Market Overview

Global Indemnity Limited Reports First Quarter 2018 Financial Results

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GEORGE TOWN, Cayman Islands, May 08, 2018 (GLOBE NEWSWIRE) -- Global Indemnity Limited (NASDAQ:GBLI) today reported net income for the three months ended March 31, 2018 of $5.7 million or $0.40 per share. Adjusted operating income, which excludes after-tax realized gains and expenses related to the restructuring of debt, was $11.5 million or $0.81 per share. The combined ratio was 93.6%, a 2.8 point improvement over the same period in 2017. Investment income for the first quarter of 2018 was $11.4 million, an increase of 31.9% compared to the first quarter of 2017. Book value per share decreased by 2.1% to $49.53 at March 31, 2018 compared to December 31, 2017 mainly due to unrealized losses on the investment portfolio.  During the first quarter of 2018, the Company also declared, and paid, a $0.25 per share dividend to shareholders.

Selected Operating and Balance Sheet Data (Dollars in millions, except per share data)

    For the Three Months
Ended March 31,
  As of
March 31,
  As of
December 31,
    2018   2017   2018   2017
                 
Gross Premiums Written   $ 124.2     $ 123.8   Book value per share $   49.53   $   50.57
Net Premiums Written   $ 107.9     $ 111.5   Shareholders' equity $    703.8   $   718.4
          Cash and invested assets (1) $ 1,541.9   $ 1,535.4
Net income   $  5.7     $   12.3          
Net income per share   $  0.40     $  0.70   (1) Including receivable/(payable) for securities sold/(purchased)
           
Adjusted operating income   $  11.5     $   11.8          
Adjusted operating income per share  

$
0.81    

$
0.67          
                 
Combined ratio analysis:                
Loss ratio     51.9 %     55.3 %        
Expense ratio     41.7 %     41.1 %        
Combined ratio     93.6 %     96.4 %        
 

About Global Indemnity Limited and its subsidiaries

Global Indemnity Limited (NASDAQ:GBLI), through its several direct and indirect wholly owned subsidiary insurance and reinsurance companies, provides both admitted and non-admitted specialty property and casualty insurance coverages and individual policyholder coverages in the United States, as well as reinsurance worldwide.  Global Indemnity Limited's three primary segments are:

  • United States Based Commercial Lines Operations
     
  • United States Based Personal Lines Operations
     
  • Bermuda Based Reinsurance Operations

For more information, visit the Global Indemnity Limited's website at http://www.globalindemnity.ky.

Forward-Looking Information

The forward-looking statements contained in this press release [1] 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 the Global Indemnity as of the date hereof. The foregoing review of factors that could cause actual financial or operating performance to differ materially from expectations is not exhaustive. 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 Limited's Combined Ratio for the Three Months Ended March 31, 2018 and 2017

The combined ratio improved to 93.6% (Loss Ratio 51.9% and Expense Ratio 41.7%) for the three months ended March 31, 2018 compared to 96.4% (Loss Ratio 55.3% and Expense Ratio 41.1%) for the three months ended March 31, 2017.

  • The current accident year property loss ratio improved by 7.6 points to 57.2% in 2018 from 64.8% in 2017, primarily due to lower claims frequency for catastrophe losses within both Commercial Lines and Personal Lines.
     
  • The current accident year casualty loss ratio improved by 5.1 points to 57.8% in 2018 from 62.9% in 2017 primarily due to lower reported claims frequency within Personal Lines.

Calendar year results for the three months ended March 31, 2018 include a 5.5 point reduction in the loss ratio related to prior accident years, which was primarily driven by lower than expected claims frequency and severity experienced across multiple prior accident years within Commercial Lines, lower than expected claims frequency and severity primarily in the agricultural reserve category related to the 2015 and 2017 accident years within Personal Lines, as well as a reduction related to the Company's property treaties for multiple prior accident years within the Reinsurance Operations. 

Global Indemnity Limited's Gross and Net Premiums Written Results by Segment for the Three Months Ended March 31, 2018 and 2017

  Three Months Ended March 31,
  Gross Premiums Written   Net Premiums Written
   2018     2017    2018    2017
Commercial Lines Operations $   53,773     $   45,911   $    48,306   $    41,115
Personal Lines Operations     61,032         60,966     49,255       54,583
Reinsurance Operations     10,309         15,823       10,309       15,808
Business Fronted for Assurant   (867 )     1,051     -     -
Total $   124,247     $   123,751   $   107,870   $    111,506
 

Commercial Lines Operations: Gross premiums written and net premiums written increased 17.1% and 17.5%, respectively, for the three months ended March 31, 2018 as compared to the same period in 2017.  This increase is mainly due to rate increases, new programs, and increased interactions with agents.

Personal Lines Operations:  Gross premiums written increased 0.1% and net premiums written decreased 9.8% for the three months ended March 31, 2018 as compared to the same period in 2017. The decrease in net premiums written was primarily due to additional premiums being ceded due to the Property Catastrophe Quota Share Treaty that became effective on April 15, 2017. 

Reinsurance Operations: Gross premiums written and net premiums written both decreased 34.8% for the three months ended March 31, 2018, as compared to the same period in 2017, mainly due to the cancellation of a treaty.

Note: Tables Follow

 
GLOBAL INDEMNITY LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars and shares in thousands, except per share data)
 
 

 
For the Three Months
Ended March 31,
    2018       2017  
   
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