EX-99.1 2 gbli-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

 

 

img266282701_0.gif

 

For Immediate Release — May 5, 2026

Global Indemnity Group, LLC Reports First Quarter 2026 Financial Results

Operating Income of $8.3 Million and Current Accident Year Combined Ratio of 94.9% Demonstrate Continued Underlying Underwriting Profitability on 5.4% Growth in Net Earned Premiums.

 

Wilmington, Del., (May 5, 2026) — Global Indemnity Group, LLC (Nasdaq: GBLI) (the "Company") today reported financial results for the three months ended March 31, 2026. Operating income was $8.3 million, or $0.57 per share, compared to an operating loss of $4.1 million, or ($0.30) per share in 2025. Net income available to common shareholders was $4.1 million, or $0.29 per share, compared to a net loss of $4.1 million, or ($0.30) per share in 2025. Current accident year underwriting income increased to $5.5 million in 2026, growth of 4% over 2025 excluding the California Wildfires, with a 54.8% loss ratio and a 94.9% combined ratio. Pretax Adjusted Operating Contribution of $20.0 million and Adjusted Return on Equity of 12.5% were in line with prior year.

 

Highlights of Consolidated Results for the Three Months Ended March 31, 2026

 

As-Reported Operating Performance
•
Operating income of $8.3 million, or $0.57 per share, compared to an operating loss of $4.1 million, or ($0.30) per share, in 2025. Net income available to common shareholders of $4.1 million, or $0.29 per share, compared to a net loss of $4.1 million, or ($0.30) per share, in 2025. Both measures for 2025 included $12.2 million of after-tax loss from the January 2025 California Wildfires ("California Wildfires").
•
Calendar year combined ratio improved 16.6 points to 95.1% compared to 111.7% in 2025, driven primarily by the impact of the California Wildfires in 2025. The loss ratio remains strong at 54.8% driving underwriting income.

 

Operating Performance (excluding California Wildfires)
•
Current accident year underwriting income grew 4% to $5.5 million compared to $5.3 million in 2025 supported by 5.4% growth in net earned premiums to $98.4 million.
•
Current accident year combined ratio of 94.9% was in line with 94.8% in 2025 reflecting stable underlying loss experience and a stable expense ratio.
•
Operating income of $8.3 million, or $0.57 per share, compared to $8.1 million, or $0.57 per share, in 2025.

 

Investment Results

•
Net investment income of $12.2 million compared to $14.8 million in 2025 reflecting a $2.3 million market value decline on a single limited partnership position for which the Company expects to record a full recovery in the second quarter of 2026 and an increased allocation to U.S. Treasuries.
•
Total investment return of $6.7 million, or 1.9% annualized, compared to $19.3 million, or 5.4%, in 2025 primarily driven by mark-to-market adjustments on fixed income securities due to an increase in Treasury rates and which are expected to recover.

 

 

 

Premium Growth
•
Gross written premiums of $96.5 million compared to $98.7 million in 2025. Excluding terminated business in 2025, gross written premiums were down 0.7%.
o
Wholesale Commercial: $61.5 million, down 5.2% from $64.9 million, reflects the Company maintaining pricing and return standards amidst competitive market conditions, particularly as regards property rate reductions. Wholesale Commercial’s property rate change was flat for the first quarter of 2026.
o
Vacant Express: $11.5 million, up 4.9%, and Collectibles: $4.6 million, up 12.6%, driven by premium rate increases, new agency appointments, and organic growth from existing agents.
o
Specialty Products: $7.7 million, up 2.4% from $7.6 million, with growth from new products and existing programs more than offsetting the impact of terminated business; excluding terminated products, Specialty Products grew 21.3%.
o
Assumed Reinsurance: $11.2 million, compared to $10.9 million, reflecting new treaties incepting during 2025 and 2026.

 

Capital Position and Book Value

•
Common shareholders’ equity of $700.1 million at March 31, 2026 compared to $702.6 million at December 31, 2025; impacted by $2.6 million of unrealized losses, net of tax, within the fixed income portfolio due to an increase in Treasury rates.
•
Book value per share of $47.92 at March 31, 2026 compared to $48.96 at December 31, 2025.
•
The Company paid dividends of $5.1 million, or $0.35 per common share, during the quarter. Since its 2003 initial public offering, the Company has returned $654.6 million to shareholders, including $522.2 million in share repurchases and $132.4 million in dividends and distributions.

 

Selected Consolidated Operating Information for the Three Months Ended March 31,

 

$ in Millions, except per share data

 

 

 

 

 

 

 

 

 

 

2026

 

 

2025

 

Gross written premiums

 

$

96.5

 

 

$

98.7

 

Gross written premiums - Belmont Core

 

$

96.5

 

 

$

98.4

 

Investment income

 

$

12.2

 

 

$

14.8

 

Annualized investment return

 

 

1.9

%

 

 

5.4

%

Underwriting income (loss)

 

$

5.3

 

 

$

(10.5

)

Underwriting income (loss), current accident year

 

$

5.5

 

 

$

(10.3

)

Underwriting income, current accident year, excluding California Wildfires

 

$

5.5

 

 

$

5.3

 

Corporate expenses

 

$

9.0

 

 

$

9.5

 

Operating income (loss)

 

$

8.3

 

 

$

(4.1

)

Operating income excluding California Wildfires

 

$

8.3

 

 

$

8.1

 

Pretax adjusted operating contribution (1)

 

$

20.0

 

 

$

20.1

 

Net income (loss) available to common shareholders

 

$

4.1

 

 

$

(4.1

)

Net income available to common shareholders excluding California Wildfires

 

$

4.1

 

 

$

8.1

 

Adjusted return on equity, annualized, excluding California Wildfires (2)

 

 

12.5

%

 

 

12.5

%

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

Net income (loss) available to common shareholders per share

 

$

0.29

 

 

$

(0.30

)

Net income available to common shareholders per share excluding California Wildfires

 

$

0.29

 

 

$

0.58

 

Operating income (loss) per share

 

$

0.57

 

 

$

(0.30

)

Operating income per share excluding California Wildfires

 

$

0.57

 

 

$

0.57

 

 

 

 

 

 

 

 

Combined ratio:

 

 

 

 

 

 

Loss ratio

 

 

54.8

%

 

 

71.5

%

Expense ratio

 

 

40.3

%

 

 

40.2

%

Combined ratio

 

 

95.1

%

 

 

111.7

%

Combined ratio, current accident year

 

 

94.9

%

 

 

111.5

%

Combined ratio, current accident year excluding California Wildfires

 

 

94.9

%

 

 

94.8

%

(1)
Equals investment income plus underwriting income for current accident year excluding losses and loss adjustment expenses incurred from California Wildfires and market value decline on a single limited partnership position that the Company expects to record a full recovery in the second quarter of 2026.
(2)
Excludes corporate expenses, investment income on excess capital, and prior year underwriting income (loss).

2

 

 

Segment Income (Loss) for the Three Months Ended March 31,

 

$ in Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency and
Insurance
Services

 

 

Belmont Core

 

 

Belmont
Non-Core

 

 

Eliminations

 

 

Consolidated

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earned premiums

 

$

—

 

 

$

—

 

 

$

98.4

 

 

$

92.3

 

 

$

—

 

 

$

1.0

 

 

$

—

 

 

$

—

 

 

$

98.4

 

 

$

93.3

 

Commissions and fee income

 

 

13.2

 

 

 

14.4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(12.4

)

 

 

(14.0

)

 

 

0.8

 

 

 

0.4

 

Total revenues

 

$

13.2

 

 

$

14.4

 

 

$

98.4

 

 

$

92.3

 

 

$

—

 

 

$

1.0

 

 

$

(12.4

)

 

$

(14.0

)

 

$

99.2

 

 

$

93.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss and loss adjustment expenses

 

$

—

 

 

$

—

 

 

$

54.3

 

 

$

66.5

 

 

$

—

 

 

$

0.5

 

 

$

(0.4

)

 

$

(0.3

)

 

$

53.9

 

 

$

66.7

 

Acquisition costs and other operating expenses

 

 

13.6

 

 

 

12.6

 

 

 

38.9

 

 

 

37.4

 

 

 

0.3

 

 

 

1.2

 

 

 

(12.0

)

 

 

(13.7

)

 

 

40.8

 

 

 

37.5

 

Total losses and expenses

 

$

13.6

 

 

$

12.6

 

 

$

93.2

 

 

$

103.9

 

 

$

0.3

 

 

$

1.7

 

 

$

(12.4

)

 

$

(14.0

)

 

$

94.7

 

 

$

104.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment income (loss)

 

$

(0.4

)

 

$

1.8

 

 

$

5.2

 

 

$

(11.6

)

 

$

(0.3

)

 

$

(0.7

)

 

$

—

 

 

$

—

 

 

$

4.5

 

 

$

(10.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment income (loss) excluding California Wildfires

 

$

(0.4

)

 

$

1.8

 

 

$

5.2

 

 

$

4.0

 

 

$

(0.3

)

 

$

(0.7

)

 

$

—

 

 

$

—

 

 

$

4.5

 

 

$

5.1

 

 

Segment Written Premiums for the Three Months Ended March 31,

 

$ in Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Belmont Core

 

 

Belmont Non-Core

 

 

Total

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Gross written premiums

 

$

96.5

 

 

$

98.4

 

 

$

(0.1

)

 

$

0.3

 

 

$

96.5

 

 

$

98.7

 

Net written premiums

 

$

92.6

 

 

$

95.6

 

 

$

(0.1

)

 

$

0.2

 

 

$

92.6

 

 

$

95.9

 

 

Belmont Core Gross Written Premiums for the Three Months Ended March 31,

$ In Millions

 

 

 

 

 

 

 

 

 

 

 

2026

 

 

2025

 

 

% Change

Wholesale Commercial

 

$

61.5

 

 

$

64.9

 

 

(5.2%)

Vacant Express

 

 

11.5

 

 

 

10.9

 

 

4.9%

Collectibles

 

 

4.6

 

 

 

4.1

 

 

12.6%

Specialty Products

 

 

7.7

 

 

 

7.6

 

 

2.4%

Assumed Reinsurance

 

 

11.2

 

 

 

10.9

 

 

2.5%

Gross written premiums

 

 

96.5

 

 

 

98.4

 

 

(1.9%)

Terminated business

 

 

—

 

 

 

(1.2

)

 

-

Total gross written premiums, excluding terminated business

 

$

96.5

 

 

$

97.2

 

 

(0.7%)

 

 

 

3

 

Selected Consolidated Balance Sheet Data

 

$ and Shares in Millions, except per share data

 

 

 

 

 

 

 

 

 

 

March 31, 2026

 

 

December 31, 2025

 

Cash and invested assets, net

 

$

1,390.5

 

 

$

1,420.2

 

Total assets

 

$

1,680.1

 

 

$

1,720.8

 

Shareholders’ equity

 

$

704.1

 

 

$

706.6

 

 

 

 

 

 

 

 

Book value per share

 

$

47.92

 

 

$

48.96

 

Book value per share plus cumulative

 

 

 

 

 

 

 dividends and excluding AOCI

 

$

57.52

 

 

$

58.04

 

Shares Outstanding

 

 

14.6

 

 

 

14.4

 

 

 

Change in Consolidated Common Shareholders’ Equity and Book Value per Share

 

$ and Shares in Millions, except per share data

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shareholders' Equity

 

 

Common Shares

 

 

Book Value Per Share

 

Balance at January 1, 2026

 

$

702.6

 

 

 

14.4

 

 

$

48.96

 

Net income

 

 

4.2

 

 

 

—

 

 

 

0.29

 

Fair value of fixed maturities

 

 

(2.6

)

 

 

—

 

 

 

(0.18

)

Stock compensation / share issuance

 

 

1.0

 

 

 

0.2

 

 

 

(0.80

)

Dividends

 

 

(5.1

)

 

 

—

 

 

 

(0.35

)

Balance at March 31, 2026

 

$

700.1

 

 

 

14.6

 

 

$

47.92

 

 

 

Market Value of Consolidated Investments

 

 

 

 

 

 

$ in Millions

 

 

 

 

 

 

 

 

 

 

March 31, 2026

 

 

December 31, 2025

 

Fixed maturities

 

$

1,323.6

 

 

$

1,325.5

 

Cash and cash equivalents

 

 

34.8

 

 

 

65.5

 

Total fixed maturities and cash and cash equivalents

 

 

1,358.4

 

 

 

1,391.0

 

Equities and other invested assets

 

 

36.6

 

 

 

50.8

 

Total cash and invested assets, gross

 

 

1,395.0

 

 

 

1,441.8

 

Payable for securities

 

 

(4.5

)

 

 

(21.6

)

Total cash and invested assets, net

 

$

1,390.5

 

 

$

1,420.2

 

 

 

Total Pre-Tax Consolidated Investment Return

 

Three Months Ended March 31,

 

$ in Millions

 

 

 

 

 

 

 

 

 

 

2026

 

 

2025

 

Fixed maturities

 

$

13.6

 

 

$

14.8

 

Equities

 

 

0.6

 

 

 

0.1

 

Limited partnerships

 

 

(2.0

)

 

 

(0.1

)

Net investment income

 

$

12.2

 

 

$

14.8

 

 

 

 

 

 

 

 

Net realized investment gains (losses)

 

 

(2.2

)

 

 

0.1

 

Net unrealized investment gains (losses)

 

 

(3.3

)

 

 

4.4

 

Net realized and unrealized investment return

 

 

(5.5

)

 

 

4.5

 

 

 

 

 

 

 

 

Total investment return

 

$

6.7

 

 

$

19.3

 

 

 

 

 

 

 

 

Average total cash and invested assets

 

$

1,405.4

 

 

$

1,436.2

 

 

 

 

 

 

 

 

Total annualized investment return %

 

 

1.9

%

 

 

5.4

%

 

 

4

 

Global Indemnity Group, LLC

 

Consolidated Statements of Operations for the Three Months Ended March 31,

 

$ and Shares in Thousands, expect per share data

 

(Unaudited)

 

 

 

 

 

 

 

2026

 

 

2025

 

Gross written premiums

 

$

96,450

 

 

$

98,675

 

Net written premiums

 

$

92,568

 

 

$

95,864

 

 

 

 

 

 

 

 

Net earned premiums

 

$

98,355

 

 

$

93,316

 

Net investment income

 

 

12,218

 

 

 

14,782

 

Net realized investment gains (losses)

 

 

(2,243

)

 

 

136

 

Other income

 

 

847

 

 

 

417

 

Total revenues

 

 

109,177

 

 

 

108,651

 

 

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

53,861

 

 

 

66,738

 

Acquisition costs and other operating expenses

 

 

40,763

 

 

 

37,507

 

Corporate expenses

 

 

9,038

 

 

 

9,500

 

Income (loss) before income taxes

 

 

5,515

 

 

 

(5,094

)

Income tax expense (benefit)

 

 

1,269

 

 

 

(1,105

)

Net income (loss)

 

 

4,246

 

 

 

(3,989

)

Less: preferred stock distributions

 

 

110

 

 

 

110

 

Net income (loss) available to common shareholders

 

$

4,136

 

 

$

(4,099

)

 

 

 

 

 

 

 

Per share data:

 

 

 

 

 

 

Net income (loss) available to common shareholders (1)

 

 

 

 

 

 

Basic

 

$

0.29

 

 

$

(0.30

)

Diluted

 

$

0.29

 

 

$

(0.30

)

Weighted-average number of shares outstanding

 

 

 

 

 

 

Basic

 

 

14,351

 

 

 

13,867

 

Diluted

 

 

14,405

 

 

 

13,867

 

 

 

 

 

 

 

 

Cash distributions declared per common share

 

$

0.35

 

 

$

0.35

 

 

 

 

 

 

 

 

Combined ratio analysis:

 

 

 

 

 

 

Loss ratio

 

 

54.8

%

 

 

71.5

%

Expense ratio

 

 

40.3

%

 

 

40.2

%

Combined ratio

 

 

95.1

%

 

 

111.7

%

 

(1)
For the quarter ended March 31, 2025, “weighted average shares outstanding - basic” was used to calculate “diluted earnings per share” due to a net loss for the period.

 

 

 

 

5

 

Global Indemnity Group, LLC

 

Consolidated Balance Sheets

 

$ in Thousands

 

 

 

 

 

 

 

 

 

 

(Unaudited)
March 31, 2026

 

 

December 31, 2025

 

ASSETS

 

 

 

 

 

 

Fixed maturities:

 

 

 

 

 

 

Available for sale, at fair value (amortized cost: $1,331,715 and $1,330,310; net of allowance for expected credit losses of $0 at March 31, 2026 and December 31, 2025)

 

$

1,323,562

 

 

$

1,325,502

 

Equity securities, at fair value

 

 

26,409

 

 

 

33,673

 

Other invested assets

 

 

10,183

 

 

 

17,097

 

Total investments

 

 

1,360,154

 

 

 

1,376,272

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

34,830

 

 

 

65,542

 

Premium receivables, net of allowance for expected credit losses of

 

 

 

 

 

 

$3,687 at March 31, 2026 and $3,640 at December 31, 2025

 

 

71,411

 

 

 

66,969

 

Reinsurance receivables, net of allowance for expected credit losses of

 

 

 

 

 

 

 $1,488 at March 31, 2026 and December 31, 2025

 

 

64,416

 

 

 

62,595

 

Funds held by ceding insurers

 

 

21,979

 

 

 

22,114

 

Deferred income taxes

 

 

21,818

 

 

 

20,076

 

Deferred acquisition costs

 

 

40,226

 

 

 

41,183

 

Intangible assets

 

 

16,729

 

 

 

16,845

 

Goodwill

 

 

4,820

 

 

 

4,820

 

Prepaid reinsurance premiums

 

 

4,196

 

 

 

3,607

 

Income tax receivable

 

 

—

 

 

 

2,617

 

Lease right of use assets

 

 

7,806

 

 

 

8,166

 

Other assets

 

 

31,731

 

 

 

29,956

 

Total assets

 

$

1,680,116

 

 

$

1,720,762

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Unpaid losses and loss adjustment expenses

 

$

747,143

 

 

$

750,191

 

Unearned premiums

 

 

177,530

 

 

 

182,728

 

Reinsurance balances payable

 

 

3,098

 

 

 

1,860

 

Payable for securities

 

 

4,467

 

 

 

21,594

 

Contingent commissions

 

 

2,828

 

 

 

7,159

 

Income tax payable

 

 

196

 

 

 

—

 

Lease liabilities

 

 

7,902

 

 

 

8,331

 

Other liabilities

 

 

32,842

 

 

 

42,309

 

Total liabilities

 

$

976,006

 

 

$

1,014,172

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

Series A cumulative fixed rate preferred shares, $1,000 par value;

 

 

 

 

 

 

100,000,000 shares authorized, shares issued and outstanding:

 

 

 

 

 

 

4,000 and 4,000 shares, respectively, liquidation preference:

 

 

 

 

 

 

$1,000 per share and $1,000 per share, respectively

 

 

4,000

 

 

 

4,000

 

Common shares: no par value; 900,000,000 common shares

 

 

 

 

 

 

authorized; class A common shares issued: 12,103,283 and 11,844,995, respectively (inclusive of class A common shares designated as class A-2 common shares of 780,000 and 550,000, respectively); class A common shares

 

 

 

 

 

 

outstanding:10,815,515 and 10,557,227, respectively (inclusive of class A common shares designated as class A-2 common shares of 780,000 and

 

 

 

 

 

 

 550,000, respectively); class B common shares issued and outstanding: 3,793,612 and 3,793,612, respectively

 

 

—

 

 

 

—

 

Additional paid-in capital (1)

 

 

466,723

 

 

 

465,720

 

Accumulated other comprehensive income (loss), net of tax

 

 

(6,596

)

 

 

(4,000

)

Retained earnings (1)

 

 

272,675

 

 

 

273,562

 

Class A common shares in treasury, at cost: 1,287,768 and 1,287,768 shares, respectively

 

 

(32,692

)

 

 

(32,692

)

Total shareholders’ equity

 

 

704,110

 

 

 

706,590

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

1,680,116

 

 

$

1,720,762

 

 

(1)
Since the Company’s initial public offering in 2003, the Company has returned $654.6 million to shareholders, including $522.2 million in share repurchases and $132.4 million in dividends/distributions.

6

 

 

Reconciliation of Non-GAAP Measures

 

Summary of Consolidated Operating Income (Loss) for the Three Months Ended March 31, (1)

 

$ and Shares in Millions, except per share data

 

 

 

 

 

 

 

 

 

 

2026

 

 

2025

 

Operating income (loss), net of tax (2)

 

$

8.3

 

 

$

(4.1

)

Net realized investment gains (losses), net of tax

 

 

(1.8

)

 

 

0.1

 

Market value decline on limited partnership investment

 

 

(2.3

)

 

 

-

 

Net income (loss)

 

$

4.2

 

 

$

(4.0

)

 

 

 

 

 

 

 

Weighted average shares outstanding – diluted

 

 

14.4

 

 

 

13.9

 

 

 

 

 

 

 

 

Operating income (loss) per share – diluted (3)

 

$

0.57

 

 

$

(0.30

)

 

 

(1)
Operating income (loss), a non-GAAP financial measure, is equal to net income (loss) excluding after-tax net realized investment gains (losses) and other unique charges not related to operations. Operating income (loss) is not a substitute for net income (loss) determined in accordance with GAAP, and investors should not place undue reliance on this measure.
(2)
Operating income (loss), net of tax, excludes preferred shareholder distributions of $0.1 million for each of the three months ended March 31, 2026 and 2025.
(3)
The operating income (loss) per share calculation is net of preferred shareholder distributions of $0.1 million for each of the three months ended March 31, 2026 and 2025.

 

Reconciliation of Non-GAAP Measures

 

Pretax Adjusted Operating Contribution for the Three Months Ended March 31,

 

$ in Millions

 

 

 

 

 

 

 

 

 

 

2026

 

 

2025

 

Investment income

 

$

12.2

 

 

$

14.8

 

Underwriting income (loss), current accident year

 

 

5.5

 

 

 

(10.3

)

Adjustments

 

 

 

 

 

 

California Wildfires net losses and loss adjustment expenses

 

 

—

 

 

 

15.6

 

Market value decline on limited partnership investment

 

 

2.3

 

 

 

—

 

Pretax adjusted operating contribution (1)

 

$

20.0

 

 

$

20.1

 

 

(1)
Pretax adjusted operating contribution, a non-GAAP financial measure, is equal to investment income plus underwriting income for current accident year excluding losses and loss adjustment expenses incurred from California Wildfires and market value decline on a single limited partnership position that the Company expects to record a full recovery in the second quarter of 2026. Pretax adjusted operating contribution is not a substitute for income (loss) before income taxes determined in accordance with GAAP, and investors should not place undue reliance on this measure.

 

Reconciliation of Non-GAAP Measures

 

Adjusted Return on Equity (ROE) for the Three Months Ended March 31,

 

$ in Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) after tax (1)

 

 

Average Return on Equity (3)

 

Average Equity (2)

 

 

Income (loss) after tax (1)

 

 

Average Return on Equity (3)

 

Average Equity (2)

 

Operating income (loss)

 

$

 

8.3

 

 

 

4.7

 

%

 

$

 

705.4

 

 

$

 

(4.1

)

 

 

(2.4

)

%

 

$

 

688.1

 

Adjustments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on excess capital

 

 

 

(2.2

)

 

 

1.1

 

%

 

 

 

-

 

 

 

 

(2.1

)

 

 

(3.2

)

%

 

 

 

-

 

Corporate expenses

 

 

 

6.9

 

 

 

6.6

 

%

 

 

 

-

 

 

 

 

7.5

 

 

 

6.8

 

%

 

 

 

-

 

California wildfires losses

 

 

 

-

 

 

 

-

 

%

 

 

 

-

 

 

 

 

12.2

 

 

 

11.2

 

%

 

 

 

-

 

Prior accident year underwriting loss

 

 

 

0.1

 

 

 

0.1

 

%

 

 

 

-

 

 

 

 

0.1

 

 

 

0.1

 

%

 

 

 

-

 

  Total adjustments, net of tax

 

 

 

4.8

 

 

 

7.8

 

%

 

 

 

-

 

 

 

 

17.7

 

 

 

14.9

 

%

 

 

 

-

 

Adjusted income

 

$

 

13.1

 

 

 

12.5

 

%

 

$

 

418.3

 

 

$

 

13.6

 

 

 

12.5

 

%

 

$

 

435.1

 

 

(1)
Adjusted income, a non-GAAP financial measure, is equal to operating income (loss) excluding after-tax investment income on excess capital plus the after-tax impact of corporate expenses, California wildfires losses and prior accident year underwriting income (loss). Adjusted income is not a substitute for net income determined in accordance with GAAP, and investors should not place undue reliance on this measure.
(2)
Average equity is the average of the beginning and ending equity for the calendar year, adjusted for average excess capital for the calendar year.
(3)
Adjusted return on equity is equal to adjusted income divided by average equity, annualized.

 

7

 

 

Reconciliation of Non-GAAP Financial Measures and Ratios for the Three Months Ended March 31,

$ in Thousands

 

The following reconciles the non-GAAP financial measures or ratios, which excludes the impact of prior accident year adjustments and the California Wildfires, to its most directly comparable GAAP measure or ratio. The Company believes the non-GAAP financial measures or ratios are useful to investors when evaluating the Company's underwriting performance as trends in the Company's segments may be obscured by prior accident year adjustments and the California Wildfires. These non-GAAP financial measures or ratios should not be considered as a substitute for its most directly comparable GAAP measure or ratio and do not reflect the overall underwriting profitability of the Company.

 

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

Consolidated current accident year underwriting income

 

 

 

 

 

 

Underwriting income (loss) (1)

 

$

5,323

 

 

$

(10,512

)

Effect of prior accident year

 

 

159

 

 

 

184

 

Current accident year underwriting income (loss) (2)

 

 

5,482

 

 

 

(10,328

)

California Wildfires net losses and loss adjustment expenses

 

 

—

 

 

 

15,600

 

Current accident year underwriting income excluding California Wildfires (2)

 

$

5,482

 

 

$

5,272

 

 

 

 

 

 

 

 

Consolidated underwriting income

 

 

 

 

 

 

Underwriting income (loss) (1)

 

$

5,323

 

 

$

(10,512

)

California Wildfires net losses and loss adjustment expenses

 

 

—

 

 

 

15,600

 

Underwriting income excluding California Wildfires (2)

 

$

5,323

 

 

$

5,088

 

 

 

 

 

 

 

 

Belmont Core segment income

 

 

 

 

 

 

Belmont Core segment income (loss) (1)

 

$

5,242

 

 

$

(11,582

)

California Wildfires net losses and loss adjustment expenses

 

 

—

 

 

 

15,600

 

Belmont Core segment income excluding California Wildfires (2)

 

$

5,242

 

 

$

4,018

 

 

 

 

 

 

 

 

Consolidated segment income

 

 

 

 

 

 

Consolidated segment income (loss) (1)

 

$

4,578

 

 

$

(10,512

)

California Wildfires net losses and loss adjustment expenses

 

 

—

 

 

 

15,600

 

Consolidated segment income excluding California Wildfires (2)

 

$

4,578

 

 

$

5,088

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

 

 

 

 

 

Net income (loss) available to common shareholders (1)

 

$

4,136

 

 

$

(4,099

)

California Wildfires net losses and loss adjustment expenses (net of tax) (3)

 

 

—

 

 

 

12,216

 

Net income available to common shareholders excluding California Wildfires (2)

 

$

4,136

 

 

$

8,117

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

Operating income (loss) (4)

 

$

8,271

 

 

$

(4,105

)

California Wildfires net losses and loss adjustment expenses (net of tax) (3)

 

 

—

 

 

 

12,216

 

Operating income excluding California Wildfires (2)

 

$

8,271

 

 

$

8,111

 

 

 

 

 

 

 

 

Current accident year combined ratio

 

 

 

 

 

 

Combined ratio (1)

 

 

95.1

%

 

 

111.7

%

Effect of prior accident year

 

 

(0.2

%)

 

 

(0.2

%)

Current accident year combined ratio (2)

 

 

94.9

%

 

 

111.5

%

Impact of California Wildfires

 

 

—

 

 

 

(16.7

%)

Current accident year combined ratio excluding California Wildfires (2)

 

 

94.9

%

 

 

94.8

%

 

(1) Most directly comparable GAAP measure / ratio

(2) Non-GAAP financial measure / ratio

(3) Represents net losses and loss adjustment expenses of $15.6 million less tax benefit of $3.4 million.

(4) See previous table for reconciliation of operating income to net income which is the most directly comparable GAAP measure.

 

8

 

About Global Indemnity Group, LLC

Global Indemnity Group, LLC (Nasdaq: GBLI) is a publicly traded holding company with a diversified portfolio of property and casualty insurance-related entities.

Katalyx Holdings LLC includes:

•
Four agencies focused on sourcing, underwriting, and servicing primary and assumed reinsurance business: Penn-America Insurance Services, LLC; Valyn Re LLC; J.H. Ferguson & Associates, LLC (including Vacant Express); and Collectibles Insurance Services, LLC.
•
Three specialized insurance service businesses: Kaleidoscope Insurance Technologies, Inc., a developer of proprietary underwriting and policy systems supporting Katalyx’s agencies and broader digital initiatives; Sayata, an AI-enabled digital marketplace and agency for small commercial insurance; and Liberty Insurance Adjustment Agency, Inc., a provider of claims evaluation, adjustment, and related services.

 

Belmont Holdings GX, Inc. consists of five statutory insurance carriers, each rated “A” (Excellent) by AM Best:
Penn-America Insurance Company, United National Insurance Company, Penn-Patriot Insurance Company, Diamond State Insurance Company, and Penn-Star Insurance Company.

For more information, visit the Company’s website at www.gbli.com.

 

Forward-Looking Statements

The forward-looking statements in this press release are made pursuant to the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934 and involve a number of risks and uncertainties. Actual results may differ materially from those expressed or implied in such statements. These statements are based on management’s current expectations and information available as of the date of this release.

 

Factors that could cause actual results to differ include, among others, risks related to the timing and execution of the Company’s strategy, and other operational or strategic risks. Additional details regarding these and other risks and uncertainties can be found in the Company’s filings with the Securities and Exchange Commission. Global Indemnity undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances.

 

Investor / Media Contact: Scott Eckstein / Patrick Federle KCSA Strategic Communications | (212) 896-1210 | GBLI@kcsa.com

 

9