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 firstname.lastname@example.org Website: http://www.globalindemnity.ie
Global Indemnity plc Reports First Quarter 2013 Financial Results.
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