)
—
Calendar year loss ratio
65.5
%
(28.9
%)
60.7
%
Expense ratio
37.7
%
53.7
%
38.5
%
Combined ratio
103.2
%
24.8
%
99.2
%
Accident year combined ratio(1)
97.6
%
122.9
%
98.9
%
For the Nine Months Ended
September 30, 2022
Continuing Lines
Exited Lines
Total
(Dollars in thousands)
Revenues:
Gross written premiums
$
434,489
$
129,144
$
563,633
Net written premiums
$
421,577
$
47,898
$
469,475
Net earned premiums
$
392,297
$
65,919
$
458,216
Other income
791
48
839
Total revenues
393,088
65,967
459,055
Losses and Expenses:
Net losses and loss adjustment
expenses
Current accident year
231,549
43,849
275,398
Prior accident year
(4,085
)
(5,541
)
(9,626
)
Total net losses and loss adjustment
expenses
227,464
38,308
265,772
Acquisition costs and other underwriting
expenses
146,413
32,253
178,666
Income (loss) from segments
$
19,211
$
(4,594
)
$
14,617
Combined ratio analysis:
Loss ratio
Current accident year
59.0
%
66.5
%
60.1
%
Prior accident year
(1.0
%)
(8.4
%)
(2.1
%)
Calendar year loss ratio
58.0
%
58.1
%
58.0
%
Expense ratio
37.3
%
48.9
%
39.0
%
Combined ratio
95.3
%
107.0
%
97.0
%
Accident year combined ratio(1)
96.3
%
109.9
%
98.3
%
(1) Excludes the impact of net losses and
loss adjustment expenses and contingent commissions related to
prior accident years.
Global Indemnity Group, LLC’s Gross Written and Net Written
Premiums Results by Segment for the Three and Nine Months Ended
September 30, 2023 and 2022
Three Months Ended September
30,
Gross Written Premiums
Net Written Premiums
2023
2022
% Change
2023
2022
% Change
Commercial Specialty
$
87,029
$
96,056
(9.4%)
$
84,103
$
93,172
(9.7%)
Reinsurance Operations
11,864
43,055
(72.4%)
11,864
43,055
(72.4%)
Continuing Lines
98,893
139,111
(28.9%)
95,967
136,227
(29.6%)
Exited Lines
33
36,716
(99.9%)
(344
)
6,608
(105.2%)
Total
$
98,926
$
175,827
(43.7%)
$
95,623
$
142,835
(33.1%)
Nine Months Ended September
30,
Gross Written Premiums
Net Written Premiums
2023
2022
% Change
2023
2022
% Change
Commercial Specialty
$
277,884
$
303,914
(8.6%)
$
267,233
$
291,002
(8.2%)
Reinsurance Operations
50,124
130,575
(61.6%)
50,124
130,575
(61.6%)
Continuing Lines
328,008
434,489
(24.5%)
317,357
421,577
(24.7%)
Exited Lines
4,003
129,144
(96.9%)
123
47,898
(99.7%)
Total
$
332,011
$
563,633
(41.1%)
$
317,480
$
469,475
(32.4%)
Commercial Specialty: Gross written premiums and net
written premiums decreased 9.4% and 9.7%, respectively, for the
three months ended September 30, 2023 as compared to the same
period in 2022. Gross written premiums and net written premiums
decreased 8.6% and 8.2%, respectively, for the nine months ended
September 30, 2023 as compared to the same period in 2022. The
decrease in gross written premiums and net written premiums was
primarily driven by the non-renewal of a restaurant book of
business as well as actions taken to improve underwriting results
by nonrenewing underperforming business partially offset by
increased pricing.
Package Specialty E&S, the Company’s primary division within
its Commercial Specialty segment, increased gross written premiums
excluding terminated business1 by 6.1% and 12.4% for the three and
nine months ended September 30, 2023, respectively, as compared to
the same periods in 2022 driven by new agency appointments, strong
rate increases as well as exposure growth in both property and
general liability.
Targeted Specialty E&S, a division within the Company’s
Commercial Specialty segment, decreased gross written premiums
excluding terminated business1 by 21.7% and 20.4% for the three and
nine months ended September 30, 2023, respectively, as compared to
the same periods in 2022. Targeted Specialty includes the Company's
InsurTech business and its class specific business.
- Targeted Specialty InsurTech increased gross written premiums
by 22.7% and 16.8% for the three and nine months ended September
30, 2023, respectively, as compared to the same periods in 2022
primarily due to new agent appointments and focused marketing
efforts.
- Targeted Specialty Class Specific decreased gross written
premiums excluding terminated business by 36.9% and 31.9% for the
three and nine months ended September 30, 2023, respectively, as
compared to the same periods in 2022 primarily due to actions taken
to improve underwriting results through increased rates, reduced
exposures to catastrophe prone business and non-renewal of
underperforming business.
Reinsurance Operations: Gross written premiums and net
written premiums both decreased 72.4% for the three months ended
September 30, 2023 as compared to the same period in 2022. Gross
written premiums and net written premiums both decreased 61.6% for
the nine months ended September 30, 2023 as compared to the same
period in 2022. The reduction in gross written premiums and net
written premiums was primarily due to the non-renewal of a casualty
treaty.
Exited Lines: Gross written premiums and net written
premiums decreased 99.9% and 105.2%, respectively, for the three
months ended September 30, 2023 as compared to the same period in
2022. Gross written premiums and net written premiums decreased
96.9% and 99.7%, respectively, for the nine months ended September
30, 2023 as compared to the same period in 2022. The decrease in
gross written premiums and net written premiums was primarily due
to selling the manufactured home & dwelling and farm
businesses.
1 Represents Non-GAAP financial measures
or ratios. See “Reconciliation of Non-GAAP Financial Measures and
Ratios” at the end of this press release.
Global Indemnity Group, LLC’s Combined Ratio for the Three
and Nine Months Ended September 30, 2023 and 2022
The consolidated combined ratio was 99.7% for the three months
ended September 30, 2023, (Loss Ratio 58.3% and Expense Ratio
41.4%) as compared to 97.2% (Loss Ratio 57.6% and Expense Ratio
39.6%) for the three months ended September 30, 2022. The accident
year combined ratio for Continuing Lines was 97.8% for the three
months ended September 30, 2023, (Loss Ratio 59.3% and Expense
Ratio 38.5%) as compared to 97.7% (Loss Ratio 59.6% and Expense
Ratio 38.1%) for the three months ended September 30, 2022. The
calendar year combined ratio for Continuing Lines was 109.2% for
the three months ended September 30, 2023, (Loss Ratio 70.0% and
Expense Ratio 39.2%) as compared to 95.7% (Loss Ratio 57.7% and
Expense Ratio 38.0%) for the three months ended September 30,
2022.
- The calendar year combined ratio for Continuing Lines for 2023
was impacted by loss reserve strengthening primarily driven by the
restaurant book of business that was not renewed and other
terminated business, as well as for accident year 2020. Reserve
decreases in Exited Lines resulted from the commutation of a
reinsurance treaty and favorable development in the Farm, Ranch
& Stable business.
- For the Continuing Lines business, the accident year casualty
loss ratio increased by 3.7 points to 63.7% in 2023 from 60.0% in
2022. The consolidated accident year casualty loss ratio increased
by 3.4 points to 62.9% in 2023 from 59.5% in 2022. The increase in
the Continuing Lines and the Consolidated accident year casualty
loss ratios is primarily due to higher claims severity.
- For the Continuing Lines business, the accident year property
loss ratio improved by 8.9 points to 49.4% in 2023 from 58.3% in
2022. The consolidated accident year property loss ratio improved
by 11.5 points to 48.1% in 2023 from 59.6% in 2022. The improvement
in the Continuing Lines and the Consolidated accident year property
loss ratios is primarily due to lower non-catastrophe claims
severity partially offset by higher catastrophe claims
frequency.
The consolidated combined ratio was 99.2% for the nine months
ended September 30, 2023, (Loss Ratio 60.7% and Expense Ratio
38.5%) as compared to 97.0% (Loss Ratio 58.0% and Expense Ratio
39.0%) for the nine months ended September 30, 2022. The accident
year combined ratio for Continuing Lines was 97.6% for the nine
months ended September 30, 2023, (Loss Ratio 60.2% and Expense
Ratio 37.4%) as compared to 96.3% (Loss Ratio 59.0% and Expense
Ratio 37.3%) for the nine months ended September 30, 2022. The
calendar year combined ratio for Continuing Lines was 103.2% for
the nine months ended September 30, 2023, (Loss Ratio 65.5% and
Expense Ratio 37.7%) as compared to 95.3% (Loss Ratio 58.0% and
Expense Ratio 37.3%) for the nine months ended September 30,
2022.
- The calendar year combined ratio for Continuing Lines for 2023
was impacted by loss reserve strengthening primarily driven by the
restaurant book of business that was not renewed and other
terminated business, as well as for accident year 2020. Reserve
decreases in Exited Lines resulted from the commutation of a
reinsurance treaty and favorable development in the Farm, Ranch
& Stable business.
- For the Continuing Lines business, the accident year casualty
loss ratio increased by 1.4 points to 60.9% in 2023 from 59.5% in
2022. The consolidated accident year casualty loss ratio increased
by 1.7 point to 60.8% in 2023 from 59.1% in 2022. The increase in
the Continuing Lines and the Consolidated accident year casualty
loss ratios is primarily due to higher claims severity.
- For the Continuing Lines business, the accident year property
loss ratio increased by 0.8 points to 58.5% in 2023 from 57.7% in
2022. The consolidated accident year property loss ratio improved
by 1.6 points to 60.4% in 2023 from 62.0% in 2022. The improvement
in the Consolidated accident year property loss ratios is mainly
due to lower non-catastrophe claims frequency partially offset by
higher claims frequency.
GLOBAL INDEMNITY GROUP,
LLC
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
(Dollars and shares in thousands,
except per share data)
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2023
2022
2023
2022
Gross written premiums
$
98,926
$
175,827
$
332,011
$
563,633
Net written premiums
$
95,623
$
142,835
$
317,480
$
469,475
Net earned premiums
$
111,695
$
153,644
$
380,923
$
458,216
Net investment income
14,200
8,389
39,424
16,911
Net realized investment gains (losses)
(133
)
2,234
(2,414
)
(33,067
)
Other income
299
30,316
935
30,839
Total revenues
126,061
194,583
418,868
472,899
Net losses and loss adjustment
expenses
65,116
88,459
231,199
265,772
Acquisition costs and other underwriting
expenses
46,202
60,876
146,781
178,666
Corporate and other operating expenses
5,280
14,064
16,638
21,718
Interest expense
—
—
12
3,004
Loss on extinguishment of debt
—
—
—
3,529
Income before income taxes
9,463
31,184
24,238
210
Income tax expense
1,763
7,438
4,707
3,399
Net income (loss)
7,700
23,746
19,531
$
(3,189
)
Less: Preferred stock distributions
110
110
330
330
Net income (loss) available to common
shareholders
$
7,590
$
23,636
$
19,201
$
(3,519
)
Per share data:
Net income (loss) available to common
shareholders
Basic
$
0.56
$
1.62
$
1.42
$
(0.24
)
Diluted (1)
$
0.55
$
1.60
$
1.39
$
(0.24
)
Weighted-average number of shares
outstanding
Basic
13,523
14,590
13,557
14,550
Diluted (1)
13,814
14,796
13,799
14,550
Cash distributions declared per common
share
$
0.25
$
0.25
$
0.75
$
0.75
Combined ratio analysis: (2)
Loss ratio
58.3
%
57.6
%
60.7
%
58.0
%
Expense ratio
41.4
%
39.6
%
38.5
%
39.0
%
Combined ratio
99.7
%
97.2
%
99.2
%
97.0
%
(1)
For the nine months ended September 30,
2022, weighted-average shares outstanding – basic was used to
calculate diluted earnings per share due to a net loss for the
period.
(2)
The loss ratio, expense ratio and combined
ratio are GAAP financial measures that are generally viewed in the
insurance industry as indicators of underwriting profitability. The
loss ratio is the ratio of net losses and loss adjustment expenses
to net earned premiums. The expense ratio is the ratio of
acquisition costs and other underwriting expenses to net earned
premiums. The combined ratio is the sum of the loss and expense
ratios.
GLOBAL INDEMNITY GROUP,
LLC
CONSOLIDATED BALANCE
SHEETS
(Dollars in thousands)
(Unaudited) September 30,
2023
December 31, 2022
ASSETS
Fixed maturities:
Available for sale, at fair value
(amortized cost: $1,334,130 and $1,301,723; net of allowance for
expected credit losses of $0 at September 30, 2023 and December 31,
2022)
$
1,287,095
$
1,248,198
Equity securities, at fair value
16,954
17,520
Other invested assets
36,868
38,176
Total investments
1,340,917
1,303,894
Cash and cash equivalents
46,470
38,846
Premium receivables, net of allowance for
expected credit losses of $4,120 at September 30, 2023 and $3,322
at December 31, 2022
131,107
168,743
Reinsurance receivables, net of allowance
for expected credit losses of $8,992 at September 30, 2023 and
December 31, 2022
85,581
85,721
Funds held by ceding insurers
19,884
19,191
Deferred federal income taxes
41,220
47,099
Deferred acquisition costs
45,942
64,894
Intangible assets
14,545
14,810
Goodwill
4,820
4,820
Prepaid reinsurance premiums
7,190
17,421
Lease right of use assets
10,115
11,739
Other assets
20,055
23,597
Total assets
$
1,767,846
$
1,800,775
LIABILITIES AND SHAREHOLDERS’
EQUITY
Liabilities:
Unpaid losses and loss adjustment
expenses
$
861,803
$
832,404
Unearned premiums
195,680
269,353
Ceded balances payable
3,532
17,241
Payable for securities purchased
20,607
66
Contingent commissions
4,801
8,816
Lease liabilities
13,515
15,701
Other liabilities
37,253
30,965
Total liabilities
$
1,137,191
$
1,174,546
Shareholders’ equity:
Series A cumulative fixed rate preferred
shares, $1,000 par value;
100,000,000 shares authorized, shares
issued and outstanding: 4,000 and 4,000 shares, respectively,
liquidation preference:
$1,000 per share and $1,000 per share,
respectively
4,000
4,000
Common shares: no par value; 900,000,000
common shares authorized;
class A common shares issued: 11,020,174
and 10,876,041 respectively; class A common shares outstanding:
9,748,933 and 10,073,660, respectively; class B common shares
issued and outstanding: 3,793,612 and 3,793,612, respectively
—
—
Additional paid-in capital (1)
454,416
451,305
Accumulated other comprehensive income
(loss), net of tax
(38,117
)
(43,058
)
Retained earnings (1)
242,519
233,468
Class A common shares in treasury, at
cost: 1,271,241 and 802,381 shares, respectively
(32,163
)
(19,486
)
Total shareholders’ equity
630,655
626,229
Total liabilities and shareholders’
equity
$
1,767,846
$
1,800,775
(1)
Since the Company’s initial public
offering in 2003, the Company has returned $606 million to
shareholders, including $522 million in share repurchases and $84
million in dividends/distributions.
GLOBAL INDEMNITY GROUP,
LLC
SELECTED INVESTMENT
DATA
(Dollars in millions)
Market Value as of
(Unaudited) September 30,
2023
December 31, 2022
Fixed maturities
$
1,287.1
$
1,248.2
Cash and cash equivalents
46.5
38.8
Total bonds and cash and cash
equivalents
1,333.6
1,287.0
Equities and other invested assets
53.8
55.7
Total cash and invested assets, gross
1,387.4
1,342.7
Payable for securities purchased
(20.6
)
(0.1
)
Total cash and invested assets, net
$
1,366.8
$
1,342.6
Total Investment Return
(1)
For the Three Months Ended
September 30, (Unaudited)
For the Nine Months Ended
September 30, (Unaudited)
2023
2022
2023
2022
Net investment income
$
14.2
$
8.4
$
39.4
$
16.9
Net realized investment gains (losses)
(0.1
)
2.2
(2.4
)
(33.0
)
Net unrealized investment gains
(losses)
(1.3
)
(23.0
)
6.1
(64.4
)
Net realized and unrealized investment
return
(1.4
)
(20.8
)
3.7
(97.4
)
Total investment return
$
12.8
$
(12.4
)
$
43.1
$
(80.5
)
Average total cash and invested assets
$
1,355.1
$
1,341.3
$
1,354.7
$
1,444.0
Total annualized investment return %
3.8
%
(3.7
%)
4.2
%
(7.4
%)
(1)
Amounts in this table are shown on a
pre-tax basis.
GLOBAL INDEMNITY GROUP,
LLC
SUMMARY OF ADJUSTED OPERATING
INCOME (LOSS)
(Unaudited)
(Dollars and shares in thousands,
except per share data)
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2023
2022
2023
2022
Adjusted operating income (loss), net of
tax
$
(551
)
$
6,543
$
9,780
$
14,529
Adjustments:
Underwriting income (loss) from Exited
Lines
8,352
(1,036
)
11,713
(3,629
)
Adjusted operating income including Exited
Lines,
net of tax (1)
7,801
5,507
21,493
10,900
Net realized investment gains (losses)
(101
)
1,770
(1,962
)
(27,029
)
Impact of the sale of renewal rights
—
16,469
—
16,469
Loss on extinguishment of debt
—
—
—
(3,529
)
Net income (loss)
$
7,700
$
23,746
$
19,531
$
(3,189
)
Weighted average shares outstanding –
basic
13,523
14,590
13,557
14,550
Weighted average shares outstanding –
diluted
13,523
14,796
13,799
14,749
Adjusted operating income per share –
basic (2)
$
(0.05
)
$
0.44
$
0.70
$
0.98
Adjusted operating income per share –
diluted (2)
$
(0.05
)
$
0.43
$
0.68
$
0.96
(1)
Adjusted operating income including Exited
Lines, net of tax, excludes preferred shareholder distributions of
$0.11 million for each of the three months ended September 30, 2023
and 2022 and $0.33 million for each of the nine months ended
September 30, 2023 and 2022.
(2)
The adjusted operating income (loss) per share calculation is net
of preferred shareholder distributions of $0.11 million for each of
the three months ended September 30, 2023 and 2022 and $0.33
million for each of the nine months ended September 30, 2023 and
2022.
Note Regarding Adjusted Operating Income (Loss)
Adjusted operating income (loss), a non-GAAP financial measure,
is equal to net income (loss) excluding after-tax net realized
investment gains (losses) and other unique charges not related to
operations. Adjusted operating income (loss) is not a substitute
for net income (loss) determined in accordance with GAAP, and
investors should not place undue reliance on this measure.
Reconciliation of non-GAAP financial measures and
ratios
The table below, which contains incurred losses and loss
adjustment expenses for the Commercial Specialty segment within
Continuing Lines, reconciles the non-GAAP measures or ratios, which
excludes the impact of prior accident year adjustments and ceded
losses and loss adjustment expenses, to its most directly
comparable GAAP measure or ratio. The Company believes the non-GAAP
measures or ratios are useful to investors when evaluating the
Company's underwriting performance as trends within Commercial
Specialty may be obscured by prior accident year adjustments and
ceded losses and loss adjustment expenses. These non-GAAP measures
or ratios should not be considered as a substitute for its most
directly comparable GAAP measure or ratio and does not reflect the
overall underwriting profitability of the Company.
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2023
2022
2023
2022
Losses $
Loss Ratio
Losses $
Loss Ratio
Losses $
Loss Ratio
Losses $
Loss Ratio
Casualty
Gross losses and loss adjustment expenses
excluding terminated business (1)
$
30,414
61.6
%
$
37,117
64.3
%
$
89,931
57.4
%
$
91,682
58.2
%
Gross losses and loss adjustment expenses
on terminated business (1)
2,576
256.3
%
576
9.4
%
10,050
128.2
%
12,838
58.1
%
Gross losses and loss adjustment expenses
(1)
$
32,990
65.5
%
$
37,693
59.0
%
$
99,981
60.7
%
$
104,520
58.2
%
Ceded losses and loss adjustment
expenses
(716
)
(483
)
(1,474
)
(1,142
)
Net losses and loss adjustment expenses
(2)
$
32,274
65.1
%
$
37,210
59.2
%
$
98,507
60.6
%
$
103,378
58.3
%
Property
Gross losses and loss adjustment expenses
excluding terminated business (1)
$
17,696
49.3
%
$
21,037
57.1
%
$
65,061
56.7
%
$
62,578
54.2
%
Gross losses and loss adjustment expenses
on terminated business (1)
37
6.6
%
157
25.3
%
391
23.5
%
990
54.1
%
Gross losses and loss adjustment expenses
(1)
$
17,733
48.7
%
$
21,194
56.5
%
$
65,452
56.2
%
$
63,568
54.2
%
Ceded losses and loss adjustment
expenses
(898
)
(356
)
(2,526
)
(2,031
)
Net losses and loss adjustment expenses
(2)
$
16,835
49.4
%
$
20,838
58.3
%
$
62,926
58.5
%
$
61,537
57.7
%
Commercial
Specialty
Gross losses and loss adjustment expenses
excluding terminated business (1)
$
48,110
56.5
%
$
58,154
61.5
%
$
154,992
57.1
%
$
154,260
56.5
%
Gross losses and loss adjustment expenses
on terminated business (1)
2,613
167.2
%
733
10.9
%
10,441
109.9
%
13,828
57.8
%
Gross losses and loss adjustment expenses
(1)
$
50,723
58.4
%
$
58,887
58.1
%
$
165,433
58.9
%
$
168,088
56.6
%
Ceded losses and loss adjustment
expenses
(1,614
)
(839
)
(4,000
)
(3,173
)
Net losses and loss adjustment expenses
(2)
$
49,109
58.7
%
$
58,048
58.9
%
$
161,433
59.7
%
$
164,915
58.1
%
(1)
Non-GAAP measure / ratio
(2)
Most directly comparable GAAP measure /
ratio
The table below, which contains gross written premiums for the
Commercial Specialty segment within Continuing Lines, reconciles
the non-GAAP measures, which excludes the impact of terminated
business, to its most directly comparable GAAP measure. The Company
believes the non-GAAP measures are useful to investors when
evaluating the Company's underwriting performance as trends within
Commercial Specialty may be obscured by the terminated business.
These non-GAAP measures should not be considered as a substitute
for its most directly comparable GAAP measure and does not reflect
the overall underwriting profitability of the Company.
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2023
2022
2023
2022
Package Specialty E&S
Gross written premiums excluding
terminated business (1)
$
53,486
$
50,389
$
173,399
$
154,305
Gross written premiums from terminated
business (1)
—
2,332
1,058
8,095
Total gross written premiums (2)
$
53,486
$
52,721
$
174,457
$
162,400
Targeted Specialty E&S
Gross written premiums excluding
terminated business (1)
$
33,533
$
42,835
$
102,767
$
129,058
Gross written premiums from terminated
business (1)
10
500
660
12,456
Total gross written premiums (2)
$
33,543
$
43,335
$
103,427
$
141,514
Commercial Specialty
Gross written premiums excluding
terminated business (1)
$
87,019
$
93,224
$
276,166
$
283,363
Gross written premiums from terminated
business (1)
10
2,832
1,718
20,551
Total gross written premiums (2)
$
87,029
$
96,056
$
277,884
$
303,914
(1)
Non-GAAP measure / ratio
(2)
Most directly comparable GAAP measure /
ratio
About Global Indemnity Group, LLC and its
subsidiaries
Global Indemnity Group, LLC (NYSE:GBLI), through its several
direct and indirect wholly owned subsidiary insurance companies,
provides both admitted and non-admitted specialty property and
specialty casualty insurance coverages and individual policyholder
coverages in the United States, as well as reinsurance worldwide.
Global Indemnity Group, LLC’s Continuing Lines segments are
Commercial Specialty and Reinsurance Operations. The Exited Lines
segment is comprised of business which the Company has decided it
will no longer write.
Forward-Looking Information
The forward-looking statements contained in this press release3
do not address a number of risks and uncertainties including
COVID-19. Investors are cautioned that Global Indemnity’s actual
results may be materially different from the estimates expressed
in, or implied, or projected by, the forward looking statements.
These statements are based on estimates and information available
to us at the time of this press release. All forward-looking
statements in this press release are based on information available
to Global Indemnity as of the date hereof. Please see Global
Indemnity’s filings with the Securities and Exchange Commission for
a discussion of risks and uncertainties which could impact the
Company and for a more detailed explication regarding
forward-looking statements. Global Indemnity does not assume any
obligation to update the forward-looking statements provided to
reflect events that occur or circumstances that exist after the
date on which they were made.
[3] Disseminated pursuant to the "safe harbor" provisions of
Section 21E of the Security Exchange Act of 1934.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231106537595/en/
Stephen W. Ries Head of Investor Relations (610) 668-3270
sries@gbli.com
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