Global Indemnity Group(US:GBLI)2024-05-08 19:53Financial Performance - Net income for Q1 2024 was $11.4 million, an increase of $8.9 million compared to Q1 2023[118]. - Net investment income increased by 21% to $14.5 million in Q1 2024 compared to $12.0 million in Q1 2023[118]. - Net income for the quarter ended March 31, 2024, was $11.4 million, up from $2.5 million in the same period of 2023[161]. - Income tax expense increased to $2.9 million for the quarter ended March 31, 2024, from $0.6 million in the same period of 2023, primarily due to higher taxable income[159]. Premiums and Underwriting - Net earned premiums decreased by 31.1% to $96.6 million in Q1 2024 from $140.1 million in Q1 2023, primarily due to the run-off of Non-Core business[118]. - Gross written premiums decreased by 24.0% to $93.5 million in Q1 2024 from $123.0 million in Q1 2023[126]. - The net premium retention ratio improved by 4.3 points to 98.5% in Q1 2024 compared to 94.2% in Q1 2023[127]. - The underwriting income for the Penn-America segment improved significantly to $5.635 million, a 281.3% increase from a loss of $3.108 million in the same quarter of 2023[135]. - The combined ratio for Q1 2024 was 94.9%, a significant improvement from 101.0% in Q1 2023[122]. Loss Ratios and Expenses - The current accident year loss ratio improved by 8.2 percentage points from 63.0% in Q1 2023 to 54.8% in Q1 2024[139]. - The total net losses and loss adjustment expenses for the Penn-America segment were $48.909 million, down 17.5% from $59.278 million in the previous year[135]. - The expense ratio for the Penn-America segment increased to 39.2% in Q1 2024 from 38.3% in Q1 2023, primarily due to a reduction in earned premiums[140]. - The property loss ratio decreased by 33.1 points to 33.6% for the quarter ended March 31, 2024, compared to 66.7% in the same period of 2023[150]. - The total net losses and loss adjustment expense ratio was 60.1% for the quarter ended March 31, 2024, compared to 58.1% in the same period of 2023[152]. Non-Core Operations - The Non-Core Operations segment reported a significant decline in gross written premiums, dropping to $(560,000) from $27.573 million, a decrease of 102.0%[143]. - Total revenues for the Non-Core Operations segment fell by 85.0% to $7.453 million in Q1 2024, down from $49.547 million in Q1 2023[143]. - The current accident year loss ratio for the Non-Core Operations segment improved by 1.9 percentage points from 62.5% in Q1 2023 to 60.6% in Q1 2024[147]. - The expense ratio for the Non-Core Operations segment increased by 7.0 percentage points to 44.9% in Q1 2024, attributed to lower earned premiums from exiting various lines of business[148]. Investments - Total investments reached $1.4 billion as of March 31, 2024, a 2% increase from December 31, 2023[118]. - The company held asset-backed and mortgage-backed securities with a market value of $335.0 million as of March 31, 2024[156]. - The gross investment income rose by 21.3% to $15.0 million for the quarter ended March 31, 2024, compared to $12.4 million in the same period of 2023[154]. - The Company’s investment grade fixed income portfolio maintains a high quality with an AA- average rating and a duration of 1.1 years[184]. Cash Flow and Shareholder Returns - Net cash provided by operating activities was $22.7 million for the quarter ended March 31, 2024, an increase of approximately $17.4 million from $5.3 million in the same period of 2023[173]. - Dividends paid per share increased by 40% to $0.35 in Q1 2024 compared to Q1 2023[118]. - Shareholders' equity rose by 1.7% to $659.5 million at March 31, 2024[118]. Market Risks - The Company’s primary market risks include interest rate risk, credit risks associated with investments in fixed maturities, equity price risk associated with investments in equity securities, and foreign exchange risk[183]. - There have been no material changes to the Company's market risk since December 31, 2023[184].