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 June 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 or or ...

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]

Exhibit 99.1 For release: August 6, 2025 Global Indemnity Group, LLC Reports Second Quarter 2025 Results Wilmington, Del., (August 6, 2025) – Global Indemnity Group, LLC (NYSE:GBLI) (the "Company") today reported strong 2nd quarter 2025 results with 61% growth in underwriting income and continued premium growth. Highlights of Consolidated Results for the Three Months Ended June 30, 2025 • Net income available to common shareholders was $10.2 million or $0.71 per share for 2025 compared to $10.0 million or $ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Washington, D.C. 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to 001-34809 For the Quarterly Period Ended March 31, 2025 Commission File Number OR GLOBAL INDEMNITY GROUP, LLC Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-a ...

Financial Data and Key Metrics Changes - The net loss for the first quarter was $4 million, which included $15.6 million in losses from California wildfires, resulting in a net income of $8.2 million excluding these losses compared to $11.4 million in the same period last year [13] - Book value per share decreased from $49.98 at year-end to $47.85 at March 31, primarily due to stock compensation and comprehensive loss [13] - Investment income increased by 2% to $14.8 million from a year ago, with a current book yield on the fixed income portfolio at 4.5% [14][15] Business Line Data and Key Metrics Changes - Consolidated gross premiums increased by 6% to $98.7 million in 2025 compared to $93.5 million in 2024, with a 16% increase in gross written premiums excluding terminated products [19][20] - The Agency and Insurance Services segment generated income of $1.8 million before tax for the quarter, while the consolidated accident year combined ratio was 111.5, improving to 94.8% when excluding wildfire losses [16][18] Market Data and Key Metrics Changes - The underlying core growth excluding terminated products was 16%, with rate increases and exposure growth modestly exceeding estimates of social and price inflation trends [6][9] - The company anticipates annual average catastrophic losses of $17 million, with the recent Los Angeles wildfires exceeding previous models for wildfire risk [10][11] Company Strategy and Development Direction - The company has completed a strategic restructuring to facilitate efficient and controlled rapid product expansion, with expectations for growth fueled by organic growth and focused acquisitions [7][8] - The focus remains on long-term value creation for shareholders, with investments directed towards the new Pan America underwriter operation rather than share repurchases [33][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving premium growth of at least 10% for 2025, with expectations for improved underwriting performance in the latter part of the year [22] - The company is adopting a defensive strategy in investments due to fluctuating interest rates and is closely monitoring potential fraud claims amid economic downturns [38][39] Other Important Information - The company has maintained staff numbers slightly below 2023 levels while managing expenses, with a target to reduce the expense ratio to 37% or lower in the long term [11][12] - Discretionary capital was reported at $251 million as of March 31, which supports growth investments [22] Q&A Session Summary Question: Can the expense ratio drop below 40% in the next two or three quarters? - Management expects the expense ratio to be in the 39% to 40% range for this year, with the targeted 37% achievable in 2026 or 2027 [27] Question: Why issue stock to insiders instead of repurchasing shares? - The decision to issue shares was based on a contractual obligation to compensate for Project Manifest, with the board believing that investing in operations will create more long-term value [33] Question: Will there be more losses from the LA fire? - Most of the losses have been paid out, and management does not expect any material changes in the reported numbers [37] Question: How will economic factors impact claims and profitability? - Management is focused on monitoring potential fraud claims and premium payment interruptions, emphasizing that insurance operates similarly over the long term despite short-term economic fluctuations [39] Question: Should corporate expenses trend back to prior levels post-Q1? - Corporate expenses are expected to trend back towards historical levels, but potential acquisitions may introduce additional expenses [50]

Financial Data and Key Metrics Changes - The net loss for Q1 2025 was $4 million, which included $15.6 million in pre-tax losses from California wildfires, resulting in a net income of $8.2 million when excluding these losses, compared to $11.4 million in the same period last year [13] - Book value per share decreased from $49.98 at year-end to $47.85 at March 31, primarily due to the comprehensive loss of $500,000 and stock compensation [13][22] - Investment income increased by 2% to $14.8 million from a year ago, with a current book yield on the fixed income portfolio at 4.5% [14] Business Line Data and Key Metrics Changes - Consolidated gross premiums increased by 6% to $98.7 million in 2025 compared to $93.5 million in 2024, with gross written premiums excluding terminated products increasing by 16% to $98.4 million [19] - The Agency and Insurance Services segment generated income of $1.8 million before tax for the quarter, while the consolidated accident year combined ratio was 111.5, improving to 94.8% when excluding wildfire losses [16][18] - The Wholesale Commercial segment grew by 6% to $64.9 million, while Insurtech grew by 20% to $15 million [20] Market Data and Key Metrics Changes - The company anticipates an annual average of $17 million from all catastrophic losses, with the recent Los Angeles wildfires exceeding previous models for wildfire risk [10][11] - The company expects premium growth of at least 10% for 2025, with underwriting performance expected to improve in the last three quarters compared to the same period in 2024 [21][22] Company Strategy and Development Direction - The company has completed a strategic restructuring to facilitate efficient product expansion, with plans for organic growth and targeted acquisitions over the next few years [7][12] - The focus remains on long-term growth rather than short-term stock price boosts, with the board prioritizing investments in operations over share repurchases [32][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying trends despite reported numbers falling short of targets, indicating strong potential for shareholder value growth [12] - The company is adopting a defensive strategy in investments due to fluctuating interest rates and is closely monitoring potential fraud claims amid economic downturns [38] Other Important Information - The company has maintained staff numbers slightly below 2023 levels while growing the business at double-digit rates [11] - Discretionary capital was reported at $251 million as of March 31, which is intended to support growth initiatives [22] Q&A Session Summary Question: Can the expense ratio drop below 40% in the next two or three quarters? - Management expects the expense ratio to be in the 39% to 40% range for this year, with the targeted 37% being a longer-term goal [26] Question: Why issue stock to insiders instead of repurchasing shares? - The decision to issue shares was based on a contractual obligation to compensate for advisory services related to Project Manifest, with the board believing that investing in operations will create more long-term value [31][32] Question: Will there be more losses from the LA fire? - Most of the losses have been paid out, and management does not expect any material changes to the reported numbers [36] Question: How might economic factors impact claims and profitability? - Management is focused on monitoring interest rates and potential fraud claims, emphasizing that insurance operates similarly over the long term despite short-term fluctuations [38] Question: What was the tangible book value dilution from the shares issued? - The per share impact was reported as 1.74 [39] Question: Will corporate expenses trend back to prior levels post-Q1? - Corporate expenses are expected to trend back towards historical levels, but potential acquisitions may introduce additional expenses [48][50]

Financial Performance - The net loss available to common shareholders for Q1 2025 was $4.1 million, or ($0.30) per share, including a $12.2 million loss attributed to California Wildfires[1] - Excluding California Wildfires, net income available to common shareholders was $8.1 million, or $0.58 per share, compared to $11.3 million, or $0.82 per share in Q1 2024[2] - Net income available to common shareholders was a loss of $4,099 million in Q1 2025, compared to a profit of $11,256 million in Q1 2024[17] - The net income available to common shareholders excluding California Wildfires for Q1 2025 was $8,117,000, down from $11,256,000 in Q1 2024[27] - The operating income excluding California Wildfires for Q1 2025 was $8,121,000, compared to $10,692,000 in Q1 2024[27] Premiums and Underwriting - Gross written premiums increased by 6% to $98.7 million in Q1 2025, with a 16% increase to $98.4 million when excluding terminated products[2] - Total direct written premiums decreased by 4.0% to $87,467 million in Q1 2025 from $91,132 million in Q1 2024[14] - InsurTech segment saw a significant growth of 20.1%, with direct written premiums reaching $15,020 million compared to $12,508 million in the previous year[14] - Belmont Core segment reported a remarkable increase of 274.6% in assumed written premiums, totaling $10,922 million, up from $2,916 million[15] - Gross written premiums increased to $98,675 million in Q1 2025, compared to $93,488 million in Q1 2024, reflecting a growth of 5.0%[17] Losses and Expenses - Net losses and loss adjustment expenses rose to $66,738 million, up from $53,384 million, indicating a significant increase in claims[17] - The California Wildfires resulted in net losses and loss adjustment expenses of $15,600,000 for the current accident year[27] Ratios and Financial Metrics - The current accident year combined ratio was 111.5% in Q1 2025, compared to 94.9% in Q1 2024; excluding California Wildfires, it would have been 94.8%[2] - The combined ratio deteriorated to 111.7% in Q1 2025 from 94.9% in Q1 2024, highlighting increased underwriting losses[17] - The current accident year underwriting income (loss) was a loss of $10,328,000 in Q1 2025, compared to an income of $5,272,000 in Q1 2024[27] - The current accident year combined ratio excluding California Wildfires was 94.8% in Q1 2025, compared to 94.9% in Q1 2024[27] - The effect of prior accident year on the combined ratio was a decrease of 0.2% in Q1 2025[27] Shareholder Equity and Book Value - Shareholders' equity decreased to $687.1 million as of March 31, 2025, from $689.1 million at December 31, 2024[2] - Book value per common share fell to $47.85 at March 31, 2025, down from $49.98 at December 31, 2024[2] Investment Performance - Net investment income rose by 2% to $14.8 million in Q1 2025 compared to the same period in 2024[2] - The total annualized investment return remained stable at 5.4% for both Q1 2025 and Q1 2024, indicating consistent investment performance[21] Corporate Developments - The Company executed an extensive internal business reorganization to enhance operational efficiency and statutory capital[7] - The appointment of Praveen Reddy as President and CEO of Penn-America Underwriters marks a strategic investment to develop agency capabilities[7] Assets and Cash Position - Cash and cash equivalents increased significantly to $81,146 million as of March 31, 2025, compared to $17,009 million at the end of 2024[19] - Total assets decreased to $1,713,606 million from $1,731,253 million, reflecting a decline in overall asset value[19] Company Overview - Global Indemnity Group, LLC is a publicly listed holding company for property and casualty insurance-related businesses[28] - The company does not assume any obligation to update forward-looking statements after the date they were made[30]

Financial Data and Key Metrics Changes - Net income increased to $43.2 million in 2024 from $25.4 million in 2023, with a per-share value increase from $47.53 to $49.98 [24] - Investment income rose by 13% to $62.4 million compared to the previous year [25] - The consolidated accident year combined ratio improved to 95.4% in 2024 from 97.3% in 2023 [29] Business Line Data and Key Metrics Changes - Penn America segment's gross premiums increased by 12% in 2024, driven by a 17% growth in Insurtech and 12% growth in wholesale commercial [10] - Underwriting income for Penn America rose to $22.1 million in 2024 from $18.5 million in 2023 [30] - The assumed reinsurance business grew significantly, with gross written premiums increasing to $25.4 million from $13.9 million in 2023 [40] Market Data and Key Metrics Changes - Total catastrophe losses decreased by approximately 26% from 2023, with total cat losses for 2024 at $12.7 million compared to $13.8 million in 2023 [13][31] - The expense ratio for Penn America improved to 38.1% in 2024, with a target to reduce it further to 37% or lower [16] Company Strategy and Development Direction - The company is focusing on enhancing underwriting capabilities and expanding product offerings through strategic hires and technology investments [20][88] - A multi-year technology transformation is underway, with over 75% of the transition to the cloud completed [17] - The company aims for a revenue growth of 10% from Penn America in 2025, alongside improvements in non-catastrophe accident year loss ratios [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term metrics for revenue growth and underwriting profits, despite challenges in the regulatory environment affecting rate increases [8][72] - The company is reassessing its catastrophe models due to unexpected losses from recent wildfires, indicating a need for adjustments in risk assessment [65][68] Other Important Information - Discretionary capital increased to $255 million at the end of 2024, compared to $200 million in 2023, providing more capacity for growth initiatives [42] - The average credit quality of the fixed income portfolio remains at double A, with a current book yield of 4.4% [27] Q&A Session Summary Question: Regarding the California fires, was it an underwriting issue or rate increase challenge? - Management indicated that they have been seeking rate increases but faced regulatory challenges, resulting in a sizable loss from a limited number of properties [46] Question: Can you provide more details on the reinsurance segment growth and future plans? - The reinsurance segment has grown to 16 treaties with expectations for continued growth in 2025 and 2026 [49] Question: What is the total exposure in California and is it on the direct commercial side? - The total exposure in California is about six basis points of the total market, all on the direct book [58] Question: What kind of rate increases do you expect in California following the recent wildfire? - Management expects at least a 50% increase on affected business types, but noted that achieving this in California's regulatory environment is challenging [72] Question: Is there room to reduce the expense ratio without compromising underwriting quality? - Management believes there is room to reduce the expense ratio and plans to improve it as they run off terminated business [80]

Global Indemnity Group, LLC (NYSE:GBLI) Q4 2024 Earnings Conference Call March 11, 2025 11:00 AM ET Company Participants Evan Kasowitz - SVP, Operations Jay Brown - CEO Brian Riley - CFO Conference Call Participants Tom Kerr - Zacks Small-Cap Research Ross Haberman - RLH Investments Operator Ladies and gentlemen, thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the Global Indemnity Group 2024 earnings call. All lines ...

PART I [Business](index=6&type=section&id=Item%201.%20BUSINESS) Global Indemnity operates as a specialty property and casualty insurer through core Penn-America and Non-Core segments, recently reorganized, holding an 'A' (Excellent) AM Best rating - The company operates through two segments: Penn-America (core products) and Non-Core Operations (de-emphasized or discontinued business). Penn-America's gross premiums written were **$400.0 million** in 2024[20](index=20&type=chunk) - In December 2024, the company executed a significant internal reorganization, creating Penn-America Underwriters, LLC for distribution and services, and placing its five specialty insurance companies under Belmont Holdings GX, Inc. to improve capital efficiency[16](index=16&type=chunk)[17](index=17&type=chunk) Penn-America Gross Written Premiums by Division (in thousands) | Business Division | 2024 | 2023 | 2022 | |-----------------------|--------------|--------------|---------------| | Wholesale Commercial | $248,600 | $234,941 | $219,688 | | Specialty Products | $69,612 | $72,535 | $121,838 | | InsurTech | $56,341 | $48,309 | $40,977 | | Assumed Reinsurance | $25,423 | $13,875 | $5,464 | | **Total** | **$399,976** | **$369,660** | **$387,967** | Investment Portfolio Summary (Fair Value, in thousands) | Investment Type | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | |-------------------------|----------------|----------------|----------------| | Total fixed maturities | $1,381,908 | $1,293,793 | $1,248,198 | | Equity securities | $12,284 | $16,508 | $17,520 | | Other invested assets | $29,413 | $38,236 | $38,176 | | Cash and cash equivalents| $17,009 | $38,037 | $38,846 | | **Total** | **$1,440,614** | **$1,386,574** | **$1,342,740** | - The company's insurance subsidiaries are assigned a financial strength rating of **"A" (Excellent)** by AM Best, indicating an excellent ability to meet ongoing obligations to policyholders[95](index=95&type=chunk)[96](index=96&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20RISK%20FACTORS) The company faces risks from restructuring, loss reserving uncertainty, disasters, cybersecurity, investment volatility, and concentrated ownership - The recent restructuring initiative may not produce anticipated benefits and could lead to unintended consequences, such as the loss of key personnel or harmed relationships with agents[122](index=122&type=chunk) - A significant risk is that actual claims payments may exceed established loss reserves, which are based on estimates and inherently uncertain, potentially leading to adverse effects on financial condition[125](index=125&type=chunk)[127](index=127&type=chunk) - The company is exposed to cybersecurity risks, including security breaches or cyber-attacks on its own or third-party systems, which could disrupt business, damage its reputation, and cause financial losses[140](index=140&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk) - The company's investment performance is subject to adverse capital market developments, including interest rate fluctuations, liquidity risk, and credit/default risk, which could negatively impact financial results[152](index=152&type=chunk) - Fox Paine Entities beneficially own shares representing approximately **83.8%** of the company's total voting power, giving them control over matters requiring shareholder approval, which may create conflicts of interest with other shareholders[182](index=182&type=chunk) - As a publicly traded partnership, shareholders may be subject to U.S. federal, state, and local income taxes on their share of the company's taxable income, regardless of whether they receive cash distributions[195](index=195&type=chunk) [Unresolved Staff Comments](index=50&type=section&id=Item%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reports that it has no unresolved staff comments from the SEC - None[217](index=217&type=chunk) [Cybersecurity](index=50&type=section&id=Item%201C.%20CYBERSECURITY) The company manages cybersecurity through its Enterprise Risk Management framework, led by the CISO, with no material impact to date - Cybersecurity risk management is incorporated within the company's Enterprise Risk Management framework, led by the Senior Vice President of Operations[219](index=219&type=chunk) - The Chief Information Security Officer (CISO) has primary responsibility for managing cybersecurity risks and provides quarterly reports to the Enterprise Risk Management Committee of the Board of Directors[224](index=224&type=chunk)[225](index=225&type=chunk)[228](index=228&type=chunk) - The company engages external experts, such as cybersecurity assessors and consultants, to assess and test its risk mitigation tools and security measures[220](index=220&type=chunk)[221](index=221&type=chunk) - To date, the company believes that risks from identified cybersecurity threats have not materially affected and are not reasonably likely to materially affect the company's business strategy, results of operations, or financial condition[223](index=223&type=chunk) [Properties](index=52&type=section&id=Item%202.%20PROPERTIES) The company's principal offices are in Bala Cynwyd, Pennsylvania, with other leases terminated as employees transition to remote work - The company's principal executive offices are in leased space in Bala Cynwyd, Pennsylvania[230](index=230&type=chunk) - The company is terminating leases in Omaha, Nebraska; Cavan, Ireland; and Scottsdale, Arizona, as employees at these locations have transitioned to remote work[230](index=230&type=chunk) [Legal Proceedings](index=52&type=section&id=Item%203.%20LEGAL%20PROCEEDINGS) The company is involved in ordinary course legal proceedings, not expecting material adverse effects, but anticipates disputes with runoff reinsurers - 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[231](index=231&type=chunk) - The company anticipates continued litigation and arbitration proceedings and notes a higher potential for disputes with reinsurers in runoff[232](index=232&type=chunk) [Mine Safety Disclosures](index=52&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - None[233](index=233&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=53&type=section&id=Item%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) Global Indemnity's Class A shares trade on NYSE, with an active share repurchase program and future dividends subject to Board discretion and regulatory restrictions - The Board of Directors authorized a share repurchase program of up to **$135 million**, which expires on December 31, 2027. As of March 11, 2025, **$101.0 million** remained available for repurchases[191](index=191&type=chunk)[244](index=244&type=chunk) - During the year ended December 31, 2023, the company repurchased **1,357,082 shares** for an aggregate amount of **$34.0 million**, at an average price of **$25.05 per share**[246](index=246&type=chunk) - Future dividends are subject to the discretion of the Board of Directors and are dependent on the ability of its insurance subsidiaries to pay dividends, which is subject to significant regulatory restrictions[248](index=248&type=chunk)[249](index=249&type=chunk) Five-Year Cumulative Total Return Comparison | Index | 12/31/19 | 12/31/20 | 12/31/21 | 12/31/22 | 12/31/23 | 12/31/24 | |------------------------|----------|----------|----------|----------|----------|----------| | Global Indemnity | $100.0 | $96.5 | $84.8 | $78.7 | $108.8 | $121.5 | | NASDAQ Insurance Index | $100.0 | $100.9 | $114.3 | $116.5 | $126.1 | $156.5 | | NASDAQ Composite Index | $100.0 | $143.6 | $174.4 | $116.6 | $167.3 | $215.2 | [[Reserved]](index=54&type=section&id=Item%206.%20%5BRESERVED%5D) This item is not applicable - Not applicable[250](index=250&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) In 2024, Global Indemnity's net income rose to $43.2 million, driven by strong underwriting and investment income, reflecting core business focus 2024 Financial Highlights | Metric | 2024 | 2023 | |-----------------------------|-----------------------|-----------------------| | Net Income | $43.2 million | $25.4 million | | Diluted EPS | $3.12 | $1.83 | | Underwriting Income | $17.8 million | $3.0 million | | Penn-America GWP | $400.0 million (+8.2%)| $369.7 million | | Net Investment Income | $62.4 million (+12.5%)| $55.4 million | | Shareholders' Equity | $689.1 million (+6.2%)| $648.8 million | | Book Value per Common Share | $49.98 (+5.2%) | $47.51 | - The liability for unpaid losses and loss adjustment expenses is a critical accounting estimate, requiring significant judgment. As of December 31, 2024, gross reserves were **$800.4 million** and net reserves were **$739.6 million**[264](index=264&type=chunk)[279](index=279&type=chunk) Consolidated Underwriting Ratios | Ratio | 2024 | 2023 | 2022 | |-----------------|---------|---------|---------| | Loss Ratio | 56.6% | 61.1% | 59.6% | | Expense Ratio | 39.0% | 38.6% | 39.2% | | Combined Ratio | 95.6% | 99.7% | 98.8% | - The Penn-America segment's accident year combined ratio improved to **94.4%** in 2024 from **95.2%** in 2023, driven by better property results. The segment's accident year underwriting income increased **19.3%** to **$22.1 million**[316](index=316&type=chunk)[327](index=327&type=chunk)[328](index=328&type=chunk) - The company's liquidity is strong, with sources of funds including premiums, investment income, and dividends from insurance subsidiaries. The holding company has no direct operations and relies on these subsidiary cash flows to meet its obligations, including shareholder distributions and share repurchases[362](index=362&type=chunk)[364](index=364&type=chunk)[368](index=368&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=86&type=section&id=Item%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risks are interest rate and credit risk, managed through high-quality, short-duration fixed-income investments and strong counterparty selection - The company's primary market risk exposures are interest rate risk and credit risk associated with its investment portfolio[418](index=418&type=chunk) Interest Rate Sensitivity Analysis (as of Dec 31, 2024) | Basis Point Change | Change in Market Value (in thousands) | % Change | |--------------------|---------------------------------------|----------| | (200) | $19,736 | 1.4% | | (100) | $9,885 | 0.7% | | 100 | ($9,913) | (0.7%) | | 200 | ($19,822) | (1.4%) | - Credit risk is managed by investing in high-quality debt instruments and limiting exposure to any single issuer. The company also mitigates credit risk from its general agencies and reinsurers through contractual terms and by dealing with financially strong counterparties[423](index=423&type=chunk)[425](index=425&type=chunk)[426](index=426&type=chunk) [Financial Statements and Supplementary Data](index=88&type=section&id=Item%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents the company's audited consolidated financial statements, with an unqualified auditor's opinion, highlighting unpaid losses and loss adjustment expenses as a critical audit matter - The independent auditor, Ernst & Young LLP, issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting[436](index=436&type=chunk)[437](index=437&type=chunk) - The auditor identified the Valuation of Unpaid Losses and Loss Adjustment Expenses as a Critical Audit Matter due to the significant estimation uncertainty and complex judgments involved[440](index=440&type=chunk)[441](index=441&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | |-------------------------|--------------|--------------| | Total Investments | $1,423,605 | $1,348,537 | | Total Assets | $1,731,253 | $1,729,576 | | Unpaid Losses & LAE | $800,391 | $850,599 | | Total Liabilities | $1,042,104 | $1,080,823 | | Total Shareholders' Equity | $689,149 | $648,753 | Consolidated Statement of Operations Highlights (in thousands) | Account | 2024 | 2023 | 2022 | |-------------------------|--------------|--------------|--------------| | Net Earned Premiums | $376,992 | $473,357 | $602,471 | | Total Revenues | $441,187 | $528,129 | $628,534 | | Net Losses & LAE | $213,190 | $289,153 | $359,228 | | Net Income (Loss) | $43,241 | $25,429 | ($850) | - Subsequent to year-end, on March 6, 2025, the company issued **550,000 class A-2 common shares** to Fox Paine & Company, LLC as an advisory fee for services related to the internal corporate reorganization[710](index=710&type=chunk)[711](index=711&type=chunk)[712](index=712&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=163&type=section&id=Item%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[717](index=717&type=chunk) [Controls and Procedures](index=163&type=section&id=Item%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with no material weaknesses or changes - Management, including the Principal Executive Officer and Chief Financial Officer, concluded that the company's disclosure controls and procedures were effective as of December 31, 2024[717](index=717&type=chunk) - Management's assessment concluded that the company's internal control over financial reporting was effective as of December 31, 2024, with no material weaknesses identified[721](index=721&type=chunk) - There were no changes in internal control over financial reporting during the fourth quarter of 2024 that materially affected, or are reasonably likely to materially affect, these controls[723](index=723&type=chunk) [Other Information](index=166&type=section&id=Item%209B.%20OTHER%20INFORMATION) This section details the March 6, 2025 issuance of 550,000 Class A-2 common shares to Fox Paine & Company, LLC as an advisory fee for reorganization services - On March 6, 2025, the company issued **550,000 class A common shares** designated as class A-2 common shares to Fox Paine & Company, LLC as payment for services related to the company's internal reorganization[733](index=733&type=chunk) - The class A-2 shares represent an interest in the company's profits above a threshold amount of **$475.3 million** and have specific distribution rights in the event of a Change of Control Transaction[733](index=733&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=166&type=section&id=Item%209C.%20DISCLOSURE%20REGARDING%20FOREIGN%20JURISDICTIONS%20THAT%20PREVENT%20INSPECTIONS) This item is not applicable to the company - Not applicable[735](index=735&type=chunk) PART III [Directors, Executive Officers, and Corporate Governance](index=167&type=section&id=Item%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%2C%20AND%20CORPORATE%20GOVERNANCE) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2025 Proxy Statement - The information required for this item is incorporated by reference from the Registrant's Proxy Statement for the 2025 Annual Meeting of Shareholders[737](index=737&type=chunk) [Executive Compensation](index=167&type=section&id=Item%2011.%20EXECUTIVE%20COMPENSATION) Information regarding executive compensation is incorporated by reference from the 2025 Proxy Statement - The information required for this item is incorporated by reference from the Registrant's Proxy Statement for the 2025 Annual Meeting of Shareholders[740](index=740&type=chunk) [Security Ownership of Certain Beneficial Owners and Management, and Related Stockholder Matters](index=167&type=section&id=Item%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%2C%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Information regarding security ownership is incorporated by reference from the 2025 Proxy Statement - The information required for this item is incorporated by reference from the Registrant's Proxy Statement for the 2025 Annual Meeting of Shareholders[741](index=741&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=167&type=section&id=Item%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Information regarding related party transactions and director independence is incorporated by reference from the 2025 Proxy Statement - The information required for this item is incorporated by reference from the Registrant's Proxy Statement for the 2025 Annual Meeting of Shareholders[742](index=742&type=chunk) [Principal Accountant Fees and Services](index=167&type=section&id=Item%2014.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Information regarding principal accountant fees and services is incorporated by reference from the 2025 Proxy Statement - The information required for this item is incorporated by reference from the Registrant's Proxy Statement for the 2025 Annual Meeting of Shareholders[743](index=743&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=168&type=section&id=Item%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists all financial statements, schedules, and exhibits filed with the report, including governance documents and certifications - This section lists all financial statements, schedules, and exhibits filed with the report, including governance documents like the LLC Agreement, material contracts, and required certifications[746](index=746&type=chunk)[747](index=747&type=chunk) [Form 10-K Summary](index=172&type=section&id=Item%2016.%20FORM%2010-K%20SUMMARY) The company indicates that there is no Form 10-K summary - None[750](index=750&type=chunk)