Global Indemnity Group, LLC (NYSE:GBLI) (the “Company”) today
reported net income available to shareholders of $11.3 million for
the three months ended March 31, 2024 compared to $2.4 million for
the same period in 2023.
Highlights for the 1st quarter of 2024
- The increase in net income available to shareholders was driven
by strong underwriting results in the Penn-America excess and
surplus lines business, reflected in a 54.8% Loss Ratio and 94.0%
Combined Ratio, and a 21% increase in investment income to $14.5
million in 2024 due to steps taken by the Company to position it to
take advantage of rising interest rates.
- Gross written premiums declined 24.0% to $93.5 million for 2024
from $123.0 in the same period in 2023 due to runoff of business in
the Company’s Non-Core segment.
- Book value per share increased to $48.18 at March 31, 2024 from
$47.53 at December 31, 2023, an increase of 2.1% including
dividends paid of $0.35 per share in 2024.
- Dividend per share increased 40% to $0.35 in 2024 from $0.25 in
the same period in 2023.
Consolidated Selected
Operating and Balance Sheet Information
(Dollars in millions, except per
share data)
For the Three Months
Ended
March 31,
2024
2023
Net income available to shareholders
$
11.3
$
2.4
Net income available to shareholders per
share
$
0.82
$
0.17
Adjusted operating income
$
10.7
$
3.7
Adjusted operating income per share
$
0.77
$
0.26
Underwriting income (loss)
$
5.3
$
(1.1
)
Investment income
$
14.5
$
12.0
Gross written premiums
$
93.5
$
123.0
Combined ratio analysis:
Loss ratio
55.3
%
62.8
%
Expense ratio
39.6
%
38.2
%
Combined ratio (1)
94.9
%
101.0
%
As of March 31,
As of December 31,
2024
2023
Book value per share (2)
$
48.18
$
47.53
Book value per share plus cumulative
dividends and excluding AOCI
$
56.00
$
55.22
Shareholders’ equity (3)
$
659.5
$
648.8
Cash and invested assets (4)
$
1,417.3
$
1,390.4
Shares Outstanding (in millions)
13.6
13.6
(1) 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.
(2) Net of cumulative Company
distributions to common shareholders totaling $6.35 per share and
$6.00 per share as of March 31, 2024 and December 31, 2023,
respectively.
(3) Shareholders’ equity includes $4
million of series A cumulative fixed rate preferred shares.
(4) Including receivable for securities
matured.
Business Highlights for the
Three Months Ended March 31, 2024 and 2023
(Dollars in millions)
Select
Underwriting Income Results
For the Three Months Ended
March 31,
Penn-America
Non-Core Operations
Consolidated
2024
2023
2024
2023
2024
2023
Revenues:
Gross written premiums
$
94.0
$
95.4
$
(0.5
)
$
27.6
$
93.5
$
123.0
Net written premiums
$
92.6
$
91.2
$
(0.5
)
$
24.7
$
92.1
$
115.9
Net earned premiums
$
89.1
$
90.6
$
7.5
$
49.5
$
96.6
$
140.1
Underwriting income (loss), current
accident year
$
5.7
$
(0.8
)
$
(0.4
)
$
0.2
$
5.3
$
(0.6
)
Underwriting income (loss)
$
5.6
$
(3.1
)
$
(0.3
)
$
2.0
$
5.3
$
(1.1
)
Combined ratio analysis:
Loss ratio
Current accident year
54.8
%
63.0
%
60.6
%
62.5
%
55.3
%
62.8
%
Prior accident year
0.1
%
2.4
%
(0.5
%)
(4.4
%)
0.0
%
0.0
%
Calendar year loss ratio
54.9
%
65.4
%
60.1
%
58.1
%
55.3
%
62.8
%
Expense ratio
39.2
%
38.3
%
44.9
%
37.9
%
39.6
%
38.2
%
Combined ratio
94.1
%
103.7
%
105.0
%
96.0
%
94.9
%
101.0
%
Combined ratio, current accident year
94.0
%
101.2
%
105.5
%
99.7
%
94.9
%
100.6
%
Select
Premium Data
Three Months Ended March
31,
Gross Written Premiums
Net Written Premiums
2024
2023
% Change
2024
2023
% Change
Penn-America:
Wholesale Commercial
$
61.0
$
58.3
4.7%
$
59.0
$
56.8
4.0%
InsurTech
12.5
10.7
17.0%
12.0
9.6
24.6%
Assumed Reinsurance
2.9
2.4
20.9%
2.9
2.4
20.9%
76.4
71.4
7.1%
73.9
68.8
7.5%
Programs
17.6
24.0
(26.7%)
18.7
22.4
(16.5%)
Penn-America
94.0
95.4
(1.4%)
92.6
91.2
1.6%
Non-Core Operations
(0.5
)
27.6
(102.0%)
(0.5
)
24.7
(102.1%)
Total
$
93.5
$
123.0
(24.0%)
$
92.1
$
115.9
(20.5%)
- Penn-America’s gross written premiums for the 2024 was $94.0
million slightly below $95.4 million in 2023.
- In aggregate for Wholesale Commercial, InsurTech, and Assumed
Reinsurance gross written premiums business grew by 7.1% in 2024.
Growth is driven by organic agency growth, new agents, and new
products.
- Programs’ gross written premiums declined 26.7%; Excluding
programs terminated in 2023 that did not meet our long-term growth
and underwriting income expectations, Programs’ gross written
premiums declined 11.9% in 2024.
- Penn-Amerca’s current accident year underwriting income
improved to $5.7 million in 2024 compared to an underwriting loss
of $0.8 million in 2023 mainly driven by improved experience on
non-catastrophe related property business. Combined ratio improved
to 94.0% in 2024 from 101.2% in 2023.
- Penn-America’s current accident year loss ratio improved 8.2
points to 54.8% in 2024.
- Property loss ratio improved 18.6 points to 50.1% due to
improved performance on non-catastrophe related business;
catastrophe losses were $3.3 million in 2024 and 2023.
- Casualty loss ratio was 58.6% in 2024 compared to 58.9% in
2023.
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,
2024
2023
Gross written premiums
$
93,488
$
122,985
Net written premiums
$
92,085
$
115,861
Net earned premiums
$
96,579
$
140,072
Net investment income
14,520
12,008
Net realized investment gains (losses)
847
(1,520
)
Other income
345
354
Total revenues
112,291
150,914
Net losses and loss adjustment
expenses
53,384
88,001
Acquisition costs and other underwriting
expenses
38,269
53,478
Corporate and other operating expenses
6,373
6,368
Income before income taxes
14,265
3,067
Income tax expense
2,899
573
Net income
11,366
2,494
Less: Preferred stock distributions
110
110
Net income available to common
shareholders
$
11,256
$
2,384
Per share data:
Net income available to common
shareholders
Basic
$
0.83
$
0.17
Diluted
$
0.82
$
0.17
Weighted-average number of shares
outstanding
Basic
13,579
13,671
Diluted
13,687
13,929
Cash distributions declared per common
share
$
0.35
$
0.25
Combined ratio analysis:
Loss ratio
55.3
%
62.8
%
Expense ratio
39.6
%
38.2
%
Combined ratio
94.9
%
101.0
%
GLOBAL INDEMNITY GROUP,
LLC
CONSOLIDATED BALANCE
SHEETS
(Dollars in thousands)
(Unaudited)
March 31, 2024
December 31, 2023
ASSETS
Fixed maturities:
Available for sale, at fair value
(amortized cost: $1,250,975 and $1,322,092; net of allowance for
expected credit losses of $0 at March 31, 2024 and December 31,
2023)
$
1,226,309
$
1,293,793
Equity securities, at fair value
17,045
16,508
Other invested assets
34,021
38,236
Total investments
1,277,375
1,348,537
Cash and cash equivalents
38,857
38,037
Premium receivables, net of allowance for
expected credit losses of
$4,423 at March 31, 2024 and $4,796 at
December 31, 2023
92,440
102,158
Reinsurance receivables, net of allowance
for expected credit losses of
$8,992 at March 31, 2024 and December 31,
2023
77,664
80,439
Funds held by ceding insurers
17,395
16,989
Deferred federal income taxes
33,224
36,802
Deferred acquisition costs
40,231
42,445
Intangible assets
14,368
14,456
Goodwill
4,820
4,820
Prepaid reinsurance premiums
3,229
4,958
Receivable for securities matured
101,091
3,858
Lease right of use assets
9,288
9,715
Other assets
18,260
26,362
Total assets
$
1,728,242
$
1,729,576
LIABILITIES AND SHAREHOLDERS’
EQUITY
Liabilities:
Unpaid losses and loss adjustment
expenses
$
853,602
$
850,599
Unearned premiums
176,630
182,852
Ceded balances payable
1,651
2,642
Federal income tax payable
1,600
1,595
Contingent commissions
2,598
5,632
Lease liabilities
11,910
12,733
Other liabilities
20,756
24,770
Total liabilities
$
1,068,747
$
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: 11,082,004
and 11,042,670, respectively;
class A common shares outstanding:
9,810,763 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)
456,179
454,791
Accumulated other comprehensive income
(loss), net of tax
(19,995
)
(22,863
)
Retained earnings (1)
251,474
244,988
Class A common shares in treasury, at
cost: 1,271,241 and 1,271,241 shares, respectively
(32,163
)
(32,163
)
Total shareholders’ equity
659,495
648,753
Total liabilities and shareholders’
equity
$
1,728,242
$
1,729,576
(1)
Since the Company’s initial public
offering in 2003, the Company has returned $614 million to
shareholders, including $522 million in share repurchases and $92
million in dividends/distributions.
GLOBAL INDEMNITY GROUP,
LLC
SELECTED INVESTMENT
DATA
(Dollars in millions)
Market Value as of
(Unaudited)
March 31, 2024
December 31, 2023
Fixed maturities
$
1,226.3
$
1,293.8
Cash and cash equivalents
38.9
38.0
Total bonds and cash and cash
equivalents
1,265.2
1,331.8
Equities and other invested assets
51.0
54.7
Total cash and invested assets, gross
1,316.2
1,386.5
Receivable for securities matured
101.1
3.9
Total cash and invested assets, net
$
1,417.3
$
1,390.4
Total Investment Return
(1)
For the Three Months
Ended
March 31,
(Unaudited)
2024
2023
Net investment income
$
14.5
$
12.0
Net realized investment gains (losses)
0.8
(1.5
)
Net unrealized investment gains
(losses)
3.6
10.5
Net realized and unrealized investment
return
4.4
9.0
Total investment return
$
18.9
$
21.0
Average total cash and invested assets
$
1,403.9
$
1,344.9
Total quarterly investment return %
1.3
%
1.6
%
Total annualized investment return %
5.4
%
6.2
%
(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,
2024
2023
Adjusted operating income, net of tax
(1)
$
10,692
$
3,716
Net realized investment gains (losses)
674
(1,222
)
Net income
$
11,366
$
2,494
Weighted average shares outstanding –
basic
13,579
13,671
Weighted average shares outstanding –
diluted
13,687
13,929
Adjusted operating income per share –
basic (2)
$
0.78
$
0.26
Adjusted operating income per share –
diluted (2)
$
0.77
$
0.26
(1)
Adjusted operating income, net of tax,
excludes preferred shareholder distributions of $0.1 million for
each of the three months ended March 31, 2024 and 2023.
(2)
The adjusted operating income per share
calculation is net of preferred shareholder distributions of $0.1
million for each of the three months ended March 31, 2024 and
2023.
Note Regarding Adjusted Operating Income
Adjusted 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.
Adjusted 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.
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/20240507667883/en/
Stephen W. Ries Head of Investor Relations (610) 668-3270
sries@gbli.com
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