|
DUBLIN, August 4, 2010 /PRNewswire/ --
Global Indemnity plc (Nasdaq: GBLI) today reported net income for the
three months ended June 30, 2010 of US$24.5 million or US$0.81 per share
compared to net income of US$16.3 million or US$0.64 per share for the same
period in 2009. Results for the six months ended June 30, 2010 include net
income of US$43.4 million or US$1.44 per share compared to net income of
US$23.4 million or US$1.09 per share for the same period of 2009. Operating
income for the three months ended June 30, 2010 was US$20.7 million or
US$0.69 per share compared to operating income of US$12.7 million or US$0.50
per share for the same period of 2009. Operating income for the six months
ended June 30, 2010 was US$28.6 million or US$0.95 per share compared to
operating income of US$26.2 million or US$1.22 per share for the same period
of 2009.
(Logo: http://photos.prnewswire.com/prnh/20100803/LT45156LOGO )
(Logo: http://www.newscom.com/cgi-bin/prnh/20100803/LT45156LOGO )
(All amounts in U.S. dollars unless otherwise noted.)
(Dollars in millions, except per
share data) For the Three Months
Ended June 30,
--------------
2010 2009
---- ----
Net income $24.5 $16.3
Net income per share $0.81 $0.64
Operating income $20.7 $12.7
Operating income per share $0.69 $0.50
(Dollars in millions, except per
share data) For the Six Months
Ended June 30,
2010 2009
---- ----
Net income $43.4 $23.4
Net income per share $1.44 $1.09
Operating income $28.6 $26.2
Operating income per share $0.95 $1.22
Operating income, a non-GAAP financial measure, is equal to net income
excluding after-tax net realized investment gains / (losses). A
reconciliation of operating income is set forth at the end of this press
release.
(Dollars in millions, except per share
amounts) As of As of
June 30, March 31,
2010 2010
---- ----
Book value per share $28.73 $28.05
Shareholders' equity $872.3 $850.6
Cash and invested assets $1,683.5 $1,731.1
(Dollars in millions, except per share
amounts) As of
December 31,
2009
----
Book value per share $27.48
Shareholders' equity $832.0
Cash and invested assets $1,731.3
Selected Financial Data for the Three Months Ended June 30, 2010:
- Net income of $24.5 million or $0.81 per share.
- Operating income of $20.7 million or $0.69 per share.
- Gross premiums written of $92.1 million.
- Current accident year combined ratio of 101.9.
- Calendar year combined ratio of 82.5.
- After tax investment return of 2.9%, including $3.8 million of realized
investment gains, net of tax.
- Shareholders' equity growth of 2.6%.
- Book value per share growth of 2.4%.
Selected Financial Data for the Six Months Ended June 30, 2010:
- Net income of $43.4 million or $1.44 per share.
- Operating income of $28.6 million or $0.95 per share.
- Gross premiums written of $184.9 million.
- Current accident year combined ratio of 102.7.
- Calendar year combined ratio of 91.9.
- After tax investment return of 4.1%, including $14.8 million of
realized investment gains, net of tax.
- Shareholders' equity growth of 4.8%.
- Book value per share growth of 4.6%.
DUBLIN, August 4, 2010 /PRNewswire/ --
Global Indemnity plc's Combined Ratio for the Three Months Ended June 30,
2010 and 2009
The combined ratio is a key measure of insurance profitability. The
components comprising the combined ratio are as follows:
Three Months Ended June 30,
----------------------------
2010 2009
---- ----
Loss Ratio:
Current Accident Year 64.9 61.8
Changes to Prior Accident Year (21.2) (2.9)
----- ----
Loss Ratio - Calendar Year 43.7 58.9
Expense Ratio 38.8 40.1
---- ----
Combined Ratio 82.5 99.0
---- ----
For the three months ended June 30th, the calendar year loss ratio
decreased by 15.2 points to 43.7 points in 2010 from 58.9 points in 2009.
- The current accident year loss ratio increased by 3.1 points to 64.9
points in 2010 from 61.8 in 2009.
-- The property loss ratio increased by 8.4 points to 60.3 points in
2010 from 51.9 points in 2009 primarily due to increased frequency
of storms and higher reinsurance costs.
-- The casualty loss ratio improved 0.8 points to 68.5 points in 2010
from 69.3 points in 2009 due primarily to the growth and improved
performance of the casualty business in reinsurance operations and
improved performance of the casualty business in insurance
operations.
- Current year results include an 18.3 point reduction in the loss ratio
due to better than anticipated emergence of $15.8 million of loss and
loss adjustment expenses in the insurance operation's casualty lines.
For the three months ended June 30th, the expense ratio decreased from
40.1 points in 2009 to 38.8 points in 2010.
- The expense ratio decrease is mainly attributable to an increase in
business from reinsurance operations, which has a lower expense ratio
than insurance operations.
Global Indemnity plc's Three Months Ended June 30, 2010 and 2009 Gross
and Net Premiums Written Results by Business Unit
(Dollars in thousands) Three Months Ended June 30,
Gross Premiums Written
----------------------
2010 2009
---- ----
Insurance Operations $61,531 $72,687
Reinsurance Operations 30,519 18,793
------ ------
Total $92,050 $91,480
======= =======
(Dollars in thousands) Three Months Ended June 30,
Net Premiums Written
--------------------
2010 2009
---- ----
Insurance Operations $49,011 $58,791
Reinsurance Operations 30,512 18,687
------ ------
Total $79,523 $77,478
======= =======
Insurance Operations: Gross premiums written for the three months ended
June 30, 2010 decreased 15.3%, and net premiums written for the three months
ended June 30, 2010 decreased 16.6%, compared to the same period in 2009. The
reduction in gross premium is comprised mainly of the following:
- $3.4 million due to terminated programs and agents.
- Price decreases in aggregate of approximately 2.7%.
- Continued soft market conditions.
Reinsurance Operations: Gross premiums written for the three months ended
June 30, 2010 increased 62.4%, and net premiums written increased 63.3%,
compared to the same period in 2009. The increase in gross and net premiums
written is primarily due to new excess of loss and quota share treaties.
Global Indemnity plc's Combined Ratio for the Six Months Ended June 30,
2010 and 2009
The combined ratio is a key measure of insurance profitability. The
components comprising the combined ratio are as follows:
Six Months Ended June 30,
-------------------------
2010 2009
---- ----
Loss Ratio:
Current Accident Year 64.0 61.8
Changes to Prior Accident Year (12.8) (1.9)
----- ----
Loss Ratio - Calendar Year 51.2 59.9
Expense Ratio 40.7 39.7
---- ----
Combined Ratio 91.9 99.6
==== ====
For the six months ended June 30th, the calendar year loss ratio
decreased by 8.7 points to 51.2 points in 2010 from 59.9 points in 2009.
- The current accident year loss ratio increased by 2.2 points to 64.0
points in 2010 from 61.8 in 2009.
-- The property loss ratio increased by 6.4 points to 58.6 points in
2010 from 52.2 points in 2009 primarily due to increased frequency
of storms and higher reinsurance costs.
-- The casualty loss ratio improved 0.6 points to 68.1 points in 2010
from 68.7 points in 2009 due primarily to the growth and improved
performance of the casualty business in reinsurance operations and
improved performance of the casualty business in insurance
operations.
- Current year results include a 10.9 point reduction in the loss ratio
due to better than anticipated emergence of $17.9 million primarily in
the insurance operation's casualty lines and $0.8 million in the
reinsurance operations property lines.
For the six months ended June 30th, the expense ratio increased from 39.7
points in 2009 to 40.7 points in 2010.
- The expense ratio increase is mainly attributable to a decline in net
premiums earned and the incurrence of infrastructure costs related to
new product development, information technology upgrades, and
redomestication expenses, partially offset by an increase in business
from reinsurance operations, which has a lower expense ratio than
insurance operations.
Global Indemnity plc's Six Months Ended June 30, 2010 and 2009 Gross and
Net Premiums Written Results by Business Unit
(Dollars in thousands) Six Months Ended June 30,
Gross Premiums Written
----------------------
2010 2009
---- ----
Insurance Operations $115,602 $140,307
Reinsurance Operations 69,301 50,361
------ ------
Total $184,903 $190,668
======== ========
(Dollars in thousands) Six Months Ended June 30,
Net Premiums Written
--------------------
2010 2009
---- ----
Insurance Operations $92,489 $114,260
Reinsurance Operations 68,515 49,831
------ ------
Total $161,004 $164,091
======== ========
Insurance Operations: Gross premiums written for the six months ended
June 30, 2010 decreased 17.6%, and net premiums written for the six months
ended June 30, 2010 decreased 19.1%, compared to the same period in 2009. The
reduction in gross premium is comprised mainly of the following:
- $6.5 million due to terminated programs and agents.
- Price decreases in aggregate of approximately 2.5%.
- Continued soft market conditions.
Reinsurance Operations: Gross premiums written for the six months ended
June 30, 2010 increased 37.6%, and net premiums written increased 37.5%,
compared to the same period in 2009. The increase in gross and net premiums
written is primarily due to new excess of loss and quota share treaties.
Note: Tables Follow
Global Indemnity plc
Consolidated Statements of Operations
(Unaudited)
(Dollars and shares in thousands, except per share data)
For the Three Months
Ended June 30,
--------------
2010 2009
---- ----
Gross premiums written $92,050 $91,480
======= =======
Net premiums written $79,523 $77,478
%2 |
