GEORGE TOWN, Cayman Islands, Nov. 05, 2019 (GLOBE NEWSWIRE) -- Global Indemnity Limited (NASDAQ:GBLI) today reported net income for the nine months ended September 30, 2019 of $41.0 million or $2.86 per share, an increase of $24.4 million or 146.6%, compared to the same period in 2018. Gross Premiums Written increased by 14.3% to $478.7 million for the nine months ended September 30, 2019, compared to $418.7 million for the same period in 2018. The combined ratio for the first nine months of 2019 was 92.8%, a 5.5 point improvement over the same period in 2018 and total investment return was 6.2%.  Book value per share increased by 12.0% (net of Company dividends of $0.75 per share to shareholders) during the nine months, from $44.21 per share at December 31, 2018 to $49.53 per share at September 30, 2019.

Selected Operating and Balance Sheet Information
(Dollars in millions, except per share data)
	For the Nine Months Ended September 30,								As of September 30,			As of December 31,
	2019				2018				2019			2018
Gross Premiums Written	$	478.7			$	418.7		Book value per share (1)	$	49.53		$	44.21
Net Premiums Written	$	421.3			$	360.6		Shareholders’ equity	$	707.4		$	629.1
								Cash and invested assets (2)	$	1,614.2		$	1,510.2
Net income	$	41.0			$	16.6
Net income per share	$	2.86			$	1.16		(1) Net of cumulative Company dividends to shareholders totaling $1.75 per share and $1.00 per share as of September 30, 2019 and December 31, 2018, respectively.
								(2) Including receivable/(payable) for securities sold/(purchased)
Combined ratio analysis:
Loss ratio		52.7	%			57.1	%
Expense ratio		40.1	%			41.2	%
Combined ratio		92.8	%			98.3	%

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 Nine Months Ended September 30, 2019 and 2018           

For the nine months ended September 30, 2019, the Company recorded a combined ratio of 92.8% (Loss Ratio 52.7% and Expense Ratio 40.1%) compared to 98.3% (Loss Ratio 57.1% and Expense Ratio 41.2%)  for the nine months ended September 30, 2018.

• The current accident year property loss ratio improved by 7.5 points to 59.5% in 2019 from 67.0% in 2018 primarily due to lower claims frequency and severity in the U.S. Insurance Operations.
   
• The current accident year casualty loss ratio improved by 3.8 points to 56.9% in 2019 compared to 60.7% in 2018 primarily due to lower claims frequency and severity in the U.S. Insurance Operations.     

Calendar year results for the nine months ended September 30, 2019 include $23.0 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 Nine Months Ended September 30, 2019 and 2018

	Nine Months Ended September 30,
	Gross Premiums Written									Net Premiums Written
		2019			2018		% Change				2019			2018		% Change
Commercial Specialty	$	214,467		$	186,923		14.7	%		$	185,202		$	165,817		11.7	%
Specialty Property		128,771			132,286		(2.7	%)			110,668			101,542		9.0	%
Farm, Ranch, & Stable		65,872			59,496		10.7	%			55,861			53,239		4.9	%
Reinsurance		69,589			39,965		74.1	%			69,590			39,959		74.2	%
Total	$	478,699		$	418,670		14.3	%		$	421,321		$	360,557		16.9	%

Commercial Specialty Operations: Gross premiums written and net premiums written increased 14.7% and 11.7%, respectively, for the nine months ended September 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 2.7% and net premiums written increased by 9.0% for the nine months ended September 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 10.7% and net premiums written increased by 4.9% for the nine months ended September 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 increased 74.1% and 74.2%, respectively, for the nine months ended September 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						For the Nine Months
		Ended September 30,						Ended September 30,
		2019			2018			2019			2018
Gross premiums written		$	157,177		$	135,606		$	478,699		$	418,670
Net premiums written		$	138,836		$	116,233		$	421,321		$	360,557
Net premiums earned		$	133,312		$	120,528		$	383,602		$	342,447
Net investment income			11,348			11,750			32,393			34,108
Net realized investment gains (losses)			(2,690	)		5,319			11,290			7,833
Other income			264			411			1,274			1,289
Total revenues			142,234			138,008			428,559			385,677
Net losses and loss adjustment expenses (1)			73,583			80,493			201,979			195,426
Acquisition costs and other underwriting expenses			53,366			48,680			153,643			141,196
Corporate and other operating expenses			3,858			3,475			11,702			23,653
Interest expense			5,023			4,924			15,088			14,725
Income before income taxes			6,404			436			46,147			10,677
Income tax expense (benefit)			(317	)		(3,292	)		5,163			(5,944	)
Net income		$	6,721		$	3,728		$	40,984		$	16,621
Weighted average shares outstanding–basic			14,203			14,100			14,182			14,083
Weighted average shares outstanding–diluted			14,328			14,347			14,329			14,321
Net income per share – basic		$	0.47		$	0.26		$	2.89		$	1.18
Net income per share – diluted		$	0.47		$	0.26		$	2.86		$	1.16
Cash dividends declared per share		$	0.25		$	0.25		$	0.75		$	0.75
Combined ratio analysis: (2)
Loss ratio			55.2			66.8			52.7			57.1
Expense ratio			40.0			40.4			40.1			41.2
Combined ratio			95.2			107.2			92.8			98.3

(1) Includes loss reductions related to prior years of $7.0 million and $12.0 million for the three months ended September 30, 2019 and 2018, respectively and $23.0 million and $27.5 million for the nine months ended September 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) September 30, 2019				December 31, 2018
Fixed Maturities:
	Available for sale securities, at fair value (amortized cost: 2019 - $1,203,984 and 2018 - $1,257,830)			$	1,234,435			$	1,235,155
Equity securities, at fair value					262,367				124,747
Other invested assets					40,052				50,753
		Total investments			1,536,854				1,410,655
Cash and cash equivalents					78,181				99,497
Premiums receivable, net					112,992				87,679
Reinsurance receivables, net					83,012				114,418
Funds held by ceding insurers					48,751				49,206
Federal income taxes receivable					11,136				10,866
Receivable for securities sold					-				15
Deferred federal income taxes					36,479				48,589
Deferred acquisition costs					70,861				61,676
Intangible assets					21,623				22,020
Goodwill					6,521				6,521
Prepaid reinsurance premiums					17,763				20,594
Other assets					59,983				28,530
		Total assets		$	2,084,156			$	1,960,266
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses				$	633,287			$	680,031
Unearned premiums					316,797				281,912
Ceded balances payable					36,431				14,994
Payables for securities purchased					848				-
Contingent commissions					10,035				10,636
Debt					297,324				288,565
Other liabilities					82,050				55,069
		Total liabilities			1,376,772				1,331,207
Shareholders’ equity:
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares
authorized; A ordinary shares issued:10,258,795 and 10,171,954, respectively; A ordinary shares outstanding: 10,148,346 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)					440,695				438,182
Accumulated other comprehensive income (loss), net of taxes					25,314				(21,231	)
Retained earnings (1)					245,346				215,132
A ordinary shares in treasury, at cost: 110,449 and 76,642 shares, respectively					(3,973	)			(3,026	)
		Total shareholders’ equity			707,384				629,059
		Total liabilities and shareholders’ equity		$	2,084,156			$	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 September 30, 2019 and December 31, 2018. Retained earnings are also net of $25 million and $14 million of cumulative historic Company dividends to shareholders as of September 30, 2019 and December 31, 2018, respectively.

GLOBAL INDEMNITY LIMITED
SELECTED INVESTMENT DATA
 (Dollars in millions)

		Market Value as of
		(Unaudited) September 30, 2019				December 31, 2018
Fixed maturities		$	1,234.4			$	1,235.2
Cash and cash equivalents			78.2				99.5
Total bonds and cash and cash equivalents			1,312.6				1,334.7
Equities and other invested assets			302.4				175.5
Total cash and invested assets, gross			1,615.0				1,510.2
Payable for securities purchased			(0.8	)			-
Total cash and invested assets, net		$	1,614.2			$	1,510.2

		Total Investment Return (1)
		For the Three Months Ended September 30, (unaudited)								For the Nine Months Ended September 30, (unaudited)
			2019				2018				2019				2018
Net investment income		$	11.3			$	11.8			$	32.4			$	34.1
Net realized investment gains (losses)			(2.7	)			5.3				11.3				7.8
Net unrealized investment gains			10.0				(1.6	)			53.4				(25.8	)
Net realized and unrealized investment gains			7.3				3.7				64.7				(18.0	)
Total net investment income and gains		$	18.6			$	15.5			$	97.1			$	16.1
Average total cash and invested assets		$	1,585.2			$	1,542.0			$	1,562.2			$	1,533.8
Total investment return %			1.2	%			1.0	%			6.2	%			1.1	%

(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