Global Indemnity Group Reports Third Quarter 2020 Results

11/9/20

BALA CYNWYD, Pa., Nov. 09, 2020 (GLOBE NEWSWIRE) -- Global Indemnity Group, LLC (NASDAQ:GBLI) today reported a net loss of $22.2 million for the nine months ended September 30, 2020 compared to net income of $41.0 million for the corresponding period in 2019. Adjusted operating income was $16.8 million for the nine months ended September 30, 2020 compared to $31.7 million for the corresponding period in 2019.

Selected Financial Data for the Three Months Ended September 30, 2020:

  • Underwriting income / (loss) – ($9.5) million in 2020 mainly due to catastrophes compared to $6.6 million in 2019.
  • Investment Income - $11.7 million in 2020 compared to $11.3 million in 2019. In 2020 lower yields on fixed income were offset by improved performance on alternative investments.
  • Realized gains / (loss) - $7.3 million in 2020 compared to ($2.7) million in 2019.
  • Corporate expenses - $21.2 million in 2020 compared to $3.9 million in 2019 mainly due to expenses incurred related to the redomestication of the Company completed on August 28, 2020.
  • Loss on extinguishment of debt – $3.1 million of prepaid debt issuance costs were written off when $100 million of subordinated debt was retired on August 15, 2020.
  • Tax benefit – $3.2 million in 2020 compared to $0.3 million in 2019.

Selected Financial Data for the Nine Months Ended September 30, 2020:

  • Underwriting income - $22.8 million in 2020 compared to $29.3 million in 2019.
  • Investment Income - $19.5 million in 2020 compared to $32.4 million in 2019. In 2020 alternative investments performed poorly in the early part of the year and book yields on the fixed income portfolio have declined.
  • Realized gains / (loss) – ($22.3) million in 2020 due to common stock sales in early 2020 and interest rate hedges compared to $11.3 million in 2019.
  • Corporate expenses - $34.0 million in 2020 compared to $11.7 million in 2019 mainly due to expenses incurred related to the redomestication of the Company completed on August 28, 2020.
  • Loss on extinguishment of debt – $3.1 million of prepaid debt issuance costs were written off when $100 million of subordinated debt was retired on August 15, 2020.
  • Tax benefit / (expense) – $8.2 million in 2020 compared to ($5.2) million in 2019.

About Global Indemnity Group, LLC and its subsidiaries

Global Indemnity Group, LLC (NASDAQ:GBLI), through its several direct and indirect wholly owned subsidiary insurance companies, provides both admitted and non-admitted specialty property and specialty casualty insurance coverages and individual policyholder coverages in the United States, as well as reinsurance worldwide. Global Indemnity Group, LLC’s four primary segments are:

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