Global Indemnity Group, LLC 10-Q

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the consolidated financial statements and accompanying notes of the Company included elsewhere in this report. Some of the information contained in this discussion and analysis or set forth elsewhere in this report, including information with respect to the Company’s plans and strategy, constitutes forward-looking statements that involve risks and uncertainties. Please see "Cautionary Note Regarding Forward-Looking Statements" at the end of this Item 2 for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained herein. For more information regarding the Company’s business and operations, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. In the first quarter of 2025, the Company realigned the composition of its reportable segments to reflect changes in how the Company now manages its operations. The Company changed the level at which its chief operating decision maker (“CODM”), the Chief Executive Officer of Global Indemnity Group, LLC, regularly reviews operating results and allocate resources to now include Agency and Insurance Services. As a result of these changes, the Company has three reportable segments: • Agency and Insurance Services includes (i) four agencies focused on sourcing, underwriting, and servicing primary and reinsurance business: Penn-America Insurance Services, LLC, Valyn Re LLC (formed in October 2025 to provide proportional treaty coverage for both commercial and personal lines), J.H. Ferguson & Associates, LLC, which includes the Vacant Express division, and Collectibles Insurance Services, LLC and (ii) three specialized insurance product and service businesses: Kaleidoscope Insurance Technologies, Inc., a developer of proprietary underwriting and policy systems supporting Katalyx Holdings agencies and broader digital initiatives; Sayata, an artificial intelligence-enabled insurance marketplace; and Liberty Insurance Adjustment Agency, Inc., a provider of claims evaluation, adjustment, and related services. • Belmont Insurance Companies - Core (“Belmont Core”) , previously known as the Penn-America segment, consists of insurance company operations for ongoing direct insurance products and assumed reinsurance products, which are offered in the excess and surplus lines marketplace. • Belmont Insurance Companies - Non-Core (“Belmont Non-Core”) , previously known as the Non-Core Operations segment, consists of insurance company operations for lines of business that have been de-emphasized or are no longer being written. The primary activities of Belmont Non-Core are servicing the run-off of polices/treaties, adjusting claims and estimating loss reserves on de-emphasized and terminated business. Segment results for the quarter and nine months ended September 30, 2024 have been recast to conform to the new reportable segments. Financial Highlights 2025 Third Quarter Results of Operations • Gross written premiums increased 8.6% to $108.4 million as compared to the same period in 2024. • Current accident year underwriting income increased 54% to $10.2 million for 2025 compared to $6.6 million of underwriting income for the same period in 2024. • Net investment income of $17.9 million in 2025 was 8.6% higher than the same period in 2024 due to increase in income from investment in limited partnerships of $1.5 million. • Current accident year combined ratio was 90.4% in 2025 compared to 93.5% for the same period in 2024. • Net income of $12.5 million, or $0.86 per share diluted, in 2025 compared to $12.8 million, or $0.92 per share diluted, for the same period in 2024. • On August 8, 2025, AM Best affirmed the Financial Strength Rating of A (Excellent) for the U.S. operating subsidiaries of Global Indemnity Group, LLC. 32 2025 Third Quarter Consolidated Financial Condition • Total cash and investments of $1.4 billion at September 30, 2025 and December 31, 2024; fixed maturities and cash comprise 96% of total investments. • Total assets of $1.7 billion at September 30, 2025 and December 31, 2024. • No debt at September 30, 2025 and December 31, 2024. • Since the Company's initial public offering in 2003, the total capital returned to shareholders was $644.4 million, comprising $522.2 million of share repurchases and $122.2 million of distributions / dividends. This includes $15.3 million of distributions during 2025. • Shareholders' equity increased by $8.8 million to $704.1 million at September 30, 2025 from $695.3 million at June 30, 2025. • Book value per common share increased to $48.88 at September 30, 2025 from $48.35 at June 30, 2025. The Company continued executing its post-reorganization strategy through the acquisition of Sayata and initiating the launch of Valyn Re LLC, a reinsurance managing general agency. The Company is focused on building significant scale in its Agency and Insurance Services segment under Katalyx Holdings LLC and across wholesale, retail and direct-to-consumer channels. This is intended to be accomplished through continued organic business growth, increasing operational efficiency, incubation and new products and services launches, including attracting third-party carrier capacity, and strategic acquisitions. In addition, the Company expects to make continued investments in technology and the Company’s Belmont Core segment. Results of Operations The following table summarizes the Company’s results for the quarters and nine months ended September 30, 2025 and 2024: Quarters Ended September 30, % Nine Months Ended September 30, % (Dollars in thousands) 2025 2024 Change 2025 2024 Change Gross written premiums $ 108,369 $ 99,767 8.6 % $ 313,845 $ 293,961 6.8 % Net written premiums $ 105,543 $ 97,177 8.6 % $ 305,321 $ 287,013 6.4 % Net earned premiums $ 99,670 $ 95,413 4.5 % $ 288,132 $ 284,806 1.2 % Other income 611 372 64.2 % 1,568 1,074 46.0 % Total revenues 100,281 95,785 4.7 % 289,700 285,880 1.3 % Losses and expenses: Net losses and loss adjustment expenses 49,875 52,400 (4.8 %) 169,561 159,446 6.3 % Acquisition costs and other underwriting expenses 40,415 37,553 7.6 % 114,837 111,790 2.7 % Underwriting income (loss) 9,991 5,832 71.3 % 5,302 14,644 (63.8 %) Net investment income 17,911 16,488 8.6 % 47,400 46,319 2.3 % Net realized investment gains (losses) (3,994 ) (512 ) NM (3,731 ) 540 NM Corporate expenses (7,844 ) (5,923 ) 32.4 % (24,872 ) (18,679 ) 33.2 % Income before income taxes 16,064 15,885 1.1 % 24,099 42,824 (43.7 %) Income tax expense (3,541 ) (3,125 ) 13.3 % (5,221 ) (8,605 ) (39.3 %) Net income $ 12,523 $ 12,760 (1.9 %) $ 18,878 $ 34,219 (44.8 %) Underwriting Ratios: Loss ratio (1) : 50.1 % 54.9 % 58.8 % 56.0 % Expense ratio (2) 40.5 % 39.4 % 39.9 % 39.2 % Combined ratio (3) 90.6 % 94.3 % 98.7 % 95.2 % NM - not meaningful 33 (1) The loss ratio is a GAAP financial measure that is generally viewed in the insurance industry as an indicator of underwriting profitability and is calculated by dividing net losses and loss adjustment expenses by net earned premiums. (2) The expense ratio is a GAAP financial measure that is calculated by dividing the sum of acquisition costs and other underwriting expenses by net earned premiums. (3) The combined ratio is a GAAP financial measure and is the sum of the Company’s loss and expense ratios. Premiums The following table summarizes the change in premium volume by reportable segment: Quarters Ended September 30, Belmont Core Belmont Non-Core Total (Dollars in thousands) 2025 2024 2025 2024 2025 2024 Direct written premiums (1) $ 92,916 $ 93,338 $ 43 $ (40 ) $ 92,959 $ 93,298 Assumed written premiums (2) 15,625 9,906 (215 ) (3,437 ) 15,410 6,469 Gross written premiums (3) $ 108,541 $ 103,244 $ (172 ) $ (3,477 ) $ 108,369 $ 99,767 Net written premiums (4) $ 105,708 $ 100,712 $ (165 ) $ (3,535 ) $ 105,543 $ 97,177 Nine Months Ended September 30, Belmont Core Belmont Non-Core Total (Dollars in thousands) 2025 2024 2025 2024 2025 2024 Direct written premiums (1) $ 278,156 $ 278,527 $ 161 $ 63 $ 278,317 $ 278,590 Assumed written premiums (2) 38,593 19,317 (3,065 ) (3,946 ) 35,528 15,371 Gross written premiums (3) $ 316,749 $ 297,844 $ (2,904 ) $ (3,883 ) $ 313,845 $ 293,961 Net written premiums (4) $ 308,215 $ 290,910 $ (2,894 ) $ (3,897 ) $ 305,321 $ 287,013 (1) Direct written premiums represent the amount received or to be received for insurance policies written, without reduction for reinsurance costs, ceded premiums or other deductions. (2) Assumed written premiums represent the amount received or to be received for assumed reinsurance treaties, without reduction for reinsurance costs, ceded premiums or other deductions. (3) Gross written premiums equal the sum of direct and assumed written premiums. (4) Net written premiums equal gross written premiums less ceded written premiums. Gross written premiums increased by 8.6% to $108.4 million for the quarter ended September 30, 2025 compared to $99.8 million for the same period in 2024 and increased 6.8% to $313.8 million for the nine months ended September 30, 2025 compared to $294.0 million for the same period in 2024. Direct written premium produced by the Agency and Insurance Services segment for Belmont Core: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2025 2024 % Change 2025 2024 % Change Wholesale Commercial $ 67,931 $ 61,938 9.7 % $ 201,888 $ 186,870 8.0 % Vacant Express 11,341 11,219 1.1 % 34,632 29,804 16.2 % Collectibles 5,087 4,471 13.8 % 13,372 12,139 10.2 % Direct written premiums excluding specialty products 84,359 77,628 8.7 % 249,892 228,813 9.2 % Specialty Products 8,557 15,710 (45.5 %) 28,264 49,714 (43.1 %) Total direct written premiums $ 92,916 $ 93,338 (0.5 %) $ 278,156 $ 278,527 (0.1 %) • In the aggregate, direct written premiums for Wholesale Commercial, Vacant Express, and Collectibles grew by 8.7% and 9.2% for the quarter and nine months ended September 30, 2025, respectively, as compared to same periods in 2024. This growth was driven by premium rate increases, new agency appointments, organic growth of existing agents, and new products. 34 • Direct written premiums for Specialty Products declined by 45.5% and 43.1% for the quarter and nine months ended September 30, 2025, respectively, as compared to same periods in 2024 due to terminating products not meeting profitability expectations. Excluding terminated business, Specialty Product's direct written premiums declined 3.9% for the quarter ended September 30, 2025 and grew by 12.3% for the nine months ended September 30, 2025. Assumed written premium produced by the Belmont segments: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2025 2024 % Change 2025 2024 % Change Belmont Core $ 15,625 $ 9,906 57.7 % $ 38,593 $ 19,317 99.8 % Belmont Non-Core (215 ) (3,437 ) (93.7 %) (3,065 ) (3,946 ) (22.3 %) Total assumed written premiums $ 15,410 $ 6,469 138.2 % $ 35,528 $ 15,371 131.1 % • Belmont Core's assumed business grew to $15.6 million and $38.6 million for the quarter and nine months ended September 30, 2025, respectively, from $9.9 million and $19.3 million for the same period in 2024 due to new treaties incepting during 2024 and 2025 and organic growth from existing treaties. • Belmont Non-Core's business represents run-off premium from non-renewed treaties. 35 Underwriting Income (Loss) The components of income (loss) from the Company’s reportable segments and corresponding underwriting ratios are as follows: Quarters Ended September 30, Agency and Insurance Services Belmont Core Belmont Non-Core Eliminations Total (Dollars in thousands) 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Revenues: Net earned premiums $ — $ — $ 99,388 $ 93,982 $ 282 $ 1,431 $ — $ — $ 99,670 $ 95,413 Commission and service fee income (1) 14,408 — — — — — (14,408 ) — — — Policy and installment fee income 570 — — 337 41 35 — — 611 372 Total revenues 14,978 — 99,388 94,319 323 1,466 (14,408 ) — 100,281 95,785 Losses and expenses: Net losses and loss adjustment expenses — — 52,665 51,382 (2,446 ) 1,018 (344 ) — 49,875 52,400 Net commission expenses — — 34,859 21,926 259 973 (11,031 ) — 24,087 22,899 Other underwriting expenses 13,800 — 5,361 13,703 200 951 (3,033 ) — 16,328 14,654 Total losses and expenses 13,800 — 92,885 87,011 (1,987 ) 2,942 (14,408 ) — 90,290 89,953 Underwriting income (loss) $ 1,178 $ — $ 6,503 $ 7,308 $ 2,310 $ (1,476 ) $ — $ — $ 9,991 $ 5,832 Underwriting Ratios: Loss ratio: Current accident year 50.3 % 54.7 % 84.0 % 74.1 % 50.1 % 55.0 % Prior accident year 2.7 % — (951.4 %) (3.0 %) — (0.1 %) Calendar year loss ratio 53.0 % 54.7 % (867.4 %) 71.1 % 50.1 % 54.9 % Expense ratio 40.5 % 37.9 % 162.8 % 134.5 % 40.5 % 39.4 % Combined ratio 93.5 % 92.6 % (704.6 %) 205.6 % 90.6 % 94.3 % Accident year combined ratio 90.7 % 92.1 % 177.6 % 181.3 % 90.4 % 93.5 % (1) Consists of intersegment revenues, which are eliminated in consolidation. The Company generated underwriting income of $10.0 million for the quarter ended September 30, 2025 compared to $5.8 million of underwriting income for the same period in 2024. The current accident year combined ratio improved 3.5 points to 90.4% for the quarter ended September 30, 2025 from 93.5% for the same period in 2024. • Net earned premiums within the Belmont Core segment increased by 5.8% to $99.4 million for the quarter ended September 30, 2025 compared to $94.0 million for the same period in 2024 due to growth in its gross written premiums. Property net earned premiums were $40.6 million and $43.0 million for the quarters ended September 30, 2025 and 2024, respectively. Casualty net earned premiums were $58.7 million and $50.9 million for the quarters ended September 30, 2025 and 2024, respectively. • Agency and Insurance Services segment recorded $11.0 million of commission income on direct premiums produced for Belmont Core and $3.4 million of service fee income for technology and claims services provided to Belmont Core and Non-Core segments during the quarter ended September 30, 2025. There were no revenues 36 for 2024 since these affiliated agreements incepted effective on January 1, 2025. The commission and service fee income for the Agency and Insurance Services segment are eliminated in the Company's Consolidated Financial Statements. • Policy and installment fee income was $0.6 million and $0.4 million for the quarters ended September 30, 2025 and 2024, respectively. • The current accident year loss ratio improved by 4.9 points to 50.1% for the quarter ended September 30, 2025 compared to 55.0% for the same period in 2024 primarily driven by an improvement in both the non-catastrophe and catastrophe property loss ratio. • Net losses and loss adjustment expenses related to prior accident years were a decrease of less than $0.1 million for the quarters ended September 30, 2025 and 2024. Please see Note 7 of the notes to the consolidated financial statements in Item 1 of Part I of this report for further discussion on prior accident year development. Nine Months Ended September 30, Agency and Insurance Services Belmont Core Belmont Non-Core Eliminations Total (Dollars in thousands) 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Revenues: Net earned premiums $ — $ — $ 289,161 $ 272,467 $ (1,029 ) $ 12,339 $ — $ — $ 288,132 $ 284,806 Commission and service fee income (1) 43,308 — — — — — (43,308 ) — — — Policy and installment fee income 1,456 — — 1,020 112 54 — — 1,568 1,074 Total revenues 44,764 — 289,161 273,487 (917 ) 12,393 (43,308 ) — 289,700 285,880 Losses and expenses: Net losses and loss adjustment expenses — — 175,226 151,417 (4,656 ) 8,029 (1,009 ) — 169,561 159,446 Net commission expenses — — 101,342 63,406 (20 ) 4,599 (33,058 ) — 68,264 68,005 Other underwriting expenses 39,474 — 14,938 41,048 1,402 2,737 (9,241 ) — 46,573 43,785 Total losses and expenses 39,474 — 291,506 255,871 (3,274 ) 15,365 (43,308 ) — 284,398 271,236 Underwriting income (loss) $ 5,290 $ — $ (2,345 ) $ 17,616 $ 2,357 $ (2,972 ) $ — $ — $ 5,302 $ 14,644 Underwriting Ratios: Loss ratio: Current accident year 59.2 % 55.7 % 57.2 % 62.6 % 58.9 % 56.0 % Prior accident year 1.4 % (0.1 %) 395.3 % 2.5 % (0.1 %) — Calendar year loss ratio 60.6 % 55.6 % 452.5 % 65.1 % 58.8 % 56.0 % Expense ratio 40.2 % 38.3 % (134.3 %) 59.4 % 39.9 % 39.2 % Combined ratio 100.8 % 93.9 % 318.2 % 124.5 % 98.7 % 95.2 % Accident year combined ratio 99.4 % 93.9 % (68.8 %) 118.9 % 98.7 % 95.0 % (1) Consists of intersegment revenues, which are eliminated in consolidation. . Underwriting income of $5.3 million for the nine months ended September 30, 2025 includes net losses and loss adjustment expenses related to California Wildfires in January 2025 ("California Wildfires"), totaling $15.8 million, compared to $14.6 37 million of underwriting income for the same period in 2024. Excluding California Wildfires, the underwriting income was $21.1 million for the nine months ended September 30, 2025. The current accident year combined ratio, excluding the impact of the California Wildfires of 5.5 points, was 93.2% for the nine months ended September 30, 2025 compared to 95.0% for the same period in 2024. • Net earned premiums within the Belmont Core segment increased by 6.1% to $289.2 million for the nine months ended September 30, 2025 compared to $272.5 million for the same period in 2024 due to growth in its gross written premiums. Property net earned premiums were $118.7 million and $122.1 million for the nine months ended September 30, 2025 and 2024, respectively. Casualty net earned premiums were $170.4 million and $150.4 million for the nine months ended September 30, 2025 and 2024, respectively. • Agency and Insurance Services segment recorded $33.1 million of commission income on direct premiums produced for Belmont Core and $10.3 million of service fee income for technology and claims services provided to Belmont Core and Non-Core segments for the nine months ended September 30, 2025. There were no revenues for 2024 since these affiliated agreements incepted effective on January 1, 2025. The commission and service fee income for the Agency and Insurance Services segment are eliminated in the Company's Consolidated Financial Statements. • Policy and installment fee income was $1.6 million and $1.1 million for the nine months ended September 30, 2025 and 2024, respectively. • The current accident year loss ratio increased by 2.9 points to 58.9% for the nine months ended September 30, 2025 compared to 56.0% for the same period in 2024 driven by the California Wildfires which impacted the current accident year loss ratio by 5.5 points. • Net losses and loss adjustment expenses related to prior accident years were a decrease of less than $0.1 million and ($0.1) million for the nine months ended September 30, 2025 and 2024, respectively. Please see Note 7 of the notes to the consolidated financial statements in Item 1 of Part I of this report for further discussion on prior accident year development. The current accident year net losses and loss adjustment expenses and loss ratio are summarized as follows: Quarters Ended September 30, Quarters Ended September 30, (Dollars in thousands) 2025 2024 % Change 2025 2024 Point Change Property Non-catastrophe $ 14,480 $ 18,199 (20.4 %) 35.6 % 42.3 % (6.7 ) Catastrophe 1,281 3,478 (63.2 %) 3.1 % 8.1 % (5.0 ) Total property 15,761 21,677 (27.3 %) 38.7 % 50.4 % (11.7 ) Casualty 34,158 30,757 11.1 % 57.9 % 58.7 % (0.8 ) Total accident year $ 49,919 $ 52,434 (4.8 %) 50.1 % 55.0 % (4.9 ) • The current accident year non-catastrophe property loss ratio improved by 6.7 points during the quarter ended September 30, 2025 as compared to the same period in 2024 driven by lower claims frequency. • The current accident year catastrophe loss ratio improved by 5.0 points during the quarter ended September 30, 2025 as compared to the same period in 2024 recognizing lower claims frequency. • The current accident year casualty loss ratio improved by 0.8 points during the quarter ended September 30, 2025 mainly driven by improved pricing from rate increases in 2024 and 2025. 38 Nine Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2025 2024 % Change 2025 2024 Point Change Property losses Non-catastrophe $ 47,654 $ 53,446 (10.8 %) 40.1 % 43.8 % (3.7 ) Catastrophe 24,350 10,274 137.0 % 20.5 % 8.4 % 12.1 Property losses 72,004 63,720 13.0 % 60.6 % 52.2 % 8.4 Casualty losses 97,596 95,841 1.8 % 57.7 % 58.9 % (1.2 ) Total accident year losses $ 169,600 $ 159,561 6.3 % 58.9 % 56.0 % 2.9 • The current accident year non-catastrophe property loss ratio was 40.1% for the nine months ended September 30, 2025 compared to 43.8% for the same period in 2024, an improvement of 3.7 points driven by lower claims frequency. • The current accident year catastrophe net losses and loss adjustment expenses increased to $24.4 million for the nine months ended September 30, 2025 compared to $10.3 million for the same period in 2024. Excluding the California Wildfires, catastrophe net losses and loss adjustment expenses would have been $8.6 million or a loss ratio of 7.2% for the nine months ended September 30, 2025 compared to $10.3 million of catastrophe net losses and loss adjustment expenses or an 8.4% catastrophe loss ratio for the same period in 2024. • The current accident year casualty loss ratio improved by 1.2 points for the nine months ended September 30, 2025 mainly driven by improved pricing from rate increases in 2024 and 2025. The following table summarizes the components of the expense ratio for the quarters and nine months ended September 30, 2025 and 2024: Quarters Ended September 30, Point Nine Months Ended September 30, Point 2025 2024 Change 2025 2024 Change Net commission expenses 24.1 % 24.0 % 0.1 23.7 % 23.9 % (0.2 ) Other underwriting expenses 16.4 % 15.4 % 1.0 16.2 % 15.3 % 0.9 Expense Ratio 40.5 % 39.4 % 1.1 39.9 % 39.2 % 0.7 • The increase in the expense ratio for the nine months ended September 30, 2025 is primarily due to the investment in underwriting personnel at Katalyx Holdings LLC. Net investment income Net investment income increased 8.6% to $17.9 million for the quarter ended September 30, 2025 from $16.5 million for the same period in 2024 and increased 2.3% to $47.4 million for the nine months ended September 30, 2025 from $46.3 million for the same period in 2024 mainly driven by performance in limited partnerships for the quarter and improved yield on fixed maturities for the nine months. Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2025 2024 Change 2025 2024 Change Fixed maturities $ 15,183 $ 15,752 $ (569 ) $ 45,081 $ 44,218 $ 863 Equities 716 181 535 1,001 615 386 Limited partnerships 2,012 555 1,457 1,318 1,486 (168 ) Net investment income $ 17,911 $ 16,488 $ 1,423 $ 47,400 $ 46,319 $ 1,081 39 • Net investment income from the Company’s fixed maturities portfolio decreased by 3.6% for the quarter ended September 30, 2025 as compared to the same period in 2024 primarily due to a lower average yield in 2025 as compared to 2024. Net investment income from the Company’s fixed maturities portfolio grew by 2.0% for the nine months ended September 30, 2025 as compared to the same period in 2024 due to a higher average yield in 2025 as compared to 2024. • Net investment income from equities increased by $0.5 million to $0.7 million for the quarter ended September 30, 2025 and increased by $0.4 million to $1.0 million for the nine months ended September 30, 2025 as compared to the same periods in 2024 primarily driven by the Company's $25 million investment in common equities during the third quarter of 2025. • Income from limited partnerships increased by $1.5 million for the quarter ended September 30, 2025 and decreased by $0.2 million for the nine months ended September 30, 2025. These fluctuations were primarily attributable to changes in the fair value of one of the Company's limited partnership investments. The Company's fixed maturities portfolio continues to maintain high quality with an AA- average rating and consists of the following: (Dollars in thousands) September 30, 2025 December 31, 2024 Structured bonds (1) $ 431,514 $ 259,915 Other fixed maturities 300,864 246,747 U.S. treasuries 577,001 875,246 Total fixed maturities $ 1,309,379 $ 1,381,908 (1) Structured bonds include asset-backed, mortgage-backed, commercial mortgage-backed and collateralized mortgage obligations. Excluding the structured bonds, the average duration of the Company’s fixed maturities portfolio was 0.6 years as of September 30, 2025, compared with 0.5 years as of December 31, 2024. Structured bonds are subject to conditional prepayment rates whereas the remaining bonds have a set maturity date. Changes in interest rates can cause principal payments on structured bonds to extend or shorten which can impact duration. Net Realized Investment Gains (Losses) The components of net realized investment gains (losses) for the quarters and nine months ended September 30, 2025 and 2024 were as follows: Quarters Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2025 2024 2025 2024 Equity securities $ (3,967 ) $ 289 $ (3,683 ) $ 1,373 Fixed maturities (27 ) (801 ) (48 ) (833 ) Net realized investment gains (losses) $ (3,994 ) $ (512 ) $ (3,731 ) $ 540 Net realized investment losses for the quarter and nine months ended September 30, 2025 were primarily due to changes in fair value on the Company's $25 million investment in common equities held during the quarter. See Note 3 of the notes to the consolidated financial statements in Item 1 of Part I of this report for an analysis of total investment return on a pre-tax basis for the quarters and nine months ended September 30, 2025 and 2024. Corporate Expenses Corporate expenses consist of outside legal fees, other professional fees, directors’ fees, management fees & advisory fees, salaries and benefits for holding company personnel, development costs for new products, impairment losses, and taxes incurred which are not directly related to operations. 40 Corporate expenses increased $1.9 million to $7.8 million for the quarter ended September 30, 2025 from $5.9 million for the same period in 2024 primarily due to an increase in professional fees related to the acquisition of Sayata and an increase in employee and recruiting costs related to investment in the Company’s newly formed Agency and Insurance Services segment. Corporate expenses increased $6.2 million to $24.9 million for the nine months ended September 30, 2025 compared to $18.7 million for the same period in 2024 primarily driven by $2.9 million of advisory fees consisting mainly of stock compensation approved and granted by the Board of Directors to Fox Paine & Company, LLC in the first quarter of 2025 related to the Company’s internal reorganization, an increase in professional fees related to the acquisition of Sayata, and an increase in employee and recruiting costs related to investment in the Company’s newly formed Agency and Insurance Services segment. See Note 9 of the notes to the consolidated financial statements in Item 1 of Part I of this report for additional information on the advisory fee. Income Tax Expense Income tax expense was $3.5 million on net income before tax of $16.1 million for the quarter ended September 30, 2025. This compares to income tax expense of $3.1 million on net income before tax of $15.9 million for the same period in 2024. Income tax expense was $5.2 million on net income before tax of $24.1 million for the nine months ended September 30, 2025. This compares to income tax expense of $8.6 million on net income before tax of $42.8 million for the same period in 2024. See Note 6 of the notes to the consolidated financial statements in Item 1 of Part I of this report for a comparison of income tax between periods. Net Income The Company had net income of $12.5 million during the quarter ended September 30, 2025 compared to net income of $12.8 million for the same period in 2024. The Company had net income of $18.9 million during the nine months ended September 30, 2025. Excluding the California Wildfires net losses and loss adjustment expenses of $12.3 million after tax, net income would have been $31.2 million for the nine months ended September 30, 2025 compared to net income of $34.2 million for the same period in 2024. 41 Reserves Amounts recorded for unpaid losses and loss adjustment expenses represent management’s best estimate at September 30, 2025. Management’s best estimate is as of a particular point in time and is based upon known facts, the Company’s actuarial analyses, current law, and the Company’s judgment. This resulted in carried gross reserves of $761.7 million and $800.4 million as of September 30, 2025 and December 31, 2024, respectively, and net reserves of $702.9 million and $739.6 million as of September 30, 2025 and December 31, 2024, respectively. A breakout of the Company’s gross and net reserves is as follows: September 30, 2025 Gross Reserves Net Reserves (2) (Dollars in thousands) Case IBNR (1) Total Case IBNR (1) Total Belmont Core $ 149,515 $ 305,055 $ 454,570 $ 148,390 $ 297,194 $ 445,584 Belmont Non-Core 107,843 199,268 307,111 72,875 184,432 257,307 Total $ 257,358 $ 504,323 $ 761,681 $ 221,265 $ 481,626 $ 702,891 December 31, 2024 Gross Reserves Net Reserves (2) (Dollars in thousands) Case IBNR (1) Total Case IBNR (1) Total Belmont Core $ 146,261 $ 298,925 $ 445,186 $ 146,197 $ 289,955 $ 436,152 Belmont Non-Core 104,145 251,060 355,205 67,055 236,430 303,485 Total $ 250,406 $ 549,985 $ 800,391 $ 213,252 $ 526,385 $ 739,637 (1) Net losses and loss adjustment expenses incurred but not reported, including the expected future emergence of case reserves. (2) Does not include reinsurance receivables on paid net losses and loss adjustment expenses. Gross and net reserves related to Belmont Non-Core are declining as it services the run-off of policies/treaties on de-emphasized and terminated business. Each reserve category has an implicit frequency and severity for each accident year as a result of the various assumptions made. If the actual levels of frequency and severity are higher or lower than expected, the ultimate net losses and loss adjustment expenses will be different than management’s best estimate. For most of its reserve categories, the Company believes that frequency can be predicted with greater accuracy than severity. Therefore, the Company believes management’s best estimate is more likely influenced by changes in severity than frequency. The following table, which the Company believes reflects a reasonable range of variability around its best estimate based on historical experience and management’s judgment, reflects the impact of changes (which could be favorable or unfavorable) in frequency and severity on the Company’s current accident year net losses and loss adjustment expenses estimate of $169.6 million for claims occurring during the nine months ended September 30, 2025: Severity Change (Dollars in thousands) -10% -5% 0% 5% 10% Frequency Change -5% (24,592 ) (16,536 ) (8,480 ) (424 ) 7,632 -3% (21,539 ) (13,314 ) (5,088 ) 3,138 11,363 -2% (20,013 ) (11,702 ) (3,392 ) 4,918 13,229 -1% (18,486 ) (10,091 ) (1,696 ) 6,699 15,094 0% (16,960 ) (8,480 ) — 8,480 16,960 1% (15,434 ) (6,869 ) 1,696 10,261 18,826 2% (13,907 ) (5,258 ) 3,392 12,042 20,691 3% (12,381 ) (3,646 ) 5,088 13,822 22,557 5% (9,328 ) (424 ) 8,480 17,384 26,288 The Company’s net reserves for losses and loss adjustment expenses of $702.9 million as of September 30, 2025 relate to multiple accident years. Therefore, the impact of changes in frequency and severity for more than one accident year could be higher or lower than the amounts reflected above. 42 Reconciliation of non-GAAP financial measures and ratios The tables below reconcile the non-GAAP financial measures or ratios, which excludes the impact of prior accident year adjustments in the first table and excludes the impact of prior accident year adjustments and the California Wildfires in the second table, to its most directly comparable GAAP measure or ratio. The Company believes the non-GAAP financial measures or ratios are useful to investors when evaluating the Company's underwriting performance as trends in the Company's segments may be obscured by prior accident year adjustments and the California Wildfires. These non-GAAP financial measures or ratios should not be considered as a substitute for the most directly comparable GAAP measures or ratios and do not reflect the overall underwriting profitability of the Company. Quarters Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (Dollars in thousands) Net losses and loss adjustment expenses Loss Ratio Net losses and loss adjustment expenses Loss Ratio Net losses and loss adjustment expenses Loss Ratio Net losses and loss adjustment expenses Loss Ratio Property Non catastrophe property excluding the effect of prior accident year (1) $ 14,480 35.6 % $ 18,199 42.3 % $ 47,654 40.1 % $ 53,446 43.8 % Effect of prior accident year (2,787 ) (6.8 %) (2,862 ) (6.7 %) (8,966 ) (7.6 %) (3,849 ) (3.1 %) Non catastrophe property (2) $ 11,693 28.8 % $ 15,337 35.6 % $ 38,688 32.5 % $ 49,597 40.7 % Catastrophe excluding the effect of prior accident year (1) $ 1,281 3.1 % $ 3,478 8.1 % $ 24,350 20.5 % $ 10,274 8.4 % Effect of prior accident year 1 — 143 0.3 % (632 ) (0.5 %) 511 0.4 % Catastrophe (2) $ 1,282 3.1 % $ 3,621 8.4 % $ 23,718 20.0 % $ 10,785 8.8 % Total property excluding the effect of prior accident year (1) $ 15,761 38.7 % $ 21,677 50.4 % $ 72,004 60.6 % $ 63,720 52.2 % Effect of prior accident year (2,786 ) (6.8 %) (2,719 ) (6.4 %) (9,598 ) (8.1 %) (3,338 ) (2.7 %) Total property (2) $ 12,975 31.9 % $ 18,958 44.0 % $ 62,406 52.5 % $ 60,382 49.5 % Casualty Total casualty excluding the effect of prior accident year (1) $ 34,158 57.9 % $ 30,757 58.7 % $ 97,596 57.7 % $ 95,841 58.9 % Effect of prior accident year 2,742 4.7 % 2,685 5.1 % 9,559 5.6 % 3,223 2.0 % Total casualty (2) $ 36,900 62.6 % $ 33,442 63.8 % $ 107,155 63.3 % $ 99,064 60.9 % Total Total property and casualty excluding the effect of prior accident year (1) $ 49,919 50.1 % $ 52,434 55.0 % $ 169,600 58.9 % $ 159,561 56.0 % Effect of prior accident year (44 ) — (34 ) (0.1 %) (39 ) (0.1 %) (115 ) — Total property and casualty (2) $ 49,875 50.1 % $ 52,400 54.9 % $ 169,561 58.8 % $ 159,446 56.0 % (1) Non-GAAP financial measure / ratio. (2) Most directly comparable GAAP measure / ratio. 43 Reconciliation of non-GAAP financial measures and ratios continued Nine Months Ended September 30, (Dollars in thousands) 2025 2024 Current accident year underwriting income excluding California Wildfires Underwriting income (1) $ 5,302 $ 14,644 Effect of prior accident year 130 703 Current accident year underwriting income (2) 5,432 15,347 California Wildfires net losses and loss adjustment expenses 15,757 — Current accident year underwriting income excluding California Wildfires (2) $ 21,189 $ 15,347 Net income excluding California Wildfires Net income (1) $ 18,878 $ 34,219 California Wildfires net losses and loss adjustment expenses (net of tax) (3) 12,338 — Net income excluding California Wildfires (2) $ 31,216 $ 34,219 Underwriting income excluding California Wildfires net losses and loss adjustment expenses Underwriting income (1) $ 5,302 $ 14,644 California Wildfires net losses and loss adjustment expenses 15,757 — Underwriting income excluding California Wildfires (2) $ 21,059 $ 14,644 Current accident year catastrophe net losses and loss adjustment expenses excluding California Wildfires Current accident year catastrophe net losses and loss adjustment expenses (4) $ 24,350 $ 10,274 California Wildfires net losses and loss adjustment expenses (15,757 ) — Current accident year catastrophe net losses and loss adjustment expenses excluding California Wildfires (2) $ 8,593 $ 10,274 Current accident year combined ratio excluding California Wildfires Combined ratio (1) 98.7 % 95.2 % Effect of prior accident year — (0.2 %) Current accident year combined ratio (2) 98.7 % 95.0 % Impact of California Wildfires (5.5 %) — Current accident year combined ratio excluding California Wildfires (2) 93.2 % 95.0 % Current accident year catastrophe loss ratio excluding California Wildfires (2) Current accident year catastrophe loss ratio (4) 20.5 % 8.4 % Impact of California Wildfires (13.3 %) — Current accident year catastrophe loss ratio excluding California Wildfires (2) 7.2 % 8.4 % (1) Most directly comparable GAAP measure / ratio. (2) Non-GAAP financial measure / ratio. (3) Represents net losses and loss adjustment expenses of $15.8 million less tax benefit of $3.5 million. (4) See previous table for reconciliation of non-GAAP financial measures or ratios to its most directly comparable GAAP measure or ratio for current accident year catastrophe net losses and loss adjustment expenses. 44 Critical Accounting Estimates and Policies The Company’s consolidated financial statements are prepared in conformity with GAAP, which require it to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions. The most critical accounting policies involve significant estimates and include those used in determining the liability for unpaid losses and loss adjustment expenses, recoverability of reinsurance receivables, investments, fair value measurements, goodwill and intangible assets, deferred acquisition costs, and taxation. For a detailed discussion on each of these policies, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes to any of these policies or underlying methodologies during the current year. Liquidity and Capital Resources Sources and Uses of Funds Global Indemnity Group, LLC is a holding company. Its principal assets are its ownership in the shares of (i) Belmont Holdings GX, Inc., an insurance holding company that owns the following insurance companies: United National Insurance Company, Diamond State Insurance Company, Penn-America Insurance Company, Penn-Star Insurance Company, and Penn-Patriot Insurance Company, and (ii) Katalyx Holdings LLC, an agency and specialized service holding company. Global Indemnity Group, LLC’s current short-term and long-term liquidity needs include but are not limited to the payment of corporate expenses, distributions to shareholders, and share repurchases. In order to meet its current short-term and long-term needs, its principal sources of cash include investment income, interest and principal payments on intercompany debt with Belmont Holdings GX, Inc., and reimbursement for equity awards granted to employees of Belmont Holdings GX, Inc. and Katalyx Holdings LLC. Katalyx Holdings LLC includes four insurance agencies, three insurance service companies, and one service company whose current short-term and long-term liquidity needs include but are not limited to the payment of corporate expenses, operating expenses, capital expenditures in developing and integrating information technology platforms and operations, and payment for equity awards granted to its employees by Global Indemnity Group, LLC. In order to meet its current short-term and long-term needs, its principal sources of cash include fees from third parties, commissions / service fees from Belmont Holdings GX, Inc., commissions from third parties, and capital contributions from Global Indemnity Group, LLC. Belmont Holdings GX, Inc.’s current short-term and long-term liquidity needs include but are not limited to the payment of corporate expenses, payment of interest and principal on intercompany debt, and payment for equity awards granted to its employees by Global Indemnity Group, LLC. In order to meet its current short-term and long-term needs, its principal sources of cash include dividends from insurance company subsidiaries and investment income. The insurance companies’ current short-term and long-term liquidity needs include but are not limited to the payment of claims, commissions, operating expenses, federal taxes, and dividends. Their principal sources of funds include cash from direct and assumed business written, investment income, and proceeds from sales and maturities of investments. The Company continuously reviews and assesses the short-term and long-term needs of each of its holding companies, service companies, and insurance companies. In addition, the Company periodically reviews opportunities related to business acquisitions and as a result, liquidity needs may arise in the future. Belmont Holdings GX, Inc. is dependent on dividends from its insurance subsidiaries which are restricted by statute as to the amount of dividends that they may pay without the prior approval of regulatory authorities. The dividend limitations imposed by state laws are based on the statutory financial results of each insurance company that are determined by using statutory accounting practices that differ in various respects from accounting principles used in financial statements prepared in conformity with GAAP. See “Regulation - Statutory Accounting Principles” in Item 1 of Part I of the Company’s 2024 Annual Report on Form 10-K. Key differences relate to, among other items, deferred acquisition costs, limitations on deferred income taxes, reserve calculation assumptions and surplus notes. See Note 21 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2024 Annual Report on Form 10-K for further information on dividend limitations related to the insurance companies. Extraordinary dividends of $100.0 million, in aggregate, were 45 declared by the Company's insurance subsidiaries for distribution to Belmont Holdings GX, Inc. in June 2025. The dividends by the Company’s insurance subsidiaries were approved by the respective departments of insurance in Pennsylvania, Indiana and Virginia in July 2025. These dividends were paid in the third quarter of 2025. Cash Flows Sources of operating cash consist primarily of net written premiums and investment income which are used to pay claims, underwriting expenses and corporate expenses. Operating cash flows are generally used for investing and financing activities. Funds may be used to pay distributions to the Company’s shareholders. Net cash provided by operating activities was $15.1 million and $52.3 million for the nine months ended September 30, 2025 and 2024, respectively, consisting of the following: Nine Months Ended September 30, (Dollars in thousands) 2025 2024 Change Net premiums collected $ 315,488 $ 304,001 $ 11,487 Net losses and loss adjustment expenses paid (211,561 ) (165,823 ) (45,738 ) Underwriting and corporate expenses (140,038 ) (116,682 ) (23,356 ) Net investment income 58,736 33,428 25,308 Net income taxes paid (7,532 ) (2,657 ) (4,875 ) Interest paid — (17 ) 17 Net cash provided by operating activities $ 15,093 $ 52,250 $ (37,157 ) • The decline in cash flows of $37.2 million in 2025 compared to the same period in 2024 is primarily driven by an increase in current accident year catastrophe property net losses and loss adjustment expenses paid and increase in prior accident year casualty net losses and loss adjustment expenses paid from the Belmont Non-Core Casualty lines of business. The reconciliation of net income to net cash provided by operating activities is generally influenced by the following: • the timing of the Company’s collection of premiums and payment of commissions; • the timing of the Company’s settlements with its reinsurers; and • the timing of the Company’s payments of net losses and loss adjustment expenses. See the consolidated statements of cash flows in the consolidated financial statements in Item 1 of Part I of this report for details concerning the Company’s investing and financing activities. Liquidity The Board of Directors approved quarterly distribution payments of $0.35 per common share to all shareholders of record on the close of business on March 21, 2025, June 20, 2025 and September 29, 2025. Distributions paid to common shareholders were $10.0 million during the nine months ended September 30, 2025. The distribution declared on September 29, 2025 for $5.0 million was paid on October 6, 2025. In addition, distributions of $0.3 million were paid to Global Indemnity Group, LLC’s preferred shareholder during the nine months ended September 30, 2025. Investment Portfolio On July 31, 2023, the Company provided the Global Debt Fund, LP with a formal withdrawal request to fully redeem the partnership interest. Partial redemption proceeds of $4.7 million and $9.2 million were received during the quarter and nine months ended September 30, 2025, respectively. The Global Debt Fund, LP had a fair market value of $9.6 million at September 30, 2025. 46 Other than the items discussed in the preceding paragraphs, there have been no material changes to the Company’s liquidity during the quarter and nine months ended September 30, 2025. Please see Item 7 of Part II in the Company’s 2024 Annual Report on Form 10-K for information regarding the Company’s liquidity. Capital Resources There have been no material changes to the Company’s capital resources during the quarter and nine months ended September 30, 2025. Please see Item 7 of Part II in the Company’s 2024 Annual Report on Form 10-K for information regarding the Company’s capital resources. Off Balance Sheet Arrangements The Company has no off balance sheet arrangements. Cautionary Note Regarding Forward-Looking Statements Some of the statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this report are forward-looking statements within the meaning of Section 21E of the Security Exchange Act of 1934, as amended. These forward-looking statements reflect the Company’s current views as of the date of this report. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “project,” “plan,” “seek,” “intend,” or “anticipate” or the negative thereof or comparable terminology, and include discussions of strategy, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives, expectations or consequences of identified transactions or natural disasters, and statements about the future, including future performance, operations, products and services of the companies. The forward-looking statements contained in this report are primarily based on the Company’s current expectations and projections about future events and trends that it believes may affect the Company’s business, financial condition, results of operations, prospects, business strategy and financial needs. The outcome of the events described in these forward-looking statements, such as the Company’s ability to execute on its strategy following its corporate reorganization, is subject to risks, uncertainties, assumptions, including, but not limited to, the impact of legislative or regulatory actions, the impact of natural or man-made disasters, the sufficiency of the Company’s reserves, the impact of emerging claims issues, adverse capital market developments impacting investment performance, ability to effectively start-up or integrate new product opportunities, such as the ability to successfully integrate and develop acquired businesses and to establish a reinsurance managing general agency, adverse effect of cyber-attacks, and other factors described in the section captioned “Risk Factors” in Item 1A of Part I in the Company’s 2024 Annual Report on Form 10-K. These risks are not exhaustive, and new risks and uncertainties emerge from time to time. It is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this report. The Company cannot provide assurance that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. Forward-looking statements are inherently uncertain and investors are cautioned not to unduly rely upon such statements. The Company’s forward-looking statements speak only as of the date of this report or as of the date they were made. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. Item 3. QUANTITATIVE AND QUALITATI VE DISCLOSURES ABOUT MARKET RISK Market risk is the risk of economic losses due to adverse changes in the estimated fair value of a financial instrument as the result of changes in interest rates, equity prices, credit risk, illiquidity, foreign exchange rates and commodity prices. The Company’s consolidated balance sheets include the estimated fair values of assets that are subject to market risk. The Company’s primary market risks are interest rate risk and credit risks associated with investments in fixed maturities, equity price risk associated with investments in equity securities, and foreign exchange risk associated with premium received that is denominated in foreign currencies. The Company has no commodity risk. 47 There have been no material changes to the Company’s market risk since December 31, 2024. The Company’s investment grade fixed income portfolio continues to maintain high quality with an AA- average rating and a duration of 1.1 years. Please see Item 7A of Part II in the Company’s 2024 Annual Report on Form 10-K for information regarding the Company’s market risk.