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Global Indemnity Group(GBLI) - 2024 Q2 - Quarterly Report
GBLIGlobal Indemnity Group(GBLI)2024-08-08 18:24
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Financial Performance - Gross written premiums for Q2 2024 were 100,706,000,adecreaseof8.3100,706,000, 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,down29.6189,393,000, down 29.6% from 269,228,000 in the same period of 2023[5] - Net income for Q2 2024 was 10,093,000,anincreaseof8.110,093,000, an increase of 8.1% compared to 9,337,000 in Q2 2023[5] - Total revenues for Q2 2024 were 108,687,000,adecreaseof23.4108,687,000, a decrease of 23.4% from 141,893,000 in Q2 2023[5] - Comprehensive income for Q2 2024 was 12,037,000,significantlyhigherthan12,037,000, significantly higher than 6,781,000 in Q2 2023[6] - Net income for the six months ended June 30, 2024, was 21,459,000,comparedto21,459,000, 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,anincreaseof8.210,093,000, 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,upfrom93,171,000, 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 15,311,000inQ22024from15,311,000 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,anincreasefrom29,831,000, 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,anincreasefrom15,823,000, 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,representingareturnof1.317,903,000, 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 626,408,000attheendofJune2023,reflectingagrowthof6.6626,408,000 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 0.25inQ22023,representinga400.25 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 4.752milliondeclaredonMarch6,2024[80]−Thecompanydeclareddistributionsof4.752 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 6.764million[81]LossManagement−Thecompanyexperiencedanetlossandlossadjustmentexpenseof6.764 million[81] Loss Management - The company experienced a net loss and loss adjustment expense of 53,662,000 in Q2 2024, down from 78,082,000inQ22023,indicatingimprovedlossmanagement[5]−Thecompanyreportedincurredlossesandlossadjustmentexpensesof78,082,000 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 78.082millionforthesamequarterin2023,indicatingadecreaseof31.278.082 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 793.018millioninthepreviousyear[70]RestructuringandOperationalChanges−Thecompanyincurredtotalrestructuringcostsof793.018 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 0.1millionasofDecember31,2023[15]−Thecompanyrestructureditsinsuranceoperationsintotwosegments:Penn−AmericaandNon−CoreOperations,toenhancefocusoncoreproducts[98]−Therestructuringisexpectedtoimprovethecompany′soverallfinancialperformanceandmarketpositioning[98]InvestmentPortfolioandValuation−AsofJune30,2024,thetotalamortizedcostoffixedmaturitieswas0.1 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 1,340,046thousand,reflectingagrossunrealizedlossof1,340,046 thousand, reflecting a gross unrealized loss of 23,744 thousand[17] - The company reported a net realized investment loss of 1,052,000forthesixmonthsendedJune30,2024,comparedtoagainof1,052,000 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 699,464thousandwithgrossunrealizedlossesof699,464 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 1,322,092thousandandanestimatedfairvalueof1,322,092 thousand and an estimated fair value of 1,293,793 thousand, resulting in gross unrealized losses of 29,879thousand[22]Taxation−ThetotalincometaxexpenseforthequarterendedJune30,2024,was29,879 thousand[22] Taxation - The total income tax expense for the quarter ended June 30, 2024, was 2.581 million, compared to 2.371millionforthesamequarterin2023,representinganincreaseof8.82.371 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 2.944millionor19.92.944 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 101millionremainingasofJune30,2024[75]−DuringthesixmonthsendedJune30,2024,thecompanyrepurchased16,527sharesatanaveragepriceof101 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]