Consolidated Selected Operating and Balance Sheet Information

(Dollars in millions, except per share data)

For the Three Months Ended

March 31,

2024

2023

Net income available to shareholders

$

11.3

$

2.4

Net income available to shareholders per share

$

0.82

$

0.17

Adjusted operating income

$

10.7

$

3.7

Adjusted operating income per share

$

0.77

$

0.26

Underwriting income (loss)

$

5.3

$

(1.1)

Investment income

$

14.5

$

12.0

Gross written premiums

$

93.5

$

123.0

Combined ratio analysis:

Loss ratio

55.3%

62.8%

Expense ratio

39.6%

38.2%

Combined ratio ₍₁₎

94.9%

101.0%

As of March 31,

As of December 31,

2024

2023

Book value per share (2)

$

48.18

$

47.53

Book value per share plus cumulative dividends and excluding AOCI

$

56.00

$

55.22

Shareholders' equity (3)

$

659.5

$

648.8

Cash and invested assets (4)

$

1,417.3

$

1,390.4

Shares Outstanding (in millions)

13.6

13.6

(1) 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 earned premiums. The expense ratio is the ratio of acquisition costs and other underwriting expenses to net earned premiums. The combined ratio is the sum of the loss and expense ratios.

(2) Net of cumulative Company distributions to common shareholders totaling $6.35 per share and $6.00 per share as of March 31, 2024 and December 31, 2023, respectively.

(3) Shareholders' equity includes $4 million of series A cumulative fixed rate preferred shares.

(4) Including receivable for securities matured.

Business Highlights for the Three Months Ended March 31, 2024 and 2023

(Dollars in millions)

Select Underwriting Income Results

For the Three Months Ended March 31,

Penn-America

Non-Core Operations

Consolidated

2024

2023

2024

2023

2024

2023

Revenues:

Gross written premiums

$

94.0

$

95.4

$

(0.5)

$

27.6

$

93.5

$

123.0

Net written premiums

$

92.6

$

91.2

$

(0.5)

$

24.7

$

92.1

$

115.9

Net earned premiums

$

89.1

$

90.6

$

7.5

$

49.5

$

96.6

$

140.1

Underwriting income (loss), current accident year

$

5.7

$

(0.8)

$

(0.4)

$

0.2

$

5.3

$

(0.6)

Underwriting income (loss)

$

5.6

$

(3.1)

$

(0.3)

$

2.0

$

5.3

$

(1.1)

Combined ratio analysis:

Loss ratio

Current accident year

54.8%

63.0%

60.6%

62.5%

55.3%

62.8%

Prior accident year

0.1%

2.4%

(0.5%)

(4.4%)

0.0%

0.0%

Calendar year loss ratio

54.9%

65.4%

60.1%

58.1%

55.3%

62.8%

Expense ratio

39.2%

38.3%

44.9%

37.9%

39.6%

38.2%

Combined ratio

94.1%

103.7%

105.0%

96.0%

94.9%

101.0%

Combined ratio, current accident year

94.0%

101.2%

105.5%

99.7%

94.9%

100.6%

Select Premium Data

Three Months Ended March 31,

Gross Written Premiums

Net Written Premiums

2024

2023

% Change

2024

2023

% Change

Penn-America:

Wholesale Commercial

$

61.0

$

58.3

4.7%

$

59.0

$

56.8

4.0%

InsurTech

12.5

10.7

17.0%

12.0

9.6

24.6%

Assumed Reinsurance

2.9

2.4

20.9%

2.9

2.4

20.9%

76.4

71.4

7.1%

73.9

68.8

7.5%

Programs

17.6

24.0

(26.7%)

18.7

22.4

(16.5%)

Penn-America

94.0

95.4

(1.4%)

92.6

91.2

1.6%

Non-Core Operations

(0.5)

27.6

(102.0%)

(0.5)

24.7

(102.1%)

Total

$

93.5

$

123.0

(24.0%)

$

92.1

$

115.9

(20.5%)

GLOBAL INDEMNITY GROUP, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars and shares in thousands, except per share data)

For the Three Months Ended March 31,

2024

2023

Gross written premiums

$

93,488

$

122,985

Net written premiums

$

92,085

$

115,861

Net earned premiums

$

96,579

$

140,072

Net investment income

14,520

12,008

Net realized investment gains (losses)

847

(1,520)

Other income

345

354

Total revenues

112,291

150,914

Net losses and loss adjustment expenses

53,384

88,001

Acquisition costs and other underwriting expenses

38,269

53,478

Corporate and other operating expenses

6,373

6,368

Income before income taxes

14,265

3,067

Income tax expense

2,899

573

Net income

11,366

2,494

Less: Preferred stock distributions

110

110

Net income available to common shareholders

$

11,256

$

2,384

Per share data:

Net income available to common shareholders

Basic

$

0.83

$

0.17

Diluted

$

0.82

$

0.17

Weighted-average number of shares outstanding

Basic

13,579

13,671

Diluted

13,687

13,929

Cash distributions declared per common share

$

0.35

$

0.25

Combined ratio analysis:

Loss ratio

55.3%

62.8%

Expense ratio

39.6%

38.2%

Combined ratio

94.9%

101.0%

GLOBAL INDEMNITY GROUP, LLC

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)

March 31, 2024

December 31, 2023

ASSETS

Fixed maturities:

Available for sale, at fair value (amortized cost: $1,250,975 and $1,322,092; net of allowance for expected credit losses of $0 at March 31, 2024 and December 31, 2023)

$

1,226,309

$

1,293,793

Equity securities, at fair value

17,045

16,508

Other invested assets

34,021

38,236

Total investments

1,277,375

1,348,537

Cash and cash equivalents

38,857

38,037

Premium receivables, net of allowance for expected credit losses of

$4,423 at March 31, 2024 and $4,796 at December 31, 2023

92,440

102,158

Reinsurance receivables, net of allowance for expected credit losses of

$8,992 at March 31, 2024 and December 31, 2023

77,664

80,439

Funds held by ceding insurers

17,395

16,989

Deferred federal income taxes

33,224

36,802

Deferred acquisition costs

40,231

42,445

Intangible assets

14,368

14,456

Goodwill

4,820

4,820

Prepaid reinsurance premiums

3,229

4,958

Receivable for securities matured

101,091

3,858

Lease right of use assets

9,288

9,715

Other assets

18,260

26,362

Total assets

$

1,728,242

$

1,729,576

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Unpaid losses and loss adjustment expenses

$

853,602

$

850,599

Unearned premiums

176,630

182,852

Ceded balances payable

1,651

2,642

Federal income tax payable

1,600

1,595

Contingent commissions

2,598

5,632

Lease liabilities

11,910

12,733

Other liabilities

20,756

24,770

Total liabilities

$

1,068,747

$

1,080,823

Shareholders' equity:

Series A cumulative fixed rate preferred shares, $1,000 par value;

100,000,000 shares authorized, shares issued and outstanding:

4,000 and 4,000 shares, respectively, liquidation preference:

$1,000 per share and $1,000 per share, respectively

4,000

4,000

Common shares: no par value; 900,000,000 common shares authorized;

class A common shares issued: 11,082,004 and 11,042,670, respectively;

class A common shares outstanding: 9,810,763 and 9,771,429, respectively;

class B common shares issued and outstanding: 3,793,612 and 3,793,612, respectively

—

—

Additional paid-in capital (1)

456,179

454,791

Accumulated other comprehensive income (loss), net of tax

(19,995)

(22,863)

Retained earnings (1)

251,474

244,988

Class A common shares in treasury, at cost: 1,271,241 and 1,271,241 shares, respectively

(32,163)

(32,163)

Total shareholders' equity

659,495

648,753

Total liabilities and shareholders' equity

$

1,728,242

$

1,729,576

(1)

Since the Company's initial public offering in 2003, the Company has returned $614 million to shareholders, including $522 million in share repurchases and $92 million in dividends/distributions.

GLOBAL INDEMNITY GROUP, LLC

SELECTED INVESTMENT DATA

(Dollars in millions)

Market Value as of

(Unaudited)

March 31, 2024

December 31, 2023

Fixed maturities

$

1,226.3

$

1,293.8

Cash and cash equivalents

38.9

38.0

Total bonds and cash and cash equivalents

1,265.2

1,331.8

Equities and other invested assets

51.0

54.7

Total cash and invested assets, gross

1,316.2

1,386.5

Receivable for securities matured

101.1

3.9

Total cash and invested assets, net

$

1,417.3

$

1,390.4

Total Investment Return (1)

For the Three Months Ended

March 31,

(Unaudited)

2024

2023

Net investment income

$

14.5

$

12.0

Net realized investment gains (losses)

0.8

(1.5)

Net unrealized investment gains (losses)

3.6

10.5

Net realized and unrealized investment return

4.4

9.0

Total investment return

$

18.9

$

21.0

Average total cash and invested assets

$

1,403.9

$

1,344.9

Total quarterly investment return %

1.3%

1.6%

Total annualized investment return %

5.4%

6.2%

(1)

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

GLOBAL INDEMNITY GROUP, LLC

SUMMARY OF ADJUSTED OPERATING INCOME

(Unaudited)

(Dollars and shares in thousands, except per share data)

For the Three Months

Ended March 31,

2024

2023

Adjusted operating income, net of tax ₍₁₎

$

10,692

$

3,716

Net realized investment gains (losses)

674

(1,222)

Net income

$

11,366

$

2,494

Weighted average shares outstanding – basic

13,579

13,671

Weighted average shares outstanding – diluted

13,687

13,929

Adjusted operating income per share – basic (2)

$

0.78

$

0.26

Adjusted operating income per share – diluted (2)

$

0.77

$

0.26

(1)

Adjusted operating income, net of tax, excludes preferred shareholder distributions of $0.1 million for each of the three months ended March 31, 2024 and 2023.

(2)

The adjusted operating income per share calculation is net of preferred shareholder distributions of $0.1 million for each of the three months ended March 31, 2024 and 2023.