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/
Stephen W. Ries Head of Investor Relations (610) 668-3270
sries@gbli.com
Global Indemnity (NYSE:GBLI)
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