UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to 001-34809 Commission File Number GLOBAL INDEMNITY GROUP, LLC (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

Global Indemnity Group (NYSE:GBLI) Q3 2025 Earnings Call October 30, 2025 11:00 AM ET Speaker2Ladies and gentlemen, thank you for standing by. My name is Kelvin and I will be your conference operator today. At this time I would like to welcome everyone to the Global Indemnity Group Q3 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply pre ...

Financial Performance - Operating income increased by 19% to $15.7 million or $1.08 per share for Q3 2025 compared to $13.2 million or $0.95 per share for Q3 2024[2] - Current accident year underwriting income rose by 54% to $10.2 million in Q3 2025 from $6.6 million in Q3 2024, driven by strong property loss ratio performance[2] - Net investment income grew by 9% to $17.9 million in Q3 2025 compared to $16.5 million in Q3 2024[2] - The net income available to common shareholders for Q3 2025 was $12.4 million, slightly down from $12.7 million in Q3 2024[16] - Net income for the nine months ended September 30, 2025, was $18.9 million, down from $34.2 million in 2024, indicating a decrease of 44.5%[22] Premiums and Underwriting - Gross written premiums increased by 9% to $108.4 million in Q3 2025 compared to $99.8 million in Q3 2024; excluding terminated products, the increase was 13%[2] - Net earned premiums for Q3 2025 were $99.7 million, an increase from $95.4 million in Q3 2024, representing a growth of 3.4%[16] - Net written premiums for Q3 2025 were $105.5 million, up from $97.2 million in Q3 2024, reflecting an increase of 8.6%[16] - Direct written premiums for Q3 2025 totaled $92.9 million, a slight decrease of 0.5% from $93.3 million in Q3 2024[13] - Assumed written premiums for Q3 2025 increased significantly to $15.6 million, up 57.7% from $9.9 million in Q3 2024[14] Ratios and Performance Metrics - Current accident year combined ratio improved to 90.4% in Q3 2025 from 93.5% in Q3 2024[2] - The combined ratio for Q3 2025 improved to 90.6%, down from 94.3% in Q3 2024, indicating better underwriting performance[16] - The loss ratio for Q3 2025 improved to 50.1%, compared to 54.9% in Q3 2024, indicating a reduction in loss expenses relative to earned premiums[16] - Current accident year combined ratio excluding California Wildfires improved to 93.2% for the nine months ended September 30, 2025, from 95.0% in 2024[26] Shareholder Equity and Book Value - Book value per share increased to $48.88 at September 30, 2025, up from $48.35 at June 30, 2025, reflecting a 1.8% increase[2] - Shareholders' equity rose to $704.1 million at September 30, 2025, compared to $695.3 million at June 30, 2025[2] - The company returned $644 million to shareholders since its IPO in 2003, including $522 million in share repurchases and $122 million in dividends/distributions[18] Investments - Annualized investment return was reported at 4.0% for Q3 2025[2] - The total annualized investment return for the nine months ended September 30, 2025, was 4.8%, compared to 6.1% for the same period in 2024[20] - Net investment income for Q3 2025 was $17.9 million, compared to $16.5 million in Q3 2024, marking a growth of 8.6%[16] - Total cash and invested assets, net, as of September 30, 2025, amounted to $1,435.2 million, slightly down from $1,440.7 million at the end of 2024[20] - Cash and cash equivalents increased significantly to $75.4 million as of September 30, 2025, from $17.0 million at the end of 2024[20] Corporate Developments - The company acquired Sayata, an AI-enabled digital distribution marketplace and agency operations for commercial insurance[2] - The company announced the transfer of its class A common shares listing to Nasdaq Global Select Market, expected to begin trading on November 4, 2025[2] - Sayata is an AI-enabled insurance marketplace that enhances the company's digital initiatives[32] - The company operates four managing general agencies focused on sourcing, underwriting, and servicing primary and reinsurance business[32] - The specialized insurance product and service entities include Kaleidoscope Insurance Technologies, which develops proprietary underwriting and policy systems[32] - Liberty Insurance Adjustment Agency provides claims evaluation, adjustment, and related services[32]

Core Points - Global Indemnity Group, LLC will transfer its Class A Common Shares listing from the New York Stock Exchange to the Nasdaq Global Select Market, effective after market close on November 3, 2025 [1] - The shares are expected to begin trading on Nasdaq under the existing ticker symbol "GBLI" on November 4, 2025 [1] - This transition to Nasdaq is seen as a significant move for Global Indemnity [1]

WILMINGTON, Del.--(BUSINESS WIRE)--Global Indemnity Group, LLC (NYSE:GBLI) ("GBLI†), announced today that it will release its third quarter 2025 earnings before market open on Thursday, October 30, 2025. GBLI will hold an earnings call to discuss third quarter 2025 results on Thursday, October 30, 2025 at 11:00 a.m. Eastern. The earnings call will be webcast on GBLI's website at www.gbli.com. Investors and analysts interested in asking representatives of GBLI's management questions regarding th. ...

Global Indemnity Group (GBLI), through its subsidiary Penn-America Underwriters (PAU), has launched a new reinsurance managing general agency (MGA). The new unit represents PAU’s first de novo venture in its MGA platform expansion. It will be led by George Dragonetti, an experienced reinsurance executive, who will serve as its president. PAU is focused on underwriting, growth and distribution of both insurance and reinsurance products. It also offers technology solutions and claims services. Before joi ...

Core Insights - Global Indemnity Group, LLC's subsidiary, Penn-America Underwriters, LLC, is launching its first reinsurance managing general agency (MGA) in collaboration with George Dragonetti, who will serve as President of the new unit [1][2]. Company Overview - Global Indemnity Group, LLC (NYSE:GBLI) is a publicly listed holding company focused on property and casualty insurance-related businesses [3]. - The company holds controlling interests in multiple agencies and strategic insurance product and service businesses, including Penn-America Insurance Services, J.H. Ferguson and Associates, and Kaleidoscope Insurance Technologies [3]. Leadership and Expertise - George Dragonetti, with over three decades of reinsurance experience, will lead the new MGA. His background includes 13 years in Bermuda and 20 years in the U.S. [2]. - The leadership team aims to drive innovation, growth, and superior underwriting performance for the new reinsurance platform [2]. Strategic Importance - The launch of the MGA is seen as a significant milestone for Penn-America Underwriters, enhancing its capabilities in specialized insurance and reinsurance solutions [2]. - The initiative is part of GBLI's broader Manifest strategy, which focuses on expanding the company's offerings in the insurance sector [2].

PART I – FINANCIAL INFORMATION This section provides the unaudited consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive income, changes in shareholders' equity, and cash flows, along with detailed explanatory notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section details the company's financial position, showing assets, liabilities, and shareholders' equity at specific reporting dates - The company's total assets slightly decreased from **$1.73 billion** at December 31, 2024, to **$1.72 billion** at June 30, 2025[8](index=8&type=chunk) - Total liabilities decreased from **$1.04 billion** to **$1.03 billion** over the same period[8](index=8&type=chunk) - Shareholders' equity increased by **$6.1 million**, from **$689.1 million** to **$695.3 million**[8](index=8&type=chunk) Consolidated Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | Total Assets | $1,720.6 | $1,731.3 | $(10.7) | | Total Liabilities | $1,025.3 | $1,042.1 | $(16.8) | | Total Shareholders' Equity | $695.3 | $689.1 | $6.1 | | Cash and cash equivalents | $67.3 | $17.0 | $50.3 | | Unpaid losses and loss adjustment expenses | $776.1 | $800.4 | $(24.3) | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) This section presents the company's revenues, expenses, and net income for the reported periods, including earnings per share - Net income for the quarter ended June 30, 2025, increased by **2.5%** to **$10.3 million**, while for the six months ended June 30, 2025, it decreased by **70.4%** to **$6.4 million**[10](index=10&type=chunk) - Basic EPS for Q2 2025 was **$0.72**, a slight decrease from **$0.73** in Q2 2024, and for 6M 2025, it was **$0.44**, a significant decrease from **$1.56** in 6M 2024[10](index=10&type=chunk) Consolidated Statements of Operations Highlights (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | % Change (QoQ) | 6M 2025 | 6M 2024 | % Change (YoY) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------------- | | Gross written premiums | $106.8 | $100.7 | 6.1% | $205.5 | $194.2 | 5.8% | | Net earned premiums | $95.1 | $92.8 | 2.5% | $188.5 | $189.4 | (0.5%) | | Net investment income | $14.7 | $15.3 | (3.9%) | $29.5 | $29.8 | (1.1%) | | Net income | $10.3 | $10.1 | 2.5% | $6.4 | $21.5 | (70.4%) | | Basic EPS | $0.72 | $0.73 | (1.4%) | $0.44 | $1.56 | (71.8%) | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section reports net income and other comprehensive income components, reflecting the total change in shareholders' equity from non-owner sources - Comprehensive income for Q2 2025 was **$12.6 million**, an increase from **$12.0 million** in Q2 2024. For the six months ended June 30, 2025, it was **$12.1 million**, a decrease from **$26.3 million** in 6M 2024[13](index=13&type=chunk) - Other comprehensive income, net of tax, for 6M 2025 was **$5.8 million**, up from **$4.8 million** in 6M 2024, primarily driven by unrealized holding gains[13](index=13&type=chunk) Consolidated Statements of Comprehensive Income Highlights (in millions) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net income | $10.3 | $10.1 | $6.4 | $21.5 | | Other comprehensive income, net of tax | $2.3 | $1.9 | $5.8 | $4.8 | | Comprehensive income, net of tax | $12.6 | $12.0 | $12.1 | $26.3 | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section outlines the changes in each component of shareholders' equity, including net income, distributions, and share issuances - Total shareholders' equity increased to **$695.3 million** at June 30, 2025, from **$667.5 million** at June 30, 2024[16](index=16&type=chunk) - The company issued **550,000** class A common shares designated as class A-2 common shares during the six months ended June 30, 2025[16](index=16&type=chunk) - Retained earnings increased to **$264.8 million** at June 30, 2025, from **$256.7 million** at June 30, 2024, after accounting for net income and distributions[16](index=16&type=chunk) Shareholders' Equity Highlights (in millions) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Total shareholders' equity | $695.3 | $667.5 | | Additional paid-in capital | $463.8 | $457.6 | | Retained earnings | $264.8 | $256.7 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the cash inflows and outflows from operating, investing, and financing activities for the reported periods - Net cash provided by operating activities significantly decreased to **$9.4 million** for the six months ended June 30, 2025, from **$36.9 million** in the same period of 2024[19](index=19&type=chunk) - Net cash provided by investing activities shifted from an outflow of **$(17.7) million** in 6M 2024 to an inflow of **$51.1 million** in 6M 2025, primarily due to proceeds from maturity of fixed maturities[19](index=19&type=chunk) - Cash and cash equivalents at the end of the period increased to **$67.3 million** at June 30, 2025, from **$46.7 million** at June 30, 2024[19](index=19&type=chunk) Consolidated Statements of Cash Flows Highlights (in millions) | Cash Flow Activity | 6M 2025 | 6M 2024 | Change | | :-------------------------------- | :------ | :------ | :------- | | Net cash provided by operating activities | $9.4 | $36.9 | $(27.5) | | Net cash provided by (used for) investing activities | $51.1 | $(17.7) | $68.8 | | Net cash used for financing activities | $(10.2) | $(10.6) | $0.4 | | Net change in cash and cash equivalents | $50.3 | $8.7 | $41.6 | | Cash and cash equivalents at end of period | $67.3 | $46.7 | $20.6 | [Notes to Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed explanations of the accounting policies, significant estimates, and specific financial statement line items, offering further context to the unaudited consolidated financial statements [1. Principles of Consolidation and Basis of Presentation](index=8&type=section&id=1.%20Principles%20of%20Consolidation%20and%20Basis%20of%20Presentation) This note describes the basis of financial statement preparation and the entities included in the consolidated financial statements - The interim consolidated financial statements are unaudited and prepared in conformity with United States GAAP[21](index=21&type=chunk) - The consolidated financial statements include Global Indemnity Group, LLC and its wholly owned subsidiaries, with all intercompany balances and transactions eliminated[23](index=23&type=chunk) [2. Investments](index=8&type=section&id=2.%20Investments) This note details the company's investment portfolio, including fixed maturities, equity securities, and related realized gains and net investment income - Total investments decreased to **$1.37 billion** at June 30, 2025, from **$1.42 billion** at December 31, 2024[8](index=8&type=chunk) - The company's fixed maturities portfolio had gross unrealized losses of **$(9.6) million** at June 30, 2025, and **$(14.9) million** at December 31, 2024[24](index=24&type=chunk)[25](index=25&type=chunk) - The company concluded that the unrealized losses are non-credit losses on securities where management does not intend to sell, and it is more likely than not that the Company will not be required to sell the security before recovery[33](index=33&type=chunk) Net Realized Investment Gains (in thousands) | Investment Type | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------- | :------ | :------ | :------ | :------ | | Fixed maturities | $(34) | $(7) | $(21) | $(32) | | Equity securities | $161 | $212 | $284 | $1,084 | | Total | $127 | $205 | $263 | $1,052 | Net Investment Income (in millions) | Source | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------- | :------ | :------ | :------ | :------ | | Fixed maturities | $14.9 | $14.6 | $29.3 | $28.2 | | Equity securities | $0.2 | $0.2 | $0.3 | $0.4 | | Cash and cash equivalents | $0.8 | $0.7 | $1.6 | $1.3 | | Other invested assets | $(0.6) | $0.3 | $(0.7) | $0.9 | | Investment expense | $(0.5) | $(0.5) | $(1.0) | $(1.0) | | Net investment income | $14.7 | $15.3 | $29.5 | $29.8 | [3. Fair Value Measurements](index=18&type=section&id=3.%20Fair%20Value%20Measurements) This note explains the methodologies and hierarchy used to measure the fair value of financial instruments, categorizing assets by input observability - The company's invested assets are categorized based on a fair value hierarchy: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (unobservable inputs)[61](index=61&type=chunk)[64](index=64&type=chunk) - As of June 30, 2025, total assets measured at fair value were **$1.35 billion**, with **$572.4 million** in Level 1 and **$776.5 million** in Level 2[63](index=63&type=chunk) - The company holds interests in three limited partnership investments with an aggregate fair value of **$22.1 million** at June 30, 2025, and **$29.4 million** at December 31, 2024[67](index=67&type=chunk) [4. Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables](index=22&type=section&id=4.%20Allowance%20for%20Expected%20Credit%20Losses%20-%20Premium%20Receivables%20and%20Reinsurance%20Receivables) This note outlines the allowances established for potential credit losses on premium and reinsurance receivables, reflecting estimated uncollectible amounts - The allowance for expected credit losses related to premium receivables decreased to **$3.4 million** at June 30, 2025, from **$3.5 million** at December 31, 2024[74](index=74&type=chunk) - The allowance for expected credit losses related to reinsurance receivables remained stable at **$9.0 million** at both June 30, 2025, and December 31, 2024[75](index=75&type=chunk) Allowance for Expected Credit Losses - Premium Receivables (in millions) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Beginning balance | $3.5 | $4.4 | $3.5 | $4.8 | | Current period provision for expected credit losses | $(0.1) | $(0.4) | $(0.1) | $(0.2) | | Write-offs | $(0.0) | $(0.0) | $(0.1) | $(0.6) | | Ending balance | $3.4 | $4.0 | $3.4 | $4.0 | [5. Income Taxes](index=23&type=section&id=5.%20Income%20Taxes) This note discusses the company's income tax status, effective tax rates, and the impact of recent tax legislation on its financial results - Global Indemnity Group, LLC is a publicly traded partnership and generally not subject to federal income tax[77](index=77&type=chunk) - The effective tax rate for Q2 2025 was **21.2%**, slightly higher than the statutory rate of **21%**, primarily due to non-deductible executive compensation[80](index=80&type=chunk) - The effective tax rate for 6M 2025 was **20.9%**, slightly lower than the statutory rate of **21%**, primarily due to the partnership tax treatment of Global Indemnity Group, LLC's income[81](index=81&type=chunk) - The company is assessing the impact of the U.S. enacted One Big Beautiful Bill Act on July 4, 2025, but does not expect a material effect[83](index=83&type=chunk) [6. Liability for Unpaid Losses and Loss Adjustment Expenses](index=23&type=section&id=6.%20Liability%20for%20Unpaid%20Losses%20and%20Loss%20Adjustment%20Expenses) This note details the company's reserves for future payments of claims and related expenses, including changes from prior accident years - The balance of liability for unpaid losses and loss adjustment expenses at June 30, 2025, was **$776.1 million**, a decrease from **$800.4 million** at December 31, 2024[84](index=84&type=chunk) - Net losses and loss adjustment expenses related to prior years resulted in an increase of less than **$0.1 million** for both Q2 and 6M 2025, compared to decreases in the prior year periods[85](index=85&type=chunk)[87](index=87&type=chunk) Liability for Unpaid Losses and Loss Adjustment Expenses (in millions) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Balance at beginning of period | $794.8 | $853.6 | $800.4 | $850.6 | | Total net losses and loss adjustment expenses | $52.9 | $53.7 | $119.7 | $107.0 | | Total paid net losses and loss adjustment expenses | $68.4 | $61.6 | $142.7 | $111.0 | | Balance at end of period | $776.1 | $844.2 | $776.1 | $844.2 | [7. Shareholders' Equity](index=24&type=section&id=7.%20Shareholders'%20Equity) This note describes the components of shareholders' equity, including common shares, additional paid-in capital, retained earnings, and share repurchase authorizations - The company amended its LLCA effective January 16, 2025, authorizing **5,000,000** class A common shares designated as class A-2 common shares[89](index=89&type=chunk) - On March 6, 2025, **550,000** class A-2 common shares were issued to Fox Paine & Company, LLC, with a grant date fair value of **$11.0 million**[91](index=91&type=chunk)[102](index=102&type=chunk) - No class A common shares were repurchased during the quarter and six months ended June 30, 2025, with a remaining authorization of **$101.0 million**[92](index=92&type=chunk) Common Share Distributions (in millions) | Period | Total Distributions Declared | | :-------------------------------- | :--------------------------- | | Six Months Ended June 30, 2025 | $10.0 | | Six Months Ended June 30, 2024 | $9.5 | [8. Related Party Transactions](index=26&type=section&id=8.%20Related%20Party%20Transactions) This note discloses transactions and relationships with related parties, including management fees and advisory fees paid to controlling entities - Fox Paine Entities beneficially own approximately **83.8%** of the voting power of Global Indemnity Group, LLC as of June 30, 2025, and control the appointment of all directors[98](index=98&type=chunk) - Management fee expense of **$0.8 million** was incurred for each of Q2 2025 and Q2 2024, and **$1.6 million** for each of 6M 2025 and 6M 2024[99](index=99&type=chunk) - An advisory fee of **$11.0 million** (grant date fair value of Class A-2 common shares) and **$0.2 million** in cash was approved for Fox Paine & Company, LLC for services related to the company's internal corporate reorganization[102](index=102&type=chunk) [9. Commitments and Contingencies](index=27&type=section&id=9.%20Commitments%20and%20Contingencies) This note outlines the company's legal proceedings, unfunded investment commitments, and other contractual obligations that may impact future financial results - The company is involved in various legal proceedings in the ordinary course of business, but does not believe their resolution will have a material adverse effect[104](index=104&type=chunk) - The company has an unfunded commitment of **$14.2 million** to an alternative investment vehicle (European non-performing loans) as of June 30, 2025, with no expected future capital calls[107](index=107&type=chunk) - The company is party to a Management Agreement with Fox Paine & Company, LLC, for which an annual management fee is paid[108](index=108&type=chunk) [10. Share-Based Compensation Plans](index=28&type=section&id=10.%20Share-Based%20Compensation%20Plans) This note details the company's share-based compensation arrangements, including stock options and share grants to employees and directors - During the six months ended June 30, 2025, the company granted **50,000** Time-Based Stock Options at a strike price of **$36.25**, vesting on December 31, 2028[109](index=109&type=chunk) - No restricted class A common shares or restricted stock units were granted or forfeited during the quarters and six months ended June 30, 2025[111](index=111&type=chunk) - The company granted **38,129** class A common shares to non-employee directors during the six months ended June 30, 2025, at a weighted average grant date value of **$32.05** per share[113](index=113&type=chunk) [11. Earnings Per Share](index=29&type=section&id=11.%20Earnings%20Per%20Share) This note provides the calculation of basic and diluted earnings per share, including the reconciliation of net income to common shareholders Earnings Per Share (EPS) Data (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net income available to common shareholders | $10.2 | $10.0 | $6.1 | $21.2 | | Basic EPS | $0.72 | $0.73 | $0.44 | $1.56 | | Diluted EPS | $0.71 | $0.73 | $0.43 | $1.55 | - Weighted average shares for basic EPS were **14.3 million** for Q2 2025 and **14.1 million** for 6M 2025[114](index=114&type=chunk) [12. Segment Information](index=29&type=section&id=12.%20Segment%20Information) This note presents financial data for the company's new reportable segments, reflecting the impact of a recent internal business reorganization - The company underwent an extensive internal business reorganization on December 31, 2024, leading to new reportable segments[115](index=115&type=chunk) - The three new reportable segments are Agency and Insurance Services, Belmont Insurance Companies - Core, and Belmont Insurance Companies - Non-Core[116](index=116&type=chunk)[121](index=121&type=chunk) - Agency and Insurance Services recorded **$28.9 million** in commission and service fee income for the six months ended June 30, 2025, with no comparable revenue in 2024 due to new affiliated service agreements[128](index=128&type=chunk)[119](index=119&type=chunk) Segment Underwriting Income (Loss) (in millions) | Segment | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Agency and Insurance Services | $2.3 | $0 | $4.1 | $0 | | Belmont Core | $2.7 | $4.7 | $(8.8) | $10.3 | | Belmont Non-Core | $0.8 | $(1.1) | $0.0 | $(1.5) | | Total Underwriting Income (Loss) | $5.8 | $3.5 | $(4.7) | $8.8 | [13. New Accounting Pronouncements](index=34&type=section&id=13.%20New%20Accounting%20Pronouncements) This note discusses the adoption status of new accounting pronouncements and their potential impact on the company's financial statements - The Company did not adopt any new accounting pronouncements during the six months ended June 30, 2025[132](index=132&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition, highlighting key operational and financial trends, segment results, and significant changes for the reported periods [Financial Highlights](index=35&type=section&id=Financial%20Highlights) This section summarizes key financial metrics and performance indicators for the reported periods, including premiums, underwriting income, and equity - Gross written premiums increased **6.1%** to **$106.8 million** for Q2 2025 and **5.8%** to **$205.5 million** for 6M 2025[138](index=138&type=chunk)[146](index=146&type=chunk) - Current accident year underwriting income increased **61%** to **$5.6 million** for Q2 2025[138](index=138&type=chunk) - Net investment income for Q2 2025 was **$14.7 million**, a **3.9%** decrease from Q2 2024, primarily due to losses from limited partnerships[138](index=138&type=chunk) - The current accident year combined ratio improved to **94.6%** in Q2 2025 from **96.7%** in Q2 2024[138](index=138&type=chunk) - Net income for Q2 2025 was **$10.3 million** (**$0.71** diluted EPS), compared to **$10.1 million** (**$0.73** diluted EPS) in Q2 2024[138](index=138&type=chunk) - Total cash and investments remained at **$1.4 billion** at June 30, 2025, with fixed maturities and cash comprising **98%** of total investments[143](index=143&type=chunk) - Shareholders' equity increased by **$6.1 million** to **$695.3 million** at June 30, 2025, from **$687.1 million** at March 31, 2025[143](index=143&type=chunk) - Book value per common share increased to **$48.35** at June 30, 2025, from **$47.85** at March 31, 2025[143](index=143&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) This section analyzes the company's operational performance, detailing changes in premiums, underwriting income, investment income, and net income [Premiums](index=37&type=section&id=Premiums) This section analyzes changes in gross and net written premiums across different business segments, highlighting growth drivers and product terminations - Gross written premiums increased by **6.1%** to **$106.8 million** for the quarter ended June 30, 2025, and by **5.8%** to **$205.5 million** for the six months ended June 30, 2025[146](index=146&type=chunk) - Direct written premiums for Wholesale Commercial, Vacant Express, and Collectibles collectively grew by **10.3%** (Q2) and **9.5%** (6M) due to premium rate increases, new agency appointments, organic growth, and new products[147](index=147&type=chunk) - Direct written premiums for Specialty Products declined by **26.1%** (Q2) and **42.0%** (6M) due to the termination of products not meeting profitability expectations[147](index=147&type=chunk) - Belmont Core's assumed business grew by **85.5%** (Q2) and **144.1%** (6M) due to new treaties incepting in 2024 and 2025[148](index=148&type=chunk) Premium Volume by Segment (in millions) | Metric | Q2 2025 | Q2 2024 | % Change (QoQ) | 6M 2025 | 6M 2024 | % Change (YoY) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------------- | | Gross written premiums | $106.8 | $100.7 | 6.1% | $205.5 | $194.2 | 5.8% | | Net written premiums | $103.9 | $97.8 | 6.3% | $199.8 | $189.8 | 5.2% | | Belmont Core Gross written premiums | $109.8 | $100.6 | 9.2% | $208.2 | $194.6 | 7.0% | | Belmont Non-Core Gross written premiums | $(3.0) | $0.2 | NM | $(2.7) | $(0.4) | NM | [Underwriting Income (Loss)](index=39&type=section&id=Underwriting%20Income%20(Loss)) This section discusses the company's underwriting performance, including income, losses, and combined ratios, with specific attention to catastrophe impacts - Underwriting income for Q2 2025 was **$5.8 million**, a **64.4%** increase from **$3.5 million** in Q2 2024[141](index=141&type=chunk) - The company reported an underwriting loss of **$4.7 million** for 6M 2025, compared to an underwriting income of **$8.8 million** for 6M 2024, primarily due to **$15.7 million** in net losses from California Wildfires[156](index=156&type=chunk) - The current accident year combined ratio improved by **2.1 points** to **94.6%** for Q2 2025[152](index=152&type=chunk) - Excluding California Wildfires, the current accident year combined ratio for 6M 2025 was **94.7%**, an improvement from **95.8%** in 6M 2024[158](index=158&type=chunk) Underwriting Ratios | Ratio | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Loss ratio | 55.6% | 57.8% | 63.5% | 56.5% | | Expense ratio | 38.8% | 38.8% | 39.5% | 39.2% | | Combined ratio | 94.4% | 96.6% | 103.0% | 95.7% | | Current accident year combined ratio | 94.6% | 96.7% | 103.0% | 95.8% | [Net investment income](index=44&type=section&id=Net%20investment%20income) This section analyzes the trends in net investment income, detailing contributions from fixed maturities, equity securities, and limited partnerships - Net investment income decreased by **3.9%** to **$14.7 million** for Q2 2025 and by **1.1%** to **$29.5 million** for 6M 2025, mainly due to performance in limited partnerships[164](index=164&type=chunk) - Net investment income from the fixed maturities portfolio increased by **2.3%** (Q2) and **4.4%** (6M) due to an improved yield[167](index=167&type=chunk) - The book yield on the fixed maturities portfolio increased to **4.54%** at June 30, 2025, from **4.47%** at June 30, 2024[167](index=167&type=chunk) - Approximately **$400 million** of the fixed maturities portfolio was reinvested at **5.5%** during 6M 2025, increasing duration to **1.2 years**[167](index=167&type=chunk) Net Investment Income by Source (in millions) | Source | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------- | :------ | :------ | :------ | :------ | | Fixed maturities | $15.3 | $15.0 | $30.2 | $28.9 | | Limited partnerships | $(0.6) | $0.3 | $(0.7) | $0.9 | | Net investment income | $14.7 | $15.3 | $29.5 | $29.8 | [Net Realized Investment Gains](index=45&type=section&id=Net%20Realized%20Investment%20Gains) This section reports on the realized gains and losses from the sale of investment securities, categorized by investment type - Net realized investment gains decreased by **38.0%** to **$0.1 million** for Q2 2025 and by **75.0%** to **$0.3 million** for 6M 2025[170](index=170&type=chunk) - Equity securities contributed **$0.2 million** in net realized gains for Q2 2025 and **$0.3 million** for 6M 2025[170](index=170&type=chunk) Net Realized Investment Gains (in thousands) | Investment Type | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------- | :------ | :------ | :------ | :------ | | Equity securities | $161 | $212 | $284 | $1,084 | | Fixed maturities | $(34) | $(7) | $(21) | $(32) | | Total | $127 | $205 | $263 | $1,052 | [Corporate Expenses](index=45&type=section&id=Corporate%20Expenses) This section explains changes in corporate expenses, including professional fees and advisory fees related to internal reorganizations - Corporate expenses increased by **$1.1 million** to **$7.5 million** for Q2 2025, primarily due to increased professional fees related to newly formed agency and insurance services companies[172](index=172&type=chunk) - For 6M 2025, corporate expenses increased by **$4.3 million** to **$17.0 million**, driven by **$2.9 million** in advisory fees (stock compensation) related to the internal reorganization and increased employee/professional fees[173](index=173&type=chunk) [Income Tax Expense](index=45&type=section&id=Income%20Tax%20Expense) This section details the company's income tax expense, effective tax rates, and the factors influencing tax liabilities for the reported periods - Income tax expense for Q2 2025 was **$2.8 million** on pre-tax income of **$13.1 million**, compared to **$2.6 million** on **$12.7 million** in Q2 2024[174](index=174&type=chunk) - For 6M 2025, income tax expense was **$1.7 million** on pre-tax income of **$8.0 million**, a significant decrease from **$5.5 million** on **$26.9 million** in 6M 2024[174](index=174&type=chunk) [Net Income](index=46&type=section&id=Net%20Income) This section presents the company's net income for the reported periods, including the impact of significant events like the California Wildfires - Net income for Q2 2025 was **$10.3 million**, a slight increase from **$10.1 million** in Q2 2024[176](index=176&type=chunk) - Net income for 6M 2025 was **$6.4 million**. Excluding the after-tax impact of California Wildfires (**$12.2 million**), net income would have been **$18.8 million**[176](index=176&type=chunk) [Reserves](index=46&type=section&id=Reserves) This section discusses the company's gross and net reserves for unpaid losses and loss adjustment expenses, including the impact of frequency and severity changes - Carried gross reserves for unpaid losses and loss adjustment expenses were **$776.1 million** at June 30, 2025, down from **$800.4 million** at December 31, 2024[177](index=177&type=chunk) - Net reserves were **$716.6 million** at June 30, 2025, compared to **$739.6 million** at December 31, 2024[177](index=177&type=chunk) - Gross and net reserves related to Belmont Non-Core are declining as it services the run-off of de-emphasized and terminated business[178](index=178&type=chunk) Impact of Frequency and Severity Changes on Current Accident Year Net Losses (in millions) | Frequency Change | -10% Severity | -5% Severity | 0% Severity | 5% Severity | 10% Severity | | :--------------- | :------------ | :----------- | :---------- | :---------- | :----------- | | -5% | $(17.4) | $(11.7) | $(6.0) | $(0.3) | $5.4 | | 0% | $(12.0) | $(6.0) | $0 | $6.0 | $12.0 | | 5% | $(6.6) | $(0.3) | $6.0 | $12.3 | $18.6 | [Reconciliation of non-GAAP financial measures and ratios](index=48&type=section&id=Reconciliation%20of%20non-GAAP%20financial%20measures%20and%20ratios) The company provides non-GAAP financial measures to exclude the impact of prior accident year adjustments and the California Wildfires for a clearer evaluation of underwriting performance - The company provides non-GAAP financial measures to exclude the impact of prior accident year adjustments and the California Wildfires for a clearer evaluation of underwriting performance[182](index=182&type=chunk) - Current accident year underwriting income, excluding California Wildfires, was **$10.9 million** for the six months ended June 30, 2025[185](index=185&type=chunk) - Net income, excluding California Wildfires (net of tax), was **$18.8 million** for the six months ended June 30, 2025[185](index=185&type=chunk) - The current accident year combined ratio, excluding California Wildfires, was **94.7%** for the six months ended June 30, 2025[185](index=185&type=chunk) Non-GAAP Reconciliation Highlights (6M Ended June 30, 2025, in millions) | Metric | GAAP | Non-GAAP (Excl. CA Wildfires) | | :-------------------------------- | :----- | :---------------------------- | | Underwriting income (loss) | $(4.7) | $11.0 | | Net income | $6.4 | $18.8 | | Current accident year combined ratio | 103.0% | 94.7% | [Critical Accounting Estimates and Policies](index=50&type=section&id=Critical%20Accounting%20Estimates%20and%20Policies) This section identifies the key accounting policies and estimates that require significant judgment and their potential impact on the financial statements - The company's critical accounting policies involve significant estimates for liability for unpaid losses, reinsurance receivables, investments, fair value measurements, goodwill, intangible assets, deferred acquisition costs, and taxation[189](index=189&type=chunk) - There have been no significant changes to these critical accounting policies or underlying methodologies during the current year[189](index=189&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes the company's ability to generate and manage cash, including sources and uses of funds, cash flows, and capital adequacy [Sources and Uses of Funds](index=50&type=section&id=Sources%20and%20Uses%20of%20Funds) This section outlines the primary sources of the company's funds and how they are utilized, including intercompany dividends and ownership structures - Global Indemnity Group, LLC's principal assets are ownership in Belmont Holdings GX, Inc. and Penn-America Underwriters, LLC[191](index=191&type=chunk) - Insurance subsidiaries declared extraordinary dividends of **$100.0 million** in June 2025, approved in July 2025, for distribution to Belmont Holdings GX, Inc. in Q3 2025[198](index=198&type=chunk) - Dividend limitations are imposed by state laws based on statutory financial results, which differ from GAAP[197](index=197&type=chunk) [Cash Flows](index=51&type=section&id=Cash%20Flows) This section details the changes in cash flows from operating, investing, and financing activities, explaining significant fluctuations - Net cash provided by operating activities decreased by **$27.5 million** to **$9.4 million** for the six months ended June 30, 2025, compared to **$36.9 million** in the same period of 2024[199](index=199&type=chunk) - The decline in operating cash flows was primarily driven by an increase in current accident year catastrophe property net losses and prior accident year casualty net losses paid from the Belmont Non-Core Casualty lines of business[199](index=199&type=chunk) Operating Cash Flow Components (in millions) | Cash Flow Activity | 6M 2025 | 6M 2024 | Change | | :-------------------------------- | :------ | :------ | :------- | | Net premiums collected | $210.9 | $199.6 | $11.2 | | Net losses and loss adjustment expenses paid | $(150.5) | $(108.6) | $(41.9) | | Underwriting and corporate expenses | $(90.5) | $(72.6) | $(18.0) | | Net investment income | $41.6 | $21.0 | $20.6 | | Net cash provided by operating activities | $9.4 | $36.9 | $(27.5) | [Liquidity](index=51&type=section&id=Liquidity) This section assesses the company's short-term financial flexibility, including distribution payments and proceeds from investment redemptions - Quarterly distribution payments of **$0.35** per common share were declared, totaling **$10.0 million** paid to common shareholders during the six months ended June 30, 2025[200](index=200&type=chunk) - Distributions of **$0.2 million** were paid to preferred shareholders during the six months ended June 30, 2025[200](index=200&type=chunk) - Partial redemption proceeds of **$4.4 million** were received from the Global Debt Fund, LP during the six months ended June 30, 2025[201](index=201&type=chunk) - No material changes to the company's liquidity were reported during the quarter and six months ended June 30, 2025, other than the discussed items[203](index=203&type=chunk) [Capital Resources](index=52&type=section&id=Capital%20Resources) This section discusses the company's capital structure and any material changes to its capital resources during the reporting period - There have been no material changes to the company's capital resources during the quarter and six months ended June 30, 2025[204](index=204&type=chunk) [Off Balance Sheet Arrangements](index=52&type=section&id=Off%20Balance%20Sheet%20Arrangements) This section confirms the absence of any off-balance sheet arrangements that could materially affect the company's financial position - The Company has no off balance sheet arrangements[206](index=206&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=52&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section advises readers that the report contains forward-looking statements subject to risks and uncertainties, and the company disclaims any obligation to update them - Forward-looking statements in the report are based on current expectations and projections, subject to various risks and uncertainties[209](index=209&type=chunk) - Key risks include legislative/regulatory actions, natural disasters, sufficiency of reserves, adverse capital market developments, cyber-attacks, and other factors detailed in the 2024 Annual Report on Form 10-K[209](index=209&type=chunk) - The Company undertakes no obligation to publicly update or review any forward-looking statement[210](index=210&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the company's exposure to market risks, primarily interest rate, credit, equity price, and foreign exchange risks, confirming no material changes and highlighting portfolio quality - The company's primary market risks are interest rate risk, credit risk (fixed maturities), equity price risk (equity securities), and foreign exchange risk[211](index=211&type=chunk) - There have been no material changes to the company's market risk since December 31, 2024[212](index=212&type=chunk) - The investment grade fixed income portfolio maintains an **AA-** average rating and a duration of **1.2 years**[212](index=212&type=chunk) [Item 4. Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) This section reports on the evaluation of disclosure controls and procedures, concluding their effectiveness and stating no material changes in internal control over financial reporting - Management, with the participation of the CEO and CFO, concluded that the design and operation of the company's disclosure controls and procedures were effective as of June 30, 2025[213](index=213&type=chunk) - There have been no changes in the company's internal control over financial reporting during Q2 2025 that have materially affected, or are reasonably likely to materially affect, these controls[214](index=214&type=chunk) PART II – OTHER INFORMATION This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) This section states that the company is involved in various legal proceedings in the ordinary course of business but does not expect them to have a material adverse effect on its financial condition or operations - The company is involved in various legal proceedings in the ordinary course of business, but does not believe their resolution will have a material adverse effect on its business, results of operations, cash flows, or financial condition[216](index=216&type=chunk) - The company closely monitors relationships with reinsurers in runoff due to a greater potential for disputes[217](index=217&type=chunk) [Item 1A. Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the company's 2024 Annual Report on Form 10-K for a detailed discussion of risk factors and confirms that no material changes have occurred since that filing - The risk factors identified in the company's 2024 Annual Report on Form 10-K have not materially changed[218](index=218&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports no unregistered sales of equity securities, no share repurchases from third parties, and no shares surrendered by employees during the reporting period - There were no sales of unregistered equity securities during the quarter ended June 30, 2025[219](index=219&type=chunk) - Global Indemnity Group, LLC did not repurchase any shares from third parties under its repurchase program during the quarter and six months ended June 30, 2025[219](index=219&type=chunk) - No shares were surrendered by the company's employees during the quarter and six months ended June 30, 2025[220](index=220&type=chunk) [Item 3. Defaults Upon Senior Securities](index=54&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section confirms that there were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities during the reporting period[221](index=221&type=chunk) [Item 4. Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that there are no mine safety disclosures to report for the company - There are no mine safety disclosures to report[222](index=222&type=chunk) [Item 5. Other Information](index=54&type=section&id=Item%205.%20Other%20Information) This section reports that none of the company's directors or Section 16 officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - None of the company's directors or Section 16 officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[223](index=223&type=chunk) [Item 6. Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including various certifications from the CEO and CFO, as well as Inline XBRL documents - The report includes certifications from the Chief Executive Officer and Chief Financial Officer (Exhibits 31.1, 31.2, 32.1, 32.2)[227](index=227&type=chunk) - Inline XBRL documents (101.INS, 101.SCH, 104) are also filed as exhibits[227](index=227&type=chunk) [Signature](index=56&type=section&id=Signature) This section contains the official signature block for the registrant, Global Indemnity Group, LLC, confirming the filing of the report - The report was signed on behalf of Global Indemnity Group, LLC by Brian J. Riley, Chief Financial Officer, on August 6, 2025[229](index=229&type=chunk)

Financial Data and Key Metrics Changes - The accident year combined ratio improved to 94.6%, resulting in an underwriting profit of $5,600,000, a significant increase from $96,700,000 recorded last year [6] - Net income for the quarter was $10,300,000, consistent with last year's results of $10,100,000 [12][13] - Book value per share increased from $47.85 at March 31 to $48.35 at June 30 [12] Business Line Data and Key Metrics Changes - Gross premiums grew 18% over 2024, reaching $109,900,000, excluding terminated contracts [7][16] - Wholesale commercial premiums increased by 8% to $69,100,000, with average rate increases of about 4% [17] - Bacon Express premiums grew 27% to $12,400,000, driven by organic growth [18] Market Data and Key Metrics Changes - The overall premium growth outlook for 2025 is positive, with expectations of 10% growth [19] - The non-cat loss ratio improved to 50.1 in 2025 from 54.1 in 2024, indicating better underwriting performance [15] Company Strategy and Development Direction - The company is investing in technology and expanding underwriting capabilities through organic growth and selective acquisitions [10] - A new policy rating and issuance system is expected to be rolled out to agency partners in early 2026 [8] Management Comments on Operating Environment and Future Outlook - Management noted that while there are growth opportunities in certain segments, there are also emerging price competition in small commercial lines [23] - The company expects to maintain solid premium pricing in line with loss inflation [19] Other Important Information - The company received approval for $100,000,000 in dividends from its insurance subsidiaries to bolster liquidity [9] - Discretionary capital was reported at $265,000,000, supporting growth in the Agency and Insurance Services segment [20] Q&A Session Summary Question: What is the nature of the corporate expenses related to business development? - Management explained that they are looking to expand agency operations and have been reviewing various opportunities, which involves some due diligence costs [22] Question: What is the outlook for the overall E&S market? - Management indicated that while there are growth opportunities in certain segments, there is increased price competition in small commercial lines [23] Question: Will administrative expenses continue to grow? - Management stated that while they are engaging outside contractors for reviews, any significant increase in expenses would likely coincide with closing transactions [28][30] Question: What is the exposure to new fires in California? - Management confirmed that initial reserves for California wildfires have remained stable, with no significant new exposure identified [31] Question: What are the return on equity targets for the next few years? - Management expects returns on equity to reach around 12% for the insurance operations and 8% to 9% for the holding company, with a focus on reducing the expense ratio [34][35]

[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) This section provides an overview of Global Indemnity Group's strong Q2 2025 performance and its core business operations as a property and casualty insurance holding company [Introduction & Q2 2025 Highlights](index=1&type=section&id=Introduction%20%26%20Q2%202025%20Highlights) Global Indemnity Group reported strong Q2 2025 results, marked by significant growth in underwriting income and continued premium expansion Q2 2025 Highlights | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change ($M) | Change (%) | | :---------------------------------- | :----------- | :----------- | :---------- | :--------- | | Current accident year underwriting income | 5.6 | 3.5 | 2.1 | 60.0% | | Gross written premiums | 106.8 | 100.7 | 6.1 | 6.1% | | Gross written premiums (excl. terminated products) | 109.9 | 93.4 | 16.5 | 17.7% | | Book value per share | 48.35 | 47.85 | 0.50 | 1.0% | | Net income available to common shareholders | 10.2 | 10.0 | 0.2 | 2.0% | | Net income available to common shareholders per share | 0.71 | 0.73 | (0.02) | -2.7% | | Current accident year combined ratio | 94.6% | 96.7% | -2.1% | | | Net investment income | 14.7 | 15.3 | (0.6) | -3.9% | [About Global Indemnity Group, LLC](index=9&type=section&id=About%20Global%20Indemnity%20Group,%20LLC) Global Indemnity Group, LLC is a publicly listed holding company for property and casualty insurance-related businesses - Global Indemnity Group (NYSE:GBLI) is a publicly listed holding company for property and casualty insurance-related businesses[28](index=28&type=chunk) - **Key Subsidiaries and Operations:** * **Penn-America Underwriters, LLC:** Comprises three agencies (Penn-America Insurance Services, J.H. Ferguson and Associates, Collectibles Insurance Services) for sourcing, underwriting, and servicing policies, and two strategic insurance product and service businesses (Liberty Insurance Adjustment Agency, Kaleidoscope Insurance Technologies) * **Belmont Holdings GX, Inc.:** Includes five state-regulated insurance carriers (Penn-Patriot Insurance Company, Diamond State Insurance Company, Penn-Star Insurance Company, Penn-America Insurance Company, and United National Insurance Company), all rated 'A' (Excellent) by AM Best * **Belmont Holdings Asset Management:** Focuses on enhancing investment portfolio performance for property & casualty insurance companies[28](index=28&type=chunk)[31](index=31&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) This section details the company's overall financial health, presenting key operating results, balance sheet positions, and changes in shareholders' equity for recent periods [Selected Consolidated Operating and Balance Sheet Information](index=2&type=section&id=Selected%20Consolidated%20Operating%20and%20Balance%20Sheet%20Information) This section provides a snapshot of key consolidated operating and balance sheet metrics for the three and six months ended June 30, 2025, compared to the same periods in 2024, and balance sheet data as of June 30, 2025, March 31, 2025, and December 31, 2024 Selected Operating Data (Three Months Ended June 30) | Metric | 2025 ($M) | 2024 ($M) | Change ($M) | | :---------------------------------- | :-------- | :-------- | :---------- | | Gross written premiums | 106.8 | 100.7 | 6.1 | | Investment income | 14.7 | 15.3 | (0.6) | | Underwriting income (loss) | 5.8 | 3.5 | 2.3 | | Operating income | 10.2 | 9.9 | 0.3 | | Net income available to common shareholders | 10.2 | 10.0 | 0.2 | | Net income available to common shareholders per share | 0.71 | 0.73 | (0.02) | | Combined ratio | 94.4% | 96.6% | -2.2% | | Combined ratio, current accident year | 94.6% | 96.7% | -2.1% | Selected Balance Sheet Data (As of June 30, 2025 vs. Dec 31, 2024) | Metric | June 30, 2025 ($M) | Dec 31, 2024 ($M) | Change ($M) | | :------------------------ | :----------------- | :---------------- | :---------- | | Cash and invested assets, net | 1,433.0 | 1,440.7 | (7.7) | | Total assets | 1,720.6 | 1,731.3 | (10.7) | | Shareholders' equity | 695.3 | 689.1 | 6.2 | | Book value per share | 48.35 | 49.98 | (1.63) | | Shares Outstanding (in millions) | 14.3 | 13.7 | 0.6 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations detail the company's revenues, expenses, and net income for the three and six months ended June 30, 2025, and 2024 Consolidated Statements of Operations (Three Months Ended June 30) | Metric | 2025 ($K) | 2024 ($K) | Change ($K) | Change (%) | | :---------------------------------- | :-------- | :-------- | :---------- | :--------- | | Gross written premiums | 106,801 | 100,706 | 6,095 | 6.05% | | Net earned premiums | 95,146 | 92,814 | 2,332 | 2.51% | | Total revenues | 110,520 | 108,687 | 1,833 | 1.69% | | Net losses and loss adjustment expenses | 52,948 | 53,662 | (714) | -1.33% | | Acquisition costs and other underwriting expenses | 36,915 | 35,968 | 947 | 2.63% | | Net income available to common shareholders | 10,234 | 9,983 | 251 | 2.51% | | Diluted EPS | 0.71 | 0.73 | (0.02) | -2.74% | | Combined ratio | 94.4% | 96.6% | -2.2% | | Consolidated Statements of Operations (Six Months Ended June 30) | Metric | 2025 ($K) | 2024 ($K) | Change ($K) | Change (%) | | :---------------------------------- | :-------- | :-------- | :---------- | :--------- | | Gross written premiums | 205,476 | 194,194 | 11,282 | 5.81% | | Net earned premiums | 188,462 | 189,393 | (931) | -0.49% | | Total revenues | 219,171 | 220,978 | (1,807) | -0.82% | | Net losses and loss adjustment expenses | 119,686 | 107,046 | 12,640 | 11.81% | | Acquisition costs and other underwriting expenses | 74,422 | 74,237 | 185 | 0.25% | | Net income available to common shareholders | 6,135 | 21,239 | (15,104) | -71.12% | | Diluted EPS | 0.43 | 1.55 | (1.12) | -72.26% | | Combined ratio | 103.0% | 95.7% | +7.3% | | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets provide a snapshot of the company's financial position as of June 30, 2025, compared to December 31, 2024 Consolidated Balance Sheet (As of June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 ($K) | Dec 31, 2024 ($K) | Change ($K) | Change (%) | | :---------------------------------- | :----------------- | :---------------- | :---------- | :--------- | | Total investments | 1,370,985 | 1,423,605 | (52,620) | -3.70% | | Cash and cash equivalents | 67,344 | 17,009 | 50,335 | 295.93% | | Total assets | 1,720,585 | 1,731,253 | (10,668) | -0.62% | | Unpaid losses and loss adjustment expenses | 776,127 | 800,391 | (24,264) | -3.03% | | Unearned premiums | 195,013 | 183,411 | 11,602 | 6.33% | | Total liabilities | 1,025,297 | 1,042,104 | (16,807) | -1.61% | | Total shareholders' equity | 695,288 | 689,149 | 6,139 | 0.89% | [Changes in Common Shareholders' Equity and Book Value per Share](index=2&type=section&id=Changes%20in%20Common%20Shareholders'%20Equity%20and%20Book%20Value%20per%20Share) This section details the changes in common shareholders' equity and book value per share from December 31, 2024, to June 30, 2025 Changes in Common Shareholders' Equity and Book Value per Share (Dec 31, 2024 to June 30, 2025) | Item | Shareholders' Equity ($M) | Shares (M) | Book Value Per Share ($) | | :-------------------------- | :------------------------ | :--------- | :----------------------- | | Balance at Dec 31, 2024 | 685.1 | 13.7 | 49.98 | | Net income | 6.4 | — | 0.43 | | Fair value of fixed maturities | 5.8 | — | 0.42 | | Stock compensation / share issuance | 4.2 | 0.6 | (1.78) | | Dividends | (10.2) | — | (0.70) | | Balance at June 30, 2025 | 691.3 | 14.3 | 48.35 | - The increase in shares outstanding by **0.6 million** includes **550,000 Class A-2 common shares** issued on March 6, 2025, for services related to the Company's internal corporate reorganization[6](index=6&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) This section analyzes the financial performance and premium generation across the company's distinct business segments for the reporting periods [Segment Income](index=3&type=section&id=Segment%20Income) The segment income analysis for Q2 and H1 2025 reveals varied performance across the company's segments Underwriting Income (Three Months Ended June 30) | Segment | 2025 ($M) | 2024 ($M) | Change ($M) | | :-------------------------- | :-------- | :-------- | :---------- | | Agency and Insurance Services | 2.3 | — | 2.3 | | Belmont Core | 2.7 | 4.6 | (1.9) | | Belmont Non-Core | 0.8 | (1.1) | 1.9 | | Consolidated | 5.8 | 3.5 | 2.3 | Underwriting Income (Six Months Ended June 30) | Segment | 2025 ($M) | 2024 ($M) | Change ($M) | | :-------------------------- | :-------- | :-------- | :---------- | | Agency and Insurance Services | 4.1 | — | 4.1 | | Belmont Core | (8.8) | 10.3 | (19.1) | | Belmont Non-Core | — | (1.5) | 1.5 | | Consolidated | (4.7) | 8.8 | (13.5) | - Belmont Core's underwriting income for the six months ended June 30, 2025, was significantly impacted, showing a **loss of $8.8 million** compared to a gain of **$10.3 million** in the prior year[10](index=10&type=chunk) [Segment Written Premiums](index=4&type=section&id=Segment%20Written%20Premiums) This section details the gross and net written premiums across Belmont Core and Belmont Non-Core segments for the three and six months ended June 30, 2025, and 2024 Gross Written Premiums (Three Months Ended June 30) | Segment | 2025 ($K) | 2024 ($K) | Change ($K) | Change (%) | | :---------------- | :-------- | :-------- | :---------- | :--------- | | Belmont Core | 109,819 | 100,552 | 9,267 | 9.22% | | Belmont Non-Core | (3,018) | 154 | (3,172) | Not Meaningful | | Total | 106,801 | 100,706 | 6,095 | 6.05% | Gross Written Premiums (Six Months Ended June 30) | Segment | 2025 ($K) | 2024 ($K) | Change ($K) | Change (%) | | :---------------- | :-------- | :-------- | :---------- | :--------- | | Belmont Core | 208,208 | 194,600 | 13,608 | 6.99% | | Belmont Non-Core | (2,732) | (406) | (2,326) | Not Meaningful | | Total | 205,476 | 194,194 | 11,282 | 5.81% | [Direct Written Premiums by Agency and Insurance Services Segment](index=4&type=section&id=Direct%20Written%20Premiums%20by%20Agency%20and%20Insurance%20Services%20Segment) Direct written premiums for the Agency and Insurance Services segment showed overall growth for both the three and six months ended June 30, 2025 Direct Written Premiums (Three Months Ended June 30) | Product Line | 2025 ($K) | 2024 ($K) | % Change | | :-------------------------- | :-------- | :-------- | :------- | | Wholesale Commercial | 69,075 | 63,877 | 8.1% | | Vacant Express | 12,370 | 9,731 | 27.1% | | Collectibles | 4,186 | 4,014 | 4.3% | | Specialty Products | 12,143 | 16,435 | (26.1%) | | Total direct written premiums | 97,774 | 94,057 | 4.0% | Direct Written Premiums (Six Months Ended June 30) | Product Line | 2025 ($K) | 2024 ($K) | % Change | | :-------------------------- | :-------- | :-------- | :------- | | Wholesale Commercial | 133,957 | 124,932 | 7.2% | | Vacant Express | 23,291 | 18,585 | 25.3% | | Collectibles | 8,285 | 7,668 | 8.0% | | Specialty Products | 19,707 | 34,004 | (42.0%) | | Total direct written premiums | 185,240 | 185,189 | 0.0% | [Assumed Written Premiums by Belmont Segments](index=4&type=section&id=Assumed%20Written%20Premiums%20by%20Belmont%20Segments) Assumed written premiums for Belmont Core showed substantial growth for both the three and six months ended June 30, 2025 Assumed Written Premiums (Three Months Ended June 30) | Segment | 2025 ($K) | 2024 ($K) | % Change | | :---------------- | :-------- | :-------- | :------- | | Belmont Core | 12,045 | 6,495 | 85.5% | | Belmont Non-Core | (3,049) | 143 | Not Meaningful | | Total | 8,996 | 6,638 | 35.5% | Assumed Written Premiums (Six Months Ended June 30) | Segment | 2025 ($K) | 2024 ($K) | % Change | | :---------------- | :-------- | :-------- | :------- | | Belmont Core | 22,968 | 9,411 | 144.1% | | Belmont Non-Core | (2,850) | (509) | Not Meaningful | | Total | 20,118 | 8,902 | 126.0% | [Investment Performance](index=7&type=section&id=Investment%20Performance) This section reviews the company's investment portfolio, detailing asset allocation, investment income, and overall return metrics [Selected Investment Data](index=7&type=section&id=Selected%20Investment%20Data) The company's selected investment data shows a slight decrease in total cash and invested assets net, but an increase in total investment return for the six months ended June 30, 2025 Market Value of Investments (As of June 30, 2025 vs. Dec 31, 2024) | Asset Type | June 30, 2025 ($M) | Dec 31, 2024 ($M) | Change ($M) | Change (%) | | :---------------------------------- | :----------------- | :---------------- | :---------- | :--------- | | Fixed maturities | 1,336.3 | 1,381.9 | (45.6) | -3.30% | | Cash and cash equivalents | 67.3 | 17.0 | 50.3 | 295.88% | | Total cash and invested assets, net | 1,433.0 | 1,440.7 | (7.7) | -0.53% | Total Pre-Tax Investment Return (Three Months Ended June 30) | Metric | 2025 ($M) | 2024 ($M) | Change ($M) | | :-------------------------- | :-------- | :-------- | :---------- | | Net investment income | 14.7 | 15.3 | (0.6) | | Net realized investment gains | 0.1 | 0.2 | (0.1) | | Net unrealized investment gains | 2.9 | 2.4 | 0.5 | | Total investment return | 17.7 | 17.9 | (0.2) | | Annualized investment return % | 4.9% | 5.0% | -0.1% | Total Pre-Tax Investment Return (Six Months Ended June 30) | Metric | 2025 ($M) | 2024 ($M) | Change ($M) | | :-------------------------- | :-------- | :-------- | :---------- | | Net investment income | 29.5 | 29.8 | (0.3) | | Net realized investment gains | 0.3 | 1.1 | (0.8) | | Net unrealized investment gains | 7.2 | 5.9 | 1.3 | | Total investment return | 37.0 | 36.8 | 0.2 | | Annualized investment return % | 5.1% | 5.2% | -0.1% | [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) This section clarifies the definition and reconciliation of non-GAAP financial measures, such as operating income and adjusted combined ratios, used for performance evaluation [Note Regarding Operating Income](index=7&type=section&id=Note%20Regarding%20Operating%20Income) This section defines "Operating income" as a non-GAAP financial measure, which excludes after-tax net realized investment gains and other unique non-operational charges from net income - Operating income is a non-GAAP financial measure, calculated by excluding after-tax net realized investment gains and other unique non-operational charges from net income[24](index=24&type=chunk) - The company explicitly states that operating income is not a substitute for net income determined in accordance with GAAP, and investors should not place undue reliance on this measure[24](index=24&type=chunk) Summary of Operating Income (Three Months Ended June 30) | Metric | 2025 ($K) | 2024 ($K) | | :-------------------------- | :-------- | :-------- | | Operating income, net of tax | 10,242 | 9,935 | | Net realized investment gains, net of tax | 102 | 158 | | Net income | 10,344 | 10,093 | | Operating income per share – diluted | 0.71 | 0.72 | [Reconciliation of Non-GAAP Financial Measures and Ratios](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20and%20Ratios) This section provides detailed reconciliations of various non-GAAP financial measures and ratios to their most directly comparable GAAP measures - The company believes non-GAAP financial measures are useful for investors to evaluate underwriting performance trends, as they exclude the impact of prior accident year adjustments and the California Wildfires[25](index=25&type=chunk) Consolidated Current Accident Year Underwriting Income excluding California Wildfires (Six Months Ended June 30) | Metric | 2025 ($K) | 2024 ($K) | | :---------------------------------------------------- | :-------- | :-------- | | Underwriting income (loss) (GAAP) | (4,689) | 8,812 | | Effect of prior accident year | (53) | (81) | | Current accident year underwriting income (loss) | (4,742) | 8,731 | | California Wildfires net losses and loss adjustment expenses | 15,684 | — | | Current accident year underwriting income excluding California Wildfires (Non-GAAP) | 10,942 | 8,731 | Current Accident Year Combined Ratio excluding California Wildfires (Six Months Ended June 30) | Metric | 2025 | 2024 | | :---------------------------------------------------- | :----- | :----- | | Combined ratio (GAAP) | 103.0% | 95.7% | | Effect of prior accident year | — | 0.1% | | Current accident year combined ratio | 103.0% | 95.8% | | Impact of California Wildfires | (8.3%) | — | | Current accident year combined ratio excluding California Wildfires (Non-GAAP) | 94.7% | 95.8% | [Forward-Looking Information](index=9&type=section&id=Forward-Looking%20Information) This section provides a cautionary disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties that may cause actual results to differ materially [Forward-Looking Statements Disclaimer](index=9&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section serves as a cautionary statement regarding forward-looking statements made in the press release - Forward-looking statements in the press release are subject to risks and uncertainties, and actual results may differ materially from estimates[30](index=30&type=chunk) - The statements are based on estimates and information available at the time of the press release, and Global Indemnity does not assume any obligation to update them[30](index=30&type=chunk) - Investors are advised to consult Global Indemnity's filings with the Securities and Exchange Commission for a discussion of risks and uncertainties[30](index=30&type=chunk)