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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Global Indemnity Group LLC | NYSE:GBLI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 30.979 | 0 | 09:09:54 |
Global Indemnity Group, LLC (NYSE:GBLI) (the “Company”) today reported net income available to shareholders for the three months ended March 31, 2023, of $2.4 million compared to net loss available to shareholders of $14.9 million for the corresponding period in 2022. Adjusted operating income, which excludes realized gains and losses and the results of Exited Lines, was $3.4 million for the three months ended March 31, 2023, compared to $3.8 million for the three months ended March 31, 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 March 31,
2023
2022
Gross Written Premiums
$
123.0
$
191.0
Net Written Premiums
$
115.9
$
159.5
Net Earned Premiums
$
140.1
$
148.8
Net income (loss) available to shareholders
$
2.4
$
(14.9
)
Net income (loss) from Continuing Lines
$
2.1
$
(16.8
)
Net income from Exited Lines (1)
$
0.3
$
1.9
Net income (loss) available to shareholders per share
$
0.17
$
(1.03
)
Adjusted operating income
$
3.4
$
3.8
Adjusted operating income per share
$
0.24
$
0.25
Combined ratio analysis:
Loss ratio
62.8
%
56.9
%
Expense ratio
38.2
%
38.1
%
Combined ratio
101.0
%
95.0
%
(1)
Underwriting loss from Exited Lines, net of tax.
As of
March 31,
2023
As of
December 31,
2022
Book value per share (1)
$
45.68
$
44.87
Book value per share plus cumulative dividends and excluding AOCI
$
53.46
$
52.98
Shareholders’ equity (2)
$
628.2
$
626.2
Cash and invested assets (3)
$
1,347.1
$
1,342.6
Shares Outstanding (in millions)
13.7
13.9
(1) Net of cumulative Company distributions to common shareholders totaling $5.25 per share and $5.00 per share as of 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
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 $1.1 million in 2023 and $3.2 million in 2022 in habitational lines in New York City and (ii) terminated gross written premiums within Targeted Specialty E&S of $0.4 million in 2023 and $10.7 million in 2022 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 Months Ended March 31, 2023 and 2022
For the Three Months Ended March 31, 2023
(Dollars in thousands)
Continuing Lines
Exited Lines
Total
Revenues:
Gross written premiums
$
118,924
$
4,061
$
122,985
Net written premiums
$
114,650
$
1,211
$
115,861
Net earned premiums
$
128,029
$
12,043
$
140,072
Other income
258
77
335
Total revenues
128,287
12,120
140,407
Losses and Expenses:
Net losses and loss adjustment expenses
81,382
6,619
88,001
Acquisition costs and other underwriting expenses
48,342
5,136
53,478
Income (loss) from segments
$
(1,437)
$
365
$
(1,072)
Combined ratio analysis:
Loss ratio
63.6%
55.0%
62.8%
Expense ratio
37.8%
42.6%
38.2%
Combined ratio
101.4%
97.6%
101.0%
For the Three Months Ended March 31, 2022
(Dollars in thousands)
Continuing Lines
Exited Lines
Total
Revenues:
Gross written premiums
$
143,844
$
47,139
$
190,983
Net written premiums
$
139,159
$
20,323
$
159,482
Net earned premiums
$
125,495
$
23,328
$
148,823
Other income
239
200
439
Total revenues
125,734
23,528
149,262
Losses and Expenses:
Net losses and loss adjustment expenses
74,718
9,977
84,695
Acquisition costs and other underwriting expenses
45,487
11,205
56,692
Income from segments
$
5,529
$
2,346
$
7,875
Combined ratio analysis:
Loss ratio
59.5%
42.8%
56.9%
Expense ratio
36.2%
48.0%
38.1%
Combined ratio
95.7%
90.8%
95.0%
Global Indemnity Group, LLC’s Gross Written and Net Written Premiums Results by Segment for the Three Months Ended March 31, 2023 and 2022
Three Months Ended March 31,
Gross Written Premiums
Net Written Premiums
2023
2022
%
Change
2023
2022
%
Change
Commercial Specialty
$ 95,508
$ 102,848
(7.1%)
$ 91,234
$ 98,163
(7.1%)
Reinsurance Operations
23,416
40,996
(42.9%)
23,416
40,996
(42.9%)
Continuing Lines
118,924
143,844
(17.3%)
114,650
139,159
(17.6%)
Exited Lines
4,061
47,139
(91.4%)
1,211
20,323
(94.0%)
Total
$ 122,985
$ 190,983
(35.6%)
$ 115,861
$ 159,482
(27.4%)
Commercial Specialty: Gross written premiums and net written premiums both decreased 7.1% for the three months ended March 31, 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 18.7% to $57.3 million in 2023 from $48.2 million 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 9.8% to $36.8 million in 2023 from $40.8 million 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 42.9% for the three months ended March 31, 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 91.4% and 94.0%, respectively, for the three months ended March 31, 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 in 2022.
Global Indemnity Group, LLC’s Combined Ratio for the Three Months Ended March 31, 2023 and 2022
For the Continuing Lines business, the combined ratio was 101.4% for the three months ended March 31, 2023, (Loss Ratio 63.6% and Expense Ratio 37.8%) as compared to 95.7% (Loss Ratio 59.5% and Expense Ratio 36.2%) for the three months ended March 31, 2022. The consolidated combined ratio was 101.0% for the three months ended March 31, 2023, (Loss Ratio 62.8% and Expense Ratio 38.2%) as compared to 95.0% (Loss Ratio 56.9% and Expense Ratio 38.1%) for the three months ended March 31, 2022.
### 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 March 31,
2023
2022
Gross written premiums
$
122,985
$
190,983
Net written premiums
$
115,861
$
159,482
Net earned premiums
$
140,072
$
148,823
Net investment income
12,008
6,592
Net realized investment losses
(1,520
)
(25,385
)
Other income
354
426
Total revenues
150,914
130,456
Net losses and loss adjustment expenses
88,001
84,695
Acquisition costs and other underwriting expenses
53,478
56,692
Corporate and other operating expenses
6,368
4,660
Interest expense
-
2,595
Income (loss) before income taxes
3,067
(18,186
)
Income tax expense (benefit)
573
(3,413
)
Net income (loss)
2,494
(14,773
)
Less: Preferred stock distributions
110
110
Net income (loss) available to common shareholders
$
2,384
$
(14,883
)
Per share data:
Net income (loss) available to common shareholders
Basic
$
0.17
$
(1.03
)
Diluted (1)
$
0.17
$
(1.03
)
Weighted-average number of shares outstanding
Basic
13,671
14,515
Diluted (1)
13,929
14,515
Cash distributions declared per common share
$
0.25
$
0.25
Combined ratio analysis: (2)
Loss ratio
62.8
%
56.9
%
Expense ratio
38.2
%
38.1
%
Combined ratio
101.0
%
95.0
%
(1)
For the three months ended March 31, 2022, weighted-average shares outstanding – basic was used to calculate diluted earnings per share due to a net loss for the 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)
ASSETS
(Unaudited) March 31, 2023
December 31, 2022
Fixed Maturities:
Available for sale, at fair value
(amortized cost: 2023 - $1,300,148 and 2022 - $1,301,723; net
of allowance for expected credit losses of: $0 in 2023 and 2022)
$
1,257,357
$
1,248,198
Equity securities, at fair value
17,342
17,520
Other invested assets
37,669
38,176
Total investments
1,312,368
1,303,894
Cash and cash equivalents
35,737
38,846
Premium receivables, net of allowance for expected credit losses of
$3,379 at March 31, 2023 and $3,322 at December 31, 2022
154,624
168,743
Reinsurance receivables, net of allowance for expected credit losses of
$8,992 at March 31, 2023 and December 31, 2022
86,772
85,721
Funds held by ceding insurers
17,339
19,191
Deferred federal income taxes
44,489
47,099
Deferred acquisition costs
58,354
64,894
Intangible assets
14,721
14,810
Goodwill
4,820
4,820
Prepaid reinsurance premiums
14,224
17,421
Lease right of use assets
11,265
11,739
Other assets
22,565
23,597
Total assets
$
1,777,278
$
1,800,775
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses
$
857,520
$
832,404
Unearned premiums
241,945
269,353
Ceded balances payable
5,997
17,241
Payable for securities purchased
1,008
66
Contingent commissions
3,772
8,816
Lease liabilities
15,042
15,701
Other liabilities
23,756
30,965
Total liabilities
1,149,040
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 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: 10,928,380 and 10,876,041,
respectively; class A common shares outstanding: 9,872,697 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)
452,385
451,305
Accumulated other comprehensive income, net of taxes
(34,615
)
(43,058
)
Retained earnings (1)
232,506
233,468
Class A common shares in treasury, at cost: 1,055,683 and 802,381 shares, respectively
(26,038
)
(19,486
)
Total shareholders’ equity
628,238
626,229
Total liabilities and shareholders’ equity
$
1,777,278
$
1,800,775
(1)
Since the Company’s initial public offering in 2003, the Company has returned $594 million to shareholders, including $517 million in share repurchases and $77 million in dividends/distributions.
GLOBAL INDEMNITY GROUP, LLC
SELECTED INVESTMENT DATA
(Dollars in millions)
Market Value as of
(Unaudited) March 31, 2023
December 31, 2022
Fixed maturities
$
1,257.4
$
1,248.2
Cash and cash equivalents
35.7
38.8
Total bonds and cash and cash equivalents
1,293.1
1,287.0
Equities and other invested assets
55.0
55.7
Total cash and invested assets, gross
1,348.1
1,342.7
Payable for securities purchased
(1.0
)
(0.1
)
Total cash and invested assets, net
$
1,347.1
$
1,342.6
Total Investment Return (1)
For the Three Months Ended March 31, (unaudited)
2023
2022
Net investment income
$
12.0
$
6.6
Net realized investment losses
(1.5
)
(25.4
)
Net unrealized investment gains (losses)
10.5
(23.8
)
Net realized and unrealized investment return
9.0
(49.2
)
Total investment return
$
21.0
$
(42.6
)
Average total cash and invested assets
$
1,344.9
$
1,498.3
Total investment return %
1.6
%
(2.8
%)
(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 March 31
2023
2022
Adjusted operating income, net of tax
$
3,428
$
3,803
Adjustments:
Underwriting income from Exited Lines
288
1,853
Adjusted operating income including Exited Lines, net of tax (1)
3,716
5,656
Net realized investment losses
(1,222
)
(20,429
)
Net income (loss)
$
2,494
$
(14,773
)
Weighted average shares outstanding – basic
13,671
14,515
Weighted average shares outstanding – diluted
13,929
14,701
Adjusted operating income per share – basic (2)
$
0.24
$
0.25
Adjusted operating income per share – diluted (2)
$
0.24
$
0.25
(1)
Adjusted operating income including Exited Lines, net of tax, excludes preferred shareholder distributions of $0.11 million for each of the three months ended March 31, 2023 and 2022, respectively.
(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 March 31, 2023 and 2022, respectively.
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 March 31,
2023
2022
Losses $
Loss Ratio
Losses $
Loss Ratio
Casualty
Gross losses and loss adjustment expenses excluding terminated business (1)
$28,810
56.2%
$27,508
56.2%
Gross losses and loss adjustment expenses on terminated business (1)
4,342
91.7%
5,127
59.7%
Gross losses and loss adjustment expenses (1)
$33,152
59.2%
$ 32,635
56.7%
Ceded losses and loss adjustment expenses
(415)
(366)
Net losses and loss adjustment expenses (2)
$32,737
59.0%
$ 32,269
56.8%
Property
Gross losses and loss adjustment expenses excluding terminated business (1)
$26,497
65.2%
$20,211
53.2%
Gross losses and loss adjustment expenses on terminated business (1)
57
8.2%
40
6.8%
Gross losses and loss adjustment expenses (1)
$ 26,554
64.3%
$ 20,251
52.5%
Ceded losses and loss adjustment expenses
(650)
(747)
Net losses and loss adjustment expenses (2)
$ 25,904
68.7%
$ 19,504
56.8%
Commercial Specialty
Gross losses and loss adjustment expenses excluding terminated business (1)
$55,307
60.2%
$47,719
54.9%
Gross losses and loss adjustment expenses on terminated business (1)
4,399
81.2%
5,167
56.3%
Gross losses and loss adjustment expenses (1)
$ 59,706
61.4%
$ 52,886
55.0%
Ceded losses and loss adjustment expenses
(1,065)
(1,113)
Net losses and loss adjustment expenses (2)
$ 58,641
62.9%
$ 51,773
56.8%
(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 March 31,
2023
2022
Package Specialty E&S
Gross written premiums excluding terminated business (1)
$
57,277
$
48,249
Gross written premiums from terminated business
1,058
3,152
Total gross written premiums (2)
$
58,335
$
51,401
Targeted Specialty E&S
Gross written premiums excluding terminated business (1)
$
36,778
$
40,761
Gross written premiums from terminated business
395
10,686
Total gross written premiums (2)
$
37,173
$
51,447
Commercial Specialty
Gross written premiums excluding terminated business (1)
$
94,055
$
89,010
Gross written premiums from terminated business
1,453
13,838
Total gross written premiums (2)
$
95,508
$
102,848
(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/20230509006242/en/
Stephen W. Ries Head of Investor Relations (610) 668-3270 sries@gbli.com
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