Global Indemnity Group LLC
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
GBLI$21.75+3.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0000950170-24-093715
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0000950170-24-123335
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 129 previous paragraphs and 132 current paragraphs.
71 unchanged; 45 reworded; 15 added; 13 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 18 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
Results of Operations for Nine Months
Current report
Penn-America gross written premiums increased 7.4% to $297.8 million.
Current report
Operating cash flows were $52.3 million in 2024 compared to $36.8 million for the same period in 2023.
Current report
The Company's net income was $12.8 million and $7.7 million during the quarters ended September 30, 2024 and 2023, respectively, and $34.2 million and $19.5 million during the nine months ended September 30, 2024 and 2023, respectively.
Current report
The Company generated underwriting income of $5.8 million for the quarter ended September 30, 2024 compared to $0.7 million for the same period in 2023 and generated underwriting income of $14.6 million for the nine months ended September 30, 2024 compared to $3.9 million for the same period in 2023. This increase in underwriting income is driven by strong underwriting results within the Company's Penn-America segment due to growth in gross written premiums and improved current accident year combined ratios compared to the same period in 2023. Penn-America’s gross written premiums increased 18.7% for the quarter and 7.4% for the nine months ended September 30, 2024. Penn-America’s accident year combined ratio improved to 92.1% for the quarter compared to 96.3% in the same period in 2023 and improved to 93.9% for the nine months ended September 30, 2024 compared to 96.7% in same period in 2023.
Current report
Gross written premiums increased by 0.9% for the quarter ended September 30, 2024 as compared to the same period in 2023. Penn-America’s growth of 18.7% driven by its Wholesale Commercial, InsurTech, and Assumed Reinsurance divisions more than offset the decline in premiums resulting from its Non-Core segment.
Current report
Gross written premiums decreased by 11.5% for the nine months ended September 30, 2024 as compared to the same period in 2023. Penn-America’s growth of 7.4% driven by its Wholesale Commerical, InsurTech and Assumed Reinsurance divisions partially offset the decline in premiums resulting from its Non-Core segment.
Current report
The Company's net premium retention increased 0.7 points to 97.4% for the quarter ended September 30, 2024 from 96.7% for the quarter ended September 30, 2023 and increased 2.0 points to 97.6% for the nine months ended September 30, 2024 from 95.6% for the nine months ended September 30, 2023 primarily due to the termination of two quota share agreements and lower cost on the Company's catastrophe reinsurance treaty.
Current report
Net earned premiums within the Penn-America segment increased by 12.6% for the quarter ended September 30, 2024 as compared to the same period in 2023 primarily due to continued premium growth in Penn-America's Wholesale Commercial, InsurTech, and Assumed Reinsurance divisions. Property net earned premiums were $43.0 million and $33.7 million for the quarters ended September 30, 2024 and 2023, respectively. Casualty net earned premiums were $50.9 million and $49.7 million for the quarters ended September 30, 2024 and 2023, respectively.
Current report
The calendar year loss ratio for the quarter ended September 30, 2024 was 54.7% (includes an increase of $9 thousand related to prior accident years) compared to 67.1% (includes an increase of $7.8 million, or 9.3 percentage points related to prior accident years) for the quarter ended September 30, 2023. Please see Note 7 of the notes to the consolidated financial statements in Item 1 of Part I of this report for further discussion on prior accident year development.
Current report
The current accident year loss ratio improved by 3.1 points to 54.7% for the quarter ended September 30, 2024 compared to 57.8% for the quarter ended September 30, 2023. The current accident year losses and loss ratio is summarized as follows:
Current report
The current accident year loss ratio improved by 3.1 points to 55.7% for the nine months ended September 30, 2024 from 58.8% for the nine months ended September 30, 2023. The current accident year losses and loss ratio is summarized as follows:
Current report
The current accident year casualty loss ratio increased by 0.1 points during the nine months ended September 30, 2024 as compared to the same period in 2023.
Current report
The calendar year loss ratio for the quarter and nine months ended September 30, 2024 was 71.1% (includes a decrease of less than $0.1 million, or 3.0 percentage points related to prior accident years), and was 65.1% (includes an increase of $0.3 million, or 2.5 percentage points related to prior accident years), respectively. The calendar year loss ratio for the quarter and nine months ended September 30, 2023 was 32.2% (includes a decrease of $7.8 million, or 27.7 percentage points related to prior accident years), and was 55.6% (includes a decrease of $10.9 million, or 9.5 percentage points related to prior accident years), respectively. Please see Note 7 of the notes to the consolidated financial statements in Item 1 of Part I of this report for further discussion on prior accident year development.
Current report
The current accident year loss ratio increased by 14.2 points from 59.9% for the quarter ended September 30, 2023 to 74.1% for the quarter ended September 30, 2024 and improved by 2.5 points from 65.1% for the nine months ended September 30, 2023 to 62.6% for the nine months ended September 30, 2024. The current accident year losses and loss ratio is summarized as follows:
Removed paragraphs (13)
Previous report
Results of Operations for Six Months
Previous report
Net earned premiums of $189.4 million (Property: 42% and Casualty: 58%) in 2024 is lower than net earned premiums of $269.2 million (Property 32% and Casualty 68%) in 2023 primarily due to the run off of Non-Core business.
Previous report
Operating cash flows was $36.9 million in 2024 compared to $14.2 million for the same period in 2023.
Previous report
The Company realized net income of $10.1 million and $9.3 million during the quarters ended June 30, 2024 and 2023, respectively, and realized net income of $21.5 million and $11.8 million during the six months ended June 30, 2024 and 2023, respectively.
Previous report
The Company generated underwriting income of $8.8 million for the six months ended June 30, 2024 compared to underwriting income of $3.2 million for the same period in 2023. This increase in underwriting income is driven by strong underwriting results within the Company's Penn-America segment mainly due to a 3.0 point improvement in its current accident year loss ratio. Underwriting income for the quarter was $3.5 million in 2024 compared to $4.3 million in 2023. This decrease was predominantly due to a decline in earned premium volume related to Non-Core Operations. Overall, the combined ratio for the quarter improved to 96.6 in 2024 from 96.9 in 2023.
Previous report
The net premium retention for the quarter and six months ended June 30, 2024 increased by 0.8 points and 2.6 points, respectively, as compared to the same periods in 2023. Penn-America's retention increased by 0.7 points and 1.7 points for the quarter and six months ended June 30, 2024, respectively, primarily due to the termination of two quota share agreements and lower cost on the Company's catastrophe reinsurance treaty. Cessions on Non-Core Operations were significantly reduced due to sale of manufactured home and dwelling business in 2021 and the Farm, Ranch and Stable business in 2022. See Note 2 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2023 Annual Report on Form 10-K for additional information on the sale of renewal rights related to the Company’s manufactured and dwelling homes business and the Company's Farm, Ranch & Stable business.
Previous report
The current accident year loss ratio increased by 2.1 points from 55.6% for the quarter ended June 30, 2023 to 57.7% for the quarter ended June 30, 2024 and improved by 3.0 points from 59.3% for the six months ended June 30, 2023 to 56.3% for the six months ended June 30, 2024. The current accident year losses and loss ratio is summarized as follows:
Previous report
The current accident year casualty loss ratio increased by 2.0 points during the six months ended June 30, 2024 as compared to the same period in 2023 due to higher claims severity in the first six months compared to last year.
Previous report
NM - not meaningful
Previous report
The calendar year loss ratio for the quarter and six months ended June 30, 2024 was 73.3% (includes an increase of $0.4 million, or 11.1 percentage points), and was 64.3% (includes an increase of $0.3 million, or 3.2 percentage points), respectively, related to reserve development on prior accident years. The calendar year loss ratio for the quarter and six months ended June 30, 2023 was 70.3% (includes a decrease of $0.8 million, or 2.3 percentage points), and was 63.3% (includes a decrease of $3.0 million, or 3.5 percentage points), respectively, related to reserve development on prior accident years. Please see Note 7 of the notes to the consolidated financial statements in Item 1 of Part I of this report for further discussion on prior accident year development.
Previous report
The current accident year loss ratio improved by 10.4 points from 72.6% for the quarter ended June 30, 2023 to 62.2 for the quarter ended June 30, 2024 and improved by 5.7 points from 66.8% for the six months ended June 30, 2023 to 61.1% for the six months ended June 30, 2024. The current accident year losses and loss ratio is summarized as follows:
Previous report
The current accident year casualty loss ratio improved by 9.4 points and 4.4 points during the quarter and six months ended June 30, 2024, respectively, as compared to the same periods in 2023 reflecting mix of business changes.
Previous report
NM - not meaningful
Reworded paragraphs (45)
Previous wording
Net income of $21.5 million, or $1.55 per share diluted, in 2024 is $9.6 million higher than the same period in 2023.
Current wording
Net income of $34.2 million, or $2.48 per share diluted, in 2024 is $14.7 million higher than the same period in 2023.
Previous wording
Underwriting income was $8.8 million in 2024 which is higher than $3.2 million in underwriting income for the same period in 2023 due to strong underwriting results for the Company's Penn-America segment.
Current wording
Underwriting income was $14.6 million in 2024 compared to $3.9 million for the same period in 2023 due to strong underwriting results for the Company's Penn-America segment.
Previous wording
Penn-America accident year combined ratio was 94.8% in 2024 compared to 96.8% for the same period in 2023. Consolidated accident year combined ratio was 95.8% in 2024 compared to 99.1% for the same period in 2023.
Current wording
Penn-America accident year combined ratio was 93.9% in 2024 compared to 96.7% for the same period in 2023. Consolidated accident year combined ratio was 95.0% in 2024 compared to 98.9% for the same period in 2023.
Previous wording
Net investment income of $29.8 million in 2024 was 18.3% better than the same period in 2023. Book yield on the fixed maturities portfolio increased to 4.5% at June 30, 2024 from 3.8% at June 30, 2023.
Current wording
Net investment income of $46.3 million in 2024 was 17.5% better than the same period in 2023. Book yield on the fixed maturities portfolio increased to 4.6% at September 30, 2024 from 4.0% at September 30, 2023.
Previous wording
2024 Second Quarter Consolidated Financial Condition
Current wording
2024 Third Quarter Consolidated Financial Condition
Previous wording
Total cash and investments of $1.4 billion at June 30, 2024 increased 3.2% compared to December 31, 2023; fixed maturities and cash comprise 97% of total investments.
Current wording
Total cash and investments of $1.5 billion at September 30, 2024 increased 5.6% compared to December 31, 2023; fixed maturities and cash comprise 97% of total investments.
Previous wording
Total assets of $1.7 billion at June 30, 2024 and December 31, 2023.
Current wording
Total assets of $1.8 billion at September 30, 2024 compared to $1.7 billion at December 31, 2023.
Previous wording
Since the Company's initial public offering in 2003, the total capital returned to shareholders was $619.3 million, comprising $522.2 million of share repurchases and $97.1 million of distributions / dividends. This includes $9.8 million of distributions during 2024.
Current wording
Since the Company's initial public offering in 2003, the total capital returned to shareholders was $624.2 million, comprising $522.2 million of share repurchases and $101.9 million of distributions / dividends. This includes $14.7 million of distributions during 2024.
Previous wording
Shareholders' equity increased 2.9% from December 31, 2023 to $667.5 million at June 30, 2024.
Current wording
Shareholders' equity increased 5.9% from December 31, 2023 to $686.7 million at September 30, 2024.
Previous wording
Dividends paid per share increased 40% to $0.70 in 2024 compared to the same period in 2023.
Current wording
Dividends paid per share increased 40% to $1.05 in 2024 compared to the same period in 2023.
Previous wording
Book value per common share increased 2.2% from December 31, 2023 to $48.56 at June 30, 2024.
Current wording
Book value per common share increased 4.9% from December 31, 2023 to $49.88 at September 30, 2024.
Previous wording
Net investment income increased by $2.1 million and $4.6 million during the quarter and six months ended June 30, 2024 as compared to the same periods in 2023. This increase in net investment income was primarily due to strategies employed by the Company to take advantage of rising interest rates which resulted in a 18% increase in book yield on the fixed maturities portfolio to 4.5% at June 30, 2024 from 3.8% at June 30, 2023. The weighted average duration of the fixed maturities portfolio was 1.0 years as of June 30, 2024.
Current wording
Net investment income increased by $2.3 million and $6.9 million during the quarter and nine months ended September 30, 2024 as compared to the same periods in 2023. This increase in net investment income was primarily due to strategies employed by the Company to take advantage of rising interest rates which resulted in a 15% increase in book yield on the fixed maturities portfolio to 4.6% at September 30, 2024 from 4.0% at September 30, 2023. The weighted average duration of the fixed maturities portfolio was 0.8 years as of September 30, 2024.
Previous wording
The following table summarizes the Company’s results for the quarters and six months ended June 30, 2024 and 2023:
Current wording
The following table summarizes the Company’s results for the quarters and nine months ended September 30, 2024 and 2023:
Previous wording
Gross written premiums decreased by 8.5% and 16.7% for the quarter and six months ended June 30, 2024 as compared to same periods in 2023. The decrease in gross written premiums is mainly due to a reduction in premiums within Non-Core Operations for lines of business that have been de-emphasized or no longer written. In addition, within Penn-America, the gross written premiums for Programs decreased primarily due to actions taken in 2023 to improve underwriting results through increased rates and form changes. These reductions in premiums were partially offset by continued growth of 10.5% and 8.8% in aggregate for Penn-America's Wholesale Commercial, InsurTech, and Assumed Reinsurance divisions during the quarter and six months ended June 30, 2024, respectively. The growth in Wholesale Commercial and InsurTech is driven by premium rate increases, new agency appointments, organic growth of existing agents, and new products. The growth in Assumed Reinsurance is primarily due to new treaties entered into during 2023 and 2024 and increased participation or organic growth from existing treaties.
Current wording
In aggregate, Penn-America's Wholesale Commercial, InsurTech, and Assumed Reinsurance divisions grew by 23.3% for the quarter and 13.5% for the nine months ended September 30, 2024 as compared to the same periods in 2023. The growth in Wholesale Commercial and InsurTech is driven by premium rate increases, new agency appointments, organic growth of existing agents, and new products. The growth in Assumed Reinsurance is primarily due to new treaties entered into during 2023 and 2024 and increased participation or organic growth from existing treaties.
Previous wording
The ratio of net written premiums to gross written premiums is referred to as the Company’s net premium retention. The Company’s net premium retention is summarized by segments as follows:
Current wording
The ratio of net written premiums to gross written premiums is referred to as the Company’s net premium retention.
Previous wording
Net earned premiums within the Penn-America segment decreased by 3.6% and 2.6% for the quarter and six months ended June 30, 2024, respectively, as compared to the same periods in 2023 primarily due to the reduction in premiums written for Programs as a result of underwriting actions taken in 2023 to improve underwriting profitability partially offset by continued premium growth in Penn-America's InsurTech and Assumed Reinsurance divisions. Property net earned premiums were $39.1 million and $35.4 million for the quarters ended June 30, 2024 and 2023, respectively, and $79.0 million and $73.0 million for the six months ended June 30, 2024 and 2023, respectively. Casualty net earned premiums were $50.2 million and $57.2 million for the quarters ended June 30, 2024 and 2023, respectively, and $99.5 million and $110.3 million for the six months ended June 30, 2024 and 2023, respectively.
Current wording
Net earned premiums within the Penn-America segment increased by 2.1% for the nine months ended September 30, 2024 as compared to the same period in 2023. The premium growth in Penn-America's Wholesale Commercial, InsurTech, and Assumed Reinsurance divisions was partially offset by a reduction in premiums written for Specialty Products as a result of underwriting actions taken in 2023 to improve underwriting profitability. Property net earned premiums were $122.1 million and $106.8 million for the nine months ended September 30, 2024 and 2023, respectively. Casualty net earned premiums were $150.4 million and $160.0 million for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
Net earned premiums within the Non-Core Operations segment decreased by 90.5% and 87.3% for the quarter and six months ended June 30, 2024, respectively, as compared to the same periods in 2023 primarily due to the non-renewal of a casualty treaty as well as a reduction in earned premiums due to the sale of Farm, Ranch & Stable renewal rights on August 8, 2022. There were no property earned premiums for the quarter and six months ended June 30, 2024. Property earned premiums were $4.4 million and $13.2 million for the quarter and six months ended June 30, 2023, respectively. Casualty net earned premiums were $3.6 million and $32.1 million for the quarters ended June 30, 2024 and 2023, respectively, and $10.9 million and $72.8 million for the six months ended June 30, 2024 and 2023, respectively.
Current wording
Net earned premiums within the Non-Core Operations segment decreased by 94.9% and 89.2% for the quarter and nine months ended September 30, 2024, respectively, as compared to the same periods in 2023 primarily due to the non-renewal of a casualty treaty and a reduction in earned premiums due to the sale of Farm, Ranch & Stable renewal rights on August 8, 2022. There were no property earned premiums for the quarter and nine months ended September 30, 2024. Property earned premiums were $0.9 million and $14.1 million for the quarter and nine months ended September 30, 2023, respectively. Casualty net earned premiums were $1.5 million and $27.3 million for the quarters ended September 30, 2024 and 2023, respectively, and $12.4 million and $100.1 million for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
Amounts recorded for unpaid losses and loss adjustment expenses represent management’s best estimate at June 30, 2024. Management’s best estimate is as of a particular point in time and is based upon known facts, the Company’s actuarial analyses, current law, and the Company’s judgment. This resulted in carried gross and net reserves of $844.2 million and $773.8 million, respectively, as of June 30, 2024. A breakout of the Company’s gross and net reserves, as of June 30, 2024, is as follows:
Current wording
Amounts recorded for unpaid losses and loss adjustment expenses represent management’s best estimate at September 30, 2024. Management’s best estimate is as of a particular point in time and is based upon known facts, the Company’s actuarial analyses, current law, and the Company’s judgment. This resulted in carried gross and net reserves of $840.2 million and $769.3 million, respectively, as of September 30, 2024. A breakout of the Company’s gross and net reserves, as of September 30, 2024, is as follows:
Previous wording
Each reserve category has an implicit frequency and severity for each accident year as a result of the various assumptions made. If the actual levels of loss frequency and severity are higher or lower than expected, the ultimate losses will be different than management’s best estimate. For most of its reserve categories, the Company believes that frequency can be predicted with greater accuracy than severity. Therefore, the Company believes management’s best estimate is more likely influenced by changes in severity than frequency. The following table, which the Company believes reflects a reasonable range of variability around its best estimate based on historical loss experience and management’s judgment, reflects the impact of changes (which could be favorable or unfavorable) in frequency and severity on the Company’s current accident year net loss estimate of $107.1 million for claims occurring during the six months ended June 30, 2024:
Current wording
Each reserve category has an implicit frequency and severity for each accident year as a result of the various assumptions made. If the actual levels of loss frequency and severity are higher or lower than expected, the ultimate losses will be different than management’s best estimate. For most of its reserve categories, the Company believes that frequency can be predicted with greater accuracy than severity. Therefore, the Company believes management’s best estimate is more likely influenced by changes in severity than frequency. The following table, which the Company believes reflects a reasonable range of variability around its best estimate based on historical loss experience and management’s judgment, reflects the impact of changes (which could be favorable or unfavorable) in frequency and severity on the Company’s current accident year net loss estimate of $159.6 million for claims occurring during the nine months ended September 30, 2024:
Previous wording
The Company’s net reserves for losses and loss adjustment expenses of $773.8 million as of June 30, 2024 relate to multiple accident years. Therefore, the impact of changes in frequency and severity for more than one accident year could be higher or lower than the amounts reflected above.
Current wording
The Company’s net reserves for losses and loss adjustment expenses of $769.3 million as of September 30, 2024 relate to multiple accident years. Therefore, the impact of changes in frequency and severity for more than one accident year could be higher or lower than the amounts reflected above.
Previous wording
The components of income from the Company’s Penn-America segment and corresponding underwriting ratios are as follows:
Current wording
The components of income (loss) from the Company’s Penn-America segment and corresponding underwriting ratios are as follows:
Previous wording
Other income was $0.3 million for each of the quarters ended June 30, 2024 and 2023 and $0.7 million and $0.5 million for six months ended June 30, 2024 and 2023, respectively. Other income is primarily comprised of fee income.
Current wording
Other income was $0.3 million for each of the quarters ended September 30, 2024 and 2023 and $1.0 million and $0.8 million for nine months ended September 30, 2024 and 2023, respectively. Other income is primarily comprised of fee income.
Previous wording
The current accident year non-catastrophe property loss ratio increased by 1.7 points during the quarter ended June 30, 2024 as compared to the same period in 2023 reflecting higher claims severity in the calendar quarter compared to last year.
Current wording
The current accident year non-catastrophe property loss ratio increased by 7.0 points during the quarter ended September 30, 2024 as compared to the same period in 2023 reflecting higher claims severity in the calendar quarter compared to last year.
Previous wording
The current accident year catastrophe loss ratio improved by 2.5 points during the quarter ended June 30, 2024 as compared to the same period in 2023 recognizing lower claims frequency in the calendar quarter compared to last year.
Current wording
The current accident year catastrophe loss ratio improved by 7.2 points during the quarter ended September 30, 2024 as compared to the same period in 2023 recognizing lower claims frequency in the calendar quarter compared to last year.
Previous wording
The current accident year casualty loss ratio increased by 4.3 points during the quarter ended June 30, 2024 as compared to the same period in 2023 primarily due to higher claims severity in the calendar quarter compared to last year.
Current wording
The current accident year casualty loss ratio improved by 4.3 points during the quarter ended September 30, 2024 as compared to the same period in 2023 mainly reflecting high case incurred emergence in the habitational class of business which led to a higher selected loss ratio in the third quarter of 2023.
Previous wording
The calendar year loss ratio for the quarter and six months ended June 30, 2024 was 57.2% (includes a decrease of $0.5 million, or 0.5 percentage points), and was 56.0% (includes a decrease of $0.4 million, or 0.3 percentage points), respectively, related to reserve development on prior accident years. The calendar year loss ratio for the quarter and six months ended June 30, 2023 was 56.6% (includes an increase of $0.9 million, or 1.0 percentage points), and was 60.9% (includes an increase of $3.1 million, or 1.6 percentage points), respectively, related to reserve development on prior accident years. Please see Note 7 of the notes to the consolidated financial statements in Item 1 of Part I of this report for further discussion on prior accident year development.
Current wording
The calendar year loss ratio for the nine months ended September 30, 2024 was 55.6% (includes a decrease of $0.4 million, or 0.1 percentage points related to prior accident years) compared to 62.9% (includes an increase of $10.9 million, or 4.1 percentage points related to prior accident years). Please see Note 7 of the notes to the consolidated financial statements in Item 1 of Part I of this report for further discussion on prior accident year development.
Previous wording
The current accident year non-catastrophe property loss ratio improved by 8.4 points during the six months ended June 30, 2024 as compared to the same period in 2023 reflecting lower claims frequency and severity in the first six months compared to last year.
Current wording
The current accident year non-catastrophe property loss ratio improved by 3.6 points during the nine months ended September 30, 2024 as compared to the same period in 2023 reflecting lower claims severity in the first nine months compared to last year.
Previous wording
The current accident year catastrophe loss ratio improved by 1.5 points during the six months ended June 30, 2024 as compared to the same period in 2023 recognizing lower claims frequency in the first six months compared to last year.
Current wording
The current accident year catastrophe loss ratio improved by 3.4 points during the nine months ended September 30, 2024 as compared to the same period in 2023 recognizing lower claims frequency in the first nine months compared to last year.
Previous wording
The expense ratio for the Company’s Penn-America segment increased by 0.9 points from 37.1% for the quarter ended June 30, 2023 to 38.0% for the quarter ended June 30, 2024 and increased by 0.9 points from 37.7% for the six months ended June 30, 2023 to 38.6% for the six months ended June 30, 2024. The increase in the expense ratio is predominantly due to a reduction of earned premiums in 2024 as well as a one time recovery of expenses related to employee medical benefits in 2023 which did not repeat.
Current wording
The expense ratio for the Company’s Penn-America segment improved by 0.7 points from 38.6% for the quarter ended September 30, 2023 to 37.9% for the quarter ended September 30, 2024 and increased by 0.3 points from 38.0% for the nine months ended September 30, 2023 to 38.3% for the nine months ended September 30, 2024.
Previous wording
The Company recognized income of less than $0.1 million for each of the quarters ended June 30, 2024 and 2023 and income of less than $0.1 million and $0.1 million for the six months ended June 30, 2024 and 2023, respectively. Other income is primarily comprised of fee income net of bank fees.
Current wording
The Company recognized income of less than $0.1 million for each of the quarters ended September 30, 2024 and 2023 and income of $0.1 million for each of the nine months ended September 30, 2024 and 2023. Other income is primarily comprised of fee income net of bank fees.
Previous wording
The expense ratio for the Company’s Non-Core Operations increased by 24.9 points from 34.9% for the quarter ended June 30, 2023 to 59.8% for the quarter ended June 30, 2024 and increased by 13.0 points from 36.6% for the six months ended June 30, 2023 to 49.6% for the six months ended June 30, 2024 primarily due to lower earned premiums as a result of exiting various lines of business.
Current wording
The expense ratio for the Company’s Non-Core Operations increased by 84.9 points from 49.6% for the quarter ended September 30, 2023 to 134.5% for the quarter ended September 30, 2024 and increased by 19.6 points from 39.8% for the nine months ended September 30, 2023 to 59.4% for the nine months ended September 30, 2024 primarily due to lower earned premiums as a result of exiting various lines of business.
Previous wording
The Company’s fixed income portfolio, excluding cash, continues to maintain high quality with an AA- average rating and a duration of 1.0 years.
Current wording
The Company’s fixed income portfolio, excluding cash, continues to maintain high quality with an AA- average rating and a duration of 0.8 years.
Previous wording
Net investment income increased by 15.9% and 18.3% for the quarter and six months ended June 30, 2024, respectively, as compared to the same periods in 2023. This increase in net investment income was primarily due to strategies employed by the Company to take advantage of rising interest rates which resulted in a 18% increase in book yield on the fixed maturities portfolio to 4.5% at June 30, 2024 from 3.8% at June 30, 2023.
Current wording
Net investment income increased by 16.1% and 17.5% for the quarter and nine months ended September 30, 2024, respectively, as compared to the same periods in 2023. This increase in net investment income was primarily due to strategies employed by the Company to take advantage of rising interest rates which resulted in a 15% increase in book yield on the fixed maturities portfolio to 4.6% at September 30, 2024 from 4.0% at September 30, 2023.
Previous wording
At June 30, 2024, the Company held asset-backed, mortgage-backed, commercial mortgage-backed and collateralized mortgage obligations with a market value of $303.7 million. Excluding the asset-backed, mortgage-backed, commercial mortgage-backed and collateralized mortgage obligations, the average duration of the Company’s fixed maturities portfolio was 0.8 years as of June 30, 2024, compared with 1.2 years as of June 30, 2023. Changes in interest rates can cause principal payments on certain investments to extend or shorten which can impact duration. The Company’s embedded book yield on its fixed maturities, not including cash, was 4.5% as of June 30, 2024, compared to 3.8% as of June 30, 2023. The embedded book yield on the $19.4 million of taxable municipal bonds in the Company’s portfolio was 2.9% at June 30, 2024, compared to an embedded book yield of 3.0% on the Company’s taxable municipal bonds of $30.6 million at June 30, 2023.
Current wording
At September 30, 2024, the Company held asset-backed, mortgage-backed, commercial mortgage-backed and collateralized mortgage obligations with a market value of $279.4 million. Excluding the asset-backed, mortgage-backed, commercial mortgage-backed and collateralized mortgage obligations, the average duration of the Company’s fixed maturities portfolio was 0.6 years as of September 30, 2024, compared with 1.0 years as of September 30, 2023. Changes in interest rates can cause principal payments on certain investments to extend or shorten which can impact duration. The Company’s embedded book yield on its fixed maturities, not including cash, was 4.6% as of September 30, 2024, compared to 4.0% as of September 30, 2023. The embedded book yield on the $17.2 million of taxable municipal bonds in the Company’s portfolio was 2.8% at September 30, 2024, compared to an embedded book yield of 3.0% on the Company’s taxable municipal bonds of $26.2 million at September 30, 2023.
Previous wording
The components of net realized investment gains (losses) for the quarters and six months ended June 30, 2024 and 2023 were as follows:
Current wording
The components of net realized investment gains (losses) for the quarters and nine months ended September 30, 2024 and 2023 were as follows:
Previous wording
See Note 3 of the notes to the consolidated financial statements in Item 1 of Part I of this report for an analysis of total investment return on a pre-tax basis for the quarters and six months ended June 30, 2024 and 2023.
Current wording
See Note 3 of the notes to the consolidated financial statements in Item 1 of Part I of this report for an analysis of total investment return on a pre-tax basis for the quarters and nine months ended September 30, 2024 and 2023.
Previous wording
Corporate and other operating expenses consist of outside legal fees, other professional fees, directors’ fees, management fees and advisory fees, salaries and benefits for holding company personnel, development costs for new products, impairment losses, and taxes incurred which are not directly related to operations. Corporate and other operating expenses were $6.4 million and $5.0 million during the quarters ended June 30, 2024 and 2023, respectively, and $12.7 million and $11.4 million during the six months ended June 30, 2024 and 2023, respectively. This increase was primarily due to an increase in professional fees.
Current wording
Corporate and other operating expenses consist of outside legal fees, other professional fees, directors’ fees, management fees and advisory fees, and salaries and benefits for holding company personnel. Corporate and other operating expenses were $5.9 million and $5.3 million during the quarters ended September 30, 2024 and 2023, respectively, and $18.7 million and $16.6 million during the nine months ended September 30, 2024 and 2023, respectively. The increase in corporate and other operating expenses was primarily due to an increase in professional fees.
Previous wording
Income tax expense was $2.6 million and $2.4 million for the quarters ended June 30, 2024 and 2023, respectively, and $5.5 million and $2.9 million for the six months ended June 30, 2024 and 2023, respectively. The increase in income tax expense is primarily due to higher taxable income during the quarter and six months ended June 30, 2024 as compared to the same periods in 2023.
Current wording
Income tax expense was $3.1 million and $1.8 million for the quarters ended September 30, 2024 and 2023, respectively, and $8.6 million and $4.7 million for the nine months ended September 30, 2024 and 2023, respectively. The increase in income tax expense is primarily due to higher taxable income during the quarter and nine months ended September 30, 2024 as compared to the same periods in 2023.
Previous wording
The factors described above resulted in net income of $10.1 million and $9.3 million for the quarters ended June 30, 2024 and 2023, respectively, and net income of $21.5 million and $11.8 million for the six months ended June 30, 2024 and 2023, respectively.
Current wording
The factors described above resulted in net income of $12.8 million and $7.7 million for the quarters ended September 30, 2024 and 2023, respectively, and net income of $34.2 million and $19.5 million for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
The future liquidity of Global Indemnity Group, LLC is dependent on the ability of its subsidiaries to generate income to pay dividends and to pay intercompany debt due to Global Indemnity Group, LLC. The future liquidity of GBLI Holdings, LLC is dependent on the ability of its subsidiaries to generate income to pay dividends as well as receiving reimbursements from its subsidiaries for utilization of net operating losses. Global Indemnity Group, LLC and GBLI Holdings, LLC’s insurance companies are restricted by statute as to the amount of dividends that they may pay without the prior approval of regulatory authorities. The dividend limitations imposed by state laws are based on the statutory financial results of each insurance company that are determined by using statutory accounting practices that differ in various respects from accounting principles used in financial statements prepared in conformity with GAAP. See “Regulation - Statutory Accounting Principles” in Item 1 of Part I of the Company’s 2023 Annual Report on Form 10-K. Key differences relate to, among other items, deferred acquisition costs, limitations on deferred income taxes, reserve calculation assumptions and surplus notes. See Note 21 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2023 Annual Report on Form 10-K for further information on dividend limitations related to the Insurance Companies. There were no dividends declared or paid by the Company's insurance subsidiaries during the quarter and six months ended June 30, 2024.
Current wording
The future liquidity of Global Indemnity Group, LLC is dependent on the ability of its subsidiaries to generate income to pay dividends and to pay intercompany debt due to Global Indemnity Group, LLC. The future liquidity of GBLI Holdings, LLC is dependent on the ability of its subsidiaries to generate income to pay dividends as well as receiving reimbursements from its subsidiaries for utilization of net operating losses. Global Indemnity Group, LLC and GBLI Holdings, LLC’s insurance companies are restricted by statute as to the amount of dividends that they may pay without the prior approval of regulatory authorities. The dividend limitations imposed by state laws are based on the statutory financial results of each insurance company that are determined by using statutory accounting practices that differ in various respects from accounting principles used in financial statements prepared in conformity with GAAP. See “Regulation - Statutory Accounting Principles” in Item 1 of Part I of the Company’s 2023 Annual Report on Form 10-K. Key differences relate to, among other items, deferred acquisition costs, limitations on deferred income taxes, reserve calculation assumptions and surplus notes. See Note 21 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2023 Annual Report on Form 10-K for further information on dividend limitations related to the Insurance Companies. There were no dividends declared or paid by the Company's insurance subsidiaries during the quarter and nine months ended September 30, 2024.
Showing the first 40 of 45 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The decline in premiums in Non-Core Operations is due to lines of business that have been de-emphasized or no longer written.