- Growth in Gross Written Premium - An increase of 13.0% and
23.0% in gross written premiums for Continuing Lines for the three
and nine months ended September 30, 2022, respectively, compared to
the corresponding periods in 2021.
- The combined ratio for Continuing Lines was 96.9% for the three
months ended September 30, 2022 (Loss Ratio 58.3% and Expense Ratio
38.6%) and 96.0% for the nine months ended September 30, 2022 (Loss
Ratio 58.4% and Expense Ratio 37.6%).
- Lower Catastrophes – Strategy to lower catastrophe exposure
resulted in catastrophe losses for Continuing Lines of $9.3 million
for the nine months ended September 30, 2022 compared to $20.5
million in 2021. Losses related to hurricane Ian are estimated to
be $1.5 million.
- Farm, Ranch and Stable renewal rights sold for $30.0 million to
Everett Cash Mutual to reinsure 100% of the business effective
August 8, 2022. Everett Cash Mutual will also purchase American
Reliable for book value which is expected to be $10 million at the
time of close, which, subject to regulatory approvals and customary
closing conditions, is expected to close in or before the first
quarter of 2023. Impairments and third party legal and advisory
expenses of $9.2 million related to these transactions were
recorded in the third quarter. Farm, Ranch and Stable is now
included in Exited Lines.
- Investment income for the three months ended September 30,
2022, was $8.4 million compared to $9.3 million for the three
months ended September 30, 2021. Investment income, excluding
alternative investments was $9.5 million for the three months ended
September 30, 2022, compared to $6.3 million for the three months
ended September 30, 2021. Investment income for the nine months
ended September 30, 2022 was $16.9 million compared to $29.8
million for the nine months ended September 30, 2021. Investment
income, excluding alternative investments was $22.8 million for the
nine months ended September 30, 2022, compared to $20.0 million for
the nine months ended September 30, 2021.
- Duration of the fixed income portfolio at September 30, 2022
was 1.7 years compared to duration of 3.0 years at December 31,
2021 and book yield on the portfolio increased from 2.2% at
December 31, 2021 to 3.1% at September 30, 2022. In reducing
duration and increasing yield, GBLI realized losses $33.1 million
for the nine months ended September 30, 2022. However, the Company
had realized gains of $2.2 million for the third quarter of
2022.
- The Company generated net income to shareholders of $23.6
million, or $1.60 per share, for the three months ended September
30, 2022, compared to net loss available to shareholders of $7.8
million, or $0.54 per share, for the corresponding period in 2021.
Net loss for the nine months ended September 30, 2022, was $3.5
million, or $0.24 per share, compared to net income available to
shareholders of $3.8 million, or $0.26 per share, for the
corresponding period in 2021. The net loss for the nine months
ended September 30, 2022 of $3.5 million was primarily the result
of substantially shortening the duration of the Company’s fixed
income securities in its investment portfolio, the impact of an
underperforming alternative investment, and the write off of debt
issuance costs related to debt redemption of $130 million in April
2022 partially offset by proceeds of $30.0 million from the sale of
Farm, Ranch & Stable renewal rights.
- Book value increased $2.3 million from $641.3 million at June
30, 2022 to $643.6 million at September 30, 2022. Book value
decreased $63.0 million from $706.6 million at December 31, 2021 to
$643.6 million at September 30, 2022. Book value per share
increased to $43.76 from $43.68 at June 30, 2022 and decreased from
$48.44 at December 31, 2021 to $43.76 at September 30, 2022.
Other Items:
- On October 21, 2022 Joseph W. Brown was appointed as Chief
Executive Officer. Mr. Brown has served as a GBLI director since
December 2015 and will remain on GBLI’s board of directors. Mr.
Brown also has close to 50 years of insurance industry experience,
including prior tenures as a director, chairman, and chief
executive officer of MBIA, Inc., chairman of the board of Safeco,
chairman of the board of Talegen Holdings, Inc., chairman of Noblr,
Inc. and president and chief executive officer of Fireman’s Fund
Insurance Company.
- On October 21, 2022 GBLI also announced a stock repurchase
program beginning in the fourth quarter of 2022. Repurchases of up
to $32 million of GBLI’s currently outstanding A Common Shares have
been authorized. The authorization to repurchase expires on
December 31, 2027.
- Effective October 21, 2022, Jason B. Hurwitz rejoined the
Company’s Board of Directors.
- Effective November 1, 2022, James R. Holt, Jr. ceased to be a
Fox Paine Entities’ appointed member of the Company’s Board of
Directors.
- Effective November 1, 2022, Gary Tolman became a Fox Paine
Entities’ appointed member of the Company’s Board of
Directors.
Global Indemnity Group, LLC (NYSE:GBLI) (the “Company”) today
reported adjusted operating income, which excludes realized gains
and losses, the results of Exited Lines, the loss on the
extinguishment of debt, and the impact of the sale of the Farm,
Ranch & Stable renewal rights, of $12.5 million for the nine
months ended September 30, 2022, compared to $12.0 million for the
nine months ended September 30, 2021. Adjusted operating income,
was $5.3 million for the three months ended September 30, 2022,
compared to $0.6 million for the corresponding period in 2021. Net
loss available to shareholders for the nine months ended September
30, 2022, was $3.5 million compared to net income available to
shareholders of $3.8 million for the corresponding period in 2021.
Net income available to shareholders for the three months ended
September 30, 2022 was $23.6 million, compared to net loss
available to shareholders of $7.8 million for the corresponding
period in 2021.
Selected Operating and Balance
Sheet
Consolidated Results Including
Continuing Lines and Exited Lines
(Dollars in millions, except per
share data)
For the Three Months
Ended September
30,
For the Nine Months
Ended September
30,
2022
2021
2022
2021
Gross Written Premiums
$
175.8
$
174.3
$
563.6
$
513.1
Net Written Premiums
$
142.8
$
162.3
$
469.5
$
470.6
Net Earned Premiums
$
153.6
$
157.6
$
458.2
$
450.7
Net income (loss) available to
shareholders
$
23.6
$
(7.8
)
$
(3.5
)
$
3.8
Net income (loss) from Continuing
Lines
$
23.4
$
(0.1
)
$
(1.9
)
$
18.7
Net income (loss) from Exited Lines
(1)
$
0.2
$
(7.7
)
$
(1.6
)
$
(14.9
)
Net income (loss) available to
shareholders per share
$
1.60
$
(0.54
)
$
(0.24
)
$
0.26
Adjusted operating income
$
5.3
$
0.6
$
12.5
$
12.0
Adjusted operating income per share
$
0.35
$
0.03
$
0.83
$
0.80
Combined ratio analysis:
Loss ratio
57.6
%
69.3
%
58.0
%
64.5
%
Expense ratio
39.6
%
37.6
%
39.0
%
38.0
%
Combined ratio
97.2
%
106.9
%
97.0
%
102.5
%
(1) Underwriting income (loss) from Exited
Lines, net of tax.
As of
September 30,
2022
As of
June 30,
2022
As of
March 31,
2022
As of
December 31,
2021
Book value per share (1)
$
43.76
$
43.68
$
45.78
$
48.44
Shareholders’ equity (2)
$
643.6
$
641.3
$
669.7
$
706.6
Cash and invested assets (3)
$
1,356.1
$
1,326.5
$
1,464.6
$
1,532.0
(1) Net of cumulative Company
distributions/dividends to common shareholders totaling $4.75 per
share, $4.50 per share, $4.25 per share and $4.00 per share as of
September 30, 2022, June 30, 2022, March 31, 2022 and December 31,
2021, respectively.
(2) Shareholders’ equity includes $4
million of series A cumulative fixed rate preferred shares.
(3) Including receivable/(payable) for
securities sold/(purchased).
Global Indemnity Group, LLC’s Business Segment Information
for the Three and Nine Months Ended September 30, 2022 and
2021
For the Three Months Ended
September 30, 2022
Continuing
Exited
(Dollars in thousands)
Lines
Lines
Total
Revenues:
Gross written premiums
$
144,315
$
31,512
$
175,827
Net written premiums
$
139,634
$
3,201
$
142,835
Net earned premiums
$
135,970
$
17,674
$
153,644
Other income
234
145
379
Total revenues
136,204
17,819
154,023
Losses and Expenses:
Net losses and loss adjustment
expenses
79,312
9,147
88,459
Acquisition costs and other
underwriting expenses
52,513
8,363
60,876
Income (loss) from segments
$
4,379
$
309
$
4,688
Combined ratio analysis:
Loss ratio
58.3%
51.8%
57.6%
Expense ratio
38.6%
47.3%
39.6%
Combined ratio
96.9%
99.1%
97.2%
For the Three Months Ended
September 30, 2021
Continuing
Exited
(Dollars in thousands)
Lines
Lines
Total
Revenues:
Gross written premiums
$
127,698
$
46,605
$
174,303
Net written premiums
$
122,570
$
39,729
$
162,299
Net earned premiums
$
113,042
$
44,523
$
157,565
Other income
169
245
414
Total revenues
113,211
44,768
157,979
Losses and Expenses:
Net losses and loss adjustment
expenses
73,413
35,782
109,195
Acquisition costs and other
underwriting expenses
40,535
18,747
59,282
Loss from segments
$
(737)
$
(9,761)
$
(10,498)
Combined ratio analysis:
Loss ratio
64.9%
80.4%
69.3%
Expense ratio
35.9%
42.1%
37.6%
Combined ratio
100.8%
122.5%
106.9%
For the Nine Months Ended
September 30, 2022
Continuing
Exited
(Dollars in thousands)
Lines
Lines
Total
Revenues:
Gross written premiums
$
446,217
$
117,416
$
563,633
Net written premiums
$
426,957
$
42,518
$
469,475
Net earned premiums
$
396,464
$
61,752
$
458,216
Other income
672
320
992
Total revenues
397,136
62,072
459,208
Losses and Expenses:
Net losses and loss adjustment
expenses
231,345
34,427
265,772
Acquisition costs and other
underwriting expenses
148,970
29,696
178,666
Income (loss) from segments
$
16,821
$
(2,051)
$
14,770
Combined ratio analysis:
Loss ratio
58.4%
55.8%
58.0%
Expense ratio
37.6%
48.1%
39.0%
Combined ratio
96.0%
103.9%
97.0%
For the Nine Months Ended
September 30, 2021
Continuing
Exited
(Dollars in thousands)
Lines
Lines
Total
Revenues:
Gross written premiums
$
362,876
$
150,221
$
513,097
Net written premiums
$
342,827
$
127,808
$
470,635
Net earned premiums
$
308,558
$
142,115
$
450,673
Other income
579
755
1,334
Total revenues
309,137
142,870
452,007
Losses and Expenses:
Net losses and loss adjustment
expenses
188,347
102,569
290,916
Acquisition costs and other
underwriting expenses
112,111
59,148
171,259
Income (loss) from segments
$
8,679
$
(18,847)
$
(10,168)
Combined ratio analysis:
Loss ratio
61.0%
72.2%
64.5%
Expense ratio
36.3%
41.6%
38.0%
Combined ratio
97.3%
113.8%
102.5%
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 release1
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.
[1] Disseminated pursuant to the "safe harbor" provisions of
Section 21E of the Security Exchange Act of 1934.
Selected Financial Data for the Three Months Ended September
30, 2022:
- Gross written premiums, net written premiums, and net earned
premiums excluding the Exited Lines (“Continuing Lines”), increased
13.0%, 13.9% and 20.3%, respectively. Consolidated gross written
premiums, net written premiums, and net earned premiums
increased/(decreased) 0.9%, (12.0%), and (2.5%), respectively.
- Underwriting income (loss) – For the Continuing Lines business,
underwriting income was $4.4 million in 2022 compared to
underwriting loss of $0.7 million in 2021.
- Excluding prior year development, underwriting income (loss)
from Continuing Lines was $2.9 million compared to ($2.8) million
in 2021.
- Consolidated underwriting income (loss) was $4.7 million in
2022 compared to ($10.5) million in 2021.
- Investment income – $8.4 million in 2022 ($9.5 million
excluding alternatives investments) compared to $9.3 million in
2021 ($6.3 million excluding alternative investments). The decrease
was primarily due to decreased returns from alternative investments
and a decrease in dividend income as a result of the liquidation of
the Company’s common stock portfolio during the first quarter of
2022. This reduction in investment income was partially offset by
an increase in investment income from fixed maturities.
- Realized gains/(losses) – $2.2 million in 2022 compared to
($0.3) million in 2021.
- Book value per share – Increase of $0.08 per share. Gain on
sale of Farm, Ranch & Stable renewals rights was offset by the
impact of rising interest rates.
- Tax expense/(benefit) – $7.4 million tax expense in 2022
compared to ($1.8) million tax benefit in 2021.
Selected Financial Data for the Nine Months Ended September
30, 2022:
- Gross written premiums, net written premiums, and net earned
premiums excluding the Exited Lines (“Continuing Lines”), increased
23.0%, 24.5% and 28.5%, respectively. Consolidated gross written
premiums, net written premiums, and net earned premiums
increased/(decreased) 9.8%, (0.2%), and 1.6%, respectively.
- Underwriting income – For the Continuing Lines business,
underwriting income was $16.8 million in 2022 compared to $8.7
million in 2021.
- Excluding prior year development, underwriting income (loss)
from Continuing Lines was $14.6 million compared to $3.5 million in
2021.
- Consolidated underwriting income (loss) was $14.8 million in
2022 compared to ($10.2) million in 2021.
- Investment income – $16.9 million in 2022 ($22.8 million
excluding alternative investments) compared to $29.8 million in
2021 ($20.0 million excluding alternative investments). The
decrease was primarily due to decreased returns from alternative
investments and a decrease in dividend income as a result of the
liquidation of the Company’s common stock portfolio during the
first quarter of 2022. This reduction in investment income was
partially offset by an increase in investment income from fixed
maturities.
- Realized gains/(losses) – ($33.1) million in 2022 compared to
$7.3 million in 2021. Realized losses in 2022 were primarily due to
the Company selling certain securities to offset anticipated rising
interest rates by shortening duration and accelerating future
maturities.
- Book value per share – Decrease of $4.68 per share mainly due
to rising interest rates. In addition to realized losses,
shareholders’ equity includes $51.7 million of net after-tax
unrealized losses.
- Tax expense/(benefit)– $3.4 million tax expense in 2022
compared to ($1.1) million tax benefit in 2021.
Global Indemnity Group, LLC’s Gross Written and Net Written
Premiums Results by Segment for the Three and Nine Months Ended
September 30, 2022 and 2021
Three Months Ended September
30,
Gross Written Premiums
Net Written Premiums
2022
2021
%
Change
2022
2021
%
Change
Commercial Specialty
$
100,598
$
97,950
2.7
%
$
95,917
$
92,822
3.3
%
Reinsurance Operations
43,717
29,748
47.0
%
43,717
29,748
47.0
%
Continuing Lines
144,315
127,698
13.0
%
139,634
122,570
13.9
%
Exited Lines
31,512
46,605
(32.4
%)
3,201
39,729
(91.9
%)
Total
$
175,827
$
174,303
0.9
%
$
142,835
$
162,299
(12.0
%)
Nine Months Ended September
30,
Gross Written Premiums
Net Written Premiums
2022
2021
%
Change
2022
2021
%
Change
Commercial Specialty
$
314,661
$
286,690
9.8
%
$
295,401
$
266,641
10.8
%
Reinsurance Operations
131,556
76,186
72.7
%
131,556
76,186
72.7
%
Continuing Lines
446,217
362,876
23.0
%
426,957
342,827
24.5
%
Exited Lines
117,416
150,221
(21.8
%)
42,518
127,808
(66.7
%)
Total
$
563,633
$
513,097
9.8
%
$
469,475
$
470,635
(0.2
%)
Commercial Specialty: Gross written premiums and net
written premiums increased 2.7% and 3.3%, respectively, for the
three months ended September 30, 2022 as compared to the same
period in 2021. Gross written premiums and net written premiums
increased 9.8% and 10.8%, respectively, for the nine months ended
September 30, 2022 as compared to the same period in 2021. The
growth in gross written premiums and net written premiums was
primarily driven by organic growth in existing programs, increased
pricing, and several new lines and programs. This growth in
premiums was partially offset by actions taken within Commercial
Specialty to improve underwriting results by not renewing
underperforming business.
Reinsurance Operations: Gross written premiums and net
written premiums both increased 47.0% for the three months ended
September 30, 2022 as compared to the same period in 2021. Gross
written premiums and net written premiums both increased 72.7% for
the nine months ended September 30, 2022 as compared to the same
period in 2021. The growth in gross written premiums and net
written premiums was primarily due to organic growth of existing
casualty treaties.
Exited Lines: Gross written premiums and net written
premiums decreased 32.4% and 91.9%, respectively, for the three
months ended September 30, 2022 as compared to the same period in
2021. Gross written premiums and net written premiums decreased
21.8% and 66.7%, respectively, for the nine months ended September
30, 2022 as compared to the same period in 2021. The decrease in
gross written premiums and net written premiums was primarily due
to exiting lines of business unrelated to the Company’s continuing
businesses.
Global Indemnity Group, LLC’s Combined Ratio for the Three
and Nine Months Ended September 30, 2022 and 2021
For the Continuing Lines business, the combined ratio was 96.9%
for the three months ended September 30, 2022, (Loss Ratio 58.3%
and Expense Ratio 38.6%) as compared to 100.8% (Loss Ratio 64.9%
and Expense Ratio 35.9%) for the three months ended September 30,
2021. The consolidated combined ratio was 97.2% for the three
months ended September 30, 2022, (Loss Ratio 57.6% and Expense
Ratio 39.6%) as compared to 106.9% (Loss Ratio 69.3% and Expense
Ratio 37.6%) for the three months ended September 30, 2021.
- For the continuing lines business, the accident year casualty
loss ratio improved by 3.9 points to 60.0% in 2022 from 63.9% in
2021. The consolidated accident year casualty loss ratio improved
by 3.8 points to 59.2% in 2022 from 63.0% in 2021. The improvement
in the continuing lines accident year casualty loss ratio is
primarily due to lower claims frequency as well as a change in the
mix of business. The improvement in the consolidated accident year
casualty loss ratio is primarily due to lower claims frequency and
severity as well as a change in the mix of business.
- For the continuing lines business, the accident year property
loss ratio improved by 14.1 points to 58.1% in 2022 from 72.2% in
2021. The consolidated accident year property loss ratio improved
by 17.6 points to 60.1% in 2022 from 77.7% in 2021. The improvement
in the continuing lines and the consolidated accident year property
loss ratio is primarily due to lower catastrophe claims
frequency.
For the Continuing Lines business, the combined ratio was 96.0%
for the nine months ended September 30, 2022, (Loss Ratio 58.4% and
Expense Ratio 37.6%) as compared to 97.3% (Loss Ratio 61.0% and
Expense Ratio 36.3%) for the nine months ended September 30, 2021.
The consolidated combined ratio was 97.0% for the nine months ended
September 30, 2022, (Loss Ratio 58.0% and Expense Ratio 39.0%) as
compared to 102.5% (Loss Ratio 64.5% and Expense Ratio 38.0%) for
the nine months ended September 30, 2021.
- For the continuing lines business, the accident year casualty
loss ratio improved by 1.2 points to 59.5% in 2022 from 60.7% in
2021. The consolidated accident year casualty loss ratio improved
by 0.9 points to 59.1% in 2022 from 60.0% in 2021. The improvement
in the continuing lines accident year casualty loss ratio is
primarily due to lower claims frequency as well as a change in the
mix of business. The improvement in the consolidated accident year
casualty loss ratio is primarily due to lower claims frequency and
severity as well as a change in the mix of business.
- For the continuing lines business, the accident year property
loss ratio improved by 9.0 points to 57.3% in 2022 from 66.3% in
2021. The consolidated accident year property loss ratio improved
by 6.5 points to 62.0% in 2022 from 68.5% in 2021. The improvement
in the continuing lines accident year property loss ratio is
primarily due to lower catastrophe claims frequency partially
offset by higher non-catastrophe claims severity. The improvement
in the consolidated accident year property loss ratio is primarily
due to lower catastrophe claims frequency.
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 September 30,
For the Nine Months
Ended September 30,
2022
2021
2022
2021
Gross written premiums
$
175,827
$
174,303
$
563,633
$
513,097
Ceded written premiums
(32,992
)
(12,004
)
(94,158
)
(42,462
)
Net written premiums
$
142,835
$
162,299
$
469,475
$
470,635
Net earned premiums
$
153,644
$
157,565
$
458,216
$
450,673
Net investment income
8,389
9,344
16,911
29,813
Net realized investment gains (losses)
2,234
(310
)
(33,067
)
7,342
Other income
30,316
389
30,839
1,287
Total revenues
194,583
166,988
472,899
489,115
Net losses and loss adjustment
expenses
88,459
109,195
265,772
290,916
Acquisition costs and other underwriting
expenses
60,876
59,282
178,666
171,259
Corporate and other operating expenses
14,064
5,387
21,718
15,992
Interest expense
-
2,596
3,004
7,887
Loss on extinguishment of debt
-
-
3,529
-
Income (loss) before income
taxes
31,184
(9,472
)
210
3,061
Income tax expense (benefit)
7,438
(1,759
)
3,399
(1,118
)
Net income (loss)
23,746
(7,713
)
(3,189
)
4,179
Less: Preferred stock distributions
110
110
330
330
Net income (loss) available to common
shareholders
$
23,636
$
(7,823
)
$
(3,519
)
$
3,849
Per share data:
Net income (loss) available to common
shareholders
Basic
$
1.62
$
(0.54
)
$
(0.24
)
$
0.27
Diluted (1)
$
1.60
$
(0.54
)
$
(0.24
)
$
0.26
Weighted-average number of shares
outstanding
Basic
14,590
14,445
14,550
14,413
Diluted (1)
14,796
14,445
14,550
14,651
Cash distributions declared per common
share
$
0.25
$
0.25
$
0.75
$
0.75
Combined ratio analysis: (2)
Loss ratio
57.6
%
69.3
%
58.0
%
64.5
%
Expense ratio
39.6
%
37.6
%
39.0
%
38.0
%
Combined ratio
97.2
%
106.9
%
97.0
%
102.5
%
(1)
For the three months ended September 30, 2021 and nine months
ended September 30, 2022, “weighted-average shares outstanding –
basic” was used to calculate “diluted earnings per share” due to a
net loss for each 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)
September 30,
2022
December 31, 2021
Fixed Maturities:
Available for sale, at fair value
(amortized cost: 2022 - $1,337,014 and
2021 - $1,193,746; net
of allowance for expected credit losses
of: $0 in 2022 and 2021)
$
1,281,074
$
1,201,866
Equity securities, at fair value
18,006
99,978
Other invested assets
38,222
152,651
Total investments
1,337,302
1,454,495
Cash and cash equivalents
18,891
78,278
Premium receivables, net of allowance for
expected credit losses of
$2,851 at September 30, 2022 and $2,996 at
December 31, 2021
160,714
128,444
Reinsurance receivables, net of allowance
for expected credit losses of
$8,992 at September 30, 2022 and December
31, 2021
108,541
99,864
Funds held by ceding insurers
21,780
27,958
Deferred federal income taxes
46,540
37,329
Deferred acquisition costs
70,164
60,331
Intangible assets
14,898
20,261
Goodwill
4,820
5,398
Prepaid reinsurance premiums
56,205
53,494
Lease right of use assets
13,461
16,051
Other assets
25,821
30,906
Total assets
$
1,879,137
$
2,012,809
LIABILITIES AND SHAREHOLDERS’
EQUITY
Liabilities:
Unpaid losses and loss adjustment
expenses
$
825,594
$
759,904
Unearned premiums
330,536
316,566
Ceded balances payable
16,607
35,340
Payable for securities purchased
98
794
Contingent commissions
8,357
7,903
Debt
-
126,430
Lease liabilities
16,734
19,079
Other liabilities
37,617
40,172
Total liabilities
1,235,543
1,306,188
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: 10,701,873
and 10,574,589,
respectively; class A common shares
outstanding: 10,668,423 and
10,557,093, respectively; class B common
shares issued and
outstanding: 3,947,206 and 3,947,206,
respectively
-
-
Additional paid-in capital (1)
451,142
447,406
Accumulated other comprehensive income,
net of taxes
(45,337
)
6,404
Retained earnings (1)
234,693
249,301
Class A common shares in treasury, at
cost: 33,450 and 17,496 shares, respectively
(904
)
(490
)
Total shareholders’ equity
643,594
706,621
Total liabilities and shareholders’
equity
$
1,879,137
$
2,012,809
(1)
Since the Company’s initial public offering in 2003 the Company
has returned $558 million to shareholders including $488 million in
share repurchases and $70 million in dividends/distributions.
GLOBAL INDEMNITY GROUP,
LLC
SELECTED INVESTMENT
DATA
(Dollars in millions)
Market Value as of
(Unaudited)
September 30, 2022
December 31, 2021
Fixed maturities
$
1,281.1
$
1,201.9
Cash and cash equivalents
18.9
78.3
Total bonds and cash and cash
equivalents
1,300.0
1,280.2
Equities and other invested assets
56.2
252.6
Total cash and invested assets, gross
1,356.2
1,532.8
Payable for securities purchased
(0.1
)
(0.8
)
Total cash and invested assets, net
$
1,356.1
$
1,532.0
Total Investment Return
(1)
For the Three Months
Ended September 30,
(unaudited)
For the Nine Months
Ended September 30,
(unaudited)
2022
2021
2022
2021
Net investment income
$
8.4
$
9.3
$
16.9
$
29.8
Net realized investment gains (losses)
2.2
(0.3
)
(33.0
)
7.3
Net unrealized investment losses
(23.0
)
(4.8
)
(64.4
)
(23.7
)
Net realized and unrealized investment
return
(20.8
)
(5.1
)
(97.4
)
(16.4
)
Total investment return
$
(12.4
)
$
4.2
$
(80.5
)
$
13.4
Average total cash and invested assets
$
1,341.3
$
1,481.2
$
1,444.0
$
1,468.1
Total investment return %
(0.9
%)
0.3
%
(5.6
%)
0.9
%
(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 September 30,
For the Nine Months
Ended September 30,
2022
2021
2022
2021
Adjusted operating income, net of
tax
$
5,263
$
593
$
12,520
$
12,036
Adjustments:
Underwriting income (loss) from Exited
Lines, net of tax
244
(7,711
)
(1,620
)
(14,889
)
Adjusted operating income (loss) including
Exited Lines, net of tax (1)
5,507
(7,118
)
10,900
(2,853
)
Impact of the sale of Farm, Ranch &
Stable renewal rights
16,469
-
16,469
-
Net realized investment gains (losses)
1,770
(595
)
(27,029
)
7,032
Loss on extinguishment of debt
-
-
(3,529
)
-
Net income (loss)
$
23,746
$
(7,713
)
$
(3,189
)
$
4,179
Weighted average shares outstanding –
basic
14,590
14,445
14,550
14,413
Weighted average shares outstanding –
diluted
14,796
14,708
14,749
14,651
Adjusted operating income per share –
basic (2)
$
0.35
$
0.03
$
0.84
$
0.81
Adjusted operating income per share –
diluted (2)
$
0.35
$
0.03
$
0.83
$
0.80
(1)
Adjusted operating income including Exited Lines, net of tax,
excludes preferred shareholder distributions of $0.11 million for
both the three months ended September 30, 2022 and 2021 and $0.33
million for both the nine months ended September 30, 2022 and
2021.
(2)
The adjusted operating income per share calculation is net of
preferred shareholder distributions of $0.11 million for both the
three months ended September 30, 2022 and 2021 and $0.33 million
for both the nine months ended September 30, 2022 and 2021.
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 gains (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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221107006109/en/
Media Stephen W. Ries Head of Investor Relations (610)
668-3270 sries@gbli.com
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