Market Overview

Global Indemnity Limited Reports Second Quarter 2019 Financial Results

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GEORGE TOWN, Cayman Islands, Aug. 07, 2019 (GLOBE NEWSWIRE) -- Global Indemnity Limited (NASDAQ:GBLI) today reported net income for the six months ended June 30, 2019 of $34.3 million or $2.39 per share, an increase of $21.4 million or 165.7%, compared to the same period in 2018. Gross Premiums Written increased by 13.6% to $321.5 million for the six months ended June 30, 2019, compared to $283.1 million for the same period in 2018. The combined ratio for the first six months of 2019 was 91.4%, a 2.1 point improvement over the same period in 2018 and total investment return was 5.1%.  Book value per share increased by 10.2% (net of Company dividends of $0.50 per share to shareholders) during the six months, from $44.21 per share at December 31, 2018 to $48.70 per share at June 30, 2019.

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

  For the Six Months
Ended June 30,
  As of
June 30,
  As of
December 31,
    2019       2018         2019       2018
               
Gross Premiums Written $   321.5     $  283.1   Book value per share (1) $   48.70   $   44.21
Net Premiums Written $   282.5     $  244.3   Shareholders' equity $   694.5   $   629.1
        Cash and invested assets (2) $ 1,556.1   $ 1,510.2
Net income $  34.3     $  12.9          
Net income per share $   2.39     $  0.90   (1) Net of cumulative Company dividends to shareholders totaling $1.50 per share and $1.00 per share as of June 30, 2019 and December 31, 2018, respectively.
(2) Including receivable/(payable) for securities sold/(purchased)
       
Combined ratio analysis:      
Loss ratio    51.3 %      51.8 %
Expense ratio     40.1 %       41.7 %
Combined ratio     91.4 %       93.5 %

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 Six Months Ended June 30, 2019 and 2018

For the six months ended June 30, 2019, the Company recorded a combined ratio of 91.4% (Loss Ratio 51.3% and Expense Ratio 40.1%) compared to 93.5% (Loss Ratio 51.8% and Expense Ratio 41.7%)  for the six months ended June 30, 2018.             

  • The current accident year property loss ratio improved by 1.7 points to 57.6% in 2019 from 59.3% in 2018 primarily due to lower claims frequency and severity in the U.S. Insurance Operations.
     
  • The current accident year casualty loss ratio was 58.0% compared to 57.5% in 2018.

Calendar year results for the six months ended June 30, 2019 include $16.1 million in favorable loss development mainly from the U.S. Insurance Operations. 
              
Global Indemnity Limited's Gross and Net Premiums Written Results by Segment for the Six Months Ended June 30, 2019 and 2018

  Six Months Ended June 30,
  Gross Premiums Written   Net Premiums Written
    2019     2018   %
Change
    2019     2018   %
Change
Commercial Specialty $   141,292   $   123,746   14.2 %   $   122,277   $   109,656   11.5 %
Specialty Property     86,160       88,374   (2.5 %)     73,040     69,519   5.1 %
Farm, Ranch, & Stable   44,462     40,336   10.2 %     37,567     34,543   8.8 %
Reinsurance     49,608       30,608   62.1 %     49,601       30,606   62.1 %
Total $ 321,522   $   283,064   13.6 %   $ 282,485   $ 244,324   15.6 %

Commercial Specialty Operations: Gross premiums written and net premiums written increased 14.2% and 11.5%, respectively, for the six months ended June 30, 2019 as compared to the same period in 2018.  This increase is primarily driven by new programs and increases in excess & surplus lines submissions.

Specialty Property Operations:  Gross premiums written decreased by 2.5% and net premiums written increased by 5.1% for the six months ended June 30, 2019 as compared to the same period in 2018. The decrease in gross premiums written was primarily due to a continued reduction of catastrophe exposed business.  As a result of reducing its catastrophe exposure, Specialty Property ceded less premiums to reinsurers, which contributed to the growth in net premiums written. 

Farm, Ranch, & Stable Operations:  Gross premiums written increased by 10.2% and net premiums written increased by 8.8% for the six months ended June 30, 2019 as compared to the same period in 2018. The increase in gross and net premiums written was primarily due to an increase in pricing as well as new agent appointments. 

Reinsurance Operations: Gross premiums written and net premiums written both increased 62.1% for the six months ended June 30, 2019, as compared to the same period in 2018, mainly due to entering a new casualty treaty during 2019 and rate increases within the property catastrophe line of business.

            
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 June 30,
  For the Six Months
Ended June 30,
    2019     2018       2019
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