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2016-05-05

Global Indemnity plc : Global Indemnity plc Reports First Quarter 2016 Financial Results

DUBLIN, Ireland, May 05, 2016 (GLOBE NEWSWIRE) -- Global Indemnity plc
(NASDAQ:GBLI) today reported net income for the three months ended March 31,
2016 of $7.1 million or $0.41 per share, compared to net income of $6.8
million or $0.26 per share for the same period of 2015. Operating income was
$12.0 million or $0.69 per share for the three months ended March 31, 2016
compared to $8.8 million or $0.34 per share for the first quarter of 2015. As
of March 31st, book value per share was $43.66, an increase of 1.6% compared
to book value per share of $42.98 at December 31, 2015.

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

--------------------------------------------------------------------------------------------------------------------------------
| For the Three Months As of As of |
| |
| December 31, |
| Ended March 31, March 31, |
| 2016 2015 2016 2015 |
| |
| Gross Premiums Written $ 141.4 $ 142.9 Book value per share $ 43.66 $ 42.98 |
| Net Premiums Written $ 116.9 $ 126.1 Shareholders' equity $ 766.1 $ 749.9 |
| Cash and invested assets(1) $ 1,506.1 $ 1,516.3 |
| Net income $ 7.1 $ 6.8 |
| Net income per share $ 0.41 $ 0.26 (1) Including receivable/(payable) for securities sold/(purchased) |
| |
| Operating income $ 12.0 $ 8.8 |
| Operating income per share $ 0.69 $ 0.34 |
| |
| Combined ratio analysis: |
| Loss ratio 53.3 54.7 |
| Expense ratio 42.8 37.9 |
| Combined ratio 96.1 92.6 |
| |
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Cynthia Y. Valko, Chief Executive Officer, commented: "I am pleased that our
focus on profitable growth has resulted in year over year growth in net
income and operating income. Premiums at American Reliable grew 4.7% compared
to the prior year, and all of our operating segments were profitable in the
first quarter of 2016. While the overall combined ratio reflects continued
profitability, our combined ratio is slightly higher than the same period of
2015 due to a higher expense ratio. The increase in the expense ratio was
primarily due to a reduction in earned premiums, which was the result of the
Company reducing the amount of catastrophe business it writes and purchasing
additional reinsurance. As the year continues, we expect the expense ratio
to improve due to the completion of the integration of American Reliable."

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
and individual policyholder coverages in the United States, as well as
reinsurance worldwide. Global Indemnity plc's three primary segments are:

* United States Based Commercial Lines Operations
* United States Based Personal Lines Operations
* Bermuda Based Reinsurance Operations

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

Forward-Looking Information

The forward-looking statements contained in this press release1 do not address
a number of risks and uncertainties. Investors are cautioned that Global
Indemnity's actual results may be materially different from the estimates
expressed in, or implied, or projected by, the forward looking statements.
Factors that could cause actual results to differ materially from those
contemplated in the forward-looking statements include, but are not limited
to, the risk that there may be difficulties in the continued integration of
American Reliable business, which could result in a failure to realize the
potential benefits of the acquisition, and the risk that American Reliable' s
or Global Indemnity's prospective insurance premiums, investment yield, or
net earnings are less than anticipated (including as a result of unexpected
events, competition, costs, charges or outlays whether as a consequence of
the transaction or otherwise). The foregoing review of factors that could
cause actual financial or operating performance to differ materially from
expectations is not exhaustive. Please see Global Indemnity's filings with
the Securities and Exchange Commission for a discussion of additional risks
and uncertainties which could impact the company and for a more detailed
explication regarding forward-looking statements.

1 Disseminated pursuant to the "safe harbor" provisions of Section 21E of the
Security Exchange Act of 1934.

Global Indemnity plc's Combined Ratio for the Three Months Ended
March 31, 2016

The combined ratio is a key measure of insurance profitability. The
components comprising the combined ratio, by reportable business segment, for
the three months ended March 31, 2016 are as follows:

-----------------------------------------------------------
| Commercial Personal Reinsurance |
| |
| Operations |
| Lines Lines |
| Loss Ratio 52.8 56.7 37.7 |
| Expense Ratio 43.2 43.7 36.7 |
| Combined Ratio 96.0 100.4 74.4 |
| |
-----------------------------------------------------------
Loss Ratio:

Commercial Lines Operations:

The loss ratio for the Company's Commercial Lines was 52.8% for 2016 compared
with 58.4% for 2015. The loss ratio for the three months ended March 31,
2016 was lower than the comparable period in 2015 due to lower than
anticipated claims severity in general liability and lower than expected case
incurred emergence on non-catastrophe property claims. The current accident
year loss ratio increased 2.2 points from 62.4% in 2015 to 64.6% in 2016.
This increase was primarily due to two large property brokerage fire losses
in 2016 offset by lower severity in catastrophe claims.

Personal Lines Operations:

The loss ratio for the Company's Personal Lines was consistent year over year.
The 2016 loss ratio was 56.7% compared with 56.6% for 2015. There were no
adjustments to prior accident years.

Reinsurance Operations:

The loss ratio for the Company's Reinsurance Operations was 37.7% for 2016
compared with 31.1% for 2015. The increase in the loss ratio was primarily
due to the Company reducing the amount of catastrophe business it writes. The
2016 loss ratio includes an improvement of 8.2 points due to reductions in
prior accident year loss reserves resulting from ultimate losses being lower
than expected for property lines. The current accident year loss ratio
increased 3.7 points from 42.2% in 2015 to 45.9% in 2016 due to the reduction
in catastrophe business written as well as a change in business mix.
Professional liability premiums increased slightly, which historically have a
higher loss ratio than property treaties.

Expense ratio:

For the three months ending March 31, the total expense ratio increased from
37.9% in 2015 to 42.8% in 2016. The increase in the 2016 expense ratio was
primarily due to a reduction in earned premium as a result of the Company
reducing catastrophe exposure and purchasing additional reinsurance.

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

-------------------------------------------------------------------------------------------------
| Three Months Ended March 31, |
| Gross Premiums Written Net Premiums Written |
| 2016 2015 2016 2015 |
| Commercial Lines Operations $ 49,091 $ 49,793 $ 43,558 $ 45,622 |
| Personal Lines Operations 79,540 73,211 60,579 60,656 |
| Reinsurance Operations 12,735 19,865 12,735 19,826 |
| Total $ 141,366 $ 142,869 $ 116,872 $ 126,104 |
| |
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Gross premiums written and net premiums written decreased 1.1% and 7.3%,
respectively, compared to the same period in 2015.

Commercial Lines Operations:
For the three months ended March 31, 2016, gross premiums written and net
premiums written both decreased 1.4% and 4.5%, respectively, compared to the
same period in 2015. The reduction in net premiums written was primarily due
to ceding at a higher rate as a result of increasing property reinsurance.

Personal Lines Operations:
For the three months ended March 31, 2016, gross premiums written increased
8.6% and net premiums written decreased 0.1% compared to the same period in
2015. $3.3 million of the increase in gross premiums wr...

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