# Global Indemnity Group, LLC: Form 10-Q for the period ended Mar 31, 2025

- Company: [Global Indemnity Group, LLC](/companies/gbli.md) (CIK 1494904)
- Form: 10-Q
- Filed: 2025-05-07
- Accepted by EDGAR: May 7, 2025, 16:30 ET
- Period: 2025-03-31
- Accession: 0000950170-25-065766
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1494904/000095017025065766/gbli-20250331.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1494904/000095017025065766/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-01-01 to 2025-03-31 | $108.7m | us-gaap:Revenues |
| Income tax | 3 months, 2025-01-01 to 2025-03-31 | −$1.1m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-01-01 to 2025-03-31 | −$4.0m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-01-01 to 2025-03-31 | −$0.30 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-01-01 to 2025-03-31 | −$0.30 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-01-01 to 2025-03-31 | 13,867,271 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2025-01-01 to 2025-03-31 | $2.4m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Dividends paid | 3 months, 2025-01-01 to 2025-03-31 | $5.0m | us-gaap:PaymentsOfDividendsCommonStock |
| Cash and equivalents | at 2025-03-31 | $81.1m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Total assets | at 2025-03-31 | $1.71bn | us-gaap:Assets |
| Total liabilities | at 2025-03-31 | $1.03bn | us-gaap:Liabilities |
| Shareholders' equity | at 2025-03-31 | $687.1m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 39,822 characters.

The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the consolidated financial statements and accompanying notes of the Company included elsewhere in this report. Some of the information contained in this discussion and analysis or set forth elsewhere in this report, including information with respect to the Company’s plans and strategy, constitutes forward-looking statements that involve risks and uncertainties. Please see "Cautionary Note Regarding Forward-Looking Statements" at the end of this Item 2 for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained herein. For more information regarding the Company’s business and operations, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

In the first quarter of 2025, the Company realigned the composition of its reportable segments to reflect changes in how the Company now manages its operations. The Company changed the level at which its chief operating decision maker (“CODM”), the Chief Executive Officer of Global Indemnity Group, LLC, regularly reviews operating results and allocate resources to now include Agency and Insurance Services. As a result of these changes, the Company has three reportable segments:

- ***Agency and Insurance Services*** consists of (i) three agencies: Penn-America Insurance Services, LLC, J.H. Ferguson, LLC, which includes the Vacant Express division, and Collectibles Insurance Services, LLC that source, underwrite, and service policies and (ii) two strategic insurance product and service businesses: Liberty Insurance Adjustment Agency, Inc. a claims adjustment and claims service business and Kaleidoscope Insurance Technologies, Inc., a proprietary insurance software and services provider.
- ***Belmont Insurance Companies - Core (“Belmont Core”)***, previously known as the Penn-America segment, consists of insurance company operations for ongoing direct insurance products and assumed reinsurance products, which are offered in the excess and surplus lines marketplace.
- ***Belmont Insurance Companies - Non-Core (“Belmont Non-Core”)***, previously known as the Non-Core Operations segment, consists of insurance company operations for lines of business that have been de-emphasized or are no longer being written. The primary activities of Belmont Non-Core are servicing the run-off of polices/treaties, adjusting claims and estimating loss reserves on de-emphasized and terminated business.

Segment results for the quarter ended March 31, 2024 have been recast to conform to the new reportable segments.

### Financial Highlights

### 2025 First Quarter Results of Operations

- Gross written premiums increased 5.5% to $98.7 million.
- Net investment income of $14.8 million in 2025 was 1.8% better than the same period in 2024. Book yield on the fixed maturities portfolio increased to 4.5% at March 31, 2025 from 4.3% at March 31, 2024.
- Current accident year underwriting loss of $10.3 million for 2025 includes net losses and loss adjustment expenses related to California Wildfire events in January 2025 (“California Wildfires”), totaling $15.6 million, compared to $5.3 million of underwriting income for the same period in 2024. Excluding California Wildfires, the current accident year underwriting income would have been in line with 2024 at $5.3 million in 2025.
- Current accident year combined ratio was 111.5% in 2025 compared to 94.9% for the same period in 2024. Excluding California Wildfires, the current accident year combined ratio would have been 94.8% in 2025 compared to 94.9% for the same period in 2024.
- Net loss of $4.0 million, or ($0.30) per share diluted, in 2025 compared to $11.4 million, or $0.82 per share diluted, for the same period in 2024. Excluding California Wildfires, net income was $8.2 million or $0.58 per share in 2025.

### 2025 First Quarter Consolidated Financial Condition

- Total cash and investments of $1.4 billion at March 31, 2025 and December 31, 2024; fixed maturities and cash comprise 97% of total investments.
- Total assets of $1.7 billion at March 31, 2025 and December 31, 2024.
- No debt at March 31, 2025 and December 31, 2024.
- Since the Company's initial public offering in 2003, the total capital returned to shareholders was $634.2 million, comprising $522.2 million of share repurchases and $111.9 million of distributions / dividends. This includes $5.1 million of distributions during 2025.
- Shareholders' equity is $687.1 million at March 31, 2025 compared to $689.1 million at December 31, 2024.
- Book value per common share is $47.85 at March 31, 2025 compared to $49.98 at December 31 ,2024.

### Results of Operations

The following table summarizes the Company’s results for the quarters ended March 31, 2025 and 2024:

*(Dollars in thousands)*

|  | Quarters Ended March 31,% 2025 | 2024 | Change |
| --- | ---: | ---: | ---: |
| Gross written premiums | $98,675 | $93,488 | 5.5% |
| Net written premiums | $95,864 | $92,085 | 4.1% |
| Net earned premiums | $93,316 | $96,579 | (3.4%) |
| Other income | 417 | 345 | 20.9% |
| Total revenues | 93,733 | 96,924 | (3.3%) |
| Losses and expenses: |  |  |  |
| Net losses and loss adjustment expenses | 66,738 | 53,384 | 25.0% |
| Acquisition costs and other underwriting expenses | 37,507 | 38,269 | (2.0%) |
| Underwriting income (loss) | (10,512) | 5,271 | NM |
| Net investment income | 14,782 | 14,520 | 1.8% |
| Net realized investment gains | 136 | 847 | (83.9%) |
| Corporate expenses | (9,500) | (6,373) | 49.1% |
| Income (loss) before income taxes | (5,094) | 14,265 | (135.7%) |
| Income tax benefit (expense) | 1,105 | (2,899) | (138.1%) |
| Net income (loss) | $(3,989) | $11,366 | (135.1%) |
| Underwriting Ratios: |  |  |  |
| Loss ratio (1): | 71.5% | 55.3% |  |
| Expense ratio (2) | 40.2% | 39.6% |  |
| Combined ratio (3) | 111.7% | 94.9% |  |

NM - not meaningful

(1) The loss ratio is a GAAP financial measure that is generally viewed in the insurance industry as an indicator of underwriting profitability and is calculated by dividing net losses and loss adjustment expenses by net earned premiums.

(2) The expense ratio is a GAAP financial measure that is calculated by dividing the sum of acquisition costs and other underwriting expenses by net earned premiums.

(3) The combined ratio is a GAAP financial measure and is the sum of the Company’s loss and expense ratios.

### Premiums

The following table summarizes the change in premium volume by reportable segment:

*(Dollars in thousands)*

|  | Quarters Ended March 31, Belmont Core 2025 | 2024 | Belmont Non-Core 2025 | 2024 | Total 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Direct written premiums (1) | $87,467 | $91,132 | $87 | $92 | $87,554 | $91,224 |
| Assumed written premiums (2) | 10,922 | 2,916 | 199 | (652) | 11,121 | 2,264 |
| Gross written premiums (3) | $98,389 | $94,048 | $286 | $(560) | $98,675 | $93,488 |
| Net written premiums (4) | $95,634 | $92,596 | $230 | $(511) | $95,864 | $92,085 |

(1) Direct written premiums represent the amount received or to be received for insurance policies written, without reduction for reinsurance costs, ceded premiums or other deductions.

(2) Assumed written premiums represent the amount received or to be received for assumed reinsurance treaties, without reduction for reinsurance costs, ceded premiums or other deductions.

(3) Gross written premiums equal the sum of direct and assumed written premiums.

(4) Net written premiums equal gross written premiums less ceded written premiums.

Gross written premiums increased by 5.5% to $98.7 million in 2025 compared to $93.5 million for the same period in 2024.

Direct written premium produced by the Agency and Insurance Services segment for Belmont Core:

*(Dollars in thousands)*

|  | Quarters Ended March 31, 2025 | 2024 | % Change |
| --- | ---: | ---: | ---: |
| Wholesale Commercial | $64,884 | $61,056 | 6.3% |
| InsurTech | 15,020 | 12,508 | 20.1% |
| Direct written premiums excluding specialty products | 79,904 | 73,564 | 8.6% |
| Specialty Products | 7,563 | 17,568 | (57.0%) |
| Total direct written premiums | $87,467 | $91,132 | (4.0%) |

- In the aggregate, direct written premiums for Wholesale Commercial and InsurTech grew by 8.6%. This growth was driven by premium rate increases, new agency appointments, organic growth of existing agents, and new products.
- Direct written premiums for Specialty Products declined by 57.0% due to terminating products not meeting profitability expectations. Excluding terminated business, growth in gross written premiums would have been 7.3%.

Assumed written premium produced by the Belmont segments:

*(Dollars in thousands)*

|  | Quarters Ended March 31, 2025 | 2024 | % Change |
| --- | ---: | ---: | ---: |
| Belmont Core | $10,922 | $2,916 | 274.6% |
| Belmont Non-Core | 199 | (652) | 130.5% |
| Total assumed written premiums | $11,121 | $2,264 | 391.2% |

- Belmont Core's assumed business grew to $10.9 million in 2025 from $2.9 million for the same period in 2024 due to new treaties incepting during 2024 and 2025.
- Belmont Non-Core's business represents run-off premium from non-renewed treaties.

### Underwriting Income

The components of income (loss) from the Company’s reportable segments and corresponding underwriting ratios are as follows:

*(Dollars in thousands)*

| Revenues: | Quarters Ended March 31, Agency and Insurance Services 2025 | 2024 | Belmont Core 2025 | 2024 | Belmont Non-Core 2025 | 2024 | Eliminations 2025 | 2024 | Total 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net earned premiums | $— | $— | $92,260 | $89,132 | $1,056 | $7,447 | $— | $— | $93,316 | $96,579 |
| Commission and service fee income (1) | 14,049 | — | — | — | — | — | (14,049) | — | — | — |
| Policy and installment fee income | 387 | — | — | 339 | 30 | 6 | — | — | 417 | 345 |
| Total revenues | 14,436 | — | 92,260 | 89,471 | 1,086 | 7,453 | (14,049) | — | 93,733 | 96,924 |
| **Losses and expenses:** |  |  |  |  |  |  |  |  |  |  |
| Net losses and loss adjustment expenses | — | — | 66,452 | 48,909 | 619 | 4,475 | (333) | — | 66,738 | 53,384 |
| Net commission expenses | — | — | 32,404 | 20,891 | 501 | 2,532 | (10,571) | — | 22,334 | 23,423 |
| Other underwriting expenses | 12,632 | — | 4,986 | 14,036 | 700 | 810 | (3,145) | — | 15,173 | 14,846 |
| Total losses and expenses | 12,632 | — | 103,842 | 83,836 | 1,820 | 7,817 | (14,049) | — | 104,245 | 91,653 |
| Underwriting income (loss) | $1,804 | $— | $(11,582) | $5,635 | $(734) | $(364) | $— | $— | $(10,512) | $5,271 |
| Underwriting Ratios: |  |  |  |  |  |  |  |  |  |  |
| Loss ratio: |  |  |  |  |  |  |  |  |  |  |
| Current accident year |  |  | 72.0% | 54.8% | 61.5% | 60.6% |  |  | 71.5% | 55.3% |
| Prior accident year |  |  | — | 0.1% | (2.9%) | (0.5%) |  |  | — | — |
| Calendar year loss ratio |  |  | 72.0% | 54.9% | 58.6% | 60.1% |  |  | 71.5% | 55.3% |
| Expense ratio |  |  | 40.6% | 39.2% | 113.7% | 44.9% |  |  | 40.2% | 39.6% |
| Combined ratio |  |  | 112.6% | 94.1% | 172.3% | 105.0% |  |  | 111.7% | 94.9% |
| Accident year combined ratio |  |  | 112.5% | 94.0% | 162.3% | 105.5% |  |  | 111.5% | 94.9% |

(1) Consists of intersegment revenues, which are eliminated in consolidation.

Underwriting loss of $10.5 million for 2025 includes net losses and loss adjustment expenses related to California Wildfires in January 2025, totaling $15.6 million, compared to $5.3 million of underwriting income for the same period in 2024. Excluding California Wildfires, the underwriting loss was $5.1 million in 2025. The current accident year combined ratio, excluding the impact of the California Wildfires of 16.7 points, was 94.8% in 2025 compared to 94.9% for the same period in 2024.

- Net earned premiums within the Belmont Core segment increased by 3.5% to $92.3 million for 2025 compared to $89.1 million for the same period in 2024 due to growth in its gross written premiums. Property net earned premiums were $37.7 million and $39.9 million for 2025 and 2024, respectively. Casualty net earned premiums were $54.6 million and $49.2 million for 2025 and 2024, respectively.
- Agency and Insurance Services segment recorded $10.6 million of commission income on direct premiums produced for Belmont Core and $3.5 million of service fee income for technology and claims services provided

to Belmont Core and Non-Core segments in 2025. There were no revenues for 2024 since these affiliated agreements incepted on January 1, 2025. The commission and service fee income for the Agency and Insurance Services segment are eliminated in the Company's Consolidated Financial Statements.

- Policy and installment fee income was $0.4 million and $0.3 million in 2025 and 2024, respectively.
- Net losses and loss adjustment expenses related to prior accident years were less than $0.1 million in 2025 and 2024.
- The current accident year loss ratio increased by 16.2 points to 71.5% for 2025 compared to 55.3 for the same period in 2024 driven by the California Wildfires which impacted the current accident year loss ratio by 16.7 points.

The current accident year net losses and loss adjustment expenses and loss ratio are summarized as follows:

*(Dollars in thousands)*

| Property | Quarters Ended March 31, 2025 | 2024 | % Change | Quarters Ended March 31, 2025 | 2024 | Point Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Non-catastrophe | $16,968 | $16,747 | 1.3% | 44.9% | 41.9% | 3.0 |
| Catastrophe | 17,867 | 3,273 | 445.9% | 47.4% | 8.2% | 39.2 |
| Total property | 34,835 | 20,020 | 74.0% | 92.3% | 50.1% | 42.2 |
| Casualty | 31,900 | 33,363 | (4.4%) | 57.4% | 58.9% | (1.5) |
| Total accident year | $66,735 | $53,383 | 25.0% | 71.5% | 55.3% | 16.2 |

- The current accident year non-catastrophe property loss ratio was 44.9% in 2025 compared to 41.9% for the same period in 2024, an increase of 3.0 points driven by higher claims frequency.
- The current accident year catastrophe net losses and loss adjustment expenses increased to $17.9 million compared to $3.3 million for the same period in 2024. Excluding the California Wildfires, catastrophe net losses and loss adjustment expenses would have been $2.3 million or a loss ratio of 6.0% in 2025 compared to $3.3 million of catastrophe net losses and loss adjustment expenses or an 8.2% catastrophe loss ratio for the same period in 2024.
- The current accident year casualty loss ratio improved by 1.5 points in 2025 mainly driven by improved pricing from rate increases in 2024.

The following table summarizes the components of the expense ratio for the quarters ended March 31, 2025 and 2024:

|  | Quarters Ended March 31, 2025 | 2024 | Point Change |
| --- | ---: | ---: | ---: |
| Net commission expenses | 23.9% | 24.3% | (0.4) |
| Other underwriting expenses | 16.3% | 15.3% | 1.0 |
| Expense Ratio | 40.2% | 39.6% | 0.6 |

- The increase in the expense ratio is primarily due to decline in earned premiums within Belmont Non-Core and prior accident year commission adjustment.

### Net investment income

Net investment income increased 1.8% to $14.8 million in 2025 from $14.5 million for the same period in 2024 mainly driven by improved yield on the Company’s fixed maturities portfolio offset by performance of the Company’s investments in limited partnerships.

*(Dollars in thousands)*

|  | Quarters Ended March 31, 2025 | 2024 | Change |
| --- | ---: | ---: | ---: |
| Fixed maturities | $14,868 | $13,923 | 945 |
| Limited partnerships | (86) | 597 | (683) |
| Net investment income | $14,782 | $14,520 | 262 |

- Net investment income from the Company’s fixed maturities portfolio increased 7% due to an increase in book yield on the portfolio. The book yield on the Company’s fixed maturities portfolio was 4.5% at March 31, 2025 compared to 4.3% at March 31, 2024. During the quarter ended March 31, 2025, approximately $300 million of the fixed maturities portfolio was reinvested at 5.5%, consisting of high quality corporates and structured securities. As a result of this strategy, duration increased to 1.3 as of March 31, 2025 compared to duration of 0.8 as of December 31, 2024.
- Income from limited partnerships declined to a loss of $0.1 million in 2025 compared to a gain of $0.6 million for the same period in 2024 mainly due to the decline in fair value in one of the Company's limited partnership investments resulting from change in market interest rates.

The Company's fixed maturities portfolio continues to maintain high quality with an AA- average rating and consist of the following:

*(Dollars in thousands)*

|  | March 31, 2025 | December 31, 2024 |
| --- | ---: | ---: |
| Structured bonds (1) | $417,893 | $259,915 |
| Other fixed maturities | 353,996 | 246,747 |
| U.S. treasuries | 543,510 | 875,246 |
| Total fixed maturities | $1,315,399 | $1,381,908 |

(1) Structured bonds include asset-backed, mortgage-backed, commercial mortgage-backed and collateralized mortgage obligations.

Excluding the structured bonds, the average duration of the Company’s fixed maturities portfolio was 0.7 years as of March 31, 2025, compared with 0.5 years as of December 31, 2024. Structured bonds are subject to conditional prepayment rates whereas the remaining bonds have a set maturity date. Changes in interest rates can cause principal payments on structured bonds to extend or shorten which can impact duration.

### Net Realized Investment Gains

The components of net realized investment gains for the quarters ended March 31, 2025 and 2024 were as follows:

*(Dollars in thousands)*

|  | Quarters Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Equity securities | $123 | $872 |
| Fixed maturities | 13 | (25) |
| Net realized investment gains (losses) | $136 | $847 |

See Note 2 of the notes to the consolidated financial statements in Item 1 of Part I of this report for an analysis of total investment return on a pre-tax basis for the quarters ended March 31, 2025 and 2024.

### Corporate Expenses

Corporate expenses consist of outside legal fees, other professional fees, directors’ fees, management fees & advisory fees, salaries and benefits for holding company personnel, development costs for new products, impairment losses, and taxes incurred which are not directly related to operations. Corporate expenses increased to $9.5 million in 2025 compared to $6.4 million for the same period in 2024 primarily driven by $2.9 million of advisory fees consisting mainly of stock compensation approved and granted by the Board of Directors in the 1st quarter of 2025 related to the Company’s internal reorganization and employee costs related to investment in the Company’s newly formed agency and insurance services companies. See Note 8 of the notes to the consolidated financial statements in Item 1 of Part I of this report for additional information on the advisory fee.

### Income Tax Benefit / Expense

Income tax benefit was $1.1 million on net loss before tax of $5.1 million for the quarter ended March 31, 2025. This compares to income tax expense of $2.9 million on net income before tax of $14.3 million for the same period in 2024.

See Note 5 of the notes to the consolidated financial statements in Item 1 of Part I of this report for a comparison of income tax between periods.

### Net Income (Loss)

The Company had a net loss of $4.0 million during the quarter ended March 31, 2025. Excluding the California Wildfires net losses and loss adjustment expenses of $12.2 million after tax, net income would have been $8.2 million compared to a net income of $11.4 million for the same period in 2024.

### Reserves

Amounts recorded for unpaid losses and loss adjustment expenses represent management’s best estimate at March 31, 2025. Management’s best estimate is as of a particular point in time and is based upon known facts, the Company’s actuarial analyses, current law, and the Company’s judgment. This resulted in carried gross reserves of $794.8 million and $800.4 million as of March 31, 2025 and December 31, 2024, respectively, and net reserves of $732.1 million and $739.6 million as of March 31, 2025 and December 31, 2024, respectively. A breakout of the Company’s gross and net reserves is as follows:

*(Dollars in thousands)*

|  | March 31, 2025 Gross Reserves Case | IBNR (1) | Total | Net Reserves (2) Case | IBNR (1) | Total |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Belmont Core | $153,266 | $300,132 | $453,398 | $150,145 | $291,038 | $441,183 |
| Belmont Non-Core | 108,269 | 233,181 | 341,450 | 73,378 | 217,556 | 290,934 |
| Total | $261,535 | $533,313 | $794,848 | $223,523 | $508,594 | $732,117 |

*(Dollars in thousands)*

|  | December 31, 2024 Gross Reserves Case | IBNR (1) | Total | Net Reserves (2) Case | IBNR (1) | Total |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Belmont Core | $146,261 | $298,925 | $445,186 | $146,197 | $289,955 | $436,152 |
| Belmont Non-Core | 104,145 | 251,060 | 355,205 | 67,055 | 236,430 | 303,485 |
| Total | $250,406 | $549,985 | $800,391 | $213,252 | $526,385 | $739,637 |

(1) Net losses and loss adjustment expenses incurred but not reported, including the expected future emergence of case reserves.

(2) Does not include reinsurance receivables on paid net losses and loss adjustment expenses.

Gross and net reserves related to Belmont Non-Core are declining as it services the run-off of policies/treaties on de-emphasized and terminated business.

Each reserve category has an implicit frequency and severity for each accident year as a result of the various assumptions made. If the actual levels of frequency and severity are higher or lower than expected, the ultimate net losses and loss adjustment expenses will be different than management’s best estimate. For most of its reserve categories, the Company believes that frequency can be predicted with greater accuracy than severity. Therefore, the Company believes management’s best estimate is more likely influenced by changes in severity than frequency. The following table, which the Company believes reflects a reasonable range of variability around its best estimate based on historical experience and management’s judgment, reflects the impact of changes (which could be favorable or unfavorable) in frequency and severity on the Company’s current accident year net losses and loss adjustment expenses estimate of $66.7 million for claims occurring during the quarter ended March 31, 2025:

|  | Severity Change |  |  |  |  |
| ---: | ---: | ---: | ---: | ---: | ---: |
| **(Dollars in thousands)** | **-10%** | **-5%** | **0%** | **5%** | **10%** |
| **Frequency Change** **-5%** | (9,677) | (6,507) | (3,337) | (167) | 3,003 |
| **-3%** | (8,475) | (5,239) | (2,002) | 1,235 | 4,471 |
| **-2%** | (7,875) | (4,605) | (1,335) | 1,935 | 5,205 |
| **-1%** | (7,274) | (3,971) | (667) | 2,636 | 5,939 |
| **0%** | (6,674) | (3,337) | — | 3,337 | 6,674 |
| **1%** | (6,073) | (2,703) | 667 | 4,037 | 7,408 |
| **2%** | (5,472) | (2,069) | 1,335 | 4,738 | 8,142 |
| **3%** | (4,872) | (1,435) | 2,002 | 5,439 | 8,876 |
| **5%** | (3,670) | (167) | 3,337 | 6,840 | 10,344 |

The Company’s net reserves for losses and loss adjustment expenses of $732.1 million as of March 31, 2025 relate to multiple accident years. Therefore, the impact of changes in frequency and severity for more than one accident year could be higher or lower than the amounts reflected above.

### Reconciliation of non-GAAP financial measures and ratios

The tables below reconcile the non-GAAP financial measures or ratios, which excludes the impact of prior accident year adjustments and the California Wildfires, to its most directly comparable GAAP measure or ratio. The Company believes the non-GAAP financial measures or ratios are useful to investors when evaluating the Company's underwriting performance as trends in the Company's segments may be obscured by prior accident year adjustments and the California Wildfires. These non-GAAP financial measures or ratios should not be considered as a substitute for its most directly comparable GAAP measure or ratio and do not reflect the overall underwriting profitability of the Company.

*(Dollars in thousands)*

| Property | Quarters Ended March 31, 2025 Net losses and loss adjustment expenses | Loss Ratio | 2024 Net losses and loss adjustment expenses | Loss Ratio |
| --- | ---: | ---: | ---: | ---: |
| Non catastrophe property excluding the effect of prior accident year (1) | $16,968 | 44.9% | $16,747 | 41.9% |
| Effect of prior accident year | (560) | (1.5%) | (136) | (0.3%) |
| Non catastrophe property (2) | $16,408 | 43.4% | $16,611 | 41.6% |
| Catastrophe excluding the effect of prior accident year (1) | $17,867 | 47.4% | $3,273 | 8.2% |
| Effect of prior accident year | (257) | (0.7%) | (58) | (0.1%) |
| Catastrophe (2) | $17,610 | 46.7% | $3,215 | 8.1% |
| Total property excluding the effect of prior accident year (1) | $34,835 | 92.3% | $20,020 | 50.1% |
| Effect of prior accident year | (817) | (2.2%) | (194) | (0.4%) |
| Total property (2) | $34,018 | 90.1% | $19,826 | 49.7% |
| **Casualty** |  |  |  |  |
| Total casualty excluding the effect of prior accident year (1) | $31,900 | 57.4% | $33,363 | 58.9% |
| Effect of prior accident year | 820 | 1.5% | 195 | 0.3% |
| Total casualty (2) | $32,720 | 58.9% | $33,558 | 59.2% |
| **Total** |  |  |  |  |
| Total property and casualty excluding the effect of prior accident year (1) | $66,735 | 71.5% | $53,383 | 55.3% |
| Effect of prior accident year | 3 | — | 1 | — |
| Total property and casualty (2) | $66,738 | 71.5% | $53,384 | 55.3% |

(1) Non-GAAP financial measure / ratio

(2) Most directly comparable GAAP measure / ratio

### Reconciliation of non-GAAP financial measures and ratios continued

*(Dollars in thousands)*

| Current accident year underwriting income excluding California Wildfires | Quarters Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Underwriting income (loss) (1) | $(10,512) | $5,271 |
| Effect of prior accident year | 184 | 1 |
| Current accident year underwriting income (loss) | (10,328) | 5,272 |
| California Wildfires net losses and loss adjustment expenses | 15,600 | — |
| Current accident year underwriting income excluding California Wildfires (2) | $5,272 | $5,272 |
| **Net income excluding California Wildfires** |  |  |
| Net income (loss) (1) | $(3,989) | $11,366 |
| California Wildfires net losses and loss adjustment expenses (net of tax) (4) | 12,216 | — |
| Net income excluding California Wildfires (2) | $8,227 | $11,366 |
| **Underwriting income excluding California Wildfires net losses and loss adjustment expenses** |  |  |
| Underwriting income (loss) (1) | $(10,512) | $5,271 |
| California Wildfires net losses and loss adjustment expenses | 15,600 | — |
| Underwriting income excluding California Wildfires (2) | $5,088 | $5,271 |
| **Current accident year catastrophe net losses and loss adjustment expenses excluding California Wildfires** |  |  |
| Current accident year catastrophe net losses and loss adjustment expenses (3) | $17,867 | $3,273 |
| California Wildfires net losses and loss adjustment expenses | (15,600) | — |
| Current accident year catastrophe net losses and loss adjustment expenses excluding California Wildfires (2) | $2,267 | $3,273 |
| **Current accident year combined ratio excluding California Wildfires** |  |  |
| Combined ratio (1) | 111.7% | 94.9% |
| Effect of prior accident year | (0.2%) | — |
| Current accident year combined ratio | 111.5% | 94.9% |
| Impact of California Wildfires | (16.7%) | — |
| Current accident year combined ratio excluding California Wildfires (2) | 94.8% | 94.9% |
| **Current accident year catastrophe loss ratio excluding California Wildfires (2)** |  |  |
| Current accident year catastrophe loss ratio (3) | 47.4% | 8.2% |
| Impact of California Wildfires | (41.4%) | — |
| Current accident year catastrophe loss ratio excluding California Wildfires (2) | 6.0% | 8.2% |

(1) Most directly comparable GAAP measure / ratio

(2) Non-GAAP financial measure / ratio

(3) See previous table for reconciliation of non-GAAP financial measures or ratios for current accident year catastrophe net losses and loss adjustment expenses.

(4) Represents net losses and loss adjustment expenses of $15.6 million less tax benefit of $3.4 million which was calculated using the estimated annual effective tax rate of 21.7%.

### Critical Accounting Estimates and Policies

The Company’s consolidated financial statements are prepared in conformity with GAAP, which require it to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions.

The most critical accounting policies involve significant estimates and include those used in determining the liability for unpaid losses and loss adjustment expenses, recoverability of reinsurance receivables, investments, fair value measurements, goodwill and intangible assets, deferred acquisition costs, and taxation. For a detailed discussion on each of these policies, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes to any of these policies or underlying methodologies during the current year.

### Liquidity and Capital Resources

### Sources and Uses of Funds

Global Indemnity Group, LLC is a holding company. Its principal asset is its ownership in the shares of Belmont Holdings GX, Inc., an insurance holding company that owns the insurance companies: United National Insurance Company, Diamond State Insurance Company, Penn-America Insurance Company, Penn-Star Insurance Company, and Penn-Patriot Insurance Company, and Penn-America Underwriters, LLC, an agency and specialized service holding company.

Global Indemnity Group, LLC’s current short-term and long-term liquidity needs include but are not limited to the payment of corporate expenses, distributions to shareholders, and share repurchases. In order to meet its current short-term and long-term needs, its principal sources of cash include investment income, interest and principal payments on intercompany debt with Belmont Holdings GX, Inc., reimbursement for equity awards granted to employees of Belmont Holdings GX, Inc. and Penn-America Underwriters, LLC.

Penn-America Underwriters, LLC consists of three insurance agencies, two insurance service companies, and one service company whose current short-term and long-term liquidity needs include but are not limited to the payment of corporate expenses, operating expenses, and capital expenditures in developing information technology platforms. In order to meet its current short-term and long-term needs, its principal sources of cash include fees from third parties, commissions / service fees from Belmont Holdings GX, Inc., and capital contributions from Global Indemnity Group, LLC.

Belmont Holdings GX, Inc.’s current short-term and long-term liquidity needs include but are not limited to the payment of corporate expenses, payment of interest and principal on intercompany debt, and payment for equity awards granted to its employees by Global Indemnity Group, LLC. In order to meet its current short-term and long-term needs, its principal sources of cash include dividends from their insurance company subsidiaries and investment income.

The insurance companies’ current short-term and long-term liquidity needs include but are not limited to the payment of claims, commissions, operating expenses, federal taxes, and dividends. Its principal sources of funds include cash from direct and assumed business written, investment income, and proceeds from sales and maturities of investments.

The Company continuously reviews and assesses the short-term and long-term needs of each of its holding companies, service companies, and insurance companies. In addition, the Company periodically reviews opportunities related to business acquisitions and as a result, liquidity needs may arise in the future.

Belmont Holdings GX, Inc. is dependent on dividends from its insurance subsidiaries which are restricted by statute as to the amount of dividends that they may pay without the prior approval of regulatory authorities. The dividend limitations imposed by state laws are based on the statutory financial results of each insurance company that are determined by using statutory accounting practices that differ in various respects from accounting principles used in financial statements prepared in conformity with GAAP. See “Regulation - Statutory Accounting Principles” in Item 1 of Part I of the Company’s 2024 Annual Report on Form 10-K. Key differences relate to, among other items, deferred acquisition costs, limitations on deferred income taxes, reserve calculation assumptions and surplus notes. See Note 21 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2024 Annual Report on Form 10-K for further information on dividend limitations related to the Insurance Companies. There were no dividends declared by the Company's insurance subsidiaries during the quarter ended March 31, 2025.

### Cash Flows

Sources of operating cash consist primarily of net written premiums and investment income which are used to pay claims, underwriting expenses and corporate expenses. Operating cash flows are generally used for investing and financing activities. In accordance with the Company’s distribution policy, funds may be used to pay distributions to the Company’s shareholders.

Net cash provided by operating activities was $2.4 million and $22.7 million for the quarters ended March 31, 2025 and 2024, respectively, consisting of the following:

*(Dollars in thousands)*

|  | Quarters Ended March 31, 2025 | 2024 | Change |
| --- | ---: | ---: | ---: |
| Net premiums collected | $108,751 | $101,493 | $7,258 |
| Net losses and loss adjustment expenses paid | (80,851) | (47,606) | (33,245) |
| Underwriting and corporate expenses | (49,498) | (43,187) | (6,311) |
| Net investment income | 23,995 | 11,976 | 12,019 |
| Net cash provided by operating activities | $2,397 | $22,676 | $(20,279) |

- The decline in cash flows of $20.3 million in 2025 compared to the same period in 2024 is primarily driven by an increase in current accident year catastrophe property net losses and loss adjustment expenses paid and increase in prior accident year casualty net losses and loss adjustment expenses paid from its Belmont Non-Core Casualty lines of business.

The reconciliation of net income to net cash provided by operating activities is generally influenced by the following:

- the timing of the Company’s collection of premiums and payment of commissions;
- the timing of the Company’s settlements with its reinsurers; and
- the timing of the Company’s payments of net losses and loss adjustment expenses.

See the consolidated statements of cash flows in the consolidated financial statements in Item 1 of Part I of this report for details concerning the Company’s investing and financing activities.

### Liquidity

The Board of Directors approved a distribution payment of $0.35 per common share to all shareholders of record on the close of business on March 21, 2025. Distributions paid to common shareholders were $5.0 million during the quarter ended March 31, 2025. In addition, distributions of $0.1 million were paid to Global Indemnity Group, LLC’s preferred shareholder during the quarter ended March 31, 2025.

### Investment Portfolio

On July 31, 2023, the Company provided the Global Debt Fund, LP with a formal withdrawal request to fully redeem the partnership interest. Partial redemption proceeds of $4.4 million were received during the quarter ended March 31, 2025. The Global Debt Fund, LP had a fair market value of $13.3 million at March 31, 2025.

Other than the items discussed in the preceding paragraphs, there have been no material changes to the Company’s liquidity during the quarter ended March 31, 2025. Please see Item 7 of Part II in the Company’s 2024 Annual Report on Form 10-K for information regarding the Company’s liquidity.

### Capital Resources

There have been no material changes to the Company’s capital resources during the quarter ended March 31, 2025. Please see Item 7 of Part II in the Company’s 2024 Annual Report on Form 10-K for information regarding the Company’s capital resources.

### Off Balance Sheet Arrangements

The Company has no off balance sheet arrangements.

### Cautionary Note Regarding Forward-Looking Statements

Some of the statements under “Business,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this report are forward-looking statements within the meaning of Section 21E of the Security Exchange Act of 1934, as amended. These forward-looking statements reflect the Company’s current views as of the date of this report. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “project,” “plan,” “seek,” “intend,” or “anticipate” or the negative thereof or comparable terminology, and include discussions of strategy, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives, expectations or consequences of identified transactions or natural disasters, and statements about the future performance, operations, products and services of the companies.

The forward-looking statements contained in this report are primarily based on the Company’s current expectations and projections about future events and trends that it believes may affect the Company’s business, financial condition, results of operations, prospects, business strategy and financial needs. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, assumptions, including, but not limited to, the impact of legislative or regulatory actions, the impact of natural or man-made disasters, the sufficiency of the Company’s reserves, the impact of emerging claims issues, adverse capital market developments impacting investment performance, ability to effectively start-up or integrate new product opportunities, adverse effect of cyber-attacks, and other factors described in the section captioned “Risk Factors” in Item 1A of Part I in the Company’s 2024 Annual Report on Form 10-K. These risks are not exhaustive, and new risks and uncertainties emerge from time to time. It is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this report. The Company cannot provide assurance that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. Forward-looking statements are inherently uncertain and investors are cautioned not to unduly rely upon such statements.

The Company’s forward-looking statements speak only as of the date of this report or as of the date they were made. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

## Market risk

As filed, 1,067 characters.

Market risk is the risk of economic losses due to adverse changes in the estimated fair value of a financial instrument as the result of changes in interest rates, equity prices, credit risk, illiquidity, foreign exchange rates and commodity prices. The Company’s consolidated balance sheets includes the estimated fair values of assets that are subject to market risk. The Company’s primary market risks are interest rate risk and credit risks associated with investments in fixed maturities, equity price risk associated with investments in equity securities, and foreign exchange risk associated with premium received that is denominated in foreign currencies. The Company has no commodity risk.

There have been no material changes to the Company’s market risk since December 31, 2024. The Company’s investment grade fixed income portfolio continues to maintain high quality with an AA- average rating and a duration of 1.3 years.

Please see Item 7A of Part II in the Company’s 2024 Annual Report on Form 10-K for information regarding the Company’s market risk.

## Controls and procedures

As filed, 1,791 characters.

### Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to ensure that information required to be disclosed in the Company’s reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of March 31, 2025. Based upon that evaluation, and subject to the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2025, the design and operation of the Company’s disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

### Changes in Internal Control over Financial Reporting

There have been no changes in the Company’s internal controls over financial reporting that occurred during the quarter ended March 31, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

## Risk factors

As filed, 291 characters.

The Company’s results of operations and financial condition are subject to numerous risks and uncertainties described in Item 1A of Part I in the Company’s 2024 Annual Report on Form 10-K, filed with the SEC on March 11, 2025. The risk factors identified therein have not materially changed.

Filed May 7, 2025.
Source: SEC EDGAR, the filing index for accession 0000950170-25-065766. Last ingested by Listed: Oct 24, 2026, 15:07 ET. No prices; not investment advice.