Business
Global Indemnity Group, LLC Reports First Quarter 2022 Results
Growth in Gross Written Premium - An increase of 27.3% in gross written premiums in its Continuing Lines in the 1st quarter of 2022 compared to the
About this update from Global Indemnity Group, Llc
[{"type":"text","content":"\n\nGrowth in Gross Written Premium - An increase of 27.3% in gross written premiums in its Continuing Lines in the 1st quarter of 2022 compared to the corresponding period in 2021.\n\n\nStrong Underwriting Results - The consolidated combined ratio was 95.0% for the 1st quarter of 2022 (Loss Ratio 56.9% and Expense Ratio 38.1%) as compared to 101.2% (Loss Ratio 63.1% and Expense Ratio 38.1%) for the first quarter of 2021.\n\n\nLower Catastrophes – Catastrophe losses of $4.3 million for the 1st quarter of 2022 compared to $16.9 million in the 1st quarter of 2021.\n\n\nAdjusted operating income of $5.4 million compared to adjusted operating income of $2.3 million for the corresponding period in 2021.\n\n\nEarly January 2022, sold substantially all of the company’s $76 million common equity portfolio resulting in a gain of $10.9 million. The majority of this gain was recognized in 2021 due to mark-to-market accounting rules.\n\n\nEarly 2nd quarter of 2022, Global Indemnity further substantially reduced the duration of its fixed income portfolio to 1.8 years compared to duration at May 31, 2021 of 4.4 years, and duration at December 31, 2021 of 3 years.\n\n\nEarly 2nd quarter of 2022, approximately all $360 million of the company’s fixed income securities with maturities of 5 years and greater that had an average yield of 2.3% were sold. Approximately $195 million of the proceeds have been reinvested in corporate and securitized debt with an average duration of 1.3 years yielding 3.2%. Approximately $165 million of the remaining proceeds are temporarily invested in 2 year U.S. Treasuries yielding 2.5% - these funds will be redeployed to corporate and securitized investments. In reducing duration of its fixed income portfolio, GBLI realized losses of $25.4 million in the 1st quarter of 2022.\n\n\nPrimarily as a result of substantially shortening the duration of the company’s fixed income securities in its investment portfolio, the company generated a net loss to shareholders of $14.9 million, or $1.03 per share, for the 1st quarter of 2022 compared to net income available to shareholders of $5.4 million, or $0.37 per share, for the corresponding period in 2021. Book value decreased $36.9 million from $706.6 million at December 31, 2021 to $669.7 million at March 31, 2022. Book value per share decreased $2.66 from $48.44 at December 3...