Global Indemnity Group, LLC Reports Year Ended 2024 Results

Rhea-AI Summary

Global Indemnity Group (NYSE:GBLI) reported strong financial results for 2024, with net income available to shareholders increasing 71% to $42.8 million ($3.12 per share) compared to $25.0 million ($1.83 per share) in 2023.

Key highlights include: operating income up 58% to $42.8 million, book value per share rising to $49.98, and investment income growing 13% to $62.4 million. The company's bond portfolio yield increased to 4.4%, with the investment portfolio growing 4% to $1.44 billion.

GBLI's underwriting performance improved with current accident year underwriting income reaching $18.8 million. The Penn-America segment posted $22.1 million in underwriting income with a 94.4% combined ratio. Catastrophe losses decreased 26% to $12.7 million. Notable growth areas include Penn-America's gross written premiums (+12% to $395.1 million), InsurTech (+17% to $56.3 million), and Assumed Reinsurance (+83% to $25.4 million).

Positive

• Net income surged 71% to $42.8 million
• Operating income increased 58% to $42.9 million
• Investment income grew 13% to $62.4 million
• Book value per share rose 8.1% including dividends
• Catastrophe losses decreased 26% to $12.7 million
• Penn-America segment grew premiums 12% to $395.1 million
• InsurTech revenue increased 17% to $56.3 million
• AM Best affirmed 'A' (Excellent) rating

Negative

• Prior accident year loss development showed slight increase

Insights

Global Indemnity Group has delivered exceptional financial results for 2024, with net income surging 71% to $42.8 million ($3.12 per share) compared to $25.0 million in 2023. The company's operating income also increased 58% to $42.9 million, demonstrating significant operational improvement.

The insurer's book value per share grew to $49.98, representing an 8.1% increase when including dividends. This performance is supported by investment income growth of 13% to $62.4 million, driven by higher portfolio yields and 4% expansion of invested assets to $1.44 billion.

From an underwriting perspective, GBLI's current accident year underwriting income improved to $18.8 million from $14.3 million in 2023, with the Penn-America segment generating $22.1 million in underwriting profit (combined ratio: 94.4%). The company demonstrated enhanced catastrophe risk management with losses declining 26% to $12.7 million.

The minimal prior accident year development ($0.1 million) indicates disciplined reserving practices, while premium growth across all business segments reflects strong market positioning:

• Penn-America gross written premiums increased 12% to $395.1 million
• InsurTech grew 17% to $56.3 million
• Wholesale Commercial achieved 7% rate increases
• Assumed Reinsurance expanded 83% to $25.4 million

The company's return on equity improved to 8.4% from 7.2%, while maintaining financial stability evidenced by AM Best's affirmation of its A (Excellent) rating. These results reflect balanced growth across business lines combined with disciplined underwriting and improved investment performance.

WILMINGTON, Del.--(BUSINESS WIRE)-- Global Indemnity Group, LLC (NYSE:GBLI) (the “Company”) today reported an increase of 71% in net income available to shareholders to $42.8 million or $3.12 per share for the twelve months ended December 31, 2024 compared to $25.0 million or $1.83 per share for the same period in 2023.

Highlights for the Twelve Months Ended December 31, 2024

• Net income available to shareholders increased 71% to $42.8 million or $3.12 per share in 2024 compared to $25.0 million or $1.83 per share in 2023.
• Operating income increased 58% to $42.9 million in 2024 compared to $27.2 million in 2023.
• Book value per share increased to $49.98 at December 31, 2024 from $47.53 at December 31, 2023; increased 8.1% including dividends paid of $1.40 per share in 2024.
• Investment income increased 13% to $62.4 million in 2024 compared to $55.4 million in 2023 due to an increase in book yield on the Company’s bond portfolio to 4.4% at December 31, 2024 from 4.0% at December 31, 2023 and growth of 4% in the investment portfolio to $1.44 billion driven primarily by operating cash flow.
• Return on equity, including unrealized gains on fixed-income securities included in stockholders' equity, was 8.4% in 2024 compared to 7.2% in 2023.
• Investment return was 5.5% for 2024.
• GBLI’s current accident year underwriting income increased to $18.8 million for 2024 compared with $14.3 million in 2023 driven by:
  • The Company’s Penn-America segment that posted $22.1 million of underwriting income (combined ratio of 94.4%), higher than 2023 underwriting income of $18.5 million (combined ratio of 95.2%) driven by growth in gross written premiums and improved non-catastrophe and catastrophe property results.
  • GBLI's catastrophe losses declined 26%; $12.7 million in 2024 from $17.2 million in 2023.
• Penn-America gross written premiums, excluding products terminated, increased 12% to $395.1 million in 2024 compared to $352.4 million in 2023.
  • InsurTech grew 17% to $56.3 million in 2024 compared with $48.3 million in 2023 from organic agency growth, new agency appointments and new products.
  • Wholesale Commercial's policy premiums, excluding audit premiums, is higher by 12% in 2024 driven by aggregate premium rate increase of 7%.
  • Assumed Reinsurance increased 83% from $13.9 million in 2023 to $25.4 million in 2024 due to new treaties commencing in both 2023 and 2024.
• Prior accident year loss development was an increase of less than $0.1 million for 2024.
• AM Best affirmed Global Indemnity Group, LLC’s A (Excellent) rating for its U.S. insurance subsidiaries on August 1, 2024.

Selected Operating and Balance Sheet Information (Dollars in millions, except per share data)
		For the Twelve Months Ended December 31,
		2024				2023
Consolidated:
Net income available to shareholders		$	42.8			$	25.0
Net income available to shareholders per share		$	3.12			$	1.83
Operating income		$	42.9			$	27.2
Operating income per share		$	3.10			$	1.96
Underwriting income, current accident year		$	18.8			$	14.3
Underwriting income		$	17.8			$	3.0
Gross written premiums		$	389.8			$	416.4
Investment income		$	62.4			$	55.4
Annualized investment return			5.5	%			5.7	%
Combined ratio analysis:
Loss ratio			56.6	%			61.1	%
Expense ratio			39.0	%			38.6	%
Combined ratio			95.6	%			99.7	%
Combined ratio, current accident year			95.4	%			97.3	%
Penn-America Segment:
Underwriting income, current accident year		$	22.1			$	18.5
Underwriting income (loss)		$	19.7			$	(11.6	)
Penn-America gross written premiums (1)		$	395.1			$	352.4
Combined ratio analysis:
Loss ratio			56.9	%			65.8	%
Expense ratio			38.1	%			37.8	%
Combined ratio			95.0	%			103.6	%
Combined ratio, current accident year			94.4	%			95.2	%

		As of December 31, 2024				As of December 31, 2023
Consolidated:
Book value per share		$	49.98			$	47.53
Book value per share plus cumulative dividends and excluding AOCI		$	58.14			$	55.22
Shareholders’ equity		$	689.1			$	648.8
Cash and invested assets		$	1,440.7			$	1,390.4
Shares Outstanding (in millions)			13.7				13.6

(1)

Excludes $4.9 million and $17.2 million of gross written premiums for terminated products for the twelve months ended December 31, 2024 and 2023, respectively.

GLOBAL INDEMNITY GROUP, LLC CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars and shares in thousands, except per share data)
		For the Twelve Months Ended December 31,
		2024				2023
Gross written premiums		$	389,758			$	416,397
Net written premiums		$	379,190			$	399,319
Net earned premiums		$	376,992			$	473,357
Net investment income			62,375				55,444
Net realized investment gains (losses)			455				(2,107	)
Other income			1,365				1,435
Total revenues			441,187				528,129
Net losses and loss adjustment expenses			213,190				289,153
Acquisition costs and other underwriting expenses			147,345				182,617
Corporate and other operating expenses			25,696				23,383
Income before income taxes			54,956				32,976
Income tax expense			11,715				7,547
Net income			43,241				25,429
Less: Preferred stock distributions			440				440
Net income available to common shareholders		$	42,801			$	24,989
Per share data:
Net income available to common shareholders
Basic		$	3.14			$	1.84
Diluted		$	3.12			$	1.83
Weighted-average number of shares outstanding
Basic			13,636				13,553
Diluted			13,706				13,666
Cash distributions declared per common share		$	1.40			$	1.00
Combined ratio analysis:
Loss ratio			56.6	%			61.1	%
Expense ratio			39.0	%			38.6	%
Combined ratio			95.6	%			99.7	%

GLOBAL INDEMNITY GROUP, LLC CONSOLIDATED BALANCE SHEETS (Dollars in thousands)
		December 31, 2024				December 31, 2023
ASSETS
Fixed maturities:
Available for sale, at fair value (amortized cost: $1,394,639 and $1,322,092; net of allowance for expected credit losses of: $0 at December 31, 2024 and 2023)		$	1,381,908			$	1,293,793
Equity securities, at fair value			12,284				16,508
Other invested assets			29,413				38,236
Total investments			1,423,605				1,348,537
Cash and cash equivalents			17,009				38,037
Premium receivables, net of allowance for expected credit losses of $3,530 at December 31, 2024 and $4,796 at December 31, 2023			75,088				102,158
Reinsurance receivables, net of allowance for expected credit losses of $8,992 at December 31, 2024 and December 31, 2023			66,855				80,439
Funds held by ceding insurers			30,026				16,989
Deferred federal income taxes			22,459				36,802
Deferred acquisition costs			41,136				42,445
Intangible assets			14,103				14,456
Goodwill			4,820				4,820
Prepaid reinsurance premiums			3,320				4,958
Receivable for securities			52				3,858
Federal income tax receivable			825				—
Lease right of use assets			9,295				9,715
Other assets			22,660				26,362
Total assets		$	1,731,253			$	1,729,576
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses		$	800,391			$	850,599
Unearned premiums			183,411				182,852
Reinsurance balances payable			8,181				2,642
Federal income tax payable			—				1,595
Contingent commissions			6,826				5,632
Lease liabilities			10,371				12,733
Other liabilities			32,924				24,770
Total liabilities		$	1,042,104			$	1,080,823
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: 11,202,355 and 11,042,670, respectively;
class A common shares outstanding: 9,914,587 and 9,771,429, respectively;
class B common shares issued and outstanding: 3,793,612 and 3,793,612, respectively			—				—
Additional paid-in capital (1)			459,578				454,791
Accumulated other comprehensive income (loss), net of tax			(10,410	)			(22,863	)
Retained earnings (1)			268,673				244,988
Class A common shares in treasury, at cost: 1,287,768 and 1,271,241 shares, respectively			(32,692	)			(32,163	)
Total shareholders’ equity			689,149				648,753
Total liabilities and shareholders’ equity		$	1,731,253			$	1,729,576

(1)

Since the Company’s initial public offering in 2003, the Company has returned $629 million to shareholders, including $522 million in share repurchases and $107 million in dividends/distributions.

Segment Data for the Twelve Months Ended December 31, 2024 and 2023 (Dollars in millions)
Underwriting Income for the Twelve Months Ended December 31,
		Penn-America								Non-Core Operations								Consolidated
		2024				2023				2024				2023				2024				2023
Revenues:
Gross written premiums		$	400.0			$	369.7			$	(10.2	)		$	46.7			$	389.8			$	416.4
Net written premiums		$	389.6			$	356.8			$	(10.4	)		$	42.5			$	379.2			$	399.3
Net earned premiums		$	369.8			$	354.5			$	7.2			$	118.9			$	377.0			$	473.4
Underwriting income (loss), current accident year		$	22.1			$	18.5			$	(3.3	)		$	(4.2	)		$	18.8			$	14.3
Underwriting income (loss)		$	19.7			$	(11.6	)		$	(1.9	)		$	14.6			$	17.8			$	3.0
Combined ratio analysis:
Loss ratio
Current accident year			56.4	%			57.4	%			64.6	%			64.2	%			56.5	%			59.1	%
Prior accident year			0.5	%			8.4	%			(24.3	%)			(17.1	%)			0.1	%			2.0	%
Calendar year loss ratio			56.9	%			65.8	%			40.3	%			47.1	%			56.6	%			61.1	%
Expense ratio			38.1	%			37.8	%			86.5	%			40.8	%			39.0	%			38.6	%
Combined ratio			95.0	%			103.6	%			126.8	%			87.9	%			95.6	%			99.7	%
Combined ratio, current accident year			94.4	%			95.2	%			145.6	%			103.7	%			95.4	%			97.3	%

Gross Written Premiums for the Twelve Months Ended December 31,
		2024				2023				% Change
Penn-America:
Wholesale Commercial		$	248.6			$	234.9			6%
InsurTech			56.3				48.3			17%
Assumed Reinsurance			25.4				13.9			83%
			330.3				297.1			11%
Specialty Products			69.7				72.6			(4%)
Penn-America			400.0				369.7			8%
Non-Core Operations			(10.2	)			46.7			(122%)
Total		$	389.8			$	416.4			(6%)

GLOBAL INDEMNITY GROUP, LLC SELECTED INVESTMENT DATA (Dollars in millions)
		Market Value as of
		December 31, 2024				December 31, 2023
Fixed maturities		$	1,381.9			$	1,293.8
Cash and cash equivalents			17.0				38.0
Total fixed maturities and cash and cash equivalents			1,398.9				1,331.8
Equities and other invested assets			41.7				54.7
Total cash and invested assets, gross			1,440.6				1,386.5
Receivable for securities			0.1				3.9
Total cash and invested assets, net		$	1,440.7			$	1,390.4

		Total Pre-Tax Investment Return
		For the Twelve Months Ended December 31,
		2024				2023
Net investment income		$	62.4			$	55.4
Net realized investment gains (losses)			0.5				(2.1	)
Net unrealized investment gains (losses)			15.4				25.2
Net realized and unrealized investment return			15.9				23.1
Total investment return		$	78.3			$	78.5
Average total cash and invested assets		$	1,415.5			$	1,366.6
Total investment return %			5.5	%			5.7	%

SUMMARY OF OPERATING INCOME (Dollars and shares in thousands, except per share data)
		For the Twelve Months Ended December 31,
		2024			2023
Operating income, net of tax (1)		$	42,879		$	27,181
Net realized investment gains (losses), net of tax			362			(1,752	)
Net income		$	43,241		$	25,429
Weighted average shares outstanding – diluted			13,706			13,666
Operating income per share – diluted (2)		$	3.10		$	1.96

(1)		Operating income, net of tax, excludes preferred shareholder distributions of $0.44 million for each of the twelve months ended December 31, 2024 and 2023.
(2)		The operating income per share calculation is net of preferred shareholder distributions of $0.44 million for each of the twelve months ended December 31, 2024 and 2023.

Note Regarding Operating Income

Operating income, a non-GAAP financial measure, is equal to net income excluding after-tax net realized investment gains (losses) and other unique charges not related to operations. Operating income is not a substitute for net income determined in accordance with GAAP, and investors should not place undue reliance on this measure.

About Global Indemnity Group, LLC and its subsidiaries

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 release³ 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.

[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/20250309501836/en/

Brian J. Riley

Chief Financial Officer

(610) 660-6817

briley@gbli.com

Source: Global Indemnity Group, LLC

FAQ

What was GBLI's net income growth in 2024?

GBLI's net income grew 71% to $42.8 million ($3.12 per share) in 2024, up from $25.0 million ($1.83 per share) in 2023.

How much did GBLI's investment income increase in 2024?

Investment income increased 13% to $62.4 million in 2024, compared to $55.4 million in 2023.

What was GBLI's book value per share at the end of 2024?

Book value per share increased to $49.98 at December 31, 2024, from $47.53 at December 31, 2023, representing an 8.1% increase including dividends.

How did GBLI's Penn-America segment perform in 2024?

Penn-America posted $22.1 million in underwriting income with a 94.4% combined ratio, and grew gross written premiums by 12% to $395.1 million.

What was GBLI's catastrophe loss reduction in 2024?

Catastrophe losses declined 26% to $12.7 million in 2024 from $17.2 million in 2023.