Global Indemnity plc Reports Second Quarter 2013 Financial Results.

     Global Indemnity plc Reports Second Quarter 2013 Financial Results.

  PR Newswire

  DUBLIN, Aug. 6, 2013

DUBLIN, Aug. 6, 2013 /PRNewswire/ -- Global Indemnity plc (NASDAQ:GBLI) today
reported net income for the three months ended June 30, 2013 of $8.7 million
or $0.34 per share and six months ended June 30, 2013 of $21.0 million or
$0.84 per share. As of June 30th, book value per share was $32.74, a decrease
of 0.5% compared to book value per share of $32.91 at March 31, 2013, and an
increase of 1.8% compared to book value per share of $32.15 at December 31,
2012.

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

                           For the Three Months  For the Six Months

                              Ended June 30,       Ended June 30,
                             2013        2012      2013      2012
Gross Premiums Written        $ 84.2     $ 67.6    $159.2   $ 125.4
Net Premiums Written          $ 78.3     $ 61.1    $149.8   $ 111.4
Net income                   $  8.7    $  9.6   $ 21.0  $  20.5
Net income per share          $ 0.34     $ 0.35   $ 0.84  $  0.72
Operating income (1)         $  6.8    $  8.2   $ 15.4  $  17.2
Operating income per share    $ 0.27     $ 0.29   $ 0.61  $  0.61

(1) Excluding the impact of premium deficiencies recorded in 2011 which
resulted in 2012 operating income being higher than it otherwise would have
been, the three and six months ended June 30, 2012 operating income was $7.1
million, or $0.26 per share, and $13.9 million, or $0.49 per share,
respectively.

                             As of          As of             As of

                         June 30, 2013  March 31, 2013  December 31, 2012
Book value per share        $  32.74      $  32.91         $  32.15
Shareholders' equity        $  824.0      $  827.6         $  806.6
Cash and invested assets     $ 1,522.0       $ 1,539.4          $ 1,534.0

Cynthia Y. Valko, Chief Executive Officer, commented: "I continue to be
pleased with Global's development since coming on board in September 2011,
including the depth and breadth of our underwriting, product, and client
service teams. On a normalized basis (excluding the impact of premium
deficiencies), Global generated a 100.9 combined ratio for the first six
months of 2013, a marked 7.5 point improvement over 2012. Moreover, during
this same period Global increased its premium volume by an impressive 34.5%.
Global's primary insurance operations, Penn America, United National and
Diamond State, grew practically all of their several business lines while
enhancing rates and terms. Wind River, Global's reinsurance division, also
experienced fine underwriting results while significantly increasing its
revenue as it expanded certain key treaty relationships. Despite the recent
spike in interest rates and falling bond market, Global's investment
portfolio, 84% of which is invested in bonds and other fixed income
instruments, produced a 3.3% return for the first six months of 2013. Quite
importantly, A.M. Best, the insurance industry's most trusted and influential
rating agency, also recently affirmed Global's "A" (Excellent) qualitative
assessment rating across all of the Company's primary domestic and
international reinsurance businesses, operations, and divisions."

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 .

Teleconference and Webcast for Interested Parties

Cynthia Valko, Chief Executive Officer of Global Indemnity plc, and Thomas
McGeehan, Chief Financial Officer of Global Indemnity plc, will conduct a
teleconference for interested parties on August 7, 2013 at 8:30a.m. Eastern
Time to discuss the second quarter 2013 results.

The Company will release its earnings after the close of business on August 6,
2013.

To participate in the teleconference, please telephone (800) 230-1085 (U.S.
and Canada) or (612) 288-0337 (International) and you will be greeted by an
operator. Please reference Global Indemnity plc Earnings Release Call or the
host Cynthia Valko.

The teleconference is being webcast by AT&T and can be accessed at the
company's website at www.globalindemnity.ie . Please access the site at least
15 minutes prior to the teleconference to register, click on the Webcast link,
enter Conference ID number 299415 and click GO. Please download and install
any necessary software.

The teleconference will be available for replay beginning at 10:30 a.m.
Eastern Time on August 7, 2013 until 11:59 p.m. on August 7, 2014. To listen
to the replay, please telephone (800) 475-6701 (U.S. and Canada) or (320)
365-3844 (International) then enter 299415.

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. We caution investors
that our actual results may be materially different from the estimates
expressed in, or implied, or projected by, the forward looking statements.
Please see our periodic reports filed with the Securities and Exchange
Commission for a discussion of the risks and uncertainties which may affect us
and for a more detailed discussion of our cautionary note regarding
forward-looking statements.

Global Indemnity plc's Combined Ratio for the Three and Six Months Ended June
30, 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 June
                                     30,            Six Months Ended June 30,
                             2013           2012       2013           2012
Loss Ratio:
Current Accident Year
 Excluding Catastrophes       46.1          55.6        49.7           59.5
 Catastrophes                 14.6           8.0        11.4            6.1
 Current Accident Year        60.7          63.6        61.1           65.6
Changes to Prior Accident
Year                           (1.2)         (1.1)       (2.9)          (1.7)
Loss Ratio – Calendar Year      59.5          62.5        58.2           63.9
Expense Ratio                   41.7          41.1        42.7           38.4
Combined Ratio                 101.2         103.6       100.9          102.3

For the three months ended June 30th, the calendar year loss ratio decreased
by 3.0 points to 59.5 in 2013 from 62.5 in 2012.

Excluding the impact of premium deficiencies, the loss ratio for the three
months ended June 30, 2012 was 64.5.

  *Excluding catastrophes, the current accident year loss ratio decreased by
    9.5 points to 46.1 in 2013 from 55.6 in 2012.

       *Excluding catastrophes, the property loss ratio decreased 9.2 points
         from 38.5 in the second quarter of 2012 to 29.3 in the second quarter
         of 2013. Including catastrophes, the property loss ratio decreased
         by 1.9 points to 51.6 in 2013 from 53.5 in 2012.
       *Excluding the impact of premium deficiencies, the casualty loss ratio
         decreased 1.5 points from 79.5 to 78.0 in 2013.

  *Current year results include a 1.2 point reduction in the loss ratio
    related to prior accident years. This decrease was primarily driven by
    better than expected emergence in casualty lines and lower than expected
    severity in property lines.

For the three months ended June 30th, the expense ratio increased from 41.1 in
2012 to 41.7 in 2013.

  *The expense ratio increased primarily due to the impact of premium
    deficiencies. Excluding the impact of premium deficiencies, the expense
    ratio for the three months ended June 30, 2012 was 43.2.

For the six months ended June 30th, the calendar year loss ratio decreased by
5.7 points to 58.2 in 2013 from 63.9 in 2012.

Excluding the impact of premium deficiencies, the loss ratio for the six
months ended June 30, 2012 was 67.2.

  *Excluding catastrophes, the current accident year loss ratio decreased by
    9.8 points to 49.7 in 2013 from 59.5 in 2012.

       *Excluding catastrophes, the property loss ratio decreased from 43.7
         in 2012 to 36.3 in 2013. Including catastrophes, the property loss
         ratio decreased by 2.0 points to 53.8 in 2013 from 55.8 in 2012.
       *Excluding the impact of premium deficiencies, the casualty loss ratio
         decreased 7.8 points to 74.7 in 2013 from 82.5 in 2012.

  *Current year results include a 2.9 point reduction in the loss ratio
    related to prior accident years. This decrease was primarily driven by
    better than expected emergence in casualty and property lines.

For the six months ended June 30th, the expense ratio increased from 38.4 in
2012 to 42.7 in 2013.

  *The expense ratio increased primarily due to an increase in contingent
    commissions as a result of profitable treaties written in the Reinsurance
    Operations as well as the impact of premium deficiencies. Excluding the
    impact of premium deficiencies, the expense ratio for the six months ended
    June 30, 2012 was 41.2.

Global Indemnity plc's Gross and Net Premiums Written Results by Segment

(Dollars in thousands)          Three Months Ended June 30,
                       Gross Premiums Written   Net Premiums Written
                          2013        2012        2013       2012
Insurance Operations     $ 61,879    $ 52,371   $ 56,387  $ 45,874
Reinsurance Operations     22,366      15,261      21,959     15,261
Total                    $ 84,245    $ 67,632    $ 78,346   $ 61,135
                                 Six Months Ended June 30,
                       Gross Premiums Written   Net Premiums Written
                          2013        2012        2013       2012
Insurance Operations    $ 112,967   $ 100,205  $ 104,015  $ 86,780
Reinsurance Operations     46,217      25,185      45,809     24,636
Total                   $ 159,184   $ 125,390   $ 149,824  $ 111,416

Insurance Operations: For the three and six months ended June 30, 2013, gross
premiums written increased 18.2% and 12.7%, respectively, and net premiums
written increased 22.9% and 19.9%, respectively, compared to the same periods
in 2012. These were primarily driven by an increase in the Company's small
business line. Written premium increases were also realized in property
brokerage, programs, and other lines. Net written premiums also increased as a
result of the Company retaining more of its direct business.

Reinsurance Operations: For the three and six months ended June 30, 2013,
gross premiums written increased 46.6% and 83.5%, respectively, and net
premiums written increased 43.9% and 85.9%, respectively, compared to the same
periods in 2012. These increases were primarily due to several new treaties
written during 2013.

Note: Tables Follow

                            GLOBAL INDEMNITY PLC
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)
          (Dollars and shares in thousands, except per share data)
                                   For the Three Months   For the Six Months

                                       Ended June,          Ended June 30,
                                     2013        2012      2013       2012
Gross premiums written              $ 84,245   $ 67,632  $ 159,184  $ 125,390
Net premiums written                $ 78,346   $ 61,135  $ 149,824  $ 111,416
Net premiums earned                 $ 58,671   $ 57,859  $ 114,667  $ 122,329
Net investment income                  9,765     11,071     19,799     22,488
Net realized investment gains          2,806      1,941      8,563      3,702
Other income (loss)                      247       (40)        301      (392)
 Total revenues                   71,489     70,831    143,330    148,127
Net losses and loss adjustment
expenses                              34,924     36,158     66,712     78,167
Acquisition costs and other
underwriting expenses                 24,472     23,760     48,949     46,927
Corporate and other operating
expenses                               2,472      2,336      4,817      4,824
Interest expense                       1,181      1,470      2,354      2,948
 Income before income taxes        8,440      7,107     20,498     15,261
Income tax benefit                     (224)    (2,497)      (531)    (5,205)
 Net income                      $ 8,664    $ 9,604   $ 21,029   $ 20,466
Weighted average shares
outstanding–basic                     25,050     27,830     25,052     28,223
Weighted average shares
outstanding–diluted                   25,119     27,836     25,121     28,237
Net income per share – basic         $ 0.35    $ 0.35    $ 0.84    $ 0.73
Net income per share – diluted       $ 0.34    $ 0.35    $ 0.84    $ 0.72
Combined ratio analysis: (1)
Loss ratio (2)                          59.5       62.5       58.2       63.9
Expense ratio (3)                       41.7       41.1       42.7       38.4
Combined ratio (4)                     101.2      103.6      100.9      102.3

(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 loss ratio was 64.5% and
67.2% for the quarter and six months ended June 30, 2012, respectively.

(3) Excluding the impact of premium deficiencies, the expense ratio was 43.2%
and 41.2% for the quarter and six months ended June 30, 2012, respectively.

(4) Excluding the impact of premium deficiencies, the combined ratio was
107.7% and 108.4% for the quarter and six months ended June 30, 2012,
respectively.

                            GLOBAL INDEMNITY PLC

                         CONSOLIDATED BALANCE SHEETS

                           (Dollars in thousands)
                                                   (Unaudited)
                                                                 December 31,
ASSETS                                            June 30, 2013      2012
Fixed Maturities:
        Available for sale securities, at fair
        value

        (amortized cost: 2013 - $1,163,532 and
        2012 - $1,187,094)                          $ 1,184,738   $ 1,229,322
Equity securities:
        Available for sale, at fair value

        (cost: 2013 - $174,693 and 2012 -
        $167,179)                                       222,583       197,075
Other invested assets:
        Available for sale securities, at fair
        value (cost: 2013 - $3,059 and 2012 -
        $3,049)                                           3,226         3,132
        Total investments                             1,410,547     1,429,529
Cash and cash equivalents                               111,440       104,460
Premiums receivable, net                                 74,027        45,162
Reinsurance receivables, net                            232,645       241,827
Receivable for securities                                 5,160             -
Deferred federal income taxes                            10,445        10,824
Deferred acquisition costs                               25,980        18,265
Intangible assets                                        18,166        18,343
Goodwill                                                  4,820         4,820
Prepaid reinsurance premiums                              5,248         5,945
Federal income taxes receivable                           1,393         6,844
Other assets                                             14,951        17,684
        Total assets                                $ 1,914,822   $ 1,903,703
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses            $ 844,918     $ 879,114
Unearned premiums                                       128,572        94,114
Ceded balances payable                                    4,628         4,201
Contingent commissions                                    7,302         9,911
Payable for securities purchased                              -         2,634
Notes and debentures payable                             84,929        84,929
Other liabilities                                        20,523        22,182
        Total liabilities                             1,090,872     1,097,085
Shareholders' equity:
Ordinary shares, $0.0001 par value, 900,000,000
ordinary shares authorized; A ordinary shares
issued: 16,164,587 and 16,087,939 respectively;
A ordinary shares outstanding: 13,105,826 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                              514,422       512,304
Accumulated other comprehensive income, net of
taxes                                                    47,574        53,350
Retained earnings                                       363,200       342,171
A ordinary shares in treasury, at cost:
3,058,761 and 3,057,001 shares, respectively          (101,249)     (101,210)
        Total shareholders' equity                      823,950       806,618
        Total liabilities and shareholders'
        equity                                      $ 1,914,822   $ 1,903,703

                           GLOBAL INDEMNITY PLC
                         SELECTED INVESTMENT DATA
                          (Dollars in millions)
                                                 Market Value as of
                                           (Unaudited)   December 31, 2012

                                          June 30, 2013
Fixed Maturities                              $ 1,184.7          $ 1,229.3
Cash and cash equivalents                         111.4              104.5
Total bonds and cash and cash equivalents       1,296.1            1,333.8
Equities and other invested assets                225.8              200.2
Total cash and invested assets, gross           1,521.9            1,534.0
Receivable / (payable) for securities               5.2              (2.6)
Total cash and invested assets, net          $ 1,527.1          $ 1,531.4

                                     (Unaudited)             (Unaudited)

                               Three Months Ended June  Six Months Ended June
                                    30, 2013 (a)            30, 2013 (a)
Net investment income                  $      9.8            $   19.8
Net realized investment gains                      2.8                    8.6
Net unrealized investment loss                  (15.4)                  (3.2)
Net realized and unrealized
investment returns                              (12.6)                    5.4
 Total investment return             $     (2.8)            $   25.2
 Average total cash and
invested assets (b)                       $  1,532.6              $ 1,529.3
 Total investment return %
annualized                                      (0.7%)                   3.3%

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

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

                            GLOBAL INDEMNITY PLC
                         SUMMARY OF OPERATING INCOME
                                 (Unaudited)
          (Dollars and shares in thousands, except per share data)
                                For the Three Months    For the Six Months

                                   Ended June 30,         Ended June 30,
                                  2013       2012        2013        2012
Operating income (1)             $ 6,840   $ 8,154    $ 15,377    $ 17,235
Adjustments:
Net realized investment gains,
net of tax                          1,824      1,450       5,652       3,231
Total after-tax adjustments         1,824      1,450       5,652       3,231
Net income                       $ 8,664   $ 9,604    $ 21,029    $ 20,466
Weighted average shares
outstanding – basic                25,050     27,830      25,052      28,223
Weighted average shares
outstanding – diluted             25,119     27,836      25,121      28,237
Operating income per share –
basic                           $  0.27  $  0.29  $   0.61  $   0.61
Operating income per share –
diluted                         $  0.27  $  0.29  $   0.61  $   0.61

(1) Excluding the impact of premium deficiencies recorded in 2011 which
resulted in 2012 operating income being higher than it otherwise would have
been, the three and six months ended June 30, 2012 operating income was $7.1
million, or $0.26 per share, and $13.9 million, or $0.49 per share,
respectively.

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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