0001193125-21-323891.txt : 20211109 0001193125-21-323891.hdr.sgml : 20211109 20211109084000 ACCESSION NUMBER: 0001193125-21-323891 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20211109 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20211109 DATE AS OF CHANGE: 20211109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Global Indemnity Group, LLC CENTRAL INDEX KEY: 0001494904 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 981304287 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34809 FILM NUMBER: 211390041 BUSINESS ADDRESS: STREET 1: 3 BALA PLAZA EAST STREET 2: SUITE 300 CITY: BALA CYNWYD STATE: PA ZIP: 19004 BUSINESS PHONE: 610-664-1500 MAIL ADDRESS: STREET 1: 3 BALA PLAZA EAST STREET 2: SUITE 300 CITY: BALA CYNWYD STATE: PA ZIP: 19004 FORMER COMPANY: FORMER CONFORMED NAME: Global Indemnity Ltd DATE OF NAME CHANGE: 20161107 FORMER COMPANY: FORMER CONFORMED NAME: Global Indemnity plc DATE OF NAME CHANGE: 20100622 8-K 1 d254328d8k.htm 8-K 8-K
false 0001494904 0001494904 2021-11-09 2021-11-09 0001494904 gbli:Class160ACommonSharesNoParValueMember 2021-11-09 2021-11-09 0001494904 us-gaap:SeniorSubordinatedNotesMember 2021-11-09 2021-11-09

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): November 9, 2021

 

 

Global Indemnity Group, LLC

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-34809   85-2619578
(State or other jurisdiction
of incorporation)
  (Commission
File Number)
  (I.R.S. Employer
Identification No.)

 

Three Bala Plaza East, Suite 300

Bala Cynwyd, PA

  19004
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (610) 664-1500

Not Applicable

Former name or former address, if changed since last report

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

  

Trading
Symbol

  

Name of each exchange
on which registered

Class A Common Shares, no par value    GBLI    NASDAQ Global Select Market
7.875% Subordinated Notes due 2047    GBLIL    NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


Item 2.02

Results of Operations and Financial Condition.

On November 9, 2021, Global Indemnity Group, LLC (the “Company”) issued a press release announcing the Company’s financial results for the third quarter ended September 30, 2021.

The information in this Current Report on Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

 

Item 9.01

Financial Statements and Exhibits

(d) Exhibits

99.1 Press Release dated November 9, 2021.

104 Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

      Global Indemnity Group, LLC                
November 9, 2021      

By:                  /s/ Thomas M. McGeehan

      Name: Thomas M. McGeehan
      Title: Chief Financial Officer
EX-99.1 2 d254328dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

PRESS RELEASE

 

For release:    November 9, 2021
Contact:    Media
   Stephen W. Ries
   Head of Investor Relations
   (610) 668-3270
   sries@global-indemnity.com

Global Indemnity Group, LLC Reports Third Quarter 2021 Results

Bala Cynwyd, Pennsylvania, (November 9, 2021) – Global Indemnity Group, LLC (NASDAQ:GBLI) (the “Company”) today reported net income available to shareholders of $3.8 million for the nine months ended September 30, 2021 compared to net loss available to shareholders of $22.2 million for the corresponding period in 2020. Adjusted operating loss was $2.9 million for the nine months ended September 30, 2021 compared to adjusted operating income of $16.8 million for the corresponding period in 2020, which period included a $31.6 million release of prior year reserves as compared to a $0.7 million strengthening in prior year reserves in the current period. Gross written premiums increased 10.6%, net written premiums increased 12.9% and net earned premiums increased 5.6% for the nine months ended September 30, 2021 compared to the same period in 2020.

Selected Operating and Balance Sheet Information

(Dollars in millions, except per share data)

 

     For the Three Months
Ended September 30,
    For the Nine Months
Ended September 30,
 
     2021     2020     2021     2020  

Gross Written Premiums

   $  174.3     $  143.7     $  513.1     $  464.0  

Net Written Premiums

   $ 162.3     $ 130.6     $ 470.6     $ 417.0  

Net Earned Premiums

   $ 157.6     $ 140.3     $ 450.7     $ 426.6  

Net income (loss) available to shareholders

   $ (7.8   $ (15.2   $ 3.8     $ (22.2

Net income (loss) available to shareholders per share

   $ (0.54   $ (1.06   $ 0.26     $ (1.56

Adjusted operating income (loss)

   $ (7.1   $ (4.3   $ (2.9   $ 16.8  

Adjusted operating income (loss) per share

   $ (0.50   $ (0.30   $ (0.22   $ 1.16  

Combined ratio analysis:

        

Loss ratio

     69.3     69.2     64.5     56.7

Expense ratio

     37.6     38.0     38.0     38.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Combined ratio

     106.9     107.2     102.5     95.0
  

 

 

   

 

 

   

 

 

   

 

 

 

 

     As of
September 30,
2021
     As of
June 30,
2021
     As of
March 31,
2021
     As of
December 31,
2020
 

Book value per share (1)

   $ 47.73      $ 48.79      $ 48.00      $ 49.62  

Shareholders’ equity (2)

   $ 695.2      $ 709.6      $ 696.5      $ 718.3  

Cash and invested assets (3)

   $  1,486.3      $  1,476.2      $  1,429.3      $  1,449.9  

 

(1)

Net of cumulative Company distributions/dividends to common shareholders totaling $3.75 per share,$3.50 per share, $3.25 per share, and $3.00 per share as of September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

(2)

Shareholders’ equity includes $4 million of series A cumulative fixed rate preferred shares.

(3)

Including receivable/(payable) for securities sold/(purchased).


Selected Financial Data for the Three Months Ended September 30, 2021:

 

   

Gross written premiums, net written premiums and net earned premiums increased 21.3%, 24.3% and 12.3%, respectively.

 

   

Underwriting income/(loss) – ($10.5) million in 2021 compared to ($9.5) million in 2020. 2020 included a reduction of overall prior accident year loss reserves of $11.7 million compared to a reduction of prior accident year loss reserves of $1.4 million in 2021. Underwriting income for 2021 includes a $14.8 million loss related to Hurricane Ida.

 

   

Investment income – $9.3 million in 2021 compared to $11.7 million in 2020. The decrease was primarily due to a decrease in yield within the fixed maturities portfolio.

 

   

Realized gains/(losses) – ($0.3) million in 2021 compared to $7.3 million in 2020. Realized gains in the 3rd quarter of 2020 reflected a recovery related to the changes in fair value on equity securities previously impacted by the disruption in the global financial markets as a result of COVID-19.

 

   

Tax benefit – $1.8 million in 2021 compared to $3.2 million in 2020.

Selected Financial Data for the Nine Months Ended September 30, 2021:

 

   

Gross written premiums, net written premiums and net earned premiums increased 10.6%, 12.9%, and 5.6%, respectively.

 

   

Underwriting income/(loss) – ($10.2) million in 2021 compared to $22.8 million in 2020. 2020 included a reduction of overall prior accident year loss reserves of $31.6 million. 2021 included reserve strengthening of $0.7 million. Underwriting income for 2021 includes a $14.8 million loss related to Hurricane Ida and a $11.1 million loss from Winter Storm Uri.

 

   

Investment income – $29.8 million in 2021 compared to $19.5 million in 2020. The increase was primarily due to increased returns from alternative investments offset by a decrease in yield within the fixed maturities portfolio.

 

   

Realized gains/(losses) – $7.3 million in 2021 compared to ($22.3) million in 2020. Realized losses in 2020 were primarily due to the impact of changes in fair value on equity securities and derivatives due to disruption in the global financial markets experienced during the first quarter of 2020 as a result of COVID-19.

 

   

Tax benefit – $1.1 million in 2021 compared to $8.2 million in 2020.

Sale of Manufactured and Dwelling Homes Business Lines

On November 2, 2021, in furtherance of the Company’s strategy to focus on core small and middle-market commercial lines, the Company announced the sale of its manufactured and dwelling homes business lines to K2 Insurance Services and American Family Mutual Insurance Company. Pursuant to the tripartite transaction, the Company will receive $30.4 million in cash as well as retain the American Reliable 50-state licensed operating unit, $65 million of net capital supporting the business, and a related $42 million unearned premium reserve.

About Global Indemnity Group, LLC and its subsidiaries

Global 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 Specialty

 

   

Specialty Property

 

   

Farm, Ranch & Stable

 

   

Reinsurance Operations

Forward-Looking Information

The forward-looking statements contained in this press release1 do 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 Three and Nine Months Ended September 30, 2021 and 2020    

For the three months ended September 30, 2021, the Company recorded a combined ratio of 106.9% (Loss Ratio 69.3% and Expense Ratio 37.6%) as compared to 107.2% (Loss Ratio 69.2% and Expense Ratio 38.0%) for the three months ended September 30, 2020.

 

   

The Company’s accident year casualty loss ratio increased by 4.7 points to 63.0% in 2021 from 58.3% in 2020 primarily due to higher claims frequency within Commercial Specialty partially offset by a mix of business change due to growth within Reinsurance Operations.

 

   

The Company’s accident year property loss ratio improved by 12.6 points to 77.7% in 2021 from 90.3% in 2020 primarily due to lower catastrophe claim frequency and severity within Insurance Operations partially offset by higher claim severity of non-catastrophe property claims. Underwriting income for 2021 includes a $14.8 million loss related to Hurricane Ida.

For the nine months ended September 30, 2021, the Company recorded a combined ratio of 102.5% (Loss Ratio 64.5% and Expense Ratio 38.0%) as compared to 95.0% (Loss Ratio 56.7% and Expense Ratio 38.3%) for the nine months ended September 30, 2020.

 

   

The Company’s accident year casualty loss ratio increased by 3.5 points to 60.0% in 2021 from 56.5% in 2020 primarily due to higher claims frequency within Commercial Specialty partially offset by a mix of business change due to growth within Reinsurance Operations.

 

   

The Company’s accident year property loss ratio improved by 0.7 points to 68.5% in 2021 from 69.2% in 2020 primarily due to lower catastrophe claim frequency and severity within Insurance Operations partially offset by higher claim severity for non-catastrophe property claims. Underwriting income for 2021 includes a $14.8 million loss related to Hurricane Ida and a $11.1 million loss related to Winter Storm Uri.

Global Indemnity Group, LLC’s Gross Written and Net Written Premiums Results by Segment for the Three and Nine Months Ended September 30, 2021 and 2020

 

     Three Months Ended September 30,  
     Gross Written Premiums     Net Written Premiums  
     2021      2020      %
Change
    2021      2020      %
Change
 

Commercial Specialty

   $ 95,734      $ 74,971        27.7   $ 89,160      $ 69,074        29.1

Specialty Property

     30,504        34,730        (12.2 %)      27,204        29,971        (9.2 %) 

Farm, Ranch & Stable

     18,500        19,443        (4.9 %)      16,370        16,961        (3.5 %) 

Reinsurance Operations

     29,565        14,605        102.4     29,565        14,605        102.4
  

 

 

    

 

 

      

 

 

    

 

 

    

Total

   $  174,303      $  143,749        21.3   $  162,299      $  130,611        24.3
  

 

 

    

 

 

      

 

 

    

 

 

    

 

     Nine Months Ended September 30,  
     Gross Written Premiums     Net Written Premiums  
     2021      2020      %
Change
    2021      2020      %
Change
 

Commercial Specialty

   $  279,746      $  243,099        15.1   $  256,007      $  219,437        16.7

Specialty Property

     96,875        107,951        (10.3 %)      86,652        93,053        (6.9 %) 

Farm, Ranch & Stable

     60,353        64,798        (6.9 %)      51,853        56,323        (7.9 %) 

Reinsurance Operations

     76,123        48,174        58.0     76,123        48,174        58.0
  

 

 

    

 

 

      

 

 

    

 

 

    

Total

   $ 513,097      $ 464,022        10.6   $ 470,635      $ 416,987        12.9
  

 

 

    

 

 

      

 

 

    

 

 

    

Commercial Specialty: Gross written premiums and net written premiums increased 27.7% and 29.1%, respectively, for the three months ended September 30, 2021 as compared to the same period in 2020. Gross written premiums and net written premiums increased 15.1% and 16.7%, respectively, for the nine months ended September 30, 2021 as compared to the same period in 2020. The growth in gross written premiums and net written premiums was primarily driven by organic growth in the Company’s excess and surplus lines business from existing agents, increased pricing, and several new programs. In addition, the gross written premiums and net written premiums for the nine months ended September 30, 2021 were also further reduced by actions taken to reduce risk and increase profitability within Property Brokerage.


Specialty Property: Gross written premiums and net written premiums decreased by 12.2% and 9.2%, respectively, for the three months ended September 30, 2021 as compared to the same period in 2020. Gross written premiums and net written premiums decreased 10.3% and 6.9%, respectively, for the nine months ended September 30, 2021 as compared to the same period in 2020. The decreases are primarily due to a continued reduction of both catastrophe-exposed business and business not providing an adequate return on capital.

Farm, Ranch & Stable: Gross written premiums and net written premiums decreased by 4.9% and 3.5%, respectively, for the three months ended September 30, 2021 as compared to the same period in 2020. Gross written premiums and net written premiums decreased 6.9% and 7.9%, respectively, for the nine months ended September 30, 2021 as compared to the same period in 2020. The decrease in gross written premiums and net written premiums was primarily due to an effort to reduce exposure in catastrophe prone areas to improve overall profitability.

Reinsurance Operations: Gross written premiums and net written premiums both increased 102.4% for the three months ended September 30, 2021, as compared to the same period in 2020. Gross written premiums and net written premiums both increased 58.0% for the nine months ended September 30, 2021 as compared to the same period in 2020. The growth was primarily organic growth of an existing casualty treaty and the assumption of three smaller casualty treaties partially offset by the non-renewal of its property catastrophe treaties.

###

Note: Tables Follow


GLOBAL INDEMNITY GROUP, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars and shares in thousands, except per share data)

 

     For the Three Months
Ended September 30,
    For the Nine Months
Ended September 30,
 
     2021     2020     2021     2020  

Gross written premiums

   $ 174,303     $ 143,749     $ 513,097     $ 464,022  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net written premiums

   $ 162,299     $ 130,611     $ 470,635     $ 416,987  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earned premiums

   $ 157,565     $ 140,302     $ 450,673     $ 426,617  

Net investment income

     9,344       11,746       29,813       19,516  

Net realized investment gains (losses)

     (310     7,323       7,342       (22,332

Other income

     389       542       1,287       1,473  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     166,988       159,913       489,115       425,274  

Net losses and loss adjustment expenses

     109,195       97,148       290,916       242,092  

Acquisition costs and other underwriting expenses

     59,282       53,268       171,259       163,258  

Corporate and other operating expenses

     5,387       21,196       15,992       34,037  

Interest expense

     2,596       3,620       7,887       13,197  

Loss on extinguishment of debt

     —         3,060       —         3,060  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     (9,472     (18,379     3,061       (30,370

Income tax benefit

     (1,759     (3,209     (1,118     (8,173
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     (7,713     (15,170     4,179       (22,197

Less: Preferred stock distributions

     110       42       330       42  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) available to common shareholders

   $ (7,823   $ (15,212   $ 3,849     $ (22,239
  

 

 

   

 

 

   

 

 

   

 

 

 

Per share data:

        

Net income (loss) available to common shareholders

        

Basic

   $ (0.54   $ (1.06   $ 0.27     $ (1.56

Diluted (1)

   $ (0.54   $ (1.06   $ 0.26     $ (1.56

Weighted-average number of shares outstanding

        

Basic

     14,445       14,304       14,413       14,277  

Diluted (1)

     14,445       14,304       14,651       14,277  

Cash dividends/distributions declared per common share

   $ 0.25     $ 0.25     $ 0.75     $ 0.75  

Combined ratio analysis: (2)

        

Loss ratio

     69.3     69.2     64.5     56.7

Expense ratio

     37.6     38.0     38.0     38.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Combined ratio

     106.9     107.2     102.5     95.0
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

For the three months ended September 30, 2021 and three and nine months ended September 30, 2020, weighted-average 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)

 

     (Unaudited)
September 30, 2021
    December 31, 2020  

ASSETS

    

Fixed Maturities:

    

Available for sale, at fair value

(amortized cost: 2021 - $1,181,112 and 2020 - $1,149,009; net of allowance for expected credit losses of: $0 in 2021 and 2020)

   $ 1,199,969     $ 1,191,186  

Equity securities, at fair value

     90,294       98,990  

Other invested assets

     155,346       97,018  
  

 

 

   

 

 

 

Total investments

     1,445,609       1,387,194  

Cash and cash equivalents

     40,578       67,359  

Premiums receivable, net of allowance for expected credit losses of $3,090 at September 30, 2021 and $2,900 at December 31, 2020

     126,170       109,431  

Reinsurance receivables, net of allowance for expected credit losses of $8,992 at September 30, 2021 and December 31, 2020

     92,898       88,708  

Funds held by ceding insurers

     31,334       45,480  

Deferred federal income taxes

     39,852       34,265  

Deferred acquisition costs

     70,269       65,195  

Intangible assets

     20,565       20,962  

Goodwill

     6,521       6,521  

Prepaid reinsurance premiums

     14,431       12,881  

Receivable for securities sold

     86       —    

Lease right of use assets

     19,963       21,077  

Other assets

     42,345       45,835  
  

 

 

   

 

 

 

Total assets

   $ 1,950,621     $ 1,904,908  
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

Liabilities:

    

Unpaid losses and loss adjustment expenses

   $ 731,765     $ 662,811  

Unearned premiums

     313,007       291,495  

Ceded balances payable

     9,411       8,943  

Payable for securities purchased

     —         4,667  

Contingent commissions

     8,206       10,832  

Debt

     126,394       126,288  

Lease liabilities

     21,700       22,950  

Other liabilities

     44,952       58,598  
  

 

 

   

 

 

 

Total liabilities

     1,255,435       1,186,584  
  

 

 

   

 

 

 

Shareholders’ equity:

    

Series A cumulative fixed rate preferred shares, $1,000 par value; 100,000,000 shares authorized, shares issued and outstanding: 4,000 and 4,000 shares, respectively, liquidation preference: $1,000 and $1,000 per share, respectively

     4,000       4,000  

Common shares: no par value; 900,000,000 common shares authorized; class A common shares issued: 10,551,338 and 10,263,722, respectively; class A common shares outstanding: 10,534,245 and 10,263,722, respectively; class B common shares issued and outstanding: 3,947,206 and 4,133,366, respectively

     —         —    

Additional paid-in capital (1)

     448,776       445,051  

Accumulated other comprehensive income, net of taxes

     15,036       34,308  

Retained earnings (1)

     227,853       234,965  

Class A common shares in treasury, at cost: 17,093 and 0 shares, respectively

     (479     —    
  

 

 

   

 

 

 

Total shareholders’ equity

     695,186       718,324  
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 1,950,621     $ 1,904,908  
  

 

 

   

 

 

 

 

(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 September 30, 2021 and December 31, 2020. Retained earnings are also net of $55 million and $43 million of cumulative historic Company dividends/distributions to shareholders as of September 30, 2021 and December 31, 2020, respectively.


GLOBAL INDEMNITY GROUP, LLC

SELECTED INVESTMENT DATA

(Dollars in millions)

 

     Market Value as of  
     (Unaudited)
September 30, 2021
     December 31, 2020  

Fixed maturities

   $  1,200.0      $  1,191.2  

Cash and cash equivalents

     40.6        67.4  
  

 

 

    

 

 

 

Total bonds and cash and cash equivalents

     1,240.6        1,258.6  

Equities and other invested assets

     245.6        196.0  
  

 

 

    

 

 

 

Total cash and invested assets, gross

     1,486.2        1,454.6  

Receivable (payable) for securities purchased

     0.1        (4.7
  

 

 

    

 

 

 

Total cash and invested assets, net

   $ 1,486.3      $ 1,449.9  
  

 

 

    

 

 

 

 

     Total Investment Return (1)  
     For the Three Months
Ended September 30,
(unaudited)
    For the Nine Months
Ended September 30,
(unaudited)
 
     2021     2020     2021     2020  

Net investment income

   $ 9.3     $ 11.7     $ 29.8     $ 19.5  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized investment gains (losses)

     (0.3     7.3       7.3       (22.3

Net unrealized investment gains (losses)

     (4.8     0.1       (23.7     22.2  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized investment return

     (5.1     7.4       (16.4     (0.1
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment return

   $ 4.2     $ 19.1     $ 13.4     $ 19.4  
  

 

 

   

 

 

   

 

 

   

 

 

 

Average total cash and invested assets

   $  1,481.2     $  1,541.2     $  1,468.1     $  1,528.0  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment return %

     0.3     1.2     0.9     1.3
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

Amounts in this table are shown on a pre-tax basis.


GLOBAL INDEMNITY GROUP, LLC

SUMMARY OF ADJUSTED OPERATING INCOME (LOSS)

(Unaudited)

(Dollars and shares in thousands, except per share data)

 

     For the Three Months
Ended September 30,
    For the Nine Months
Ended September 30,
 
     2021     2020     2021     2020  

Adjusted operating income (loss), net of tax

   $  (7,118   $  (4,314   $  (2,853   $ 16,819  

Adjustments:

        

Net realized investment gains (losses)

     (595     6,102       7,032       (18,454

Expenses related to redomestication

     —         (16,958     —         (20,562
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $  (7,713   $  (15,170   $ 4,179   $ (22,197
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding – basic

     14,445       14,304       14,413       14,277  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding – diluted (1)

     14,445       14,304       14,413       14,421  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating income (loss) per share – basic (2)

   $ (0.50   $ (0.30   $ (0.22   $ 1.18  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating income (loss) per share – diluted (1) (2)

   $ (0.50   $ (0.30   $ (0.22   $ 1.16  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

For the three and nine months ended September 30, 2021 and three months ended September 30, 2020, weighted-average shares outstanding – basic was used to calculate adjusted operating income (loss) per share - diluted due to a net loss for the period.

(2)

The adjusted operating income (loss) per share calculation is net of preferred shareholder distributions of $0.11 million and $0.04 million for the three months ended September 30, 2021 and 2020, respectively, and $0.33 million and $0.04 million for the nine months ended September 30, 2021 and 2020, respectively.

Note Regarding Adjusted Operating Income (Loss)

Adjusted operating income (loss), 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 (loss) is not a substitute for net income (loss) determined in accordance with GAAP, and investors should not place undue reliance on this measure.

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Document and Entity Information
Nov. 09, 2021
Document And Entity Information [Line Items]  
Amendment Flag false
Entity Central Index Key 0001494904
Document Type 8-K
Document Period End Date Nov. 09, 2021
Entity Registrant Name Global Indemnity Group, LLC
Entity Incorporation State Country Code DE
Entity File Number 001-34809
Entity Tax Identification Number 85-2619578
Entity Address, Address Line One Three Bala Plaza East
Entity Address, Address Line Two Suite 300
Entity Address, City or Town Bala Cynwyd
Entity Address, State or Province PA
Entity Address, Postal Zip Code 19004
City Area Code (610)
Local Phone Number 664-1500
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Class 160 A Common Shares No Par Value [Member]  
Document And Entity Information [Line Items]  
Security 12b Title Class A Common Shares, no par value
Trading Symbol GBLI
Security Exchange Name NASDAQ
Senior Subordinated Notes [Member]  
Document And Entity Information [Line Items]  
Security 12b Title 7.875% Subordinated Notes due 2047
Trading Symbol GBLIL
Security Exchange Name NASDAQ
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