Global Indemnity plc Reports Third Quarter 2016 Financial Results
(Thomson Reuters ONE) -
DUBLIN, Ireland, Nov. 03, 2016 (GLOBE NEWSWIRE) -- Global Indemnity plc
(NASDAQ:GBLI) today reported net income for the nine months ended September
30, 2016 of $11.5 million or $0.66 per share and operating income of $17.3
million or $0.99 per share. As of September 30th, book value per share was
$44.55, an increase of 3.7% 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 For the Nine Months
Ended September 30, Ended September 30,
--------------------------- --------------------------------
2016 2015 2016 2015
------------- ------------- ------------ -------------------
Gross Premiums $ 133.6 $ 150.1 $ 429.3 $ 459.5
Written
Net Premiums $ 115.1 $ 122.5 $ 357.2 $ 394.6
Written
Net income $ 9.5 $ (3.7 ) $ 11.5 $ 14.2
Net income (loss) $ 0.54 $ (0.15 ) $ 0.66 $ 0.55
per share
Operating income $ 8.3 $ 3.7 $ 17.3 $ 19.4
Operating income $ 0.47 $ 0.15 $ 0.99 $ 0.76
per share
Combined ratio
analysis:
Loss ratio 60.3 62.3 59.9 59.6
Expense ratio (1) 40.3 40.8 41.4 39.4
------------- ------------- ------------ -------------------
Combined ratio 100.6 103.1 101.3 99.0
------------- ------------- ------------ -------------------
(1) The expense ratio for the three months and nine months ended September
30, 2015 benefited approximately 0.8 points and 1.4 points, respectively, from
a purchase accounting adjustment related to the purchase of American Reliable
Insurance Company.
As of As of
September 30, June 30,
2016 2016
------------------- --------------------------
Book value per share $ 44.55 $ 43.91
Shareholders' equity $ 782.4 $ 770.7
Cash and invested assets (2) $ 1,528.2 $ 1,533.0
(2) Including receivable/(payable) for securities sold/(purchased)
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 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 and Nine Months
Ended September 30, 2016 and 2015
The combined ratio is a key measure of insurance profitability. The components
comprising the combined ratio are as follows:
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- ---------------------
2016 2015 2016 2015
----------- ----------- ----------- ---------
Loss Ratio:
Current Accident Year
Excluding Catastrophes 56.0 54.2 53.0 50.5
Catastrophes 12.2 14.9 13.9 13.6
----------- ----------- ----------- ---------
Current Accident Year 68.2 69.1 66.9 64.1
Changes to Prior Accident Year
(7.9 ) (6.8 ) (7.0 ) (4.5 )
----------- ----------- ----------- ---------
Loss Ratio - Calendar Year 60.3 62.3 59.9 59.6
Expense Ratio 40.3 40.8 41.4 39.4
----------- ----------- ----------- ---------
Combined Ratio 100.6 103.1 101.3 99.0
----------- ----------- ----------- ---------
For the three months ended September 30th, the calendar year loss ratio improved
by 2.0 points to 60.3 in 2016 from 62.3 in 2015.
For the three months ended September 30, 2016, the current accident year loss
ratio improved to 68.2 compared to 69.1 for the same period in 2015.
* The current accident year property loss ratio improved by 2.6 point to 66.0
in 2016 from 68.6 in 2015 primarily due to the decrease in the severity of
catastrophes experienced in 2016.
* The current accident year casualty loss ratio increased by 3.5 points to
74.2 in 2016 from 70.7 in 2015 primarily due to an increase in loss severity
in the agriculture line.
Calendar year results for the three months ended September 30, 2016 include a
7.9 point reduction in the loss ratio related to prior accident years. This was
primarily driven by lower than expected claims frequency and severity
experienced across multiple prior accident years within Commercial Lines,
primarily related to general liability, as well as a reduction related to the
Company's property treaties within the Reinsurance Operations.
For the three months ended September 30th, the expense ratio improved from 40.8
in 2015 to 40.3 in 2016.
The improvement in the expense ratio is due to efficiencies realized from the
integration of American Reliable into the Company's U.S. Insurance Operations.
For the nine months ended September 30th, the calendar year loss ratio increased
by 0.3 points to 59.9 in 2016 from 59.6 in 2015.
For the nine months ended September 30, 2016, the current accident year loss
ratio increased by 2.8 points to 66.9 compared to 64.1 for the same period in
2015.
* The current accident year property loss ratio increased 4.1 points to 66.5
in 2016 from 62.4 in 2015 primarily due to higher losses from convective
storms in 2016 as opposed to 2015.
* The current accident year casualty loss ratio improved by 1.6 points to
67.8 in 2016 from 69.4 in 2015. This improvement is mainly due to a decrease
in reported claim frequency reflecting the milder winter experienced in
2016 offset by an increase in loss severity in the agriculture line.
Calendar year results for the nine months ended September 30, 2016 include a
7.0 point reduction in the loss ratio related to prior accident years, which was
primarily driven by lower than expected claims frequency and severity
experienced across multiple prior accident years within Commercial Lines,
primarily related to general liability, and less than expected emergence on
property catastrophe treaties within the Reinsurance Operations.
For the nine months ended September 30th, the expense ratio increased from 39.4
in 2015 to 41.4 in 2016.
The increase is primarily due to the reduction in earned premiums in 2016 as a
result of the quota share arrangement and the 2015 expense ratio benefitting
from accounting adjustments related to the purchase of American Reliable.
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
--------------------------- --------------------------
2016 2015 2016 2015
------------- ------------- ------------- ------------
Commercial Lines $ 50,214 $ 52,920 $ 45,754 $ 49,325
Operations
Personal Lines 73,557 87,349 59,499 63,302
Operations
Reinsurance Operations 9,798 9,879 9,798 9,870
------------- ------------- ------------- ------------
Total $ 133,569 $ 150,148 $ 115,051 $ 122,497
------------- ------------- ------------- ------------
Nine Months Ended September 30,
------------------------------------------------------
Gross Premiums Written Net Premiums Written
--------------------------- --------------------------
2016 2015 2016 2015
------------- ------------- ------------- ------------
Commercial Lines $ 157,335 $ 161,746 $ 141,764 $ 149,647
Operations
Personal Lines 236,978 249,564 180,542 196,785
Operations
Reinsurance Operations 34,941 48,222 34,927 48,174
------------- ------------- ------------- ------------
Total $ 429,254 $ 459,532 $ 357,233 $ 394,606
------------- ------------- ------------- ------------
Commercial Lines Operations: Gross premiums written and net premiums written
decreased 5.1% and 7.2%, respectively, for the three months ended September
30, 2016, and decreased 2.7% and 5.3%, respectively, for the nine months ended
September 30, 2016 as compared to the same periods in 2015. The decline in
premiums is primarily due to limiting catastrophe exposure in certain areas.
Personal Lines Operations: For the three and nine months ended September
30, 2016, gross premiums written decreased 15.8% and 5.0%, respectively, and net
premiums written decreased by 6.0% and 8.3%, respectively, as compared to the
same periods in 2015. Gross premiums written include business written by
American Reliable that is ceded to insurance entities owned by Assurant under a
100% quota share reinsurance agreement in the amount of $7.3 million and $18.7
million for the three months ended September 30, 2016 and 2015, respectively,
and $30.9 million and $41.7 million for the nine months ended September
30, 2016 and 2015, respectively. Excluding the business that is ceded 100% to
insurance entities owned by Assurant, gross premiums written decreased by 3.5%
and 0.8% for the three and nine months ended September 30, 2016, respectively,
and net premiums written decreased by 6.0% and 8.3% for the three and nine
months ended September 30, 2016, respectively. The reduction in net premiums
written is due to purchasing additional reinsurance to reduce catastrophe
exposure.
Reinsurance Operations: For the three months ended September 30, 2016, gross
premiums written and net premiums written decreased 0.8% and 0.7%, respectively,
as compared to the same period in 2015. For the nine months ended September
30, 2016, gross premiums written and net premiums written both decreased 27.5%
compared to the same period in 2015. The decline was primarily due to one treaty
being non-renewed in 2016 in an effort to reduce catastrophe exposure.
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,
------------------------------- -------------------------------
2016 2015 2016 2015
--------------- --------------- --------------- ---------------
Gross premiums
written $ 133,569 $ 150,148 $ 429,254 $ 459,532
--------------- --------------- --------------- ---------------
Net premiums
written $ 115,051 $ 122,497 $ 357,233 $ 394,606
--------------- --------------- --------------- ---------------
Net premiums
earned $ 119,553 $ 124,707 $ 358,993 $ 380,921
Net investment
income 8,795 8,852 25,103 26,234
Net realized
investment
gains (losses) 1,928 (10,778 ) (9,057 ) (7,216 )
Other income
(1) 7,852 1,279 9,603 2,408
--------------- --------------- --------------- ---------------
Total revenues 138,128 124,060 384,642 402,347
Net losses and
loss adjustment
expenses 72,162 77,691 215,057 226,870
Acquisition
costs and other
underwriting
expenses 48,129 50,934 148,761 150,118
Corporate and
other operating
expenses 5,006 3,567 13,064 19,441
Interest
expense 2,233 1,595 6,677 2,635
--------------- --------------- --------------- ---------------
Income (loss)
before income
taxes 10,598 (9,727 ) 1,083 3,283
Income tax
expense
(benefit) 1,063 (5,981 ) (10,412 ) (10,882 )
--------------- --------------- --------------- ---------------
Net income
(loss) $ 9,535 $ (3,746 ) $ 11,495 $ 14,165
--------------- --------------- --------------- ---------------
Weighted
average shares
outstanding-
basic 17,255 25,464 17,241 25,453
--------------- --------------- --------------- ---------------
Weighted
average shares
outstanding-
diluted 17,540 25,464 17,516 25,685
--------------- --------------- --------------- ---------------
Net income
(loss) per
share - basic $ 0.55 $ (0.15 ) $ 0.67 $ 0.56
--------------- --------------- --------------- ---------------
Net income
(loss) per
share -
diluted (2) $ 0.54 $ (0.15 ) $ 0.66 $ 0.55
--------------- --------------- --------------- ---------------
Combined ratio
analysis: (3)
Loss ratio 60.3 62.3 59.9 59.6
Expense ratio 40.3 40.8 41.4 39.4
--------------- --------------- --------------- ---------------
Combined ratio 100.6 103.1 101.3 99.0
--------------- --------------- --------------- ---------------
(1) On September 30, 2016, the Company sold all the outstanding shares of
capital stock of one of its wholly owned subsidiaries, United National
Specialty Insurance Company, to an unrelated party and recognized a pretax
gain of $6.9 million. This transaction will not have an impact on the
Company's ongoing business operations. Business previously written by United
National Specialty Insurance Company has been and will be written by other
companies within the Company's U.S. Insurance Operations.
(2) For the quarter ended September 30, 2015, diluted loss per share is the
same as basic loss per share since there was a net loss for the period.
(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)
ASSETS September December
30, 2016 31, 2015
----------------- ----------------
Fixed Maturities:
Available for sale securities, at fair
value
(amortized cost: 2016 - $1,297,465 and
2015 - $1,308,333) $ 1,310,957 $ 1,306,149
Equity securities:
Available for sale, at fair value
(cost: 2016 - $102,899 and 2015 -
$100,157) 122,779 110,315
Other invested assets 32,635 32,592
----------------- ----------------
Total investments 1,466,371 1,449,056
Cash and cash equivalents 63,779 67,037
Premiums receivable, net 86,469 89,245
Reinsurance receivables, net 108,452 115,594
Funds held by ceding insurers 19,356 16,037
Federal income taxes receivable 4,656 4,828
Deferred federal income taxes 39,337 34,687
Deferred acquisition costs 55,141 56,517
Intangible assets 23,211 23,607
Goodwill 6,521 6,521
Prepaid reinsurance premiums 38,401 44,363
Receivable for securities sold - 172
Other assets 70,121 49,630
----------------- ----------------
Total assets $ 1,981,815 $ 1,957,294
----------------- ----------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses $ 664,382 $ 680,047
Unearned premiums 278,561 286,285
Ceded balances payable 11,718 4,589
Payables for securities purchased 1,921 -
Contingent commissions 9,392 11,069
Debt 173,162 172,034
Other liabilities 60,236 53,344
----------------- ----------------
Total liabilities 1,199,372 1,207,368
----------------- ----------------
Shareholders' equity:
Ordinary shares, $0.0001 par value,
900,000,000 ordinary shares authorized; A
ordinary shares issued:16,568,674 and
16,424,546 respectively; A ordinary shares
outstanding: 13,429,780 and 13,313,751,
respectively; B ordinary shares issued
and outstanding: 4,133,366 and 4,133,366,
respectively 3 3
Additional paid-in capital 532,498 529,872
Accumulated other comprehensive income,
net of taxes 23,279 4,078
Retained earnings 329,911 318,416
A ordinary shares in treasury, at cost:
3,138,894 and 3,110,795 shares,
respectively (103,248 ) (102,443 )
----------------- ----------------
Total shareholders' equity 782,443 749,926
----------------- ----------------
Total liabilities and shareholders'
equity $ 1,981,815 $ 1,957,294
----------------- ----------------
GLOBAL INDEMNITY PLC
SELECTED INVESTMENT DATA
(Dollars in millions)
Market Value as of
----------------------------------------
(Unaudited)
September 30, 2016 December 31, 2015
-------------------- -------------------
Fixed maturities $ 1,311.0 $ 1,306.1
Cash and cash equivalents 63.7 67.0
-------------------- -------------------
Total bonds and cash and cash 1,374.7 1,373.1
equivalents
Equities and other invested assets 155.4 143.0
-------------------- -------------------
Total cash and invested assets, 1,530.1 1,516.1
gross
Receivable/(payable) for securities (1.9 ) 0.2
sold (purchased)
-------------------- -------------------
Total cash and invested assets, net $ 1,528.2 $ 1,516.3
-------------------- -------------------
(Unaudited) (Unaudited)
Three Months Nine Months Ended
Ended September
September 30, 2016 (a)
30, 2016 (a)
Net investment income $ 8.8 $ 25.1
-------------------- -------------------
Net realized investment gains 1.9 (9.1 )
(losses)
Net change in unrealized investment 2.1 25.4
gains
-------------------- -------------------
Net realized and unrealized 4.0 16.3
investment returns
-------------------- -------------------
Total investment return $ 12.8 $ 41.4
-------------------- -------------------
Average total cash and invested $ 1,530.6 $ 1,522.2
assets (b)
-------------------- -------------------
Total investment return % annualized 3.3 % 3.6 %
-------------------- -------------------
(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 Nine Months
Ended September 30, Ended September 30,
---------------------------- ---------------------------------
2016 2015 2016 2015
------------- -------------- -------------- -----------------
Operating income
(loss) $ 8,262 $ 3,699 $ 17,337 $ 19,430
Adjustments:
Net realized
investment gains
(losses), net of
tax 1,273 (7,445 ) (5,842 ) (5,265 )
------------- -------------- -------------- -----------------
Net income
(loss) $ 9,535 $ (3,746 ) $ 11,495 $ 14,165
------------- -------------- -------------- -----------------
Weighted average
shares
outstanding -
basic 17,255 25,464 17,241 25,453
------------- -------------- -------------- -----------------
Weighted average
shares
outstanding -
diluted 17,540 25,464 17,516 25,685
------------- -------------- -------------- -----------------
Operating income
(loss) per share
- basic $ 0.48 $ 0.15 $ 1.01 $ 0.76
------------- -------------- -------------- -----------------
Operating income
(loss) per share
- diluted (1) $ 0.47 $ 0.15 $ 0.99 $ 0.76
------------- -------------- -------------- -----------------
(1) For the quarter ended September 30, 2015, diluted operating income per
share and basic operating income per share were the same due to a net loss for
the period.
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.
Contact:
Media
Stephen W. Ries
Senior Corporate Counsel
(610) 668-3270
sries(at)global-indemnity.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Global Indemnity plc via GlobeNewswire
Datum: 03.11.2016 - 21:27 Uhr
Sprache: Deutsch
News-ID 504971
Anzahl Zeichen: 32291
contact information:
Town:
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Kategorie:
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