Global Indemnity Plc Reports Third Quarter 2016 Financial Results

DUBLIN, Ireland, Nov. 03, 2016 (GLOBE NEWSWIRE) -- Global Indemnity plc (NASDAQ:GBLI) today reported net income for the nine months ended September 30, 2016 of $11.5 million or $0.66 per share and operating income of $17.3 million or $0.99 per share. As of September 30 th, book value per share was $44.55, an increase of 3.7% compared to book value per share of $42.98 at December 31, 2015.

Selected Operating and Balance Sheet Data (Dollars in millions, except per share data)
  For the Three Months Ended September 30,   For the Nine Months Ended September 30,
    2016       2015       2016       2015  
               
Gross Premiums Written $   133.6     $   150.1     $ 429.3     $ 459.5  
Net Premiums Written $   115.1     $   122.5     $ 357.2     $ 394.6  
               
Net income $    9.5     $   (3.7 )   $   11.5     $  14.2  
Net income (loss) per share $  0.54     $ (0.15 )   $   0.66     $   0.55  
               
Operating income $    8.3     $  3.7     $   17.3     $   19.4  
Operating income per share $    0.47     $  0.15     $   0.99     $   0.76  
               
Combined ratio analysis:              
Loss ratio   60.3       62.3       59.9       59.6  
Expense ratio (1)   40.3       40.8       41.4       39.4  
Combined ratio   100.6       103.1       101.3       99.0  
               
(1)  The expense ratio for the three months and nine months ended September 30, 2015 benefited approximately 0.8 points and 1.4 points, respectively, from a purchase accounting adjustment related to the purchase of American Reliable Insurance Company.

  As of September 30, 2016   As of  June 30, 2016
       
Book value per share $   44.55     $   43.91  
Shareholders' equity $   782.4     $   770.7  
Cash and invested assets (2) $ 1,528.2     $ 1,533.0  
               
(2) Including receivable/(payable) for securities sold/(purchased)          

About Global Indemnity plc and its subsidiaries

Global Indemnity plc (NASDAQ:GBLI), through its several direct and indirect wholly owned subsidiary insurance and reinsurance companies, provides both admitted and non-admitted specialty property and casualty insurance coverages and individual policyholder coverages in the United States, as well as reinsurance worldwide.  Global Indemnity plc's three primary segments are:
  • United States Based Commercial Lines Operations 
  • United States Based Personal Lines Operations 
  • Bermuda Based Reinsurance Operations

For more information, visit the Global Indemnity plc website at http://www.globalindemnity.ie.

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. Factors that could cause actual results to differ materially from those contemplated in the forward-looking statements include, but are not limited to, the risk that there may be difficulties in the continued integration of American Reliable business, which could result in a failure to realize the potential benefits of the acquisition, and the risk that American Reliable's or Global Indemnity's prospective insurance premiums, investment yield, or net earnings are less than anticipated (including as a result of unexpected events, competition, costs, charges or outlays whether as a consequence of the transaction or otherwise).  The foregoing review of factors that could cause actual financial or operating performance to differ materially from expectations is not exhaustive. Please see Global Indemnity's filings with the Securities and Exchange Commission for a discussion of additional risks and uncertainties which could impact the company and for a more detailed explication regarding forward-looking statements.  

1  Disseminated pursuant to the "safe harbor" provisions of Section 21E of the Security Exchange Act of 1934.

Global Indemnity plc's Combined Ratio for the Three and Nine Months Ended September 30, 2016 and 2015

The combined ratio is a key measure of insurance profitability.  The components comprising the combined ratio are as follows:
  Three Months Ended September 30,   Nine Months Ended September 30,
    2016       2015       2016       2015  
Loss Ratio:              
Current Accident Year              
Excluding Catastrophes   56.0       54.2       53.0       50.5  
Catastrophes   12.2       14.9       13.9       13.6  
Current Accident Year   68.2       69.1       66.9       64.1  
Changes to Prior Accident Year         (7.9 )     (6.8 )     (7.0 )     (4.5 )
Loss Ratio - Calendar Year   60.3       62.3       59.9       59.6  
Expense Ratio   40.3       40.8       41.4       39.4  
Combined Ratio   100.6       103.1       101.3       99.0  

For the three months ended September 30th, the calendar year loss ratio improved by 2.0 points to 60.3 in 2016 from 62.3 in 2015.

For the three months ended September 30, 2016, the current accident year loss ratio improved to 68.2 compared to 69.1 for the same period in 2015.
  • The current accident year property loss ratio improved by 2.6 point to 66.0 in 2016 from 68.6 in 2015 primarily due to the decrease in the severity of catastrophes experienced in 2016. 
  • The current accident year casualty loss ratio increased by 3.5 points to 74.2 in 2016 from 70.7 in 2015 primarily due to an increase in loss severity in the agriculture line.

Calendar year results for the three months ended September 30, 2016 include a 7.9 point reduction in the loss ratio related to prior accident years.  This was primarily driven by lower than expected claims frequency and severity experienced across multiple prior accident years within Commercial Lines, primarily related to general liability, as well as a reduction related to the Company's property treaties within the Reinsurance Operations.

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