Global Indemnity (GBLI) 7 Nov 24 2024 Q3 Earnings call transcript

The Global Indemnity Group recently held its Q3 2024 earnings call, shedding light on its financial performance and strategic plans for the future. The call, led by CEO Jay Brown and CFO Brian Riley, highlighted the company's strong financial position and its commitment to strategic growth and technological transformation.

Financial Performance and Strategic Growth

Through the first nine months of 2024, Global Indemnity Group has seen significant growth across its business segments. The insurance revenue momentum, as measured by gross premium, has improved, with total premium excluding terminated products up 12%. This growth is particularly notable in the Wholesale Commercial, InsurTech, and Assumed Reinsurance divisions, which saw a combined growth of 14%. The company's insurance underwriting performance has also been robust, with a 9-month combined ratio of 93.9 for the Penn-America segment. This performance is a testament to the company's focus on growing its insurance business at a compound annual growth rate of at least 10%, as outlined in its long-term goals.

Technological Transformation and Investments

One of the most significant themes emerging from the earnings call was Global Indemnity Group's strategic investment in technology as a competitive weapon. The company has embarked on a multi-year effort to transform its technology platforms, transaction, and information software and data storage. This includes moving about 2/3 of its servers to the cloud and transitioning to a cloud-based lakehouse for its data stores. The first transactional replacement application has already gone live, with plans to add special events for Wholesale Commercial and all remaining products for Wholesale in the next year. These technological advancements will not only improve operational efficiency but also enhance the company's ability to provide superior service to its customers.

Outlook and Future Plans

Looking ahead, Global Indemnity Group remains optimistic about its future prospects. The company's investment in technology and its focus on strategic growth are expected to yield positive results in the coming quarters. The management team is actively seeking new opportunities to expand its book of business and is looking to add new products and possibly enter new lines. Despite the ongoing runoff of its non-core segment, the company's financial position remains strong, with booked reserves solidly above current actuarial indications. The company's investment portfolio is also well-positioned to invest in longer duration maturities and higher yields, further bolstering its financial health.

Conclusion

In conclusion, Global Indemnity Group's Q3 2024 earnings call provided a comprehensive overview of the company's financial performance and strategic plans for the future. The company's focus on strategic growth, technological transformation, and operational efficiency is a clear indication of its commitment to delivering value to its shareholders and customers. With a robust financial position and a strong strategic outlook, Global Indemnity Group is well-positioned to capitalize on the opportunities ahead and navigate any challenges that may arise in the dynamic insurance industry.