Global Indemnity plc Reports Third Quarter 2013 Financial Results.

      Global Indemnity plc Reports Third Quarter 2013 Financial Results.

  PR Newswire

  DUBLIN, Nov. 5, 2013

DUBLIN, Nov. 5, 2013 /PRNewswire/ -- Global Indemnity plc (NASDAQ:GBLI) today
reported net income for the nine months ended September 30, 2013 of $28.0
million or $1.11 per share. As of September 30th, book value per share was
$33.30, an increase of 3.6% 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      As of
                    For the Nine Months                  September  December
                    Ended September 30,                     30,        31,
                      2013       2012                      2013       2012
Gross Premiums                           Book value per
Written              $ 228.0    $ 182.3  share            $ 33.30   $ 32.15
Net Premiums                             Shareholders'
Written              $ 213.9    $ 162.9  equity           $ 838.9   $ 806.6
                                         Cash and
                                         invested assets $ 1,548.9  $ 1,534.0
Net income            $ 28.0    $ 30.4
Net income per
share                 $ 1.11    $ 1.11
Operating income      $ 21.3    $ 24.9
Operating income
per share             $ 0.85    $ 0.91

During the nine months ended September 30, 2013, the Company incurred a
prepayment charge related to the retirement of debt, and a premium deficiency
charge. During the nine months ended September 30, 2012, the Company received
the benefit of a limited partnership distribution and net losses and loss
adjustment expenses and acquisition costs and other underwriting expenses were
also lower than they otherwise would have been as a result of premium
deficiency charges recorded in 2011. Excluding these non-routine events,
results would have been as follows;

                                Net Income              Operating Income
                         For the Nine Months Ended  For the Nine Months Ended
                               September 30,              September 30,
(Dollars in millions,
except per share data)      2013           2012        2013           2012
Net/Operating income         $ 28.0         $ 30.4      $ 21.3         $ 24.9
Prepayment charge               2.9              -         2.9              -
Limited partnership
distribution                      -          (4.3)           -          (4.3)
Impact of 2011 premium
deficiency                        -          (8.0)           -          (8.0)
Impact of 2013 premium
deficiency                      1.2              -         1.2              -
Tax effect assuming
applicable statutory
rates                         (1.2)            0.8       (1.2)            0.8
Adjusted net/operating
income                       $ 30.9         $ 18.9      $ 24.2         $ 13.4
Adjusted per share
amounts                      $ 1.23         $ 0.69      $ 0.96         $ 0.49

See the notes following the "Summary of Operating Income" table for
information regarding the presentation of income excluding non-routine events

Cynthia Y. Valko, Chief Executive Officer, commented: "Global's insurance and
reinsurance premium volume grew by a combined 25% during the first three
quarters of 2013 (as compared to 2012). Moreover, the company significantly
enhanced operating profitability during the first nine months of 2013
recording a combined ratio[1] of 99% (vs. 108% during the 2012 comparable
period) as a result of better underwriting, better pricing, and better weather
(absence of a major North American hurricane)."

[1] See the notes on the bottom of the "Consolidated Statements of Operations"
table regarding the Combined Ratio

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 worldwide. Global Indemnity plc's
two primary segments 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. 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 Nine Months Ended September 30,
2013 and 2012

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

                                Nine Months Ended September 30,
                                    2013               2012
Loss Ratio:
Current Accident Year
 Excluding Catastrophes               49.1               57.9
 Catastrophes                         10.7                7.6
 Current Accident Year                59.8               65.5
Changes to Prior Accident Year         (2.8)              (1.6)
Loss Ratio – Calendar Year              57.0               63.9
Expense Ratio                           43.0               39.5
Combined Ratio                         100.0              103.4

For the nine months ended September 30th, the calendar year loss ratio
decreased by 6.9 points to 57.0 in 2013 from 63.9 in 2012.

Excluding the impact of the 2011 premium deficiency charges, the loss ratio
for the nine months ended September 30, 2013 and 2012 was 57.0% and 66.2%.

  *Excluding catastrophes, the current accident year loss ratio decreased by
    8.8 points to 49.1 in 2013 from 57.9 in 2012.

       *Excluding catastrophes, the property loss ratio decreased 8.0 points
         to 33.9 in 2013 from 41.9 in 2012. Including catastrophes, the
         property loss ratio decreased 5.7 points to 50.4 in 2013 from 56.1 in
         2012.
       *Excluding the impact of 2011 premium deficiency charges, the casualty
         loss ratio decreased 3.6 points from 81.1 to 77.5 in 2013.

  *Current year results include a 2.8 point reduction in the loss ratio
    related to prior accident years. This decrease was primarily driven by
    better than expected development from accident year 2012 catastrophes as
    well as lower than expected non-catastrophe severity in property lines.

For the nine months ended September 30th, the expense ratio increased from
39.5 in 2012 to 43.0 in 2013.

  *Excluding the impact of premium deficiency charges, the expense ratio for
    the nine months ended September 30, 2013 and 2012 was 42.3 and 41.7,
    respectively. 

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

(Dollars in thousands)       Three Months Ended September 30,
                       Gross Premiums Written  Net Premiums Written
                          2013        2012       2013       2012
Insurance Operations     $ 59,747    $ 51,205  $ 54,995  $ 45,710
Reinsurance Operations      9,038       5,744      9,035      5,745
Total                    $ 68,785    $ 56,949   $ 64,030   $ 51,455

                              Nine Months Ended September 30,
                       Gross Premiums Written   Net Premiums Written
                          2013        2012        2013        2012
Insurance Operations    $ 172,714   $ 151,410  $ 159,010  $ 132,490
Reinsurance Operations     55,255      30,929      54,844      30,381
Total                   $ 227,969   $ 182,339   $ 213,854   $ 162,871

Insurance Operations: For the three and nine months ended September 30, 2013,
gross premiums written increased 16.7% and 14.1%, respectively, and net
premiums written increased 20.3% and 20.0%, respectively, compared to the same
periods in 2012. These were primarily driven by an increase in the Company's
small business binding authority lines. Written premium increases were also
realized in property brokerage, programs, and other lines. Net written
premiums also increased as a result of an increase in retention in property
excess of loss and property catastrophe.

Reinsurance Operations: For the three and nine months ended September 30,
2013, gross premiums written increased 57.3% and 78.7%, respectively, and net
premiums written increased 57.3% and 80.5%, 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 Nine Months
                                   Ended September 30,   Ended September 30,
                                     2013        2012      2013       2012
Gross premiums written              $ 68,785   $ 56,949  $ 227,969  $ 182,339
Net premiums written                $ 64,030   $ 51,455  $ 213,854  $ 162,871
Net premiums earned                 $ 64,469   $ 55,329  $ 179,136  $ 177,658
Net investment income                  8,486     14,777     28,285     37,265
Net realized investment gains          1,641      3,211     10,204      6,913
Other income (loss)                      183        101        484      (291)
 Total revenues                   74,779     73,418    218,109    221,545
Net losses and loss adjustment
expenses                              35,483     35,407    102,195    113,574
Acquisition costs and other
underwriting expenses                 28,028     23,223     76,977     70,150
Corporate and other operating
expenses                               2,627      2,039      7,444      6,863
Interest expense                       3,585      1,265      5,939      4,213
 Income before income taxes        5,056     11,484     25,554     26,745
Income tax expense (benefit)         (1,892)      1,571    (2,423)    (3,634)
 Net income                      $ 6,948    $ 9,913   $ 27,977   $ 30,379
Weighted average shares
outstanding–basic                     25,082     25,392     25,066     27,263
Weighted average shares
outstanding–diluted                   25,189     25,413     25,151     27,281
Net income per share – basic         $ 0.28    $ 0.39    $ 1.12    $ 1.11
Net income per share – diluted       $ 0.28    $ 0.39    $ 1.11    $ 1.11
Combined ratio analysis: (1)
Loss ratio (2)                          55.1       64.0       57.0       63.9
Expense ratio (3)                       43.5       42.0       43.0       39.5
Combined ratio (4)                      98.6      106.0      100.0      103.4

(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 the 2011 premium deficiency charges, the loss
ratio was 64.2% and 66.2% for the three months and nine months ended September
30, 2012, respectively.

(3) Excluding the impact of the 2011 and 2013 premium deficiency charges, the
expense ratio was 41.0% and 42.7% for the three months ended September 30,
2013 and 2012, respectively. Excluding the impact of 2011 and 2013 premium
deficiency charges, the expense ratio was 42.3% and 41.7% for the nine months
ended September 30, 2013 and 2012, respectively.

(4) Excluding the impact of the 2011 and 2013 premium deficiency charges, the
combined ratio was 96.1% and 107.0% for the three months ended September 30,
2013 and 2012, respectively. Excluding the impact of the 2011 and 2013 premium
deficiency charges, the combined ratio was 99.4% and 107.9% for the nine
months ended September 30, 2013 and 2012, respectively.

                      GLOBAL INDEMNITY PLC
                  CONSOLIDATED BALANCE SHEETS
                     (Dollars in thousands)
                                                   (Unaudited)
                                                  September 30,  December 31,
ASSETS                                                2013           2012
Fixed Maturities:
     Available for sale securities, at fair
     value (amortized cost: 2013 - $1,175,002
     and 2012 - $1,187,094)                         $ 1,196,275   $ 1,229,322
Equity securities:
     Available for sale, at fair value(cost:
     2013 - $175,125 and 2012 - $167,179)               233,415       197,075
Other invested assets:
     Available for sale securities, at fair
     value (cost: 2013 - $3,065 and 2012 -
     $3,049)                                              3,269         3,132
               Total investments                 1,432,959     1,429,529
Cash and cash equivalents                               115,953       104,460
Premiums receivable, net                                 40,132        37,752
Reinsurance receivables, net                            221,751       241,827
Funds held by ceding reinsurers                          30,825         7,410
Deferred federal income taxes                             6,338        10,824
Deferred acquisition costs                               24,178        18,265
Intangible assets                                        18,078        18,343
Goodwill                                                  4,820         4,820
Prepaid reinsurance premiums                              5,227         5,945
Federal income taxes receivable                           3,830         6,844
Other assets                                             14,339        17,684
              Total assets                          $ 1,918,430   $ 1,903,703
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses            $ 823,063     $ 879,114
Unearned premiums                                       128,113        94,114
Ceded balances payable                                    5,093         4,201
Contingent commissions                                    9,652         9,911
Payable for securities purchased                          4,882         2,634
Margin borrowing facility                                65,009             -
Notes and debentures payable                             20,619        84,929
Other liabilities                                        23,096        22,182
              Total liabilities                       1,079,527     1,097,085
Shareholders' equity:
Ordinary shares, $0.0001 par value, 900,000,000
ordinary shares authorized; A ordinary shares
issued: 16,190,894 and 16,087,939 respectively;
A ordinary shares outstanding: 13,132,133 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                              515,545       512,304
Accumulated other comprehensive income, net of
taxes                                                    54,456        53,350
Retained earnings                                       370,148       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                838,903       806,618
              Total liabilities and
              shareholders' equity                  $ 1,918,430   $ 1,903,703

                                            GLOBAL INDEMNITY PLC
                                          SELECTED INVESTMENT DATA
                                           (Dollars in millions)
                                             Market Value as of
                               (Unaudited) September 30,
                                         2013              December 31, 2012
Fixed Maturities                               $ 1,196.3            $ 1,229.3
Cash and cash equivalents                          116.0                104.5
Total bonds and cash and cash
equivalents                                      1,312.3              1,333.8
Equities and other invested
assets                                             236.7                200.2
Total cash and invested
assets, gross                                    1,549.0              1,534.0
Receivable / (payable) for
securities                                         (4.9)                (2.6)
Total cash and invested
assets, net                                   $ 1,544.1            $ 1,531.4

                         (Unaudited) Three Months    (Unaudited) Nine Months
                         Ended September 30, 2013    Ended September 30, 2013
                                    (a)                        (a)
Net investment income                      $  8.5                  $  28.3
Net realized investment
gains                                           1.6                      10.2
Net unrealized
investment gain                                10.5                       7.3
Net realized and
unrealized investment
returns                                        12.1                      17.5
 Total investment
return                                     $  20.6                  $  45.8
 Average total cash
and invested assets (b)                   $ 1,535.6                 $ 1,537.7
 Total investment
return % annualized                            5.4%                      4.0%

(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 Ended  For the Nine Months Ended
                              September 30,               September 30,
                           2013            2012        2013           2012
Operating income (1)        $ 5,944        $ 7,621     $ 21,321      $ 24,856
Adjustments:
Net realized investment
gains, net of tax             1,004          2,292        6,656         5,523
Total after-tax
adjustments                   1,004          2,292        6,656         5,523
Net income                 $ 6,948       $ 9,913     $ 27,977      $ 30,379
Weighted average shares
outstanding – basic          25,082         25,392       25,065        27,263
Weighted average shares
outstanding –diluted        25,189         25,413       25,151        27,281
Operating income per
share – basic               $ 0.24        $ 0.30      $ 0.85       $ 0.91
Operating income per
share – diluted             $ 0.24        $ 0.30      $ 0.85       $ 0.91

(1) Please see page 1 of this release for a discussion of events impacting
operating income.

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.

Note Regarding Presentation of Income Excluding Non-Routine Events

The presentation of income excluding non-routine events, including adjusted
net income, adjusted operating income and adjusted per share amounts metrics,
is a non-GAAP financial measure. These metrics were presented to show
comparable results between periods without the impact of non-routine events.
It 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