Global Indemnity Group (GBLI) Q1 2025 earnings summary

Executive summary

• Gross written premiums rose to $98.7 million, up 6% year-over-year and 16% excluding terminated products, driven by growth in core commercial and InsurTech lines, while specialty products declined due to terminated unprofitable business.

• Q1 2025 net loss was $4.0 million, or ($0.30) per share, primarily due to $15.6 million in pre-tax losses from California Wildfires; excluding wildfires, net income would have been $8.2 million, or $0.58 per share.

• Internal reorganization and Project Manifest restructuring were completed by December 2024, resulting in a new segment structure, enhanced operational efficiency, and positioning for future product expansion.

• Combined ratio was 111.7% for Q1 2025; excluding wildfires, it was 94.8%, in line with the prior year.

Financial highlights

• Net earned premiums were $93.3 million, down from $96.6 million year-over-year, while net written premiums increased 4.1% to $95.9 million.

• Net investment income rose 2% to $14.8 million, with a book yield of 4.5% on fixed maturities and an annualized investment return of 5.4%.

• Underwriting loss was $10.5 million in Q1 2025; excluding wildfire losses, underwriting income was $5.1 million.

• Book value per share declined from $49.98 to $47.85 at March 31, 2025, affected by comprehensive loss, dividends, and stock compensation.

• Total cash and investments were $1.4 billion, with no debt outstanding.

Outlook and guidance

• Premium growth of at least 10% is expected for 2025, with management focused on expanding core commercial and InsurTech lines and leveraging new agency appointments.

• Underwriting performance for the last three quarters of 2025 is projected to improve over the same period in 2024.

• Expense ratio is targeted to trend toward 37% long-term, with 2025 expected in the 39-40% range.

• Specialty products will remain de-emphasized unless profitability improves.

• No material changes to risk factors or market risk outlook since year-end.