Market Overview

Global Indemnity Limited Reports First Quarter 2019 Financial Results

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GEORGE TOWN, Cayman Islands, May 03, 2019 (GLOBE NEWSWIRE) -- Global Indemnity Limited (NASDAQ:GBLI) today reported net income for the three months ended March 31, 2019 of $19.6 million or $1.37 per share, an increase of $13.9 million or 244%, compared to the same period in 2018. Gross Premiums Written increased by 14.5% to $142.2 million for the three months ended March 31, 2019, from $124.2 million for the same period in 2018. The combined ratio was 88.5%, a 5.1 point improvement over the same period in 2018.  Book value per share increased by 6.0% (net of Company dividends of $0.25 per share to shareholders) during the quarter, from $44.21 per share at December 31, 2018 to $46.86 per share at March 31, 2019.

 
Selected Operating and Balance Sheet Information
(Dollars in millions, except per share data)
 
  For the Three Months
Ended March 31,
  As of
March 31,
  As of
December 31,
  2019   2018     2019     2018
               
Gross Premiums Written $ 142.2     $ 124.2   Book value per share $ 46.86   $ 44.21
Net Premiums Written $ 123.4     $ 107.9   Shareholders' equity $ 667.7   $ 629.1
        Cash and invested assets (1) $ 1,518.4   $ 1,510.2
Net income $ 19.6     $ 5.7          
Net income per share $ 1.37     $ 0.40   (1) Including receivable/(payable) for securities sold/(purchased)
         
Combined ratio analysis:              
Loss ratio   47.8 %     51.9 %        
Expense ratio   40.7 %     41.7 %        
Combined ratio   88.5 %     93.6 %        
 

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 specialty casualty insurance coverages and individual policyholder coverages in the United States, as well as reinsurance worldwide.  Global Indemnity Limited's four primary segments are:

  • United States Based Commercial Specialty
     
  • United States Based Specialty Property
     
  • United States Based Farm, Ranch, & Stable
     
  • Bermuda Based Reinsurance

The Company's Commercial Specialty segment was formerly known as Commercial Lines. During the 1st quarter of 2019, the Company re-evaluated its Personal Lines segment and determined that Personal Lines should be bifurcated into two reportable segments: Specialty Property and Farm, Ranch, & Stable.

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. 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, 2019 and 2018

For the three months ended March 31, 2019, the Company recorded a combined ratio of 88.5% compared to 93.6% for the three months ended March 31, 2018.
              
The results for the three months ended March 31, 2019 include $7.9 million in favorable development of prior year loss reserves, compared to $5.9 million in favorable development of prior year loss reserves for the three months ended March 31, 2018. 

 
Global Indemnity Limited's Gross and Net Premiums Written Results by Segment for the Three Months Ended March 31, 2019 and 2018
 
  Three Months Ended March 31,
  Gross Premiums Written   Net Premiums Written
  2019   2018   %
Change
  2019   2018   %
Change
Commercial Specialty $ 64,213   $ 53,773   19.4 %   $ 55,170   $ 48,306   14.2 %
Specialty Property   39,674     41,344   (4.0 %)     33,212     33,010   0.6 %
Farm, Ranch, & Stable   20,765     18,821   10.3 %     17,492     16,245   7.7 %
Reinsurance   17,549     10,309   70.2 %     17,542     10,309   70.2 %
Total $ 142,201   $ 124,247   14.5 %   $ 123,416   $ 107,870   14.4 %
 


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,
  2019   2018
       
Gross premiums written $ 142,201     $ 124,247  
       
Net premiums written $ 123,416     $ 107,870  
       
Net premiums earned $ 122,089     $ 108,002  
Net investment income   7,219      
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