Exhibit 99.1

 

PRESS RELEASE

 

For release:		May 3, 2019
Contact:		Media
		Stephen W. Ries
		Senior Corporate Counsel
		(610) 668-3270
		sries@global-indemnity.com

Global Indemnity Limited Reports First Quarter 2019 Financial Results

George Town, Cayman Islands (May 3, 2019) – Global Indemnity Limited (NASDAQ:GBLI) today reported net income for the three months ended March 31, 2019 of $19.6 million or $1.37 per share, an increase of $13.9 million or 244%, compared to the same period in 2018. Gross Premiums Written increased by 14.5% to $142.2 million for the three months ended March 31, 2019, from $124.2 million for the same period in 2018. The combined ratio was 88.5%, a 5.1 point improvement over the same period in 2018. Book value per share increased by 6.0% (net of Company dividends of $0.25 per share to shareholders) during the quarter, from $44.21 per share at December 31, 2018 to $46.86 per share at March 31, 2019.

Selected Operating and Balance Sheet Information

(Dollars in millions, except per share data)

 

		For the Three Months Ended March 31,										As of March 31,				As of December 31,
		2019				2018						2019				2018
Gross Premiums Written		$	142.2			$	124.2			Book value per share		$	46.86			$	44.21
Net Premiums Written		$	123.4			$	107.9			Shareholders’ equity		$	667.7			$	629.1
										Cash and invested assets (1)		$	1,518.4			$	1,510.2
Net income		$	19.6			$	5.7
Net income per share		$	1.37			$	0.40			(1)   Including receivable/(payable) for securities sold/(purchased)
Combined ratio analysis:
Loss ratio			47.8	%			51.9	%
Expense ratio			40.7	%			41.7	%
Combined ratio			88.5	%			93.6	%

About Global Indemnity Limited and its subsidiaries

Global Indemnity Limited (NASDAQ:GBLI), through its several direct and indirect wholly owned subsidiary insurance and reinsurance 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 Limited’s four primary segments are:

 

•

United States Based Commercial Specialty

 

•

United States Based Specialty Property

 

•

United States Based Farm, Ranch, & Stable

 

•

Bermuda Based Reinsurance

The Company’s Commercial Specialty segment was formerly known as Commercial Lines. During the 1st quarter of 2019, the Company re-evaluated its Personal Lines segment and determined that Personal Lines should be bifurcated into two reportable segments: Specialty Property and Farm, Ranch, & Stable.

For more information, visit the Global Indemnity Limited’s website at http://www.globalindemnity.ky.

Forward-Looking Information

The forward-looking statements contained in this press release [1] do not address a number of risks and uncertainties. Investors are cautioned that Global Indemnity’s actual results may be materially different from the estimates expressed in, or implied, or projected by, the forward looking statements. These statements are based on estimates and information available to us at the time of this press release. All forward-looking statements in this press release are based on information available to Global Indemnity as of the date hereof. Please see Global Indemnity’s filings with the Securities and Exchange Commission for a discussion of risks and uncertainties which could impact the company and for a more detailed explication regarding forward-looking statements. Global Indemnity does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

[1] Disseminated pursuant to the “safe harbor” provisions of Section 21E of the Security Exchange Act of 1934.

Global Indemnity Limited’s Combined Ratio for the Three Months Ended March 31, 2019 and 2018    

For the three months ended March 31, 2019, the Company recorded a combined ratio of 88.5% compared to 93.6% for the three months ended March 31, 2018.

The results for the three months ended March 31, 2019 include $7.9 million in favorable development of prior year loss reserves, compared to $5.9 million in favorable development of prior year loss reserves for the three months ended March 31, 2018.

Global Indemnity Limited’s Gross and Net Premiums Written Results by Segment for the Three Months Ended March 31, 2019 and 2018

 

		Three Months Ended March 31,
		Gross Premiums Written												Net Premiums Written
		2019				2018				% Change				2019				2018				% Change
Commercial Specialty		$	64,213			$	53,773				19.4	%		$	55,170			$	48,306				14.2	%
Specialty Property			39,674				41,344				(4.0	%)			33,212				33,010				0.6	%
Farm, Ranch, & Stable			20,765				18,821				10.3	%			17,492				16,245				7.7	%
Reinsurance			17,549				10,309				70.2	%			17,542				10,309				70.2	%
Total		$	142,201			$	124,247				14.5	%		$	123,416			$	107,870				14.4	%

###

Note: Tables Follow

GLOBAL INDEMNITY LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

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

 

		For the Three Months Ended March 31,
		2019				2018
Gross premiums written		$	142,201			$	124,247
Net premiums written		$	123,416			$	107,870
Net premiums earned		$	122,089			$	108,002
Net investment income			7,219				11,404
Net realized investment gains (losses)			10,390				(316	)
Other income			488				554
Total revenues			140,186				119,644
Net losses and loss adjustment expenses			58,321				56,072
Acquisition costs and other underwriting expenses			49,743				45,003
Corporate and other operating expenses			3,205				9,260
Interest expense			5,023				4,861
Income before income taxes			23,894				4,448
Income tax expense (benefit)			4,294				(1,253	)
Net income		$	19,600			$	5,701
Weighted average shares outstanding–basic			14,154				14,055
Weighted average shares outstanding–diluted			14,315				14,286
Net income per share – basic		$	1.38			$	0.41
Net income per share – diluted		$	1.37			$	0.40
Cash dividends declared per share		$	0.25			$	0.25
Combined ratio analysis: (1)
Loss ratio			47.8	%			51.9	%
Expense ratio			40.7	%			41.7	%
Combined ratio			88.5	%			93.6	%

 

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

GLOBAL INDEMNITY LIMITED

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

 

ASSETS		(Unaudited) March 31, 2019				December 31, 2018
Fixed Maturities:
Available for sale securities, at fair value (amortized cost: 2019 – $1,291,128 and 2018 – $1,257,830)		$	1,294,555			$	1,235,155
Equity securities, at fair value			142,534				124,747
Other invested assets			48,705				50,753
Total investments			1,485,794				1,410,655
Cash and cash equivalents			37,874				99,497
Premiums receivable, net			92,477				87,679
Reinsurance receivables, net			102,346				114,418
Funds held by ceding insurers			44,902				49,206
Federal income taxes receivable			11,069				10,866
Receivable for securities sold			—				15
Deferred federal income taxes			40,943				48,589
Deferred acquisition costs			62,854				61,676
Intangible assets			21,888				22,020
Goodwill			6,521				6,521
Prepaid reinsurance premiums			19,041				20,594
Other assets			59,199				28,530
Total assets		$	1,984,908			$	1,960,266
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses		$	645,959			$	680,031
Unearned premiums			281,684				281,912
Ceded balances payable			14,573				14,994
Payables for securities purchased			5,252				—
Contingent commissions			7,170				10,636
Debt			294,581				288,565
Other liabilities			68,034				55,069
Total liabilities			1,317,253				1,331,207
Shareholders’ equity:
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued:10,223,976 and 10,171,954, respectively; A ordinary shares outstanding: 10,113,527 and 10,095,312, respectively; B ordinary shares issued and outstanding: 4,133,366 and 4,133,366, respectively			2				2
Additional paid-in capital (1)			438,783				438,182
Accumulated other comprehensive income (loss), net of taxes			1,669				(21,231	)
Retained earnings (1)			231,176				215,132
A ordinary shares in treasury, at cost: 110,449 and 76,642 shares, respectively			(3,975	)			(3,026	)
Total shareholders’ equity			667,655				629,059
Total liabilities and shareholders’ equity		$	1,984,908			$	1,960,266

 

(1)

The Company historically repurchased and redeemed 20.2 million shares for a total of $488 million. These share repurchases and redemptions are reflected through a $488 million reduction of the Company’s additional paid-in capital and retained earnings as of March 31, 2019 and December 31, 2018. Retained earnings are also net of $18 million and $14 million of cumulative historic Company dividends to shareholders as of March 31, 2019 and December 31, 2018, respectively.

GLOBAL INDEMNITY LIMITED

SELECTED INVESTMENT DATA

(Dollars in millions)

 

		Market Value as of
		(Unaudited) March 31, 2019				December 31, 2018
Fixed maturities		$	1,294.6			$	1,235.2
Cash and cash equivalents			37.9				99.5
Total bonds and cash and cash equivalents			1,332.5				1,334.7
Equities and other invested assets			191.2				175.5
Total cash and invested assets, gross			1,523.7				1,510.2
Payable for securities purchased			(5.3	)			—
Total cash and invested assets, net		$	1,518.4			$	1,510.2
		Total Investment Return (1) For the Three Months Ended March 31, (unaudited)
		2019				2018
Net investment income		$	7.2			$	11.4
Net realized investment gains			10.4				(0.3	)
Net unrealized investment gains			26.3				(17.6	)
Net realized and unrealized investment gains			36.7				(17.9	)
Total net investment income and gains		$	43.9			$	(6.5	)
Average total cash and invested assets		$	1,514.3			$	1,538.7
Total quarterly investment return %			2.9	%			(0.4%	)

 

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