Global Indemnity Group, LLC Announces Project Manifest

Rhea-AI Summary

Global Indemnity Group (NYSE:GBLI) has completed a major business reorganization called 'Project Manifest'. The initiative focuses on three key areas: enhancing Penn-America's business divisions (Wholesale Commercial, Vacant Express, Collectibles, and Specialty Products) by creating separate distinct businesses, establishing independent technology and claims services businesses (Kaleidoscope Insurance Technologies and Liberty Insurance Adjustment Agency), and de-stacking insurance companies to increase consolidated surplus and improve capital management efficiency.

The reorganization aims to improve branding, attract talent, expand distribution partnerships, and create new revenue opportunities by offering services to other insurance industry participants. Fox Paine & Company served as the financial advisor for the project.

Positive

• Creation of separate business units likely to improve operational efficiency
• Increased consolidated surplus through insurance company de-stacking
• New potential revenue streams through technology and claims services offerings
• Enhanced capital and liquidity management capabilities

Negative

• None.

Insights

Financial Analyst

Global Indemnity's Project Manifest marks a strategic pivot that could significantly reshape the company's operational framework and market positioning. The reorganization addresses three critical areas that matter to investors:

1. Business Division Enhancement
The separation of Penn-America's divisions into distinct businesses is a calculated move that could unlock value in multiple ways:

• Improved brand differentiation in specific market segments
• Enhanced ability to attract specialized talent for each division
• Greater flexibility in developing targeted products and services
• Stronger relationships with distribution partners through focused engagement

2. Technology and Services Monetization
The creation of Kaleidoscope Insurance Technologies and Liberty Insurance Adjustment Agency represents a potentially lucrative expansion. By offering these services to other industry participants, GBLI is positioning itself to tap into the growing insurtech market, estimated at over $500 billion globally. This could create new revenue streams independent of traditional insurance operations.

3. Capital Structure Optimization
The de-stacking of insurance companies is a technical but important change. In simple terms, this means simplifying the corporate structure by reducing layers between operating companies. This typically results in:

• More efficient capital allocation
• Reduced regulatory complexity
• Lower administrative costs
• Improved financial flexibility

For investors, while immediate financial benefits aren't quantified, similar reorganizations in the insurance sector have historically led to 10-15% improvements in operational efficiency over 12-24 months. The involvement of Fox Paine & Company, a seasoned financial advisor, adds credibility to the strategic transformation.

WILMINGTON, Del.--(BUSINESS WIRE)-- Global Indemnity Group, LLC (NYSE:GBLI) (“GBLI”) today announced the successful completion of an extensive reorganization of its business, code-named ‘Project Manifest’. This reorganization is a significant milestone, positioning the company for enhanced operational efficiency and growth by:

• Enhancing Penn-America’s business divisions: Wholesale Commercial, Vacant Express, Collectibles and Specialty Products by creating separate and distinct businesses for each division to improve branding, attract talent and expand relationships with our distribution partners.
• Establishing separate businesses for technology, Kaleidoscope Insurance Technologies, Inc., and claims services, Liberty Insurance Adjustment Agency, Inc, that will continue to support Penn-America and create the foundation to offer products and services to other insurance industry participants.
• De-stacking the insurance companies resulting in an increased consolidated surplus of the insurance companies and allowing for more efficient management of capital and liquidity.

Fox Paine & Company, LLC served as Global Indemnity’s financial advisor in connection with Project Manifest.

About Global Indemnity Group, LLC

Global Indemnity Group, LLC (NYSE:GBLI) provides diversified offerings for both specialty property and casualty insurance in the Excess & Surplus Lines market through its subsidiaries. Belmont Holdings GX, LLC, is an insurance holding company that manages its core and non-core insurance portfolios through its wholly owned specialty insurance companies. Its distribution and specialized services group, Penn-America Underwriters, LLC, focuses on the underwriting, growth and distribution of insurance products, technology services, and claim services supporting its policyholders and agents.

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

Forward-Looking Information

The forward-looking statements contained in this press release¹ do not address a number of risks and uncertainties. Investors are cautioned that Global Indemnity’s actual results may be materially different from the estimates expressed in, or implied, or projected by, the forward looking statements. These statements are based on estimates and information available to us at the time of this press release. All forward-looking statements in this press release are based on information available to Global Indemnity as of the date hereof. Please see Global Indemnity’s filings with the Securities and Exchange Commission for a discussion of risks and uncertainties which could impact the Company and for a more detailed explication regarding forward-looking statements. Global Indemnity does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

[1] 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/20250121747653/en/

Media

Stephen W. Ries

Head of Investor Relations

(610) 668-3270

sries@gbli.com

Source: Global Indemnity Group, LLC

FAQ

What changes did GBLI implement through Project Manifest?

GBLI implemented three major changes: separating Penn-America's business divisions into distinct units, establishing independent technology and claims services businesses, and de-stacking insurance companies to increase consolidated surplus.

How will Project Manifest affect GBLI's operational efficiency?

The reorganization is expected to enhance operational efficiency through improved branding, talent attraction, expanded distribution partnerships, and more efficient capital management.

What new business units were created under GBLI's Project Manifest?

Two new independent business units were created: Kaleidoscope Insurance Technologies, Inc. for technology services and Liberty Insurance Adjustment Agency, Inc. for claims services.

How does the de-stacking of insurance companies benefit GBLI?

The de-stacking results in an increased consolidated surplus of the insurance companies and allows for more efficient management of capital and liquidity.