GBLI Global Indemnity Group LLC

Global Indemnity Group, LLC (NYSE:GBLI) (the “Company”) today reported an increase of 83% in net income available to shareholders to $21.2 million or $1.55 per share for the six months ended June 30, 2024 compared to $11.6 million or $0.84 per share for the same period in 2023.

On August 1, 2024, AM Best affirmed Global Indemnity Group, LLC’s A (Excellent) rating for its U.S. insurance subsidiaries and released:

• "AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issue Credit Ratings (Long-Term ICR) of “a” (Excellent) of the U.S. operating subsidiaries of Global Indemnity Group, LLC (Global Indemnity) (Delaware) [NYSE: GBLI]."
• "The balance sheet strength assessment reflects Global Indemnity’s risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by a conservative investment portfolio, generally conservative reserving practices, as well as the added financial flexibility through its parent’s access to capital markets."
• "Penn-America, the group’s core commercial specialty segment, which focuses on small-to middle-market customers, has been consistently profitable."
• "Global Indemnity is composed of several long-standing and well-recognized franchises that provide a diverse mix of business through multiple distribution channels.”

Highlights for the Six Months Ended June 30, 2024

• Net income available to shareholders increased 83% to $21.2 million or $1.55 per share in 2024 compared to $11.6 million or $0.84 per share in 2023.
• Operating income increased 51% to $20.6 million in 2024 compared to $13.7 million in 2023.
• Book value per share increased to $48.56 at June 30, 2024 from $47.53 at December 31, 2023; increased 3.6% including dividends paid of $0.70 per share in 2024.
• Investment income increased 18% to $29.8 million in 2024 compared to $25.2 million in 2023 due to an increase in book yield on the Company’s bond portfolio from 3.8% at June 30, 2023 to 4.5% at June 30, 2024.
• Annualized investment return was 5.2% for 2024 for the first six months of 2024.
• GBLI’s current accident year underwriting income increased to $8.7 million for 2024 compared with $3.2 million in 2023 driven by:
  • The Company’s Penn-America segment that posted $9.9 million of underwriting income (combined ratio of 94.8%), higher than 2023 underwriting income of $6.3 (combined ratio of 96.8%) driven by improved non-catastrophe and catastrophe property results.
  • GBLI's catastrophe losses declined 36%; $6.8 million in 2024 from $10.6 million in 2023.
• Penn-America gross written premiums, excluding programs terminated in 2023 increased 7% to $194.6 million compared to $182.3 million in 2023.
  • InsurTech grew 18% to $26.3 million in 2024 compared with $22.3 million in 2023 from organic agency growth, new agency appointments and new products.
  • Wholesale Commercial's policy premiums, excluding audit premiums, is higher by 12% in 2024 driven by aggregate premium rate increase of 9%.
  • Assumed Re increased from $4.2 million in 2023 to $9.4 million in 2024 due to new treaties commencing in both 2023 and 2024.
• Prior accident year loss development was slightly favorable at $0.1 million for the first six months of 2024.

Selected Operating and Balance Sheet Information

(Dollars in millions, except per share data)

 

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to shareholders

 

$

10.0

 

 

$

9.2

 

 

$

21.2

 

 

$

11.6

 

Net income available to shareholders per share

 

$

0.73

 

 

$

0.67

 

 

$

1.55

 

 

$

0.84

 

Operating income

 

$

9.9

 

 

$

10.0

 

 

$

20.6

 

 

$

13.7

 

Operating income per share

 

$

0.72

 

 

$

0.72

 

 

$

1.49

 

 

$

0.98

 

Underwriting income, current accident year

 

$

3.5

 

 

$

3.7

 

 

$

8.7

 

 

$

3.2

 

Underwriting income

 

$

3.5

 

 

$

4.3

 

 

$

8.8

 

 

$

3.2

 

Gross written premiums

 

$

100.7

 

 

$

110.1

 

 

$

194.2

 

 

$

233.1

 

Investment income

 

$

15.3

 

 

$

13.2

 

 

$

29.8

 

 

$

25.2

 

Annualized investment return

 

 

5.0

%

 

 

2.8

%

 

 

5.2

%

 

 

4.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined ratio analysis:

 

 

 

 

 

 

 

 

 

 

 

 

Loss ratio

 

 

57.8

%

 

 

60.5

%

 

 

56.5

%

 

 

61.7

%

Expense ratio

 

 

38.8

%

 

 

36.4

%

 

 

39.2

%

 

 

37.3

%

Combined ratio

 

 

96.6

%

 

 

96.9

%

 

 

95.7

%

 

 

99.0

%

Combined ratio, current accident year

 

 

96.7

%

 

 

97.3

%

 

 

95.8

%

 

 

99.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Penn-America Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting income, current accident year

 

$

4.2

 

 

$

7.1

 

 

$

9.9

 

 

$

6.3

 

Underwriting income

 

$

4.7

 

 

$

6.1

 

 

$

10.3

 

 

$

3.0

 

Penn-America gross written premiums (1)

 

$

100.6

 

 

$

91.5

 

 

$

194.6

 

 

$

182.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined ratio analysis:

 

 

 

 

 

 

 

 

 

 

 

 

Loss ratio

 

 

57.2

%

 

 

56.6

%

 

 

56.0

%

 

 

60.9

%

Expense ratio

 

 

38.0

%

 

 

37.1

%

 

 

38.6

%

 

 

37.7

%

Combined ratio

 

 

95.2

%

 

 

93.7

%

 

 

94.6

%

 

 

98.6

%

Combined ratio, current accident year

 

 

95.7

%

 

 

92.6

%

 

 

94.8

%

 

 

96.8

%

 

 

As of June 30, 2024

 

 

As of March 31, 2024

 

 

As of December 31, 2023

Consolidated:

 

 

 

 

 

 

 

 

Book value per share

 

$

48.56

 

 

$

48.18

 

 

$

47.53

Book value per share plus cumulative dividends and excluding AOCI

 

$

56.58

 

 

$

56.00

 

 

$

55.22

Shareholders’ equity

 

$

667.5

 

 

$

659.5

 

 

$

648.8

Cash and invested assets

 

$

1,435.2

 

 

$

1,417.3

 

 

$

1,390.4

Shares Outstanding (in millions)

 

 

13.7

 

 

 

13.6

 

 

 

13.6

 

(1) Excludes $3.6 million and $8.2 million of gross written premiums in 2023 terminated programs for the three and six months ended June 30, 2023, respectively.

GLOBAL INDEMNITY GROUP, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars and shares in thousands, except per share data)

 

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

Gross written premiums

 

$

100,706

 

 

$

110,100

 

 

$

194,194

 

 

$

233,085

 

Net written premiums

 

$

97,751

 

 

$

105,996

 

 

$

189,836

 

 

$

221,857

 

 

 

 

 

 

 

 

 

 

Net earned premiums

 

$

92,814

 

 

$

129,156

 

 

$

189,393

 

 

$

269,228

 

Net investment income

 

 

15,311

 

 

 

13,216

 

 

 

29,831

 

 

 

25,224

 

Net realized investment gains (losses)

 

 

205

 

 

 

(761

)

 

 

1,052

 

 

 

(2,281

)

Other income

 

 

357

 

 

 

282

 

 

 

702

 

 

 

636

 

Total revenues

 

 

108,687

 

 

 

141,893

 

 

 

220,978

 

 

 

292,807

 

 

 

 

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

53,662

 

 

 

78,082

 

 

 

107,046

 

 

 

166,083

 

Acquisition costs and other underwriting expenses

 

 

35,968

 

 

 

47,101

 

 

 

74,237

 

 

 

100,579

 

Corporate and other operating expenses

 

 

6,366

 

 

 

4,990

 

 

 

12,739

 

 

 

11,358

 

Interest expense

 

 

17

 

 

 

12

 

 

 

17

 

 

 

12

 

Income before income taxes

 

 

12,674

 

 

 

11,708

 

 

 

26,939

 

 

 

14,775

 

Income tax expense

 

 

2,581

 

 

 

2,371

 

 

 

5,480

 

 

 

2,944

 

Net income

 

 

10,093

 

 

 

9,337

 

 

 

21,459

 

 

 

11,831

 

Less: Preferred stock distributions

 

 

110

 

 

 

110

 

 

 

220

 

 

 

220

 

Net income available to common shareholders

 

$

9,983

 

 

$

9,227

 

 

$

21,239

 

 

$

11,611

 

 

 

 

 

 

 

 

 

 

Per share data:

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

 

 

 

 

 

 

 

Basic

 

$

0.73

 

 

$

0.68

 

 

$

1.56

 

 

$

0.86

 

Diluted

 

$

0.73

 

 

$

0.67

 

 

$

1.55

 

 

$

0.84

 

Weighted-average number of shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

13,610

 

 

 

13,478

 

 

 

13,594

 

 

 

13,574

 

Diluted

 

 

13,678

 

 

 

13,708

 

 

 

13,659

 

 

 

13,794

 

 

 

 

 

 

 

 

 

 

Cash distributions declared per common share

 

$

0.35

 

 

$

0.25

 

 

$

0.70

 

 

$

0.50

 

 

 

 

 

 

 

 

 

 

Combined ratio analysis:

 

 

 

 

 

 

 

 

Loss ratio

 

 

57.8

%

 

 

60.5

%

 

 

56.5

%

 

 

61.7

%

Expense ratio

 

 

38.8

%

 

 

36.4

%

 

 

39.2

%

 

 

37.3

%

Combined ratio

 

 

96.6

%

 

 

96.9

%

 

 

95.7

%

 

 

99.0

%

 

GLOBAL INDEMNITY GROUP, LLC

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

 

 

 

(Unaudited) June 30, 2024

 

December 31, 2023

ASSETS

 

 

 

 

Fixed maturities:

 

 

 

 

Available for sale, at fair value (amortized cost: $1,362,384 and $1,322,092; net of allowance for expected credit losses of $0 at June 30, 2024 and December 31, 2023)

 

$

1,340,046

 

 

$

1,293,793

 

Equity securities, at fair value

 

 

14,657

 

 

 

16,508

 

Other invested assets

 

 

33,710

 

 

 

38,236

 

Total investments

 

 

1,388,413

 

 

 

1,348,537

 

 

 

 

 

 

Cash and cash equivalents

 

 

46,731

 

 

 

38,037

 

Premium receivables, net of allowance for expected credit losses of

 

 

 

 

$4,043 at June 30, 2024 and $4,796 at December 31, 2023

 

 

80,587

 

 

 

102,158

 

Reinsurance receivables, net of allowance for expected credit losses of

 

 

 

 

$8,992 at June 30, 2024 and December 31, 2023

 

 

75,643

 

 

 

80,439

 

Funds held by ceding insurers

 

 

27,114

 

 

 

16,989

 

Deferred federal income taxes

 

 

30,201

 

 

 

36,802

 

Deferred acquisition costs

 

 

41,109

 

 

 

42,445

 

Intangible assets

 

 

14,280

 

 

 

14,456

 

Goodwill

 

 

4,820

 

 

 

4,820

 

Prepaid reinsurance premiums

 

 

3,498

 

 

 

4,958

 

Receivable for securities

 

 

65

 

 

 

3,858

 

Federal income tax receivable

 

 

899

 

 

 

—

 

Lease right of use assets

 

 

8,978

 

 

 

9,715

 

Other assets

 

 

16,211

 

 

 

26,362

 

Total assets

 

$

1,738,549

 

 

$

1,729,576

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Liabilities:

 

 

 

 

Unpaid losses and loss adjustment expenses

 

$

844,206

 

 

$

850,599

 

Unearned premiums

 

 

181,834

 

 

 

182,852

 

Ceded balances payable

 

 

948

 

 

 

2,642

 

Federal income tax payable

 

 

—

 

 

 

1,595

 

Contingent commissions

 

 

3,599

 

 

 

5,632

 

Lease liabilities

 

 

11,448

 

 

 

12,733

 

Other liabilities

 

 

29,024

 

 

 

24,770

 

Total liabilities

 

$

1,071,059

 

 

$

1,080,823

 

 

 

 

 

 

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: 11,158,442 and 11,042,670, respectively;

 

 

 

 

class A common shares outstanding: 9,870,674 and 9,771,429, respectively;

 

 

 

 

class B common shares issued and outstanding: 3,793,612 and 3,793,612, respectively

 

 

—

 

 

 

—

 

Additional paid-in capital (1)

 

 

457,550

 

 

 

454,791

 

Accumulated other comprehensive income (loss), net of tax

 

 

(18,051

)

 

 

(22,863

)

Retained earnings (1)

 

 

256,683

 

 

 

244,988

 

Class A common shares in treasury, at cost: 1,287,768 and 1,271,241 shares, respectively

 

 

(32,692

)

 

 

(32,163

)

Total shareholders’ equity

 

 

667,490

 

 

 

648,753

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

1,738,549

 

 

$

1,729,576

 

 

(1) Since the Company’s initial public offering in 2003, the Company has returned $619 million to shareholders, including $522 million in share repurchases and $97 million in dividends/distributions.

Segment Data for the Six Months Ended June 30, 2024 and 2023

(Dollars in millions)

 

Underwriting Income for the Six Months Ended June 30,

   

 

 

Penn-America

 

Non-Core Operations

 

Consolidated

 

 

2024

 

2023

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

194.6

 

 

$

190.4

 

 

$

(0.4

)

 

$

42.7

 

 

$

194.2

 

 

$

233.1

 

Net written premiums

 

$

190.2

 

 

$

182.8

 

 

$

(0.4

)

 

$

39.1

 

 

$

189.8

 

 

$

221.9

 

Net earned premiums

 

$

178.5

 

 

$

183.3

 

 

$

10.9

 

 

$

85.9

 

 

$

189.4

 

 

$

269.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting income (loss), current accident year

 

$

9.9

 

 

$

6.3

 

 

$

(1.2

)

 

$

(3.1

)

 

$

8.7

 

 

$

3.2

 

Underwriting income (loss)

 

$

10.3

 

 

$

3.0

 

 

$

(1.5

)

 

$

0.2

 

 

$

8.8

 

 

$

3.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined ratio analysis:

 

 

 

 

 

 

 

 

 

 

 

 

Loss ratio

 

 

 

 

 

 

 

 

 

 

 

 

Current accident year

 

 

56.3

%

 

 

59.3

%

 

 

61.1

%

 

 

66.8

%

 

 

56.6

%

 

 

61.7

%

Prior accident year

 

 

(0.3

%)

 

 

1.6

%

 

 

3.2

%

 

 

(3.5

%)

 

 

(0.1

%)

 

 

0.0

%

Calendar year loss ratio

 

 

56.0

%

 

 

60.9

%

 

 

64.3

%

 

 

63.3

%

 

 

56.5

%

 

 

61.7

%

Expense ratio

 

 

38.6

%

 

 

37.7

%

 

 

49.6

%

 

 

36.6

%

 

 

39.2

%

 

 

37.3

%

Combined ratio

 

 

94.6

%

 

 

98.6

%

 

 

113.9

%

 

 

99.9

%

 

 

95.7

%

 

 

99.0

%

Combined ratio, current accident year

 

 

94.8

%

 

 

96.8

%

 

 

110.7

%

 

 

103.8

%

 

 

95.8

%

 

 

99.1

%

 

Gross Written Premiums for the Six Months Ended June 30,

 

 

 

2024

2023

 

% Change

Penn-America:

 

 

 

 

 

Wholesale Commercial

 

$

124.9

 

$

121.0

 

3

%

InsurTech

 

 

26.3

 

 

22.3

 

18

%

Assumed Reinsurance

 

 

9.4

 

 

4.2

 

123

%

 

 

 

160.6

 

 

147.5

 

9

%

Programs

 

 

34.0

 

 

42.9

 

(21

%)

Penn-America

 

 

194.6

 

 

190.4

 

2

%

Non-Core Operations

 

 

(0.4

)

 

42.7

 

(101

%)

Total

 

$

194.2

 

$

233.1

 

(17

%)

 

GLOBAL INDEMNITY GROUP, LLC

SELECTED INVESTMENT DATA

(Dollars in millions)

 

 

 

Market Value as of

 

 

(Unaudited) June 30, 2024

 

 

December 31, 2023

 

 

 

 

 

 

Fixed maturities

 

$

1,340.0

 

 

$

1,293.8

Cash and cash equivalents

 

 

46.7

 

 

 

38.0

Total bonds and cash and cash equivalents

 

 

1,386.7

 

 

 

1,331.8

Equities and other invested assets

 

 

48.4

 

 

 

54.7

Total cash and invested assets, gross

 

 

1,435.1

 

 

 

1,386.5

Receivable for securities

 

 

0.1

 

 

 

3.9

Total cash and invested assets, net

 

$

1,435.2

 

 

$

1,390.4

 

 

 

Total Pre-Tax Investment Return

 

 

For the Three Months Ended June 30, (Unaudited)

 

For the Six Months Ended June 30, (Unaudited)

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Net investment income

 

$

15.3

 

 

$

13.2

 

 

$

29.8

 

 

$

25.2

 

 

 

 

 

 

 

 

 

 

Net realized investment gains (losses)

 

 

0.2

 

 

 

(0.8

)

 

 

1.1

 

 

 

(2.3

)

Net unrealized investment gains (losses)

 

 

2.4

 

 

 

(3.1

)

 

 

5.9

 

 

 

7.4

 

Net realized and unrealized investment return

 

 

2.6

 

 

 

(3.9

)

 

 

7.0

 

 

 

5.1

 

 

 

 

 

 

 

 

 

 

Total investment return

 

$

17.9

 

 

$

9.3

 

 

$

36.8

 

 

$

30.3

 

 

 

 

 

 

 

 

 

 

Average total cash and invested assets

 

$

1,426.3

 

 

$

1,345.2

 

 

$

1,412.8

 

 

$

1,343.0

 

 

 

 

 

 

 

 

 

 

Total annualized investment return %

 

 

5.0

%

 

 

2.8

%

 

 

5.2

%

 

 

4.5

%

 

SUMMARY OF OPERATING INCOME

(Dollars and shares in thousands, except per share data)

 

 

 

For the Three Months Ended June 30,

(Unaudited)

 

For the Six Months Ended June 30,

(Unaudited)

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Operating income, net of tax (1)

 

$

9,935

 

$

9,976

 

 

$

20,628

 

$

13,692

 

 

 

 

 

 

 

 

 

 

Net realized investment gains (losses)

 

 

158

 

 

(639

)

 

 

831

 

 

(1,861

)

Net income

 

$

10,093

 

$

9,337

 

 

$

21,459

 

$

11,831

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – diluted

 

 

13,678

 

 

13,708

 

 

 

13,659

 

 

13,794

 

 

 

 

 

 

 

 

 

 

Operating income per share – diluted (2)

 

$

0.72

 

$

0.72

 

 

$

1.49

 

$

0.98

 

 

(1) Operating income, net of tax, excludes preferred shareholder distributions of $0.1 million for each of the three months ended June 30, 2024 and 2023 and $0.2 million for each of the six months ended June 30, 2024 and 2023.

(2) The operating income per share calculation is net of preferred shareholder distributions of $0.1 million for each of the three months ended June 30, 2024 and 2023 and $0.2 million for each of the six months ended June 30, 2024 and 2023.

Note Regarding Operating Income

Operating income, a non-GAAP financial measure, is equal to net income excluding after-tax net realized investment gains (losses) and other unique charges not related to operations. Operating income is not a substitute for net income determined in accordance with GAAP, and investors should not place undue reliance on this measure.

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. The insurance companies manage the distribution of the Company's core product offerings through Penn-America. The Company also has a Non-Core Operations segment that contains lines of business that have been de-emphasized or are no longer being written.

For more information, visit the Company’s website at www.gbli.com.

Forward-Looking Information

The forward-looking statements contained in this press release3 do not address a number of risks and uncertainties. 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/20240805496163/en/

Stephen W. Ries Head of Investor Relations (610) 668-3270 sries@gbli.com