Global Indemnity plc Reports Second Quarter 2015 Financial Results
(Thomson Reuters ONE) -
DUBLIN, Aug. 04, 2015 (GLOBE NEWSWIRE) -- Global Indemnity plc (NASDAQ:GBLI)
today reported net income of $17.9 million or $0.70 per share for the six months
ended June 30, 2015. Operating income was $15.7 million for the six months ended
June 30, 2015 compared to $18.5 million at June 30, 2014. Excluding one-time
costs associated with the acquisition of American Reliable Insurance Company
("American Reliable"), operating income was $21.1 million at June 30, 2015, an
improvement of 14% compared to the same period of 2014. Book value per share was
$36.20 at June 30, 2015, an increase 0.9% compared to book value per share of
$35.86 at December 31, 2014.
Selected Operating and Balance Sheet Data (Dollars in millions, except per share
data)
As of As of
For the Six Months June 30, December
Ended June 30, 2015 31,
2014
2015 2014
Gross Book value per
Premiums $ 309.4 $ 160.1 share $ 36.20 $ 35.86
Written
Net Shareholders'
Premiums $ 272.1 $ 149.2 equity $ 931.3 $ 908.3
Written
Cash and
invested $ 1,770.3 $ 1,611.8
assets (1)
Net income $ 17.9 $ 42.0
Net income $ 0.70 $ 1.66 (1) Including receivable/(payable) for
per share securities sold/(purchased)
Operating $ 15.7 $ 18.5
income
Operating
income per $ 0.61 $ 0.73
share
Combined
ratio
analysis:
Loss ratio 58.2 57.5
Expense 38.7 40.2
ratio
Combined 96.9 97.7
ratio
Cynthia Y. Valko, Chief Executive Officer, commented: "American Reliable has
now been a part of Global Indemnity for six months. Premium volume compared to
2014 is almost double and the combined ratio has improved to 96.9 compared to
97.7 in 2014. We have been able to absorb many functions previously performed
for American Reliable by the former parent without adding staff which has helped
improve the expense ratio 1.5 points. These factors have led to operating
income of $21.1 million excluding one-time costs associated with the
acquisition, an improvement of 14% compared to 2014. In addition to the
positive results related to the acquisition, the integration of American
Reliable has been smooth with no disruptions to the existing business. The
Commercial Lines and Reinsurance Operations are also holding up well even in
this competitive environment. Book value per share continues to grow even with
the rise in interest rates during the 2nd quarter. The investment portfolio is
also well positioned, mainly invested in short duration investment grade bonds.
All in all, a good start for our combined companies."
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
at http://www.globalindemnity.ie.
Forward-Looking Information
The forward-looking statements contained in this press release(1) 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 integrating the businesses of
American Reliable, which could result in a failure to realize the potential
benefits of the acquisition, the risk that the transaction proves disruptive to
the operations of American Reliable or Global Indemnity, 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 the Private
Securities Litigation Reform Act of 1995.
Global Indemnity plc's Combined Ratio for the Six Months Ended June 30, 2015 and
2014
The combined ratio is a key measure of insurance profitability. The components
comprising the combined ratio are as follows:
Six Months Ended
June 30,
2015 2014
Loss Ratio:
Current Accident Year
Excluding Catastrophes 48.6 47.4
Catastrophes 13.0 14.7
Current Accident Year 61.6 62.1
Changes to Prior Accident Year (3.4 ) (4.6 )
Loss Ratio - Calendar Year 58.2 57.5
Expense Ratio 38.7 40.2
Combined Ratio 96.9 97.7
For the six months ended June 30(th), the accident year loss ratio improved by
0.5 points compared to 2014.
For the six months ended June 30, 2015, the current accident year loss ratio was
61.6 compared to 62.1 for the same period in 2014.
* The current accident year casualty loss ratio improved by 4.6 points to
68.7 in 2015 from 73.3 in 2014.
* The current accident year property loss ratio increased 2.9 points to 59.5
in 2015 from 56.6 in 2014 mainly due to a mix change in the business due to
the acquisition of American Reliable which has a higher loss ratio.
Calendar year results for the six months ended June 30, 2015 include a 3.4 point
reduction in the loss ratio related to prior accident years which was primarily
driven by better than expected emergence in general liability and professional
lines, and less than anticipated severity on property catastrophe losses within
Reinsurance Operations.
For the six months ended June 30(th), the expense ratio improved from 40.2 in
2014 to 38.7 in 2015.
The improvement in the expense ratio is primarily attributable to synergies
realized as a result of the acquisition of American Reliable.
Global Indemnity plc's Gross and Net Premiums Written Results by Segment
Six Months Ended June 30,
Gross Premiums Written Net Premiums Written
2015 2014 2015 2014
Commercial
Lines $ 108,826 $ 113,548 $ 100,322 $ 103,695
Operations
Personal Lines 162,215 - 133,483 -
Operations
Reinsurance 38,343 46,554 38,304 45,538
Operations
Total $ 309,384 $ 160,102 $ 272,109 $ 149,233
Gross premiums written and net premiums written increased 93% and 82%,
respectively, compared to the same period in 2014.
Commercial Lines Operations: For the six months ended June 30, 2015, gross
premiums written and net premiums written decreased 4.2% and 3.3%, respectively,
compared to the same period in 2014. Underwriting actions were taken to improve
profitability which included non-renewing some property business to reduce
catastrophe exposure.
Personal Lines Operations: Personal lines is a new segment for the Company
resulting from the acquisition of American Reliable during the first quarter of
2015.
Gross premiums written include $23.0 million of business that is currently
written by American Reliable and is 100% ceded to insurance entities owned by
the former parent. Net premiums written were $133.5 million for the six months
ended June 30, 2015 compared to $133.6 million for the same period in 2014.
Reinsurance Operations: For the six months ended June 30, 2015, gross premiums
written and net premiums written decreased 17.6% and 15.9%, respectively,
compared to the same period in 2014. The decrease in gross and net premiums
written is due to competition in the property catastrophe reinsurance
marketplace.
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 30, Ended June 30,
2015 2014 2015 2014
Gross premiums $ 166,515 $ 82,905 $ 309,384 $ 160,102
written
Net premiums $ 146,005 $ 76,372 $ 272,109 $ 149,233
written
Net premiums $ 128,877 $ 66,017 $ 256,214 $ 133,561
earned
Net investment 9,141 7,677 17,382 15,961
income
Net realized 6,532 39,881 3,562 39,068
investment gains
Other income 577 155 1,129 323
Total revenues 145,127 113,730 278,287 188,913
Net losses and
loss adjustment 79,560 38,270 149,179 76,842
expenses
Acquisition costs
and other 50,926 27,171 99,184 53,656
underwriting
expenses
Corporate and
other operating 4,334 3,172 15,874 6,133
expenses
Interest expense 535 319 1,040 510
Income before 9,772 44,798 13,010 51,772
income taxes
Income tax (1,345 ) 11,590 (4,901 ) 9,741
expense (benefit)
Net income (1) $ 11,117 $ 33,208 $ 17,911 $ 42,031
(2)
Weighted average
shares 25,455 25,128 25,447 25,121
outstanding-basic
Weighted average
shares 25,681 25,313 25,660 25,302
outstanding-
diluted
Net income per $ 0.44 $ 1.32 $ 0.70 $ 1.67
share - basic
Net income per $ 0.43 $ 1.31 $ 0.70 $ 1.66
share - diluted
Combined ratio
analysis: (3)
Loss ratio 61.7 58.0 58.2 57.5
Expense ratio 39.5 41.2 38.7 40.2
Combined ratio 101.2 99.2 96.9 97.7
(1) Excluding the $5.4 million of acquisition expenses related to American
Reliable Insurance Company, net income would have been $23.3 million for the six
months ended June 30, 2015.
(2) Please see the footnotes at the bottom of the Summary Of Operating Income
for a reconciliation of net income to operating income.
(3) The loss ratio, expense ratio and combined ratio are 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.
GLOBAL INDEMNITY PLC
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited) December
June 30, 2015 31, 2014
ASSETS
Fixed Maturities:
Available for sale securities, at fair
value (amortized cost: 2015 - $1,541,284 $ 1,550,622 $ 1,283,475
and 2014 - $1,272,948)
Equity securities:
Available for sale, at fair value (cost: 121,238 122,048
2015 - $103,019 and 2014 - $99,297)
Other invested assets:
Available for sale securities, at fair
value (cost: 2015 - $28,887 and 2014 - 31,176 33,663
$33,174)
Total investments 1,703,036 1,439,186
Cash and cash equivalents 66,286 58,823
Restricted cash - 113,696
Premiums receivable, net 113,218 56,586
Reinsurance receivables, net 142,828 125,718
Funds held by ceding insurers 28,047 25,176
Deferred federal income taxes 26,884 20,250
Deferred acquisition costs 52,378 25,238
Intangible assets 30,630 17,636
Goodwill 7,134 4,820
Prepaid reinsurance premiums 34,619 4,725
Receivable for securities sold 997 60
Federal income taxes receivable 4,669 3,139
Other assets 49,732 34,980
Total assets $ 2,260,458 $ 1,930,033
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses $ 769,299 $ 675,472
Unearned premiums 295,334 120,815
Ceded balances payable 18,938 2,800
Contingent commissions 13,923 12,985
Margin borrowing facility 187,407 174,673
Other liabilities 44,302 34,998
Total liabilities 1,329,203 1,021,743
Shareholders' equity:
Ordinary shares, $0.0001 par value,
900,000,000 ordinary shares authorized; A
ordinary shares issued: 16,741,806 and
16,331,577 respectively; A ordinary shares 3 3
outstanding: 13,665,096 and 13,266,762,
respectively; B ordinary shares issued and
outstanding: 12,061,370 and 12,061,370,
respectively
Additional paid-in capital 528,259 519,590
Accumulated other comprehensive income, net 20,102 23,384
of taxes
Retained earnings 484,628 466,717
A ordinary shares in treasury, at cost: (101,737 ) (101,404 )
3,076,710 and 3,064,815 shares, respectively
Total shareholders' equity 931,255 908,290
Total liabilities and shareholders' $ 2,260,458 $ 1,930,033
equity
GLOBAL INDEMNITY PLC
SELECTED INVESTMENT DATA
(Dollars in millions)
Market Value as of
(Unaudited)
(Dollars in millions) June December
30, 2015 31, 2014
Fixed maturities $ 1,550.6 $ 1,283.5
Cash and cash equivalents 66.3 172.5
Total bonds and cash and cash equivalents 1,616.9 1,456.0
Equities and other invested assets 152.4 155.7
Total cash and invested assets, gross 1,769.3 1,611.7
Receivable/payable for securities sold 1.0 0.1
(purchased)
Total cash and invested assets, net $ 1,770.3 $ 1,611.8
(Unaudited) (Unaudited)
Three Months Six Months
Ended Ended
(Dollars in thousands) June June
30, 2015 (a) 30, 2015 (a)
Net investment income $ 9,141 $ 17,382
Net realized investment gains 6,532 3,562
Net change in unrealized investment losses (9,752 ) (5,155 )
Net realized and unrealized investment (3,220 ) (1,593 )
returns
Total investment return $ 5,921 $ 15,789
Total investment return % annualized 1.3 % 1.8 %
Average total cash and invested assets $ 1,776,326 $ 1,758,103
(a) Amounts in this table are shown on a pre-tax basis.
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,
2015 2014 2015 2014
Operating $ 6,913 $ 8,758 $ ((1) ()) $
income 15,731 18,522
Adjustments:
Net realized
investment 4,204 24,450 2,180 23,509
gains, net of
tax
Total after-
tax 4,204 24,450 2,180 23,509
adjustments
Net income $ $ $ $
11,117 33,208 17,911 42,031
Weighted
average shares 25,455 25,128 25,447 25,121
outstanding -
basic
Weighted
average shares 25,681 25,313 25,660 25,302
outstanding -
diluted
Operating
income per $ 0.27 $ 0.35 $ 0.62 $ 0.74
share - basic
Operating
income per $ 0.27 $ 0.35 $ 0.61 $ 0.73
share -
diluted
(1) Excluding the $5.4 million of acquisition expenses related to American
Reliable Insurance Company, operating income would have been $21.1 million for
the six months ended June 30, 2015.
Note Regarding Operating Income
Operating income, a non-GAAP financial measure, is equal to net income excluding
after-tax net realized investment gains. Operating income is not a substitute
for net income determined in accordance with GAAP, and investors should not
place undue reliance on this measure.
Media
Stephen Ries
Senior Corporate Counsel
(610) 668-3270
sries(at)global-indemnity.com
Print
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Global Indemnity plc via GlobeNewswire
[HUG#1943384]
Datum: 04.08.2015 - 13:00 Uhr
Sprache: Deutsch
News-ID 411368
Anzahl Zeichen: 23612
contact information:
Town:
Bala Cynwyd
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 79 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Global Indemnity plc Reports Second Quarter 2015 Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Global Indemnity plc (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
