Global Indemnity plc Reports First Quarter 2013 Financial Results.

DUBLIN, May 7, 2013 /PRNewswire/ -- Global Indemnity plc (NASDAQ:GBLI) today reported net income for the three months ended March 31, 2013 of $12.4 million or $0.49 per share. As of March 31^st, book value per share was $32.91, an increase of 2.4% compared to book value per share of $32.15 at December 31, 2012. 

(Logo:  http://photos.prnewswire.com/prnh/20100803/LT45156LOGO )

Selected Operating and Balance Sheet Data (Dollars in millions, except per share data)

Cynthia Y. Valko, Chief Executive Officer, stated, "I am pleased with our 1^st quarter results.  We experienced growth in both our Insurance and Reinsurance segments.  We continued to see rate increases on renewal business in the U.S. and Wind River signed several new property treaties.  Our loss ratio improved due to actions that were taken to exit unprofitable business in late 2011.  Although yields are down, our portfolio had an annualized return of 7.5% largely driven by the performance of our common stock portfolio."

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 in the United States, as well as reinsurance throughout the world.  Global Indemnity plc's two primary divisions are:

• United States Based Insurance Operations
• Bermuda Based Reinsurance Operations

For more information, visit the Global Indemnity plc website at http://www.globalindemnity.ie.

Forward-Looking Information

Forward-looking statements contained in this press release are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties.  Investors should take caution that actual results may be materially different from the estimates expressed in, or implied, or projected by, the forward looking statements.  Please see the Company's periodic reports filed with the Securities and Exchange Commission for a discussion of the risks and uncertainties which may affect it and for a more detailed discussion of the cautionary note regarding forward-looking statements.    

Global Indemnity plc's Combined Ratio for the Three Months Ended March 31, 2013 and 2012

The combined ratio is a key measure of insurance profitability.  The components comprising the combined ratio are as follows:

For the three months ended March 31^st, the calendar year loss ratio decreased by 8.4 points to 56.8 points in 2013 from 65.2 points in 2012.

• Excluding catastrophes, the current accident year loss ratio decreased by 9.9 points to 53.1 points in 2013 from 63.0 points in 2012.  
  • Excluding catastrophes, the property loss ratio decreased from 48.9 points in the first quarter of 2012 to 43.0 points in the first quarter of 2013. Including catastrophes, the property loss ratio decreased by 2.1 points to 55.9 points in 2013 from 58.0 points in 2012. 
  • The casualty loss ratio decreased 4.4 points to 72.0 points in 2013 from 76.4 points in 2012.  
• Current year results include a 4.7 point reduction in the loss ratio related to prior accident years.  This decrease was primarily driven by better than expected emergence in the Insurance Operations' property lines for accident years 2008 through 2012.

For the three months ended March 31^st, the expense ratio increased from 35.9 points in 2012 to 43.7 points in 2013.

• The expense ratio increased primarily due to a decrease in earned premium volume and an increase in contingent commissions as a result of profitable treaties written in the Reinsurance Operations, as well as a premium deficiency charge recorded in 2011 which resulted in the 2012 expense ratio being lower than it otherwise would have been.  Excluding the impact of the premium deficiency charges, the three month ended March 31, 2012 expense ratio was 39.4%.

Global Indemnity plc's Three Months Ended March 31, 2013 and 2012 Gross and Net Premiums Written Results by Segment

Insurance Operations:  For the three months ended March 31, 2013, gross premiums written increased 6.8%, and net premiums written increased 16.4%, compared to the same period in 2012. This was primarily driven by an increase in the Company's small business classes, as well as a reduction in ceded premiums written as a result of the Company retaining more of its direct business.

Reinsurance Operations:  For the three months ended March 31, 2013, gross premiums written increased 140.3%, and net premiums written increased 154.4% compared to the same period in 2012.  This increase is primarily due to several new treaties written during 2013.

(1)    The loss ratio, expense ratio and combined ratio are non-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.

(2)    Excluding the impact of premium deficiencies, the expense ratio was 39.4% for the quarter ended March 31, 2012.

(a)    Amounts in this table are shown on a pre-tax basis.

(b)    Simple average of beginning and end of period, net of receivable/payable for securities.

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
Linda Hohn
Associate General Counsel
(610) 660-6862
[email protected]

SOURCE Global Indemnity plc