Global Indemnity Group (GBLI) Q4 2025 earnings summary

Executive summary

• Fourth quarter combined ratio improved to 89.3%, generating $11 million in underwriting profit, a significant improvement from 96.6% in the prior year period.

• Full-year accident year combined ratios improved sequentially each quarter, excluding the large California wildfire loss in Q1.

• Core business (Belmont Core) gross written premiums grew 9%, driven by strong growth in assumed reinsurance, VacantExpress, and Collectibles.

• Ongoing digital transformation and restructuring investments continue to elevate expenses, but are expected to drive future scalability and efficiency.

Financial highlights

• Net investment income for the quarter was $15.3 million, slightly down from $16.1 million in the prior period.

• Operating income (excluding California wildfire impact) was $40.2 million, down from $42.9 million in 2024.

• Investment income for the year was $62.7 million, up slightly from $62.4 million in 2024, with a steady average yield of 4.4%.

• Calendar year underwriting income increased by $5 million, with a 1-point improvement in the combined ratio to 94.6%.

• Realized losses of $3.66 million were related to private credit fund investments.

Outlook and guidance

• Belmont Core gross premiums expected to grow 15%-20% or more in 2026, following product improvements and disciplined underwriting.

• Expense ratio expected to remain elevated through 2026, with improvement anticipated in 2027 as digital transformation completes.

• Book value per share, before dividends, targeted to increase at least 6%-7% annually over the next two years.

• Return on equity for the underlying business (excluding excess capital) is in the low- to mid-teens percentage.