Global Indemnity Group, LLC Reports Year Ended 2020 Results

BALA CYNWYD, Pa., March 08, 2021 (GLOBE NEWSWIRE) — Global Indemnity Group, LLC (NASDAQ:GBLI) (the “Company”) today reported a net loss available to shareholders of $21.2 million for the year ended December 31, 2020 compared to net income available to shareholders of $70.0 million for the corresponding period in 2019. Adjusted operating income was $12.4 million for the year ended December 31, 2020 compared to $41.4 million for the corresponding period in 2019.
Selected Operating and Balance Sheet Information
(Dollars in millions, except per share data)

Selected Financial Data for the Twelve Months Ended December 31, 2020:Underwriting income – $17.9 million in 2020 compared to $43.3 million in 2019. The decrease is primarily due to an increase in the frequency and severity of catastrophes.Investment Income – $28.4 million in 2020 compared to $42.1 million in 2019. In 2020, alternative investments performed poorly in the early part of the year and book yields on the fixed income portfolio have declined.   Realized gains/(loss) – ($14.7) million in 2020 related to derivatives and sales of equity securities in early 2020 partly offset by fixed income gains compared to $35.3 million in 2019.Corporate expenses – $42.0 million in 2020 compared to $18.9 million in 2019 mainly due to expenses incurred related to the redomestication of the Company completed on August 28, 2020.Loss on extinguishment of debt – $3.1 million of prepaid debt issuance costs were written off when $100 million of subordinated debt was retired on August 15, 2020.Tax benefit/(expense) – $8.1 million in 2020 compared to ($11.7) million in 2019.About Global Indemnity Group, LLC and its subsidiariesGlobal Indemnity Group, LLC (NASDAQ: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 four primary segments are:Commercial SpecialtySpecialty PropertyFarm, Ranch & StableReinsurance Operations
Forward-Looking InformationThe forward-looking statements contained in this press release1do 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.
Global Indemnity Group, LLC’s Combined Ratio for the Twelve Months Ended December 31, 2020 and 2019        
For the twelve months ended December 31, 2020, the Company recorded a combined ratio of 97.2% (Loss Ratio 59.2% and Expense Ratio 38.0%) as compared to 92.2% (Loss Ratio 52.5% and Expense Ratio 39.7%) for the twelve months ended December 31, 2019.The Company’s accident year casualty loss ratio was 57.0% in 2020 and 2019.The Company’s accident year property loss ratio increased by 10.6 points to 70.1% in 2020 from 59.5% in 2019 primarily as a result of an increase in frequency and severity of catastrophes.
Global Indemnity Group, LLC’s Gross Written and Net Earned Premiums Results by Segment for the Twelve Months Ended December 31, 2020 and 2019Commercial Specialty: Gross written premiums and net earned premiums increased 8.3% and 20.2%, respectively, for the twelve months ended December 31, 2020 as compared to the same period in 2019. The growth in gross written premiums and net earned premiums was primarily driven by organic growth in the Company’s excess and surplus lines business from existing agents as well as increased pricing, and several new programs.  Specialty Property: Gross written premiums and net earned premiums decreased by 15.4% and 6.2%, respectively, for the twelve months ended December 31, 2020 as compared to the same period in 2019. The decreases are primarily due to a continued reduction of catastrophe exposed business.    Farm, Ranch & Stable: Gross written premiums decreased 2.4% and net earned premiums increased 6.8% for the twelve months ended December 31, 2020 as compared to the same period in 2019. The decrease in gross written premiums was primarily due to an effort to reduce exposure in catastrophe prone areas to improve overall profitability. The increase in net earned premiums was primarily due to an increase in pricing and new agent appointments.  Reinsurance Operations:   Gross written premiums and net earned premiums decreased 31.3% and 2.1% for the twelve months ended December 31, 2020, as compared to the same period in 2019. The decrease in gross written premiums and net earned premiums was primarily due to the non-renewal of its property catastrophe treaties partially offset by the growth of a casualty treaty entered into during 2019.Note: Tables FollowGLOBAL INDEMNITY GROUP, LLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars and shares in thousands, except per share data)
(1)   For the twelve months ended December 31, 2020, weighted-average number of shares outstanding – basic was used to calculate diluted earnings per share due to a net loss for the 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)
(1)   Since the Company’s initial public offering in 2003, the Company repurchased 20.2 million shares for a total of $488 million. These share repurchases are reflected by a $488 million reduction of the Company’s additional paid-in capital and retained earnings as of December 31, 2020 and December 31, 2019. Retained earnings are also net of $43 million and $29 million of cumulative historic Company dividends/distributions to shareholders as of December 31, 2020 and December 31, 2019, respectively.
GLOBAL INDEMNITY GROUP, LLC
SELECTED INVESTMENT DATA
(Dollars in millions)

(1)   Amounts in this table are shown on a pre-tax basis.
GLOBAL INDEMNITY GROUP, LLC
SUMMARY OF ADJUSTED OPERATING INCOME
(Dollars and shares in thousands, except per share data)
Note Regarding Adjusted Operating IncomeAdjusted 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.Contact:
Media
Stephen W. Ries
Senior Corporate Counsel
(610) 668-3270        
sries@global-indemnity.com

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