Global Indemnity Group(GBLI) - 2025 Q2 - Quarterly Results

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