Global Indemnity Group, LLC (NYSE:GBLI) (the “Company”) today
reported an increase of 77% in net income available to shareholders
to $33.9 million or $2.48 per share for the nine months ended
September 30, 2024 compared to $19.2 million or $1.39 per share for
the same period in 2023.
Highlights for the Nine Months Ended
September 30, 2024
- Net income available to shareholders increased 77% to $33.9
million or $2.48 per share in 2024 compared to $19.2 million or
$1.39 per share in 2023.
- Operating income increased 57% to $33.8 million in 2024
compared to $21.5 million in 2023.
- Book value per share increased to $49.88 at September 30, 2024
from $47.53 at December 31, 2023; increased 7.1% including
dividends paid of $1.05 per share in 2024.
- Investment income increased 18% to $46.3 million in 2024
compared to $39.4 million in 2023 due to an increase in book yield
on the Company’s bond portfolio to 4.6% at September 30, 2024 from
4.0% at September 30, 2023 and growth of 7% in the investment
portfolio to $1.47 billion driven primarily by operating cash
flow.
- Annualized return on equity, including unrealized gains on
fixed-income securities included in stockholders' equity, was 9.8%
in 2024 compared to 5.2% in 2023.
- Annualized investment return was 6.1% for the first nine months
of 2024.
- GBLI’s current accident year underwriting income increased to
$15.3 million for 2024 compared with $5.0 million in 2023 driven
by:
- The Company’s Penn-America segment that posted $17.6 million of
underwriting income (combined ratio of 93.9%), higher than 2023
underwriting income of $9.7 million (combined ratio of 96.7%)
driven by improved non-catastrophe and catastrophe property
results.
- GBLI's catastrophe losses declined 35%; $10.3 million in 2024
from $15.8 million in 2023. 2024 includes $1.5 million related to
Hurricane Helene.
- Penn-America gross written premiums, excluding products
terminated, increased 12% to $293.0 million in 2024 compared to
$262.8 million in 2023.
- InsurTech grew 17% to $41.9 million in 2024 compared with $35.7
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 9%.
- Assumed Re increased 131% from $8.4 million in 2023 to $19.3
million in 2024 due to new treaties commencing in both 2023 and
2024.
- Prior accident year loss development was slightly favorable at
$0.1 million for the first nine months of 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 Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2024
2023
2024
2023
Consolidated:
Net income available to shareholders
$
12.7
$
7.6
$
33.9
$
19.2
Net income available to shareholders per
share
$
0.92
$
0.55
$
2.48
$
1.39
Operating income
$
13.2
$
7.8
$
33.8
$
21.5
Operating income per share
$
0.95
$
0.56
$
2.45
$
1.53
Underwriting income, current accident
year
$
6.6
$
1.8
$
15.3
$
5.0
Underwriting income
$
5.8
$
0.7
$
14.6
$
3.9
Gross written premiums
$
99.8
$
98.9
$
294.0
$
332.0
Investment income
$
16.5
$
14.2
$
46.3
$
39.4
Annualized investment return
7.9
%
3.8
%
6.1
%
4.2
%
Combined ratio analysis:
Loss ratio
54.9
%
58.3
%
56.0
%
60.7
%
Expense ratio
39.4
%
41.4
%
39.2
%
38.5
%
Combined ratio
94.3
%
99.7
%
95.2
%
99.2
%
Combined ratio, current accident year
93.5
%
98.6
%
95.0
%
98.9
%
Penn-America Segment:
Underwriting income, current accident
year
$
7.7
$
3.4
$
17.6
$
9.7
Underwriting income (loss)
$
7.3
$
(4.5
)
$
17.6
$
(1.5
)
Penn-America gross written premiums
(1)
$
103.1
$
84.0
$
293.0
$
262.8
Combined ratio analysis:
Loss ratio
54.7
%
67.1
%
55.6
%
62.9
%
Expense ratio
37.9
%
38.6
%
38.3
%
38.0
%
Combined ratio
92.6
%
105.7
%
93.9
%
100.9
%
Combined ratio, current accident year
92.1
%
96.3
%
93.9
%
96.7
%
As of September 30,
2024
As of June 30, 2024
As of March 31, 2024
As of December 31,
2023
Consolidated:
Book value per share
$
49.88
$
48.56
$
48.18
$
47.53
Book value per share plus cumulative
dividends and
excluding AOCI
$
57.50
$
56.58
$
56.00
$
55.22
Shareholders’ equity
$
686.7
$
667.5
$
659.5
$
648.8
Cash and invested assets
$
1,468.0
$
1,435.2
$
1,417.3
$
1,390.4
Shares Outstanding (in millions)
13.7
13.7
13.6
13.6
(1) Excludes $0.2 million and $3.0 million
of gross written premiums for terminated products for the three
months ended September 30, 2024 and 2023, respectively, and $4.8
million and $14.7 million of gross written premiums for terminated
products for the nine months ended September 30, 2024 and 2023,
respectively.
GLOBAL INDEMNITY GROUP,
LLC
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
(Dollars and shares in thousands,
except per share data)
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2024
2023
2024
2023
Gross written premiums
$
99,767
$
98,926
$
293,961
$
332,011
Net written premiums
$
97,177
$
95,623
$
287,013
$
317,480
Net earned premiums
$
95,413
$
111,695
$
284,806
$
380,923
Net investment income
16,488
14,200
46,319
39,424
Net realized investment gains (losses)
(512
)
(133
)
540
(2,414
)
Other income
372
299
1,074
935
Total revenues
111,761
126,061
332,739
418,868
Net losses and loss adjustment
expenses
52,400
65,116
159,446
231,199
Acquisition costs and other underwriting
expenses
37,553
46,202
111,790
146,781
Corporate and other operating expenses
5,923
5,280
18,662
16,638
Interest expense
—
—
17
12
Income before income taxes
15,885
9,463
42,824
24,238
Income tax expense
3,125
1,763
8,605
4,707
Net income
12,760
7,700
34,219
19,531
Less: Preferred stock distributions
110
110
330
330
Net income available to common
shareholders
$
12,650
$
7,590
$
33,889
$
19,201
Per share data:
Net income available to common
shareholders
Basic
$
0.93
$
0.56
$
2.49
$
1.42
Diluted
$
0.92
$
0.55
$
2.48
$
1.39
Weighted-average number of shares
outstanding
Basic
13,665
13,523
13,618
13,557
Diluted
13,801
13,814
13,684
13,799
Cash distributions declared per common
share
$
0.35
$
0.25
$
1.05
$
0.75
Combined ratio analysis:
Loss ratio
54.9
%
58.3
%
56.0
%
60.7
%
Expense ratio
39.4
%
41.4
%
39.2
%
38.5
%
Combined ratio
94.3
%
99.7
%
95.2
%
99.2
%
GLOBAL INDEMNITY GROUP,
LLC
CONSOLIDATED BALANCE
SHEETS
(Dollars in thousands)
(Unaudited) September 30,
2024
December 31, 2023
ASSETS
Fixed maturities:
Available for sale, at fair value
(amortized cost: $1,404,854 and $1,322,092; net of allowance for
expected credit losses of $0 at September 30, 2024 and December 31,
2023)
$
1,395,229
$
1,293,793
Equity securities, at fair value
12,347
16,508
Other invested assets
29,459
38,236
Total investments
1,437,035
1,348,537
Cash and cash equivalents
31,019
38,037
Premium receivables, net of allowance for
expected credit losses of
$3,486 at September 30, 2024 and $4,796 at
December 31, 2023
73,425
102,158
Reinsurance receivables, net of allowance
for expected credit losses of
$8,992 at September 30, 2024 and December
31, 2023
76,393
80,439
Funds held by ceding insurers
27,194
16,989
Deferred federal income taxes
24,491
36,802
Deferred acquisition costs
40,855
42,445
Intangible assets
14,191
14,456
Goodwill
4,820
4,820
Prepaid reinsurance premiums
3,260
4,958
Receivable for securities
19
3,858
Federal income tax receivable
1,062
—
Lease right of use assets
8,519
9,715
Other assets
18,834
26,362
Total assets
$
1,761,117
$
1,729,576
LIABILITIES AND SHAREHOLDERS’
EQUITY
Liabilities:
Unpaid losses and loss adjustment
expenses
$
840,176
$
850,599
Unearned premiums
183,362
182,852
Ceded balances payable
963
2,642
Federal income tax payable
—
1,595
Contingent commissions
5,203
5,632
Lease liabilities
10,836
12,733
Other liabilities
33,851
24,770
Total liabilities
$
1,074,391
$
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: 11,181,998
and 11,042,670, respectively;
class A common shares outstanding:
9,894,230 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)
458,714
454,791
Accumulated other comprehensive income
(loss), net of tax
(7,847
)
(22,863
)
Retained earnings (1)
264,551
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
686,726
648,753
Total liabilities and shareholders’
equity
$
1,761,117
$
1,729,576
(1) Since the Company’s initial public
offering in 2003, the Company has returned $624 million to
shareholders, including $522 million in share repurchases and $102
million in dividends/distributions.
Segment Data for the Nine
Months Ended September 30, 2024 and 2023
(Dollars in millions)
Underwriting Income for the Nine Months Ended September
30,
Penn-America
Non-Core Operations
Consolidated
2024
2023
2024
2023
2024
2023
Revenues:
Gross written premiums
$
297.9
$
277.4
$
(3.9
)
$
54.6
$
294.0
$
332.0
Net written premiums
$
290.9
$
266.8
$
(3.9
)
$
50.7
$
287.0
$
317.5
Net earned premiums
$
272.5
$
266.7
$
12.3
$
114.2
$
284.8
$
380.9
Underwriting income (loss), current
accident year
$
17.6
$
9.7
$
(2.3
)
$
(4.7
)
$
15.3
$
5.0
Underwriting income (loss)
$
17.6
$
(1.4
)
$
(3.0
)
$
5.3
$
14.6
$
3.9
Combined ratio analysis:
Loss ratio
Current accident year
55.7
%
58.8
%
62.6
%
65.1
%
56.0
%
60.7
%
Prior accident year
(0.1
%)
4.1
%
2.5
%
(9.5
%)
—
—
Calendar year loss ratio
55.6
%
62.9
%
65.1
%
55.6
%
56.0
%
60.7
%
Expense ratio
38.3
%
38.0
%
59.4
%
39.8
%
39.2
%
38.5
%
Combined ratio
93.9
%
100.9
%
124.5
%
95.4
%
95.2
%
99.2
%
Combined ratio, current accident year
93.9
%
96.7
%
118.9
%
104.2
%
95.0
%
98.9
%
Gross
Written Premiums for the Nine Months Ended September
30,
2024
2023
% Change
Penn-America:
Wholesale Commercial
$
186.9
$
174.4
7%
InsurTech
41.9
35.7
17%
Assumed Reinsurance
19.3
8.4
131%
248.1
218.5
14%
Specialty Products
49.8
58.9
(16%)
Penn-America
297.9
277.4
7%
Non-Core Operations
(3.9
)
54.6
(107%)
Total
$
294.0
$
332.0
(12%)
GLOBAL INDEMNITY GROUP,
LLC
SELECTED INVESTMENT
DATA
(Dollars in millions)
Market Value as of
(Unaudited) September 30,
2024
December 31, 2023
Fixed maturities
$
1,395.2
$
1,293.8
Cash and cash equivalents
31.0
38.0
Total fixed maturities and cash and cash
equivalents
1,426.2
1,331.8
Equities and other invested assets
41.8
54.7
Total cash and invested assets, gross
1,468.0
1,386.5
Receivable for securities
—
3.9
Total cash and invested assets, net
$
1,468.0
$
1,390.4
Total Pre-Tax Investment
Return
For the Three Months Ended
September 30, (Unaudited)
For the Nine Months Ended
September 30, (Unaudited)
2024
2023
2024
2023
Net investment income
$
16.5
$
14.2
$
46.3
$
39.4
Net realized investment gains (losses)
(0.5
)
(0.1
)
0.5
(2.4
)
Net unrealized investment gains
(losses)
12.8
(1.3
)
18.8
6.1
Net realized and unrealized investment
return
12.3
(1.4
)
19.3
3.7
Total investment return
$
28.8
$
12.8
$
65.6
$
43.1
Average total cash and invested assets
$
1,451.6
$
1,355.1
$
1,429.3
$
1,354.7
Total annualized investment return %
7.9
%
3.8
%
6.1
%
4.2
%
SUMMARY OF OPERATING
INCOME
(Dollars and shares in thousands,
except per share data)
For the Three Months Ended
September 30, (Unaudited)
For the Nine Months Ended
September 30, (Unaudited)
2024
2023
2024
2023
Operating income, net of tax (1)
$
13,162
$
7,801
$
33,790
$
21,493
Net realized investment gains (losses)
(402
)
(101
)
429
(1,962
)
Net income
$
12,760
$
7,700
$
34,219
$
19,531
Weighted average shares outstanding –
diluted
13,801
13,814
13,684
13,799
Operating income per share – diluted
(2)
$
0.95
$
0.56
$
2.45
$
1.53
(1) Operating income, net of tax, excludes
preferred shareholder distributions of $0.1 million for each of the
three months ended September 30, 2024 and 2023 and $0.3 million for
each of the nine months ended September 30, 2024 and 2023.
(2) The operating income per share
calculation is net of preferred shareholder distributions of $0.1
million for each of the three months ended September 30, 2024 and
2023 and $0.3 million for each of the nine months ended September
30, 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), 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.
The insurance companies manage the distribution of the Company's
core product offerings through Penn-America. The Company also has a
Non-Core Operations segment that contains lines of business that
have been de-emphasized or are no longer being written.
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/20241105002086/en/
Stephen W. Ries Head of Investor Relations (610) 668-3270
sries@gbli.com
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