Global Indemnity Group, LLC Reports Second Quarter 2024 Results and AM Best Affirmation of A (Excellent) Rating

About this update from Global Indemnity Group, Llc

WILMINGTON, Del. --(BUSINESS WIRE)-- Global Indemnity Group, LLC (NYSE:GBLI) (the “Company”) today reported an increase of 83% in net income available to shareholders to $21.2 million or $1.55 per share for the six months ended June 30, 2024 compared to $11.6 million or $0.84 per share for the same period in 2023. On August 1, 2024 , AM Best affirmed Global Indemnity Group , LLC’s A (Excellent) rating for its U.S. insurance subsidiaries and released: "AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issue Credit Ratings (Long-Term ICR) of “a” (Excellent) of the U.S. operating subsidiaries of Global Indemnity Group, LLC ( Global Indemnity ) ( Delaware ) [NYSE: GBLI ]." "The balance sheet strength assessment reflects Global Indemnity’s risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by a conservative investment portfolio, generally conservative reserving practices, as well as the added financial flexibility through its parent’s access to capital markets." "Penn-America, the group’s core commercial specialty segment, which focuses on small-to middle-market customers, has been consistently profitable." " Global Indemnity is composed of several long-standing and well-recognized franchises that provide a diverse mix of business through multiple distribution channels.” Highlights for the Six Months Ended June 30, 2024 Net income available to shareholders increased 83% to $21.2 million or $1.55 per share in 2024 compared to $11.6 million or $0.84 per share in 2023. Operating income increased 51% to $20.6 million in 2024 compared to $13.7 million in 2023. Book value per share increased to $48.56 at June 30, 2024 from $47.53 at December 31, 2023 ; increased 3.6% including dividends paid of $0.70 per share in 2024. Investment income increased 18% to $29.8 million in 2024 compared to $25.2 million in 2023 due to an increase in book yield on the Company’s bond portfolio from 3.8% at June 30, 2023 to 4.5% at June 30, 2024 . Annualized investment return was 5.2% for 2024 for the first six months of 2024. GBLI’s current accident year underwriting income increased to $8.7 million for 2024 compared with $3.2 million in 2023 driven by: The Company’s Penn-America segment that posted $9.9 million of underwriting income (combined ratio of 94.8%), higher than 2023 underwriting income of $6.3 (combined ratio of 96.8%) driven by improved non-catastrophe and catastrophe property results. GBLI's catastrophe losses declined 36%; $6.8 million in 2024 from $10.6 million in 2023. Penn-America gross written premiums, excluding programs terminated in 2023 increased 7% to $194.6 million compared to $182.3 million in 2023. InsurTech grew 18% to $26.3 million in 2024 compared with $22.3 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 9%. Assumed Re increased from $4.2 million in 2023 to $9.4 million in 2024 due to new treaties commencing in both 2023 and 2024. Prior accident year loss development was slightly favorable at $0.1 million for the first six months of 2024. Selected Operating and Balance Sheet Information (Dollars in millions, except per share data) For the Three Months Ended June 30 , For the Six Months Ended June 30 , 2024 2023 2024 2023 Consolidated: Net income available to shareholders $ 10.0 $ 9.2 $ 21.2 $ 11.6 Net income available to shareholders per share $ 0.73 $ 0.67 $ 1.55 $ 0.84 Operating income $ 9.9 $ 10.0 $ 20.6 $ 13.7 Operating income per share $ 0.72 $ 0.72 $ 1.49 $ 0.98 Underwriting income, current accident year $ 3.5 $ 3.7 $ 8.7 $ 3.2 Underwriting income $ 3.5 $ 4.3 $ 8.8 $ 3.2 Gross written premiums $ 100.7 $ 110.1 $ 194.2 $ 233.1 Investment income $ 15.3 $ 13.2 $ 29.8 $ 25.2 Annualized investment return 5.0 % 2.8 % 5.2 % 4.5 % Combined ratio analysis: Loss ratio 57.8 % 60.5 % 56.5 % 61.7 % Expense ratio 38.8 % 36.4 % 39.2 % 37.3 % Combined ratio 96.6 % 96.9 % 95.7 % 99.0 % Combined ratio, current accident year 96.7 % 97.3 % 95.8 % 99.1 % Penn-America Segment: Underwriting income, current accident year $ 4.2 $ 7.1 $ 9.9 $ 6.3 Underwriting income $ 4.7 $ 6.1 $ 10.3 $ 3.0 Penn-America gross written premiums (1) $ 100.6 $ 91.5 $ 194.6 $ 182.3 Combined ratio analysis: Loss ratio 57.2 % 56.6 % 56.0 % 60.9 % Expense ratio 38.0 % 37.1 % 38.6 % 37.7 % Combined ratio 95.2 % 93.7 % 94.6 % 98.6 % Combined ratio, current accident year 95.7 % 92.6 % 94.8 % 96.8 % As of June 30, 2024 As of March 31, 2024 As of December 31, 2023 Consolidated: Book value per share $ 48.56 $ 48.18 $ 47.53 Book value per share plus cumulative dividends and excluding AOCI $ 56.58 $ 56.00 $ 55.22 Shareholders’ equity $ 667.5 $ 659.5 $ 648.8 Cash and invested assets $ 1,435.2 $ 1,417.3 $ 1,390.4 Shares Outstanding (in millions) 13.7 13.6 13.6 (1) Excludes $3.6 million and $8.2 million of gross written premiums in 2023 terminated programs for the three and six months ended June 30, 2023 , respectively. GLOBAL INDEMNITY GROUP, LLC CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars and shares in thousands, except per share data) For the Three Months Ended June 30 , For the Six Months Ended June 30 , 2024 2023 2024 2023 Gross written premiums $ 100,706 $ 110,100 $ 194,194 $ 233,085 Net written premiums $ 97,751 $ 105,996 $ 189,836 $ 221,857 Net earned premiums $ 92,814 $ 129,156 $ 189,393 $ 269,228 Net investment income 15,311 13,216 29,831 25,224 Net realized investment gains (losses) 205 (761 ) 1,052 (2,281 ) Other income 357 282 702 636 Total revenues 108,687 141,893 220,978 292,807 Net losses and loss adjustment expenses 53,662 78,082 107,046 166,083 Acquisition costs and other underwriting expenses 35,968 47,101 74,237 100,579 Corporate and other operating expenses 6,366 4,990 12,739 11,358 Interest expense 17 12 17 12 Income before income taxes 12,674 11,708 26,939 14,775 Income tax expense 2,581 2,371 5,480 2,944 Net income 10,093 9,337 21,459 11,831 Less: Preferred stock distributions 110 110 220 220 Net income available to common shareholders $ 9,983 $ 9,227 $ 21,239 $ 11,611 Per share data: Net income available to common shareholders Basic $ 0.73 $ 0.68 $ 1.56 $ 0.86 Diluted $ 0.73 $ 0.67 $ 1.55 $ 0.84 Weighted-average number of shares outstanding Basic 13,610 13,478 13,594 13,574 Diluted 13,678 13,708 13,659 13,794 Cash distributions declared per common share $ 0.35 $ 0.25 $ 0.70 $ 0.50 Combined ratio analysis: Loss ratio 57.8 % 60.5 % 56.5 % 61.7 % Expense ratio 38.8 % 36.4 % 39.2 % 37.3 % Combined ratio 96.6 % 96.9 % 95.7 % 99.0 % GLOBAL INDEMNITY GROUP, LLC CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (Unaudited) June 30, 2024 December 31, 2023 ASSETS Fixed maturities: Available for sale, at fair value (amortized cost: $1,362,384 and $1,322,092 ; net of allowance for expected credit losses of $0 at June 30, 2024 and December 31, 2023 ) $ 1,340,046 $ 1,293,793 Equity securities, at fair value 14,657 16,508 Other invested assets 33,710 38,236 Total investments 1,388,413 1,348,537 Cash and cash equivalents 46,731 38,037 Premium receivables, net of allowance for expected credit losses of $4,043 at June 30, 2024 and $4,796 at December 31, 2023 80,587 102,158 Reinsurance receivables, net of allowance for expected credit losses of $8,992 at June 30, 2024 and December 31, 2023 75,643 80,439 Funds held by ceding insurers 27,114 16,989 Deferred federal income taxes 30,201 36,802 Deferred acquisition costs 41,109 42,445 Intangible assets 14,280 14,456 Goodwill 4,820 4,820 Prepaid reinsurance premiums 3,498 4,958 Receivable for securities 65 3,858 Federal income tax receivable 899 — Lease right of use assets 8,978 9,715 Other assets 16,211 26,362 Total assets $ 1,738,549 $ 1,729,576 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Unpaid losses and loss adjustment expenses $ 844,206 $ 850,599 Unearned premiums 181,834 182,852 Ceded balances payable 948 2,642 Federal income tax payable — 1,595 Contingent commissions 3,599 5,632 Lease liabilities 11,448 12,733 Other liabilities 29,024 24,770 Total liabilities $ 1,071,059 $ 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: 11,158,442 and 11,042,670, respectively; class A common shares outstanding: 9,870,674 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) 457,550 454,791 Accumulated other comprehensive income (loss), net of tax (18,051 ) (22,863 ) Retained earnings (1) 256,683 244,988 Class A common shares in treasury, at cost: 1,287,768 and 1,271,241 shares, respectively (32,692 ) (32,163 ) Total shareholders’ equity 667,490 648,753 Total liabilities and shareholders’ equity $ 1,738,549 $ 1,729,576 (1) Since the Company’s initial public offering in 2003, the Company has returned $619 million to shareholders, including $522 million in share repurchases and $97 million in dividends/distributions. Segment Data for the Six Months Ended June 30, 2024 and 2023 (Dollars in millions) Underwriting Income for the Six Months Ended June 30 , Penn-America Non-Core Operations Consolidated 2024 2023 2024 2023 2024 2023 Revenues: Gross written premiums $ 194.6 $ 190.4 $ (0.4 ) $ 42.7 $ 194.2 $ 233.1 Net written premiums $ 190.2 $ 182.8 $ (0.4 ) $ 39.1 $ 189.8 $ 221.9 Net earned premiums $ 178.5 $ 183.3 $ 10.9 $ 85.9 $ 189.4 $ 269.2 Underwriting income (loss), current accident year $ 9.9 $ 6.3 $ (1.2 ) $ (3.1 ) $ 8.7 $ 3.2 Underwriting income (loss) $ 10.3 $ 3.0 $ (1.5 ) $ 0.2 $ 8.8 $ 3.2 Combined ratio analysis: Loss ratio Current accident year 56.3 % 59.3 % 61.1 % 66.8 % 56.6 % 61.7 % Prior accident year (0.3 %) 1.6 % 3.2 % (3.5 %) (0.1 %) 0.0 % Calendar year loss ratio 56.0 % 60.9 % 64.3 % 63.3 % 56.5 % 61.7 % Expense ratio 38.6 % 37.7 % 49.6 % 36.6 % 39.2 % 37.3 % Combined ratio 94.6 % 98.6 % 113.9 % 99.9 % 95.7 % 99.0 % Combined ratio, current accident year 94.8 % 96.8 % 110.7 % 103.8 % 95.8 % 99.1 % Gross Written Premiums for the Six Months Ended June 30 , 2024 2023 % Change Penn-America: Wholesale Commercial $ 124.9 $ 121.0 3 % InsurTech 26.3 22.3 18 % Assumed Reinsurance 9.4 4.2 123 % 160.6 147.5 9 % Programs 34.0 42.9 (21 %) Penn-America 194.6 190.4 2 % Non-Core Operations (0.4 ) 42.7 (101 %) Total $ 194.2 $ 233.1 (17 %) GLOBAL INDEMNITY GROUP, LLC SELECTED INVESTMENT DATA (Dollars in millions) Market Value as of (Unaudited) June 30, 2024 December 31, 2023 Fixed maturities $ 1,340.0 $ 1,293.8 Cash and cash equivalents 46.7 38.0 Total bonds and cash and cash equivalents 1,386.7 1,331.8 Equities and other invested assets 48.4 54.7 Total cash and invested assets, gross 1,435.1 1,386.5 Receivable for securities 0.1 3.9 Total cash and invested assets, net $ 1,435.2 $ 1,390.4 Total Pre-Tax Investment Return For the Three Months Ended June 30 , (Unaudited) For the Six Months Ended June 30 , (Unaudited) 2024 2023 2024 2023 Net investment income $ 15.3 $ 13.2 $ 29.8 $ 25.2 Net realized investment gains (losses) 0.2 (0.8 ) 1.1 (2.3 ) Net unrealized investment gains (losses) 2.4 (3.1 ) 5.9 7.4 Net realized and unrealized investment return 2.6 (3.9 ) 7.0 5.1 Total investment return $ 17.9 $ 9.3 $ 36.8 $ 30.3 Average total cash and invested assets $ 1,426.3 $ 1,345.2 $ 1,412.8 $ 1,343.0 Total annualized investment return % 5.0 % 2.8 % 5.2 % 4.5 % SUMMARY OF OPERATING INCOME (Dollars and shares in thousands, except per share data) For the Three Months Ended June 30 , (Unaudited) For the Six Months Ended June 30 , (Unaudited) 2024 2023 2024 2023 Operating income, net of tax (1) $ 9,935 $ 9,976 $ 20,628 $ 13,692 Net realized investment gains (losses) 158 (639 ) 831 (1,861 ) Net income $ 10,093 $ 9,337 $ 21,459 $ 11,831 Weighted average shares outstanding – diluted 13,678 13,708 13,659 13,794 Operating income per share – diluted (2) $ 0.72 $ 0.72 $ 1.49 $ 0.98 (1) Operating income, net of tax, excludes preferred shareholder distributions of $0.1 million for each of the three months ended June 30, 2024 and 2023 and $0.2 million for each of the six months ended June 30, 2024 and 2023. (2) The operating income per share calculation is net of preferred shareholder distributions of $0.1 million for each of the three months ended June 30, 2024 and 2023 and $0.2 million for each of the six months ended June 30, 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), 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. For more information, visit the Company’s website at www.gbli.com . Forward-Looking Information The forward-looking statements contained in this press release3 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/20240805496163/en/ Stephen W. Ries Head of Investor Relations (610) 668-3270 [email protected] Source: Global Indemnity Group, LLC

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