Global Indemnity Reports Q1 Operating Income of $8.3M

By Chris Stiles • Tuesday, May 05 14:14 • Permanent Link

Global Indemnity Group said first-quarter operating income swung to $8.3 million, or $0.57 a share, from an operating loss of $4.1 million, or $0.30 a share, a year earlier. Net income available to common shareholders rose to $4.1 million, or $0.29 a share, from a $4.1 million loss, while pretax adjusted operating contribution was $20.0 million, essentially flat from $20.1 million.

Net earned premiums increased 5.4% to $98.4 million from $93.3 million. Current accident year underwriting income climbed to $5.5 million from $5.3 million, and the current accident year combined ratio held at 94.9%, nearly unchanged from 94.8%. The calendar-year combined ratio improved to 95.1% from 111.7%, while the loss ratio dropped to 54.8% from 71.5%; the expense ratio moved to 40.3% from 40.2%.

Gross written premiums declined to $96.5 million from $98.7 million, but excluding terminated business they were down just 0.7%. By line, wholesale commercial fell 5.2% to $61.5 million from $64.9 million. Vacant express rose 4.9% to $11.5 million, collectibles increased 12.6% to $4.6 million, specialty products rose 2.4% to $7.7 million, and assumed reinsurance increased to $11.2 million from $10.9 million.

Investment income fell to $12.2 million from $14.8 million. Total investment return dropped to $6.7 million, or 1.9% annualized, from $19.3 million, or 5.4% annualized. The company said the decline reflected a $2.3 million market value loss on a limited partnership position and a larger allocation to U.S. Treasuries, while net realized and unrealized investment return swung to a loss of $5.5 million from a gain of $4.5 million.

Common shareholders’ equity slipped to $700.1 million at March 31 from $702.6 million at year-end. Book value per share fell to $47.92 from $48.96. Cash and invested assets, net, declined to $1.39 billion from $1.42 billion, and total assets fell to $1.68 billion from $1.72 billion. The company paid $5.1 million in dividends during the quarter, equal to $0.35 per common share. As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $27.935. Check out the company's full 8-K submission here.

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