Global Indemnity Group sees big net income improvement in FY23

Global Indemnity Group, LLC (GBLI) has posted its results for the full-year 2023, which includes a substantial performance in net income, as it reached $25.0 million compared to a net loss of $1.3 million for the corresponding period in 2022.

At the same time, adjusted operating income per share was $1.96 in 2023, representing an increase of 125% over $0.87 in 2022, driven by a 95.2% accident year combined ratio in the company’s Penn-America excess and surplus (E&S) lines insurance business and $55.4 million of net investment income, which increased 101% over 2022.

The company’s underwriting income was $3.0 million for the twelve months ended December 31, 2023, compared to $8.3 million for the same period in 2022.

An important factor to note, is that during the fourth quarter of 2023, GBLI re-evaluated its segments and determined that the company is managing the business through two reportable segments: Penn-America and Non-Core Operations.

From what we understand, the Penn-America segment comprises the businesses core products which include Wholesale Commercial, Programs, InsurTech, and Assumed Reinsurance. While, the Non-Core Operations segment contains lines of business that have been de-emphasized or are no longer being written.

With that, Penn-America gross written premiums (GWP) and net written premiums (NWP) of Penn-America’s Wholesale Commercial, InsurTech, and Assumed Reinsurance business grew by 11.6% and 13.1%, respectively, for the twelve months ended December 31, 2023 as compared to the same period in 2022.

The company stated that the growth in Wholesale Commercial was mostly driven by new agency appointments, strong rate increases as well as exposure growth in both property and general liability.

Looking at Non-Core Operations, GWP and NWP decreased 86.2% and 80.8%, respectively, for the twelve months ended December 31, 2023 as compared to the same period in 2022.

The company said that the decrease in both GWP and NWP was primarily due to selling the manufactured home & dwelling and farm businesses and the non-renewal of a casualty reinsurance treaty.

Moving forward, GBLI’s consolidated combined ratio for FY23 sat at 99.7%, with Loss Ratio standing at 61.1% and Expense Ratio coming in at 38.6%, respectively, compared to 98.8% (Loss Ratio 59.6% and Expense Ratio 39.2%) from FY22.

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