Global Indemnity plc Reports Second Quarter 2016 Financial Results
(Thomson Reuters ONE) -
DUBLIN, Ireland, Aug. 04, 2016 (GLOBE NEWSWIRE) -- Global Indemnity plc
(NASDAQ:GBLI) today reported net income for the six months ended June 30, 2016
of $2.0 million or $0.11 per share and operating income of $9.1 million or $0.52
per share. As of June 30(th), book value per share was $43.91, an increase of
2.2% 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 Six Months As of As of
Ended June 30, June 30, December
31,
2016 2015 2016 2015
Gross Book value
Premiums $ 295.7 $ 309.4 per share $ 43.91 $ 42.98
Written
Net Shareholders'
Premiums $ 242.2 $ 272.1 equity $ 770.7 $ 749.9
Written
Cash and
invested $ 1,533.0 $ 1,516.3
assets(2)
Net income $ $
2.0 17.9
Net income $ $ (2) Including receivable/(payable) for
per share 0.11 0.70 securities sold/(purchased)
Operating $ $
income 9.1 15.7
Operating
income per $ 0.52 $ 0.61
share
Combined
ratio
analysis:
Loss 59.7 58.2
ratio
Expense 42.0 38.7
ratio (1)
Combined 101.7 96.9
ratio
(1) The expense ratio in 2016 was approximately 1.5 points higher in 2016
primarily due to purchasing additional catastrophe reinsurance, while the
2015 ratio benefitted approximately 1.7 points from a purchase accounting
adjustment. Excluding these factors, the expense ratio was consistent year-
over-year.
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 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 Six Months Ended June 30, 2016
The combined ratio is a key measure of insurance profitability. The components
comprising the combined ratio, by reportable business segment, for the six
months ended June 30, 2016 are as follows:
Commercial Personal Reinsurance
Lines Lines Operations
Loss Ratio 57.3 65.0 39.4
Expense Ratio 41.2 43.4 37.7
Combined Ratio 98.5 108.4 77.1
Loss Ratio:
Commercial Lines Operations:
The calendar year loss ratio for the Company's Commercial Lines was 57.3% for
2016 compared with 59.4% for 2015, an improvement of 2.1 points. The improvement
was primarily due to lower than expected claims severity experienced across
multiple prior accident years, primarily in liability lines. The current
accident year loss ratio increased 5.2 points from 65.0% in 2015 to 70.2% in
2016 primarily due to catastrophes.
Personal Lines Operations:
The 2016 loss ratio was 65.0%, compared to 62.7% for the comparable period of
2015, primarily due to an increase in catastrophe losses. There were no
adjustments to prior accident years for 2016 or 2015.
Reinsurance Operations:
The loss ratio for the Company's Reinsurance Operations was 39.4% for 2016
compared with 31.8% for 2015. The current accident year loss ratio increased
11.2 points from 43.3% for the six months ended June 30, 2015 to 54.5% for the
six months ended June 30, 2016, primarily due to catastrophic events in the
second quarter of 2016. The improvement in the loss ratio related to prior years
was driven by less than anticipated case incurred emergence on property
catastrophe treaties.
Expense ratio:
For the six months ended June 30, the total expense ratio increased from 38.7%
in 2015 to 42.0% in 2016. 1.7% of the increase is due to acquisition accounting
adjustments related to the purchase of American Reliable Insurance Company in
2015. The remainder of 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
Six Months Ended June 30,
Gross Premiums Written Net Premiums Written
2016 2015 2016 2015
Commercial
Lines $ 107,121 $ 108,826 $ 96,010 $ 100,322
Operations
Personal Lines 163,421 162,215 121,043 133,483
Operations
Reinsurance 25,143 38,343 25,129 38,304
Operations
Total $ 295,685 $ 309,384 $ 242,182 $ 272,109
Gross premiums written and net premiums written decreased 4.4% and 11.0%,
respectively, compared to the same period in 2015.
Commercial Lines Operations: For the six months ended June 30, 2016, gross
premiums written and net premiums written decreased 1.6% and 4.3%, respectively,
compared to the same period in 2015. The reduction in net premiums written was
primarily due to purchasing additional reinsurance to reduce catastrophe
exposure.
Personal Lines Operations: For the six months ended June 30, 2016, gross
premiums written increased 0.7% and net premiums written decreased 9.3% compared
to the same period in 2015. The reduction in net premiums written is due to
purchasing additional reinsurance to reduce catastrophe exposure.
Reinsurance Operations: For the six months ended June 30, 2016, gross premiums
written and net premiums written both decreased 34.4% compared to the same
period in 2015. This decrease is mainly due to a treaty being non-renewed in
2016 in an effort to reduce catastrophe exposure. In addition, the property
catastrophe reinsurance marketplace continues to be very competitive due to
excess capital.
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,
2016 2015 2016 2015
Gross premiums $ 154,319 $ 166,515 $ 295,685 $ 309,384
written
Net premiums $ 125,310 $ 146,005 $ 242,182 $ 272,109
written
Net premiums $ 117,804 $ 128,877 $ 239,440 $ 256,214
earned
Net investment 6,562 9,141 16,308 17,382
income
Net realized
investment gains (3,492 ) 6,532 (10,985 ) 3,562
(losses)
Other income 795 577 1,751 1,129
Total revenues 121,669 145,127 246,514 278,287
Net losses and
loss adjustment 78,111 79,560 142,895 149,179
expenses
Acquisition
costs and other 48,542 50,926 100,632 99,184
underwriting
expenses
Corporate and
other operating 4,255 4,334 8,058 15,874
expenses
Interest expense 2,229 535 4,444 1,040
Income (loss)
before income (11,468 ) 9,772 (9,515 ) 13,010
taxes
Income tax (6,303 ) (1,345 ) (11,475 ) (4,901 )
benefit
Net income $ (5,165 ) $ 11,117 $ 1,960 $ 17,911
(loss)
Weighted average
shares 17,244 25,455 17,234 25,447
outstanding-
basic
Weighted average
shares 17,244 25,681 17,485 25,660
outstanding-
diluted (1)
Net income
(loss) per share $ (0.30 ) $ 0.44 $ 0.11 $ 0.70
- basic
Net income
(loss) per share $ (0.30 ) $ 0.43 $ 0.11 $ 0.70
- diluted
Combined ratio
analysis (2):
Loss ratio 66.3 61.7 59.7 58.2
Expense ratio 41.2 39.5 42.0 38.7
Combined ratio 107.5 101.2 101.7 96.9
(1 ) For the quarter ended June 30, 2016, diluted loss per share is the same
as basic loss per share since there was a net loss for the period.
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
(2 ) 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, 2016 31, 2015
ASSETS
Fixed Maturities:
Available for sale securities, at fair
value $ 1,306,955 $ 1,306,149
(amortized cost: 2016 - $1,292,785 and
2015 - $1,308,333)
Equity securities:
Available for sale, at fair value
(cost: 2016 - $101,867 and 2015 - 119,008 110,315
$100,157)
Other invested assets 35,798 32,592
Total investments 1,461,761 1,449,056
Cash and cash equivalents 70,647 67,037
Premiums receivable, net 90,275 89,245
Reinsurance receivables, net 115,365 115,594
Funds held by ceding insurers 19,927 16,037
Federal income taxes receivable 4,840 4,828
Deferred federal income taxes 41,028 34,687
Deferred acquisition costs 56,051 56,517
Intangible assets 23,342 23,607
Goodwill 6,521 6,521
Prepaid reinsurance premiums 49,763 44,363
Receivable for securities sold 561 172
Other assets 66,013 49,630
Total assets $ 2,006,094 $ 1,957,294
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses $ 683,850 $ 680,047
Unearned premiums 294,426 286,285
Ceded balances payable 12,386 4,589
Contingent commissions 9,498 11,069
Debt 174,211 172,034
Other liabilities 60,974 53,344
Total liabilities 1,235,345 1,207,368
Shareholders' equity:
Ordinary shares, $0.0001 par value,
900,000,000 ordinary shares authorized; A
ordinary shares issued: 16,559,872 and
16,424,546 respectively; A ordinary shares 3 3
outstanding: 13,420,978 and 13,313,751,
respectively; B ordinary shares issued
and outstanding: 4,133,366 and 4,133,366,
respectively
Additional paid-in capital 531,542 529,872
Accumulated other comprehensive income, 22,076 4,078
net of taxes
Retained earnings 320,376 318,416
A ordinary shares in treasury, at cost:
3,138,894 and 3,110,795 shares, (103,248 ) (102,443 )
respectively
Total shareholders' equity 770,749 749,926
Total liabilities and shareholders' $ 2,006,094 $ 1,957,294
equity
GLOBAL INDEMNITY PLC
SELECTED INVESTMENT DATA
(Dollars in millions)
Market Value as of
(Unaudited) December
June 31, 2015
30, 2016
Fixed maturities $ 1,307.0 $ 1,306.1
Cash and cash equivalents 70.6 67.0
Total bonds and cash and cash equivalents 1,377.6 1,373.1
Equities and other invested assets 154.8 143.0
Total cash and invested assets, gross 1,532.4 1,516.1
Receivable/(payable) for securities sold 0.6 0.2
(purchased)
Total cash and invested assets, net $ 1,533.0 $ 1,516.3
(Unaudited) (Unaudited)
Three Months Six Months
Ended Ended
June June
30, 2016 (a) 30, 2016 (a)
Net investment income $ 6.6 $ 16.3
Net realized investment losses (3.5 ) (11.0 )
Net change in unrealized investment gains 11.5 23.3
Net realized and unrealized investment 8.0 12.3
returns
Total investment return $ 14.6 $ 28.6
Average total cash and invested assets $ 1,519.6 $ 1,524.6
Total investment return % annualized 3.8 % 3.8 %
(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 (LOSS)
(Unaudited)
(Dollars and shares in thousands, except per share data)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2016 2015 2016 2015
Operating income $ (2,915 ) $ 6,913 $ 9,076 $ 15,731
(loss)
Adjustments:
Net realized
investment gains (2,250 ) 4,204 (7,116 ) 2,180
(losses), net of
tax
Net income (loss) $ (5,165 ) $ 11,117 $ 1,960 $ 17,911
Weighted average
shares outstanding 17,244 25,455 17,234 25,447
-
basic
Weighted average
shares outstanding 17,244 25,681 17,485 25,660
-
diluted (1)
Operating income
(loss) per share - $ (0.17 ) $ 0.27 $ 0.53 $ 0.62
basic
Operating income
(loss) per share - $ (0.17 ) $ 0.27 $ 0.52 $ 0.61
diluted
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.
(1 ) For the quarter ended June 30, 2016, diluted loss per share is the same
as basic loss per share since there was a net loss for the period.
Contact:
Media
Stephen Ries
Senior Corporate Counsel
(610) 668-3270
sries(at)global-indemnity.com
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#2033437]
Datum: 04.08.2016 - 22:33 Uhr
Sprache: Deutsch
News-ID 487515
Anzahl Zeichen: 22966
contact information:
Town:
Bala Cynwyd
Kategorie:
Business News
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