Global Indemnity Group, LLC Reports Year Ended 2024 Results
WILMINGTON, Del.--(BUSINESS WIRE)--March 11, 2025--
Global Indemnity Group, LLC $(GBLI)$ (the "Company") today reported an increase of 71% in net income available to shareholders to $42.8 million or $3.12 per share for the twelve months ended December 31, 2024 compared to $25.0 million or $1.83 per share for the same period in 2023.
Highlights for the Twelve Months Ended December 31, 2024
-- Net income available to shareholders increased 71% to $42.8 million or
$3.12 per share in 2024 compared to $25.0 million or $1.83 per share in
2023.
-- Operating income increased 58% to $42.9 million in 2024 compared to $27.2
million in 2023.
-- Book value per share increased to $49.98 at December 31, 2024 from $47.53
at December 31, 2023; increased 8.1% including dividends paid of $1.40
per share in 2024.
-- Investment income increased 13% to $62.4 million in 2024 compared to
$55.4 million in 2023 due to an increase in book yield on the Company's
bond portfolio to 4.4% at December 31, 2024 from 4.0% at December 31,
2023 and growth of 4% in the investment portfolio to $1.44 billion driven
primarily by operating cash flow.
-- Return on equity, including unrealized gains on fixed-income securities
included in stockholders' equity, was 8.4% in 2024 compared to 7.2% in
2023.
-- Investment return was 5.5% for 2024.
-- GBLI's current accident year underwriting income increased to $18.8
million for 2024 compared with $14.3 million in 2023 driven by:
-- The Company's Penn-America segment that posted $22.1 million of
underwriting income (combined ratio of 94.4%), higher than 2023
underwriting income of $18.5 million (combined ratio of 95.2%)
driven by growth in gross written premiums and improved
non-catastrophe and catastrophe property results.
-- GBLI's catastrophe losses declined 26%; $12.7 million in 2024 from
$17.2 million in 2023.
-- Penn-America gross written premiums, excluding products terminated,
increased 12% to $395.1 million in 2024 compared to $352.4 million in
2023.
-- InsurTech grew 17% to $56.3 million in 2024 compared with $48.3
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 7%.
-- Assumed Reinsurance increased 83% from $13.9 million in 2023 to
$25.4 million in 2024 due to new treaties commencing in both 2023
and 2024.
-- Prior accident year loss development was an increase of less than $0.1
million for 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 Twelve Months Ended
December 31,
-----------------------------------
2024 2023
-------------- -------------
Consolidated:
Net income available to
shareholders $ 42.8 $ 25.0
Net income available to
shareholders per share $ 3.12 $ 1.83
Operating income $ 42.9 $ 27.2
Operating income per share $ 3.10 $ 1.96
Underwriting income, current
accident year $ 18.8 $ 14.3
Underwriting income $ 17.8 $ 3.0
Gross written premiums $ 389.8 $ 416.4
Investment income $ 62.4 $ 55.4
Annualized investment return 5.5% 5.7%
Combined ratio analysis:
Loss ratio 56.6% 61.1%
Expense ratio 39.0% 38.6%
---------- --- ---------
Combined ratio 95.6% 99.7%
Combined ratio, current accident
year 95.4% 97.3%
Penn-America Segment:
Underwriting income, current
accident year $ 22.1 $ 18.5
Underwriting income (loss) $ 19.7 $ (11.6)
Penn-America gross written
premiums (1) $ 395.1 $ 352.4
Combined ratio analysis:
Loss ratio 56.9% 65.8%
Expense ratio 38.1% 37.8%
---------- --- ---------
Combined ratio 95.0% 103.6%
Combined ratio, current accident
year 94.4% 95.2%
As of December 31, 2024 As of December 31, 2023
----------------------- -----------------------
Consolidated:
Book value per share $ 49.98 $ 47.53
Book value per share
plus cumulative
dividends and
excluding AOCI $ 58.14 $ 55.22
Shareholders' equity $ 689.1 $ 648.8
Cash and invested
assets $ 1,440.7 $ 1,390.4
Shares Outstanding
(in millions) 13.7 13.6
(1) Excludes $4.9 million and $17.2 million of gross written premiums for
terminated products for the twelve months ended December 31, 2024 and
2023, respectively.
GLOBAL INDEMNITY GROUP, LLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars and shares in thousands, except per share data)
For the Twelve Months Ended
December 31,
---------------------------------
2024 2023
--------------- -----------
Gross written premiums $ 389,758 $ 416,397
Net written premiums $ 379,190 $ 399,319
Net earned premiums $ 376,992 $ 473,357
Net investment income 62,375 55,444
Net realized investment gains
(losses) 455 (2,107)
Other income 1,365 1,435
----------- ----------
Total revenues 441,187 528,129
Net losses and loss adjustment
expenses 213,190 289,153
Acquisition costs and other
underwriting expenses 147,345 182,617
Corporate and other operating
expenses 25,696 23,383
----------- ----------
Income before income taxes 54,956 32,976
Income tax expense 11,715 7,547
----------- ----------
Net income 43,241 25,429
Less: Preferred stock
distributions 440 440
----------- ----------
Net income available to common
shareholders $ 42,801 $ 24,989
=========== ==========
Per share data:
Net income available to common
shareholders
Basic $ 3.14 $ 1.84
Diluted $ 3.12 $ 1.83
Weighted-average number of
shares outstanding
Basic 13,636 13,553
Diluted 13,706 13,666
Cash distributions declared per
common share $ 1.40 $ 1.00
Combined ratio analysis:
Loss ratio 56.6% 61.1%
Expense ratio 39.0% 38.6%
----------- ----------
Combined ratio 95.6% 99.7%
=========== ==========
GLOBAL INDEMNITY GROUP, LLC
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 31, 2024 December 31, 2023
------------------- -------------------
ASSETS
Fixed maturities:
Available for sale, at
fair value (amortized
cost: $1,394,639 and
$1,322,092; net of
allowance for expected
credit losses of: $0
at December 31, 2024
and 2023) $ 1,381,908 $ 1,293,793
Equity securities, at fair
value 12,284 16,508
Other invested assets 29,413 38,236
--------------- ---------------
Total investments 1,423,605 1,348,537
Cash and cash equivalents 17,009 38,037
Premium receivables, net
of allowance for expected
credit losses of $3,530
at December 31, 2024 and
$4,796 at December 31,
2023 75,088 102,158
Reinsurance receivables,
net of allowance for
expected credit losses of
$8,992 at December 31,
2024 and December 31,
2023 66,855 80,439
Funds held by ceding
insurers 30,026 16,989
Deferred federal income
taxes 22,459 36,802
Deferred acquisition costs 41,136 42,445
Intangible assets 14,103 14,456
Goodwill 4,820 4,820
Prepaid reinsurance
premiums 3,320 4,958
Receivable for securities 52 3,858
Federal income tax
receivable 825 --
Lease right of use assets 9,295 9,715
Other assets 22,660 26,362
--------------- ---------------
Total assets $ 1,731,253 $ 1,729,576
=============== ===============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss
adjustment expenses $ 800,391 $ 850,599
Unearned premiums 183,411 182,852
Reinsurance balances
payable 8,181 2,642
Federal income tax payable -- 1,595
Contingent commissions 6,826 5,632
Lease liabilities 10,371 12,733
Other liabilities 32,924 24,770
--------------- ---------------
Total liabilities $ 1,042,104 $ 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: 11,202,355 and
11,042,670,
respectively;
class A common shares
outstanding: 9,914,587
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) 459,578 454,791
Accumulated other
comprehensive income
(loss), net of tax (10,410) (22,863)
Retained earnings (1) 268,673 244,988
Class A common shares in
treasury, at cost:
1,287,768 and 1,271,241
shares, respectively (32,692) (32,163)
--------------- ---------------
Total shareholders'
equity 689,149 648,753
--------------- ---------------
Total liabilities
and shareholders'
equity $ 1,731,253 $ 1,729,576
=============== ===============
(1) Since the Company's initial public offering in 2003, the Company has
returned $629 million to shareholders, including $522 million in share
repurchases and $107 million in dividends/distributions.
Segment Data for the Twelve Months Ended December 31, 2024 and 2023
(Dollars in millions)
Underwriting Income for the Twelve Months Ended December 31,
---------------------------------------------------------------------------------------
Penn-America Non-Core Operations Consolidated
------------------ ------------------- ------------------
2024 2023 2024 2023 2024 2023
------ ------ ------ ------- ------ ------
Revenues:
Gross written
premiums $400.0 $369.7 $(10.2) $ 46.7 $389.8 $416.4
Net written
premiums $389.6 $356.8 $(10.4) $ 42.5 $379.2 $399.3
Net earned
premiums $369.8 $354.5 $ 7.2 $ 118.9 $377.0 $473.4
Underwriting
income
(loss),
current
accident
year $ 22.1 $ 18.5 $ (3.3) $ (4.2) $ 18.8 $ 14.3
Underwriting
income
(loss) $ 19.7 $(11.6) $ (1.9) $ 14.6 $ 17.8 $ 3.0
Combined
ratio
analysis:
Loss ratio
Current
accident
year 56.4% 57.4% 64.6% 64.2% 56.5% 59.1%
Prior
accident
year 0.5% 8.4% (24.3%) (17.1%) 0.1% 2.0%
----- ----- ----- ------ ----- -----
Calendar year
loss ratio 56.9% 65.8% 40.3% 47.1% 56.6% 61.1%
Expense ratio 38.1% 37.8% 86.5% 40.8% 39.0% 38.6%
----- ----- ----- ------ ----- -----
Combined ratio 95.0% 103.6% 126.8% 87.9% 95.6% 99.7%
===== ===== ===== ====== ===== =====
Combined
ratio,
current
accident
year 94.4% 95.2% 145.6% 103.7% 95.4% 97.3%
===== ===== ===== ====== ===== =====
Gross Written Premiums for the Twelve Months Ended December 31,
------------------------------------------------------------------
2024 2023 % Change
------------ -------- -----------
Penn-America:
Wholesale Commercial $ 248.6 $ 234.9 6%
InsurTech 56.3 48.3 17%
Assumed Reinsurance 25.4 13.9 83%
-------- -------
330.3 297.1 11%
Specialty Products 69.7 72.6 (4%)
-------- -------
Penn-America 400.0 369.7 8%
Non-Core Operations (10.2) 46.7 (122%)
-------- -------
Total $ 389.8 $ 416.4 (6%)
======== =======
GLOBAL INDEMNITY GROUP, LLC
SELECTED INVESTMENT DATA
(Dollars in millions)
Market Value as of
----------------------------------------
December 31, 2024 December 31, 2023
------------------- -------------------
Fixed maturities $ 1,381.9 $ 1,293.8
Cash and cash equivalents 17.0 38.0
--- -------------- --- --------------
Total fixed maturities
and cash and cash
equivalents 1,398.9 1,331.8
Equities and other invested
assets 41.7 54.7
--- -------------- --- --------------
Total cash and invested
assets, gross 1,440.6 1,386.5
Receivable for securities 0.1 3.9
--- -------------- --- --------------
Total cash and invested
assets, net $ 1,440.7 $ 1,390.4
=== ============== === ==============
Total Pre-Tax Investment Return
------------------------------------------------
For the Twelve Months Ended December 31,
------------------------------------------------
2024 2023
--------------------- -------------------
Net investment
income $ 62.4 $ 55.4
--- ---------------- ---------------
Net realized
investment gains
(losses) 0.5 (2.1)
Net unrealized
investment gains
(losses) 15.4 25.2
--- ---------------- ---------------
Net realized and
unrealized
investment return 15.9 23.1
--- ---------------- ---------------
Total investment
return $ 78.3 $ 78.5
=== ================ ===============
Average total cash
and invested
assets $ 1,415.5 $ 1,366.6
=== ================ ===============
Total investment
return % 5.5% 5.7%
=== ================ === ===============
SUMMARY OF OPERATING INCOME
(Dollars and shares in thousands, except per share data)
For the Twelve Months Ended December 31,
----------------------------------------------
2024 2023
----------------------- ---------------------
Operating income, net
of tax (1) $ 42,879 $ 27,181
Net realized investment
gains (losses), net of
tax 362 (1,752)
--- ------------------ -----------------
Net income $ 43,241 $ 25,429
=== ================== =================
Weighted average shares
outstanding --
diluted 13,706 13,666
Operating income per
share -- diluted (2) $ 3.10 $ 1.96
(1) Operating income, net of tax, excludes preferred shareholder
distributions of $0.44 million for each of the twelve months ended
December 31, 2024 and 2023.
(2) The operating income per share calculation is net of preferred
shareholder distributions of $0.44 million for each of the twelve
months ended December 31, 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) provides diversified offerings for both specialty property and casualty insurance in the Excess & Surplus Lines market through its subsidiaries. Belmont Holdings GX, LLC, is an insurance holding company that manages its core and non-core insurance portfolios through its wholly owned specialty insurance companies. Its distribution and specialized services group, Penn-America Underwriters, LLC, focuses on the underwriting, growth and distribution of insurance products, technology services, and claim services supporting its policyholders and agents.
For more information, visit the Company's website at www.gbli.com.
Forward-Looking Information
The forward-looking statements contained in this press release(3) 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/20250309501836/en/
CONTACT: Brian J. Riley
Chief Financial Officer
(610) 660-6817
briley@gbli.com
(END) Dow Jones Newswires
March 11, 2025 08:00 ET (12:00 GMT)
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