Global Indemnity Group, LLC Reports Second Quarter 2023 Results

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WILMINGTON, Del., August 08, 2023--(BUSINESS WIRE)--Global Indemnity Group, LLC (NYSE:GBLI) (the "Company") today reported net income available to shareholders for the six months ended June 30, 2023, of $11.6 million compared to net loss available to shareholders of $27.2 million for the corresponding period in 2022. Net income available to shareholders for the three months ended June 30, 2023 was $9.2 million, compared to net loss available to shareholders of $12.3 million for the corresponding period in 2022. Adjusted operating income, which excludes realized gains and losses and the results of Exited Lines, was $10.3 million for the six months ended June 30, 2023, compared to $8.0 million for the six months ended June 30, 2022. Adjusted operating income was $6.9 million for the three months ended June 30, 2023, compared to $4.2 million 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
June 30,

For the Six Months Ended
June 30,

2023

2022

2023

2022

Gross Written Premiums

$

110.1

$

196.8

$

233.1

$

387.8

Net Written Premiums

$

106.0

$

167.2

$

221.9

$

326.6

Net Earned Premiums

$

129.2

$

155.7

$

269.2

$

304.6

Net income (loss) available to shareholders

$

9.2

$

(12.3

)

$

11.6

$

(27.2

)

Net income (loss) from Continuing Lines

$

6.1

$

(7.9

)

$

8.2

$

(24.6

)

Net income (loss) from Exited Lines (1)

$

3.1

$

(4.4

)

$

3.4

$

(2.6

)

Net income (loss) available to shareholders per share

$

0.67

$

(0.84

)

$

0.84

$

(1.87

)

Adjusted operating income

$

6.9

$

4.2

$

10.3

$

8.0

Adjusted operating income per share

$

0.50

$

0.28

$

0.73

$

0.53

Combined ratio analysis:

Loss ratio

60.5

%

59.5

%

61.7

%

58.2

%

Expense ratio

36.5

%

39.2

%

37.4

%

38.7

%

Combined ratio

97.0

%

98.7

%

99.1

%

96.9

%

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

As of
June 30,
2023

As of
March 31,
2023

As of
December 31,
2022

Book value per share (1)

$

46.03

$

45.68

$

44.87

Book value per share plus cumulative dividends and excluding AOCI

$

54.28

$

53.46

$

52.98

Shareholders’ equity (2)

$

626.4

$

628.2

$

626.2

Cash and invested assets (3)

$

1,343.4

$

1,347.1

$

1,342.6

Shares Outstanding (in millions)

13.5

13.7

13.9

(1) Net of cumulative Company distributions to common shareholders totaling $5.50 per share, $5.25 per share and $5.00 per share as of June 30, 2023, March 31, 2023, and December 31, 2022, respectively.

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

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

Business Highlights

  • Underwriting income was $4.3 million for the three months ended June 30, 2023 compared to $2.1 million for the same period in 2022 and $3.2 million for the six months ended June 30, 2023 compared to $10.0 million for the same period in 2022. The Company's underwriting results for the second quarter of 2023 significantly improved from the first quarter of 2023. In particular, Commercial Specialty's accident year loss ratio, which was 62.9% for the first three months of 2023 due to fire losses in vacant properties, improved to 57.5%.

  • 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 13.0% to $62.6 million for the three months ended June 30, 2023 from $55.4 million for the same period in 2022 and increased 15.7% to $119.9 million for the six months ended June 30, 2023 from $103.7 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 28.4% to $32.6 million for the three months ended June 30, 2023 from $45.5 million for the same period in 2022 and decreased 19.6% to $69.3 million for the six months ended June 30, 2023 from $86.2 million for the same period in 2022 driven by 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 casualty loss ratios of 54.6% and 55.4% for the three and six months ended June 30, 2023, respectively, which are 2.9 points and 1.5 points, respectively, lower than the same periods in 2022. The average accident year gross casualty loss ratio over the past five years was 55.2.

    • Commercial Specialty incurred accident year gross property loss ratios of 54.6% and 60.0% for the three and six months ended June 30, 2023, respectively, which are 2.3 points and 7.3 points, respectively, higher than the same periods in 2022. The average accident year gross property loss ratio over the past five years was 53.0.

      • The severity of property losses has been much lower in the three months ended June 30, 2023 than the losses experienced in the first three months of 2023 which were impacted by fire losses in vacant commercial buildings. The accident year gross property loss ratio improved by 10.6 points from March 2023.

      • Catastrophe losses were $4.1 million or 4.4% of net earned property premium in the three months ended June 30, 2023 compared to $3.1 million or 3.2% of net earned property premium in the same period in 2022.

  • Net investment income increased to $13.2 million for the three months ended June 30, 2023 from $1.9 million for the three months ended June 30, 2022 and increased to $25.2 million for the six months ended June 30, 2023 from $8.5 million for the six months ended June 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 65% increase in book yield over time on the fixed income portfolio to 3.8% at June 30, 2023 from 2.3% at March 31, 2022, while the average duration of these securities was shortened to 1.4 years at June 30, 2023 from 3.3 years at March 31, 2022.

    • Approximately $900 million of cash flow, or 70%, of the Company’s fixed income portfolio, will be generated from maturities and investment income between June 30, 2023 and December 31, 2023, positioning the Company to continue to increase book yield by investing maturities in higher yielding bonds.

  • The Company renewed its property catastrophe excess of loss reinsurance treaty on June 1, 2023 at a cost reduction of 49% compared to the prior year. This decline in the Company’s cost of reinsurance is due largely to the Company’s reduction in its probable maximum loss from natural catastrophes of approximately 75% over the last 5 years and by 40% over the past year, which allowed less limit to be purchased, and increasing retention from $15 million to $25 million.

  • Book value per share increased $1.16 per share, or 2.6%, to $46.03 at June 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 $2.9 million for the three months ended June 30, 2022 and $1.1 million and $6.0 million for the six months ended June 30, 2023 and 2022, respectively, in habitational lines in New York City and (ii) terminated gross written premiums within Targeted Specialty E&S of $0.2 million and $1.3 million for the three months ended June 30, 2023 and 2022, respectively, and $0.6 million and $12.0 million for the six months ended June 30, 2023 and 2022, respectively, concentrated in a large corporate restaurant account.

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 Six Months Ended June 30, 2023 and 2022

For the Three Months Ended June 30, 2023

Continuing
Lines

Exited Lines

Total

(Dollars in thousands)

Revenues:

Gross written premiums

$

110,191

$

(91

)

$

110,100

Net written premiums

$

106,740

$

(744

)

$

105,996

Net earned premiums

$

122,993

$

6,163

$

129,156

Other income

275

26

301

Total revenues

123,268

6,189

129,457

Losses and Expenses:

Net losses and loss adjustment expenses

Current accident year

72,197

5,834

78,031

Prior accident year

5,977

(5,926

)

51

Total net losses and loss adjustment expenses

78,174

(92

)

78,082

Acquisition costs and other underwriting expenses

44,709

2,392

47,101

Income (loss) from segments

$

385

$

3,889

$

4,274

Combined ratio analysis:

Loss ratio

Current accident year

58.7

%

94.7

%

60.5

%

Prior accident year

4.9

%

(96.2

%)

—

Calendar year loss ratio

63.6

%

(1.5

%)

60.5

%

Expense ratio

36.4

%

38.8

%

36.5

%

Combined ratio

100.0

%

37.3

%

97.0

%

Accident year combined ratio(1)

94.9

%

144.6

%

97.3

%

For the Three Months Ended June 30, 2022

Continuing
Lines

Exited Lines

Total

(Dollars in thousands)

Revenues:

Gross written premiums

$

151,534

$

45,289

$

196,823

Net written premiums

$

146,191

$

20,967

$

167,158

Net earned premiums

$

133,159

$

22,590

$

155,749

Other income (loss)

280

(196

)

84

Total revenues

133,439

22,394

155,833

Losses and Expenses:

Net losses and loss adjustment expenses

Current accident year

79,107

17,082

96,189

Prior accident year

(3,510

)

(61

)

(3,571

)

Total net losses and loss adjustment expenses

75,597

17,021

92,618

Acquisition costs and other underwriting expenses

50,096

11,002

61,098

Income (loss) from segments

$

7,746

$

(5,629

)

$

2,117

Combined ratio analysis:

Loss ratio

Current accident year

59.4

%

75.6

%

61.8

%

Prior accident year

(2.6

%)

(0.3

%)

(2.3

%)

Calendar year loss ratio

56.8

%

75.3

%

59.5

%

Expense ratio

37.6

%

48.7

%

39.2

%

Combined ratio

94.4

%

124.0

%

98.7

%

Accident year combined ratio(1)

96.8

%

119.1

%

100.1

%

(1) Excludes the impact of net losses and loss adjustment expenses and contingent commissions related to prior accident years.

For the Six Months Ended June 30, 2023

Continuing
Lines

Exited Lines

Total

(Dollars in thousands)

Revenues:

...

Gross written premiums

$

229,115

$

3,970

$

233,085

Net written premiums

$

221,390

$

467

$

221,857

Net earned premiums

$

251,022

$

18,206

$

269,228

Other income

533

103

636

Total revenues

251,555

18,309

269,864

Losses and Expenses:

Net losses and loss adjustment expenses

Current accident year

152,101

13,931

166,032

Prior accident year

7,455

(7,404

)

51

Total net losses and loss adjustment expenses

159,556

6,527

166,083

Acquisition costs and other underwriting expenses

93,051

7,528

100,579

Income (loss) from segments

$

(1,052

)

$

4,254

$

3,202

Combined ratio analysis:

Loss ratio

Current accident year

60.6

%

76.5

%

61.7

%

Prior accident year

3.0

%

(40.6

%)

—

Calendar year loss ratio

63.6

%

35.9

%

61.7

%

Expense ratio

37.1

%

41.3

%

37.4

%

Combined ratio

100.7

%

77.2

%

99.1

%

Accident year combined ratio(1)

97.6

%

119.4

%

99.1

%

For the Six Months Ended June 30, 2022

Continuing
Lines

Exited Lines

Total

(Dollars in thousands)

Revenues:

Gross written premiums

$

295,378

$

92,428

$

387,806

Net written premiums

$

285,350

$

41,290

$

326,640

Net earned premiums

$

258,654

$

45,918

$

304,572

Other income

519

4

523

Total revenues

259,173

45,922

305,095

Losses and Expenses:

Net losses and loss adjustment expenses

Current accident year

151,959

31,988

183,947

Prior accident year

(1,644

)

(4,990

)

(6,634

)

Total net losses and loss adjustment expenses

150,315

26,998

177,313

Acquisition costs and other underwriting expenses

95,583

22,207

117,790

Income (loss) from segments

$

13,275

$

(3,283

)

$

9,992

Combined ratio analysis:

Loss ratio

Current accident year

58.7

%

69.7

%

60.4

%

Prior accident year

(0.6

%)

(10.9

%)

(2.2

%)

Calendar year loss ratio

58.1

%

58.8

%

58.2

%

Expense ratio

37.0

%

48.4

%

38.7

%

Combined ratio

95.1

%

107.2

%

96.9

%

Accident year combined ratio(1)

95.6

%

111.3

%

98.0

%

(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 Six Months Ended June 30, 2023 and 2022

Three Months Ended June 30,

Gross Written Premiums

Net Written Premiums

2023

2022

% Change

2023

2022

% Change

Commercial Specialty

$

95,347

$

105,010

(9.2%)

$

91,896

$

99,667

(7.8%)

Reinsurance Operations

14,844

46,524

(68.1%)

14,844

46,524

(68.1%)

Continuing Lines

110,191

151,534

(27.3%)

106,740

146,191

(27.0%)

Exited Lines

(91

)

45,289

(100.2%)

(744

)

20,967

(103.5%)

Total

$

110,100

$

196,823

(44.1%)

$

105,996

$

167,158

(36.6%)

Six Months Ended June 30,

Gross Written Premiums

Net Written Premiums

2023

2022

% Change

2023

2022

% Change

Commercial Specialty

$

190,855

$

207,858

(8.2%)

$

183,130

$

197,830

(7.4%)

Reinsurance Operations

38,260

87,520

(56.3%)

38,260

87,520

(56.3%)

Continuing Lines

229,115

295,378

(22.4%)

221,390

285,350

(22.4%)

Exited Lines

3,970

92,428

(95.7%)

467

41,290

(98.9%)

Total

$

233,085

$

387,806

(39.9%)

$

221,857

$

326,640

(32.1%)

Commercial Specialty: Gross written premiums and net written premiums decreased 9.2% and 7.8%, respectively, for the three months ended June 30, 2023 as compared to the same period in 2022. Gross written premiums and net written premiums decreased 8.2% and 7.4%, respectively, for the six months ended June 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 business2 by 13.0% and 15.7% for the three and six months ended June 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 business2 by 28.4% and 19.6% for the three and six months ended June 30, 2023, respectively, as compared to the same periods in 2022 driven by actions taken to improve underwriting results by not renewing underperforming business.

Reinsurance Operations: Gross written premiums and net written premiums both decreased 68.1% for the three months ended June 30, 2023 as compared to the same period in 2022. Gross written premiums and net written premiums both decreased 56.3% for the six months ended June 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 100.2% and 103.5%, respectively, for the three months ended June 30, 2023 as compared to the same period in 2022. Gross written premiums and net written premiums decreased 95.7% and 98.9%, respectively, for the six months ended June 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.

Global Indemnity Group, LLC’s Combined Ratio for the Three and Six Months Ended June 30, 2023 and 2022

The consolidated combined ratio was 97.0% for the three months ended June 30, 2023, (Loss Ratio 60.5% and Expense Ratio 36.5%) as compared to 98.7% (Loss Ratio 59.5% and Expense Ratio 39.2%) for the three months ended June 30, 2022. The accident year combined ratio for Continuing Lines was 94.9% for the three months ended June 30, 2023, (Loss Ratio 58.7% and Expense Ratio 36.2%) as compared to 96.8% (Loss Ratio 59.4% and Expense Ratio 37.4%) for the three months ended June 30, 2022. The calendar year combined ratio for Continuing Lines was 100.0% for the three months ended June 30, 2023, (Loss Ratio 63.6% and Expense Ratio 36.4%) as compared to 94.4% (Loss Ratio 56.8% and Expense Ratio 37.6%) for the three months ended June 30, 2022.

  • The calendar year combined ratio for Continuing Lines was impacted by loss reserve strengthening primarily driven by the restaurant book of business that was not renewed as well as strengthening related to other non-renewed business.

  • For the Continuing Lines business, the accident year casualty loss ratio improved by 0.2 points to 59.7% in 2023 from 59.9% in 2022 primarily due to lower claims frequency within Commercial Specialty. The consolidated accident year casualty loss ratio increased by 0.4 points to 59.8% in 2023 from 59.4% in 2022 mainly due to higher claims severity and an increase in the expected loss ratio in Exited Lines.

  • For the Continuing Lines business, the accident year property loss ratio improved by 1.8 points to 56.3% in 2023 from 58.1% in 2022. The consolidated accident year property loss ratio improved by 4.3 points to 61.9% in 2023 from 66.2% in 2022. The improvement in the Continuing Lines and the Consolidated accident year property loss ratios is primarily due to lower non-catastrophe claims frequency.

The consolidated combined ratio was 99.1% for the six months ended June 30, 2023, (Loss Ratio 61.7% and Expense Ratio 37.4%) as compared to 96.9% (Loss Ratio 58.2% and Expense Ratio 38.7%) for the six months ended June 30, 2022. The accident year combined ratio for Continuing Lines was 97.6% for the six months ended June 30, 2023, (Loss Ratio 60.6% and Expense Ratio 37.0%) as compared to 95.6% (Loss Ratio 58.7% and Expense Ratio 36.9%) for the six months ended June 30, 2022. The calendar year combined ratio for Continuing Lines was 100.7% for the six months ended June 30, 2023, (Loss Ratio 63.6% and Expense Ratio 37.1%) as compared to 95.1% (Loss Ratio 58.1% and Expense Ratio 37.0%) for the six months ended June 30, 2022.

  • The calendar year combined ratio for Continuing Lines was impacted by fire losses in commercial vacant properties in the first quarter of 2023.

  • For the Continuing Lines business, the accident year casualty loss ratio increased by 0.5 points to 59.7% in 2023 from 59.2% in 2022. The consolidated accident year casualty loss ratio increased by 1.0 point to 59.9% in 2023 from 58.9% 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 5.3 points to 62.7% in 2023 from 57.4% in 2022. This was primarily due to fire losses from commercial vacant properties in the 1st quarter of 2023. Actions have been taken to reduce risk from commercial vacant properties. The consolidated accident year property loss ratio increased by 2.1 points to 65.3% in 2023 from 63.2% in 2022. The increase in the Continuing Lines and the Consolidated accident year property loss ratios is mainly due to higher claims severity.

Note: Tables Follow

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,

2023

2022

2023

2022

Gross written premiums

$

110,100

$

196,823

$

233,085

$

387,806

Net written premiums

$

105,996

$

167,158

$

221,857

$

326,640

Net earned premiums

$

129,156

$

155,749

$

269,228

$

304,572

Net investment income

13,216

1,930

25,224

8,522

Net realized investment losses

(761

)

(9,916

)

(2,281

)

(35,301

)

Other income

282

97

636

523

Total revenues

141,893

147,860

292,807

278,316

Net losses and loss adjustment expenses

78,082

92,618

166,083

177,313

Acquisition costs and other underwriting expenses

47,101

61,098

100,579

117,790

Corporate and other operating expenses

4,990

2,993

11,358

7,653

Interest expense

12

410

12

3,005

Loss on extinguishment of debt

—

3,529

—

3,529

Income (loss) before income taxes

11,708

(12,788

)

14,775

(30,974

)

Income tax expense (benefit)

2,371

(626

)

2,944

(4,039

)

Net income (loss)

9,337

(12,162

)

$

11,831

$

(26,935

)

Less: Preferred stock distributions

110

110

220

220

Net income (loss) available to common shareholders

$

9,227

$

(12,272

)

$

11,611

$

(27,155

)

Per share data:

Net income (loss) available to common shareholders

Basic

$

0.68

$

(0.84

)

$

0.86

$

(1.87

)

Diluted (1)

$

0.67

$

(0.84

)

$

0.84

$

(1.87

)

Weighted-average number of shares outstanding

Basic

13,478

14,543

13,574

14,529

Diluted (1)

13,708

14,543

13,794

14,529

Cash distributions declared per common share

$

0.25

$

0.25

$

0.50

$

0.50

Combined ratio analysis: (2)

Loss ratio

60.5

%

59.5

%

61.7

%

58.2

%

Expense ratio

36.5

%

39.2

%

37.4

%

38.7

%

Combined ratio

97.0

%

98.7

%

99.1

%

96.9

%

(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 in 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)

(Unaudited)
June 30, 2023

December 31,
2022

ASSETS

Fixed maturities:

Available for sale, at fair value (amortized cost: $1,311,567 and $1,301,723; net of allowance for expected credit losses of $0 at June 30, 2023 and December 31, 2022)

$

1,265,606

$

1,248,198

Equity securities, at fair value

17,153

17,520

Other invested assets

37,282

38,176

Total investments

1,320,041

1,303,894

Cash and cash equivalents

45,447

38,846

Premium receivables, net of allowance for expected credit losses of

$4,056 at June 30, 2023 and $3,322 at December 31, 2022

141,498

168,743

Reinsurance receivables, net of allowance for expected credit losses of

$8,992 at June 30, 2023 and December 31, 2022

95,616

85,721

Funds held by ceding insurers

16,660

19,191

Deferred federal income taxes

42,679

47,099

Deferred acquisition costs

52,019

64,894

Intangible assets

14,633

14,810

Goodwill

4,820

4,820

Prepaid reinsurance premiums

10,626

17,421

Lease right of use assets

10,790

11,739

Other assets

19,173

23,597

Total assets

$

1,774,002

$

1,800,775

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities:

Unpaid losses and loss adjustment expenses

$

866,951

$

832,404

Unearned premiums

215,187

269,353

Ceded balances payable

3,844

17,241

Payable for securities purchased

22,115

66

Contingent commissions

3,431

8,816

Lease liabilities

14,194

15,701

Other liabilities

21,872

30,965

Total liabilities

$

1,147,594

$

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: 11,000,287 and 10,876,041 respectively;

class A common shares outstanding: 9,729,046 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)

453,427

451,305

Accumulated other comprehensive income (loss), net of tax

(37,171

)

(43,058

)

Retained earnings (1)

238,315

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

626,408

626,229

Total liabilities and shareholders’ equity

$

1,774,002

$

1,800,775

(1)

Since the Company’s initial public offering in 2003, the Company has returned $602 million to shareholders, including $522 million in share repurchases and $80 million in dividends/distributions.

GLOBAL INDEMNITY GROUP, LLC

SELECTED INVESTMENT DATA

(Dollars in millions)

Market Value as of

(Unaudited)
June 30, 2023

December 31, 2022

Fixed maturities

$

1,265.6

$

1,248.2

Cash and cash equivalents

45.4

38.8

Total bonds and cash and cash equivalents

1,311.0

1,287.0

Equities and other invested assets

54.5

55.7

Total cash and invested assets, gross

1,365.5

1,342.7

Payable for securities purchased

(22.1

)

(0.1

)

Total cash and invested assets, net

$

1,343.4

$

1,342.6

Total Investment Return (1)

For the Three Months Ended
June 30,
(Unaudited)

For the Six Months Ended
June 30,
(Unaudited)

2023

2022

2023

2022

Net investment income

$

13.2

$

1.9

$

25.2

$

8.5

Net realized investment losses

(0.8

)

(9.9

)

(2.3

)

(35.3

)

Net unrealized investment gains (losses)

(3.1

)

(17.5

)

7.4

(41.3

)

Net realized and unrealized investment return

(3.9

)

(27.4

)

5.1

(76.6

)

Total investment return

$

9.3

$

(25.5

)

$

30.3

$

(68.1

)

Average total cash and invested assets

$

1,345.2

$

1,395.5

$

1,343.0

$

1,429.2

Total annualized investment return %

2.8

%

(7.3

%)

4.5

%

(9.5

%)

(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 Months
Ended June 30,

For the Six Months
Ended June 30,

2023

2022

2023

2022

Adjusted operating income, net of tax

$

6,903

$

4,184

$

10,331

$

7,987

Adjustments:

Underwriting income (loss) from Exited Lines

3,073

(4,447

)

3,361

(2,594

)

Adjusted operating income (loss) including Exited Lines,

net of tax (1)

9,976

(263

)

13,692

5,393

Net realized investment losses

(639

)

(8,370

)

(1,861

)

(28,799

)

Loss on extinguishment of debt

—

(3,529

)

—

(3,529

)

Net income (loss)

$

9,337

$

(12,162

)

$

11,831

$

(26,935

)

Weighted average shares outstanding – basic

13,478

14,543

13,574

14,529

Weighted average shares outstanding – diluted

13,708

14,749

13,794

14,728

Adjusted operating income per share – basic (2)

$

0.50

$

0.28

$

0.74

$

0.53

Adjusted operating income per share – diluted (2)

$

0.50

$

0.28

$

0.73

$

0.53

(1)

Adjusted operating income (loss) including Exited Lines, net of tax, excludes preferred shareholder distributions of $0.11 million for each of the three months ended June 30, 2023 and 2022 and $0.22 million for each of the six months ended June 30, 2023 and 2022.

(2)

The adjusted operating income per share calculation is net of preferred shareholder distributions of $0.11 million for each of the three months ended June 30, 2023 and 2022 and $0.22 million for each of the six months ended June 30, 2023 and 2022.

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 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.

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
June 30,

For the Six Months Ended
June 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)

$

30,707

54.6%

$

29,267

57.5%

$

59,517

55.4%

$

56,775

56.9%

Gross losses and loss adjustment expenses on terminated business (1)

3,132

149.2%

4,925

67.0%

7,474

109.4%

10,052

63.1%

Gross losses and loss adjustment expenses (1)

$

33,839

58.1%

$

34,192

58.7%

$

66,991

58.6%

$

66,827

57.7%

Ceded losses and loss adjustment expenses

(343

)

(311

)

(758

)

(659

)

Net losses and loss adjustment expenses (2)

$

33,496

58.2%

$

33,881

59.0%

$

66,233

58.6%

$

66,168

57.9%

Property

Gross losses and loss adjustment expenses excluding terminated business (1)

$

20,868

54.6%

$

21,177

52.3%

$

47,365

60.0%

$

41,388

52.7%

Gross losses and loss adjustment expenses on terminated business (1)

298

70.7%

945

149.2%

354

32.0%

986

80.5%

Gross losses and loss adjustment expenses (1)

$

21,166

54.7%

$

22,122

53.8%

$

47,719

59.6%

$

42,374

53.1%

Ceded losses and loss adjustment expenses

(979

)

(909

)

(1,628

)

(1,675

)

Net losses and loss adjustment expenses (2)

$

20,187

56.3%

$

21,213

58.1%

$

46,091

62.7%

$

40,699

57.4%

Commercial Specialty

Gross losses and loss adjustment expenses excluding terminated business (1)

$

51,575

54.6%

$

50,444

55.2%

$

106,882

57.4%

$

98,163

55.0%

Gross losses and loss adjustment expenses on terminated business (1)

3,430

136.1%

5,870

73.5%

7,828

98.6%

11,038

64.3%

Gross losses and loss adjustment expenses (1)

$

55,005

56.7%

$

56,314

56.7%

$

114,710

59.0%

$

109,201

55.9%

Ceded losses and loss adjustment expenses

(1,322

)

(1,220

)

(2,386

)

(2,334

)

Net losses and loss adjustment expenses (2)

$

53,683

57.5%

$

55,094

58.6%

$

112,324

60.2%

$

106,867

57.7%

(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 June 30,

For the Six Months Ended June 30,

2023

2022

2023

2022

Package Specialty E&S

Gross written premiums excluding terminated business (1)

$

62,636

$

55,417

$

119,913

$

103,666

Gross written premiums from terminated business (1)

—

2,861

1,058

6,013

Total gross written premiums (2)

$

62,636

$

58,278

$

120,971

$

109,679

Targeted Specialty E&S

Gross written premiums excluding terminated business (1)

$

32,553

$

45,462

$

69,331

$

86,223

Gross written premiums from terminated business (1)

158

1,270

553

11,956

Total gross written premiums (2)

$

32,711

$

46,732

$

69,884

$

98,179

Commercial Specialty

Gross written premiums excluding terminated business (1)

$

95,189

$

100,879

$

189,244

$

189,889

Gross written premiums from terminated business (1)

158

4,131

1,611

17,969

Total gross written premiums (2)

$

95,347

$

105,010

$

190,855

$

207,858

(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/20230807390370/en/

Contacts

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

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