3 unchanged sentences
(In thousands, except share amounts)
−Removed: March 31, 2022
+Added: June 30, 2022
December 31, 2021
2 unchanged sentences
$ 1,151,195 and $ 1,193,746 ;
−Removed: net of allowance for expected credit losses of $ 0 at March 31, 2022 and December 31, 2021)
+Added: net of allowance for expected credit losses of $ 0 at June 30, 2022 and December 31, 2021)
Equity securities, at fair value
2 unchanged sentences
Cash and cash equivalents
−Removed: Premium receivables, net of allowance for expected credit losses of $ 2,937 at March 31, 2022 and $ 2,996 at December 31, 2021
−Removed: Reinsurance receivables, net of allowance for expected credit losses of $ 8,992 at March 31, 2022 and December 31, 2021
+Added: Premium receivables, net of allowance for expected credit losses of $ 2,919 at June 30, 2022 and $ 2,996 at December 31, 2021
+Added: Reinsurance receivables, net of allowance for expected credit losses of $ 8,992 at June 30, 2022 and December 31, 2021
Funds held by ceding insurers
3 unchanged sentences
Prepaid reinsurance premiums
−Removed: Receivable for securities sold
Lease right of use assets
34 unchanged sentences
(In thousands, except shares and per share data)
−Removed: Quarters Ended March 31,
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
Gross written premiums
+Added: Ceded written premiums
Net written premiums
+Added: Change in net unearned premiums
Net earned premiums
7 unchanged sentences
Interest expense
+Added: Loss on extinguishment of debt
Income (loss) before income taxes
−Removed: Income tax benefit
+Added: Income tax expense (benefit)
Net income (loss)
5 unchanged sentences
Cash distributions declared per common share
−Removed: For the quarter ended March 31, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for the period.
+Added: For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for the period.
See accompanying notes to consolidated financial statements.
2 unchanged sentences
(In thousands)
−Removed: Quarters Ended March 31,
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
Net income (loss)
Other comprehensive income (loss), net of tax:
−Removed: Unrealized holding losses
+Added: Unrealized holding gains (losses)
Reclassification adjustment for losses included in net income (loss)
Unrealized foreign currency translation gains (losses)
−Removed: Other comprehensive loss, net of tax
−Removed: Comprehensive loss, net of tax
+Added: Other comprehensive income (loss), net of tax
+Added: Comprehensive income (loss), net of tax
See accompanying notes to consolidated financial statements.
2 unchanged sentences
(In thousands, except share amounts)
−Removed: Quarters Ended March 31,
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
Number of Series A Cumulative Fixed Rate Preferred Shares
4 unchanged sentences
Common shares issued to directors
+Added: Share conversion
Number at end of period
Number of class B common shares issued:
−Removed: Number at beginning and end of period
+Added: Number at beginning of period
+Added: Share conversion
+Added: Number at end of period
Par value of Series A Cumulative Fixed Rate Preferred Shares
31 unchanged sentences
(In thousands)
−Removed: Quarters Ended March 31,
+Added: Six Months Ended June 30,
Cash flows from operating activities:
Net income (loss)
−Removed: Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
+Added: Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization and depreciation
4 unchanged sentences
Net realized investment (gains) losses
+Added: Loss on extinguishment of debt
(Income) loss from equity method investments, net of distributions
9 unchanged sentences
Prepaid reinsurance premiums
−Removed: Net cash provided by (used for) operating activities
+Added: Net cash provided by operating activities
Cash flows from investing activities:
2 unchanged sentences
Proceeds from maturity of fixed maturities
+Added: Proceeds from maturity of preferred stock
Proceeds from other invested assets
2 unchanged sentences
Purchases of equity securities
+Added: Purchases of other invested assets
Net cash provided by (used for) investing activities
3 unchanged sentences
Purchases of class A common shares
+Added: Redemption of subordinated notes
Net cash used for financing activities
9 unchanged sentences
See Note 2 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2021 Annual Report on Form 10-K for additional information regarding the redomestication.
−Removed: On October 26, 2021, the Company sold the renewal rights related to its manufactured and dwelling homes products which was part of the Specialty Property segment.
−Removed: The Company previously decided to cease writing certain Property Brokerage business which was part of the Commercial Specialty segment, as well as exit certain property and catastrophe lines within the Reinsurance Operations segment.
+Added: On August 8, 2022, the Company sold the renewal rights related to all business lines within its Farm, Ranch & Stable segment for business written on or after August 8, 2022 to Everett Cash Mutual Insurance Company.
+Added: During the 2 nd quarter of 2022, the Company decided that Farm, Ranch & Stable would not be a core business and a decision was made to not allocate additional resources to this segment.
+Added: Previously, on October 26, 2021, the Company sold the renewal rights related to its manufactured and dwelling homes products which were part of the Specialty Property segment.
+Added: In 2021, the Company decided to cease writing certain Property Brokerage business which was part of the Commercial Specialty segment, as well as exit certain property and catastrophe lines within the Reinsurance Operations segment.
Based on the decisions to exit these lines of business, the Company changed the way it manages and analyzes its operating results.
−Removed: The chief operating decision makers, the Chief Executive as well as the Chief Operating Officer, decided they will be reviewing the specific results of the exited lines separately.
+Added: The chief operating decision makers, the Chief Executive as well as the Chief Operating Officer, decided they will be reviewing the specific results of the exited lines in a separate segment.
The chief operating decision makers also determined that the small amount of specialty property business that remained from the Specialty Property segment would be included as programs in the Commercial Specialty segment for purpose of reviewing results and allocating resources.
The Reinsurance Operations segment will continue to write casualty and professional treaties as well as individual excess policies.
−Removed: The Farm, Ranch & Stable segment was not impacted by these decisions and will continue to be reported as a segment.
−Removed: Accordingly, the Company will have four reportable segments:
−Removed: Commercial Specialty, Reinsurance Operations, Farm, Ranch & Stable, and Exited Lines.
−Removed: Management believes these segments will allow users of the Company’s financial statements to better understand the Company's performance, better assess prospects for future net cash flows and to make more informed judgments about the Company as a whole.
−Removed: The segment results for the quarter ended March 31, 2021 have been revised to reflect these changes.
+Added: Accordingly, the Company has three reportable segments:
+Added: Commercial Specialty, Reinsurance Operations, and Exited Lines.
+Added: Management believes these segments allow users of the Company’s financial statements to better understand the Company's performance, better assess prospects for future net cash flows and to make more informed judgments about the Company as a whole.
+Added: The segment results for the quarters and six months ended June 30, 2021 have been revised to reflect these changes.
See Note 14 for additional information regarding segments.
4 unchanged sentences
The insurance companies’ primary activity is providing insurance products across a distribution network that includes binding authority, program, brokerage and reinsurance.
−Removed: The insurance companies are managed through four business segments:
−Removed: Commercial Specialty, Reinsurance Operations, Farm, Ranch & Stable, and Exited Lines.
−Removed: The Company’s Commercial Specialty segment offers specialty property and casualty insurance products in the excess and surplus lines marketplace.
+Added: The insurance companies are managed through three business segments:
+Added: Commercial Specialty, Reinsurance Operations, and Exited Lines.
+Added: The Company’s Commercial Specialty segment offers specialty property and casualty insurance products primarily in the excess and surplus lines marketplace as well as several specialty admitted property and casualty products.
The Company manages Commercial Specialty by differentiating them into four product classifications:
−Removed: 1) Penn-America, which markets property and general liability products to small commercial businesses through a select network of wholesale general agents with specific binding authority;
−Removed: 2) United National, which markets insurance products for targeted insured segments, including specialty products, such as property, general liability, and professional lines through program administrators with specific binding authority;
+Added: 1) Binding/Penn-America, which markets property and general liability products to small commercial businesses through a select network of wholesale general agents with specific binding authority;
+Added: 2) Programs/United National, which markets insurance products for targeted insured segments, including specialty products, such as property, general liability, and professional lines through program administrators with specific binding authority;
3) Diamond State, which markets property, casualty, and professional lines products, which are developed by the Company’s underwriting department by individuals with expertise in those lines of business, through wholesale brokers and also markets through program administrators having specific binding authority;
3 unchanged sentences
The Company’s Reinsurance Operations segment provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies.
−Removed: The Company’s Farm, Ranch & Stable segment provides specialized property and casualty coverage including Commercial Farm Auto and Excess/Umbrella Coverage for the agriculture industry as well as specialized insurance products for the equine mortality and equine major medical industry.
−Removed: These insurance products are sold through wholesalers and retail agents, with a selected number having specific binding authority.
Exited Lines represents lines of business that are no longer being written or are in runoff.
−Removed: Exited Lines includes specialty personal lines property and casualty products such as manufactured home, dwelling, motorcycle, watercraft and certain homeowners business, certain business within Property
+Added: Exited Lines includes specialty personal lines property and casualty products such as manufactured home, dwelling, motorcycle, watercraft and certain homeowners
GLOBAL INDEMNITY GROUP, LLC
−Removed: Brokerage, and property and catastrophe reinsurance treaties.
+Added: business, certain business within Property Brokerage, property and catastrophe reinsurance treaties , Farm, Ranch, & Stable business, and specialized insurance products for the equine mortality and equine major medical industry .
Collectively, the Company’s insurance subsidiaries are licensed in all 50 states, the District of Columbia, Puerto Rico, and the U.S.
Virgin Islands.
−Removed: The Commercial Specialty and Farm, Ranch & Stable segments comprise the Company’s Insurance Operations (“Insurance Operations”).
+Added: The Commercial Specialty segment comprises the Company’s Insurance Operations (“Insurance Operations”).
The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities.
2 unchanged sentences
The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods.
−Removed: Results of operations for the quarters ended March 31, 2022 and 2021 are not necessarily indicative of the results of a full year.
+Added: Results of operations for the quarters and six months ended June 30, 2022 and 2021 are not necessarily indicative of the results of a full year.
The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2021 Annual Report on Form 10-K.
1 unchanged sentence
All intercompany balances and transactions have been eliminated in consolidation.
−Removed: The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of March 31, 2022 and December 31, 2021:
+Added: The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of June 30, 2022 and December 31, 2021:
(Dollars in thousands)
Allowance for Expected Credit Losses
−Removed: As of March 31, 2022
+Added: As of June 30, 2022
Fixed maturities:
−Removed: Agency obligations
Obligations of states and political subdivisions
18 unchanged sentences
Total fixed maturities
−Removed: As of March 31, 2022 and December 31, 2021, the Company’s investments in equity securities consist of the following:
+Added: As of June 30, 2022 and December 31, 2021, the Company’s investments in equity securities consist of the following:
(Dollars in thousands)
−Removed: March 31, 2022
+Added: June 30, 2022
December 31, 2021
1 unchanged sentence
Excluding U.S.
−Removed: treasuries, limited liability companies, and limited partnerships, the Company did not hold any debt or equity investments in a single issuer in excess of 2.1 % and 2.0 % of shareholders' equity at March 31, 2022 and December 31, 2021, respectively.
−Removed: The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at March 31, 2022, by contractual maturity, are shown below.
+Added: treasuries, limited liability companies, and limited partnerships, the Company did not hold any debt or equity investments in a single issuer in excess of 2.3 % and 2.0 % of shareholders' equity at June 30, 2022 and December 31, 2021, respectively.
+Added: The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at June 30, 2022, by contractual maturity, are shown below.
Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
9 unchanged sentences
GLOBAL INDEMNITY GROUP, LLC
−Removed: The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of March 31, 2022.
+Added: The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of June 30, 2022.
The fair value amounts reported in the table are estimates that are prepared using the process described in Note 4.
3 unchanged sentences
Fixed maturities:
−Removed: Agency obligations
Obligations of states and political subdivisions
41 unchanged sentences
The Company made an accounting policy election to present the accrued interest receivable balance with other assets on the Company’s consolidated statements of financial position.
−Removed: Accrued interest receivable related to fixed maturities was $ 5.5 million and $ 5.2 million as of March 31, 2022 and December 31, 2021, respectively.
+Added: Accrued interest receivable related to fixed maturities was $ 6.2 million and $ 5.2 million as of June 30, 2022 and December 31, 2021, respectively.
The following is a description, by asset type, of the methodology and significant inputs that the Company used to measure the amount of credit loss recognized in earnings, if any:
−Removed: treasuries – As of March 31, 2022, gross unrealized losses related to U.S.
+Added: treasuries – As of June 30, 2022, gross unrealized losses related to U.S.
treasuries were $ 2.076 million.
3 unchanged sentences
treasuries during the period.
−Removed: Agency obligations – As of March 31, 2022, gross unrealized losses related to agency obligations were less than $ 0.001 million.
−Removed: To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, macroeconomic and market analysis is conducted in evaluating these securities.
−Removed: Consideration is given to the interest rate environment, duration and yield curve management of the portfolio, sector allocation and security selection.
−Removed: Based on the analysis performed, the Company did not recognize a credit loss on agency obligations during the period.
−Removed: Obligations of states and political subdivisions – As of March 31, 2022, gross unrealized losses related to obligations of states and political subdivisions were $ 0.588 million.
+Added: Obligations of states and political subdivisions – As of June 30, 2022, gross unrealized losses related to obligations of states and political subdivisions were $ 1.055 million.
To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, elements that may influence the performance of the municipal bond market are considered in evaluating these securities such as investor expectations, supply and demand patterns, and current versus historical yield and spread relationships.
2 unchanged sentences
GLOBAL INDEMNITY GROUP, LLC
−Removed: Mortgage-backed securities (“MBS”) – As of March 31, 2022, gross unrealized losses related to mortgage-backed securities were $ 1.279 million.
+Added: Mortgage-backed securities (“MBS”) – As of June 30, 2022, gross unrealized losses related to mortgage-backed securities were $ 2.776 million.
To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, mortgage-backed securities are modeled to project principal losses under downside, base, and upside scenarios for the economy and home prices.
4 unchanged sentences
Based on the analysis performed, the Company did not recognize a credit loss on mortgage-backed securities during the period.
−Removed: Asset backed securities (“ABS”) - As of March 31, 2022, gross unrealized losses related to asset backed securities were $ 3.385 million.
+Added: Asset backed securities (“ABS”) - As of June 30, 2022, gross unrealized losses related to asset backed securities were $ 5.888 million.
The weighted average credit enhancement for the Company’s asset backed portfolio is 32.2 .
7 unchanged sentences
Based on the analysis performed, the Company did not recognize a credit loss on asset backed securities during the period.
−Removed: Commercial mortgage-backed securities (“CMBS”) - As of March 31, 2022, gross unrealized losses related to the CMBS portfolio were $ 2.074 million.
+Added: Commercial mortgage-backed securities (“CMBS”) - As of June 30, 2022, gross unrealized losses related to the CMBS portfolio were $ 3.781 million.
The weighted average credit enhancement for the Company’s CMBS portfolio is 47.5 .
6 unchanged sentences
Based on the analysis performed, the Company did not recognize a credit loss on commercial mortgage-backed securities during the period.
−Removed: Corporate bonds - As of March 31, 2022, gross unrealized losses related to corporate bonds were $ 6.118 million.
+Added: Corporate bonds - As of June 30, 2022, gross unrealized losses related to corporate bonds were $ 11.904 million.
To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, analysis for this asset class includes maintaining detailed financial models that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral.
2 unchanged sentences
Based on the analysis performed, the Company did not recognize a credit loss on corporate bonds during the period.
−Removed: Foreign bonds – As of March 31, 2022, gross unrealized losses related to foreign bonds were $ 3.197 million.
+Added: Foreign bonds – As of June 30, 2022, gross unrealized losses related to foreign bonds were $ 6.534 million.
To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, detailed financial models are maintained that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral.
4 unchanged sentences
The Company has evaluated its investment portfolio and has determined that an allowance for expected credit losses on its investments is not required.
−Removed: The Company recorded the following impairments on its investment portfolio for the quarters ended March 31, 2022 and 2021 and are related to securities in an unrealized loss position where the Company had an intent to sell the securities:
−Removed: Quarters ended March 31,
+Added: The Company recorded the following impairments on its investment portfolio for the quarters and six months ended June 30, 2022 and 2021 and are related to securities in an unrealized loss position where the Company had an intent to sell the securities:
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
(Dollars in thousands)
3 unchanged sentences
The Company identified fixed maturities securities with a weighted average life of five years or greater as having an intent to sell.
−Removed: These securities had a fair market value of $ 365.3 million and a book value of $ 390.8 million at March 31, 2022 prior to impairment.
−Removed: Most of the proceeds from the sale of these securities will be reinvested into fixed income investments with maturities of two years and less.
+Added: Most of the proceeds from the sale of these securities were reinvested into fixed income investments with maturities of two years and less.
Accumulated Other Comprehensive Income (Loss), Net of Tax
−Removed: Accumulated other comprehensive income, net of tax, as of March 31, 2022 and December 31, 2021 was as follows:
+Added: Accumulated other comprehensive income, net of tax, as of June 30, 2022 and December 31, 2021 was as follows:
(Dollars in thousands)
−Removed: March 31, 2022
+Added: June 30, 2022
December 31, 2021
4 unchanged sentences
Accumulated other comprehensive income (loss), net of tax
−Removed: The following tables present the changes in accumulated other comprehensive income, net of tax, by components, for the quarters ended March 31, 2022 and 2021:
−Removed: Quarter Ended March 31, 2022
+Added: The following tables present the changes in accumulated other comprehensive income, net of tax, by components, for the quarters and six months ended June 30, 2022 and 2021:
+Added: Quarter Ended June 30, 2022
(Dollars In Thousands)
9 unchanged sentences
GLOBAL INDEMNITY GROUP, LLC
−Removed: Quarter Ended March 31, 2021
+Added: Quarter Ended June 30, 2021
(Dollars In Thousands)
6 unchanged sentences
Other comprehensive income, before tax
+Added: Income tax (expense) benefit
+Added: Ending balance, net of tax
+Added: Six Months Ended June 30, 2022
+Added: (Dollars In Thousands)
+Added: Unrealized Gains and Losses on Available for Sale Securities
+Added: Foreign Currency Items
+Added: Accumulated Other Comprehensive Income
+Added: Beginning balance, net of tax
+Added: Other comprehensive income before reclassification, before tax
+Added: Amounts reclassified from accumulated other comprehensive income, before tax
+Added: Other comprehensive income, before tax
Income tax benefit
Ending balance, net of tax
−Removed: The reclassifications out of accumulated other comprehensive income for the quarters ended March 31, 2022 and 2021 were as follows:
+Added: Six Months Ended June 30, 2021
+Added: (Dollars In Thousands)
+Added: Unrealized Gains and Losses on Available for Sale Securities
+Added: Foreign Currency Items
+Added: Accumulated Other Comprehensive Income
+Added: Beginning balance, net of tax
+Added: Other comprehensive income before reclassification, before tax
+Added: Amounts reclassified from accumulated other comprehensive income, before tax
+Added: Other comprehensive income, before tax
+Added: Income tax benefit
+Added: Ending balance, net of tax
+Added: The reclassifications out of accumulated other comprehensive income for the quarters and six months ended June 30, 2022 and 2021 were as follows:
Amounts Reclassified from
2 unchanged sentences
(Dollars in thousands)
−Removed: Quarters Ended March 31,
+Added: Quarters Ended June 30,
Details about Accumulated Other
6 unchanged sentences
Total reclassifications, net of tax
+Added: GLOBAL INDEMNITY GROUP, LLC
+Added: Amounts Reclassified from
+Added: Accumulated Other
+Added: Comprehensive Income
+Added: (Dollars in thousands)
+Added: Six Months Ended June 30,
+Added: Details about Accumulated Other
+Added: Comprehensive Income Components
+Added: Affected Line Item in the Consolidated
+Added: Statements of Operations
+Added: Unrealized gains and losses on available for sale securities
+Added: Other net realized investment (gains) losses
+Added: Income tax expense (benefit)
+Added: Total reclassifications, net of tax
Net Realized Investment Gains (Losses)
−Removed: The components of net realized investment gains (losses) for the quarters ended March 31, 2022 and 2021 were as follows:
−Removed: Quarters Ended March 31,
+Added: The components of net realized investment gains (losses) for the quarters and six months ended June 30, 2022 and 2021 were as follows:
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
(Dollars in thousands)
11 unchanged sentences
Total net realized investment gains (losses)
−Removed: Includes periodic net interest settlements related to the derivatives of $ 1.4 million for the quarters ended March 31, 2022 and 2021, respectively.
−Removed: GLOBAL INDEMNITY GROUP, LLC
−Removed: The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of March 31, 2022 and 2021:
−Removed: Quarters Ended March 31,
+Added: Includes periodic net interest settlements related to the derivatives of $ 1.1 million and $ 1.4 million for the quarters ended June 30, 2022 and 2021, respectively, and $ 2.5 million and $ 2.8 million for the six months ended June 30, 2022 and 2021, respectively.
+Added: The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of June 30, 2022 and 2021:
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
(Dollars in thousands)
2 unchanged sentences
Unrealized gains (losses) recognized during the reporting period on equity securities
−Removed: The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the quarters ended March 31, 2022 and 2021 were as follows:
−Removed: Quarters Ended March 31,
+Added: The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the six months ended June 30, 2022 and 2021 were as follows:
+Added: Six Months Ended June 30,
(Dollars in thousands)
1 unchanged sentence
Equity securities
+Added: GLOBAL INDEMNITY GROUP, LLC
Net Investment Income
−Removed: The sources of net investment income for the quarters ended March 31, 2022 and 2021 were as follows:
−Removed: Quarters Ended March 31,
+Added: The sources of net investment income for the quarters and six months ended June 30, 2022 and 2021 were as follows:
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
(Dollars in thousands)
6 unchanged sentences
Net investment income
−Removed: The Company’s total investment return on a pre-tax basis for the quarters ended March 31, 2022 and 2021 were as follows:
−Removed: Quarters Ended March 31,
+Added: The Company’s total investment return on a pre-tax basis for the quarters and six months ended June 30, 2022 and 2021 were as follows:
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
(Dollars in thousands)
8 unchanged sentences
Average of total cash and invested assets, net of receivable/payable for securities purchased and sold, as of the beginning and end of the period.
−Removed: As of March 31, 2022, the Company owned fixed maturity securities with a market value of $ 0.2 million that were non-income producing for the preceding twelve months.
−Removed: As of December 31, 2021, the Company did no t own any fixed maturity securities that were non-income producing for the preceding twelve months.
−Removed: GLOBAL INDEMNITY GROUP, LLC
+Added: As of June 30, 2022 and December 31, 2021, the Company did no t own any fixed maturity securities that were non-income producing for the preceding twelve months.
Insurance Enhanced Asset-Backed and Credit Securities
−Removed: As of March 31, 2022, the Company held insurance enhanced bonds with a market value of approximately $ 22.6 million which represented 1.5 % of the Company’s total cash and invested assets, net of payable/ receivable for securities purchased and sold.
−Removed: The insurance enhanced bonds are comprised of $ 10.0 million of municipal bonds, $ 4.8 million of commercial mortgage-backed securities, and $ 7.8 million of collateralized mortgage obligations.
−Removed: The financial guarantors of the Company’s $ 22.6 million of insurance enhanced commercial-mortgage-backed, municipal securities, and collateralized mortgage obligations include Municipal Bond Insurance Association ($ 0.3 million), Assured Guaranty Corporation ($ 7.9 million), Federal Home Loan Mortgage Corporation ($ 12.6 million), and Ambac Financial Group ($ 1.8 million).
−Removed: The Company had no direct investments in the entities that have provided financial guarantees or other credit support to any security held by the Company at March 31, 2022.
+Added: As of June 30, 2022, the Company held insurance enhanced bonds with a market value of approximately $ 20.6 million which represented 1.6 % of the Company’s total cash and invested assets, net of payable/ receivable for securities purchased and sold.
+Added: The insurance enhanced bonds are comprised of $ 8.0 of municipal bonds, $ 4.8 of commercial mortgage-backed securities, and 7.8 of collateralized mortgage obligations.
+Added: The financial guarantors of the Company’s $ 20.6 million of insurance enhanced commercial-mortgage-backed, municipal securities, and collateralized mortgage obligations include Assured Guaranty Corporation ($ 6.5 ), Federal Home Loan Mortgage Corporation ($ 12.6 ), and Ambac Financial Group ($ 1.5 ).
+Added: The Company had no direct investments in the entities that have provided financial guarantees or other credit support to any security held by the Company at June 30, 2022.
+Added: GLOBAL INDEMNITY GROUP, LLC
Bonds Held on Deposit
Certain cash balances, cash equivalents, and bonds available for sale were deposited with various governmental authorities in accordance with statutory requirements, were held as collateral, or were held in trust.
−Removed: The fair values were as follows as of March 31, 2022 and December 31, 2021:
+Added: The fair values were as follows as of June 30, 2022 and December 31, 2021:
Estimated Fair Value
(Dollars in thousands)
−Removed: March 31, 2022
+Added: June 30, 2022
December 31, 2021
8 unchanged sentences
These investments are accounted for under the equity method of accounting as their ownership interest exceeds 3 % of their respective investments.
−Removed: The carrying value of one of the Company’s VIE’s, which invests in distressed securities and assets, was $ 6.4 million and $ 8.6 million as of March 31, 2022 and December 31, 2021, respectively.
−Removed: The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $ 20.7 million and $ 22.8 million at March 31, 2022 and December 31, 2021, respectively.
−Removed: The carrying value of a second VIE that also invests in distressed securities and assets was $ 0.3 million at March 31, 2022 and December 31, 2021, respectively.
−Removed: The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $ 17.3 million at March 31, 2022 and December 31, 2021, respectively.
−Removed: The carrying value and maximum exposure to loss of a third VIE that invests in Real Estate Investment Trust (“REIT”) qualifying assets was $ 9.7 million and $ 11.7 million as of March 31, 2022 and December 31, 2021, respectively.
−Removed: The carrying value and maximum exposure to loss of a fourth VIE, which invests in a broad portfolio of non-investment grade loans, was $ 105.4 million and $ 106.2 million as of March 31, 2022 and December 31, 2021, respectively.
+Added: The carrying value of one of the Company’s VIE’s, which invests in distressed securities and assets, was $ 5.0 million and $ 8.6 million as of June 30, 2022 and December 31, 2021, respectively.
+Added: The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $ 19.2 million and $ 22.8 million at June 30, 2022 and December 31, 2021, respectively.
+Added: The carrying value of a second VIE that also invests in distressed securities and assets was $ 0.3 million at June 30, 2022 and December 31, 2021, respectively.
+Added: The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $ 17.3 million at June 30, 2022 and December 31, 2021, respectively.
+Added: The carrying value and maximum exposure to loss of a third VIE that invests in Real Estate Investment Trust (“REIT”) qualifying assets was $ 9.6 million and $ 11.7 million as of June 30, 2022 and December 31, 2021, respectively.
+Added: The carrying value and maximum exposure to loss of a fourth VIE, which invests in a broad portfolio of non-investment grade loans, was $ 99.6 million and $ 106.2 million as of June 30, 2022 and December 31, 2021, respectively.
The Company’s investment in VIEs is included in other invested assets on the consolidated balance sheets with changes in carrying value recorded in the consolidated statements of operations.
−Removed: GLOBAL INDEMNITY GROUP, LLC
Derivative Instruments
6 unchanged sentences
To aid in determining the estimated fair value of the interest rate swaps, the Company relies on the forward interest rate curve and information obtained from a third party financial institution.
−Removed: The following table summarizes information on the location and the gross amount of the derivatives on the consolidated balance sheets as of March 31, 2022 and December 31, 2021:
+Added: GLOBAL INDEMNITY GROUP, LLC
+Added: The following table summarizes information on the location and the gross amount of the derivatives on the consolidated balance sheets as of June 30, 2022 and December 31, 2021:
(Dollars in thousands)
−Removed: March 31, 2022
+Added: June 30, 2022
December 31, 2021
7 unchanged sentences
The derivatives are held by GBLI Holdings, LLC and are guaranteed by Global Indemnity Group, LLC
−Removed: The following table summarizes the net gains (losses) included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters ended March 31, 2022 and 2021:
−Removed: Quarters Ended March 31,
+Added: The following table summarizes the net gains (losses) included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters and six months ended June 30, 2022 and 2021:
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
(Dollars in thousands)
4 unchanged sentences
Net realized investment gains (losses)
−Removed: As of March 31, 2022 and December 31, 2021, the Company is due $ 2.4 million and $ 1.8 million, respectively, for funds it needed to post to execute the swap transaction and $ 5.1 million and $ 9.8 million, respectively, for margin calls made in connection with the interest rate swaps.
+Added: As of June 30, 2022 and December 31, 2021, the Company is due $ 2.0 million and $ 1.8 million, respectively, for funds it needed to post to execute the swap transaction and $ 2.4 million and $ 9.8 million, respectively, for margin calls made in connection with the interest rate swaps.
These amounts are included in other assets on the consolidated balance sheets.
3 unchanged sentences
The Company has determined that its fair value measurements are in accordance with the requirements of these accounting standards.
−Removed: GLOBAL INDEMNITY GROUP, LLC
The Company’s invested assets and derivative instruments are carried at their fair value and are categorized based upon a fair value hierarchy:
5 unchanged sentences
The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset.
−Removed: The following table presents information about the Company’s invested assets and derivative instruments measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.
+Added: GLOBAL INDEMNITY GROUP, LLC
+Added: The following table presents information about the Company’s invested assets and derivative instruments measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.
Fair Value Measurements
−Removed: As of March 31, 2022
+Added: As of June 30, 2022
(Dollars in thousands)
Fixed maturities:
−Removed: Agency obligations
Obligations of states and political subdivisions
6 unchanged sentences
Equity securities
−Removed: Total assets measured at fair value
Derivative instruments
−Removed: Total liabilities measured at fair value
−Removed: GLOBAL INDEMNITY GROUP, LLC
+Added: Total assets measured at fair value
Fair Value Measurements
21 unchanged sentences
Such estimates are derived based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral.
−Removed: The estimated fair value of the derivative instruments, consisting of interest rate swaps, is obtained from a third party financial institution that utilizes observable inputs such as the forward interest rate curve.
−Removed: The investments classified as Level 3 in the above table consist of fixed maturities and equity securities with unobservable inputs.
+Added: The estimated fair value of
GLOBAL INDEMNITY GROUP, LLC
−Removed: The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters ended March 31, 2022 and 2021:
−Removed: Quarters Ended March 31,
+Added: the derivative instruments, consisting of interest rate swaps, is obtained from a third party financial institution that utilizes observable inputs such as the forward interest rate curve.
+Added: The investments classified as Level 3 in the above table consist of fixed maturities and equity securities with unobservable inputs.
+Added: The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters and six months ended June 30, 2022 and 2021:
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
(Dollars in thousands)
8 unchanged sentences
Gains (losses) included in earnings attributable to the change in unrealized gains (losses) related to assets still held at end of reporting period
−Removed: For the Company’s material debt arrangements, the current fair value of the Company’s debt at March 31, 2022 and December 31, 2021 was as follows:
−Removed: March 31, 2022
+Added: For the Company’s material debt arrangements, the current fair value of the Company’s debt at June 30, 2022 and December 31, 2021 was as follows:
+Added: June 30, 2022
December 31, 2021
3 unchanged sentences
7.875% Subordinated Notes due 2047 (1)
−Removed: As of March 31, 2022 and December 31, 2021, the carrying value and fair value of the 7.875 % Subordinated Notes due 2047 are net of unamortized debt issuance cost of$ 3.5 million and $ 3.6 million, respectively.
−Removed: The subordinated notes due 2047 are publicly traded instruments and are classified as Level 1 in the fair value hierarchy.
+Added: As of December 31, 2021, the carrying value and fair value of the 7.875 % Subordinated Notes due 2047 are net of unamortized debt issuance cost of $ 3.6 million.
+Added: In April 2022, the Company redeemed all of its outstanding 7.875 % subordinated notes due 2047 and unamortized debt issuance cost of $ 3.5 million was written off included in the consolidated statements of operations as loss on extinguishment of debt.
+Added: The subordinated notes due 2047 were publicly traded instruments which were classified as Level 1 in the fair value hierarchy.
Fair Value of Alternative Investments
Other invested assets consist of limited liability companies and limited partnerships whose carrying value approximates fair value.
−Removed: The following table provides the fair value and future funding commitments related to these investments at March 31, 2022 and December 31, 2021.
−Removed: March 31, 2022
+Added: The following table provides the fair value and future funding commitments related to these investments at June 30, 2022 and December 31, 2021.
+Added: June 30, 2022
December 31, 2021
27 unchanged sentences
Information for the Credit Fund, LLC is received on a timely basis and is included in current results.
−Removed: The investment income (loss) associated with the limited liability companies and limited partnerships whose ownership interest exceeds 3 % is reflected in the consolidated statements of operations in the amounts of $( 0.1 ) million and $ 3.0 million for the quarters ended March 31, 2022 and 2021, respectively.
+Added: The investment income (loss) associated with the limited liability companies and limited partnerships whose ownership interest exceeds 3 % is reflected in the consolidated statements of operations in the amounts of ($ 5.3 ) million and $ 3.8 million for the quarters ended June 30, 2022 and 2021, respectively, and ($ 5.4 ) million and $ 6.8 million for the six months ended June 30, 2022 and 2021, respectively.
The Company’s pricing vendors provide prices for all investment categories except for investments in limited liability companies and limited partnerships.
21 unchanged sentences
On a quarterly basis, the Company corroborates investment security prices received from its pricing vendors by obtaining pricing from a second pricing vendor for a sample of securities.
−Removed: During the quarters ended March 31, 2022 and 2021, the Company has not adjusted quotes or prices obtained from the pricing vendors.
+Added: During the quarters and six months ended June 30, 2022 and 2021, the Company has not adjusted quotes or prices obtained from the pricing vendors.
Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables
For premium receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, direct placement with collection agencies, solvency of insured or agent, terminated agents, and other relevant factors.
−Removed: The following table is an analysis of the allowance for expected credit losses related to the Company's premium receivables for the quarters ended March 31, 2022 and 2021:
−Removed: Quarters Ended March 31,
+Added: The following table is an analysis of the allowance for expected credit losses related to the Company's premium receivables for the quarters and six months ended June 30, 2022 and 2021:
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
(Dollars in thousands)
3 unchanged sentences
For reinsurance receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, disputes, applicable coverage defenses, insolvent reinsurers, financial strength of solvent reinsurers based on AM Best Ratings and other relevant factors.
−Removed: The following table is an analysis of the allowance for expected credit losses related to the Company's reinsurance receivables for the quarters ended March 31, 2022 and 2021:
−Removed: Quarters Ended March 31,
+Added: The following table is an analysis of the allowance for expected credit losses related to the Company's reinsurance receivables for the quarters and six months ended June 30, 2022 and 2021:
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
(Dollars in thousands)
3 unchanged sentences
Ending balance
+Added: GLOBAL INDEMNITY GROUP, LLC
Global Indemnity Group, LLC is a publicly traded partnership for U.S.
2 unchanged sentences
However, income earned by the subsidiaries of Global Indemnity Group, LLC is subject to corporate tax in the United States and certain foreign jurisdictions.
−Removed: GLOBAL INDEMNITY GROUP, LLC
−Removed: As of March 31, 2022, the statutory income tax rates of the countries where the Company conducts or conducted business are 21 % in the United States, 0 % in Bermuda, and 25 % on non-trading income, 33 % on capital gains and 12.5 % on trading income in the Republic of Ireland.
+Added: As of June 30, 2022, the statutory income tax rates of the countries where the Company conducts or conducted business are 21 % in the United States, 0 % in Bermuda, and 25 % on non-trading income, 33 % on capital gains and 12.5 % on trading income in the Republic of Ireland.
The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense.
The Company’s income (loss) before income taxes is derived from its U.S.
−Removed: subsidiaries for the quarters ended March 31, 2022 and 2021.
−Removed: The following table summarizes the components of income tax benefit:
−Removed: Quarters Ended March 31,
+Added: subsidiaries for the quarters and six months ended June 30, 2022 and 2021.
+Added: The following table summarizes the components of income tax expense (benefit):
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
(Dollars in thousands)
−Removed: Deferred income tax benefit:
−Removed: Total deferred income tax benefit
+Added: Deferred income tax expense (benefit):
+Added: Total deferred income tax expense (benefit)
Total income tax expense (benefit)
1 unchanged sentence
The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate:
−Removed: Quarters Ended March 31,
+Added: Quarters Ended June 30,
(Dollars in thousands)
1 unchanged sentence
Dividend exclusion
−Removed: Parent income treated as partnership for tax
−Removed: Effective income tax benefit
−Removed: The effective income tax benefit rate for the quarter ended March 31, 2022 was 18.8 % compared to an effective income tax benefit rate of 3.8 % for the quarter ended March 31, 2021.
−Removed: The difference between 2022 and 2021 is due to a decline in net income at Global Indemnity Group, LLC which is treated as a partnership for tax.
−Removed: The Company has a net operating loss (“NOL”) carryforward of $ 21.8 million as of March 31, 2022, which begins to expire in 2036 based on when the original NOL was generated.
−Removed: The Company’s NOL carryforward as of December 31, 2021 was $ 28.6 million.
+Added: Parent (income) loss treated as partnership for tax
+Added: Effective income tax expense (benefit)
+Added: The effective income tax benefit rate for the quarter ended June 30, 2022 was 4.9 % compared to an effective income tax expense rate of 11.7 % for the quarter ended June 30, 2021.
+Added: The difference between 2022 and 2021 is primarily due to a change in income or loss at the parent company which is treated as a partnership for tax.
+Added: Six Months Ended June 30,
+Added: (Dollars in thousands)
+Added: Expected tax provision at weighted average tax rate
+Added: Dividend exclusion
+Added: Parent (income) loss treated as partnership for tax
+Added: Effective income tax expense (benefit)
GLOBAL INDEMNITY GROUP, LLC
+Added: The effective income tax benefit rate for the six months ended June 30, 2022 was 13.0 % compared to an effective income tax expense rate of 5.1 % for the six months ended June 30, 2021.
+Added: The difference between 2022 and 2021 is primarily due to a change in income or loss at the parent company which is treated as a partnership for tax.
+Added: The Company has a net operating loss (“NOL”) carryforward of $ 28.0 million as of June 30, 2022, which begins to expire in 2036 based on when the original NOL was generated.
+Added: The Company’s NOL carryforward as of December 31, 2021 was $ 28.6 million.
+Added: As of June 30, 2022, the Company has a Section 163(j) (“163(j)”) carryforward of $ 3.5 million which can be carried forward indefinitely.
+Added: The 163(j) carryforward relates to the limitation on the deduction for business interest expense paid or accrued.
Liability for Unpaid Losses and Loss Adjustment Expenses
Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:
−Removed: Quarters Ended March 31,
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
(Dollars in thousands)
10 unchanged sentences
When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates.
−Removed: During the first quarter of 2022, the Company decreased its prior accident year loss reserves by $ 3.1 million, which consisted of a $ 0.3 million increase related to Commercial Specialty, a $ 0.4 million decrease related to Farm, Ranch & Stable, and a $ 3.0 million decrease related to Exited Lines.
+Added: During the second quarter of 2022, the Company decreased its prior accident year loss reserves by $ 3.6 million, which consisted of a $ 0.3 million increase related to Commercial Specialty, a $ 1.2 million decrease related to Reinsurance Operations, and a $ 2.6 million decrease related to Exited Lines.
The $ 0.3 million increase of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:
−Removed: A $ 0.2 million increase primarily recognizes higher than expected claims severity in the 2015 through 2017 and 2020 accident years, partially offset by a decrease in the 2018 and 2021 accident years.
+Added: A $ 0.9 million decrease primarily recognizes lower than expected claims severity in the 2016, 2020 and 2021 accident years, partially offset by increases in the 2015 and 2017 through 2019 accident years.
General Liability:
−Removed: A $ 0.1 million increase primarily in accident years prior to 2005 and the 2010, 2018 and 2020 accident years mainly reflects higher than expected claims severity, mostly offset by decreases in the 2006, 2007, 2011 and 2013 accident years.
+Added: A $ 1.3 million increase reflects higher than expected claims severity in accident years prior to 2005, 2016, 2017, 2019 and 2020 accident years, partially offset by decreases in the 2010 through 2015, 2018 and 2021 accident years.
Professional:
−Removed: A $ 0.1 million decrease mainly in the 2019 and 2020 accident years.
−Removed: The $ 0.4 million reduction of prior accident year loss reserves related to Farm, Ranch & Stable primarily consisted of the following:
−Removed: A $ 0.2 million reduction primarily reflects lower than expected claims severity in the 2018 and 2019 accident years, partially offset by an increase in the 2021 accident year.
−Removed: A $ 0.2 million decrease in the 2019 accident year reflecting a lower than expected claims severity.
+Added: A $ 0.1 million decrease primarily in the 2020 accident year.
+Added: The $ 1.2 million reduction of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:
+Added: GLOBAL INDEMNITY GROUP, LLC
+Added: Professional:
+Added: A $ 1.2 million decrease was recognized in the 2016 accident year reflecting a reduction in the ultimate for the claims-made segment;
+Added: the inception-to-date case incurred remains zero in this year.
The $ 2.6 million reduction of prior accident year loss reserves related to Exited Lines consisted of the following:
−Removed: A $ 0.5 million decrease primarily reflects reductions in the specialty property lines, mainly in the 2016, 2018 and 2021 accident years, partially offset by an increase in the 2019 accident year.
+Added: A $ 0.5 million decrease reflects a $ 0.3 million reduction primarily in the Property Brokerage lines with decreases in the 2011 and 2018 through 2021 accident years, partially offset by increases in the 2016 and 2017 accident years as well as a $ 0.2 million reduction primarily due to lower than expected claims severity in the 2019 and 2020 accident years, partially offset by an increase in the 2021 accident year in the Farm, Ranch & Stable business lines.
+Added: A $ 2.1 million decrease primarily in the 2017 through the 2021 accident years based on the reported information from cedants.
+Added: During the second quarter of 2021, the Company increased its prior accident year loss reserves by $ 5.5 million, which consisted of a $ 0.5 million decrease related to Commercial Specialty, a less than $ 0.1 million decrease related to Reinsurance Operations, and a $ 6.1 million increase related to Exited Lines.
+Added: The $ 0.5 million decrease of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:
+Added: A $ 0.5 million increase primarily in commercial lines.
General Liability:
−Removed: A $ 0.3 million reduction was from the specialty property lines, primarily in the 2017, 2020, and 2021 accident years partially offset by increases in the 2019 accident year.
+Added: A $ 0.7 million decrease reflects a reduction of $ 0.9 million in the 2000 accident year from a runoff reserve category as well as other decreases mainly resulting from lower than anticipated claims severity in the 2007, 2008, 2013, 2014 and 2019 accident years partially offset by increases in the 2012, 2016 through 2018 and 2020 accident years.
+Added: Professional:
+Added: A $ 0.3 million decrease primarily in the 2019 and 2020 accident years mainly reflecting lower than anticipated claims severity.
+Added: The $ 6.1 million increase in prior accident year loss reserves related to Exited Lines primarily consisted of the following:
+Added: A $ 6.5 million increase primarily in the 2018 accident year reflects an increase in the estimated ultimate for Hurricane Michael;
+Added: the increase recognizes case incurred emergence on a Property Brokerage claim.
+Added: General Liability:
+Added: A $ 0.1 million reduction primarily reflects a reduction in the 2017 accident year, mostly offset by an increase in the 2018 accident year.
+Added: A $ 0.3 million decrease in the property lines mainly in the 2017 through 2020 accident years based on the reported information from cedants.
+Added: During the first six months of 2022, the Company decreased its prior accident year loss reserves by $ 6.6 million, which consisted of a $ 0.5 million increase related to Commercial Specialty, a $ 1.2 million decrease related to Reinsurance Operations, and a $ 6.0 million decrease related to Exited Lines.
+Added: The $ 0.5 million increase of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:
+Added: A $ 0.7 million decrease primarily recognizes lower than expected claims severity in the 2016, 2018 and 2021 accident years, partially offset by increases in the 2015, 2017, 2019 and 2020 accident years.
+Added: General Liability:
+Added: A $ 1.5 million increase reflects higher than expected claims severity in accident years prior to 2005, 2010, 2016, 2017, 2019 and 2020 accident years, partially offset by decreases in the 2006, 2007, 2011 through 2015, 2018 and 2021 accident years.
GLOBAL INDEMNITY GROUP, LLC
−Removed: A $ 2.2 million decrease was primarily from one treaty and in the 2017 through 2021 accident years based on the reported information from the cedant.
−Removed: During the first quarter of 2021, the Company reduced its prior accident year loss reserves by $ 3.4 million, which consisted of a $ 2.6 million decrease related to Commercial Specialty, a $ 0.7 million decrease related to Farm, Ranch & Stable, and a $ 0.1 million decrease related to Exited Lines.
−Removed: The $ 2.6 million decrease of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:
−Removed: A $ 2.4 million decrease primarily in the 2017 and 2019 through 2020 accident years mainly recognizing better than expected claims severity.
Professional:
+Added: A $ 0.2 million decrease primarily in the 2006, 2019 and 2020 accident years, partially offset by an increase in the 2021 accident year.
+Added: The $ 1.2 million reduction of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:
+Added: Professional:
+Added: A $ 1.2 million decrease was recognized in the 2016 accident year reflecting a reduction in the ultimate for the claims-made segment;
+Added: the inception-to-date case incurred remains zero in this year.
+Added: The $ 6.0 million reduction of prior accident year loss reserves related to Exited Lines primarily consisted of the following:
+Added: A $ 1.1 million decrease primarily resulted from a $ 0.4 million reduction in Property Brokerage with decreases in the 2011 and 2018 through 2021 accident years, partially offset by increases in the 2016 and 2017 accident years plus a $ 0.4 million decrease in Specialty Property, mainly in the 2017, 2018, 2020 and 2021 accident years, partially offset by an increase in the 2019 accident year.
+Added: In addition, there was a $ 0.3 million reduction which primarily reflects lower than expected claims severity in the 2018 through 2020 accident years, partially offset by an increase in the 2021 accident year in the Farm, Ranch & Stable business lines.
+Added: A $ 4.3 million decrease primarily in the 2016 through the 2021 accident years based on reported information from the cedants.
+Added: General Liability:
+Added: A $ 0.6 million reduction in the 2016, 2017, 2019 and 2021 accident years.
+Added: During the first six months of 2021, the Company increased its prior accident year loss reserves by $ 2.1 million, which consisted of a $ 3.1 million decrease related to Commercial Specialty, a less than $ 0.1 million decrease related to Reinsurance Operations, and a $ 5.3 million increase related to Exited Lines.
+Added: The $ 3.1 million decrease in prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:
+Added: A $ 1.9 million decrease recognizes lower than expected claims severity in the 2017, 2019, and 2020 accident years, partially offset by an increase in the 2016 accident year.
+Added: General Liability:
+Added: A $ 0.8 million reduction reflects a decrease of $ 0.9 million in the 2000 accident year from a runoff reserve category as well as other decreases mainly resulting from lower than anticipated claims severity in the 2007, 2008, 2011 and 2013 through 2016 accident years partially offset by increases in the 2012, 2017 and 2018 accident years.
+Added: Professional:
A $ 0.4 million decrease primarily in the 2019 and 2020 accident years mainly reflecting lower than anticipated claims severity.
−Removed: The $ 0.7 million reduction of prior accident year loss reserves related to Farm, Ranch & Stable primarily consisted of the following:
−Removed: A $ 0.7 million decrease in total reflects subrogation recoveries of $ 1.1 million in the catastrophe reserve category from the California Thomas wildfire loss in the 2017 accident year and a decrease of $ 0.5 million in the 2019 accident year primarily recognizing a lower than expected claims severity.
−Removed: These decreases were partially offset by increases in the 2018 and 2020 accident years mainly due to higher than anticipated claims severity .
−Removed: The $ 0.1 million decrease of prior accident year loss reserves related to Exited Lines primarily consisted of the following:
+Added: The $ 5.3 million increase in prior accident year loss reserves related to Exited Lines primarily consisted of the following:
General Liability:
−Removed: A $ 1.2 million reduction mostly in the 2018 accident year primarily reflects lower than anticipated claims severity.
−Removed: A $ 1.8 million increase reflects an increase of $ 2.4 million for Hurricane Michael, partially offset by reductions in specialty property mainly in the 2016 through 2019 accident years.
−Removed: A $ 0.6 million decrease was primarily based on a review of the experience reported from cedants.
−Removed: There was a $ 0.6 million decrease in the property lines mainly in the 2011 and 2017 through 2018 accident years, partially offset by an increase in the 2010 and 2019 accident years.
−Removed: In total, the property catastrophe segments decreased $ 2.6 million and the other property segments increased $ 2.0 million .
+Added: A $ 1.2 million reduction primarily reflects decreases in the 2015 through 2018 accident years partially offset by an increase in the 2007 accident year.
+Added: A $ 7.4 million increase reflects a $ 8.2 million increase in the 2018 accident year primarily due to an increase in the estimated ultimate for Hurricane Michael which recognizes case incurred emergence on a Property Brokerage claim and a $ 0.8 million increases in the 2018 and 2020 accident years mainly due to higher than anticipated claims severity.
+Added: These increases were partially offset by a subrogation recoveries of $ 1.1 million in the catastrophe reserve category from the California Thomas wildfire loss in the 2017 accident year and a decrease of $ 0.5 million in the 2019 accident year primarily recognizing lower than expected claims severity.
+Added: A $ 0.9 million decrease in the property lines was recognized primarily in the 2011, 2017 and 2018 accident years partially offset by increases in the 2010 and 2019 accidents years based on the reported information from cedants.
+Added: GLOBAL INDEMNITY GROUP, LLC
+Added: The Company’s outstanding debt consisted of the following at June 30, 2022 and December 31, 2021:
+Added: (Dollars in thousands)
+Added: June 30, 2022
+Added: December 31, 2021
+Added: 7.875 % Subordinated Notes due 2047
+Added: Margin Borrowing Facility
+Added: The Company has available a margin borrowing facility.
+Added: The borrowing rate for this facility is tied to the Fed Funds Effective rate and was approximately 2.3 % and 0.8 % at June 30, 2022 and December 31, 2021, respectively.
+Added: This facility is due on demand.
+Added: The borrowings are subject to maintenance margin, which is a minimum account balance that must be maintained.
+Added: A decline in market conditions could require an additional deposit of collateral.
+Added: The Company did no t have any securities that were deposited as collateral at June 30, 2022 or December 31, 2021.
+Added: The amount borrowed against the margin account may fluctuate as routine investment transactions, such as dividends received, investment income received, maturities and pay-downs, impact cash balances.
+Added: The margin facility contains customary events of default, including, without limitation, insolvency, failure to make required payments, failure to comply with any representations or warranties, failure to adequately assure future performance, and failure of a guarantor to perform under its guarantee.
+Added: The Company did no t have any amounts outstanding on the margin borrowing facility as of June 30, 2022 or December 31, 2021.
+Added: The Company did no t incur any interest expense related to the Margin Borrowing Facility for the quarters and six months ended June 30, 2022 and 2021.
+Added: 7.875% Subordinated Notes due 2047 (the “2047 Notes”)
+Added: On April 15, 2022, the Company redeemed the entire $ 130.0 million in aggregate principal amount of the outstanding 2047 Notes plus accrued and unpaid interest on the 2047 Notes redeemed to, but not including the Redemption Date of April 15, 2022 .
+Added: In connection with the redemption, the Company wrote off deferred issuance costs of $ 3.5 million which was recognized as a loss on extinguishment of debt in its consolidated statements of operations for the quarter and six months ended June 30, 2022.
+Added: Interest expense, including amortization of deferred issuance costs through the date of redemption, recognized on the 2047 Notes was $ 0.4 million and $ 2.6 million for each of the quarters ended June 30, 2022 and 2021, respectively, and $ 3.0 million and $ 5.2 million for the six months ended June 30, 2022 and 2021, respectively.
+Added: In connection with the redemption of the 2047 Notes, the Supplemental Indenture and the co-obligor transaction are no longer effective.
+Added: Please see Note 13 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2021 Annual Report on Form 10-K for more information on the Supplemental Indenture and the co-obligor transaction.
+Added: GLOBAL INDEMNITY GROUP, LLC
Shareholders’ Equity
−Removed: The following table provides information with respect to the class A common shares that were surrendered or repurchased during the quarter ended March 31, 2022:
+Added: During the quarters ended June 30, 2022 and 2021, there were 11,173 and 7,100 A ordinary shares, respectively, that were surrendered or repurchased with an average price paid per share of $ 26.28 and $ 27.64 , respectively.
+Added: The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2022:
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program
1 unchanged sentence
January 1-31, 2022
+Added: June 1-30, 2022
Based on settlement date.
Surrendered by employees as payment of taxes withheld on the vesting of restricted stock and/or restricted stock units.
−Removed: GLOBAL INDEMNITY GROUP, LLC
−Removed: The following table provides information with respect to the class A common shares that were surrendered or repurchased during the quarter ended March 31, 2021:
+Added: The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2021:
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program
2 unchanged sentences
March 1-31, 2021
+Added: June 1-30, 2021
Based on settlement date.
Surrendered by employees as payment of taxes withheld on the vesting of restricted stock and/or restricted stock units.
−Removed: There were no class B common shares that were surrendered or repurchased during the quarters ended March 31, 2022 or 2021.
−Removed: As of March 31, 2022, Global Indemnity Group, LLC’s class A common shares were held by approximately 165 shareholders of record.
−Removed: There were three holders of record of Global Indemnity Group, LLC’s class B common shares, all of whom are affiliated investment funds of Fox Paine & Company, LLC, as of March 31, 2022.
−Removed: Global Indemnity Group, LLC’s preferred shares were held by 1 holder of record, an affiliate of Fox Paine & Company, LLC, as of March 31, 2022.
+Added: On April 5, 2021, Global Indemnity Group, LLC converted 186,160 of class B common shares to class A common shares.
+Added: There were no other class B common shares that were surrendered or repurchased during the quarters and six months ended June 30, 2022 or 2021.
+Added: As of June 30, 2022, Global Indemnity Group, LLC’s class A common shares were held by approximately 155 shareholders of record.
+Added: There were three holders of record of Global Indemnity Group, LLC’s class B common shares, all of whom are affiliated investment funds of Fox Paine & Company, LLC, as of June 30, 2022.
+Added: Global Indemnity Group, LLC’s preferred shares were held by 1 holder of record, an affiliate of Fox Paine & Company, LLC, as of June 30, 2022.
Please see Note 15 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2021 Annual Report on Form 10-K for more information on the Company’s repurchase program.
+Added: GLOBAL INDEMNITY GROUP, LLC
Distributions
−Removed: Distribution payments of $ 0.25 per common share were declared during the quarter ended March 31, 2022 as follows:
+Added: Distribution payments of $ 0.25 per common share were declared during the six months ended June 30, 2022 as follows:
Approval Date
4 unchanged sentences
March 31, 2022
+Added: June 20, 2022
+Added: June 30, 2022
Represents distributions declared on unvested shares, net of forfeitures.
−Removed: Distribution payments of $ 0.25 per common share were declared during the quarter ended March 31, 2021 as follows:
+Added: Distribution payments of $ 0.25 per common share were declared during the six months ended June 30, 2021 as follows:
Approval Date
4 unchanged sentences
March 31, 2021
+Added: June 21, 2021
+Added: June 30, 2021
Represents distributions declared on unvested shares, net of forfeitures.
−Removed: Accrued distributions on unvested shares, which were included in other liabilities on the consolidated balance sheets were $ 0.9 million as of both March 31, 2022 and December 31, 2021.
−Removed: Accrued preferred distributions were less than $ 0.1 million as of both March 31, 2022 and December 31, 2021 and were included in other liabilities on the consolidated balance sheets.
+Added: Accrued distributions on unvested shares, which were included in other liabilities on the consolidated balance sheets, were $ 1.0 million and $ 0.9 million as of June 30, 2022 and December 31, 2021, respectively.
+Added: Accrued preferred distributions were less than $ 0.1 million as of both June 30, 2022 and December 31, 2021 and were included in other liabilities on the consolidated balance sheets.
Please see Note 15 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2021 Annual Report on Form 10-K for more information on the Company’s distribution program.
−Removed: GLOBAL INDEMNITY GROUP, LLC
Related Party Transactions
3 unchanged sentences
and certain of its affiliates (the “FM Entities”), and Fox Paine & Company LLC (collectively, the “Fox Paine Entities”) currently constitute a Class B Majority Shareholder (as defined in the LLCA) and, as such, have the right to appoint a number of Global Indemnity Group, LLC’s directors equal in aggregate to the pro rata percentage of the voting power in Global Indemnity Group, LLC beneficially held by the Fox Paine Entities, rounded up to the nearest whole number of directors.
−Removed: The Fox Paine Entities beneficially own shares representing approximately 82.9 % of the voting power of Global Indemnity Group, LLC as of March 31, 2022.
+Added: The Fox Paine Entities beneficially own shares representing approximately 82.8 % of the voting power of Global Indemnity Group, LLC as of June 30, 2022.
The Fox Paine Entities control the appointment or election of all of Global Indemnity Group, LLC’s Directors due to the LLCA and their controlling share ownership.
3 unchanged sentences
Global Indemnity Group, LLC’s Board of Directors is obligated to take, and cause Global Indemnity Group, LLC’s officers to take, any necessary actions to effectuate such appointments, including expanding the size of the Board of Directors, in connection with any exercise of the foregoing provisions.
−Removed: Management fee expense of $ 0.7 million was incurred during each of the quarters ended March 31, 2022 and 2021.
−Removed: Prepaid management fees, which were included in other assets on the consolidated balance sheets, were $ 1.2 million and $ 1.9 million as of March 31, 2022 and December 31, 2021, respectively.
+Added: GLOBAL INDEMNITY GROUP, LLC
+Added: Management fee expense of $ 0.7 million was incurred during each of the quarters ended June 30, 2022 and 2021 and management fee expense of $ 1.4 million and $ 1.3 million was incurred during the six months ended June 30, 2022 and 2021, respectively.
+Added: Prepaid management fees, which were included in other assets on the consolidated balance sheets, were $ 0.5 million and $ 1.9 million as of June 30, 2022 and December 31, 2021, respectively.
In addition, Fox Paine & Company, LLC may also propose and negotiate transaction fees with the Company subject to the provisions of the Company’s related party transaction and conflict matter policies, including approval of Global Indemnity Group, LLC’s Conflicts Committee of the Board of Directors, for those services from time to time.
−Removed: Each of the Company’s transactions with Fox Paine & Company, LLC are reviewed and approved by either Global Indemnity Group, LLC’s Conflicts Committee, which is composed of independent directors, and the Board of Directors (other than Saul A.
+Added: Each of the Company’s transactions with Fox Paine & Company, LLC are reviewed and approved by Global Indemnity Group, LLC’s Conflicts Committee, which is composed of independent directors, and the Board of Directors (other than Saul A.
Fox, Chairman of the Board of Directors of Global Indemnity Group, LLC and Chief Executive of Fox Paine & Company, LLC, who is not a member of the Conflicts Committee and recused himself from the Board of Directors’ deliberations related to fees paid to Fox Paine & Company, LLC or its affiliates).
8 unchanged sentences
The Company anticipates that, similar to the rest of the insurance and reinsurance industry, it will continue to be subject to litigation and arbitration proceedings in the ordinary course of business.
−Removed: GLOBAL INDEMNITY GROUP, LLC
In 2014, the Company entered into a $ 50 million commitment to purchase an alternative investment vehicle which is comprised of European non-performing loans.
−Removed: As of March 31, 2022, the Company has funded $ 35.8 million of this commitment leaving $ 14.2 million as unfunded.
+Added: As of June 30, 2022, the Company has funded $ 35.8 million of this commitment leaving $ 14.2 million as unfunded.
Since the investment period has concluded, the Company expects minimal capital calls will be made prospectively.
In 2017, the Company entered into a $ 50 million commitment to purchase an alternative investment vehicle comprised of stressed and distressed securities and structured products.
−Removed: As of March 31, 2022, the Company has funded $ 33.0 million of this commitment leaving $ 17.0 million as unfunded.
+Added: As of June 30, 2022, the Company has funded $ 33.0 million of this commitment leaving $ 17.0 million as unfunded.
Since the investment period has concluded, the Company expects minimal capital calls will be made prospectively.
In 2021, the Company entered into a $ 25 million commitment to purchase an alternative investment vehicle comprised of performing, stressed or distressed securities and loans across the global fixed income markets.
−Removed: As of March 31, 2022, the Company has fully funded this commitment.
+Added: As of June 30, 2022, the Company has fully funded this commitment.
Other Commitments
1 unchanged sentence
See Note 10 above for additional information pertaining to this management agreement.
−Removed: There is risk that legislation could be passed or there could be a court ruling which would require the Company to cover business interruption claims regardless of terms, exclusions including the virus exclusions contained within the Company’s Commercial Specialty and Farm, Ranch & Stable policies, or other conditions included in policies that would otherwise preclude coverage.
+Added: GLOBAL INDEMNITY GROUP, LLC
+Added: There is risk that legislation could be passed or there could be a court ruling which would require the Company to cover business interruption claims regardless of terms, exclusions including the virus exclusions contained within the Company’s Commercial Specialty and Exited Lines policies, or other conditions included in policies that would otherwise preclude coverage.
Share-Based Compensation Plans
2 unchanged sentences
Of these options, 46,667 options, which were due to vest on April 1, 2022, were recorded as forfeitures in the year ended December 31, 2021 as a result of not meeting performance requirements related to 2021.
−Removed: No stock options were awarded during the quarter ended March 31, 2022.
−Removed: 300,000 unvested stock options were forfeited during the quarter ended March 31, 2021.
−Removed: No unvested stock options were forfeited during the quarter ended March 31, 2022.
+Added: No stock options were awarded during the quarter and six months ended June 30, 2022 or the quarter ended June 30, 2021.
+Added: No unvested stock options were forfeited during the quarter and six months ended June 30, 2022 or the quarter ended June 30, 2021.
+Added: 300,000 unvested stock options were forfeited during the six months ended June 30, 2021.
Restricted Shares / Restricted Stock Units
−Removed: There were no restricted class A common shares or restricted stock units granted to key employees during the quarters ended March 31, 2022 and 2021.
−Removed: There were 26,080 and 20,437 restricted stock units that vested during the quarters ended March 31, 2022 and 2021, respectively.
+Added: There were no restricted class A common shares or restricted stock units granted to key employees during the quarters and six months ended June 30, 2022 and 2021.
+Added: There were 35,442 and 22,540 restricted stock units that vested during the quarters ended June 30, 2022 and 2021, respectively, and 61,522 and 42,977 restricted stock units that vested during the six months ended June 30, 2022 and 2021, respectively.
Upon vesting, the restricted stock units converted to restricted class A common shares.
−Removed: GLOBAL INDEMNITY GROUP, LLC
−Removed: During the quarters ended March 31, 2022 and 2021, the Company granted 24,810 and 20,006 class A common shares, respectively, at a weighted average grant date value of $ 25.64 and $ 28.32 per share, respectively, to non-employee directors of the Company under the Plan.
−Removed: Of the shares granted during the quarters ended March 31, 2022 and 2021, the vesting of 7,313 and 4,903 shares, respectively, is deferred until January 1, 2024 or a change of control, whichever is earlier.
+Added: During the quarters ended June 30, 2022 and 2021, the Company granted 25,760 and 19,738 class A common shares, respectively, at a weighted average grant date value of $ 25.96 and $ 28.71 per share, respectively, to non-employee directors of the Company under the Plan.
+Added: Of the shares granted during the quarters ended June 30, 2022 and 2021, the vesting of 8,827 and 4,838 shares, respectively, is deferred until January 1, 2024 or a change of control, whichever is earlier.
The remaining shares granted to non-employee directors of the Company in 2022 and 2021 were fully vested but are subject to certain restrictions.
+Added: During the six months ended June 30, 2022 and 2021, the Company granted 50,570 and 39,744 class A common shares, respectively, at a weighted average grant date value of $ 25.80 and $ 28.51 per share, respectively, to non-employee directors of the Company under the Plan.
+Added: Of the shares granted during the six months ended June 30, 2022 and 2021, the vesting of 16,140 shares and 9,741 shares, respectively, is deferred until January 1, 2024 or a change of control, whichever is earlier.
+Added: The remaining shares granted to non-employee directors of the Company in 2022 and 2021 were fully vested but are subject to certain restrictions.
Earnings Per Share
Earnings per share have been computed using the weighted average number of common shares and common share equivalents outstanding during the period.
+Added: GLOBAL INDEMNITY GROUP, LLC
The following table sets forth the computation of basic and diluted earnings per share:
−Removed: Quarters Ended March 31,
+Added: Quarters Ended June 30,
+Added: Six Months Ended June 30,
(Dollars in thousands, except share and per share data)
8 unchanged sentences
Earnings per share - Diluted
−Removed: For the quarter ended March 31, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss for the period.
−Removed: If the Company had not incurred a loss in the quarter ended March 31, 2022, 14,701,350 weighted average shares would have been used to compute the diluted loss per share calculation.
+Added: For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period.
+Added: If the Company had not incurred a loss in the quarter ended June 30, 2022, 14,749,370 weighted average shares would have been used to compute the diluted loss per share calculation.
In addition to the basic shares, weighted average shares for the diluted calculation would have included 110,417 shares of non-vested restricted stock units and 95,719 share equivalents for options.
−Removed: The weighted average shares outstanding used to determine dilutive earnings per share does not include 393,333 shares and 540,000 shares for the quarters ended March 31, 2022 and 2021, respectively, which were deemed to be anti-dilutive.
+Added: If the Company had not incurred a loss in the six months ended June 30, 2022, 14,728,182 weighted average shares would have been used to compute the diluted loss per share calculation.
+Added: In addition to the basic shares, weighted average shares for the diluted calculation would have included 103,670 shares of non-vested restricted stock units and 95,342 share equivalents for options.
+Added: The weighted average shares outstanding used to determine dilutive earnings per share does not include 393,333 shares for both the quarter and six months ended June 30, 2022 and 540,000 shares for both the quarter and six months ended June 30, 2021, which were deemed to be anti-dilutive.
Segment Information
−Removed: On October 26, 2021, the Company sold the renewal rights related to its manufactured and dwelling homes products which was part of the Specialty Property segment.
−Removed: The Company previously decided to cease writing certain Property Brokerage business which was part of the Commercial Specialty segment, as well as exit certain property and catastrophe lines within the Reinsurance Operations segment.
+Added: On August 8, 2022, the Company sold the renewal rights related to all business lines within its Farm, Ranch & Stable segment for business written on or after August 8, 2022 to Everett Cash Mutual Insurance Company.
+Added: During the 2 nd quarter of 2022, the Company decided that Farm, Ranch & Stable would not be a core business and a decision was made to not allocate additional resources to this segment.
+Added: Previously, on October 26, 2021, the Company sold the renewal rights related to its manufactured and dwelling homes products which were part of the Specialty Property segment.
+Added: In 2021, the Company decided to cease writing certain Property Brokerage business which was part of the Commercial Specialty segment, as well as exit certain property and catastrophe lines within the Reinsurance Operations segment.
Based on the decisions to exit these lines of business, the Company changed the way it manages and analyzes its operating results.
−Removed: The chief operating decision makers, the Chief Executive as well as the Chief Operating Officer, decided they will be reviewing the specific results of the Exited Lines separately.
+Added: The chief operating decision makers, the Chief Executive as well as the Chief Operating Officer, decided they will be reviewing the specific results of the Exited Lines in a separate segment.
The chief operating decision makers also determined that the small amount of specialty property business that remained from the Specialty Property segment would be included as programs in the Commercial Specialty segment for purpose of reviewing results and allocating resources.
The Reinsurance Operations segment will continue to write casualty and professional treaties as well as individual excess policies.
−Removed: The Farm, Ranch & Stable segment was not impacted by these decisions and will continue to be reported as a segment.
−Removed: Accordingly, the Company has four reportable segments:
−Removed: Commercial Specialty, Reinsurance
+Added: Accordingly, the Company has three reportable segments:
+Added: Commercial Specialty, Reinsurance Operations, and Exited Lines.
+Added: Management believes these segments allow users of the Company’s financial statements to better understand the Company's performance, better assess prospects for future net cash flows and to make more informed judgments about the Company as a whole.
+Added: The segment results for the quarter and six months ended June 30, 2021 have been revised to reflect these changes.
GLOBAL INDEMNITY GROUP, LLC
−Removed: Operations, Farm, Ranch & Stable, and Exited Lines.
−Removed: Management believes these segments will allow users of the Company’s financial statements to better understand the Company's performance, better assess prospects for future net cash flows and to make more informed judgments about the Company as a whole.
−Removed: The segment results for the quarter ended March 31, 2021 have been revised to reflect these changes.
−Removed: The Company manages its business through four business segments.
+Added: The Company manages its business through three business segments.
Commercial Specialty offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs.
Reinsurance Operations provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies.
−Removed: Farm, Ranch & Stable offers specialized property and casualty coverage including Commercial Farm Auto and Excess/Umbrella Coverage for the agriculture industry as well as specialized insurance products for the equine mortality and equine major medical industry.
Exited Lines represents lines of business that are no longer being written or are in runoff.
−Removed: The following are tabulations of business segment information for the quarters ended March 31, 2022 and 2021:
−Removed: Quarter Ended March 31, 2022
+Added: The following are tabulations of business segment information for the quarters and six months ended June 30, 2022 and 2021:
+Added: Quarter Ended June 30, 2022
(Dollars in thousands)
−Removed: Farm, Ranch & Stable
Gross written premiums
9 unchanged sentences
Net investment income
−Removed: Net realized investment loss
+Added: Net realized investment losses
Corporate and other operating expenses
Interest expense
+Added: Loss on extinguishment of debt
Loss before income taxes
4 unchanged sentences
GLOBAL INDEMNITY GROUP, LLC
−Removed: Quarter Ended March 31, 2021
+Added: Quarter Ended June 30, 2021
(Dollars in thousands)
−Removed: Farm, Ranch & Stable
Gross written premiums
1 unchanged sentence
Net earned premiums
−Removed: Other income (loss)
Total revenues
9 unchanged sentences
Income before income taxes
+Added: Income tax expense
+Added: Segment assets
+Added: Corporate assets
+Added: External business only, excluding business assumed from affiliates.
+Added: GLOBAL INDEMNITY GROUP, LLC
+Added: Six Months Ended June 30, 2022
+Added: (Dollars in thousands)
+Added: Gross written premiums
+Added: Net written premiums
+Added: Net earned premiums
+Added: Other income (loss)
+Added: Total revenues
+Added: Losses and Expenses:
+Added: Net losses and loss adjustment expenses
+Added: Acquisition costs and other underwriting expenses
+Added: Income (loss) from segments
+Added: Unallocated Items:
+Added: Net investment income
+Added: Net realized investment losses
+Added: Corporate and other operating expenses
+Added: Interest expense
+Added: Loss on extinguishment of debt
+Added: Loss before income taxes
Income tax benefit
2 unchanged sentences
External business only, excluding business assumed from affiliates.
+Added: GLOBAL INDEMNITY GROUP, LLC
+Added: Six Months Ended June 30, 2021
+Added: (Dollars in thousands)
+Added: Gross written premiums
+Added: Net written premiums
+Added: Net earned premiums
+Added: Other income (loss)
+Added: Total revenues
+Added: Losses and Expenses:
+Added: Net losses and loss adjustment expenses
+Added: Acquisition costs and other underwriting expenses
+Added: Income (loss) from segments
+Added: Unallocated Items:
+Added: Net investment income
+Added: Net realized investment gains
+Added: Corporate and other operating expenses
+Added: Interest expense
+Added: Income before income taxes
+Added: Income tax expense
+Added: Segment assets
+Added: Corporate assets
+Added: External business only, excluding business assumed from affiliates.
New Accounting Pronouncements
−Removed: The Company did not adopt any new accounting pronouncements during the quarter ended March 31, 2022.
+Added: The Company did not adopt any new accounting pronouncements during the six months ended June 30, 2022.
Please see Note 24 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2021 Annual Report on Form 10-K for more information on accounting pronouncements issued but not yet adopted.
Subsequent Events
−Removed: Redemption of 7.875% Subordinated Notes due 2047 (“2047 Notes”)
−Removed: On April 15, 2022, the Company redeemed the entire $ 130 million in aggregate principal amount of the outstanding 2047 Notes plus accrued and unpaid interest on the 2047 Notes redeemed to, but not including, the Redemption Date of April 15, 2022 .
−Removed: Board of Directors
−Removed: Effective April 13, 2022, James D.
−Removed: Wehr is no longer a Designated Director of the Company’s Board of Directors and his service to the Company’s Board of Directors ended on the same date.
+Added: On August 8, 2022 , the Company sold the renewal rights related to all business lines within its Farm, Ranch & Stable segment for business written on or after August 8, 2022 to Everett Cash Mutual Insurance Company.
+Added: The Company will retain the unearned premium reserves for business written prior to August 8, 2022.
+Added: Everett Cash Mutual Insurance Company is also acquiring the Company’s wholly owned subsidiary, American Reliable Insurance Company, for book value which is expected to be $ 10.0 million at the time of closing.
+Added: The transaction is subject to receiving regulatory approval which is expected to be received during the 4 th quarter of 2022.
+Added: Under the agreements, total consideration to be paid by Everett Cash Mutual Insurance Company is $ 40 million.
GLOBAL INDEMNITY GROUP, LLC
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.