GEORGE TOWN, Cayman Islands, Aug. 07, 2019 (GLOBE NEWSWIRE) -- Global Indemnity Limited (NASDAQ:GBLI) today reported net income for the six months ended June 30, 2019 of $34.3 million or $2.39 per share, an increase of $21.4 million or 165.7%, compared to the same period in 2018. Gross Premiums Written increased by 13.6% to $321.5 million for the six months ended June 30, 2019, compared to $283.1 million for the same period in 2018. The combined ratio for the first six months of 2019 was 91.4%, a 2.1 point improvement over the same period in 2018 and total investment return was 5.1%.  Book value per share increased by 10.2% (net of Company dividends of $0.50 per share to shareholders) during the six months, from $44.21 per share at December 31, 2018 to $48.70 per share at June 30, 2019.

Selected Operating and Balance Sheet Information
(Dollars in millions, except per share data)

	For the Six Months Ended June 30,								As of June 30,			As of December 31,
		2019				2018				2019			2018
Gross Premiums Written	$	321.5			$	283.1		Book value per share (1)	$	48.70		$	44.21
Net Premiums Written	$	282.5			$	244.3		Shareholders’ equity	$	694.5		$	629.1
								Cash and invested assets (2)	$	1,556.1		$	1,510.2
Net income	$	34.3			$	12.9
Net income per share	$	2.39			$	0.90		(1) Net of cumulative Company dividends to shareholders totaling $1.50 per share and $1.00 per share as of June 30, 2019 and December 31, 2018, respectively. (2) Including receivable/(payable) for securities sold/(purchased)
Combined ratio analysis:
Loss ratio		51.3	%			51.8	%
Expense ratio		40.1	%			41.7	%
Combined ratio		91.4	%			93.5	%

About Global Indemnity Limited and its subsidiaries

Global Indemnity Limited (NASDAQ:GBLI), through its several direct and indirect wholly owned subsidiary insurance and reinsurance companies, provides both admitted and non-admitted specialty property and specialty casualty insurance coverages and individual policyholder coverages in the United States, as well as reinsurance worldwide.  Global Indemnity Limited’s four primary segments are:

• United States Based Commercial Specialty
   
• United States Based Specialty Property
   
• United States Based Farm, Ranch, & Stable
   
• Bermuda Based Reinsurance

The Company’s Commercial Specialty segment was formerly known as Commercial Lines. During the 1st quarter of 2019, the Company re-evaluated its Personal Lines segment and determined that Personal Lines should be bifurcated into two reportable segments: Specialty Property and Farm, Ranch, & Stable.

For more information, visit the Global Indemnity Limited’s website at http://www.globalindemnity.ky.

Forward-Looking Information

The forward-looking statements contained in this press release [1] do not address a number of risks and uncertainties.  Investors are cautioned that Global Indemnity’s actual results may be materially different from the estimates expressed in, or implied, or projected by, the forward looking statements. These statements are based on estimates and information available to us at the time of this press release. All forward-looking statements in this press release are based on information available to Global Indemnity as of the date hereof. Please see Global Indemnity’s filings with the Securities and Exchange Commission for a discussion of risks and uncertainties which could impact the company and for a more detailed explication regarding forward-looking statements. Global Indemnity does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.   

[1] Disseminated pursuant to the "safe harbor" provisions of Section 21E of the Security Exchange Act of 1934.

Global Indemnity Limited’s Combined Ratio for the Six Months Ended June 30, 2019 and 2018

For the six months ended June 30, 2019, the Company recorded a combined ratio of 91.4% (Loss Ratio 51.3% and Expense Ratio 40.1%) compared to 93.5% (Loss Ratio 51.8% and Expense Ratio 41.7%)  for the six months ended June 30, 2018.             

• The current accident year property loss ratio improved by 1.7 points to 57.6% in 2019 from 59.3% in 2018 primarily due to lower claims frequency and severity in the U.S. Insurance Operations.
   
• The current accident year casualty loss ratio was 58.0% compared to 57.5% in 2018.

Calendar year results for the six months ended June 30, 2019 include $16.1 million in favorable loss development mainly from the U.S. Insurance Operations. 
              
Global Indemnity Limited’s Gross and Net Premiums Written Results by Segment for the Six Months Ended June 30, 2019 and 2018

	Six Months Ended June 30,
	Gross Premiums Written									Net Premiums Written
		2019			2018		% Change				2019			2018		% Change
Commercial Specialty	$	141,292		$	123,746		14.2	%		$	122,277		$	109,656		11.5	%
Specialty Property		86,160			88,374		(2.5	%)			73,040			69,519		5.1	%
Farm, Ranch, & Stable		44,462			40,336		10.2	%			37,567			34,543		8.8	%
Reinsurance		49,608			30,608		62.1	%			49,601			30,606		62.1	%
Total	$	321,522		$	283,064		13.6	%		$	282,485		$	244,324		15.6	%

Commercial Specialty Operations: Gross premiums written and net premiums written increased 14.2% and 11.5%, respectively, for the six months ended June 30, 2019 as compared to the same period in 2018.  This increase is primarily driven by new programs and increases in excess & surplus lines submissions.

Specialty Property Operations:  Gross premiums written decreased by 2.5% and net premiums written increased by 5.1% for the six months ended June 30, 2019 as compared to the same period in 2018. The decrease in gross premiums written was primarily due to a continued reduction of catastrophe exposed business.  As a result of reducing its catastrophe exposure, Specialty Property ceded less premiums to reinsurers, which contributed to the growth in net premiums written. 

Farm, Ranch, & Stable Operations:  Gross premiums written increased by 10.2% and net premiums written increased by 8.8% for the six months ended June 30, 2019 as compared to the same period in 2018. The increase in gross and net premiums written was primarily due to an increase in pricing as well as new agent appointments. 

Reinsurance Operations: Gross premiums written and net premiums written both increased 62.1% for the six months ended June 30, 2019, as compared to the same period in 2018, mainly due to entering a new casualty treaty during 2019 and rate increases within the property catastrophe line of business.

            
Note: Tables Follow

GLOBAL INDEMNITY LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars and shares in thousands, except per share data)

	For the Three Months Ended June 30,							For the Six Months Ended June 30,
		2019			2018				2019			2018
Gross premiums written	$	179,321		$	158,817			$	321,522		$	283,064
Net premiums written	$	159,069		$	136,454			$	282,485		$	244,324
Net premiums earned	$	128,201		$	113,917			$	250,290		$	221,919
Net investment income		13,826			10,954				21,045			22,358
Net realized investment gains		3,590			2,830				13,980			2,514
Other income		522			324				1,010			878
Total revenues		146,139			128,025				286,325			247,669
Net losses and loss adjustment  expenses (1)		70,075			58,861				128,396			114,933
Acquisition costs and other underwriting expenses		50,534			47,513				100,277			92,516
Corporate and other operating expenses		4,639			10,918				7,844			20,178
Interest expense		5,042			4,940				10,065			9,801
Income before income taxes		15,849			5,793				39,743			10,241
Income tax expense (benefit)		1,186			(1,399	)			5,480			(2,652	)
Net income	$	14,663		$	7,192			$	34,263		$	12,893
Weighted average shares outstanding–basic		14,187			14,092				14,171			14,074
Weighted average shares outstanding–diluted		14,331			14,335				14,325			14,308
Net income per share – basic	$	1.03		$	0.51			$	2.42		$	0.92
Net income per share – diluted	$	1.02		$	0.50			$	2.39		$	0.90
Cash dividends declared per share	$	0.25		$	0.25			$	0.50		$	0.50
Combined ratio analysis: (2)
Loss ratio		54.6			51.7				51.3			51.8
Expense ratio		39.4			41.7				40.1			41.7
Combined ratio		94.0			93.4				91.4			93.5

(1) Includes loss reductions related to prior years of $8.2 million and $9.6 million for the three months ended June 30, 2019 and 2018, respectively and $16.1 million and $15.5 million for the six months ended June 30, 2019 and 2018, respectively.  
(2) The loss ratio, expense ratio and combined ratio are GAAP financial measures that are generally viewed in the insurance industry as indicators of underwriting profitability.  The loss ratio is the ratio of net losses and loss adjustment expenses to net premiums earned.  The expense ratio is the ratio of acquisition costs and other underwriting expenses to net premiums earned.  The combined ratio is the sum of the loss and expense ratios.

GLOBAL INDEMNITY LIMITED
CONSOLIDATED BALANCE SHEETS
 (Dollars in thousands)

ASSETS				(Unaudited) June 30, 2019				December 31, 2018
Fixed Maturities:
	Available for sale securities, at fair value (amortized cost: 2019 - $1,175,646 and 2018 - $1,257,830)			$	1,196,276			$	1,235,155
Equity securities, at fair value					262,029				124,747
Other invested assets					51,472				50,753
		Total investments			1,509,777				1,410,655
Cash and cash equivalents					56,215				99,497
Premiums receivable, net					120,649				87,679
Reinsurance receivables, net					66,398				114,418
Funds held by ceding insurers					41,588				49,206
Federal income taxes receivable					11,134				10,866
Receivable for securities sold					-				15
Deferred federal income taxes					37,425				48,589
Deferred acquisition costs					69,047				61,676
Intangible assets					21,755				22,020
Goodwill					6,521				6,521
Prepaid reinsurance premiums					19,244				20,594
Other assets					55,719				28,530
		Total assets		$	2,015,472			$	1,960,266
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses				$	608,773			$	680,031
Unearned premiums					312,758				281,912
Ceded balances payable					17,459				14,994
Payables for securities purchased					9,849				-
Contingent commissions					8,103				10,636
Debt					292,106				288,565
Other liabilities					71,912				55,069
		Total liabilities			1,320,960				1,331,207
Shareholders’ equity:
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued:10,239,520 and 10,171,954, respectively; A ordinary shares outstanding: 10,129,071 and 10,095,312, respectively; B ordinary  shares issued and outstanding: 4,133,366 and 4,133,366, respectively					2				2
Additional paid-in capital (1)					439,707				438,182
Accumulated other comprehensive income (loss), net of taxes					16,542				(21,231	)
Retained earnings (1)					242,234				215,132
A ordinary shares in treasury, at cost: 110,449 and 76,642 shares, respectively					(3,973	)			(3,026	)
		Total shareholders’ equity			694,512				629,059
		Total liabilities and shareholders’ equity		$	2,015,472			$	1,960,266

(1) Since the Company’s initial public offering in 2003, the Company repurchased 20.2 million shares for a total of $488 million. These share repurchases are reflected by a $488 million reduction of the Company’s additional paid-in capital and retained earnings as of June 30, 2019 and December 31, 2018. Retained earnings are also net of $21 million and $14 million of cumulative historic Company dividends to shareholders as of June 30, 2019 and December 31, 2018, respectively.

GLOBAL INDEMNITY LIMITED
SELECTED INVESTMENT DATA
 (Dollars in millions)

		Market Value as of
		(Unaudited) June 30, 2019				December 31, 2018
Fixed maturities		$	1,196.3			$	1,235.2
Cash and cash equivalents			56.2				99.5
Total bonds and cash and cash equivalents			1,252.5				1,334.7
Equities and other invested assets			313.5				175.5
Total cash and invested assets, gross			1,566.0				1,510.2
Payable for securities purchased			(9.9	)			-
Total cash and invested assets, net		$	1,556.1			$	1,510.2

             

	Total Investment Return (1)
	For the Three Months Ended June 30, (unaudited)								For the Six Months Ended June 30, (unaudited)
		2019				2018				2019				2018
Net investment income	$	13.8			$	11.0			$	21.0			$	22.4
Net realized investment gains		3.6				2.8				14.0				2.5
Net unrealized investment gains		17.1				(6.6	)			43.4				(24.3	)
Net realized and unrealized investment gains		20.7				(3.8	)			57.4				(21.8	)
Total net investment income and gains	$	34.5			$	7.2			$	78.4			$	0.6
Average total cash and invested assets	$	1,537.3			$	1,546.8			$	1,533.2			$	1,543.6
Total investment return %		2.2	%			0.5	%			5.1	%			0.0	%

(1) Amounts in this table are shown on a pre-tax basis.

Contact:	Media
	Stephen W. Ries
	Senior Corporate Counsel
	(610) 668-3270
	sries@global-indemnity.com