Financial Performance - Gross written premiums for Q2 2024 were $100,706,000, a decrease of 8.3% from $110,100,000 in Q2 2023[5] - Net earned premiums for the first half of 2024 were $189,393,000, down 29.6% from $269,228,000 in the same period of 2023[5] - Net income for Q2 2024 was $10,093,000, an increase of 8.1% compared to $9,337,000 in Q2 2023[5] - Total revenues for Q2 2024 were $108,687,000, a decrease of 23.4% from $141,893,000 in Q2 2023[5] - Comprehensive income for Q2 2024 was $12,037,000, significantly higher than $6,781,000 in Q2 2023[6] - Net income for the six months ended June 30, 2024, was $21,459,000, compared to $11,831,000 for the same period in 2023, representing an increase of 81.5%[11] - Net income for the quarter ended June 30, 2024, was $10,093,000, an increase of 8.2% from $9,337,000 in the same quarter of 2023[96] - Total revenues for the quarter ended June 30, 2024, were $93,171,000, up from $129,438,000 in the same quarter of 2023, indicating a decrease of 28%[100][101] Investment Income - Net investment income increased to $15,311,000 in Q2 2024 from $13,216,000 in Q2 2023, reflecting a growth of 15.9%[5] - The net investment income for the six months ended June 30, 2024, was $29,831,000, an increase from $25,224,000 in the same period of 2023[41] - The total investment income for the quarter ended June 30, 2024, was $15,823,000, an increase from $13,567,000 in the same quarter of 2023[40] - The total investment return for the quarter ended June 30, 2024, was $17,903,000, representing a return of 1.3%, compared to 0.7% in the same quarter of 2023[41] Shareholder Equity and Distributions - Total shareholders' equity increased to $667,490,000 as of June 30, 2024, up from $626,408,000 at the end of June 2023, reflecting a growth of 6.6%[8] - Cash distributions declared per common share increased to $0.35 in Q2 2024 from $0.25 in Q2 2023, representing a 40% increase[5] - Total distributions declared during the six months ended June 30, 2024 amounted to $9.544 million, with $4.752 million declared on March 6, 2024[80] - The company declared distributions of $0.25 per common share during the six months ended June 30, 2023, totaling $6.764 million[81] Loss Management - The company experienced a net loss and loss adjustment expense of $53,662,000 in Q2 2024, down from $78,082,000 in Q2 2023, indicating improved loss management[5] - The company reported incurred losses and loss adjustment expenses of $53.662 million for the quarter ended June 30, 2024, compared to $78.082 million for the same quarter in 2023, indicating a decrease of 31.2%[70] - The net balance for unpaid losses and loss adjustment expenses decreased to $773.814 million as of June 30, 2024, from $793.018 million in the previous year[70] Restructuring and Operational Changes - The company incurred total restructuring costs of $5.4 million from exiting four brokerage divisions, with no additional costs incurred during the first half of 2024[15] - The restructuring plan was completed in the first quarter of 2023, with the liability related to the plan being less than $0.1 million as of December 31, 2023[15] - The company restructured its insurance operations into two segments: Penn-America and Non-Core Operations, to enhance focus on core products[98] - The restructuring is expected to improve the company's overall financial performance and market positioning[98] Investment Portfolio and Valuation - As of June 30, 2024, the total amortized cost of fixed maturities was $1,362,384 thousand, with an estimated fair value of $1,340,046 thousand, reflecting a gross unrealized loss of $23,744 thousand[17] - The company reported a net realized investment loss of $1,052,000 for the six months ended June 30, 2024, compared to a gain of $2,281,000 for the same period in 2023[11] - The fair value of U.S. treasuries was reported at $699,464 thousand with gross unrealized losses of $2,585 thousand as of June 30, 2024[20] - The total fixed maturities as of December 31, 2023, had an amortized cost of $1,322,092 thousand and an estimated fair value of $1,293,793 thousand, resulting in gross unrealized losses of $29,879 thousand[22] Taxation - The total income tax expense for the quarter ended June 30, 2024, was $2.581 million, compared to $2.371 million for the same quarter in 2023, representing an increase of 8.8%[67] - The effective income tax expense for the six months ended June 30, 2024, was $5.480 million, which is 20.3% of pre-tax income, compared to $2.944 million or 19.9% for the same period in 2023[69] Share Repurchase and Stock Options - Global Indemnity Group, LLC has authorized share repurchases of up to $135 million, with $101 million remaining as of June 30, 2024[75] - During the six months ended June 30, 2024, the company repurchased 16,527 shares at an average price of $32.00 per share[76] - The company granted 550,000 Time-Based Stock Options during the six months ended June 30, 2024, with an average strike price of $30.73[91]

Financial Data and Key Metrics Changes - Net income for the first half of 2024 was $21.5 million, up from $11.8 million in 2023, reflecting improved underwriting and investment performance [11] - Book value per share increased from $47.53 at year-end to $48.56 at June 30, 2024, including dividends paid of $0.70 per share [11] - Return to shareholders was 3.6% for the first half of 2024 [11] Business Line Data and Key Metrics Changes - Penn-America segment recorded a 6-month combined ratio of 94.8%, driven by solid casualty and property loss ratios [6] - Consolidated accident year underwriting income improved to $8.7 million in 2024 from $3.2 million in 2023, with a combined ratio of 95.8% compared to 99.1% in 2023 [14] - Gross written premiums for Penn-America increased from $190.4 million in 2023 to $194.6 million in 2024, a 7% increase when excluding terminated programs [18] Market Data and Key Metrics Changes - The wholesale commercial segment grew 3% to $124.9 million, with underlying policy year trends indicating a growth rate of 12% [19] - InsurTech segment grew 18% to $26.3 million, driven by organic growth and new agency appointments [19] - Assumed reinsurance gross written premiums grew from $4.3 million in 2023 to $9.4 million in 2024 [20] Company Strategy and Development Direction - The company aims for annual business growth of around 10%, a combined ratio in the low 90s, and insurance expenses managed at 36% to 37% [4] - A digital transformation of the technology infrastructure is underway to enhance competitiveness [7] - The company is focusing on expanding its reinsurance operations, expecting growth of 30% to 40% per year over the next few years [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth targets despite challenges in certain business segments [4] - The company anticipates continued favorable investment returns due to repositioning its investment portfolio [9] - Management noted that the current market conditions allow for modest rate increases, supporting long-term loss ratio results [8] Other Important Information - The company has maintained a strong balance sheet, with an A rating from AM Best [10] - Discretionary capital is estimated at around $125 million, with expectations for year-over-year growth of about $30 million [38] Q&A Session Summary Question: Can you describe the reinsurance efforts and how you are executing them? - Management indicated a shift towards reinsuring insurance carriers directly, expanding the number of treaties and expecting significant growth in this area [23] Question: What is the nature of the reinsurance products being offered? - The focus is primarily on ENSE products, avoiding large weather-related exposures [25] Question: Can you comment on the James River Ventures? - Management refrained from commenting on specific agreements but noted a desire to deploy excess capital through potential M&A activities [27] Question: Why are expenses expected to take a year or two to align with targets? - Management explained that maintaining staffing levels is crucial for customer service, and a combination of premium growth and inflation will influence expense ratios [36] Question: What is the current position regarding discretionary capital? - Management confirmed that discretionary capital is around $125 million, with a focus on maintaining strong capital adequacy [38] Question: What are the thoughts on stock buybacks? - Management is considering options for returning capital to shareholders, including potential tender offers or special dividends if capital cannot be effectively deployed [41]

Financial Data and Key Metrics Changes - Net income increased to $11.4 million compared to $2.5 million in 2023, driven by improved underwriting and investment performance [36] - Book value per share rose from $47.53 at year-end to $48.18 at March 31, 2024, reflecting positive returns to shareholders [36] - The combined ratio for the Penn-America segment improved to 94.0%, a 7.2-point improvement from 101.2% in 2023 [4][14] Business Line Data and Key Metrics Changes - Penn-America's accident underwriting income was $5.7 million, compared to a loss of $800,000 in 2023 [14] - Consolidated gross written premiums decreased to $93.5 million in 2024 from $123 million in 2023, primarily due to runoff business in the noncore segment [41] - InsurTech revenues grew 17% to $12.5 million, with Bacon Express contributing a 22% increase to $8.9 million [42] Market Data and Key Metrics Changes - The accident year combined ratio for the current year was 94.9%, compared to 100.6% in 2023, indicating improved market performance [38] - The non-catastrophe loss ratio improved to 41.9% from 59.9% in 2023, reflecting better risk management [15] Company Strategy and Development Direction - The company is focused on a digital transformation of its technology infrastructure to remain competitive [34] - There is an ongoing evaluation of the best use of approximately $200 million in excess capital, including potential acquisitions and share buybacks [22][52] - The company aims to achieve a long-term average premium written growth of over 10% [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the full year, citing strong current accident performance and adequate premium pricing to meet loss inflation [43] - The company anticipates continued improvement in expense ratios over the next couple of years, aiming for a target of 36% to 37% [33][59] Other Important Information - Investment income increased by 21% to $14.5 million, with a current book yield on the fixed income portfolio at 4.3% [12][10] - The company has maintained a conservative approach to equity securities, currently holding $17 million in a $1.3 billion portfolio [58] Q&A Session Summary Question: What can be done to improve ROE going forward? - Management noted that the low ROE is due to being overcapitalized, with approximately $200 million in excess capital available for other purposes [22] Question: Discuss interest in pursuing a transaction with James River Insurance? - Management confirmed conversations with James River are currently on pause but may be re-examined later [24] Question: Plans for the $200 million excess capital and share buyback activity? - Management is actively considering acquisitions and has not engaged in share buybacks recently due to a narrow window for repurchase activity [52] Question: Any problematic books or programs still affecting performance? - Management indicated that the lingering effects of exiting certain businesses have impacted growth opportunities, but no serious problematic programs are currently noted [61] Question: Consideration of a special dividend? - Management explained that special dividends may not be tax-efficient due to the structure of the company as a publicly traded limited partnership [67]

Financial Performance - Net income for Q1 2024 was $11.4 million, an increase of $8.9 million compared to Q1 2023[118]. - Net investment income increased by 21% to $14.5 million in Q1 2024 compared to $12.0 million in Q1 2023[118]. - Net income for the quarter ended March 31, 2024, was $11.4 million, up from $2.5 million in the same period of 2023[161]. - Income tax expense increased to $2.9 million for the quarter ended March 31, 2024, from $0.6 million in the same period of 2023, primarily due to higher taxable income[159]. Premiums and Underwriting - Net earned premiums decreased by 31.1% to $96.6 million in Q1 2024 from $140.1 million in Q1 2023, primarily due to the run-off of Non-Core business[118]. - Gross written premiums decreased by 24.0% to $93.5 million in Q1 2024 from $123.0 million in Q1 2023[126]. - The net premium retention ratio improved by 4.3 points to 98.5% in Q1 2024 compared to 94.2% in Q1 2023[127]. - The underwriting income for the Penn-America segment improved significantly to $5.635 million, a 281.3% increase from a loss of $3.108 million in the same quarter of 2023[135]. - The combined ratio for Q1 2024 was 94.9%, a significant improvement from 101.0% in Q1 2023[122]. Loss Ratios and Expenses - The current accident year loss ratio improved by 8.2 percentage points from 63.0% in Q1 2023 to 54.8% in Q1 2024[139]. - The total net losses and loss adjustment expenses for the Penn-America segment were $48.909 million, down 17.5% from $59.278 million in the previous year[135]. - The expense ratio for the Penn-America segment increased to 39.2% in Q1 2024 from 38.3% in Q1 2023, primarily due to a reduction in earned premiums[140]. - The property loss ratio decreased by 33.1 points to 33.6% for the quarter ended March 31, 2024, compared to 66.7% in the same period of 2023[150]. - The total net losses and loss adjustment expense ratio was 60.1% for the quarter ended March 31, 2024, compared to 58.1% in the same period of 2023[152]. Non-Core Operations - The Non-Core Operations segment reported a significant decline in gross written premiums, dropping to $(560,000) from $27.573 million, a decrease of 102.0%[143]. - Total revenues for the Non-Core Operations segment fell by 85.0% to $7.453 million in Q1 2024, down from $49.547 million in Q1 2023[143]. - The current accident year loss ratio for the Non-Core Operations segment improved by 1.9 percentage points from 62.5% in Q1 2023 to 60.6% in Q1 2024[147]. - The expense ratio for the Non-Core Operations segment increased by 7.0 percentage points to 44.9% in Q1 2024, attributed to lower earned premiums from exiting various lines of business[148]. Investments - Total investments reached $1.4 billion as of March 31, 2024, a 2% increase from December 31, 2023[118]. - The company held asset-backed and mortgage-backed securities with a market value of $335.0 million as of March 31, 2024[156]. - The gross investment income rose by 21.3% to $15.0 million for the quarter ended March 31, 2024, compared to $12.4 million in the same period of 2023[154]. - The Company’s investment grade fixed income portfolio maintains a high quality with an AA- average rating and a duration of 1.1 years[184]. Cash Flow and Shareholder Returns - Net cash provided by operating activities was $22.7 million for the quarter ended March 31, 2024, an increase of approximately $17.4 million from $5.3 million in the same period of 2023[173]. - Dividends paid per share increased by 40% to $0.35 in Q1 2024 compared to Q1 2023[118]. - Shareholders' equity rose by 1.7% to $659.5 million at March 31, 2024[118]. Market Risks - The Company’s primary market risks include interest rate risk, credit risks associated with investments in fixed maturities, equity price risk associated with investments in equity securities, and foreign exchange risk[183]. - There have been no material changes to the Company's market risk since December 31, 2023[184].

Financial Performance - Net income available to shareholders increased to $11.3 million for Q1 2024, up from $2.4 million in Q1 2023, representing a significant growth [1] - Adjusted operating income rose to $10.7 million in Q1 2024, compared to $3.7 million in the same period last year [4] - The company reported a total revenue of $112.3 million in Q1 2024, down from $150.9 million in Q1 2023, reflecting the decline in gross written premiums [12] - Net income for Q1 2024 reached $11,366 thousand, compared to $2,494 thousand in Q1 2023, marking a 356% increase [18] Underwriting and Claims Management - The combined ratio improved to 94.9% in Q1 2024 from 101.0% in Q1 2023, indicating enhanced underwriting profitability [4] - The loss ratio decreased to 55.3% in Q1 2024, down from 62.8% in Q1 2023, showcasing improved claims management [4] - Current accident year underwriting income improved to $5.7 million in Q1 2024, compared to a loss of $0.8 million in Q1 2023 [10] Investment Performance - Investment income increased by 21% to $14.5 million in Q1 2024, attributed to the company's strategic positioning to benefit from rising interest rates [5] - Total investment return for Q1 2024 was $18.9 million, down from $21.0 million in Q1 2023, reflecting a decrease of 10.5% [16] - Net investment income for Q1 2024 was $14.5 million, an increase from $12.0 million in Q1 2023, representing a growth of 20.8% [16] Shareholder Returns - Dividend per share increased by 40% to $0.35 in Q1 2024, up from $0.25 in the same period last year [5] - The company returned $614 million to shareholders since its IPO in 2003, including $522 million in share repurchases and $92 million in dividends/distributions [14] Balance Sheet and Assets - Total assets as of March 31, 2024, were $1,728,242 million, a slight decrease from $1,729,576 million as of December 31, 2023 [14] - Total liabilities decreased to $1,068,747 million as of March 31, 2024, from $1,080,823 million as of December 31, 2023 [14] - Cash and cash equivalents increased to $38,857 million as of March 31, 2024, compared to $38,037 million as of December 31, 2023 [14] - Total cash and invested assets, net, increased to $1,417.3 million as of March 31, 2024, from $1,390.4 million as of December 31, 2023 [16] - The average total cash and invested assets for Q1 2024 was $1,403.9 million, compared to $1,344.9 million in Q1 2023, indicating a growth of 4.4% [16] Book Value - Book value per share rose to $48.18 as of March 31, 2024, reflecting a 2.1% increase from $47.53 at the end of 2023 [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2023 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 Delaware 85-2619578 of incorporation or organization) (I.R.S. Employer Identification ...

Exhibit 99.1 PRESS RELEASE For release: March 13, 2024 Contact: Stephen W. Ries Head of Investor Relations (610) 668-3270 sries@gbli.com Global Indemnity Group, LLC Reports Year Ended 2023 Results Wilmington, Del., (March 13, 2024) – Global Indemnity Group, LLC (NYSE:GBLI) (the "Company") today reported net income available to shareholders for the twelve months ended December 31, 2023, of $25.0 million compared to net loss available to shareholders of $1.3 million for the corresponding period in 2022. Adjus ...

WILMINGTON, Del.--(BUSINESS WIRE)--Global Indemnity Group, LLC (NYSE:GBLI) (“GBLI”) announced today that its Board of Directors approved a dividend rate of $0.35 per common share payable on March 28, 2024 to all shareholders of record as of the close of business on March 21, 2024, a 40% increase over the prior quarterly dividend rate of $0.25 per common share. “The increase in GBLI’s dividend reflects the company’s ongoing strong financial performance, capital and reserve positions, liquidity, and balanc ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section presents the company's unaudited consolidated financial statements, management's analysis of financial condition, market risk disclosures, and internal controls [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Global Indemnity Group's unaudited consolidated financial statements for Q3 and nine months ended September 30, 2023 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section details the company's financial position, presenting assets, liabilities, and shareholders' equity for September 30, 2023, and December 31, 2022 Consolidated Balance Sheet Highlights (Unaudited) | Metric | September 30, 2023 (in millions) | December 31, 2022 (in millions) | | :--- | :--- | :--- | | **Total Investments** | $1,340.9 | $1,303.9 | | **Total Assets** | $1,767.8 | $1,800.8 | | **Total Liabilities** | $1,137.2 | $1,174.5 | | **Total Shareholders' Equity** | $630.7 | $626.2 | - Total assets decreased slightly to **$1.77 billion** from **$1.80 billion** at year-end 2022, while total shareholders' equity increased to **$630.7 million** from **$626.2 million** over the same period[8](index=8&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) This section details the company's financial performance over specific periods, presenting revenues, expenses, and net income or loss Key Operating Results (Unaudited) | Metric | Q3 2023 (in millions) | Q3 2022 (in millions) | Nine Months 2023 (in millions) | Nine Months 2022 (in millions) | | :--- | :--- | :--- | :--- | :--- | | Gross Written Premiums | $98.9 | $175.8 | $332.0 | $563.6 | | Net Earned Premiums | $111.7 | $153.6 | $380.9 | $458.2 | | Total Revenues | $126.1 | $194.6 | $418.9 | $472.9 | | Net Income (Loss) | $7.7 | $23.7 | $19.5 | $(3.2) | | Diluted EPS | $0.55 | $1.60 | $1.39 | $(0.24) | - Net income for the nine months ended September 30, 2023, was **$19.5 million**, a significant turnaround from a net loss of **$3.2 million** in the same period of 2022; however, Q3 2023 net income of **$7.7 million** was lower than Q3 2022's **$23.7 million**, which was boosted by other income[10](index=10&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the cash inflows and outflows from operating, investing, and financing activities for the specified periods Cash Flow Summary (Unaudited) | Cash Flow Activity | Nine Months Ended Sep 30, 2023 (in millions) | Nine Months Ended Sep 30, 2022 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $36.8 | $41.7 | | Net cash provided by (used for) investing activities | $(8.6) | $37.0 | | Net cash used for financing activities | $(20.5) | $(138.1) | | **Net change in cash and cash equivalents** | **$7.6** | **$(59.4)** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements, including accounting policies and significant transactions - The Company completed a restructuring of its insurance operations in Q1 2023, exiting four brokerage divisions to focus on core Package Specialty and Targeted Specialty products; total restructuring costs were **$5.5 million**, with **$2.1 million** incurred in the first nine months of 2023[23](index=23&type=chunk)[24](index=24&type=chunk) - On August 8, 2022, the Company sold the renewal rights for its Farm, Ranch & Stable business for **$30.0 million**, recognized as other income; related impairments and expenses totaled **$9.2 million**[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) - The Company's investment portfolio, primarily fixed maturities, was valued at **$1.29 billion** at fair value as of September 30, 2023; the portfolio's book yield increased from approximately **2.2%** at December 31, 2021, to **4.0%** at September 30, 2023[29](index=29&type=chunk)[45](index=45&type=chunk) - For the nine months ended September 30, 2023, prior accident year loss reserve adjustments netted to zero, comprising a **$21.0 million** increase for Commercial Specialty, offset by decreases of **$1.7 million** for Reinsurance Operations and **$19.3 million** for Exited Lines[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) - The Company's share repurchase authorization was increased to **$135 million**, expiring on December 31, 2027; during the nine months ended September 30, 2023, the company purchased **468,860 Class A common shares**[99](index=99&type=chunk)[101](index=101&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q3 and nine-month 2023 financial results, detailing strategic restructuring impacts, investment income, segment performance, liquidity, and capital [Financial Highlights](index=35&type=section&id=Financial%20Highlights) This section summarizes key financial metrics and performance indicators for the third quarter of 2023 Q3 2023 Financial Highlights | Metric | Value | | :--- | :--- | | Net Income | $7.7 million | | Diluted EPS | $0.55 | | Net Earned Premium | $111.7 million | | Continuing Lines Accident Year Combined Ratio | 97.8% | | Net Investment Income | $14.2 million | | Book Value Per Common Share | $46.27 | [Results of Operations](index=35&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's revenues, expenses, and profitability across its business segments - Gross written premiums decreased by **43.7%** in Q3 2023 and **41.1%** in the first nine months of 2023, driven by restructuring, business exits, and non-renewal of treaties[149](index=149&type=chunk)[151](index=151&type=chunk) - Net investment income increased significantly by **69.3%** in Q3 2023 and **133.1%** in the first nine months of 2023, due to investment portfolio repositioning and a higher book yield of **4.0%**[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) - The Commercial Specialty segment incurred an underwriting loss of **$12.3 million** in Q3 2023, primarily due to a **$14.5 million** strengthening of prior accident year reserves and **$2.5 million** in Maui fire losses[160](index=160&type=chunk)[161](index=161&type=chunk) - Corporate and other operating expenses decreased to **$5.3 million** in Q3 2023 from **$14.1 million** in Q3 2022, mainly due to prior-year impairments and expenses from the Farm, Ranch & Stable renewal rights sale[198](index=198&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its financial obligations and fund operations, including cash flow, share repurchases, and restructuring impacts - Net cash provided by operating activities was **$36.8 million** for the first nine months of 2023, a decrease from **$41.7 million** in the same period of 2022, primarily due to lower net premiums collected[215](index=215&type=chunk) - The company's share buyback authorization increased to **$135 million**; **450,000 shares** were repurchased for approximately **$12.1 million** in the first nine months of 2023, increasing book value per share by **$0.60**[216](index=216&type=chunk)[217](index=217&type=chunk) - The Q1 2023 restructuring incurred total costs of **$5.5 million** and is expected to generate recurring annual expense savings of **$16.0 million**[219](index=219&type=chunk)[220](index=220&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's investment grade fixed income portfolio maintains an **A+ average rating** and **1.2-year duration**, increasing U.S. Treasury allocation amid Q3 market volatility - The company's investment grade fixed income portfolio maintains a high quality with an **A+ average rating** and a short duration of **1.2 years** as of September 30, 2023[231](index=231&type=chunk) - During Q3 2023, the portfolio's allocation to U.S. Treasury securities increased, while exposure to investment grade credit decreased, funded by cash inflows, maturities, and paydowns[231](index=231&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of September 30, 2023, with no material internal control changes during the quarter - The CEO and CFO concluded that as of September 30, 2023, the company's disclosure controls and procedures were effective[233](index=233&type=chunk) - There were no material changes in the company's internal controls over financial reporting during the third quarter of 2023[234](index=234&type=chunk) [PART II – OTHER INFORMATION](index=53&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section provides disclosures on legal proceedings, risk factors, equity security sales, and a list of filed exhibits [Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management does not anticipate any material adverse effect on its business or financial condition - The company does not expect any currently pending legal proceedings to have a material adverse effect on its business or financial condition[236](index=236&type=chunk) [Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2022 Annual Report on Form 10-K - The risk factors identified in the company's 2022 Annual Report on Form 10-K have not materially changed[238](index=238&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the nine months ended September 30, 2023, **18,860 Class A common shares** were surrendered for tax liabilities, and **450,000 shares** were repurchased, with no Q3 repurchases - No shares were repurchased by the company during the quarter ended September 30, 2023[240](index=240&type=chunk) - For the nine months ended September 30, 2023, the company repurchased **450,000 shares** under its repurchase program[240](index=240&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - Exhibits filed include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as XBRL data files[244](index=244&type=chunk)

Financial Data and Key Metrics Changes - Net income for Q2 2023 was $9.3 million, with adjusted operating income of $6.9 million, reflecting a positive direction in results [46] - Investment income was $13.2 million for Q2 2023, nearly double compared to $8.5 million in 2022 [19][46] - Book value per share increased from $45.68 at March 31, 2023, to $46.03 at June 30, 2023, due to strong underwriting results and share repurchases [46] Business Line Data and Key Metrics Changes - The core business experienced a disappointing growth of -6% in Q2 2023, primarily driven by one division that lost $15 million in premium compared to the same period in 2022 [4] - Packaged specialty grew approximately 8%, with a 13% growth excluding underperforming business that was terminated [6] - Gross written premium in continuing lines was $110.2 million in Q2 2023, down from $151.5 million in 2022, with reinsurance operations declining from $46.5 million to $14.8 million [20] Market Data and Key Metrics Changes - The company expects to generate approximately $900 million of cash flow from its investment portfolio between June 30, 2023, and December 31, 2024, with $800 million from maturities [62] - The fixed-income portfolio has a book yield of 3.8% and an average duration of 1.4 years, with 96% invested in fixed maturity investments [63] Company Strategy and Development Direction - The company is focusing on core business lines, reducing expenses, and managing catastrophe exposure to improve profitability [46] - The long-term operating metrics targeted include a loss and loss expense ratio in the mid-50s, an expense ratio below 38%, and growth averaging 10% [44] - The company is engaged in conversations that could lead to a transaction to sell a portion of its insurance operations [59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in shifting from shrinking to growing, with expectations of achieving growth targets of 10% or more in 2024 [15] - The company is pleased with the current quarter's results but acknowledges the need for consistent profitability and higher growth to deliver acceptable returns for shareholders [18] Other Important Information - The company increased its share repurchase authorization from $60 million to $135 million, repurchasing 200,000 shares at an average price of $28 [18] - Unrealized losses increased by $3.2 million in Q2 2023 due to rising rates, but the short duration fixed-income portfolio helped minimize these losses [62] Q&A Session Summary Question: Status of potential transaction regarding insurance operations - Management confirmed ongoing conversations but did not provide further details until completion or suspension of discussions [59] Question: Impact of reduced reinsurance costs - Reinsurance costs dropped from approximately $10 million to $5 million due to actions taken to reduce catastrophe-exposed business [66] Question: Growth prospects in targeted specialty segments - Management indicated that they are optimistic about regaining growth in targeted specialty segments after cleaning up the book [30] Question: Excess capital and potential M&A opportunities - The company has excess capital estimated between $100 million and $200 million, with a focus on share buybacks for now [71]