Global Indemnity (GBLI) AI Stock Analysis

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Global Indemnity

(NYSE:GBLI)

60Neutral

Global Indemnity's stock receives a score of 60, reflecting a mixed financial performance with improved profitability but declining revenue and cash flow challenges. Technical indicators point to bearish conditions, while valuation metrics are reasonable with a strong dividend yield. The earnings call underscores growth potential but raises concerns over wildfire losses and expenses.

Global Indemnity (GBLI) vs. S&P 500 (SPY)

Market Cap

$426.53M

Dividend Yield4.68%

Average Volume (3M)5.15K

Price to Earnings (P/E)15.0

Beta (1Y)-0.02

Revenue Growth-10.61%

EPS Growth-19.48%

CountryUS

Employees266

SectorFinancial

Sector Strength85

IndustryInsurance - Property & Casualty

Share Statistics

EPS (TTM)-0.30

Shares Outstanding10,481,076

10 Day Avg. Volume5,652

30 Day Avg. Volume5,149

Financial Highlights & Ratios

PEG Ratio1.19

Price to Book (P/B)0.56

Price to Sales (P/S)0.00

P/FCF Ratio10.47

Enterprise Value/Market Cap0.94

Enterprise Value/Revenue0.22

Enterprise Value/Gross Profit0.93

Enterprise Value/Ebitda2.56

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Global Indemnity Business Overview & Revenue Model

Company DescriptionGlobal Indemnity Group, LLC, through its subsidiaries, provides specialty property and casualty insurance and reinsurance products worldwide. It operates through Commercial Specialty; Farm, Ranch, & Stable; and Reinsurance Operations segments. The Commercial Specialty segment distributes property, general liability, casualty, and professional lines products. This segment sells its products through a network of wholesale general agents and program administrators. The Farm, Ranch, & Stable segment offers 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 on an admitted basis through wholesalers and retail agents. The Reinsurance Operations segment provides offer third-party treaty reinsurance for casualty insurance and reinsurance companies, as well as professional liability products to companies through brokers. Global Indemnity Group, LLC was founded in 2003 and is headquartered in Bala Cynwyd, Pennsylvania.

How the Company Makes MoneyGlobal Indemnity Group, Inc. generates revenue primarily through the underwriting of insurance policies and the collection of premiums. The company offers a wide array of insurance products across its various sectors, including commercial specialty insurance for businesses, specialty property insurance for personal and commercial properties, and reinsurance services. Revenue is earned from the premiums paid by policyholders in exchange for coverage against potential risks. Additionally, Global Indemnity invests the premiums collected into a diversified portfolio, generating investment income which also contributes to the company's overall earnings. Key factors influencing the company's revenue include underwriting performance, claims management, and the effective management of investment portfolios.

Global Indemnity Financial Statement Overview

Summary

Global Indemnity exhibits a mixed financial performance. While profitability has improved with a higher net profit margin and return on equity, revenue has declined over recent years. The balance sheet is strengthened by the absence of debt, but the downward trend in free cash flow could challenge future expansion.

Income Statement

Neutral

Global Indemnity's income statement shows a decline in total revenue from $628.5M in 2022 to $441.2M in 2024, indicating a negative growth trend. The net profit margin improved from -0.14% in 2022 to 9.80% in 2024, reflecting better profitability. However, the absence of EBIT and EBITDA data in 2024 limits the analysis of operating efficiency.

Balance Sheet

Positive

The balance sheet reveals a strong equity position with a debt-to-equity ratio of 0.00 in 2024, indicating no debt burden. The equity ratio increased to 39.81% in 2024, suggesting a stable financial structure. Return on equity improved significantly to 6.28% in 2024, showing enhanced profitability for shareholders.

Cash Flow

Positive

The cash flow statement highlights positive operating cash flow of $38.8M in 2024, but free cash flow decreased from $42.9M in 2023 to $38.8M in 2024, showing a decline in cash available for growth. The operating cash flow to net income ratio of 0.90 indicates moderate cash generation relative to profits.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
441.19M	528.13M	628.53M	678.27M	583.55M
	Gross Profit
441.19M	504.75M	604.11M	651.09M	541.55M
	EBIT
54.96M	35.47M	-3.42M	3.05M	-44.96M
	EBITDA
54.96M	39.17M	13.37M	53.70M	-6.29M
	Net Income Common Stockholders
43.24M	25.43M	-850.00K	29.35M	-21.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.01M	38.04M	1.29B	1.28B	1.26B
	Total Assets
1.73B	1.73B	1.80B	2.01B	1.90B
	Total Debt
10.37M	12.73M	15.70M	145.51M	126.29M
	Net Debt
-6.64M	-25.30M	-23.14M	67.23M	58.93M
	Total Liabilities
1.04B	1.08B	1.17B	145.51M	126.29M
	Stockholders Equity
689.15M	648.75M	626.23M	706.62M	718.32M
Cash Flow		Free Cash Flow
38.84M	42.89M	44.24M	90.80M	6.95M
	Operating Cash Flow
38.84M	42.89M	44.24M	90.80M	32.67M
	Investing Cash Flow
-39.51M	-16.33M	80.13M	-64.52M	174.59M
	Financing Cash Flow
-20.36M	-27.36M	-163.80M	-15.36M	-184.17M

Global Indemnity Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price30.00

Price Trends

50DMA

31.88

Negative

100DMA

33.48

Negative

200DMA

33.07

Negative

Market Momentum

MACD

-0.71

Negative

RSI

51.90

Neutral

STOCH

70.16

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GBLI, the sentiment is Neutral. The current price of 30 is above the 20-day moving average (MA) of 28.90, below the 50-day MA of 31.88, and below the 200-day MA of 33.07, indicating a neutral trend. The MACD of -0.71 indicates Negative momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 70.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GBLI.

Global Indemnity Risk Analysis

Global Indemnity disclosed 42 risk factors in its most recent earnings report. Global Indemnity reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Global Indemnity Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRTG	76 Outperform	$804.90M	9.31	27.59%	―	11.41%	53.85%
UVE	75 Outperform	$724.16M	11.26	16.95%	2.49%	7.24%	-9.28%
DGICA	74 Outperform	$700.17M	9.67	13.11%	3.50%	5.29%	1200.44%
Sector *	64 Neutral	$12.75B	9.93	7.86%	17015.07%	12.19%	-5.92%
GBLI	60 Neutral	$426.53M	14.96	4.14%	4.68%	-10.61%	-19.48%
ACIC	56 Neutral	$540.11M	7.27	31.11%	―	12.19%	5.12%
NODK	46 Neutral	$264.94M	53.48	2.40%	―	-6.46%	―

* Financial Sector Average

Performance Comparison

GBLI

Global Indemnity

30.00

-0.29

-0.96%

DGICA

Donegal Group

20.44

7.57

58.82%

UVE

Universal Insurance Holdings

26.50

6.68

33.70%

ACIC

American Coastal Insurance

11.00

-1.13

-9.32%

HRTG

Heritage Insurance Holdings

23.96

14.75

160.15%

NODK

NI Holdings

12.92

-3.26

-20.15%

Global Indemnity Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: 3.45%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Neutral

The earnings call revealed a mixed performance with strong growth in core business and InsurTech segments, but was overshadowed by significant losses from California wildfires, resulting in a net loss and decreased book value per share. While the company maintains a positive outlook on future premium growth, elevated expenses remain a concern.

Q1-2025 Updates

Positive Updates

Core Business Growth

Underlying core growth, excluding terminated products, was 16% in the first quarter, showing strong performance in the core business areas.

Investment Income Increase

Investment income increased by 2% to $14.8 million from a year ago, with cash flows and bond maturities reinvested at an average yield of 4.86%.

InsurTech Segment Growth

The InsurTech segment grew 20% to $15 million in 2025 compared to $12.5 million in 2024, driven by Vacant Express and Collectibles.

Positive Outlook for Premium Growth

Despite challenges, the company expects premium growth of at least 10% for 2025, with improvements in underwriting performance anticipated.

Negative Updates

Significant Loss from California Wildfires

The company reported a $15.6 million pre-tax loss from California wildfires, which significantly impacted financial results.

Net Loss for the Quarter

A net loss of $4 million was reported for the first quarter, primarily due to the California wildfires.

Decrease in Book Value Per Share

Book value per share decreased from $49.98 at year-end to $47.85 at March 31, partly due to stock compensation issuance.

Elevated Expense Ratios

The expense ratio was higher than targeted due to Project Manifest and agency build-out costs, with a first quarter ratio of 40%.

Company Guidance

During the Global Indemnity Group's first quarter 2025 earnings call, several key metrics were highlighted. The company reported a net loss of $4 million, primarily due to $15.6 million in pre-tax losses from the California wildfires, which equated to a $12.2 million after-tax impact. Excluding these wildfire losses, net income would have been $8.2 million, down from $11.4 million in the same period last year. The combined ratio, excluding wildfire impacts, was 94.8%, slightly better than the previous year's 94.9%. The company's book value per share decreased from $49.98 at year-end to $47.85 by March 31, driven by comprehensive losses, dividends, and stock compensation. Investment income rose by 2% to $14.8 million, with a current book yield of 4.5% on the fixed income portfolio. Gross written premiums grew by 6% to $98.7 million, with a 16% increase when excluding terminated products. The company aims for a long-term expense ratio of 37%, although it currently stands at 40% due to strategic investments in Project Manifest and staff expansion. Despite the setbacks, the outlook for 2025 remains positive, with expectations for at least 10% premium growth and improved underwriting performance for the remainder of the year.

Global Indemnity Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Global Indemnity Restructures Board and Completes Project Manifest

Positive

Jan 22, 2025

On January 16, 2025, Global Indemnity underwent a significant restructuring with the resignation and appointment of several board members, in line with its Third Amended and Restated Limited Liability Company Agreement. These changes include the appointment of designated directors and the amendment of the company’s agreement to better define the roles and shares within the company. Additionally, Global Indemnity announced the completion of ‘Project Manifest’, a reorganization aimed at enhancing operational efficiency and growth by creating distinct business divisions within Penn-America, establishing separate technology and claims services companies, and improving capital management. This reorganization positions the company to better serve its stakeholders and expand its influence within the insurance industry.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.