UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Exact name of registrant as specified in its charter) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2022 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 Washington, D.C. 20549 FORM 10-Q (State or other jurisdiction of incorporation or or ...

Global Indemnity Group, LLC (NYSE:GBLI) Q1 2022 Earnings Conference Call May 9, 2022 11:00 AM ET Corporate Participants Stephen Ries - Head-Investor Relations David Charlton - Chief Executive Officer Tom McGeehan - Chief Financial Officer Conference Call Participants Julia Ferguson – Dowling & Partners Operator Good day, and welcome to Global Indemnity Group LLC's First Quarter 2022 Earnings Conference Call. I would now like to introduce Stephen W. Ries, Head of Investor Relations. Stephen Ries Thank you, o ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2022 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q 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 organization) Delaware 85-2619578 (I.R.S. Employer Identification No.) OR ☐ TRANSITION REPORT P ...

f 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, 2021 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) Delaware 85-2619578 (State or ...

Global Indemnity Group, LLC (NYSE:GBLI) Q4 2021 Earnings Conference Call March 10, 2022 11:00 AM ET Company Participants Stephen W. Ries – Head-Investor Relations David Charlton – Chief Executive Officer Tom McGeehan – Chief Financial Officer Conference Call Participants Julia Ferguson – Dowling & Partners Operator Good day, and welcome to Global Indemnity Group LLC's 2021 Earnings Conference Call. I would now like to introduce Stephen W. Ries, Head of Investor Relations. Stephen W. Ries Thank you operator. ...

Global Indemnity Group, LLC (NYSE:GBLI) Q3 2021 Earnings Conference Call November 9, 2021 11:00 AM ET Company Participants David Charlton - CEO Thomas McGeehan - CFO Steve Ries - Head of IR Conference Call Participants Julia Ferguson - Dowling & Partners Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the corresponding text be unclear. The machine-assisted outp ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial statements and management's discussion and analysis of the Company's financial performance and condition [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of Global Indemnity Group, LLC, including balance sheets, statements of operations, comprehensive income (loss), changes in shareholders' equity, and cash flows for the periods ended September 30, 2021, and December 31, 2020 (for balance sheet) or September 30, 2020 (for income statements and cash flows) It also includes detailed notes explaining the principles of consolidation, significant accounting policies, investments, derivatives, fair value measurements, credit loss allowances, income taxes, loss and loss adjustment expenses, leases, shareholders' equity, related party transactions, commitments, share-based compensation, earnings per share, segment information, new accounting pronouncements, and subsequent events [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This chapter provides a summary of the Company's financial position, detailing assets, liabilities, and shareholders' equity as of September 30, 2021, and December 31, 2020 Consolidated Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2021 (in thousands) | Dec 31, 2020 (in thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Total assets | $1,950,621 | $1,904,908 | | Total liabilities | $1,255,435 | $1,186,584 | | Total shareholders' equity | $695,186 | $718,324 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) This chapter presents the Company's financial performance over specific periods, including revenues, expenses, and net income (loss) Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q3 2021 | Q3 2020 | 9M 2021 | 9M 2020 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Gross written premiums | $174,303 | $143,749 | $513,097 | $464,022 | | Net earned premiums | $157,565 | $140,302 | $450,673 | $426,617 | | Total revenues | $166,988 | $159,913 | $489,115 | $425,274 | | Net losses and loss adjustment expenses | $109,195 | $97,148 | $290,916 | $242,092 | | Net income (loss) | $(7,713) | $(15,170) | $4,179 | $(22,197) | | Net income (loss) available to common shareholders | $(7,823) | $(15,212) | $3,849 | $(22,239) | | Basic EPS | $(0.54) | $(1.06) | $0.27 | $(1.56) | | Diluted EPS | $(0.54) | $(1.06) | $0.26 | $(1.56) | | Cash dividends/distributions declared per common share | $0.25 | $0.25 | $0.75 | $0.75 | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This chapter details the Company's comprehensive income (loss), including net income (loss) and other comprehensive income (loss) components Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric | Q3 2021 | Q3 2020 | 9M 2021 | 9M 2020 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net income (loss) | $(7,713) | $(15,170) | $4,179 | $(22,197) | | Other comprehensive income (loss), net of tax | $(3,932) | $(1,973) | $(19,272) | $18,111 | | Comprehensive income (loss), net of tax | $(11,645) | $(17,143) | $(15,093) | $(4,086) | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This chapter outlines the changes in the Company's shareholders' equity, including components like additional paid-in capital, accumulated other comprehensive income, and retained earnings Shareholders' Equity Components (in thousands) | Metric | Sep 30, 2021 | Dec 31, 2020 | | :-------------------------------- | :----------- | :----------- | | Additional paid-in capital | $448,776 | $445,051 | | Accumulated other comprehensive income, net of tax | $15,036 | $34,308 | | Retained earnings | $227,853 | $234,965 | | Total shareholders' equity | $695,186 | $718,324 | - Class A common shares outstanding increased to **10,534,245** as of September 30, 2021, from **10,263,722** as of December 31, 2020 Class B common shares outstanding decreased to **3,947,206** from **4,133,366** over the same period[4](index=4&type=chunk)[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This chapter summarizes the Company's cash inflows and outflows from operating, investing, and financing activities Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | 9M 2021 | 9M 2020 | Change (in thousands) | % Change | | :-------------------------------- | :------ | :------ | :-------------------- | :------- |\ | Net cash provided by operating activities | $66,054 | $33,936 | $32,118 | 94.6% | | Net cash provided by (used for) investing activities | $(81,184) | $139,469 | $(220,653) | (158.2%) | | Net cash used for financing activities | $(11,651) | $(180,465) | $168,814 | 93.5% | | Net change in cash and cash equivalents | $(26,781) | $(7,060) | $(19,701) | (279.0%) | | Cash and cash equivalents at end of period | $40,578 | $37,211 | $3,367 | 9.0% | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This chapter provides detailed explanations and disclosures supporting the 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 Company's legal structure, classification as a publicly traded partnership, and its four insurance business segments - Global Indemnity Group, LLC (GBLI) redomesticated from a Cayman Islands entity to a Delaware LLC on **August 28, 2020**, and is classified as a publicly traded partnership for U.S. federal income tax purposes[25](index=25&type=chunk)[26](index=26&type=chunk) - The Company's insurance operations are managed through four business segments: Commercial Specialty, Specialty Property, Farm, Ranch & Stable, and Reinsurance Operations, offering various property and casualty insurance products[28](index=28&type=chunk) [2. Summary of Significant Accounting Policies](index=9&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the Company's key accounting policies, including a recent update regarding the timing of recording results for certain investments - The Company updated its accounting policy for investments in limited partnerships and limited liability companies; timely received results are included in current results, otherwise, they are recorded on a **one-quarter lag**[34](index=34&type=chunk) [3. Investments](index=9&type=section&id=3.%20Investments) This note details the Company's investment portfolio, including fixed maturities, equity securities, fair values, and net investment income Fixed Maturities and Equity Securities (in thousands) | Investment Type | Sep 30, 2021 Fair Value | Dec 31, 2020 Fair Value | | :-------------------------- | :---------------------- | :---------------------- | | Fixed maturities | $1,199,969 | $1,191,186 | | Equity securities | $90,294 | $98,990 | | Total investments | $1,445,609 | $1,387,194 | Net Investment Income and Realized Gains (Losses) (in thousands) | Metric | Q3 2021 | Q3 2020 | 9M 2021 | 9M 2020 | | :-------------------- | :------ | :------ | :------ | :------ | | Net investment income | $9,344 | $11,746 | $29,813 | $19,516 | | Net realized investment gains (losses) | $(310) | $7,323 | $7,342 | $(22,332) | - The Company determined that an allowance for expected credit losses on its investments is **not required** as of September 30, 2021[59](index=59&type=chunk) [4. Derivative Instruments](index=18&type=section&id=4.%20Derivative%20Instruments) This note describes the Company's use of derivative instruments, primarily interest rate swaps, for managing market risks - The Company uses interest rate swaps and previously used futures contracts as non-hedge derivative instruments to manage market risks[79](index=79&type=chunk) Derivative Instruments Fair Value (in thousands) | Derivative Type | Sep 30, 2021 Fair Value | Dec 31, 2020 Fair Value | | :---------------------- | :---------------------- | :---------------------- | | Interest rate swap agreements | $(11,445) | $(16,430) | | Futures contracts on bonds | — | — | | Total | $(11,445) | $(16,430) | - Net realized investment gains (losses) from derivatives were **$(95) thousand** for Q3 2021 (vs. **$160 thousand** in Q3 2020) and **$500 thousand** for 9M 2021 (vs. **$(22,159) thousand** in 9M 2020)[83](index=83&type=chunk) [5. Fair Value Measurements](index=19&type=section&id=5.%20Fair%20Value%20Measurements) This note details the Company's fair value measurements for assets and liabilities, categorized by input observability levels Fair Value Measurements by Level (in thousands) - Assets as of Sep 30, 2021 | Asset Type | Level 1 | Level 2 | Level 3 | Total | | :-------------------------------- | :------ | :-------- | :------ | :---------- | | Fixed maturities | $114,677 | $1,083,754 | $1,538 | $1,199,969 | | Equity securities | $67,209 | $23,085 | — | $90,294 | | Total assets measured at fair value | $181,886 | $1,106,839 | $1,538 | $1,290,263 | Fair Value Measurements by Level (in thousands) - Liabilities as of Sep 30, 2021 | Liability Type | Level 1 | Level 2 | Level 3 | Total | | :-------------------------------- | :------ | :-------- | :------ | :---------- | | Derivative instruments | — | $11,445 | — | $11,445 | | Total liabilities measured at fair value | — | $11,445 | — | $11,445 | - The Company's **7.875% Subordinated Notes due 2047** are publicly traded and classified as **Level 1** in the fair value hierarchy, with a fair value of **$132.582 million** as of September 30, 2021[96](index=96&type=chunk)[97](index=97&type=chunk) [6. Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables](index=23&type=section&id=6.%20Allowance%20for%20Expected%20Credit%20Losses%20-%20Premium%20Receivables%20and%20Reinsurance%20Receivables) This note details the allowances maintained for expected credit losses on premium and reinsurance receivables Allowance for Expected Credit Losses - Premium Receivables (in thousands) | Metric | Q3 2021 | Q3 2020 | 9M 2021 | 9M 2020 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Beginning balance | $2,822 | $2,931 | $2,900 | $2,754 | | Current period provision | $217 | $476 | $477 | $951 | | Write-offs | $51 | $(538) | $(287) | $(836) | | Ending balance | $3,090 | $2,869 | $3,090 | $2,869 | Allowance for Expected Credit Losses - Reinsurance Receivables (in thousands) | Metric | Q3 2021 | Q3 2020 | 9M 2021 | 9M 2020 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Beginning balance | $8,992 | $8,992 | $8,992 | $8,992 | | Current period provision | — | — | — | — | | Write-offs | — | — | — | — | | Ending balance | $8,992 | $8,992 | $8,992 | $8,992 | [7. Income Taxes](index=24&type=section&id=7.%20Income%20Taxes) This note explains the Company's income tax status, effective tax rates, and carryforwards - Global Indemnity Group, LLC is a publicly traded partnership for U.S. federal income tax purposes, generally not subject to federal income tax, while its subsidiaries are[114](index=114&type=chunk) Effective Income Tax Benefit Rate | Period | 2021 Rate | 2020 Rate | | :-------------------- | :-------- | :-------- | | Quarter Ended Sep 30 | 18.6% | 17.5% | | Nine Months Ended Sep 30 | 36.5% | 26.9% | - The Company has a net operating loss (NOL) carryforward of **$30.7 million** and a Section 163(j) carryforward of **$3.5 million** as of September 30, 2021[124](index=124&type=chunk)[125](index=125&type=chunk) [8. Liability for Unpaid Losses and Loss Adjustment Expenses](index=28&type=section&id=8.%20Liability%20for%20Unpaid%20Losses%20and%20Loss%20Adjustment%20Expenses) This note details the Company's reserves for unpaid losses and loss adjustment expenses, including changes by accident year and segment Liability for Unpaid Losses and Loss Adjustment Expenses (in thousands) | Metric | Sep 30, 2021 | Dec 31, 2020 | | :-------------------------------- | :----------- | :----------- | | Gross balance at end of period | $731,765 | $662,811 | | Net balance at end of period | $643,033 | $580,653 | - Prior accident year loss reserves decreased by **$1.4 million** in Q3 2021, with decreases across Commercial Specialty, Specialty Property, Farm, Ranch & Stable, and Reinsurance Operations For the nine months ended September 30, 2021, prior accident year loss reserves increased by **$0.7 million**, primarily due to an increase in Commercial Specialty, offset by decreases in other segments[128](index=128&type=chunk)[134](index=134&type=chunk) [9. Leases](index=31&type=section&id=9.%20Leases) This note outlines the Company's accounting for operating leases, including ROU assets, lease liabilities, and related expenses Lease Expenses (in thousands) | Metric | Q3 2021 | Q3 2020 | 9M 2021 | 9M 2020 | | :-------------------- | :------ | :------ | :------ | :------ | | Operating lease expenses | $667 | $717 | $2,118 | $2,196 | | Short-term lease expenses | $2 | $2 | $7 | $6 | | Total lease expenses | $669 | $719 | $2,125 | $2,202 | Lease-Related Balance Sheet Information | Metric | Sep 30, 2021 | Dec 31, 2020 | | :-------------------------------- | :----------- | :----------- | | Operating lease assets | $19,963 | $21,077 | | Operating lease liabilities | $21,700 | $22,950 | | Weighted-average remaining lease term | 8.0 years | 8.8 years | | Weighted-average discount rate | 1.5% | 2.6% | [10. Shareholders' Equity](index=33&type=section&id=10.%20Shareholders'%20Equity) This note details the composition and changes in the Company's common and preferred shares, including outstanding shares and dividends - As of October 28, 2021, the registrant had outstanding **10,534,245 Class A Common Shares** and **3,947,206 Class B Common Shares**[4](index=4&type=chunk) - On **April 5, 2021**, **186,160 Class B common shares** were converted to Class A common shares[161](index=161&type=chunk) Common Share Dividends/Distributions Declared (in thousands) | Period | Total Distributions Declared | | :-------------------------------- | :--------------------------- | | Nine Months Ended Sep 30, 2021 | $10,961 | | Nine Months Ended Sep 30, 2020 | $10,973 | [11. Related Party Transactions](index=34&type=section&id=11.%20Related%20Party%20Transactions) This note describes transactions with related parties, including management fees and advisory fees paid to Fox Paine Entities - Fox Paine Entities beneficially own approximately **82.9%** of the voting power of Global Indemnity Group, LLC and control the appointment of all Directors[170](index=170&type=chunk) Management Fee Expense (in thousands) | Period | Management Fee Expense | | :-------------------- | :--------------------- | | Q3 2021 | $700 | | Q3 2020 | $600 | | 9M 2021 | $2,000 | | 9M 2020 | $2,000 | - A **$10.0 million** advisory fee was paid to Fox Paine & Company, LLC in Q3 and 9M 2020 for financial advisory services related to the redomestication plan[174](index=174&type=chunk) [12. Commitments and Contingencies](index=35&type=section&id=12.%20Commitments%20and%20Contingencies) This note outlines the Company's legal proceedings, funding commitments, and potential risks from COVID-19 related claims - The Company has unfunded commitments of **$14.2 million** for a European non-performing loan fund and **$17.0 million** for a distressed debt fund as of September 30, 2021[179](index=179&type=chunk)[180](index=180&type=chunk) - The Company faces ongoing risks from potential legislation or court rulings requiring coverage for COVID-19 related business interruption claims, despite policy exclusions[183](index=183&type=chunk) [13. Share-Based Compensation Plans](index=36&type=section&id=13.%20Share-Based%20Compensation%20Plans) This note details the Company's share-based compensation programs, including options, restricted shares, and book value appreciation rights - In 9M 2021, the Company granted **140,000 Performance-Based Options** and **300,000 unvested stock options** were forfeited[184](index=184&type=chunk) - Non-employee directors were granted **61,216 Class A common shares** in 9M 2021 (vs. **81,502** in 9M 2020)[190](index=190&type=chunk) - The Company granted **2,500,000** and **400,000 Penn-Patriot BVARs** in 9M 2021, entitling holders to payments based on Penn-Patriot's book value appreciation, subject to performance and employment[191](index=191&type=chunk)[192](index=192&type=chunk) - **58,250 shares** of Penn-Patriot Book Value Rights were granted in 9M 2021, with a **three-year cliff vesting period**[196](index=196&type=chunk) [14. Earnings Per Share](index=38&type=section&id=14.%20Earnings%20Per%20Share) This note provides the computation of basic and diluted earnings per share, including adjustments for net losses Earnings Per Share Data | Metric | Q3 2021 | Q3 2020 | 9M 2021 | 9M 2020 | | :-------------------- | :------ | :------ | :------ | :------ | | Net income (loss) available to common shareholders | $(7,823) | $(15,212) | $3,849 | $(22,239) | | Basic EPS | $(0.54) | $(1.06) | $0.27 | $(1.56) | | Diluted EPS | $(0.54) | $(1.06) | $0.26 | $(1.56) | - For periods with a net loss (Q3 2021, Q3 2020, 9M 2020), basic weighted average shares outstanding were used to calculate diluted EPS[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) [15. Segment Information](index=39&type=section&id=15.%20Segment%20Information) This note provides detailed financial information for the Company's four distinct business segments - The Company's insurance operations are managed through four business segments: Commercial Specialty, Specialty Property, Farm, Ranch & Stable, and Reinsurance Operations[202](index=202&type=chunk) Gross Written Premiums by Segment (in thousands) | Segment | Q3 2021 | Q3 2020 | 9M 2021 | 9M 2020 | | :-------------------- | :------ | :------ | :------ | :------ | | Commercial Specialty | $95,734 | $74,971 | $279,746 | $243,099 | | Specialty Property | $30,504 | $34,730 | $96,875 | $107,951 | | Farm, Ranch & Stable | $18,500 | $19,443 | $60,353 | $64,798 | | Reinsurance Operations | $29,565 | $14,605 | $76,123 | $48,174 | | Total | $174,303 | $143,749 | $513,097 | $464,022 | Underwriting Income (Loss) by Segment (in thousands) | Segment | Q3 2021 | Q3 2020 | 9M 2021 | 9M 2020 | | :-------------------- | :------ | :------ | :------ | :------ | | Commercial Specialty | $(8,593) | $4,065 | $(15,160) | $22,686 | | Specialty Property | $(2,865) | $(15,956) | $3,108 | $(6,523) | | Farm, Ranch & Stable | $28 | $(2,079) | $(932) | $(2,587) | | Reinsurance Operations | $932 | $4,453 | $2,816 | $9,200 | [16. New Accounting Pronouncements](index=42&type=section&id=16.%20New%20Accounting%20Pronouncements) This note discusses the adoption of new FASB guidance related to income taxes and its impact on the Company's financial statements - The Company adopted updated FASB guidance on income taxes on **January 1, 2021**, which did not have a material impact on its financial condition, results of operations, or cash flows[213](index=213&type=chunk) [17. Subsequent Events](index=42&type=section&id=17.%20Subsequent%20Events) This note describes significant events occurring after the reporting period, including the sale of business lines and related financial impacts - On **October 26, 2021**, the Company sold its manufactured and dwelling homes business lines for **$28 million**, receiving **$30.4 million** in cash and retaining American Reliable's operating unit, **$65 million** of net capital, and a **$42 million** unearned premium reserve[214](index=214&type=chunk)[220](index=220&type=chunk) - K2 Insurance Services will sublease approximately **one-third** of the Company's Scottsdale, Arizona office, with expected payments of **$2.4 million** between October 2021 and November 2029[214](index=214&type=chunk)[220](index=220&type=chunk) - American Reliable plans to cease writing manufactured home and dwelling insurance in Florida and Louisiana[214](index=214&type=chunk)[220](index=220&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&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 condition and operational results, including recent developments, an overview of business segments, critical accounting estimates, and a detailed analysis of revenues, expenses, and underwriting performance It also discusses liquidity, capital resources, and market risks, along with forward-looking statements [Recent Developments](index=44&type=section&id=Recent%20Developments) This chapter highlights key events and changes impacting the Company, such as business line sales, executive appointments, and financial strength ratings - The Company sold its manufactured and dwelling homes business lines on **October 26, 2021**, for **$28 million**, receiving **$30.4 million** in cash and retaining American Reliable's operating unit, **$65 million** of net capital, and a **$42 million** unearned premium reserve[220](index=220&type=chunk) - David S. Charlton was named Chief Executive of the Company's insurance operations and appointed to the Board on **April 19, 2021** Reiner R. Mauer was named Chief Operations Officer on **May 17, 2021**[221](index=221&type=chunk)[222](index=222&type=chunk) - The Board approved quarterly distributions of **$0.25 per common share** in 2021, totaling **$10.8 million** for common shareholders and **$0.3 million** for preferred shareholders during the nine months ended September 30, 2021[225](index=225&type=chunk) - AM Best affirmed the financial strength rating of **"A" (Excellent)** for the Company's U.S. operating subsidiaries on **April 21, 2021**[226](index=226&type=chunk) [Overview](index=45&type=section&id=Overview) This chapter provides a general description of the Company's business model, including its operating segments and primary revenue and expense drivers - The Company's four business segments are Commercial Specialty, Specialty Property, Farm, Ranch & Stable, and Reinsurance Operations, each with distinct product offerings and distribution networks[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk) - Revenues are primarily derived from insurance premiums and investment income, while expenses include losses and loss adjustment expenses, acquisition costs, underwriting expenses, corporate and other operating expenses, interest, and income taxes[232](index=232&type=chunk)[235](index=235&type=chunk) [Critical Accounting Estimates and Policies](index=46&type=section&id=Critical%20Accounting%20Estimates%20and%20Policies) This chapter discusses the significant accounting estimates and policies that require management judgment and can materially impact financial reporting - Critical accounting policies involve significant estimates for unpaid losses and loss adjustment expenses, reinsurance receivables, investments, fair value measurements, goodwill, intangible assets, deferred acquisition costs, and taxation[238](index=238&type=chunk) - The only significant change in accounting policy is the timing of recording results for investments in limited partnerships and limited liability companies, now included in current results if timely, or on a **one-quarter lag** otherwise[238](index=238&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) This chapter analyzes the Company's financial performance, including net income (loss), premium growth, and combined ratio, with detailed segment breakdowns Consolidated Financial Highlights (in thousands) | Metric | Q3 2021 | Q3 2020 | 9M 2021 | 9M 2020 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Gross written premiums | $174,303 | $143,749 | $513,097 | $464,022 | | Net earned premiums | $157,565 | $140,302 | $450,673 | $426,617 | | Net income (loss) | $(7,713) | $(15,170) | $4,179 | $(22,197) | | Loss ratio | 69.3% | 69.2% | 64.5% | 56.7% | | Expense ratio | 37.6% | 38.0% | 38.0% | 38.3% | | Combined ratio | 106.9% | 107.2% | 102.5% | 95.0% | [Premiums](index=48&type=section&id=Premiums) This chapter analyzes the trends in gross written premiums, highlighting growth drivers and offsetting factors across business segments Gross Written Premiums by Segment (in thousands) | Segment | Q3 2021 | Q3 2020 | % Change (YoY) | 9M 2021 | 9M 2020 | % Change (YoY) | | :-------------------- | :------ | :------ | :------------- | :------ | :------ | :------------- | | Commercial Specialty | $95,734 | $74,971 | 27.7% | $279,746 | $243,099 | 15.1% | | Specialty Property | $30,504 | $34,730 | (12.2%) | $96,875 | $107,951 | (10.3%) | | Farm, Ranch & Stable | $18,500 | $19,443 | (4.9%) | $60,353 | $64,798 | (6.9%) | | Reinsurance | $29,565 | $14,605 | 102.4% | $76,123 | $48,174 | 58.0% | | Total | $174,303 | $143,749 | 21.3% | $513,097 | $464,022 | 10.6% | - Growth in gross written premiums was mainly due to Commercial Specialty and Reinsurance Operations, partially offset by reductions in catastrophe-exposed business in Specialty Property and Farm, Ranch & Stable[247](index=247&type=chunk) [Net Retention](index=49&type=section&id=Net%20Retention) This chapter examines the Company's net premium retention rate, attributing changes to reinsurance restructuring and business mix shifts Net Premium Retention by Segment | Segment | Q3 2021 | Q3 2020 | Point Change | 9M 2021 | 9M 2020 | Point Change | | :-------------------- | :------ | :------ | :----------- | :------ | :------ | :----------- | | Commercial Specialty | 93.1% | 92.1% | 1.0 | 91.5% | 90.3% | 1.2 | | Specialty Property | 89.2% | 86.3% | 2.9 | 89.4% | 86.2% | 3.2 | | Farm, Ranch & Stable | 88.5% | 87.2% | 1.3 | 85.9% | 86.9% | (1.0) | | Reinsurance | 100.0% | 100.0% | — | 100.0% | 100.0% | — | | Total | 93.1% | 90.9% | 2.2 | 91.7% | 89.9% | 1.8 | - The increase in net premium retention is primarily due to the restructuring of catastrophe reinsurance treaties in **June 2020** and a change in the mix of business[249](index=249&type=chunk) [Net Earned Premiums](index=49&type=section&id=Net%20Earned%20Premiums) This chapter analyzes net earned premiums across segments, highlighting factors like organic growth, pricing, and reduced catastrophe exposure Net Earned Premiums by Segment (in thousands) | Segment | Q3 2021 | Q3 2020 | % Change (YoY) | 9M 2021 | 9M 2020 | % Change (YoY) | | :-------------------- | :------ | :------ | :------------- | :------ | :------ | :------------- | | Commercial Specialty | $84,209 | $73,887 | 14.0% | $240,505 | $211,329 | 13.8% | | Specialty Property | $29,343 | $31,388 | (6.5%) | $89,826 | $99,147 | (9.4%) | | Farm, Ranch & Stable | $17,936 | $19,978 | (10.2%) | $54,037 | $57,691 | (6.3%) | | Reinsurance | $26,077 | $15,049 | 73.3% | $66,305 | $58,450 | 13.4% | | Total | $157,565 | $140,302 | 12.3% | $450,673 | $426,617 | 5.6% | - Commercial Specialty's net earned premiums increased due to organic growth and pricing, while Specialty Property and Farm, Ranch & Stable decreased due to reduced catastrophe exposure Reinsurance Operations saw significant growth from casualty treaties[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk)[253](index=253&type=chunk) [Reserves](index=50&type=section&id=Reserves) This chapter provides an overview of the Company's gross and net loss reserves and a sensitivity analysis for current accident year net loss estimates Gross and Net Reserves for Unpaid Losses and Loss Adjustment Expenses (in thousands) as of Sep 30, 2021 | Segment | Gross Reserves | Net Reserves | | :-------------------- | :------------- | :----------- | | Commercial Specialty | $480,706 | $407,525 | | Specialty Property | $39,919 | $34,645 | | Farm, Ranch & Stable | $45,371 | $35,094 | | Reinsurance Operations | $165,769 | $165,769 | | Total | $731,765 | $643,033 | Sensitivity of Current Accident Year Net Loss Estimate (9M 2021) (in thousands) | Frequency Change | -10% Severity | -5% Severity | 0% Severity | 5% Severity | 10% Severity | | :--------------- | :------------ | :----------- | :---------- | :---------- | :----------- | | -5% | $(42,079) | $(28,295) | $(14,510) | $(726) | $13,059 | | 0% | $(29,020) | $(14,510) | — | $14,510 | $29,020 | | 5% | $(15,961) | $(726) | $14,510 | $29,746 | $44,981 | [Underwriting Results](index=51&type=section&id=Underwriting%20Results) This chapter analyzes the underwriting performance of each business segment, focusing on combined ratios and factors influencing loss and expense ratios [Commercial Specialty](index=51&type=section&id=Commercial%20Specialty) This chapter details the underwriting performance of the Commercial Specialty segment, including changes in combined ratio and loss drivers Commercial Specialty Underwriting Ratios | Metric | Q3 2021 | Q3 2020 | Point Change | 9M 2021 | 9M 2020 | Point Change | | :-------------------- | :------ | :------ | :----------- | :------ | :------ | :----------- | | Calendar year loss ratio | 74.3% | 58.0% | 16.3 | 69.7% | 51.7% | 18.0 | | Expense ratio | 35.9% | 36.5% | (0.6) | 36.6% | 37.6% | (1.0) | | Combined ratio | 110.2% | 94.5% | 15.7 | 106.3% | 89.3% | 17.0 | - The current accident year non-catastrophe property loss ratio increased by **12.1 points** in Q3 2021 and **11.3 points** in 9M 2021 due to higher claims severity[267](index=267&type=chunk)[268](index=268&type=chunk) - The current accident year casualty loss ratio increased by **7.6 points** in Q3 2021 and **4.7 points** in 9M 2021 due to higher claims frequency[271](index=271&type=chunk) [Specialty Property](index=54&type=section&id=Specialty%20Property) This chapter details the underwriting performance of the Specialty Property segment, highlighting improvements in combined ratio due to lower catastrophe losses Specialty Property Underwriting Ratios | Metric | Q3 2021 | Q3 2020 | Point Change | 9M 2021 | 9M 2020 | Point Change | | :-------------------- | :------ | :------ | :----------- | :------ | :------ | :----------- | | Calendar year loss ratio | 69.9% | 109.7% | (39.8) | 56.0% | 66.2% | (10.2) | | Expense ratio | 41.3% | 42.6% | (1.3) | 42.0% | 41.7% | 0.3 | | Combined ratio | 111.2% | 152.3% | (41.1) | 98.0% | 107.9% | (9.9) | - The current accident year catastrophe loss ratio improved by **36.0 points** in Q3 2021 and **13.0 points** in 9M 2021 due to lower claims frequency and severity Hurricane Ida's impact on Q3 2021 loss ratio was **18.6 points**, compared to Hurricane Laura's **36.2 points** in Q3 2020[287](index=287&type=chunk)[288](index=288&type=chunk) [Farm, Ranch & Stable](index=58&type=section&id=Farm,%20Ranch%20%26%20Stable) This chapter details the underwriting performance of the Farm, Ranch & Stable segment, showing improved combined ratio from reduced catastrophe losses Farm, Ranch & Stable Underwriting Ratios | Metric | Q3 2021 | Q3 2020 | Point Change | 9M 2021 | 9M 2020 | Point Change | | :-------------------- | :------ | :------ | :----------- | :------ | :------ | :----------- | | Calendar year loss ratio | 59.5% | 73.4% | (13.9) | 62.3% | 65.3% | (3.0) | | Expense ratio | 40.5% | 37.3% | 3.2 | 39.7% | 39.3% | 0.4 | | Combined ratio | 100.0% | 110.7% | (10.7) | 102.0% | 104.6% | (2.6) | - The current accident year catastrophe loss ratio improved by **35.7 points** in Q3 2021 and **19.6 points** in 9M 2021 due to lower claims frequency and severity The Midwest derecho impacted the 2020 Q3 loss ratio by **30.1 points**[306](index=306&type=chunk)[307](index=307&type=chunk) [Reinsurance Operations](index=61&type=section&id=Reinsurance%20Operations) This chapter details the underwriting performance of the Reinsurance Operations segment, noting changes in combined ratio due to business mix and profit commissions Reinsurance Operations Underwriting Ratios | Metric | Q3 2021 | Q3 2020 | Point Change | 9M 2021 | 9M 2020 | Point Change | | :-------------------- | :------ | :------ | :----------- | :------ | :------ | :----------- | | Calendar year loss ratio | 59.2% | 34.5% | 24.7 | 59.4% | 50.6% | 8.8 | | Expense ratio | 36.9% | 36.7% | 0.2 | 36.2% | 33.8% | 2.4 | | Combined ratio | 96.1% | 71.2% | 24.9 | 95.6% | 84.4% | 11.2 | - The current accident year loss ratio improved by **5.6 points** in Q3 2021 but increased by **2.2 points** in 9M 2021, reflecting a business mix shift to more casualty premium[319](index=319&type=chunk)[320](index=320&type=chunk) - The expense ratio increased in 9M 2021 due to a change in business mix and an increase in profit commissions[323](index=323&type=chunk) [Unallocated Corporate Items](index=62&type=section&id=Unallocated%20Corporate%20Items) This chapter covers financial results not attributed to specific business segments, including investment income, realized gains, corporate expenses, interest, and taxes [Net Investment Income](index=63&type=section&id=Net%20Investment%20Income) This chapter analyzes net investment income, highlighting changes due to alternative investments and the fixed income portfolio's characteristics Net Investment Income (in thousands) | Metric | Q3 2021 | Q3 2020 | % Change (YoY) | 9M 2021 | 9M 2020 | % Change (YoY) | | :-------------------- | :------ | :------ | :------------- | :------ | :------ | :------------- | | Gross investment income | $10,010 | $12,556 | (20.3%) | $31,827 | $21,662 | 46.9% | | Investment expenses | $(666) | $(810) | (17.8%) | $(2,014) | $(2,146) | (6.2%) | | Net investment income | $9,344 | $11,746 | (20.4%) | $29,813 | $19,516 | 52.8% | - The fixed income portfolio maintains an **A average rating** and a duration of **3.3 years** as of September 30, 2021[325](index=325&type=chunk)[330](index=330&type=chunk) [Net Realized Investment Gains (Losses)](index=63&type=section&id=Net%20Realized%20Investment%20Gains%20(Losses)) This chapter analyzes net realized investment gains and losses, noting the shift from losses to gains primarily driven by equity securities and derivatives Net Realized Investment Gains (Losses) (in thousands) | Investment Type | Q3 2021 | Q3 2020 | 9M 2021 | 9M 2020 | | :-------------------- | :------ | :------ | :------ | :------ | | Equity securities | $(1,662) | $4,887 | $6,101 | $(17,201) | | Fixed maturities | $1,447 | $2,276 | $741 | $17,028 | | Derivatives | $(95) | $160 | $500 | $(22,159) | | Total | $(310) | $7,323 | $7,342 | $(22,332) | [Corporate and Other Operating Expenses](index=64&type=section&id=Corporate%20and%20Other%20Operating%20Expenses) This chapter examines corporate and other operating expenses, highlighting a significant decrease due to lower redomestication-related professional fees Corporate and Other Operating Expenses (in thousands) | Period | 2021 | 2020 | % Change (YoY) | | :-------------------- | :----- | :----- | :------------- | | Q3 | $5,387 | $21,196 | (74.6%) | | 9M | $15,992 | $34,037 | (53.0%) | - The decrease in corporate expenses is primarily due to lower professional fees related to the redomestication in 2020[334](index=334&type=chunk) [Interest Expense](index=64&type=section&id=Interest%20Expense) This chapter analyzes interest expense, noting reductions due to debt redemptions and repayment of a margin borrowing facility Interest Expense (in thousands) | Period | 2021 | 2020 | % Change (YoY) | | :-------------------- | :----- | :----- | :------------- | | Q3 | $2,596 | $3,620 | (28.3%) | | 9M | $7,887 | $13,197 | (40.2%) | - The decrease in interest expense is primarily due to the redemption of **7.75% Subordinated Notes due 2045** and repayment of the margin borrowing facility in **August 2020**[335](index=335&type=chunk) [Income Tax Benefit](index=64&type=section&id=Income%20Tax%20Benefit) This chapter examines the income tax benefit, explaining reductions due to prior year redomestication benefits and increased pre-tax income Income Tax Benefit (in thousands) | Period | 2021 | 2020 | % Change (YoY) | | :-------------------- | :----- | :----- | :------------- | | Q3 | $1,759 | $3,209 | (45.2%) | | 9M | $1,118 | $8,173 | (86.3%) | - The Q3 reduction in tax benefit is primarily due to a **$1.7 million** tax benefit recognized in 2020 from the redomestication of net insurance liabilities from Bermuda to the U.S.[336](index=336&type=chunk) - The 9M reduction in tax benefit is primarily due to an increase in pre-tax income of the Company's U.S. subsidiaries[337](index=337&type=chunk) [Net Income (Loss)](index=64&type=section&id=Net%20Income%20(Loss)) This chapter summarizes the Company's net income (loss) for the reported periods, highlighting improvements compared to the prior year Net Income (Loss) (in thousands) | Period | 2021 | 2020 | % Change (YoY) | | :-------------------- | :----- | :----- | :------------- | | Q3 | $(7,713) | $(15,170) | 49.2% | | 9M | $4,179 | $(22,197) | 118.8% | [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) This chapter discusses the Company's ability to generate and manage cash, including sources and uses of funds, cash flows, and capital structure [Sources and Uses of Funds](index=64&type=section&id=Sources%20and%20Uses%20of%20Funds) This chapter outlines the primary sources and applications of cash for the holding company and its insurance subsidiaries, noting dividend restrictions - Global Indemnity Group, LLC's principal sources of cash are investment income, dividends from subsidiaries, and intercompany borrowings, used for corporate expenses, debt service, and shareholder distributions[341](index=341&type=chunk) - The Company's insurance subsidiaries are restricted by statute on the amount of dividends they may pay without regulatory approval[345](index=345&type=chunk) - As of September 30, 2021, the Company had future funding commitments of **$31.2 million** related to alternative investments, with minimal expected capital calls[344](index=344&type=chunk) [Cash Flows](index=65&type=section&id=Cash%20Flows) This chapter analyzes the Company's cash flow from operating activities, highlighting the drivers of significant increases Net Cash Provided by Operating Activities (in thousands) | Metric | 9M 2021 | 9M 2020 | Change (in thousands) | % Change | | :-------------------------------- | :------ | :------ | :-------------------- | :------- | | Net cash provided by operating activities | $66,054 | $33,936 | $32,118 | 94.6% | - The increase in operating cash flows was primarily due to higher net premiums collected (**$46.1 million** increase) and lower net losses paid (**$4.9 million** decrease), partially offset by decreased net investment income and federal income tax recoveries[347](index=347&type=chunk) [Liquidity](index=66&type=section&id=Liquidity) This chapter discusses factors affecting the Company's liquidity, including COVID-19 risks and the positive impact of recent business line sales - COVID-19 poses risks to liquidity through potential premium non-payment, increased claims, and investment market disruption, with management actively monitoring impacts[350](index=350&type=chunk) - The sale of manufactured and dwelling homes business lines is expected to generate **$30.4 million** in cash and retain **$65 million** of net capital, enhancing liquidity[352](index=352&type=chunk) - Quarterly distributions of **$0.25 per common share** were approved in 2021, totaling **$10.8 million** for common shareholders and **$0.3 million** for preferred shareholders in 9M 2021[351](index=351&type=chunk) [Capital Resources](index=66&type=section&id=Capital%20Resources) This chapter describes the Company's capital structure, noting the repayment of an intercompany promissory note and the absence of other material changes - Global Indemnity Investments Inc. repaid its promissory note with Global Indemnity Group, LLC on **September 27, 2021**, eliminating all intercompany notes outstanding[354](index=354&type=chunk) [Co-obligor Financial Information](index=66&type=section&id=Co-obligor%20Financial%20Information) This chapter provides summarized financial information for co-obligors of the 7.875% Subordinated Notes due 2047, detailing their ranking and subordination - Global Indemnity Group, LLC and GBLI Holdings, LLC are co-obligors for the **7.875% Subordinated Notes due 2047**[356](index=356&type=chunk) - The 2047 Notes are subordinated unsecured obligations, ranking senior to capital stock but subordinate to senior debt and structurally subordinated to most subsidiary liabilities[358](index=358&type=chunk) Parent and Subsidiary Co-obligors Summarized Balance Sheet (in thousands) | Metric | Sep 30, 2021 | Dec 31, 2020 | | :-------------------------------- | :----------- | :----------- | | Intercompany note receivable | — | $11,283 | | Total assets excluding investment in subsidiaries | $305,180 | $324,229 | | Total liabilities | $156,649 | $158,423 | [Off Balance Sheet Arrangements](index=67&type=section&id=Off%20Balance%20Sheet%20Arrangements) This chapter confirms that the Company has no off-balance sheet arrangements - The Company has **no off-balance sheet arrangements**[365](index=365&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=67&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This chapter advises readers that the report contains forward-looking statements subject to risks and uncertainties, and the Company does not commit to updating them - The report contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from projections[367](index=367&type=chunk)[369](index=369&type=chunk) - The Company does not undertake any obligation to publicly update or review forward-looking statements[370](index=370&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the Company's exposure to market risks, including equity and fixed income market movements, and its investment portfolio characteristics - Global equities fell approximately **1.0%** in Q3 2021, with U.S. equities returning approximately **0.6%** U.S. fixed income returned approximately **0.1%**[371](index=371&type=chunk) - The Company's investment grade fixed income portfolio maintains an **A average rating** and a duration of **3.3 years** as of September 30, 2021[372](index=372&type=chunk) - Portfolio purchases focused on US Treasury, asset-backed, and investment-grade credit securities, increasing allocation to asset-backed and investment-grade credit while decreasing exposure to MBS and US Treasuries[372](index=372&type=chunk) [Item 4. Controls and Procedures](index=68&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures and reports no material changes in internal control over financial reporting - The Company's disclosure controls and procedures were evaluated as **effective** at the reasonable assurance level as of September 30, 2021[373](index=373&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended September 30, 2021[376](index=376&type=chunk) [PART II – OTHER INFORMATION](index=70&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) This section addresses the Company's involvement in legal proceedings and its assessment of their potential financial impact - The Company does not believe that current legal proceedings will have a material adverse effect on its business, results of operations, cash flows, or financial condition[378](index=378&type=chunk) - The Company monitors relationships with reinsurers in runoff due to a greater potential for disputes[379](index=379&type=chunk) [Item 1A. Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the Company's comprehensive risk factors previously disclosed, confirming no material changes - The Company's risk factors, as described in its **2020 Annual Report on Form 10-K** and **Q2 2021 Form 10-Q**, have not materially changed[380](index=380&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on unregistered sales of equity securities, specifically employee share surrenders for tax liabilities - No Class A common shares were surrendered by employees for tax liabilities during Q3 2021[381](index=381&type=chunk) - Surrendered shares are held as treasury stock at cost until formally retired[381](index=381&type=chunk) [Item 3. Defaults Upon Senior Securities](index=70&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section confirms the absence of any defaults on senior securities during the reporting period - No defaults upon senior securities were reported[382](index=382&type=chunk) [Item 4. Mine Safety Disclosures](index=70&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that no mine safety disclosures are applicable or reported for the Company - No mine safety disclosures were reported[382](index=382&type=chunk) [Item 5. Other Information](index=70&type=section&id=Item%205.%20Other%20Information) This section indicates that no other information is reported - No other information was reported[382](index=382&type=chunk) [Item 6. Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section lists all exhibits accompanying the report, including certifications and XBRL taxonomy documents - The report includes certifications from the Principal Executive Officer and Chief Financial Officer (Exhibits **31.1, 31.2, 32.1, 32.2**)[387](index=387&type=chunk) - XBRL Instance Document and Taxonomy Extension Schema, Calculation, Definition, Label, and Presentation Linkbase Documents are filed as exhibits[387](index=387&type=chunk) [Signature](index=72&type=section&id=Signature) This section contains the official signature and date of the financial report - The report was signed by **Thomas M. McGeehan, Chief Financial Officer**, on **November 9, 2021**[389](index=389&type=chunk)

Premiums and Revenue - Gross written premiums increased by 6.5% to $175.236 million for the quarter ended June 30, 2021, compared to $164.549 million in the same quarter of 2020[222] - Net written premiums rose by 9.1% to $160.653 million for the quarter ended June 30, 2021, compared to $147.264 million in the same quarter of 2020[222] - Net earned premiums increased by 5.3% to $149.408 million for the quarter ended June 30, 2021, compared to $141.847 million in the same quarter of 2020[222] - Gross written premiums increased by 6.5% for the quarter and 5.8% for the six months ended June 30, 2021, compared to the same periods in 2020, driven by growth in existing programs and increased pricing[226] - Net written premiums rose by 9.1% for the quarter and 7.7% for the six months ended June 30, 2021, compared to the same periods in 2020, with Commercial Specialty segment showing a 13.4% increase for the quarter[229] - Net earned premiums in the Commercial Specialty segment increased by 14.9% for the quarter and 13.7% for the six months ended June 30, 2021, compared to the same periods in 2020[230] - The company reported a total revenue of $30,350 thousand for the quarter ended June 30, 2021, down from $33,972 thousand in 2020, reflecting a decline in premium income[254] - Total revenue for the six months ended June 30, 2021, was $12.5 million, with a net loss of $434,000[333] Losses and Expenses - Net losses and loss adjustment expenses surged by 35.1% to $90.938 million for the quarter ended June 30, 2021, compared to $67.297 million in the same quarter of 2020[222] - Underwriting income decreased by 91.9% to $1.769 million for the quarter ended June 30, 2021, compared to $21.716 million in the same quarter of 2020[222] - The combined ratio for the quarter ended June 30, 2021, was 99.2%, compared to 85.2% in the same quarter of 2020[222] - The total net losses and loss adjustment expense for the first six months of 2021 was $105,053,000, with a loss ratio of 67.3%[242] - The current accident year loss ratio for Q2 2021 was 57.2%, a decrease of 4.6 points from 61.8% in Q2 2020[245] - The current accident year casualty loss ratio increased by 8.1 points to 57.5% in Q2 2021 compared to 49.4% in Q2 2020[247] - The total net losses and loss adjustment expense for the quarter ended June 30, 2021, was $15,302 thousand, up from $13,691 thousand in 2020, resulting in a loss ratio of 51.2%[258] - Casualty loss ratio increased to 54.0% for the quarter ended June 30, 2021, compared to 43.1% in 2020, indicating higher claims frequency[264] Investment and Financial Performance - Net investment income increased by 163.4% to $10.633 million for the quarter ended June 30, 2021, compared to a loss of $2.359 million in the same quarter of 2020[222] - The company reported a net income of $6.4 million for Q2 2021, down from $37.6 million in Q2 2020, and a net income of $11.9 million for the first half of 2021, compared to a net loss of $7.0 million in the same period last year[310] - Interest expense decreased by 42.8% in Q2 2021 and 44.8% for the first half of 2021, primarily due to the redemption of subordinated notes and repayment of margin borrowing[307] - The company recognized a loss of less than $0.1 million for other income during the first half of 2021, compared to a gain of $0.3 million in the same period of 2020, indicating a decline in foreign exchange gains[292] - The average duration of the company's fixed maturities portfolio was 4.5 years as of June 30, 2021, consistent with the previous year, while the embedded book yield on fixed maturities decreased to 2.3% from 2.5%[303] Shareholder and Dividend Information - The company declared a distribution payment of $0.25 per common share to shareholders of record on March 22, 2021, and June 21, 2021, totaling $7.2 million for the six months ended June 30, 2021[210] - The Company did not declare or pay any dividends during the quarter and six months ended June 30, 2021[318] - Distributions paid to common shareholders amounted to $7.2 million during the six months ended June 30, 2021[324] Ratings and Financial Strength - AM Best affirmed the financial strength rating of "A" (Excellent) for the U.S. operating subsidiaries of Global Indemnity Group, LLC on April 21, 2021[211] - The company's liquidity could be negatively impacted by the ongoing COVID-19 pandemic, particularly regarding business interruption claims[323] - The liquidity of Global Indemnity Group, LLC is dependent on the ability of its subsidiaries to pay dividends, which are restricted by state laws[318] Segment Performance - Net earned premiums in the Specialty Property segment decreased by 10.9% for the quarter and 10.7% for the six months ended June 30, 2021, compared to the same periods in 2020, due to a reduction in catastrophe exposed business[231] - Gross written premiums for the Specialty Property segment decreased by 13.1% to $33,013 thousand for the quarter ended June 30, 2021, compared to $37,978 thousand in 2020[254] - Gross written premiums for the Commercial Specialty segment increased by 10.7% to $96,680,000 in Q2 2021 compared to $87,297,000 in Q2 2020[239] - Net written premiums rose by 13.4% to $88,332,000 in Q2 2021 from $77,880,000 in Q2 2020[239] - Net earned premiums grew by 14.9% to $80,146,000 in Q2 2021 compared to $69,728,000 in Q2 2020[239] - Gross written premiums for the Reinsurance Operations segment increased by 53.8% to $24.7 million in Q2 2021 compared to $16.1 million in Q2 2020, and for the first half of 2021, they rose by 38.7% to $46.6 million from $33.6 million[288]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION (State or other jurisdiction of incorporation or organization) 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 March 31, 2021 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 ...

PART I [Business](index=3&type=section&id=Item%201.%20BUSINESS) Global Indemnity Group, LLC provides specialty property and casualty insurance and reinsurance through four segments, redomesticating to the U.S. in 2020 [History and Corporate Structure](index=3&type=section&id=History%20and%20Corporate%20Structure) The company redomesticated from the Cayman Islands to Delaware in August 2020, becoming a U.S. publicly traded partnership for tax purposes - On August 28, 2020, the company completed a redomestication transaction, moving its ultimate parent company from the Cayman Islands to Delaware, and merging its Bermuda reinsurance subsidiary into its U.S. operations[14](index=14&type=chunk) - Effective August 28, 2020, the company became a publicly traded partnership for U.S. federal income tax purposes, generally not subject to federal or most state income taxes at the corporate level; shareholders report their share of income via a Schedule K-1[15](index=15&type=chunk) [Business Segments](index=3&type=section&id=Business%20Segments) The company operates four segments: Commercial Specialty, Specialty Property, Farm, Ranch & Stable, and Reinsurance Operations, each serving distinct markets Gross Written Premiums by Segment (2020 vs. 2019) | Segment | 2020 GWP ($M) | 2019 GWP ($M) | Change | | :--- | :--- | :--- | :--- | | Commercial Specialty | $321.9 | $297.3 | ▲ 8.3% | | Specialty Property | $138.4 | $163.5 | ▼ 15.4% | | Farm, Ranch & Stable | $85.6 | $87.7 | ▼ 2.4% | | Reinsurance Operations | $60.7 | $88.3 | ▼ 31.3% | - In the first quarter of 2019, the company bifurcated its Personal Lines segment into two new reportable segments: Specialty Property and Farm, Ranch & Stable, and renamed Commercial Lines to Commercial Specialty[19](index=19&type=chunk) [Geographic Concentration](index=6&type=section&id=Geographic%20Concentration) The company's gross written premiums are geographically concentrated, with the top ten states accounting for 52.4% in 2020 Geographic Distribution of Gross Written Premiums (2020) | State/Region | GWP ($ thousands) | Percent of Total | | :--- | :--- | :--- | | California | $57,542 | 9.5% | | Texas | $55,045 | 9.1% | | Florida | $49,122 | 8.1% | | New York | $42,183 | 7.0% | | Top 10 States Subtotal | $317,908 | 52.4% | | All other states | $228,018 | 37.6% | | Reinsurance Operations | $60,677 | 10.0% | | **Total** | **$606,603** | **100.0%** | [Marketing, Distribution, and Underwriting](index=6&type=section&id=Marketing,%20Distribution,%20and%20Underwriting) Distribution relies on wholesale agents and brokers, with underwriting managed through binding authority or internal personnel, supported by strong oversight - The company's distribution strategy relies on strong relationships with a limited number of high-quality wholesale general agents and brokers, leveraging their local market knowledge and expertise[43](index=43&type=chunk) - Underwriting is performed through two primary models: granting specific binding authority to agents who operate within strict guidelines, or through internal underwriters for business submitted via brokerage channels[44](index=44&type=chunk)[45](index=45&type=chunk)[52](index=52&type=chunk) - The company employs a disciplined system of controls to monitor underwriting quality, including automated system edits, individual policy reviews, on-site audits, and quarterly actuarial and financial analysis of agent-produced business[51](index=51&type=chunk)[56](index=56&type=chunk) [Reinsurance of Underwriting Risk](index=9&type=section&id=Reinsurance%20of%20Underwriting%20Risk) The company uses third-party reinsurance, including property catastrophe and casualty excess of loss treaties, to manage underwriting risk - Effective June 1, 2020, the company's property catastrophe treaty provides three layers of coverage for losses of **$235 million** in excess of a **$15 million** retention[64](index=64&type=chunk) - The casualty excess of loss treaty provides coverage of **$10 million** per occurrence in excess of a **$2 million** retention, subject to a **$20 million** aggregate limit[70](index=70&type=chunk) Top Reinsurers by Gross Receivables (as of Dec 31, 2020) | Reinsurer | AM Best Rating | Gross Reinsurance Receivables ($M) | % of Total | | :--- | :--- | :--- | :--- | | Munich Re America Corp. | A+ | $44.8 | 45.9% | | General Reinsurance Corp. | A++ | $7.1 | 7.3% | | Swiss Reinsurance America Corp. | A+ | $4.4 | 4.5% | | **Top 10 Subtotal** | | **$75.2** | **77.0%** | [Reserves and A&E Exposure](index=11&type=section&id=Reserves%20and%20A%26E%20Exposure) Loss reserves, including for A&E claims, are established based on reported and IBNR losses, reviewed by internal and external actuaries - Loss reserves are established by evaluating individual reported claims and estimating IBNR losses based on statistical information and industry experience, reviewed quarterly internally and annually by an independent external actuary[78](index=78&type=chunk)[80](index=80&type=chunk) - As of December 31, 2020, the company held net loss reserves of **$15.8 million** for asbestos-related claims and **$12.9 million** for environmental claims[86](index=86&type=chunk) [Investments](index=13&type=section&id=Investments) The **$1.45 billion** investment portfolio is primarily high-quality fixed-income securities, with net realized losses of **$14.7 million** in 2020 Investment Portfolio Composition (as of Dec 31, 2020) | Asset Class | Fair Value ($ thousands) | Percent of Total | | :--- | :--- | :--- | | Total fixed maturities | $1,191,186 | 81.9% | | Equity securities | $98,990 | 6.8% | | Other invested assets | $97,018 | 6.7% | | Cash and cash equivalents | $67,359 | 4.6% | | **Total** | **$1,454,553** | **100.0%** | Fixed Maturities Credit Quality (as of Dec 31, 2020) | S&P Rating | Fair Value ($ thousands) | Percent of Total | | :--- | :--- | :--- | | AAA | $129,061 | 10.8% | | AA | $633,630 | 53.2% | | A | $136,009 | 11.4% | | BBB | $245,780 | 20.6% | | **Investment Grade (BBB and above)** | **$1,144,480** | **96.1%** | - The overall weighted average duration of the fixed maturities portfolio was **4.2 years** as of December 31, 2020[93](index=93&type=chunk) - Net realized investment gains (losses) were **($14.7) million**, **$35.3 million**, and **($16.9) million** for the years ended December 31, 2020, 2019, and 2018, respectively[100](index=100&type=chunk) [Regulation](index=17&type=section&id=Regulation) The company's U.S. insurance subsidiaries are subject to state regulations covering licensing, solvency, investments, and dividend restrictions - As a result of the redomestication, the United States is now the company's only governing and taxing nation, simplifying its regulatory structure[109](index=109&type=chunk) - The company's insurance subsidiaries are subject to state dividend limitations, which restrict payments to the parent company without prior regulatory approval, based on statutory accounting principles (SAP)[122](index=122&type=chunk) - The insurance subsidiaries reported capital and surplus levels above the prescribed risk-based capital requirements in their 2020 statutory filings[118](index=118&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A.%20RISK%20FACTORS) Key risks include reserve inadequacy, catastrophic events, rating downgrades, investment volatility, regulatory constraints, and controlling shareholder influence - A primary risk is that actual losses and loss adjustment expenses may exceed established reserves, which are based on estimates and could be inadequate due to unforeseen trends in claim severity, frequency, or legal developments[129](index=129&type=chunk)[131](index=131&type=chunk) - The COVID-19 pandemic presents risks of business decline, increased claims, and potential legislation requiring coverage for business interruption claims regardless of policy exclusions[133](index=133&type=chunk)[135](index=135&type=chunk) - The company's holding company structure and state insurance regulations limit its ability to receive dividends from its insurance subsidiaries, which are its primary source of funds for debt service and corporate expenses[166](index=166&type=chunk) - The Fox Paine Entities beneficially own shares representing approximately **83.9%** of the company's total voting power, giving them control over matters requiring shareholder approval and creating potential conflicts of interest[175](index=175&type=chunk) - As a publicly traded partnership, shareholders are subject to U.S. federal income tax on their share of the company's taxable income, regardless of whether they receive cash distributions, which may not be sufficient to cover their tax liability[183](index=183&type=chunk)[184](index=184&type=chunk) [Unresolved Staff Comments](index=33&type=section&id=Item%201B.%20UNRESOLVED%20STAFF%20COMMENTS) There are no unresolved staff comments from the SEC - None[206](index=206&type=chunk) [Properties](index=33&type=section&id=Item%202.%20PROPERTIES) The company leases office space for its principal executive offices and segment operations in the U.S. and Ireland - The company's principal executive offices and headquarters are located in leased office space in Bala Cynwyd, Pennsylvania[207](index=207&type=chunk) [Legal Proceedings](index=33&type=section&id=Item%203.%20LEGAL%20PROCEEDINGS) The company is involved in ordinary course legal proceedings, not expecting a material adverse financial impact - The company does not expect any currently pending legal proceedings to have a material adverse effect on its business, results of operations, cash flows, or financial condition[208](index=208&type=chunk) [Mine Safety Disclosures](index=34&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) No mine safety disclosures are required for the company - None[211](index=211&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=35&type=section&id=Item%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY,%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) GBLI Class A common shares trade on NASDAQ, with a **$0.25** quarterly dividend, dependent on subsidiary dividends - The company has a dividend/distribution program with an anticipated rate of **$0.25** per share per quarter (**$1.00** per share per year)[222](index=222&type=chunk) Five-Year Cumulative Total Return Comparison | Index | 12/31/15 | 12/31/16 | 12/31/17 | 12/31/18 | 12/31/19 | 12/31/20 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | GBLI | $100.0 | $131.7 | $144.8 | $124.8 | $102.1 | $98.5 | | NASDAQ Insurance Index | $100.0 | $115.6 | $119.3 | $109.2 | $138.3 | $139.6 | | NASDAQ Composite Index | $100.0 | $107.5 | $137.9 | $132.5 | $179.2 | $257.4 | [Selected Financial Data](index=37&type=section&id=Item%206.%20SELECTED%20FINANCIAL%20DATA) In 2020, the company reported a **$21.0 million net loss** and a **97.2% combined ratio**, with gross written premiums decreasing to **$606.6 million** Selected Consolidated Financial Data (2018-2020) | (In thousands, except per share data) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Operations Data** | | | | | Gross written premiums | $606,603 | $636,861 | $547,897 | | Net earned premiums | $567,699 | $525,262 | $467,775 | | Net income (loss) | $(21,006) | $70,015 | $(56,696) | | Diluted EPS | $(1.48) | $4.88 | $(4.02) | | **Operating Ratios** | | | | | Loss ratio | 59.2% | 52.5% | 71.5% | | Expense ratio | 38.0% | 39.7% | 40.8% | | Combined ratio | 97.2% | 92.2% | 112.3% | | **Financial Position (Year-End)** | | | | | Total assets | $1,904,908 | $2,075,885 | $1,960,266 | | Total shareholders' equity | $718,324 | $726,809 | $629,059 | | Book value per share | $49.62 | $50.82 | $44.21 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) The company reported a **$21.0 million net loss** in 2020, driven by investment losses, higher catastrophe claims, and redomestication fees, with a **97.2% combined ratio** [Results of Operations](index=49&type=section&id=Results%20of%20Operations) In 2020, the company reported a **$21.0 million net loss**, a **58.6% decline in underwriting income**, and a **97.2% combined ratio**, impacted by higher catastrophe losses Consolidated Results of Operations Summary (2019 vs. 2020) | (Dollars in thousands) | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | Gross written premiums | $606,603 | $636,861 | (4.8%) | | Net earned premiums | $567,699 | $525,262 | 8.1% | | Underwriting income | $17,929 | $43,273 | (58.6%) | | Net investment income | $28,392 | $42,052 | (32.5%) | | Net realized investment gains (losses) | $(14,662) | $35,342 | (141.5%) | | Net income (loss) | $(21,006) | $70,015 | (130.0%) | | **Combined Ratio** | **97.2%** | **92.2%** | **5.0 pts** | - Gross written premiums decreased by **4.8%** in 2020, mainly due to the reduction of catastrophe-exposed business in Specialty Property and Farm, Ranch & Stable, and the non-renewal of property catastrophe treaties in Reinsurance Operations[308](index=308&type=chunk) - The net premium retention ratio increased by **2.2 points** to **90.4%** in 2020, driven by the restructuring of catastrophe reinsurance treaties and a change in the mix of business[311](index=311&type=chunk)[312](index=312&type=chunk) - Corporate and other operating expenses increased by **122.4%** to **$42.0 million** in 2020, primarily due to **$10.0 million** in advisory fees and other costs related to the redomestication[379](index=379&type=chunk) [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity relies on regulated subsidiary dividends, with **$32.7 million** net cash from operations in 2020 and **$100 million** debt redeemed - The company's insurance subsidiaries are restricted by state law on the amount of dividends they can pay without regulatory approval; for 2021, the maximum ordinary dividend capacity from its main operating companies is approximately **$69.8 million** in aggregate[389](index=389&type=chunk)[390](index=390&type=chunk)[391](index=391&type=chunk)[392](index=392&type=chunk)[393](index=393&type=chunk)[394](index=394&type=chunk) - In August 2020, the company redeemed the entire outstanding **$100 million** principal amount of its 7.75% Subordinated Notes due 2045 and repaid all outstanding debt on its margin borrowing facility[410](index=410&type=chunk)[411](index=411&type=chunk) - Net cash provided by operating activities was **$32.7 million** in 2020, nearly flat compared to **$32.4 million** in 2019[399](index=399&type=chunk) - As of December 31, 2020, the company had future funding commitments of **$31.2 million** related to limited liability partnership investments[403](index=403&type=chunk)[430](index=430&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=71&type=section&id=Item%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces interest rate, credit, and equity price risks, with a 100 basis point rate increase potentially reducing fixed income value by **$50.3 million** Interest Rate Sensitivity of Fixed Income Portfolio (as of Dec 31, 2020) | Basis Point Change | Change in Market Value ($ thousands) | % Change | | :--- | :--- | :--- | | +200 | $(100,409) | (8.4%) | | +100 | $(50,285) | (4.2%) | | -100 | $44,678 | 3.8% | | -200 | $67,774 | 5.7% | Equity Price Risk Sensitivity (as of Dec 31, 2020) | Hypothetical Price Change | Change in Shareholders' Equity (%) | | :--- | :--- | | +20% | 1.7% | | +10% | 0.8% | | -10% | (0.8%) | | -20% | (1.7%) | - The company manages credit risk by investing primarily in high-quality debt instruments and mitigating exposure to reinsurers through collateral such as trusts and letters of credit[455](index=455&type=chunk)[458](index=458&type=chunk) [Financial Statements and Supplementary Data](index=74&type=section&id=Item%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents audited consolidated financial statements and notes, with an unqualified auditor's opinion, highlighting loss reserve valuation as a critical audit matter [Report of Independent Registered Public Accounting Firm](index=75&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP issued unqualified opinions on financial statements and internal controls, identifying loss reserve valuation as a critical audit matter - The independent auditor, Ernst & Young LLP, issued an unqualified opinion on both the consolidated financial statements and the effectiveness of internal control over financial reporting[472](index=472&type=chunk)[473](index=473&type=chunk) - The valuation of unpaid losses and loss adjustment expenses was identified as a Critical Audit Matter due to the significant judgment and complexity involved in estimating these reserves, particularly for long-tail lines of business[476](index=476&type=chunk)[479](index=479&type=chunk) [Consolidated Financial Statements](index=77&type=section&id=Consolidated%20Financial%20Statements) As of December 31, 2020, total assets were **$1.90 billion**, total liabilities **$1.19 billion**, and a **$21.0 million net loss** was reported for the year Key Financial Statement Figures (as of and for the year ended Dec 31, 2020) | Metric | Amount ($ thousands) | | :--- | :--- | | **Balance Sheet** | | | Total Investments | $1,387,194 | | Total Assets | $1,904,908 | | Unpaid Losses & Loss Adjustment Expenses | $662,811 | | Total Liabilities | $1,186,584 | | Total Shareholders' Equity | $718,324 | | **Statement of Operations** | | | Net Earned Premiums | $567,699 | | Total Revenues | $583,547 | | Net Loss | $(21,006) | | **Statement of Cash Flows** | | | Net Cash from Operating Activities | $32,670 | [Notes to Consolidated Financial Statements](index=82&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, the 2020 redomestication, the **$1.39 billion** investment portfolio, **$126.3 million** debt, and **$662.8 million** loss reserves - The company completed its redomestication from the Cayman Islands to the U.S. on August 28, 2020, resulting in Global Indemnity Group, LLC becoming the new publicly traded parent company[497](index=497&type=chunk) - The liability for unpaid losses and loss adjustment expenses decreased from **$680.0 million** in 2018 to **$630.2 million** in 2019, and then increased to **$662.8 million** in 2020; the company recognized favorable prior year reserve development of **$31.5 million** in 2020, **$32.8 million** in 2019, and **$28.8 million** in 2018[622](index=622&type=chunk)[623](index=623&type=chunk)[625](index=625&type=chunk) - As of December 31, 2020, the company had **$126.3 million** in outstanding debt, consisting of 7.875% Subordinated Notes due 2047, a significant reduction from **$296.6 million** at year-end 2019[674](index=674&type=chunk) - The company incurred management fees of **$2.6 million** payable to Fox Paine & Company, LLC in 2020, as well as a special **$10.0 million** advisory fee related to the redomestication[723](index=723&type=chunk)[728](index=728&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=142&type=section&id=Item%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) There are no reported changes in or disagreements with accountants on accounting and financial disclosure - None[810](index=810&type=chunk) [Controls and Procedures](index=142&type=section&id=Item%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and internal controls over financial reporting were effective as of December 31, 2020 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[810](index=810&type=chunk) - Management assessed internal control over financial reporting and concluded it was effective as of December 31, 2020, with no material weaknesses identified; the independent auditor, Ernst & Young LLP, concurred with this assessment[814](index=814&type=chunk)[815](index=815&type=chunk)[818](index=818&type=chunk) [Other Information](index=144&type=section&id=Item%209B.%20OTHER%20INFORMATION) No other information is reported for this item - None[826](index=826&type=chunk) PART III [Directors, Executive Officers, and Corporate Governance](index=145&type=section&id=Item%2010.%20DIRECTORS,%20EXECUTIVE%20OFFICERS,%20AND%20CORPORATE%20GOVERNANCE) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[828](index=828&type=chunk) [Executive Compensation](index=145&type=section&id=Item%2011.%20EXECUTIVE%20COMPENSATION) Executive compensation information is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[829](index=829&type=chunk) [Security Ownership of Certain Beneficial Owners and Management, and Related Stockholder Matters](index=145&type=section&id=Item%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT,%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Security ownership information is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[830](index=830&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=145&type=section&id=Item%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS,%20AND%20DIRECTOR%20INDEPENDENCE) Information on related party transactions and director independence is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[831](index=831&type=chunk) [Principal Accountant Fees and Services](index=145&type=section&id=Item%2014.%20PRINCIPAL%20ACCOUNTING%20FEES%20AND%20SERVICES) Principal accountant fees and services information is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[832](index=832&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=146&type=section&id=Item%2015.%20EXHIBITS,%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists financial statements, schedules, and exhibits, including governance documents, debt indentures, and executive certifications - This section lists all financial statements, schedules, and exhibits filed with the report, including governance documents, debt indentures, and executive certifications[836](index=836&type=chunk)[837](index=837&type=chunk) [Form 10-K Summary](index=148&type=section&id=Item%2016.%20FORM%2010-K%20SUMMARY) No Form 10-K summary is provided by the company - None[839](index=839&type=chunk)