Market Overview

Global Indemnity Limited Reports 2018 Financial Results

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GEORGE TOWN, Cayman Islands, March 08, 2019 (GLOBE NEWSWIRE) -- Global Indemnity Limited (NASDAQ:GBLI) today reported a net loss of $56.7 million, a decrease of $47.1 million from 2017. Gross written premiums for the year ended December 31, 2018 increased 6.1%. Investment income for the year ended 2018 was $46.3 million, an increase of 17.8% compared to 2017. The combined ratio for the year ended December 31, 2018 was 112.3%. The Company declared and paid dividends of $1.00 per share during 2018.

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

  For the Twelve Months
Ended December 31,
    As of
December 31,
  As of
December 31,
  2018   2017     2018   2017
                 
Gross premiums written $ 547.9     $ 516.3     Book value per share $ 44.21     $ 50.57  
Net premiums written $ 472.5     $ 450.2     Shareholders' equity $ 629.1     $ 718.4  
Net premiums earned $ 467.8     $ 438.0     Cash and invested assets (1) $ 1,510.2     $ 1,535.4  
Net investment income $ 46.3     $ 39.3     (1) Including receivable/(payable) for securities sold/(purchased)
Net loss $ (56.7 )   $ (9.6 )          

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 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 Twelve Months Ended December 31, 2018 and 2017

The combined ratio was 112.3% for the twelve months ended December 31, 2018 compared to 103.4% for the twelve months ended December 31, 2017. Excluding hurricane Michael and the California wildfires, the combined ratio would have been 99.3%.

Calendar year results for the twelve months ended December 31, 2018 include $28.8 million in favorable development, which was driven by lower than expected claims severity experienced across multiple prior accident years within Commercial Lines and 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 Twelve Months Ended December 31, 2018 and 2017

  Twelve Months Ended December 31,
  Gross Premiums Written   Net Premiums Written
    2018       2017       2018       2017  
Commercial Lines Operations $ 249,931     $ 212,471     $ 226,820     $ 186,322  
Personal Lines Operations   250,957       250,044       196,952       208,776  
Reinsurance Operations   48,043       53,887       48,033       53,933  
Runoff   1,028       1,270       742       1,149  
Fronted Business   (2,062 )     (1,338 )     -       -  
Total $ 547,897     $ 516,334     $ 472,547     $ 450,180  

Commercial Lines Operations: Gross premiums written and net premiums written increased 17.6% and 21.7%, respectively, for the twelve months ended December 31, 2018 as compared to the same period in 2017. This increase is driven by rate increases and new products.

Personal Lines Operations: Gross premiums written increased by 0.4% and net premiums written decreased by 5.7% for the twelve months ended December 31, 2018 as compared to the same period in 2017.

Reinsurance Operations: Gross premiums written and net premiums written decreased 10.8% and 10.9% for the twelve months ended December 31, 2018, respectively, as compared to the same period in 2017 due primarily to the non-renewal of a treaty offset in part by growth in other treaties.

Note: Tables Follow

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

  For the Twelve Months
Ended December 31,
    2018       2017  
Gross premiums written $ 547,897     $ 516,334  
       
Net premiums written $ 472,547     $ 450,180  
       
Net premiums earned $ 467,775     $ 438,034  
Net investment income   46,342       39,323  
Net realized investment gains (losses)   (16,907 )     1,576  
Other income   1,728       6,582  
Total revenues   498,938       485,515  
       
Net losses and loss adjustment expenses   334,625       269,212  
Acquisition costs and other underwriting expenses   190,778       183,733  
Corporate and other operating expenses   29,766       25,714
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