GBLI - Earnings call transcript Q3 2021 | Global Indemnity Group, LLC

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Operator

00:02 Good day, and welcome to Global Indemnity Group, LLC’s Third Quarter twenty twenty one Earnings Conference call. Today's conference call is being recorded. The speakers’ remarks may contain forward-looking statements.

Some of the forward-looking statements can be identified by the use of forward-looking words, including without limitation, believes, expects or estimates. We caution you that such forward-looking statements should not be regarded as a representation by us with the future, plans, estimates or expectations, contemplated by us will in fact be achieved. for our thirty on our we one, made the to the XX-K other operate refer the the with December of results. factors year-ended twenty SEC materially and Please the annual in that Form report for filings business important XX:XX environment description may which affect a twenty and future forward-looking Global events, of obligation to such expressly disclaims Indemnity Group, any result LLC otherwise. a is or or not statements, altered under new as information, any obligation and whether update I now like to XX:XX Mr. the turn to would call over Chief David of Charlton, Executive GBLI. Please proceed.

David Charlton

joining XX:XX are gross earnings Operations; Good morning. will dollars. joining provide call. with After me and quarter it Steve my for Thank additional you Officer; seventy Officer, President, Financial Reiner Q&A. for conclude XX:XX we'll Operating million our for one point twenty Tom hundred percent Insurance this Jonathan my and Ries, to closing Chief Oltman, strong premium will results. on complete our third open our and then Chief I Head Relations one point up Mauer, written Investor remarks, three our updates McGeehan, The Tom call. three growth of I remarks, of had

Ida the core for coming impact quarter right is XX:XX has drivers quarter. was at significant significant on Brokerage in for also reinsurance point point Our was growth us. with most fourteen dollars loss event negative Binding places seven businesses. million from the programs our Penn-America the casualty eight quarter. Hurricane Property dollars. and for the Net million seven the

point five would ratio combined been percent. Brokerage, eight Property eighty and Ida Excluding have

the that our recently would in and such I core home lines, component an dollars deal. will transaction integral as four Indemnity makes forty and million unearned Global unit, This focus strategy KX of in Mutual selecting selling two lines, premium Family our Insurance as strategy. and commercial million corporate Specialty million segment, Property Family license five operating of market American supporting manufactured receive point the on well partners great Dwelling KX a small unprofitable Brokerage were and middle losses than book now Day There Reliable on thank forecast in the sixty recent net the quarters taken forward. policies greater a review are Property these behind limits Business Let's Investor our habitational down The results. point So a negative division million remainder will similar year-to-date twenty focus and lines. policies ended twenty in be percent in Brokerage two. story businesses. are is business twenty past property ten with historically twenty go-forward programs going separate with to other Penn-America address Property The not in non dollars E&S since the continue (ph) unit target run-off of The actions are profitable areas. our [indiscernible] XX:XX Company. to cash teams for and business of to from and the Insurance our to XX:XX is that one dollars the The twenty property written and contained business one sale three business growth profitable fifty-state (ph) and we areas the of American further will of completed XX:XX to retaining American capital as reserve. Services By sense like these thirty related the

United and Property sale premium gain decrease reduction on a a businesses, Our reduction accelerate in the the catastrophe and the Penn-America in core growth volatility with dwelling Brokerage and see in coupled sale specialty exposures. XX:XX a of will in We enable written two manufactured home our and our commercial us to twenty National. twenty and significantly requirements will reduce reinsurance of and

commercial our we us to are Day, building enabling exposures earnings and a out shared, We property, transitioning reducing business percent Investor mix and by cat produce are I September consistent casualty seven XX:XX As thirty of most earnings volatility. on percent specialty more at operations. focused to quarter-to-quarter particularly substantially

continually long two. tune pleased excess achieve term to our enhance profitability. new to are businesses XX:XX our on I'm quarter fine consistent and will twenty first of and we still in professional launch three businesses to We and casualty, track environmental, advise twenty the

XX:XX for We and continue product, to analytics make our build out for three on comprise and my the all remarks. new provide that color Tom opening results. technology will critical GBLI. the key This hires concludes businesses now teams

Thomas McGeehan

percent at fifty their eight XX:XX five is Thank percent twenty percent written million National premium dollars increase point twenty close reduce was due million return catastrophe continues the dollars was thirty million of point to gross Gross point approximately bond first and an Penn-America you, twenty. five five of that to point premium underwriting in Hurricane strong for six eighteen Hurricane for last was investment to David and written Commercial the one and due third point premium Reinsurance Ida is dollars severity Gross line. written eight twenty. of thirty gross smaller quarter twenty’s due first one. percent. two to million to from low for in gross in casualty twenty high due from well. Twenty an four million Property twenty. was two twenty. one, dollars, written perform approximately underwriting was action on Specialty four premium percent ninety years The at several exposure. continued the up was the down twenty dollars, fourteen was twenty six point compared It several minimum Ranch has dollars twenty is six percent This thirty yields six gross from million nine compared adequate quarter from four twelve eleven was taken million to share September four twenty lines Stables sixty the six Ida. included point compared nine years growth. three nine flow XX:XX twenty dollars, global Underwriting Operating million cash income Commercial in premium an & XX:XX and property breakeven. operating down premiums primarily to of was was capital premiums at eleven in million in Brokerage five lines thirty, writing Farm, to three percent. premium providing cash casualty increasing quota participation million twenty written losses for XX:XX forward written six million point quarter is XX:XX Specialty reducing twenty to twenty of Programs twenty United Specialty the particular point which eleven twenty. twenty. catastrophe combined on September actions the ninety million down dollars improve losses good twenty. dollars morning. to to Binding recovery yield several growth was gross to ratio thirty by in written Its had not offset book the Brokerage taking on for percent. twenty one seven point XX:XX and twenty months million catastrophes point seven Lastly, the six due million an six point six portfolio. twenty up nine to Properties two Investment treaty, percent profitability. portfolio to the compared seven dollars, flow dollars, Property million four a in three written gross had This point percent on to treaties Duration point dollars. quarter of was six years dollars nine twenty dollars is Vacant down premium of of three attributable dollars and twenty loss at five loss point lower to was seven twenty income suffered -- dollars alternative income XX:XX assumed embedded primarily million compared from up the point two months fixed tax December fixed twenty one. thirty, at carry twenty portfolio somewhat income the one point

percent is flow premium The for written in increased dollars losses six take eight forty of September now premium business, the percentage Excluding a nine one, twenty gross pay turn premium grows increased twenty benefit. twenty earned period operating twenty than In respectively period David. forty twenty twenty. by recovery, earned ended net (ph) forty XX:XX flow I longer percent And the increase million gross the compared will to to three of collected Casualty months as due operating the same was twenty. it casualty to premiums thirty, comprised cash is cash same property one to premium mainly in losses, back written greater total XX:XX forty and for twenty to tax growth, million dollars. compared casualty

David Charlton

Tom. you, XX:XX Thank

of a the As is at couple we GBLI months transformation our term, plan. a not but shared five-year short of Investor ago, Day,

actionable the build working earnings, are businesses. hard are to core a we We and on impact on as historically business being had negative our our

open play Our open being we'll executed questions. by are our to the and solid team. committed strategy now and we now XX:XX concludes is is in -- and remarks a That call your

Operator

your Instructions] we Ferguson XX:XX [Operator & question. Partners. is a with be from question At will Dowling conducting first Julia with time, proceed session. this question-and-answer Our Please

Julia Ferguson

Hello. Can you taking me? XX:XX Good morning. for Thank question. hear you my

David Charlton

XX:XX Yes, ma'am.

Julia Ferguson

XX:XX Yes?

David Charlton

Yes, can. XX:XX we

Julia Ferguson

first question would be of the the questions. the A business sale My XX:XX part few of about Thank Yeah. Specialty reliable. American you. of Property

actions of Binding business cat and Property this your also lot a on I you understand should combined further exposed cat that with taking decrease are First your is your all, exposure. business this of

cat be of about know higher growth. the my we you Then percent the there think four going sale should any should further And looking the think that annual more understand on would [indiscernible] question five that down business kind Investor your combination even kind think should but of more we a premium about overall, that this growth earnings -- go also it forward be, how what for five and that? your percent. I for on would of Should on the Day expected underperforming, impact, you about which of I I we thirty So would the the base with range. on were ninety also impact of business that premium adjusted business, year, go-forward, XX:XX be indicated year underwriting your was your should end load target

all, So premiums. actually specialty dwelling? specifically first understand your I subject for question. my some from are profit property subset of some just first XX:XX and it's expected there's it? That's what assumes And manufactured the underwriting of business

David Charlton

part. XX:XX I'll try to This take the is David. first

five load So, one, point twenty four million. we a twenty yes, cat of had thirty

dollars on expect So would our dollars of of is around fully to we when not low business. business. -- about Brokerage dollars million of a then that the transitioned, business million million specialty [indiscernible] account ten reduction between taking And twelve fifteen is that property Property

us XX:XX just would of four you point five thirty how twenty the idea do address Tom, that that And you give affects want on some an So to other… versus the one. of

Thomas McGeehan

anything, of miss but XX:XX Yes. I will there please lot if There's step – in. a Julie, questions

when three million dollars. again, -- dwelling So, about and and two of the was one it we fifty I'm manufactured book the individually, fifty book modeled sorry, that home PML was

when Now way -- million the numbers, was about treaty fifty we renewed round the two and our one are tax hundred dollars one that dollars.

by significant size, necessarily PML. of the means not renews that June basis, ongoing on will treaty model, a an going catastrophe is forward full [indiscernible] reduction It's And the to of next our you fifty when one but be type XX:XX three. on reduce there it subjective doesn't in PML a Now, year. the

of written We David in rate of bottom annually. as we the growth XX:XX annual end terms the targeting. expect on would a and but have be a that of noted, targeted. Okay. how of growth today, six are we We would growth would Investor Day, that our our will for less XX:XX expect that And going premium don't it back had out at experiencing it we look. at that in Property on forward lines going what's reinsurance the higher structure reinsurance happening to that we that would the it and been commercial good will That's will deal. that we today result pass David the prospect We have our had the expect net increase We that businesses. Brokerage. are place. reductions in of into that new be Now, be and of compound premiums sale, could And on for noted our significantly as basis, in not cost, a least reinsurance we the answers I'll now percent reinsurance -- have lines strategizing buy KX has range be

David Charlton

XX:XX Yeah.

the that's mobile we state the home not we that on and in business all business. sold our Outside of really reinsurance which deal. renewal are that's homeowners specialty also KX dwelling and forward as for and long. the Louisiana rights property the in rights the the that collectible that and So sheets we the our sold kept included of part very businesses, [indiscernible] deal, excludes within then And the the are

Julia Ferguson

XX:XX So how is premium away you? rights overall going your much giving is to

David Charlton

ninety with renewed is numbers of will we includes what Yes. Louisiana. what five XX:XX Round retained complete, about million when dollars that plus deal the will and this the not sale we've it on be for rights

reduction this Julia. premium. a as in reduction will take eighteen it schedule, property specialty twelve see the months significant of So, to in benefit you'll But we get full to

Julia Ferguson

No. transaction. on Okay. there sense. That And some makes this you indicated XX:XX gain is

David Charlton

There's two Yeah. things. XX:XX

they thirty The the into lines twenty million be We million point dollars will four sublease between transaction up taking dollars. in now two of assuming our in broken dollars. eight also is will third two for about of Scottsdale nine the sale four will that's point space twenty million receive KX through one that space worth business is location, a pieces. twenty be

Julia Ferguson

any a will But gain gain right the or that's gap Okay. you cash gain, XX:XX recognize. and proceeds, --

David Charlton

American up is we still because to be going we twenty business basis. continuing standpoint, be taking back purchased booked not twenty now on XX:XX That hard from books. dollars eight going fifteen, just be look intangibles to a What is, clear, million of our a goodwill small will be we the forward on When immediately, yes. a this reliable gap the will we will happen in are have amount and the

that that those and software a specialty using is will the not forward assets extent we have business on basis. property going the We backing be to

quarter. We will writing be those the off fourth in

will will eight be gain, So it million but a be there less dollars. twenty

Julia Ferguson

Okay, Thank want load twelve million you. million thirty sense. I clarify, No that's dollars cat or? reduced it I just if the is XX:XX makes just understood of perfect. correctly, this -- to And one five by so

David Charlton

the expected that we for is average clear. that That to our amount be we XX:XX twenty when That's one. twenty plan had, loss was developed our

twelve thirty property. dollars five overall the million of was that cats was we yes, dollars So, and amount approximately that expected for specialty around million

Julia Ferguson

perfect. No Okay. XX:XX

David Charlton

XX:XX Strictly planned.

Julia Ferguson

And another, increased losses. severity XX:XX Okay. Yes. This totally loss is if property unrelated may I not understand. question. No, non-cat that's of I great. non-weather property

on You are not conference that. talked the only company who talks about calls it, other the companies about also

you economy? little more any explain is can of a So, how give the related kind current about of somewhat trend, to bit that it, if state the information there me you

Thomas McGeehan

especially why Property most another the book our of within seen and within XX:XX the part those both frequency business. of within a non-cat It's lot that's been lines. businesses of so Brokerage, -- the higher severity of dollars And we've and two has on retention net reason and on million a the up habitation

it. side the why that's are habitational that we of non-renewing So

pieces, that and very be they're unless that limits risk, those We in running well, continue property, our writing business our business business well. to have will areas of of we'll package write ten be segments million as outside and of than focus in actually and more dollars that on that be we'll [indiscernible] but moving managing other

Julia Ferguson

right. All XX:XX

trend for because in specific in you something several and of kind that any no releases that is mentioned thought your I like it there XX-K? press was So can you see quarters

Thomas McGeehan

[indiscernible]. XX:XX traditional loss really this that No, property good it's not

Julia Ferguson

right. All XX:XX

for me I think that’s for now. all

David Charlton

XX:XX Okay.

Operator

the session. have to Ladies for would question-and-answer reached I turn Steve end And over remarks. Ries of back call XX:XX closing to like we the gentlemen, and the

Steve Ries

earnings forward listening. update concludes our Look This to for again with you. Thank speaking you call. you Thank soon. XX:XX

Operator

today's This XX:XX concludes conference.

lines may your Thank at You disconnect participation. your this time. you for

Global Indemnity (GBLI) 9 Nov 212021 Q3 Earnings call transcript