Global Indemnity (GBLI) 7 Nov 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Global Indemnity Group Q3 2024 Earnings Call. [Operator Instructions] Thank you. I will now turn today's call over to Steve Reis, Head of Investor Relations. Please go ahead, sir.

Thank you, Tameka.

conference being today's reminder, a call recorded. is As

statements. remarks may forward-looking contain Some

its new statements, operate description or you statements result of contemplated the affect Some XX-K the over Please not the including forward-looking business now forward-looking expectations, us Group of of our or otherwise. It's be to refer without We any by environment in Global any expectations results. a can expressly annual factors which beliefs, identified as Executive information, the GBLI. the Chief forward-looking regarded LLC materially pleasure Brown, be we such as events, Officer alter by statements such SEC to and that in may forward-looking and the representations the not will report to plans, under use and limitation, obligation future estimates. of should caution my whether us that of that Indemnity Form is other to important with filings fact Mr. our for or disclaim on update estimates, by turn be call future achieved. or Jay words, obligation

Riley, X-months for operational overview morning, comments joining XXXX our company. first you, review few and a our holding our our XXXX will you will provide insurance Consistent Thank the for the both past GBLI and Steve. Financial with and and thank update results. us Good financial all Brian Officer, operations on for financial highlights call, Chief I

expenses building to we momentum, shareholders. improved value results established consistent XX% XXXX is achieve third, very I second, to growing in first revenue in by metrics for X last as Through numbers continued gross insurance with up hit and results both I again first, at to driven low Insurance the remind of X the these now X got are level with I XX% quarter the Reinsurance. great at products with the in continues that XX%; XXs; measured the of months year-to-date months, pattern X XXXX. for we by momentum compound a start least year-over-year total rate long-term growth our our to premium, insurance strong reported close momentum to picture. by excluding for build for remain, quarter business our on Let's that our and This should plan for will third that has our second overall premium big manage a that a achieve combined annual XX%. The XX% XX% months. goals saw the growth we terminated the months Commercial, had team quarter. the our the through our to of InsurTech you competitive in and note Wholesale saw grew operations ratio Assumed what

Our products months. remains excluding remain efforts premium, in gross X to work turnaround specialty through flat progress as products, business a terminated our

Penn-America am property segment. casualty Turning to good continue combined XX.X our the The very of X-month underwriting a to and delighted ratio insurance results for I both for report performance. coverages.

differences increases past year Importantly, the stable year of for results rate our Also, accident our estimates de with to our inflation numbers. modestly exceed trends. continue minimis remain calendar estimates between and

reflected down for in are months exposures losses through XXXX. Our in can catastrophes from cat modest property XX% cat from Total our be manage to efforts segments losses XXXX. our used roughly to X

hurricanes, X the million. gross most As Milton, a expected each point both losses for recent to and both $X.X of come in Helene reference, around

to provide the our than best possible expenses continue our customers. manage to long-term We a to service higher bit targets

quarters, just below slightly numbers are last staff past year. the we in Penn-Americas noted As maintaining

rate. keep expense our As at grow that levels and growth business at of double-digit we growth half

this achieving ratio an expense outstanding still starting business, utilizing in all and X XX% in have growing competitive underwriting in to results Penn-America work to key effective dimensions. month technology but across our get achieving is lower. expense factor right XX.X%, do to trend is levels competitive order we with direction ratio the down to of the weapon or Our A as

and from and As embarked of to are a last data the These platforms, cloud-based noted about stores few our X/X underway the now and in a multi-year to information investments our technology move we've transaction, to transform well onsite quarters, effort on location, with our cloud storage. move lakehouse. software servers data

Wholesale in now our first Our processing new We're Commercial policies transactional in September. aspects liability environment. live all the replacement of excess went application

improve special are both We next who agents. remaining service to add module in quarter underwriters add products year. And will and receiving on first staff for additional Commercial and to improve Wholesale for the focused Wholesale our and targeting events an workstation business operations to this year-end is handle time for our integrated referral to to underwriting all be the

year detail, our our to very both and our investments. of value and high continued market in bond in returns in favorable additional the review more to improvement will decision investment comparisons Brian As prior in quality with go investment, our short payoff an

portfolio Our we our see some election. move we the Board in investment investment continues to plan advisors insurance as canvas outside return hope to more with investment clarity a as the conventional past to horizon to

I are the CEO the and year-end for the Global. of note will my updating year just of plans approach end year, as next our I now that second we completed As

tenure repositioned months of but E&S we choppy the as my very The smaller much first X company. [ as company more focused the were ]

forward changes to and our as at we and XXXX board to managers tactical can and Brian? have is dividends. strategic the affect I'm and we to beginning efforts both of pay emerged, subsequent where the really the excel had thankful implement However, that I the support GBLI. focus of as a result these the to importantly, enhance the more decision quarters looking for staff areas superb We're on all plan. and beyond both X

Thank you, Jay.

of of focus will my commentary first for months on to X year, the the first results X the months. As tracking first half the similarly

Of million million questions compared $XX.X the Net on answer $XX.X income in you any was we course, XXXX. may to third can numbers. have quarter

net With portfolio, the per per 'XX. September year-end in value income X increased for at Including return X.X% book of paid months income $XX.XX in share, combination value to market share $XX.XX increase dividends a and of to $X.XX XX. at million $XX from the the first was of shareholders a of 'XX fixed

on portfolio were performance of months X the at X.X% years. a and of with the at book into million book At translated X.X that a million investments. 'XX, is the with again yields. Cash of now bulk since was year fixed flows of the higher and both duration securities first Investment from much investment the The XX, portfolio in early X.X% reinvested to 'XX, AA the X.X income credit year of the yield income in to quality September years have duration yielding income the For Actions book X.X%. 'XX of minus. X.X% $XX duration XXXX. taken remains shortened to an years. yield the Current end average income. end fixed yield contributed X.X of Starting average $XX.X sell income with longer net of yield was XXXX, ago. current X.X% of at Comparatively improvement the increased during XX% of underwriting $XXX securities million plus duration income matured dated fixed with

the we million 'XX. of a in a $XXX As duration, fourth the result low quarter maturing have investments of

X the Jay invest underwriting first mentioned, let's and to actively year. performance increase to for we're to As opportunities further duration maturities looking the months move longer in returns, investment of

income underwriting in was ratio year 'XX. compared We consolidated the 'XX year due improvement continue compared XX% $X.X $XX.X 'XX. to ago. excellent million compared million $XX.X business, results performance accident year combined driven underwriting to as income year see consolidated $X current Penn-America's current to was in The underwriting our by and was the in million in the 'XX XX.X% million in This of year accident Penn-America. to to strong a core accident was accident income

$X.X the compared period points year year. ratio in expectations. Unlike effect XX.X% ratio in compared noted, in As points to Penn-America's in a last accident an X.X decline accident 'XX. XXXX. at The operations XX.X%, in Jay loss $XX.X combined was improvement on ratio number fire million XX.X% mainly 'XX loss than XX.X in year declined to large our $XX.X Hurricane the line from including of with better losses same X.X was remains of compared XX.X% improved losses property catastrophe compared diminished Cat 'XX non-catastrophe million due loss to 'XX performance Cat our performance. The XX.X of performance. in ratio to X.X% having are in million XX.X experienced in non-core of to XX.X% Helene of XX.X The both in to and overall improved 'XX, our million 'XX ratio due casualty non-catastrophe our in loss to 'XX. to to the due business. 'XX 'XX ratio to improved to loss Property

non-core year. The premium for million dropped our 'XX million ] in to non-renewed was runoff in 'XX the period in exit net $X.X in $X.X of segment. $X.X business same loss compared million 'XX, [ compared Our to 'XX. million Further, an operations treaty, $XXX.X to which earned retrocession mainly the $XX.X at assumed casualty from has end last the specialty non-core property million compared losses overall 'XX catastrophe resulted no in in the underwriting in 'XX was to of

XX.X%, the loss but in smaller line expenses ratio portfolios. remained high ratio we a expectations combined and Additionally, underwriting as runoff the the wind with at was bit was number of down XXX.X%

for for solidly in X in $X.X was remain of reduction million as to And prior years modest was income accident book related calendar a prior year, year. $XXX,XXX current in actuarial first the to compared underwriting the of 'XX. losses, indications. accident As Loss 'XX reserves months the LAE above million $XX.X

million written $XXX increased non-core $XXX.X 'XX XX% Wholesale $XXX.X $XXX our by is earlier, premiums. in declined Commercial, grew year-over-year X% of $XXX.X to is 'XX. to in written to Penn-America. compared to in mentioned growth million as due X.X% on million 'XX. premiums divisions. We color XX% in divisions. 'XX, Penn-America's a $XXX was Turning $XXX.X achieved decrease terminated programs, with little aggregate compared main This business by the million $XXX.X entirely premiums Jay our runoff compared InsurTech on to gross And increase. in business small growth a which million Including the offset in Consolidated 'XX street of line focuses plan. in segment, through to to 'XX. Commercial, gross million Penn-America's Assumed million from This had our which million Reinsurance was of in $XX those gross in premiums and partially Wholesale 'XX to million

'XX in best of increase collectibles, X%. InsurTech, premium rate to which audit which million year underlying indicator XX% premium includes of to $XX.X of grew calendar growth million express trends, our of the numbers, consists in compared and Excluding policy was XX%, vacant $XX.X 'XX. in these

me appointments. $XX.X growth down X you. break and Express for those XX% grew Vacant from by existing products organic Let driven agency to million, agents

third 'XX slightly We've products, technical of underwriting million to are New a our that quarter but prone profitability. for of the expansion was producing. Collectibles. the the actions our contributed $XX.X higher including of liability premium written XXXX bit, vacant some premium in Gross than catastrophe product dwelling monoline curtailed automation growth in on general it's by agents overall growth expected risk X%. has implemented improve to implemented

compared year. including products, Assumed with 'XX. specialty first to the last products written We $XX.X higher products this to by slightly to to treaties signed new earlier, continues premiums We $X a million, grew see $X.X million million And $XX.X million. in growth new in for on 'XX. Our book 'XX Gross business plan 'XX terminated nice that X months grow $X.X a our of X contributed X signed Reinsurance was on year. million at the than mentioned significant in the in of pace XXXX

months. In levels We Discretionary capital, actuarial to Penn-America end on reserves solidly compared for full pricing pleased year consolidated to the first products the of 'XX believe over consider last our equity are needed This months strongest rating September as agencies that to and with and runoff capital X the is increased amount current XX XX, tracking of due of next the be indications. remains above million growth at business. support with amount corporate at excess premium of in $XXX our of X accident year equity which the Booked current loss to we performance. capital required Penn-America reduced X the year. have 'XX Further, with very maintain at as 'XX will million other new is We the year the expect positive. non-core opportunities. for we to continues outlook in signed growth to our $XXX well of to inflation. strong closing,

you. longer portfolio duration Lastly, to well-positioned higher yields. Thank in invest maturities and our is investment

take We questions. your will now

from lines Ross Haberman comes Your first the Investments. of line Instructions] with question from [Operator audio the RLH

How about bit talk get of left little them? the your more getting about Could rest you much in what's a terms out of timing discontinued is and of lines? the

discontinued little a lines, fourth of to at our less this 'XX. Yes, we than in earned premium needs the ends in million off and run about $X stage, have that quarter

end of fully earned the runoff we'd that reserve on 'XX, by expect the side. to be and loss So full

into And actively of just if one follow so, looking lines or up, to sort and what are get you more for categories? purchase

levels it X lines and now, those have that highest is adding of of currently expanding 'XX and evolve an we right decided we're looking years our create we're something constantly expand new are opportunistic lines to that existing within and product, consistent in at we're a that the our get We particular advance working at past approaches looking are we've to we the business. at Right book and not its can in start with into for in now. have for we're opportunities stability It's we but it's going products do And 'XX going additional to things world. kind what the done in. perhaps not look business that

pop we're for the see X will next kind we're say yes, of that So what to going is upon the months. timeframes looking that's today. expand now to are that but but answer quarter, doing anything we X start you looking won't and probably I'd something probably to another up

one quarter? you any apologize. Did I much? in just And And shares one, last buy back so, the if how

not. did we No,

Instructions] [Operator

questions. in talking there's again guess numbers to good look I is X We you forward themselves thing. this a quarter, doesn't like It speak more always the any look which to months. for

much, everybody. very you Thank

reach have then, any before me. questions If you to please out

concludes call. This joining. today's Thank you for

disconnect lines. now You your may