Global Indemnity Group, LLC Reports Third Quarter 2022 Results

About this update from Global Indemnity Group, Llc

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. WILMINGTON, Del. --(BUSINESS WIRE)-- 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 E nded September 30 , For the Nine Months E nded 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 [email protected] Source: Global Indemnity Group, LLC

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