• Net Income: $34.2 million compared to $19.5 million in 2023.
• Book Value Per Share: Increased from $47.53 to $49.88 as of September 30, 2024.
• Return to Shareholders: 8.2% for the first nine months of 2024.
• Investment Income: Increased 18% to $46.3 million from the previous year.
• Current Book Yield on Fixed Income Portfolio: 4.6% with a duration of 0.8 years.
• Combined Ratio: 93.9 for the Pan America segment.
• Gross Premiums: Increased 12% for nine months, driven by a 14% growth in wholesale commercial, insuretech, and assumed reinsurance.
• Pan America Expense Ratio: 38.2% for nine months.
• Consolidated Gross Premiums: $294 million in 2024 compared to $332 million in 2023.
• Wholesale Commercial Growth: 7% to $186.9 million.
• Insuretech Growth: 17% to $41.9 million.
• Assumed Reinsurance Growth: $19.3 million in 2024 compared to $8.4 million in 2023.

• Warning! GuruFocus has detected 4 Warning Sign with GBLI.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Global Indemnity Group LLC (NYSE:GBLI) achieved a 12% increase in gross premiums for the first nine months of 2024, driven by strong growth in wholesale commercial, insuretech, and assumed reinsurance divisions.
• The company reported a nine-month combined ratio of 93.9 for the Pan America segment, indicating strong underwriting performance.
• Investment income increased by 18% to $46.3 million, benefiting from strategic decisions to shorten the duration of the bond portfolio.
• Net income rose to $34.2 million compared to $19.5 million in 2023, reflecting improved underwriting and investment performance.
• The company's book value per share increased from $47.53 at year-end to $49.88 as of September 30, 2024, including dividends paid, resulting in an 8.2% return to shareholders.

Negative Points

• The specialty products business remains a work in progress, with gross premiums excluding terminated products remaining flat for nine months.
• The Pan America expense ratio is at 38.2%, which is higher than the long-term target of 37% or lower, indicating room for improvement in expense management.
• Non-core operations continue to have a diminished effect on overall performance, with net earned premium dropping significantly year-over-year.
• Runoff expenses for non-core operations remain high, impacting overall profitability.
• The company did not repurchase any shares during the quarter, which may be a concern for investors looking for capital return through buybacks.

Q & A Highlights

Q: Could you talk more about your discontinued lines? How much is left and what's the timing for getting out of them? A: We have about a little less than $5 million of earned premium that needs to run off in the fourth quarter and into 2025. By the end of 2025, we expect it to be fully earned and in full run-off on the loss reserve side. - Brian Riley, CFO

Q: Are you actively looking for more lines to purchase or get into, and if so, in what categories? A: We are constantly looking for new opportunities to expand our book of business. We aim to create stability in our existing business and will start adding additional products within those lines in 2025 and 2026. We are looking at opportunities that align with our current approaches, but you won't see anything for another 6 to 9 months. - Joseph Brown, CEO

Q: Did you buy back any shares in the quarter? A: No, we did not buy back any shares in the quarter. - Brian Riley, CFO

Q: What is the status of your investment portfolio and future plans? A: Our investment portfolio is well-positioned to invest in longer-duration maturities at higher yields. We are actively looking at opportunities to invest in longer-duration maturities to further increase investment returns. - Brian Riley, CFO

Q: How is the performance of your core business, Pan America? A: Pan America continues to show strong performance with a combined ratio of 93.9, an improvement from 96.7 last year. The accident year loss ratio improved due to strong performance in our property business. - Brian Riley, CFO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.