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Global Indemnity Group, LLC Reports Second Quarter 2022 Results

  • Farm, Ranch and Stable renewal rights sold for $30.0 million to Everett Cash Mutual to reinsure 100% of the business effective August 8, 2022. Everett Cash Mutual will also purchase American Reliable for book value which is expected to be $10 million at the time of close, which, subject to regulatory approvals and customary closing conditions, is expected to close in or before the first quarter of 2023. Farm, Ranch and Stable is now included in Exited Lines.

  • Growth in Gross Written Premium - An increase of 26.1% and 28.4% in gross written premiums for Continuing Lines for the three and six months ended June 30, 2022, respectively, compared to the corresponding periods in 2021.

  • The combined ratio for Continuing Lines was 95.4% for the six months ended June 30, 2022 (Loss Ratio 58.4% and Expense Ratio 37.0%).

  • Lower Catastrophes – Catastrophe losses for Continuing Lines were $5.4 million in 2022 compared to $11.6 million in 2021.

  • Investment income for the three and six months ended June 30, 2022, was $1.9 million and $8.5 million, respectively, compared to $10.6 million and $20.5 million for the three and six months ended June 30, 2021. One alternative investment negatively impacted investment income $6.0 million and $7.2 million for the three months and six months ended 2022, respectively, compared to the corresponding periods in 2021. This investment was exited early in the third quarter of 2022.

  • On April 15, 2022, the Company prepaid its remaining $130 million of outstanding debt, resulting in a $3.5 million write off of deferred debt costs.

  • Global Indemnity continued to reduce the duration of its fixed income portfolio in response to rising interest rates. The Company has sold approximately $360 million of fixed income securities with maturities of 5 years and greater that had an average yield of 2.3%. These securities were redeployed into corporate and securitized investments. Duration at June 30, 2022 was to 1.7 years compared to duration of 3.0 at December 31, 2021 and book yield on the portfolio increased from 2.2% at December 31, 2021 to 2.7% at June 30, 2022. In reducing duration and increasing yield, GBLI realized losses of $9.9 million for the second quarter of 2022 and realized losses of $35.3 million for the six months ended June 30, 2022.

  • Primarily as a result of substantially shortening the duration of the Company’s fixed income securities in its investment portfolio, the impact of an alternative investment, and the write off related to debt redemption, the Company generated a net loss to shareholders of $12.3 million, or $0.84 per share, for the three months ended June 30, 2022, compared to net income available to shareholders of $6.3 million, or $0.43 per share, for the corresponding period in 2021. Net loss for the six months ended June 30, 2022, was $27.2 million, or $1.87 per share, compared to net income available to shareholders of $11.7 million, or $0.80 per share, for the corresponding period in 2021.

  • Book value decreased $65.3 million from $706.6 million at December 31, 2021 to $641.3 million at June 30, 2022. Book value per share decreased $4.76 from $48.44 at December 31, 2021 to $43.68 at June 30, 2022.

BALA CYNWYD, Pa., August 09, 2022—(BUSINESS WIRE)—Global Indemnity Group, LLC (NYSE:GBLI) (the "Company") today reported adjusted operating income, which excludes realized gains and losses, the results of Exited Lines and the loss on the extinguishment of debt, of $7.3 million for the six months ended June 30, 2022, compared to $11.4 million for the corresponding period in 2021. Adjusted operating income, was $1.8 million for the three months ended June 30, 2022, compared to $8.7 million for the corresponding period in 2021. Net loss available to shareholders for the six months ended June 30, 2022, was $27.2 million compared to net income available to shareholders of $11.7 million for the corresponding period in 2021. Net loss available to shareholders for the three months ended June 30, 2022 was $12.3 million, compared to net income available to shareholders of $6.3 million for the corresponding period in 2021.

Selected Operating and Balance Sheet
(Dollars in millions, except per share data)

For the Three MonthsEnded June 30,

For the Six MonthsEnded June 30,

2022

2021

2022

2021

Gross Written Premiums

$

196.8

$

175.2

$

387.8

$

338.8

Net Written Premiums

$

167.2

$

160.7

$

326.6

$

308.3

Net Earned Premiums

$

155.7

$

149.4

$

304.6

$

293.1

Net income (loss) available to shareholders

$

(12.3

)

$

6.3

$

(27.2

)

$

11.7

Net income (loss) from Continuing Lines

$

(9.7

)

$

13.7

$

(24.8

)

$

20.8

$

(2.6

)

$

(7.4

)

$

(2.4

)

$

(9.1

)

Net income (loss) available to shareholders per share

$

(0.84

)

$

0.43

$

(1.87

)

$

0.80

Adjusted operating income

$

1.8

$

8.7

$

7.3

$

11.4

Adjusted operating income per share

$

0.12

$

0.58

$

0.48

$

0.76

Combined ratio analysis:

Loss ratio

59.5

%

60.9

%

58.2

%

62.0

%

Expense ratio

39.2

%

38.3

%

38.7

%

38.2

%

Combined ratio

98.7

%

99.2

%

96.9

%

100.2

%

(1)

Underwriting income (loss) from Exited Lines, net of tax.

As ofJune 30,2022

As ofMarch 31,2022

As ofDecember 31,2021

Book value per share (1)

$

43.68

$

45.78

$

48.44

Shareholders’ equity (2)

$

641.3

$

669.7

$

706.6

Cash and invested assets (3)

$

1,326.5

$

1,464.6

$

1,532.0

(1)

Net of cumulative Company distributions/dividends to common shareholders totaling $4.50 per share, $4.25 per share and $4.00 per share as of June 30, 2022, March 31, 2022 and December 31, 2021, respectively.

(2)

Shareholders’ equity includes $4 million of series A cumulative fixed rate preferred shares.

(3)

Including receivable/(payable) for securities sold/(purchased).

Global Indemnity Group, LLC’s Business Segment Information for the Three and Six Months Ended June 30, 2022 and 2021

For the Three Months Ended June 30, 2022


ContinuingLines

ExitedLines

Total

Revenues:

Gross written premiums

$

156,191

$

40,632

$

196,823

Net written premiums

$

147,565

$

19,593

$

167,158

Net earned premiums

$

133,768

$

21,981

$

155,749

Other income (loss)

199

(25

)

174

Total revenues

133,967

21,956

155,923

Losses and Expenses:

Net losses and loss adjustment expenses

78,523

14,095

92,618

Acquisition costs and other underwriting expenses

50,591

10,507

61,098

Income (loss) from segments

$

4,853

$

(2,646

)

$

2,207

Combined ratio analysis:

Loss ratio

58.7

%

64.1

%

59.5

%

Expense ratio

37.8

%

47.8

%

39.2

%

Combined ratio

96.5

%

111.9

%

98.7

%

For the Three Months Ended June 30, 2021


ContinuingLines

ExitedLines

Total

Revenues:

Gross written premiums

$

123,893

$

51,343

$

175,236

Net written premiums

$

116,134

$

44,519

$

160,653

Net earned premiums

$

100,026

$

49,382

$

149,408

Other income

222

290

512

Total revenues

100,248

49,672

149,920

Losses and Expenses:

Net losses and loss adjustment expenses

54,269

36,669

90,938

Acquisition costs and other underwriting expenses

36,775

20,438

57,213

Income (loss) from segments

$

9,204

$

(7,435

)

$

1,769

Combined ratio analysis:

Loss ratio

54.3

%

74.2

%

60.9

%

Expense ratio

36.8

%

41.4

%

38.3

%

Combined ratio

91.1

%

115.6

%

99.2

%

For the Six Months Ended June 30, 2022


ContinuingLines

ExitedLines

Total

Revenues:

Gross written premiums

$

301,902

$

85,904

$

387,806

Net written premiums

$

287,323

$

39,317

$

326,640

Net earned premiums

$

260,494

$

44,078

$

304,572

Other income

438

175

613

Total revenues

260,932

44,253

305,185

Losses and Expenses:

Net losses and loss adjustment expenses

152,033

25,280

177,313

Acquisition costs and other underwriting expenses

96,457

21,333

117,790

Income (loss) from segments

$

12,442

$

(2,360

)

$

10,082

Combined ratio analysis:

Loss ratio

58.4

%

57.4

%

58.2

%

Expense ratio

37.0

%

48.4

%

38.7

%

Combined ratio

95.4

%

105.8

%

96.9

%

For the Six Months Ended June 30, 2021


ContinuingLines

ExitedLines

Total

Revenues:

Gross written premiums

$

235,178

$

103,616

$

338,794

Net written premiums

$

220,257

$

88,079

$

308,336

Net earned premiums

$

195,516

$

97,592

$

293,108

Other income

410

510

920

Total revenues

195,926

98,102

294,028

Losses and Expenses:

Net losses and loss adjustment expenses

114,934

66,787

181,721

Acquisition costs and other underwriting expenses

71,606

40,371

111,977

Income (loss) from segments

$

9,386

$

(9,056

)

$

330

Combined ratio analysis:

Loss ratio

58.8

%

68.4

%

62.0

%

Expense ratio

36.6

%

41.4

%

38.2

%

Combined ratio

95.4

%

109.8

%

100.2

%

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 release1 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.

[1] Disseminated pursuant to the "safe harbor" provisions of Section 21E of the Security Exchange Act of 1934.

Selected Financial Data for the Three Months Ended June 30, 2022:

  • Gross written premiums, net written premiums, and net earned premiums excluding the Exited Lines (“Continuing Lines”), increased 26.1%, 27.1% and 33.7%, respectively. Consolidated gross written premiums, net written premiums, and net earned premiums increased 12.3%, 4.0%, and 4.2%, respectively.

  • Underwriting income/(loss) – For the Continuing Lines business, underwriting income was $4.9 million in 2022 compared to $9.2 million in 2021.

    • Excluding prior year development, underwriting income (loss) from Continuing Lines was $3.9 million compared to $8.7 million in 2021.

    • Consolidated underwriting income / (loss) was $2.2 million in 2022 compared to $1.8 million in 2021.

  • Investment income – $1.9 million in 2022 compared to $10.6 million in 2021. The decrease was primarily due to decreased returns from alternative investments and a decrease in dividend income as a result of the liquidation of the Company’s common stock portfolio during the first quarter of 2022.

  • Realized gains/(losses) – ($9.9) million in 2022 compared to $3.8 million in 2021. Realized losses in 2022 were primarily due to the Company selling certain securities to offset anticipated rising interest rates by shortening duration and accelerating future maturities.

  • Book value per share – Decrease of $2.10 per share mainly due to rising interest rates. In addition to realized losses, shareholders’ equity includes $13.9 million of net after-tax unrealized losses.

  • Tax expense/(benefit) – ($0.6) million tax benefit in 2022 compared to $0.8 million tax expense in 2021.

Selected Financial Data for the Six Months Ended June 30, 2022:

  • Gross written premiums, net written premiums, and net earned premiums excluding the Exited Lines (“Continuing Lines”), increased 28.4%, 30.4% and 33.2%, respectively. Consolidated gross written premiums, net written premiums, and net earned premiums increased 14.5%, 5.9%, and 3.9%, respectively.

  • Underwriting income/(loss) – For the Continuing Lines business, underwriting income (loss) was $12.4 million in 2022 compared to $9.4 million in 2021.

    • Excluding prior year development, underwriting income (loss) from Continuing Lines was $11.8 million compared to $6.2 million in 2021.

    • Consolidated underwriting income was $10.1 million in 2022 compared to $0.3 million in 2021.

  • Investment income – $8.5 million in 2022 compared to $20.5 million in 2021. The decrease was primarily due to decreased returns from alternative investments and a decrease in dividend income as a result of the liquidation of the Company’s common stock portfolio during the first quarter of 2022.

  • Realized gains/(losses) – ($35.3) million in 2022 compared to $7.7 million in 2021. Realized losses in 2022 were primarily due to the Company selling certain securities to offset anticipated rising interest rates by shortening duration and accelerating future maturities.

  • Book value per share – Decrease of $4.76 per share mainly due to rising interest rates. In addition to realized losses, shareholders’ equity includes $33.0 million of net after-tax unrealized losses.

  • Tax expense/(benefit)– ($4.0) million tax benefit in 2022 compared to $0.6 million tax expense in 2021.

Global Indemnity Group, LLC’s Gross Written and Net Written Premiums Results by Segment for the Three and Six Months Ended June 30, 2022 and 2021

Three Months Ended June 30,

Gross Written Premiums

Net Written Premiums

2022

2021

%Change

2022

2021

%Change

Commercial Specialty

$

109,797

$

99,406

10.5

%

$

101,171

$

91,647

10.4

%

Reinsurance Operations

46,394

24,487

89.5

%

46,394

24,487

89.5

%

Continuing Lines

156,191

123,893

26.1

%

147,565

116,134

27.1

%

Exited Lines

40,632

51,343

(20.9

%)

19,593

44,519

(56.0

%)

Total

$

196,823

$

175,236

12.3

%

$

167,158

$

160,653

4.0

%

Six Months Ended June 30,

Gross Written Premiums

Net Written Premiums

2022

2021

%Change

2022

2021

%Change

Commercial Specialty

$

214,063

$

188,740

13.4

%

$

199,484

$

173,819

14.8

%

Reinsurance Operations

87,839

46,438

89.2

%

87,839

46,438

89.2

%

Continuing Lines

301,902

235,178

28.4

%

287,323

220,257

30.4

%

Exited Lines

85,904

103,616

(17.1

%)

39,317

88,079

(55.4

%)

Total

$

387,806

$

338,794

14.5

%

$

326,640

$

308,336

5.9

%

Commercial Specialty: Gross written premiums and net written premiums increased 10.5% and 10.4%, respectively, for the three months ended June 30, 2022 as compared to the same period in 2021. Gross written premiums and net written premiums increased 13.4% and 14.8%, respectively, for the six months ended June 30, 2022 as compared to the same period in 2021. The growth in gross written premiums and net written premiums was primarily driven by organic growth in existing programs, increased pricing, and several new programs.

Reinsurance Operations: Gross written premiums and net written premiums both increased 89.5% for the three months ended June 30, 2022 as compared to the same period in 2021. Gross written premiums and net written premiums both increased 89.2% for the six months ended June 30, 2022 as compared to the same period in 2021. The growth in gross written premiums and net written premiums was primarily due to organic growth of existing casualty treaties.

Exited Lines: Gross written premiums and net written premiums decreased 20.9% and 56.0%, respectively, for the three months ended June 30, 2022 as compared to the same period in 2021. Gross written premiums and net written premiums decreased 17.1% and 55.4%, respectively, for the six months ended June 30, 2022 as compared to the same period in 2021. The decrease in gross written premiums and net written premiums was primarily due to exiting lines of business unrelated to the Company’s continuing businesses.

Global Indemnity Group, LLC’s Combined Ratio for the Three and Six Months Ended June 30, 2022 and 2021

For the Continuing Lines business, the combined ratio was 96.5% for the three months ended June 30, 2022, (Loss Ratio 58.7% and Expense Ratio 37.8%) as compared to 91.1% (Loss Ratio 54.3% and Expense Ratio 36.8%) for the three months ended June 30, 2021. The consolidated combined ratio was 98.7% for the three months ended June 30, 2022, (Loss Ratio 59.5% and Expense Ratio 39.2%) as compared to 99.2% (Loss Ratio 60.9% and Expense Ratio 38.3%) for the three months ended June 30, 2021.

  • For the continuing lines business, the accident year casualty loss ratio increased by 0.6 points to 60.0% in 2022 from 59.4% in 2021. The consolidated accident year casualty loss ratio increased by 0.2 points to 59.1% in 2022 from 58.9% in 2021. This increase in the continuing lines and the consolidated accident year casualty loss ratio is primarily due to a change in the mix of business.

  • For the continuing lines business, the accident year property loss ratio increased by 11.6 points to 57.9% in 2022 from 46.3% in 2021. The consolidated accident year property loss ratio increased by 11.2 points to 66.8% in 2022 from 55.6% in 2021. The increase in the continuing lines and the consolidated accident year property loss ratio is primarily due to higher non-catastrophe claims severity.

For the Continuing Lines business, the combined ratio was 95.4% for the six months ended June 30, 2022, (Loss Ratio 58.4% and Expense Ratio 37.0%) as compared to 95.4% (Loss Ratio 58.8% and Expense Ratio 36.6%) for the six months ended June 30, 2021. The consolidated combined ratio was 96.9% for the six months ended June 30, 2022, (Loss Ratio 58.2% and Expense Ratio 38.7%) as compared to 100.2% (Loss Ratio 62.0% and Expense Ratio 38.2%) for the six months ended June 30, 2021.

  • For the continuing lines business, the accident year casualty loss ratio increased by 0.5 points to 59.3% in 2022 from 58.8% in 2021. The consolidated accident year casualty loss ratio increased by 0.5 points to 58.8% in 2022 from 58.3% in 2021. This increase in the continuing lines and the consolidated accident year casualty loss ratio is primarily due to a change in the mix of business.

  • For the continuing lines business, the accident year property loss ratio improved by 6.2 points to 56.9% in 2022 from 63.1% in 2021. The consolidated accident year property loss ratio improved by 0.6 points to 63.3% in 2022 from 63.9% in 2021. The improvement in the continuing lines and the consolidated accident year property loss ratio is primarily due to lower catastrophe claims frequency.

GLOBAL INDEMNITY GROUP, LLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars and shares in thousands, except per share data)

For the Three MonthsEnded June 30,

For the Six MonthsEnded June 30,

2022

2021

2022

2021

Gross written premiums

$

196,823

$

175,236

$

387,806

$

338,794

Ceded written premiums

(29,665

)

(14,583

)

(61,166

)

(30,458

)

Net written premiums

$

167,158

$

160,653

$

326,640

$

308,336

Net earned premiums

$

155,749

$

149,408

$

304,572

$

293,108

Net investment income

1,930

10,633

8,522

20,469

Net realized investment gains (losses)

(9,916

)

3,833

(35,301

)

7,652

Other income

97

521

523

898

Total revenues

147,860

164,395

278,316

322,127

Net losses and loss adjustment expenses

92,618

90,938

177,313

181,721

Acquisition costs and other underwriting expenses

61,098

57,213

117,790

111,977

Corporate and other operating expenses

2,993

6,329

7,653

10,605

Interest expense

410

2,696

3,005

5,291

Loss on extinguishment of debt

3,529

-

3,529

-

Income (loss) before income taxes

(12,788

)

7,219

(30,974

)

12,533

Income tax expense (benefit)

(626

)

844

(4,039

)

641

Net income (loss)

(12,162

)

6,375

(26,935

)

11,892

Less: Preferred stock distributions

110

110

220

220

Net income (loss) available to common shareholders

$

(12,272

)

$

6,265

$

(27,155

)

$

11,672

Per share data:

Net income (loss) available to common shareholders

Basic

$

(0.84

)

$

0.43

$

(1.87

)

$

0.81

Diluted (1)

$

(0.84

)

$

0.43

$

(1.87

)

$

0.80

Weighted-average number of shares outstanding

Basic

14,543

14,412

14,529

14,397

Diluted (1)

14,543

14,682

14,529

14,651

Cash distributions declared per common share

$

0.25

$

0.25

$

0.50

$

0.50

Combined ratio analysis: (2)

Loss ratio

59.5

%

60.9

%

58.2

%

62.0

%

Expense ratio

39.2

%

38.3

%

38.7

%

38.2

%

Combined ratio

98.7

%

99.2

%

96.9

%

100.2

%

(1)

For the three and six months ended June 30, 2022, “weighted-average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for each 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)

ASSETS

(Unaudited)June 30, 2022

December 31, 2021

Fixed Maturities:

Available for sale, at fair value (amortized cost: 2022 - $1,151,195 and 2021 - $1,193,746; net of allowance for expected credit losses of: $0 in 2022 and 2021)

$

1,118,129

$

1,201,866

Equity securities, at fair value

17,870

99,978

Other invested assets

140,197

152,651

Total investments

1,276,196

1,454,495

Cash and cash equivalents

59,842

78,278

Premium receivables, net of allowance for expected credit losses of $2,919 at June 30, 2022 and $2,996 at December 31, 2021

161,959

128,444

Reinsurance receivables, net of allowance for expected credit losses of $8,992 at June 30, 2022 and December 31, 2021

104,064

99,864

Funds held by ceding insurers

23,906

27,958

Deferred federal income taxes

49,671

37,329

Deferred acquisition costs

70,089

60,331

Intangible assets

20,068

20,261

Goodwill

5,398

5,398

Prepaid reinsurance premiums

51,538

53,494

Lease right of use assets

15,040

16,051

Other assets

24,008

30,906

Total assets

$

1,861,779

$

2,012,809

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities:

Unpaid losses and loss adjustment expenses

$

804,661

$

759,904

Unearned premiums

336,677

316,566

Ceded balances payable

14,755

35,340

Payable for securities purchased

9,564

794

Contingent commissions

6,328

7,903

Debt

-

126,430

Lease liabilities

17,912

19,079

Other liabilities

30,602

40,172

Total liabilities

1,220,499

1,306,188

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 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: 10,675,757 and 10,574,589, respectively; class A common shares outstanding: 10,642,307 and 10,557,093, respectively; class B common shares issued and outstanding: 3,947,206 and 3,947,206, respectively

-

-

Additional paid-in capital (1)

450,052

447,406

Accumulated other comprehensive income, net of taxes

(26,625

)

6,404

Retained earnings (1)

214,757

249,301

Class A common shares in treasury, at cost: 33,450 and 17,496 shares, respectively

(904

)

(490

)

Total shareholders’ equity

641,280

706,621

Total liabilities and shareholders’ equity

$

1,861,779

$

2,012,809

(1)

Since the Company’s initial public offering in 2003, the Company has returned $554 million to shareholders, including $488 million in share repurchases and $66 million in dividends/distributions.

GLOBAL INDEMNITY GROUP, LLC
SELECTED INVESTMENT DATA
(Dollars in millions)

Market Value as of

(Unaudited)June 30, 2022

December 31, 2021

Fixed maturities

$

1,118.1

$

1,201.9

Cash and cash equivalents

59.8

78.3

Total bonds and cash and cash equivalents

1,177.9

1,280.2

Equities and other invested assets

158.1

252.6

Total cash and invested assets, gross

1,336.0

1,532.8

Payable for securities purchased

(9.5

)

(0.8

)

Total cash and invested assets, net

$

1,326.5

$

1,532.0

Total Investment Return (1)

For the Three MonthsEnded June 30,(unaudited)

For the Six MonthsEnded June 30,(unaudited)

2022

2021

2022

2021

Net investment income

$

1.9

$

10.6

$

8.5

$

20.4

Net realized investment gains (losses)

(9.9

)

3.8

(35.3

)

7.7

Net unrealized investment gains (losses)

(17.5

)

11.3

(41.3

)

(18.9

)

Net realized and unrealized investment return

(27.4

)

15.1

(76.6

)

(11.2

)

Total investment return

$

(25.5

)

$

25.7

$

(68.1

)

$

9.2

Average total cash and invested assets

$

1,395.5

$

1,452.8

$

1,429.2

$

1,463.0

Total investment return %

(1.8

%)

1.8

%

(4.8

%)

0.6

%

(1)

Amounts in this table are shown on a pre-tax basis.

GLOBAL INDEMNITY GROUP, LLC
SUMMARY OF ADJUSTED OPERATING INCOME
(Unaudited)
(Dollars and shares in thousands, except per share data)

For the Three MonthsEnded June 30,

For the Six MonthsEnded June 30,

2022

2021

2022

2021

Adjusted operating income, net of tax

$

1,827

$

8,686

$

7,257

$

11,419

Adjustments:

Underwriting loss from Exited Lines, net of tax

(2,090

)

(5,874

)

(1,864

)

(7,154

)

Adjusted operating income (loss) including Exited Lines, net of tax (1)

(263

)

2,812

5,393

4,265

Net realized investment gains (losses)

(8,370

)

3,563

(28,799

)

7,627

Loss on extinguishment of debt

(3,529

)

-

(3,529

)

-

Net income (loss)

$

(12,162

)

$

6,375

$

(26,935

)

$

11,892

Weighted average shares outstanding – basic

14,543

14,412

14,529

14,397

Weighted average shares outstanding – diluted

14,749

14,682

14,728

14,651

(2)

$

0.12

$

0.60

$

0.48

$

0.78

(2)

$

0.12

$

0.58

$

0.48

$

0.76

(1)

Adjusted operating income (loss) including Exited Lines, net of tax, excludes preferred shareholder distributions of $0.11 million for both the three months ended June 30, 2022 and 2021 and $0.22 million for both the six months ended June 30, 2022 and 2021.

(2)

The adjusted operating income (loss) per share calculation is net of preferred shareholder distributions of $0.11 million for both the three months ended June 30, 2022 and 2021 and $0.22 million for both the six months ended June 30, 2022 and 2021.

Note Regarding Adjusted Operating Income

Adjusted operating income, 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 is not a substitute for net income (loss) determined in accordance with GAAP, and investors should not place undue reliance on this measure.

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