FORM 10-K: ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
The report is an annual report filed by Global Indemnity Group, LLC with the Securities and Exchange Commission (SEC) for the fiscal year ended December 31, 2024. The company’s class A common shares are listed on the New York Stock Exchange under the ticker symbol GBLI. The report includes financial statements and other information required by the SEC. The company’s aggregate market value of common equity held by non-affiliates was $215.6 million as of the last business day of the second fiscal quarter. As of March 11, 2025, the company had outstanding 10,464,587 class A common shares and 3,793,612 class B common shares. The report also includes information about the company’s executive officers, directors, and corporate governance.
Overview of the Company’s Financial Performance
Global Indemnity Group, LLC is a diversified insurance holding company that provides a range of specialty casualty and property insurance products. The company operates through two main business segments: Penn-America and Non-Core Operations.
The Penn-America segment comprises the company’s core insurance operations, including United National Insurance Company, Diamond State Insurance Company, Penn-America Insurance Company, Penn-Star Insurance Company, and Penn-Patriot Insurance Company. This segment focuses on specialty commercial, property, and casualty insurance products.
The Non-Core Operations segment represents lines of business that have been de-emphasized or are no longer being written, such as manufactured and dwelling home business, farm and equine business, and certain personal lines products.
In 2024, the company reported net income of $43.2 million, up from $25.4 million in 2023. This improvement was driven by strong underwriting performance in the Penn-America segment and higher investment income.
Revenue and Profit Trends
The company’s total revenues decreased by 20.3% in 2024 to $378.4 million, primarily due to a 20.4% decline in net earned premiums. This decrease was largely attributable to the runoff of premiums in the Non-Core Operations segment as the company exited certain lines of business.
In contrast, the Penn-America segment saw a 4.3% increase in net earned premiums in 2024, driven by growth in the Wholesale Commercial, InsurTech, and Assumed Reinsurance divisions. This segment’s accident year combined ratio improved to 94.4% in 2024 from 95.2% in 2023, reflecting improved underwriting performance.
The company’s net investment income increased by 12.5% in 2024 to $62.4 million, primarily due to strategies employed to take advantage of rising interest rates, which resulted in a higher book yield on the fixed maturities portfolio.
Strengths and Weaknesses
Strengths:
- Strong underwriting performance in the core Penn-America segment, with improved accident year combined ratios
- Successful strategies to increase investment income by taking advantage of rising interest rates
- Diversified product offerings and distribution channels in the Penn-America segment
Weaknesses:
- Runoff of premiums and underwriting losses in the Non-Core Operations segment as the company exits certain lines of business
- Potential exposure to credit risk from investments in subprime and Alt-A securities, although the company has mitigated this risk
Outlook and Future Prospects
The company’s future outlook appears positive, with the Penn-America segment expected to continue driving growth and profitability. The company’s recent internal reorganization, which created separate businesses for each of Penn-America’s divisions and established specialized service companies, is aimed at improving operational efficiency and positioning the company for further expansion.
However, the company will need to carefully manage the runoff of the Non-Core Operations segment to minimize any adverse impact on overall financial performance. Additionally, the company’s ability to maintain strong investment returns will be crucial, as rising interest rates could lead to declines in the market value of its fixed income portfolio.
Overall, the company’s diversified product offerings, improved underwriting discipline, and proactive capital management strategies suggest it is well-positioned to navigate the challenges and capitalize on the opportunities in the specialty insurance market.
