Property and casualty insurer Global Indemnity has reported a net loss to shareholders of $14.9 million for the first quarter of 2022, compared to net income of $5.4 million for the corresponding period in 2021.
The company generated adjusted operating income of $5.4 million during Q1, which excludes realized losses and the results of Exited Lines, compared to adjusted operating income of $2.3 million last year.
During this time, Global Indemnity reported an increase of 27.3% in gross written premiums in its Continuing Lines.
It also posted a strong consolidated combined ratio was 95.0%, consisting of a loss ratio of 56.9% and an expense ratio of 38.1%, compared with a combined ratio of 101.2% for Q1 2021.
This result was helped by lower catastrophe losses of $4.3 million in the most recent quarter, compared with $16.9 million for the same period last year.
For reinsurance operations, gross written premiums and net written premiums both increased by 88.8%, due to organic growth of existing casualty treaties.
And for commercial specialty gross written premiums and net written premiums increased 16.7% and 19.6%, respectively, primarily driven by organic growth of 26.9% in the company’s Penn America binding business, increased pricing, and several new programs.
In January 2022, Global Indemnity sold substantially all of its $76 million common equity portfolio resulting in a gain of $10.9 million, although majority of this gain was recognized in 2021 due to mark-to-market accounting rules.
In the early part of the second quarter of 2022, Global Indemnity has further reduced the duration of its fixed income portfolio to 1.8 years compared to duration at May 31, 2021 of 4.4 years, and duration at December 31, 2021 of 3 years.
Also early in the 2nd quarter, the company prepaid its remaining $130 million of outstanding debt.
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