Global Indemnity’s net income increases 83% in H1’24

Global Indemnity Group (GBLI) has released its results for the first half of 2024, which includes an 83% increase in net income available to shareholders of $21.2 million, compared to $11.6 million from the same period in 2023.

GBLI’s operating income for H1’24 also witnessed a notable increase, as it climbed 51% to $20.6 million, compared to $13.7 million in the prior year period.

In terms of investment, GBLI posted an investment income of $29.8 million for the period, an 18% increase from $25.2 million in 2023, which the company noted was due to an increase in book yield on GBLI’s bond portfolio from 3.8% at June 30, 2023 to 4.5% at June 30, 2024.

In addition, GBLI’s current accident year underwriting income climbed to $8.7 million for H1’24, compared to $3.2 million from the prior year.

GBLI explained that this increase was driven by the company’s Penn-America segment that posted $9.9 million of underwriting income (combined ratio of 94.8%), which was higher than its 2023 underwriting income of $6.3 million (combined ratio of 96.8%) driven by improved non-catastrophe and catastrophe property results.

As well as this, GBLI’s catastrophe losses declined 36% to $6.8 million in H1’24, from $10.6 million in H1’23.

Moving towards Penn-America, gross written premiums – excluding programs terminated in 2023 – increased 7% to $194.6 million compared to $182.3 million from last year.

InsurTech also grew 18%, reaching $26.3 million in the period, compared to $22.3 million in 2023 from organic agency growth, new agency appointments and new products.

GBLI also noted that Wholesale Commercial’s policy premiums, excluding audit premiums, is higher by 12% in H1’24, which was driven primarily by an aggregate premium rate increase of 9%.

And lastly, Assumed Re increased from $4.2 million in H1’23 to $9.4 million in H1’24 due to new treaties commencing in both 2023 and 2024.

Meanwhile, ratings agency AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issue Credit Ratings (Long-Term ICR) of “a” (Excellent) of the U.S. operating subsidiaries of Global Indemnity Group, LLC.

According to the agency, the balance sheet strength assessment reflects Global Indemnity’s risk-adjusted capitalisation being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). This was also supported by a conservative investment portfolio, generally conservative reserving practices, as well as the added financial flexibility through its parent’s access to capital markets.

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