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Global Indemnity plc Reports First Quarter 2013 Financial Results.

      Global Indemnity plc Reports First Quarter 2013 Financial Results.

  PR Newswire

  DUBLIN, May 7, 2013

DUBLIN, May 7, 2013 /PRNewswire/ -- Global Indemnity plc (NASDAQ:GBLI) today
reported net income for the three months ended March 31, 2013 of $12.4 million
or $0.49 per share. As of March 31st, book value per share was $32.91, an
increase of 2.4% compared to book value per share of $32.15 at December 31,
2012.

(Logo: http://photos.prnewswire.com/prnh/20100803/LT45156LOGO )

Selected Operating and Balance Sheet Data (Dollars in millions, except per
share data)

                                                                     As of
                For the Three Months                      As of     December
                  Ended March 31,                       March 31,     31,
                  2013        2012                        2013        2012
Gross premiums                        Book value per          $ 
written           $ 74.9     $ 57.8  share                32.91  $  32.15
Net premiums                          Shareholders'           $ 
written           $ 71.5     $ 50.3  equity               827.6  $  806.6
                                      Cash and invested
                                      assets            $ 1,539.4   $ 1,534.0
Net income        $ 12.4     $ 10.9
Net income per
share             $ 0.49     $ 0.38
Operating
income           $  8.5    $  9.1
Operating
income per
share             $ 0.34     $ 0.32

Cynthia Y. Valko, Chief Executive Officer, stated, "I am pleased with our 1st
quarter results. We experienced growth in both our Insurance and Reinsurance
segments. We continued to see rate increases on renewal business in the U.S.
and Wind River signed several new property treaties. Our loss ratio improved
due to actions that were taken to exit unprofitable business in late 2011.
Although yields are down, our portfolio had an annualized return of 7.5%
largely driven by the performance of our common stock portfolio."

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
in the United States, as well as reinsurance throughout the world. Global
Indemnity plc's two primary divisions are:

  *United States Based Insurance Operations
  *Bermuda Based Reinsurance Operations

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

Forward-Looking Information

Forward-looking statements contained in this press release are made under the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995 and involve a number of risks and uncertainties. Investors should take
caution that actual results may be materially different from the estimates
expressed in, or implied, or projected by, the forward looking statements.
Please see the Company's periodic reports filed with the Securities and
Exchange Commission for a discussion of the risks and uncertainties which may
affect it and for a more detailed discussion of the cautionary note regarding
forward-looking statements.

Global Indemnity plc's Combined Ratio for the Three Months Ended March 31,
2013 and 2012

The combined ratio is a key measure of insurance profitability. The components
comprising the combined ratio are as follows:

                               Three Months Ended March 31,
                                  2013              2012
Loss Ratio:
Current Accident Year
 Excluding Catastrophes             53.1             63.0
 Catastrophes                        8.4              4.5
 Current Accident Year              61.5             67.5
Changes to Prior Accident Year       (4.7)            (2.3)
Loss Ratio – Calendar Year            56.8             65.2
Expense Ratio                         43.7             35.9
Combined Ratio                       100.5            101.1

For the three months ended March 31st, the calendar year loss ratio decreased
by 8.4 points to 56.8 points in 2013 from 65.2 points in 2012.

  *Excluding catastrophes, the current accident year loss ratio decreased by
    9.9 points to 53.1 points in 2013 from 63.0 points in 2012. 

       *Excluding catastrophes, the property loss ratio decreased from 48.9
         points in the first quarter of 2012 to 43.0 points in the first
         quarter of 2013. Including catastrophes, the property loss ratio
         decreased by 2.1 points to 55.9 points in 2013 from 58.0 points in
         2012.
       *The casualty loss ratio decreased 4.4 points to 72.0 points in 2013
         from 76.4 points in 2012. 

  *Current year results include a 4.7 point reduction in the loss ratio
    related to prior accident years. This decrease was primarily driven by
    better than expected emergence in the Insurance Operations' property lines
    for accident years 2008 through 2012.

For the three months ended March 31st, the expense ratio increased from 35.9
points in 2012 to 43.7 points in 2013.

  *The expense ratio increased primarily due to a decrease in earned premium
    volume and an increase in contingent commissions as a result of profitable
    treaties written in the Reinsurance Operations, as well as a premium
    deficiency charge recorded in 2011 which resulted in the 2012 expense
    ratio being lower than it otherwise would have been. Excluding the impact
    of the premium deficiency charges, the three month ended March 31, 2012
    expense ratio was 39.4%.

Global Indemnity plc's Three Months Ended March 31, 2013 and 2012 Gross and
Net Premiums Written Results by Segment

(Dollars in thousands)          Three Months Ended March 31,
                       Gross Premiums Written   Net Premiums Written
                          2013        2012        2013        2012
Insurance Operations    $ 51,088   $ 47,834  $  47,628  $  40,906
Reinsurance Operations     23,851       9,924      23,850       9,375
Total                    $ 74,939    $ 57,758    $ 71,478    $ 50,281

Insurance Operations: For the three months ended March 31, 2013, gross
premiums written increased 6.8%, and net premiums written increased 16.4%,
compared to the same period in 2012. This was primarily driven by an increase
in the Company's small business classes, as well as a reduction in ceded
premiums written as a result of the Company retaining more of its direct
business.

Reinsurance Operations: For the three months ended March 31, 2013, gross
premiums written increased 140.3%, and net premiums written increased 154.4%
compared to the same period in 2012. This increase is primarily due to several
new treaties written during 2013.

         GLOBAL INDEMNITY PLC CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)(Dollars and shares in thousands, except per share data)
                                         For the Three Months Ended March 31,
                                              2013                  2012
Gross premiums written                         $ 74,939            $ 57,758
Net premiums written                           $ 71,478            $ 50,281
Net premiums earned                            $ 55,996            $ 64,470
Net investment income                             10,034               11,417
Net realized investment gains                      5,757                1,761
Other income (loss)                                   54                (352)
 Total revenues                               71,841               77,296
Net losses and loss adjustment expenses           31,788               42,009
Acquisition costs and other underwriting
expenses                                          24,477               23,167
Corporate and other operating expenses             2,345                2,488
Interest expense                                   1,173                1,478
 Income before income taxes                   12,058                8,154
Income tax benefit                                 (307)              (2,708)
 Net income                                 $ 12,365             $ 10,862
Weighted average shares
outstanding–basic                                 25,055               28,617
Weighted average shares
outstanding–diluted                               25,099               28,639
Net income per share – basic                   $  0.49            $  0.38
Net income per share – diluted                 $  0.49            $  0.38
Combined ratio analysis: (1)
Loss ratio                                          56.8                 65.2
Expense ratio (2)                                   43.7                 35.9
Combined ratio                                     100.5                101.1

(1) The loss ratio, expense ratio and combined ratio are non-GAAP financial
measures that are generally viewed in the insurance industry as indicators of
underwriting profitability. The loss ratio is the ratio of net losses and loss
adjustment expenses to net premiums earned. The expense ratio is the ratio of
acquisition costs and other underwriting expenses to net premiums earned. The
combined ratio is the sum of the loss and expense ratios.

(2) Excluding the impact of premium deficiencies, the expense ratio was 39.4%
for the quarter ended March 31, 2012.

  GLOBAL INDEMNITY PLC CONSOLIDATED BALANCE SHEETS (Dollars in thousands)
                                         (Unaudited) March 31,  December 31,
ASSETS                                   2013                    2012
Fixed Maturities:
 Available for sale securities, at
fair value  (amortized cost: 2013
- $1,209,914 and 2012 - $1,187,094)                 $ 1,250,110   $ 1,229,322
Equity securities:
 Available for sale, at fair value
 (cost: 2013 - $172,044 and 2012 -
$167,179)                                               216,863       197,075
Other invested assets:
 Available for sale securities, at
fair value  (cost: 2013 - $3,059
and 2012 - $3,049)                                        3,105         3,132
 Total
investments                                           1,470,078     1,429,529
Cash and cash equivalents                                69,321       104,460
Premiums receivable, net                                 56,732        45,162
Reinsurance receivables, net                            239,684       241,827
Deferred federal income taxes                             5,770        10,824
Deferred acquisition costs                               22,261        18,265
Intangible assets                                        18,255        18,343
Goodwill                                                  4,820         4,820
Prepaid reinsurance premiums                              4,726         5,945
Federal income taxes receivable                           7,493         6,844
Other assets                                             18,541        17,684
 Total assets               $ 1,917,681   $ 1,903,703
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment
expenses                                             $ 864,167     $ 879,114
Unearned premiums                                       108,378        94,114
Ceded balances payable                                    2,843         4,201
Contingent commissions                                    8,174         9,911
Payable for securities purchased                          1,269         2,634
Notes and debentures payable                             84,929        84,929
Other liabilities                                        20,273        22,182
 Total
liabilities                                           1,090,033     1,097,085
Shareholders' equity:
Ordinary shares, $0.0001 par value,
900,000,000 ordinary shares authorized;
A ordinary shares issued: 16,148,047 and
16,087,939 respectively; A ordinary
shares outstanding: 13,089,793 and
13,030,938, respectively; B ordinary
shares issued and outstanding:
12,061,370 and 12,061,370, respectively                       3             3
Additional paid-in capital                              513,548       512,304
Accumulated other comprehensive income,
net of taxes                                             60,799        53,350
Retained earnings                                       354,536       342,171
A ordinary shares in treasury, at cost:
3,058,254 and 3,057,001 shares,
respectively                                          (101,238)     (101,210)
 Total
shareholders' equity                                    827,648       806,618
 Total
liabilities and shareholders' equity                $ 1,917,681   $ 1,903,703

    GLOBAL INDEMNITY PLC SELECTED INVESTMENT DATA (Dollars in millions)
                                               Market Value as of
                                   (Unaudited) March 31,
                                           2013            December 31, 2012
Fixed Maturities                               $ 1,250.1            $ 1,229.3
Cash and cash equivalents                           69.3                104.5
Total bonds and cash and cash
equivalents                                      1,319.4              1,333.8
Equities and other invested assets                 220.0                200.2
Total cash and invested assets,
gross                                            1,539.4              1,534.0
Receivable / (payable) for
securities                                         (1.3)                (2.6)
Total cash and invested assets,
net                                           $ 1,538.1            $ 1,531.4

                                    (Unaudited) Three Months Ended March 31,
                                                    2013 (a)
Net investment income                                             $   10.0
Net realized investment gains                                             5.8
Net unrealized investment gains                                          12.8
Net realized and unrealized
investment returns                                                     18.6
 Total investment return                                        $   28.6
 Average total cash and invested
assets (b)                                                          $ 1,534.7
 Total investment return %
annualized                                                               7.5%

(a) Amounts in this table are shown on a pre-tax basis.

(b) Simple average of beginning and end of period, net of receivable/payable
for securities.

  GLOBAL INDEMNITY PLC SUMMARY OF OPERATING INCOME (Unaudited)(Dollars and
                 shares in thousands, except per share data)
                                       For the Three Months Ended March 31,
                                            2013                   2012
Operating income                              $ 8,537               $ 9,081
Adjustments:
Net realized investment gains, net of
tax                                              3,828                  1,781
Total after-tax adjustments                      3,828                  1,781
Net income                                   $ 12,365              $ 10,862
Weighted average shares outstanding –
basic                                           25,055                 28,617
Weighted average shares outstanding –
diluted                                         25,099                 28,639
Operating income per share – basic           $  0.34              $  0.32
Operating income per share – diluted         $  0.34              $  0.32

Note Regarding Operating Income

Operating income, a non-GAAP financial measure, is equal to net income
excluding after-tax net realized investment gains (losses). Operating income
is not a substitute for net income determined in accordance with GAAP, and
investors should not place undue reliance on this measure.

Contact: Media Linda HohnAssociate General Counsel +1-610-660-6862
lhohn@global-indemnity.com

Website: http://www.globalindemnity.ie
 
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