Global Indemnity Group, LLC Reports Second Quarter 2023 Results
Selected Operating and Balance Sheet Information Consolidated Results Including Continuing Lines and Exited Lines (Dollars in millions, except per share data) |
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For the Three Months Ended
|
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For the Six Months Ended
|
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2023 |
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2022 |
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2023 |
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2022 |
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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: |
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|
|
|
|
|
|
|
|
|
|
|
||||
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
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As of
|
|
|
As of
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|
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|
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|||
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 |
| (2) Shareholders’ equity includes |
| (3) Including receivable/(payable) for securities sold/(purchased). |
Business Highlights
-
Underwriting income was
$4.3 million $2.1 million $3.2 million $10.0 million 62.9% for the first three months of 2023 due to fire losses in vacant properties, improved to57.5% . -
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 $55.4 million 15.7% to$119.9 million $103.7 million -
Targeted Specialty E&S decreased gross written premiums by
28.4% to$32.6 million $45.5 million 19.6% to$69.3 million $86.2 million -
Commercial Specialty incurred accident year gross casualty loss ratios of
54.6% and55.4% 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% and60.0% 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 4.4% of net earned property premium in the three months ended June 30, 2023 compared to$3.1 million 3.2% of net earned property premium in the same period in 2022.
-
Package Specialty E&S, the Company’s primary division within its Commercial Specialty segment, increased gross written premiums by
-
Net investment income increased to
$13.2 million $1.9 million $25.2 million $8.5 million -
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 to3.8% at June 30, 2023 from2.3% 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 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 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
-
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 approximately75% over the last 5 years and by40% over the past year, which allowed less limit to be purchased, and increasing retention from$15 million $25 million -
Book value per share increased
$1.16 2.6% , to$46.03 $44.87
| 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 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
|
|
|
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
|
|
|
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
|
|
|
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
|
|
|
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 |
|
|
( |
|
$ |
91,896 |
|
|
$ |
99,667 |
|
|
( |
Reinsurance Operations |
|
14,844 |
|
|
|
46,524 |
|
|
( |
|
|
14,844 |
|
|
|
46,524 |
|
|
( |
Continuing Lines |
|
110,191 |
|
|
|
151,534 |
|
|
( |
|
|
106,740 |
|
|
|
146,191 |
|
|
( |
Exited Lines |
|
(91 |
) |
|
|
45,289 |
|
|
( |
|
|
(744 |
) |
|
|
20,967 |
|
|
( |
Total |
$ |
110,100 |
|
|
$ |
196,823 |
|
|
( |
|
$ |
105,996 |
|
|
$ |
167,158 |
|
|
( |
|
Six Months Ended June 30, |
||||||||||||||||||
|
Gross Written Premiums |
|
Net Written Premiums |
||||||||||||||||
|
2023 |
|
|
2022 |
|
|
% Change |
|
2023 |
|
|
2022 |
|
|
% Change |
||||
Commercial Specialty |
$ |
190,855 |
|
|
$ |
207,858 |
|
|
( |
|
$ |
183,130 |
|
|
$ |
197,830 |
|
|
( |
Reinsurance Operations |
|
38,260 |
|
|
|
87,520 |
|
|
( |
|
|
38,260 |
|
|
|
87,520 |
|
|
( |
Continuing Lines |
|
229,115 |
|
|
|
295,378 |
|
|
( |
|
|
221,390 |
|
|
|
285,350 |
|
|
( |
Exited Lines |
|
3,970 |
|
|
|
92,428 |
|
|
( |
|
|
467 |
|
|
|
41,290 |
|
|
( |
Total |
$ |
233,085 |
|
|
$ |
387,806 |
|
|
( |
|
$ |
221,857 |
|
|
$ |
326,640 |
|
|
( |
Commercial Specialty: Gross written premiums and net written premiums decreased
Package Specialty E&S, the Company’s primary division within its Commercial Specialty segment, increased gross written premiums excluding terminated business2 by
Targeted Specialty E&S, a division within the Company’s Commercial Specialty segment, decreased gross written premiums excluding terminated business2 by
Reinsurance Operations: Gross written premiums and net written premiums both decreased
Exited Lines: Gross written premiums and net written premiums decreased
Global Indemnity Group, LLC’s Combined Ratio for the Three and Six Months Ended June 30, 2023 and 2022
The consolidated combined ratio was
- 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 from59.9% in 2022 primarily due to lower claims frequency within Commercial Specialty. The consolidated accident year casualty loss ratio increased by 0.4 points to59.8% in 2023 from59.4% 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 from58.1% in 2022. The consolidated accident year property loss ratio improved by 4.3 points to61.9% in 2023 from66.2% 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
- 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 from59.2% in 2022. The consolidated accident year casualty loss ratio increased by 1.0 point to59.9% in 2023 from58.9% 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 from57.4% 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 to65.3% in 2023 from63.2% 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
|
||||||||||||||||
|
|
|
|
|||||||||||||
|
|
For the Three Months Ended
|
|
|
For the Six Months Ended
|
|
||||||||||
|
|
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)
|
|
|
December 31,
|
|
||
ASSETS |
|
|
|
|
|
|
||
Fixed maturities: |
|
|
|
|
|
|
||
Available for sale, at fair value (amortized cost: |
|
$ |
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 |
|
|
|
|
|
|
||
|
|
|
141,498 |
|
|
|
168,743 |
|
Reinsurance receivables, net of allowance for expected credit losses of |
|
|
|
|
|
|
||
|
|
|
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, |
|
|
|
|
|
|
||
100,000,000 shares authorized, shares issued and outstanding: |
|
|
|
|
|
|
||
4,000 and 4,000 shares, respectively, liquidation preference: |
|
|
|
|
|
|
||
|
|
|
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 |
GLOBAL INDEMNITY GROUP, LLC SELECTED INVESTMENT DATA (Dollars in millions) |
||||||||
|
|
Market Value as of |
|
|||||
|
|
(Unaudited)
|
|
|
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
|
|
|
For the Six Months Ended
|
|
||||||||||
|
|
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
|
|
|
For the Six Months
|
|
||||||||||
|
|
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 |
|
(2) |
The adjusted operating income per share calculation is net of preferred shareholder distributions of |
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
|
|
For the Six Months Ended
|
||||||||||||||||||||
|
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 |
|
|
|
|
$ |
29,267 |
|
|
|
|
$ |
59,517 |
|
|
|
|
$ |
56,775 |
|
|
|
Gross losses and loss adjustment expenses on terminated business (1) |
|
3,132 |
|
|
|
|
|
4,925 |
|
|
|
|
|
7,474 |
|
|
|
|
|
10,052 |
|
|
|
Gross losses and loss adjustment expenses (1) |
$ |
33,839 |
|
|
|
|
$ |
34,192 |
|
|
|
|
$ |
66,991 |
|
|
|
|
$ |
66,827 |
|
|
|
Ceded losses and loss adjustment expenses |
|
(343 |
) |
|
|
|
|
(311 |
) |
|
|
|
|
(758 |
) |
|
|
|
|
(659 |
) |
|
|
Net losses and loss adjustment expenses (2) |
$ |
33,496 |
|
|
|
|
$ |
33,881 |
|
|
|
|
$ |
66,233 |
|
|
|
|
$ |
66,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross losses and loss adjustment expenses excluding terminated business (1) |
$ |
20,868 |
|
|
|
|
$ |
21,177 |
|
|
|
|
$ |
47,365 |
|
|
|
|
$ |
41,388 |
|
|
|
Gross losses and loss adjustment expenses on terminated business (1) |
|
298 |
|
|
|
|
|
945 |
|
|
|
|
|
354 |
|
|
|
|
|
986 |
|
|
|
Gross losses and loss adjustment expenses (1) |
$ |
21,166 |
|
|
|
|
$ |
22,122 |
|
|
|
|
$ |
47,719 |
|
|
|
|
$ |
42,374 |
|
|
|
Ceded losses and loss adjustment expenses |
|
(979 |
) |
|
|
|
|
(909 |
) |
|
|
|
|
(1,628 |
) |
|
|
|
|
(1,675 |
) |
|
|
Net losses and loss adjustment expenses (2) |
$ |
20,187 |
|
|
|
|
$ |
21,213 |
|
|
|
|
$ |
46,091 |
|
|
|
|
$ |
40,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial Specialty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross losses and loss adjustment expenses excluding terminated business (1) |
$ |
51,575 |
|
|
|
|
$ |
50,444 |
|
|
|
|
$ |
106,882 |
|
|
|
|
$ |
98,163 |
|
|
|
Gross losses and loss adjustment expenses on terminated business (1) |
|
3,430 |
|
|
|
|
|
5,870 |
|
|
|
|
|
7,828 |
|
|
|
|
|
11,038 |
|
|
|
Gross losses and loss adjustment expenses (1) |
$ |
55,005 |
|
|
|
|
$ |
56,314 |
|
|
|
|
$ |
114,710 |
|
|
|
|
$ |
109,201 |
|
|
|
Ceded losses and loss adjustment expenses |
|
(1,322 |
) |
|
|
|
|
(1,220 |
) |
|
|
|
|
(2,386 |
) |
|
|
|
|
(2,334 |
) |
|
|
Net losses and loss adjustment expenses (2) |
$ |
53,683 |
|
|
|
|
$ |
55,094 |
|
|
|
|
$ |
112,324 |
|
|
|
|
$ |
106,867 |
|
|
|
(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
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
Source: Global Indemnity Group, LLC
