Global Indemnity: Q3 Earnings Snapshot

Global Indemnity Group, LLC (NYSE:GBLI) reported strong Q3 2024 earnings, with net income up 77% to $33.9 million, driven by a 57% increase in operating income to $33.8 million. The company's Penn-America segment posted a 93.9% combined ratio, driven by improved non-catastrophe and catastrophe property results. Catastrophe losses declined 35% to $10.3 million, and investment income rose 18% to $46.3 million. AM Best affirmed GBLI's A (Excellent) rating for its U.S. insurance subsidiaries.


Key drivers behind Global Indemnity's strong Q3 performance were a 57% increase in operating income, driven by a 12% growth in Penn-America gross written premiums and a 17% increase in InsurTech segment revenue. Additionally, catastrophe losses declined 35%, contributing to a 95.2% combined ratio, a significant improvement from 99.2% in the same period last year.


Global Indemnity's underwriting income increased 120% in Q3 2024, driven by improved catastrophe and non-catastrophe property results, particularly in the Penn-America segment. This segment's underwriting income rose to $17.6 million, up from $9.7 million in 2023. Investment income grew 18% to $46.3 million, primarily due to an increase in book yield on the bond portfolio and growth in the investment portfolio. The company's combined ratio improved to 95.2% from 99.2% in 2023, reflecting enhanced underwriting performance.

The company's Q3 results indicate strong financial performance, with improved underwriting and investment income. The improvement in the Penn-America segment's underwriting income and the decline in catastrophe losses contribute to this positive outlook. However, the decrease in total gross written premiums and specialty products premiums may suggest a slowdown in new business. The company's A (Excellent) rating from AM Best and its stable book value per share suggest a solid financial foundation. Investors should monitor the company's ability to maintain growth and manage risks, such as the decline in new business.