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Global Indemnity Plc (GBLI)
NYSE:GBLI
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Global Indemnity
(NYSE:GBLI)
Rating:65Neutral
Price Target:
$34.00
▲(8.70%Upside)
Global Indemnity (GBLI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$446.44M
Dividend Yield4.48%
Average Volume (3M)5.46K
Price to Earnings (P/E)15.7
Beta (1Y)0.07
Revenue Growth-10.61%
EPS Growth-19.48%
CountryUS
Employees266
SectorFinancial
Sector Strength82
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)-0.30
Shares Outstanding10,481,076
10 Day Avg. Volume2,124
30 Day Avg. Volume5,462
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 Cap0.90
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, Inc. (GBLI) is a specialty property and casualty insurance provider. The company operates through its subsidiaries, offering a diverse range of insurance products and services primarily in the United States. Its sectors include commercial specialty, specialty property, and reinsurance, catering to various industries and individual clients. Global Indemnity focuses on providing tailored insurance solutions that meet the specific needs of its customers.
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 Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 7.86%|
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 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
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.60
Neutral
Balance Sheet
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.75
Positive
Cash Flow
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.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Positive
31.28
Price Trends
30.32
Positive
32.70
Negative
33.10
Negative
Market Momentum
0.30
Negative
60.04
Neutral
50.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GBLI, the sentiment is Positive. The current price of 31.28 is above the 20-day moving average (MA) of 30.37, above the 50-day MA of 30.32, and below the 200-day MA of 33.10, indicating a neutral trend. The MACD of 0.30 indicates Negative momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 50.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 2 New Risks
1.
Artificial intelligence is an evolving and rapidly growing technology. Q4, 2024
2.
Adverse economic factors, including recession, inflation, periods of high unemployment or lower economic activity could result in the sale of fewer policies than expected or an increase in the frequency of claims and premium defaults, or a combination of these effects, which, in turn, could affect the Company's growth and profitability. Q4, 2024
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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $772.85M | 12.02 | 16.95% | 2.33% | 7.24% | -9.28% | |
76 Outperform | $776.07M | 9.89 | 27.59% | ― | 11.41% | 53.85% | |
74 Outperform | $691.43M | 9.53 | 13.11% | 3.59% | 5.29% | 1200.44% | |
65 Neutral | $446.44M | 15.66 | 4.14% | 4.48% | -10.61% | -19.48% | |
64 Neutral | $12.87B | 9.81 | 7.76% | 16985.65% | 12.28% | -7.83% | |
61 Neutral | $528.02M | 7.21 | 31.11% | ― | 12.19% | 5.12% | |
46 Neutral | $269.08M | 53.81 | 2.40% | ― | -6.46% | ― |
* Financial Sector Average
Performance Comparison
GBLI
Global Indemnity
31.28
1.29
4.30%
DGICA
Donegal Group
19.48
6.90
54.85%
UVE
Universal Insurance Holdings
27.46
9.11
49.65%
ACIC
American Coastal Insurance
10.92
0.34
3.21%
HRTG
Heritage Insurance Holdings
25.04
16.89
207.24%
NODK
NI Holdings
13.00
-2.15
-14.19%
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.