Global Indemnity Group, Llc · NASDAQ:GBLI
Global Indemnity — Investor Day (September 2022)
40 slides from Global Indemnity's investor day presentation, Sep 21, 2022
Slide 1: 2022 Investor Day
2022 Investor Day Exhibit 99.1
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation may include forward-looking statements, both with respect to Global Indemnity Group, LLC (the "Company”) and its industry, that reflect our current views with respect to future events and financial performance. These statements are made pursuant to the saf
Slide 3: Today's Agenda
Today’s Agenda Investment Update | September 2022 | Chairman’s Presentation Saul Fox Chairman Execution of Strategic Vision David Charlton Chief Executive Penn-America Binding Stan Lam SVP, Penn-America Binding Financials Thomas McGeehan Chief Financial Officer Questions and Answers Stephen Ries Hea
Slide 4: Today's Presenters
Today’s Presenters Investment Update | September 2022 | Thomas McGeehan Chief Financial Officer David Charlton Chief Executive Saul Fox Chairman Stan Lam SVP, Penn-America
Slide 5: Saul Fox, Chairman
Saul Fox Chairman Investment Update | September 2022 |
Slide 6: Corporate Strategy: GBLI Repositioned
Corporate Strategy: GBLI Repositioned Investment Update | September 2022 | Completed a 5-year transformation of GBLI from a complex, offshore, property-catastrophe-oriented insurer subject to considerable earnings volatility to a streamlined primarily casualty lines E&S domestic carrier Actions Net
Slide 7: Corporate Strategy: GBLI Transformation
Corporate Strategy: GBLI Transformation Sale of American Reliable Investment Update | September 2022 | Sold Renewal Rights to $95 million of premiums to K2 Insurance Services and American Family Mutual Insurance Company in October 2021 Manufactured Home & Dwelling Renewal Rights Sale of $95 million
Slide 8: Reduced CAT Volatility
Reduced CAT Volatility Investment Update | September 2022 | Probable Maximum Loss (PML) 1 in 250 Average Catastrophe Loss Ratio 2017 to 2021 80 % Reduction 22 Points Lower ($ millions)
Slide 9: GBLI Continuing Lines – Gross Written Premium
Exited Lines Investment Update | September 2022 GBLI Continuing Lines – Gross Written Premium | Continuing Lines Peer Companies Down 36% CAGR 10.6% CAGR 22.9% Growing faster than Peer Companies Minimal earnings drag expected in 2023 and beyond as most of this premium will not be written or it will b
Slide 10: GBLI Continuing Lines – Year Average Combined Ratio
Investment Update | September 2022 GBLI Continuing Lines – 5 Year Average Combined Ratio | Accident Year Combined Ratio Calendar Year Combined Ratio Accident Year Combined Ratio in-line with peer companies Solid track record of loss reserve reductions Peer Group Ticker Symbols – KNSL, RLI, MKL, JRVR
Slide 11: Returned to Shareholders
Returned to Shareholders Investment Update | September 2022 | Returned to Shareholders Since September 2003 Fox Paine & Company acquired control on September 5, 2003 From 2003 – December 31, 2021, the company generated $582 million of Aggregate Net Income $525 million or 90% of Aggregate Net Income
Slide 12: David Charlton, Chief Executive
David Charlton Chief Executive Investment Update | September 2022 |
Slide 13: Execution of Strategic Vision
Execution of Strategic Vision | Investment Update | September 2022 ` Best in class specialty insurance company focused on small to middle market business achieving steady growth and a consistent combined ratio in the low 90’s.
Slide 14: Corporate Strategy
Corporate Strategy Be the best-in-class specialty insurance company focused on small to middle market business achieving steady growth and a consistent combined ratio in the low 90s. GUIDING PRINCIPLES Our People are #1 Customer-centric Mentality Disciplined Underwriting Investment Update | Septembe
Slide 15: Building Leadership Depth Across Our Company
Investment Update | September 2022 | Chief Executive Chief Operating Officer SVP, Human Resources SVP, Innovation & Automation Chief Information Officer SVP, Management & Professional Liability SVP, Environmental SVP, Excess Casualty SVP, InsurTech Strategic Development & Division Leader – Cannabis
Slide 16: One GBLI Today
Historical One GBLI Today GBLI Penn-America GBLI Middle Market GBLI Programs GBLI Cannabis GBLI Professional GBLI Environmental GBLI Excess Casualty GBLI InsurTech GBLI Collectibles GBLI Vacant Express Reinsurance Operations GBLI Reinsurance | Investment Update | September 2022 Stronger trading rela
Slide 17: Grow Historically Profitable Core Business
Execution of Strategic Vision Investment Update | September 2022 | Grow Historically Profitable Core Business Continuing Lines net written premium up 30.4% through June 2022 as compared to the first six months of 2021 P
Slide 18: Execution of our Strategic Vision Roadmap
Execution of our Strategic Vision Roadmap Investment Update | September 2022 72% Casualty Company | P Move towards a mix of 70% Casualty / 30% Property to reduce volatility and CAT losses
Slide 19: Build Three New Core Businesses
Build Three New Core Businesses Professional Products Launched Employment Practices Liability Non-Profit D&O/EPL Private Company D&O/EPL Excess Professional Miscellaneous E&O Technology E&O Crime Investment Update | September 2022 | Environmental Products Launched Contractors Pollution & Professiona
Slide 20: Make non-Core Businesses Core or Sell
Make non-Core Businesses “Core” or Sell Investment Update | September 2022 | Farm, Ranch, and Equine Property and Commercial auto made up 76% of the premium, Casualty only 24% Written on an admitted basis versus Excess & Surplus lines Sold Personal Lines/Mobile Home CAT exposed business with 9 out o
Slide 21: Reduced CAT Volatility
Reduced CAT Volatility Investment Update | September 2022 | Reduced CAT Volatility Gross Average Annual Loss (AAL) in 2020 was $56.3 million, after our actions in 2020, 2021, and 2022 including repositioning the Reinsurance portfolio to be casualty-focused, reducing Property Brokerage appetite, the
Slide 22: Reinsurance Savings
Reinsurance Savings Investment Update | September 2022 | By reducing our CAT By reducing our Property CAT exposure GBLI saved $3M in our Per-Risk treaty through these actions $11M in our CAT treaty through these actions Actions taken to reduce property exposure have reduced GBLI’s spend for reinsura
Slide 23: Upcoming Key Initiatives
Upcoming Key Initiatives Investment Update | September 2022 InsurTech and Alternative Distribution Our Insurtech business enables us to offer new products via alternative distribution to insureds, aggregators, and retailers Hired a Relationship Management Director to oversee marketing and social med
Slide 24: Stan Lam, Penn-America
Stan Lam Penn-America Investment Update | September 2022 |
Slide 25: Penn-America: Consistent Underwriting Profitability
` Penn-America Investment Update | September 2022 ` Consistent Underwriting Profitability Average Combined Ratio in the low 90’s Small Commercial Business Core lines of coverage for small business customers: Property, General Liability, Inland-Marine, Commercial Excess Liability $2,600 average premi
Slide 26: National Brand, Specialty in Nature
Penn-America Investment Update | September 2022 ` National Brand, Specialty in Nature Distribution through 100+ specialty E&S wholesalers Non-admitted products available in all 50 states plus Washington, DC “Service-Minded, Solution-Driven” 3 regions, each led by a regional leader Centralized renewa
Slide 27: Utilizing Data and Analytics for Profitable Growth
Utilizing Data and Analytics for Profitable Growth Investment Update | September 2022 ` Analytics Driving Profitable Growth ISO-based products coupled with proprietary customization: Precision-level pricing aligned to census block is calculated at point of sale Fully integrated 3rd party data leadin
Slide 28: Rate and Exposure Growth Outpace Inflation
Rate and Exposure Growth Outpace Inflation Investment Update | September 2022 ` 18 consecutive quarters of rate increases +8.2% Rate increase so far in 2022 +5.1% Exposure increase so far in 2022 Approximately 60% of Penn-America’s casualty business is rated based on sales or payroll, which are audi
Slide 29: Tom McGeehan, Chief Financial Officer
Tom McGeehan Chief Financial Officer Investment Update | September 2022 |
Slide 30: GBLI Board: Objectives 2022-26 Net Written Premium CAGR
GBLI Board: Objectives Investment Update | September 2022 | 2022-26 Net Written Premium CAGR Net Written Premium of Continuing Business Net Written Premium of Continuing Business
Slide 31: GBLI Board: Objectives – Return on Equity
GBLI Board: Objectives Investment Update | September 2022 | On track to meet GBLI Board Objectives 2022-2026 Average Return on Equity Average ROE from 2022 to 2026 is expected to be 10.8% due to: Growth of Core Businesses Improvement in Combined Ratio with less volatility Higher Investment Yields Re
Slide 32: Investment Portfolio at June 30, 2022
Investment Update | September 2022 Investment Portfolio at June 30, 2022 | Global Indemnity took dramatic action in mid-year 2021 and early 2022 in order to reposition its investment portfolio in anticipation of rising interest rates and volatility in financial markets Collectibles Insurance Service
Slide 33: Duration Shortening
Collectibles Insurance Services Executed partnership to embed Collectibles Insurance Services product in proprietary homeowners’ platform Launched an app-based collectible sneaker point-of-sale product Investment Update | September 2022 Duration Shortening - Through June 30, 2022 | Significant actio
Slide 34: Investment Returns Compared to Peer Companies
Investment Update | September 2022 Investment Returns Compared to Peer Companies | Collectibles Insurance Services Executed partnership to embed Collectibles Insurance Services product in proprietary homeowners’ platform Launched an app-based collectible sneaker point-of-sale product 1Q22 for WR Ber
Slide 35: Asset Mix Compared to Peer Companies
Investment Update | September 2022 Asset Mix Compared to Peer Companies | June 30, 2022 Source: S&P Capital IQ GBLI’s bond portfolio has a shorter duration than peer companies it also has less common stock exposure than peer companies GBLI is monitoring Equity Markets and will consider increasing ex
Slide 36: Duration Shortening: Cash Flow Projections
Investment Update | September 2022 | Investment income was divided by average investments to compute yield Funds that freed up from Octagon and Guggenheim were invested in 2-year US Treasuries that increase cash flows in 2024 – more available to reinvest at higher yields as rates rise Source: 2022 P
Slide 37: Conservative Balance Sheet/Asset & Liability Management
Investment Update | September 2022 Conservative Balance Sheet/Asset & Liability Management | Collectibles Insurance Services Executed partnership to embed Collectibles Insurance Services product in proprietary homeowners’ platform Launched an app-based collectible sneaker point-of-sale product GBLI
Slide 38: Strong Capital Position and Balance Sheet
Investment Update | September 2022 Strong Capital Position and Balance Sheet | Capital supports the business and provides returns to shareholders ` Even with the market turbulence of 2022, Global Indemnity has maintained capital to support future growth Strong Balance Sheet: A Rated by AM Best High-
Slide 39: GBLI Creating Value
Investment Update | September 2022 GBLI Creating Value | Strong Balance Sheet to Support Growth Optimizing Performance Redeploying Capital Reduced Catastrophe Risk $$$ ` High-quality Investment Portfolio Short duration bond portfolio Shift to casualty is generating significant operating cash flows N
Slide 40: Thank You
Thank You Investment Update | September 2022 |
Global Indemnity Group — Investor Day (September 2022) on 6ix