Global Indemnity Group, LLC Reports Third Quarter 2024 Results

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 [phone] [e-mail]