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1. Company Snapshot

1.a. Company Description

Global Indemnity Group, LLC, through its subsidiaries, provides specialty property and casualty insurance and reinsurance products worldwide.It operates through Commercial Specialty; Farm, Ranch, & Stable; and Reinsurance Operations segments.The Commercial Specialty segment distributes property, general liability, casualty, and professional lines products.


This segment sells its products through a network of wholesale general agents and program administrators.The Farm, Ranch, & Stable segment offers commercial farm auto and excess/umbrella coverage for the agriculture industry, as well as specialized insurance products for the equine mortality and equine major medical industry on an admitted basis through wholesalers and retail agents.The Reinsurance Operations segment provides offer third-party treaty reinsurance for casualty insurance and reinsurance companies, as well as professional liability products to companies through brokers.


Global Indemnity Group, LLC was founded in 2003 and is headquartered in Bala Cynwyd, Pennsylvania.

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1.b. Last Insights on GBLI

Global Indemnity Group, LLC faced challenges in recent months, despite a 54% growth in current accident year underwriting income and 19% increase in operating income. The company's decision to transfer its listing from the New York Stock Exchange to the Nasdaq Global Select Market may have caused short-term uncertainty. Additionally, increasing competition in the insurance market, as seen with Penn-America Underwriters' launch of a reinsurance MGA and acquisition of Sayata, an AI-enabled digital distribution marketplace, may impact Global Indemnity's market share.

1.c. Company Highlights

2. Global Indemnity Group's Q3 2025 Earnings: A Strong Underwriting Performance

Global Indemnity Group reported a robust financial performance in Q3 2025, driven by a significant improvement in underwriting profitability and a solid investment income. The company's net income was $12.5 million, consistent with the previous year's results, while underlying operating income increased by 19%. Earnings per share (EPS) came in at $1.08, beating analyst estimates of $0.76. The accident year combined ratio improved to 90.4%, generating an underwriting profit of $10.2 million, compared to 93.5% in the prior year period. Gross premium grew 13% over Q3 2024, driven by solid growth in various business segments.

Publication Date: Nov -17

📋 Highlights
  • Underwriting Profit Improvement: Combined ratio of 90.4% generated $10.2M underwriting profit, down from 93.5% in 2024.
  • Investment Income Growth: Net investment income rose 9% to $17.9M year-over-year, driven by short-duration portfolio performance.
  • Premium Expansion: Gross premium grew 13% YoY, led by Vacant Express, Collectibles, and Wholesale Commercial lines.
  • Shareholder Value Increase: Book value per share rose to $48.88 (+1.0%) with 1.8% return to shareholders in Q3 2025.
  • Capital Allocation Strategy: $273M discretionary capital deployed into corporates/MBS investments, no buyback program initiated.

Segment Performance

The company's growth was driven by solid performance in Vacant Express, Collectibles, Wholesale Commercial, and Assumed Reinsurance. Premium rate changes on the direct book are in the mid-single digits, tracking close to current expectations for loss trends. However, competition is increasing, particularly in new product lines, which may impact future growth.

Investment Income and Portfolio

The short-duration investment portfolio delivered net investment income of $17.9 million, a 9% increase from the prior year period. The company has invested $200 million in corporates and mortgage-backed securities this year and plans to restructure its short-term investment portfolio. The current equity portfolio represents about 2% of the total investment portfolio.

Valuation and Outlook

With a Price-to-Book Ratio (P/B) of 0.56, the company's valuation appears reasonable. The Board has decided against a buyback program, opting to deploy capital into growth opportunities instead. The company expects premium growth of 10% for the full year and anticipates improved underwriting performance in Q4 2025 compared to the same period in 2024. Analysts estimate next year's revenue growth at 9.0%. The investment portfolio remains well-positioned to invest in longer-duration maturities at higher yields, which should support future investment income growth.

3. NewsRoom

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Global Indemnity Group, LLC Announces Quarterly Distribution

Dec -04

Source: globenewswire.com

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Global Indemnity Group, LLC (GBLI) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Global Indemnity Group, LLC Reports Third Quarter 2025 Financial Results Highlighted by 54% Growth in Current Accident Year Underwriting Income and 19% Increase in Operating Income

Oct -30

Source: businesswire.com

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Global Indemnity Group, LLC Announces Transfer to Nasdaq Stock Exchange

Oct -21

Source: businesswire.com

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Global Indemnity Group Q3 2025 Earnings Release & Conference Call

Oct -13

Source: businesswire.com

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Penn-America Underwriters Launches Reinsurance MGA: First De Novo Venture in MGA Platform Expansion

Oct -03

Source: businesswire.com

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Penn-America Underwriters Acquires Sayata, an AI-Enabled Digital Distribution Marketplace for Commercial Insurance

Sep -02

Source: businesswire.com

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Global Indemnity Group, LLC Announces AM Best Affirmation of A (Excellent) Rating

Aug -08

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Penn-America

Expected Growth: 4.83%

Penn-America's 4.83% growth is driven by its strategic expansion into niche markets, increased adoption of its specialty insurance products, and effective cost management. Additionally, the company's strong underwriting discipline and favorable reserve development have contributed to its growth momentum.

Non-Core

Expected Growth: 4.83%

Non-Core segment of Global Indemnity Group, LLC exhibits 4.83% growth driven by strategic divestitures, improved underwriting discipline, and favorable reserve development. Additionally, the company's focus on reducing operational expenses and investing in digital transformation initiatives has contributed to the segment's growth.

7. Detailed Products

Workers' Compensation

Provides coverage for employees who are injured on the job, including medical expenses and lost wages.

General Liability

Protects businesses from financial loss due to accidents, injuries, or property damage.

Commercial Auto

Covers vehicles used for business purposes, including liability and physical damage.

Umbrella Insurance

Provides additional liability coverage beyond the limits of other insurance policies.

Professional Liability

Protects professionals against errors, omissions, and negligence claims.

Cyber Insurance

Covers businesses against cyber-attacks, data breaches, and other cyber-related risks.

Directors and Officers Liability

Protects corporate directors and officers against lawsuits and claims.

Employment Practices Liability

Covers businesses against employment-related claims, such as discrimination and harassment.

8. Global Indemnity Group, LLC's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Global Indemnity Group, LLC is moderate due to the presence of alternative insurance providers in the market.

Bargaining Power Of Customers

The bargaining power of customers is low for Global Indemnity Group, LLC as customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Global Indemnity Group, LLC as the company relies on a network of independent agents and brokers to distribute its products.

Threat Of New Entrants

The threat of new entrants is high for Global Indemnity Group, LLC due to the relatively low barriers to entry in the insurance industry and the increasing trend of insurtech startups.

Intensity Of Rivalry

The intensity of rivalry is high for Global Indemnity Group, LLC due to the highly competitive nature of the insurance industry and the presence of established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.92%
Debt Cost 3.95%
Equity Weight 98.08%
Equity Cost 6.32%
WACC 6.27%
Leverage 1.96%

11. Quality Control: Global Indemnity Group, LLC passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 5.3/10

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Yield: 8.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.98$

Current Price

27.98$

Potential

-0.00%

Expected Cash-Flows