UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2026
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from to
001-34809
Commission File Number
GLOBAL INDEMNITY GROUP, LLC
(Exact name of registrant as specified in its charter)
85-2619578
(State or other jurisdiction
of incorporation or organization)
(I.R.S. Employer Identification No.)
112 S. French Street, Suite 105
Wilmington, DE 19801
(Address of principal executive office including zip code)
Registrant's telephone number, including area code: (302) 691-6276
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that registrant was required to submit such files.). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:
Large accelerated filer
☐;
Accelerated filer
☒;
Non-accelerated filer
Smaller reporting company
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Class A Common Shares
GBLI
Nasdaq Global Select Market
As of May 5, 2026, the registrant had outstanding 10,815,515 class A common shares (including 780,000 class A common shares designated as class A-2 common shares) and 3,793,612 class B common shares.
TABLE OF CONTENTS
Page
PART I – FINANCIAL INFORMATION
Item 1.
Financial Statements:
3
Consolidated Balance Sheets As of March 31, 2026 (Unaudited) and December 31, 2025
Consolidated Statements of Operations Quarters Ended March 31, 2026 (Unaudited) and March 31, 2025 (Unaudited)
4
Consolidated Statements of Comprehensive Income (Loss) Quarters Ended March 31, 2026 (Unaudited) and March 31, 2025 (Unaudited)
5
Consolidated Statements of Changes in Shareholders’ Equity Quarters Ended March 31, 2026 (Unaudited) and March 31, 2025 (Unaudited)
6
Consolidated Statements of Cash Flows Quarters Ended March 31, 2026 (Unaudited) and March 31, 2025 (Unaudited)
7
Notes to Consolidated Financial Statements (Unaudited)
8
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
27
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
40
Item 4.
Controls and Procedures
41
Legal Proceedings
42
Item 1A.
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
Item 5.
Other Information
Item 6.
Exhibits
43
Signature
44
Item 1. Financial Statements
Consolidated Balance Sheets
(In thousands, except share amounts)
(Unaudited)March 31, 2026
December 31, 2025
ASSETS
Fixed maturities:
Available for sale, at fair value (amortized cost: $1,331,715 and $1,330,310; net of allowance for expected credit losses of $0 at March 31, 2026 and December 31, 2025)
$
1,323,562
1,325,502
Equity securities, at fair value
26,409
33,673
Other invested assets
10,183
17,097
Total investments
1,360,154
1,376,272
Cash and cash equivalents
34,830
65,542
Premium receivables, net of allowance for expected credit losses of $3,687 at March 31, 2026 and $3,640 at December 31, 2025
71,411
66,969
Reinsurance receivables, net of allowance for expected credit losses of $1,488 at March 31, 2026 and December 31, 2025
64,416
62,595
Funds held by ceding insurers
21,979
22,114
Deferred income taxes
21,818
20,076
Deferred acquisition costs
40,226
41,183
Intangible assets
16,729
16,845
Goodwill
4,820
Prepaid reinsurance premiums
4,196
3,607
Income tax receivable
—
2,617
Lease right of use assets
7,806
8,166
Other assets
31,731
29,956
Total assets
1,680,116
1,720,762
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses
747,143
750,191
Unearned premiums
177,530
182,728
Reinsurance balances payable
3,098
1,860
Payable for securities
4,467
21,594
Contingent commissions
2,828
7,159
Income tax payable
196
Lease liabilities
7,902
8,331
Other liabilities
32,842
42,309
Total liabilities
976,006
1,014,172
Commitments and contingencies (Note 9)
Shareholders’ equity:
Series A cumulative fixed rate preferred shares, $1,000 par value; 100,000,000 shares authorized, shares issued and outstanding: 4,000 and 4,000 shares, respectively, liquidation preference: $1,000 per share and $1,000 per share, respectively
4,000
Common shares: no par value; 900,000,000 common shares authorized; class A common shares issued: 12,103,283 and 11,844,995, respectively, (inclusive of class A common shares designated as class A-2 common shares of 780,000 and 550,000, respectively); class A common shares outstanding: 10,815,515 and 10,557,227, respectively (inclusive of class A common shares designated as class A-2 common shares of 780,000 and 550,000, respectively); class B common shares issued and outstanding: 3,793,612 and 3,793,612, respectively
Additional paid-in capital
466,723
465,720
Accumulated other comprehensive income (loss), net of tax
(6,596
)
(4,000
Retained earnings
272,675
273,562
Class A common shares in treasury, at cost: 1,287,768 and 1,287,768 shares, respectively
(32,692
Total shareholders’ equity
704,110
706,590
Total liabilities and shareholders’ equity
See accompanying notes to the consolidated financial statements.
Consolidated Statements of Operations
(In thousands, except shares and per share data)
(Unaudited)Quarters Ended March 31,
2026
2025
Revenues:
Gross written premiums
96,450
98,675
Ceded written premiums
(3,882
(2,811
Net written premiums
92,568
95,864
Change in net unearned premiums
5,787
(2,548
Net earned premiums
98,355
93,316
Net investment income
12,218
14,782
Net realized investment gains (losses)
(2,243
136
Other income
847
417
Total revenues
109,177
108,651
Losses and Expenses:
Net losses and loss adjustment expenses
53,861
66,738
Acquisition costs and other operating expenses
40,763
37,507
Corporate expenses
9,038
9,500
Income (loss) before income taxes
5,515
(5,094
Income tax expense (benefit)
1,269
(1,105
Net income (loss)
4,246
(3,989
Less: preferred stock distributions
110
Net income (loss) available to common shareholders
4,136
(4,099
Per share data:
Net income (loss) available to common shareholders (1)
Basic
0.29
(0.30
Diluted
Weighted-average number of shares outstanding
14,351,153
13,867,271
14,405,235
Cash distributions declared per common share
0.35
Consolidated Statements of Comprehensive Income (Loss)
(In thousands)
Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses)
(2,622
3,571
Reclassification adjustment for gains included in net income (loss)
(15
(10
Unrealized foreign currency translation gains (losses)
(64
Other comprehensive income (loss), net of tax
(2,596
3,497
Comprehensive income (loss), net of tax
1,650
(492
Consolidated Statements of Changes in Shareholders’ Equity
Number of Series A Cumulative Fixed Rate Preferred Shares
Number at beginning and end of period
Number of class A common shares issued:
Number at beginning of period
11,844,995
11,202,355
Common shares designated as class A-2 common shares issued under share incentive plans
230,000
550,000
Common shares issued to directors
28,288
16,489
Number at end of period
12,103,283
11,768,844
Number of class B common shares issued:
3,793,612
Par value of Series A Cumulative Fixed Rate Preferred Shares
Balance at beginning and end of period
Additional paid-in capital:
Balance at beginning of period
459,578
Share compensation plans
1,003
3,494
Balance at end of period
463,072
Accumulated other comprehensive income (loss), net of deferred income tax:
(10,410
Other comprehensive income:
Change in unrealized holding gains
(2,637
3,561
Other comprehensive income
(6,913
Retained earnings:
268,673
Preferred share distributions
(110
Distributions to shareholders ($0.35 per share per quarter in 2026 and 2025)
(5,023
(4,990
259,584
Number of treasury shares:
1,287,768
Treasury shares, at cost:
687,051
Consolidated Statements of Cash Flows
Cash flows from operating activities:
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Amortization and depreciation
1,588
1,443
Restricted stock and stock option expense
(1,045
(1,326
Amortization of bond premium and discount, net
(844
10,555
Net realized investment losses (gains)
2,243
(136
Loss from equity method investments, net of distributions
1,962
239
Changes in:
Premium receivables, net
(4,442
7,244
Reinsurance receivables, net
(1,821
(2,687
188
5,025
(3,048
(5,543
(5,198
2,665
1,238
(5,395
Other assets and liabilities
(12,784
(5,303
(4,331
(3,440
Income tax receivable / payable
2,813
220
957
(553
(589
(116
Net cash provided by (used for) operating activities
(17,864
2,397
Cash flows from investing activities:
Proceeds from sale of fixed maturities
73,231
39,984
Proceeds from sale of equity securities
3,550
Proceeds from maturity of fixed maturities
623,075
705,938
Proceeds from maturity of preferred stock
1,450
Proceeds from other invested assets
4,952
5,259
Purchases of fixed maturities
(713,973
(684,341
Net cash provided by (used for) investing activities
(7,715
66,840
Cash flows from financing activities:
Distributions paid to common shareholders
Distributions paid to preferred shareholders
Net cash used for financing activities
(5,133
(5,100
Net change in cash and cash equivalents
(30,712
64,137
Cash and cash equivalents at beginning of period
17,009
Cash and cash equivalents at end of period
81,146
Supplemental disclosure of cash flow information:
Income tax refunds received
501
Interest paid
Global Indemnity Group, LLC (“Global Indemnity” or “the Company”) is a Delaware limited liability company. As of March 31, 2026, Global Indemnity Group, LLC’s class A common shares (excluding the 780,000 class A common shares designated as class A-2 common shares) are publicly traded on the Nasdaq Global Select Market under the ticker symbol GBLI. Global Indemnity Group, LLC’s predecessors have been publicly traded since 2003.
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. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
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. Results of operations for the quarters ended March 31, 2026 and 2025 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 2025 Annual Report on Form 10-K.
The consolidated financial statements include the accounts of Global Indemnity Group, LLC and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
2. Investments
The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of March 31, 2026 and December 31, 2025:
(Dollars in thousands)
Amortized Cost
Allowance for Expected Credit Losses
GrossUnrealizedGains
GrossUnrealizedLosses
Estimated Fair Value
As of March 31, 2026
U.S. treasuries
675,406
22
(165
675,263
Obligations of states and political subdivisions
14,493
(384
14,109
Mortgage-backed securities
198,081
1,112
(3,510
195,683
Asset-backed securities
148,969
838
(3,828
145,979
Commercial mortgage-backed securities
56,197
400
(1,457
55,140
Corporate bonds
169,967
343
(980
169,330
Foreign corporate bonds
68,602
192
(736
68,058
Total fixed maturities
1,331,715
2,907
(11,060
As of December 31, 2025
640,533
216
(120
640,629
14,515
(350
14,165
199,901
2,610
(3,451
199,060
139,690
1,227
(3,649
137,268
58,202
89
(1,463
56,828
198,970
1,090
(867
199,193
78,499
425
(565
78,359
1,330,310
5,657
(10,465
As of March 31, 2026 and December 31, 2025, the Company’s investments in equity securities consist of the following:
March 31, 2026
Common stock
15,259
21,006
Preferred stock
11,150
12,667
Total
Excluding U.S. treasuries and limited partnerships, the Company did not hold any debt securities or equity investments in a single issuer in excess of 2.7% of shareholders' equity at March 31, 2026 and December 31, 2025, respectively.
The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at March 31, 2026, 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.
Due in one year or less
818,421
818,354
Due in one year through five years
98,157
97,281
Due in five years through ten years
2,930
2,818
Due after ten years
8,960
8,307
9
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, 2026. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 3.
Less than 12 months
12 months or longer
Fair Value
398,716
(56
7,652
(109
406,368
12,660
14,110
43,065
(771
23,099
(2,739
66,164
49,616
(1,982
30,351
(1,846
79,967
10,838
(65
31,862
(1,392
42,700
31,341
(107
38,166
(873
69,507
4,626
(43
19,787
(693
24,413
539,652
(3,024
163,577
(8,036
703,229
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 December 31, 2025. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 3.
21,804
(1
7,643
(119
29,447
12,714
15,293
(716
24,918
(2,735
40,211
24,080
(1,872
31,604
(1,777
55,684
13,954
(96
32,183
(1,367
46,137
2,509
(26
48,935
(841
51,444
1,580
(17
24,411
(548
25,991
79,220
(2,728
182,408
(7,737
261,628
The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each available for sale debt security in an unrealized loss position to assess whether the decline in fair value below amortized cost basis has resulted from a credit loss or other factors. In assessing whether a credit loss exists, the Company compares the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis of the security, a credit loss exists and an allowance for expected credit losses is recorded. Subsequent changes in the allowances are recorded in the period of change as either credit loss expense or reversal of credit loss expense. Any declines in value related to factors other than credit losses and the intent to sell are recorded through other comprehensive income, net of taxes.
10
For fixed maturities, the factors considered in reaching the conclusion that a credit loss exists include, among others, whether:
According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met, any allowance for expected credit losses is written off and the amortized cost basis is written down to the fair value of the fixed maturity security with any incremental impairment reported in earnings. The new amortized cost basis shall not be adjusted for subsequent recoveries in fair value. Subject to the risks and uncertainties in evaluating the potential impairment of a security's value, the impairment evaluation conducted by the Company as of March 31, 2026 and December 31, 2025 concluded the unrealized losses in the tables above are non-credit losses on securities where management does not intend to sell, and it is more likely than not that the Company will not be required to sell the security before recovery.
The Company elected the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of the available for sale debt securities for the purposes of identifying and measuring an impairment and to not measure an allowance for expected credit losses for accrued interest receivables. Accrued interest receivable is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payment. 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. Accrued interest receivable related to fixed maturities was $4.0 million and $4.8 million as of March 31, 2026 and December 31, 2025, 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:
U.S. treasuries – As of March 31, 2026, gross unrealized losses related to U.S. treasuries were $0.165 million. 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. Consideration is given to the interest rate environment, duration and yield curve management of the portfolio, sector allocation and security selection. Based on the analysis performed, the Company did not recognize a credit loss on U.S. treasuries during the period.
Obligations of states and political subdivisions – As of March 31, 2026, gross unrealized losses related to obligations of states and political subdivisions were $0.384 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. The analysis relies on the output of fixed income credit analysts, as well as dedicated municipal bond analysts who perform extensive in-house fundamental analysis on each issuer, regardless of their rating by the major agencies. Based on the analysis performed, the Company did not recognize a credit loss on obligations of states and political subdivisions during the period.
11
Mortgage-backed securities (“MBS”) – As of March 31, 2026, gross unrealized losses related to mortgage-backed securities were $3.510 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. The primary assumption that drives the security and loan level modeling is the Home Price Index (“HPI”) projection. These forecasts incorporate not just national macro-economic trends, but also regional impacts to arrive at the most granular and detailed and comprehensive projections. These assumptions are incorporated into the model as a basis to generate delinquency probabilities, default curves, loss severity curves, and voluntary prepayment curves at the loan level within each deal. The model utilizes HPI-adjusted current loan to value, payment history, loan terms, loan modification history, and borrower characteristics as inputs to generate expected cash flows and principal loss for each bond under various scenarios. Based on the analysis performed, the Company did not recognize a credit loss on mortgage-backed securities during the period.
Asset backed securities (“ABS”) - As of March 31, 2026, gross unrealized losses related to asset backed securities were $3.828 million. The weighted average credit enhancement for the Company’s asset backed portfolio is 34.6. This represents the percentage of pool losses that can occur before an asset backed security will incur its first dollar of principal losses. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, every ABS transaction is analyzed on a stand-alone basis. This analysis involves a thorough review of the collateral, prepayment, and structural risk in each transaction. Additionally, the analysis includes an in-depth credit analysis of the originator and servicer of the collateral. The analysis projects an expected loss for a deal given a set of assumptions specific to the asset type. These assumptions are used to calculate at what level of losses the deal will incur its first dollar of principal loss. The major assumptions used to calculate this ratio are loss severities, recovery lags, and no advances on principal and interest. Based on the analysis performed, the Company did not recognize a credit loss on asset backed securities during the period.
Commercial mortgage-backed securities (“CMBS”) - As of March 31, 2026, gross unrealized losses related to the CMBS portfolio were $1.457 million. The weighted average credit enhancement for the Company’s CMBS portfolio is 40.8. This represents the percentage of pool losses that can occur before a commercial mortgage-backed security will incur its first dollar of principal loss. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, a loan level analysis is utilized where every underlying CMBS loan is re-underwritten based on a set of assumptions reflecting expectations for the future path of the economy. Each loan is analyzed over time using a series of tests to determine if a credit event will occur during the life of the loan. Inherent in this process are several economic scenarios and their corresponding rent/vacancy and capital market states. The five primary credit events that frame the analysis include loan modifications, term default, balloon default, extension, and ability to pay off the balloon. The resulting output is the expected loss adjusted cash flows for each bond under base case and distressed scenarios. Based on the analysis performed, the Company did not recognize a credit loss on commercial mortgage-backed securities during the period.
Corporate bonds - As of March 31, 2026, gross unrealized losses related to corporate bonds were $0.980 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. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. Based on the analysis performed, the Company did not recognize a credit loss on corporate bonds during the period.
Foreign bonds – As of March 31, 2026, gross unrealized losses related to foreign bonds were $0.736 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. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. Based on the analysis performed, the Company did not recognize a credit loss on foreign bonds during the period.
12
The Company has evaluated its investment portfolio and has determined that an allowance for expected credit losses on its investments is not required.
Accumulated Other Comprehensive Income (Loss), Net of Tax
Accumulated other comprehensive income (loss), net of tax, as of March 31, 2026 and December 31, 2025 were as follows:
Net unrealized gains (losses) from:
Fixed maturities
(8,153
(4,808
Foreign currency fluctuations
(88
(140
Deferred taxes
1,645
948
The following tables present the changes in accumulated other comprehensive income (loss), by components, for the quarters ended March 31, 2026 and 2025:
Quarter Ended March 31, 2026(Dollars in thousands)
Unrealized Gains and Losses on Available for Sale Securities
Foreign Currency Items
Accumulated Other Comprehensive Income (Loss)
Beginning balance, net of tax
(3,889
(111
Other comprehensive income before reclassification, before tax
(3,324
52
(3,272
Amounts reclassified from accumulated other comprehensive income (loss), before tax
(21
Other comprehensive income (loss), before tax
(3,345
(3,293
Income tax benefit (expense)
708
(11
697
Ending balance, net of tax
(6,526
(70
Quarter Ended March 31, 2025(Dollars in thousands)
(10,205
(205
Other comprehensive income (loss) before reclassification, before tax
4,477
(81
4,396
(13
4,464
4,383
(903
17
(886
(6,644
(269
The reclassifications out of accumulated other comprehensive income (loss) for the quarters ended March 31, 2026 and 2025 were as follows:
Amounts Reclassified fromAccumulated OtherComprehensive Income (Loss)
Quarters Ended March 31,
Details about Accumulated OtherComprehensive Income (Loss) Components
Affected Line Item in the ConsolidatedStatements of Operations
Unrealized gains and losses on available for sale securities
Other net realized investment gains
Income tax expense
Total reclassifications, net of tax
13
Net Realized Investment Gains (Losses)
The components of net realized investment gains (losses) for the quarters ended March 31, 2026 and 2025 were as follows:
Gross realized gains
24
14
Gross realized losses
(3
Net realized gains (losses)
21
Equity securities:
123
(2,269
(2,264
Total net realized investment gains (losses)
The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of March 31, 2026 and 2025:
Net gains (losses) recognized during the period on equity securities
Less: net gains (losses) recognized during the period on equity securities sold during the period
(1,075
Unrealized gains (losses) recognized during the reporting period on equity securities still held
(1,189
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, 2026 and 2025 were as follows:
Equity securities
Net Investment Income
The sources of net investment income for the quarters ended March 31, 2026 and 2025 were as follows:
13,766
14,387
587
116
376
856
(1,962
(86
Total investment income
12,767
15,273
Investment expense
(549
(491
The Company’s total investment return on a pre-tax basis for the quarters ended March 31, 2026 and 2025 were as follows:
Change in unrealized holding gains (losses)
Net realized and unrealized investment returns
(5,536
4,519
Total investment return
6,682
19,301
Total investment return % (1)
0.5
%
1.3
Average investment portfolio (2)
1,405,369
1,436,218
As of March 31, 2026 and December 31, 2025, the Company did not own any fixed maturity securities that were non-income producing for the preceding twelve months.
Bonds Held on Deposit
Certain cash and 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. The fair values were as follows as of March 31, 2026 and December 31, 2025:
On deposit with governmental authorities
19,812
19,919
Held in trust pursuant to assumed reinsurance contracts
106,723
105,756
Total (1)
126,535
125,675
Variable Interest Entities
A Variable Interest Entity (“VIE”) refers to an investment in which an investor holds a controlling interest that is not based on the majority of voting rights. Under the VIE model, the party that has the power to exercise significant management influence and maintain a controlling financial interest in the entity’s economics is said to be the primary beneficiary, and is required to consolidate the entity within their results. Other entities that participate in a VIE, for which their financial interests fluctuate with changes in the fair value of the investment entity’s net assets but do not have significant management influence and the ability to direct the VIE’s significant economic activities are said to have a variable interest in the VIE but do not consolidate the VIE in their financial results.
The Company has interests in three limited partnership investments with an aggregate carrying value approximating fair value of $10.2 million and $17.1 million as of March 31, 2026 and December 31, 2025. These investments are accounted for under the equity method. The Company has a variable interest in two of these limited partnership investments (each with an ownership interest exceeding 3%), for which it is not the primary beneficiary.
The carrying value of one of the Company’s VIEs, the European Non-Performing Loan Fund, LP, which invests in distressed securities and assets, was $1.6 million and $1.7 million as of March 31, 2026 and December 31, 2025, respectively. The Company’s maximum loss exposure from this VIE, which factors in future funding commitments of $11.2 million, was $12.9 million as of March 31, 2026 and December 31, 2025, respectively. Since the investment period has concluded, the Company does not expect any capital calls will be made prospectively. The carrying value and maximum loss exposure of a second VIE, the Mortgage Debt Fund, LP, which invests in Real Estate Investment Trust (“REIT”) qualifying assets was $6.1 million and $6.0 million as of March 31, 2026 and December 31, 2025, respectively. The Company’s investment in VIEs is
15
included in other invested assets on the consolidated balance sheets with changes in carrying value recorded in the consolidated statements of operations.
The accounting standards related to fair value measurements define fair value, establish a framework for measuring fair value, outline a fair value hierarchy based on inputs used to measure fair value, and enhance disclosure requirements for fair value measurements. These standards do not change existing guidance as to whether or not an instrument is carried at fair value. The Company has determined that its fair value measurements are in accordance with the requirements of these accounting standards.
The Company’s invested assets are carried at their fair value and are categorized based upon a fair value hierarchy:
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. 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.
The following table presents information about the Company’s invested assets measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.
Fair Value Measurements
As of March 31, 2026 (Dollars in thousands)
Level 1
Level 2
Level 3
Assets:
648,299
Total assets measured at fair value
690,522
659,449
1,349,971
16
As of December 31, 2025 (Dollars in thousands)
684,873
661,635
697,540
1,359,175
The securities classified as Level 1 in the above tables consist of U.S. treasuries and equity securities actively traded on an exchange.
The securities classified as Level 2 in the above tables consist primarily of fixed maturities and preferred stocks. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities and preferred stocks, security prices are derived through recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. If there are no recent reported trades, matrix or model processes are used to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Included in the pricing of asset-backed securities, collateralized mortgage obligations, and mortgage-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities. 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.
Financial Instruments not Carried at Fair Value
Other invested assets consist of limited partnerships whose carrying value approximates fair value. The Company uses the equity method to account for investments in limited partnerships, which requires that its cost basis be updated to account for the income or loss earned on the investment. These investments are booked on a one quarter lag due to non-availability of data at the time the financial statements are prepared. The investment loss associated with the limited partnerships is reflected in the consolidated statements of operations in the amounts of $2.0 million and $0.1 million for the quarters ended March 31, 2026 and 2025, respectively. This investment loss of $2.0 million was attributable to the decline in market value in one of the Company's limited partnership investments during the first quarter of 2026.
The following table provides the carrying value and future funding commitments related to these investments at March 31, 2026 and December 31, 2025.
Carrying Value
Future FundingCommitment
European Non-Performing Loan Fund, LP (1)
1,639
11,214
1,728
Mortgage Debt Fund, LP (2)
6,126
6,036
Global Debt Fund, LP (3)
2,418
9,333
Pricing
The Company’s pricing vendors provide prices for all investment categories except for investments in limited partnerships. Two primary vendors are utilized to provide prices for equity and fixed maturity securities.
The following is a description of the valuation methodologies used by the Company’s pricing vendors for investment securities carried at fair value:
18
The Company performs certain procedures to validate whether the pricing information received from the pricing vendors is reasonable, to ensure that the fair value determination is consistent with accounting guidance, and to ensure that its assets are properly classified in the fair value hierarchy. The Company’s procedures include, but are not limited to:
During the quarters ended March 31, 2026 and 2025, the Company has not adjusted quotes or prices obtained from the pricing vendors.
4. 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, agents, or reinsurers on assumed reinsurance, terminated agents, and other relevant factors.
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, 2026 and 2025:
Beginning balance
3,640
3,530
Current period provision for expected credit losses
93
Write-offs
(46
(42
Ending balance
3,687
3,475
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.
The allowance for expected credit losses related to the Company's reinsurance receivables was $1.5 million at March 31, 2026 and December 31, 2025.
5. Income Taxes
Global Indemnity Group, LLC is a publicly traded partnership for U.S. federal income tax purposes and meets the qualifying income exception to maintain partnership status. As a publicly traded partnership, Global Indemnity Group, LLC is generally not subject to federal income tax and most state income taxes. However, income earned by the subsidiaries of Global Indemnity Group, LLC is subject to corporate tax in the United States and certain foreign jurisdictions.
The Company conducts business in the United States where the statutory income tax rate is 21% and performs certain functions in Ireland where the statutory income tax rate is 12.5% on trading income, and in Israel, where the statutory income tax rate is 23%. 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 uses the estimated annual effective tax rate method for calculating its interim tax provision. These rates are revised, if necessary, at the end of each successive interim period to reflect current estimates of the annual effective tax rates.
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The effective tax rate was 23.0% for the quarter ended March 31, 2026. The effective tax rate is higher than the statutory tax rate of 21% primarily due to state income taxes and non-deductible executive compensation offset partially by Global Indemnity Group, LLC’s income being treated as a partnership for tax.
The effective tax rate was 21.7% for the quarter ended March 31, 2025. The effective tax rate is higher than the statutory tax rate of 21% primarily due to non-deductible executive compensation offset partially by Global Indemnity Group, LLC’s income being treated as a partnership for tax.
6. Liability for Unpaid Losses and Loss Adjustment Expenses
Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:
800,391
Less: ceded reinsurance receivables
60,898
60,754
Net balance at beginning of period
689,293
739,637
Net losses and loss adjustment expenses related to:
Current year
66,735
Prior years
Total net losses and loss adjustment expenses
Paid net losses and loss adjustment expenses related to:
10,491
17,991
48,309
56,267
Total paid net losses and loss adjustment expenses
58,800
74,258
Net balance at end of period
684,354
732,117
Plus: ceded reinsurance receivables
62,789
62,731
794,848
When analyzing unpaid losses and loss adjustment expenses ("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.
7. Share-Based Compensation Plans
Options
The Company granted 50,000 time-based stock options during each of the quarters ended March 31, 2026 and 2025 at an exercise price of $28.74 and $36.25 per share, respectively, and both stock option grants will vest on December 31, 2028. No unvested stock options were forfeited during the quarters ended March 31, 2026 or 2025.
Restricted Shares
During the quarters ended March 31, 2026 and 2025, the Company granted 28,288 and 16,489 class A common shares, respectively, at a weighted average grant date value of $28.19 and $35.09 per share, respectively, to non-employee directors of the Company under the Global Indemnity Group, LLC 2023 Share Incentive Plan. All shares granted to non-employee directors of the Company are fully vested but are subject to certain restrictions.
20
Class A Common Shares Designated as Class A-2 Common Shares
The Company granted 230,000 non-vested class A common shares designated as class A-2 common shares to officers and a director of the Company during the quarter ended March 31, 2026. These shares represent an interest in the profits of the Company in excess of a threshold amount of $391.2 million. These shares vest solely upon the occurrence of a change of control subject to continued service and have an aggregate grant date fair value of $2.4 million. Compensation expense of $2.4 million will be recognized only upon the occurrence of a change of control. No compensation cost was recognized during the quarter ended March 31, 2026.
The Company granted 550,000 class A common shares designated as class A-2 common shares with a threshold amount of $475.3 million to Fox Paine & Company, LLC during the quarter ended March 31, 2025. These shares have a grant date fair value of $11.0 million and additional consideration of $0.2 million in cash. Of the grant date fair value, $2.7 million was recorded in the first quarter of 2025. The remaining $8.3 million will be recognized, if at all, upon the occurrence of a change of control transaction. See Note 8 for additional information regarding the 550,000 class A common shares designated as class A-2 common shares issued to Fox Paine & Company, LLC.
Please see Note 13 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2025 Annual Report on Form 10-K for additional information on class A common shares designated as class A-2 common shares.
8. Related Party Transactions
Fox Paine Entities
Pursuant to Global Indemnity Group, LLC’s Third Amended and Restated Limited Liability Company Agreement (“LLCA”), as amended, Fox Paine Capital Fund II International, L.P. (the “Fox Paine Fund”), together with Fox Mercury Investments, L.P. 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. The Fox Paine Entities beneficially own shares representing approximately 83.4% of the voting power of Global Indemnity Group, LLC as of March 31, 2026. 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. Global Indemnity Group, LLC’s Chairman is the Chief Executive and founder of Fox Paine & Company, LLC.
Management fee expense of $0.8 million was incurred during each of the quarters ended March 31, 2026 and 2025. Prepaid management fees, which were included in other assets on the consolidated balance sheets, were $1.4 million and $2.3 million as of March 31, 2026 and December 31, 2025, 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. 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 Disinterested Directors (as defined in the LLCA), and upon the recommendation of the Conflicts Committee, the Board of Directors (Saul A. Fox, Chairman of the Board of Directors of Global Indemnity Group, LLC and Chief Executive of Fox Paine & Company, LLC, is not a member of the Conflicts Committee and recused himself from deliberations related to fees paid to Fox Paine & Company, LLC or its affiliates).
Advisory Fee related to Internal Reorganization
Fox Paine & Company, LLC conceived, designed, and directed the Company's successful completion of an extensive reorganization of its business in December 2024. The reorganization was designed to:
On March 6, 2025, upon the recommendation of the Conflicts Committee of the Board of Directors, Global Indemnity Group, LLC’s Board of Directors (other than Joseph Brown, Chief Executive Officer of Global Indemnity Group, LLC, who recused himself due to his inherent conflict of interest in approving a compensation matter for Fox Paine) approved the issuance of 550,000 class A common shares designated as class A-2 common shares with a grant date fair value of $11.0 million and additional consideration of $0.2 million in cash for services performed in connection with the Company’s internal corporate reorganization. Of the grant date fair value of the class A common shares designated as class A-2 common shares, $2.7 million was recorded in the first quarter of 2025. The remaining $8.3 million will be recognized, if at all, upon a Change of Control Transaction. See Note 7 for additional information regarding the 550,000 class A common shares designated as class A-2 common shares.
9. Commitments and Contingencies
The Company is, from time to time, involved in various legal proceedings in the ordinary course of business. The Company maintains insurance and reinsurance coverage for such risks in amounts that it considers adequate. However, there can be no assurance that the insurance and reinsurance coverage that the Company maintains is sufficient or will be available in adequate amounts or at a reasonable cost. The Company does not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material adverse effect on its business, results of operations, cash flows, or financial condition.
There is a greater potential for disputes with reinsurers who are in runoff. Some of the Company’s reinsurers have operations that are in runoff, and therefore, the Company closely monitors those relationships. 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.
Commitments
In 2014, the Company entered into a $50 million commitment to purchase an alternative investment vehicle which is comprised of European non-performing loans. As of March 31, 2026, the Company has an unfunded commitment of $11.2 million. Since the investment period has concluded, the Company does not expect any capital calls will be made prospectively.
Other Commitments
The Company is party to a Management Agreement, as amended, with Fox Paine & Company, LLC, whereby in connection with certain management services provided to it by Fox Paine & Company, LLC, the Company agreed to pay an annual management fee to Fox Paine & Company, LLC. See Note 8 above for additional information pertaining to this management agreement.
10. Shareholders' Equity
Repurchases of the Company's class A common shares
No class A common shares were surrendered, repurchased, or redeemed during the quarters ended March 31, 2026 and 2025. As of March 31, 2026, the Company’s remaining authorization to repurchase shares is $101.0 million.
Please see Note 13 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2025 Annual Report on Form 10-K for more information on the Company’s repurchase program.
Distributions
Quarterly distribution payments of $0.35 per common share were declared during the quarter ended March 31, 2026 as follows:
Approval Date
Record Date
Payment Date
Total Distributions Declared (Dollars in thousands)
March 5, 2026
March 20, 2026
March 30, 2026
5,023
Quarterly distribution payments of $0.35 per common share were declared during the quarter ended March 31, 2025 as follows:
March 6, 2025
March 21, 2025
March 28, 2025
4,990
In addition, distributions paid to Global Indemnity Group, LLC's preferred shareholder were $0.1 million in each of the quarters ended March 31, 2026 and 2025.
There were no accrued distributions related to common shares as of March 31, 2026 and December 31, 2025. Accrued preferred distributions were less than $0.1 million as of both March 31, 2026 and December 31, 2025 and were included in other liabilities on the consolidated balance sheets.
Please see Note 13 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2025 Annual Report on Form 10-K for more information on the Company’s distribution program.
11. Earnings Per Share
Earnings per share was computed using the weighted average number of common shares and common share equivalents outstanding during the period.
The following table sets forth the computation of basic and diluted earnings per share attributable to class A common shares, class A common shares designated as class A-2 common shares, and class B common shares:
Quarters EndedMarch 31,
(Dollars in thousands, except share and per share data)
Numerator:
Denominator:
Weighted average shares for basic earnings per share
54,082
Weighted average shares for diluted earnings per share
Net income (loss) per share available to common shareholders (1)
23
If the Company had not incurred a loss during the quarter ended March 31, 2025, 13,986,069 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 for the quarter ended March 31, 2025 would have included 118,798 share equivalents for options.
The weighted average shares used to compute basic and diluted earnings per share for the quarter ended March 31, 2026 do not include 230,000 non-vested class A common shares designated as class A-2 common shares. Holders of these shares are not entitled to distributions or participation in earnings prior to vesting and therefore are excluded from basic earnings per share. In addition, these shares vest only upon the occurrence of a change of control transaction subject to continued service. Because no change of control occurred during the quarter ended March 31, 2026, the vesting contingency was not satisfied and the shares were excluded from diluted earnings per share. Additionally, the weighted average shares outstanding used to determine dilutive earnings per share does not include options of 650,000 and 166,669 for the quarters ended March 31, 2026 and 2025, respectively, which were deemed to be anti-dilutive.
12. Segment Information
The Company manages its operations through three reportable segments:
Certain entities within the Agency and Insurance Services segment executed new affiliated service agreements with Belmont Holdings GX, Inc. and its insurance company subsidiaries effective January 1, 2025.
The Company's segments are reported on a stand-alone basis. Intercompany transactions are eliminated in consolidation.
The Company analyzes the operating performance of each segment using the segment’s income (loss). Segment income (loss) does not equate to “net income (loss)” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the Company's Chief Operating Decision Maker ("CODM"), the Chief Executive Officer of Global Indemnity Group, LLC, to evaluate segment performance and allocate resources, and consistent with authoritative guidance, is the measure of segment performance presented below.
The following are tabulations of business segment information for the quarters ended March 31, 2026 and 2025. Corporate information is included to reconcile segment data to the consolidated financial statements.
Agency and Insurance Services
Belmont Core
Belmont Non-Core
Elimination
96,507
(57
92,625
98,371
(16
Commission and service fee income (1)
12,778
(12,390
388
Policy and installment fee income
461
(2
459
Total segment revenues
13,239
(18
99,202
Reconciliation of revenue
Total consolidated revenues
Less: (2)
54,304
(441
Net commission expenses
32,695
167
(9,524
23,338
Other operating expenses (3)
13,633
6,130
87
(2,425
17,425
Income (loss) from segments
(394
5,242
(270
4,578
Reconciliation of segment profit (loss)
Unallocated items:
(9,038
Segment assets
44,924
154,957
74,995
(16,106
258,770
Corporate assets
1,421,346
25
98,389
286
95,634
230
92,260
1,056
14,049
(14,049
387
30
14,436
1,086
93,733
66,452
619
(333
32,404
(10,571
22,334
12,632
4,986
700
(3,145
15,173
1,804
(11,582
(734
(10,512
(9,500
41,886
153,788
86,130
(29,871
251,933
1,461,673
1,713,606
13. New Accounting Pronouncements
Accounting Standards Adopted in 2026
In July 2025, the Financial Accounting Standards Board issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which permits a practical expedient for estimating expected credit losses on certain current receivables and current contract assets arising from ASC 606 revenue transactions by assuming that current conditions as of the balance sheet date do not change over the remaining life of the asset. The Company adopted ASU 2025-05 effective January 1, 2026 and elected this practical expedient. The adoption of this new accounting guidance did not have an impact on the consolidated financial statements for the quarter ended March 31, 2026
Please see Note 21 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2025 Annual Report on Form 10-K for more information on accounting pronouncements issued but not yet adopted.
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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the consolidated financial statements and accompanying notes of the Company included elsewhere in this report. Some of the information contained in this discussion and analysis or set forth elsewhere in this report, including information with respect to the Company’s plans and strategy, constitutes forward-looking statements that involve risks and uncertainties. Please see "Cautionary Note Regarding Forward-Looking Statements" at the end of this Item 2 for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained herein. For more information regarding the Company’s business and operations, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Financial Highlights
2026 First Quarter Results of Operations
2026 First Quarter Consolidated Financial Condition
Results of Operations
The following table summarizes the Company’s results for the quarters ended March 31, 2026 and 2025:
Change
(2.3
%)
(3.4
5.4
103.1
Segment revenues
5.8
Losses and expenses:
(19.3
Acquisition costs and other operating expenses (1)
8.7
Segment income (loss)
143.6
(17.3
NM
(4.9
208.3
Income tax (expense) benefit
(1,269
1,105
214.8
206.4
Underwriting Ratios:
Loss ratio (2):
54.8
71.5
Expense ratio (3)
40.3
40.2
Combined ratio (4)
95.1
111.7
NM - not meaningful
Premiums
The following table summarizes the change in premium volume by reportable segment:
Gross written premiums (1)
Net written premiums (2)
28
Gross written premiums for Belmont Core decreased 1.9%:
% Change
Wholesale Commercial
61,495
64,884
(5.2
Vacant Express
11,452
10,922
4.9
Collectibles
4,616
4,098
12.6
Specialty Products
7,747
7,563
2.4
Assumed Reinsurance
11,197
2.5
Total gross written premiums
(1.9
Belmont Non-Core's business represents run-off premium from non-renewed treaties.
29
Segment Income (Loss)
The components of income (loss) from the Company’s reportable segments and corresponding underwriting ratios are as follows:
Eliminations
Commission and service fee income
(10,571.0
Other operating expenses (1)
Total losses and expenses
93,129
103,842
252
1,820
94,624
104,245
Loss ratio:
Current accident year
55.2
72.0
12.5
61.5
Prior accident year
(2.9
Calendar year loss ratio
58.6
Expense ratio
39.5
40.6
(1,587.5
113.7
Combined ratio
94.7
112.6
(1,575.0
172.3
Accident year combined ratio
112.5
(381.3
162.3
94.9
111.5
(1) Other operating expenses consist primarily of personnel expenses and general operating expenses related to underwriting and distribution activities.
Agency and Insurance Services segment
Agency and Insurance Services' segment loss was $0.4 million for the quarter ended March 31, 2026 compared to segment income of $1.8 million for the same period in 2025.
Belmont Core segment
Belmont Core's segment income increased 145.3% to $5.2 million for the quarter ended March 31, 2026 compared to a segment loss of $11.6 million for the same period in 2025. Excluding California Wildfires losses of $15.6 million in 2025, Belmont Core's segment income increased from $4.0 million for the quarter ended March 31, 2025 to $5.2 million for the quarter ended March 31, 2026. The current accident year combined ratio improved 17.8 points to 94.7% for quarter ended March 31, 2026 from 112.5% for the same period in 2025 mainly due to the California Wildfires which impacted the combined ratio by 16.9 points in 2025.
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The current accident year net losses and loss adjustment expenses and loss ratio are summarized as follows:
Point Change
Property losses
Non-catastrophe
17,012
17,085
(0.4
43.3
45.3
(2.0
Catastrophe
2,200
17,867
(87.7
5.6
47.4
(41.8
19,212
34,952
(45.0
48.9
92.7
(43.8
Casualty losses
35,092
31,467
11.5
59.4
57.7
1.7
Total accident year losses
66,419
(18.2
(16.8
The following table summarizes the components of the expense ratio:
Point
33.3
35.2
Other underwriting expenses
6.2
0.8
Expense Ratio
(1.1
Belmont Non-Core segment
Belmont Non-Core segment comprises lines of business that have been de-emphasized or are no longer being written. Belmont Non-Core recognized a segment loss of $0.3 million and $0.7 million during the quarters ended March 31, 2026 and 2025, respectively.
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Net investment income decreased 17.3% to $12.2 million for the quarter ended March 31, 2026 from $14.8 million for the same period in 2025.
13,593
14,752
(1,159
Equities
471
Limited partnerships
(1,876
(2,564
The Company's fixed maturities portfolio continues to maintain high quality with an AA- average rating, duration of 1.0 years, and consists of the following:
March 31,2026
December 31,2025
Structured bonds (1)
396,802
393,156
Other fixed maturities
251,497
291,717
(1) Structured bonds include asset-backed, mortgage-backed, commercial mortgage-backed and collateralized mortgage obligations.
Excluding the structured bonds, the average duration of the Company’s fixed maturities portfolio was 0.4 years as of March 31, 2026 compared with 0.5 years as of December 31, 2025. Structured bonds are subject to conditional prepayment rates whereas the remaining bonds have a set maturity date. Changes in interest rates can cause principal payments on structured bonds to extend or shorten which can impact duration.
See Note 2 of the notes to the consolidated financial statements in Item 1 of Part I of this report for an analysis of total investment return on a pre-tax basis for the quarters ended March 31, 2026 and 2025.
33
Corporate Expenses
Corporate expenses consist of outside legal fees, other professional fees, directors’ fees, management fees & advisory fees, salaries and benefits for holding company personnel, development costs for new products, impairment losses, and taxes incurred which are not directly related to operations.
Corporate expenses decreased $0.5 million to $9.0 million for the quarter ended March 31, 2026 from $9.5 million for the same period in 2025 primarily due to a reduction in professional and advisory fees partially offset by an increase in severance related compensation.
Income Tax Expense (Benefit)
Income tax expense was $1.3 million on net income before tax of $5.5 million for the quarter ended March 31, 2026. This compares to income tax benefit of $1.1 million on net loss before tax of $5.1 million for the same period in 2025.
See Note 5 of the notes to the consolidated financial statements in Item 1 of Part I of this report for a comparison of income tax between periods.
Net Income (Loss)
The Company had net income of $4.2 million during the quarter ended March 31, 2026 compared to net loss of $4.0 million for the same period in 2025.
Reserves
Amounts recorded for unpaid losses and loss adjustment expenses represent management’s best estimate at March 31, 2026. Management’s best estimate is as of a particular point in time and is based upon known facts, the Company’s actuarial analyses, current law, and the Company’s judgment. This resulted in carried gross reserves of $747.1 million and $750.2 million as of March 31, 2026 and December 31, 2025, respectively, and net reserves of $684.4 million and $689.3 million as of March 31, 2026 and December 31, 2025, respectively. A breakout of the Company’s gross and net reserves is as follows:
Gross Reserves
Net Reserves (2)
Case
IBNR (1)
155,526
314,211
469,737
152,806
305,830
458,636
101,992
175,414
277,406
71,125
154,593
225,718
257,518
489,625
223,931
460,423
153,062
308,084
461,146
152,468
300,278
452,746
102,432
186,613
289,045
71,673
164,874
236,547
255,494
494,697
224,141
465,152
Gross and net reserves related to Belmont Non-Core are declining as it services the run-off of policies/treaties on de-emphasized and terminated business.
Each reserve category has an implicit frequency and severity for each accident year as a result of the various assumptions made. If the actual levels of frequency and severity are higher or lower than expected, the ultimate net losses and loss adjustment expenses will be different than management’s best estimate. For most of its reserve categories, the Company believes that frequency can be predicted with greater accuracy than severity. Therefore, the Company believes management’s best estimate is more likely influenced by changes in severity than frequency. The following table, which the
34
Company believes reflects a reasonable range of variability around its best estimate based on historical loss experience and management’s judgment, reflects the impact of changes (which could be favorable or unfavorable) in frequency and severity on the Company’s current accident year net losses and loss adjustment expenses estimate of $53.9 million for claims occurring during the quarter ended March 31, 2026:
Severity Change
-10%
-5%
0%
5%
10%
Frequency Change
(7,810
(5,251
(2,693
(135
2,424
-3%
(6,840
(4,228
(1,616
996
3,609
-2%
(6,356
(3,716
(1,077
1,562
4,201
-1%
(5,871
(3,205
(539
2,128
4,794
(5,386
2,693
5,386
1%
(4,901
(2,181
539
3,259
5,979
2%
(4,417
(1,670
1,077
3,824
6,571
3%
(3,932
(1,158
1,616
4,390
7,164
(2,962
5,521
8,348
The Company’s net reserves for losses and loss adjustment expenses of $684.4 million as of March 31, 2026 relate to multiple accident years. Therefore, the impact of changes in loss frequency and severity for more than one accident year could be higher or lower than the amounts reflected above.
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Reconciliation of non-GAAP financial measures and ratios
The tables below reconcile the non-GAAP financial measures or ratios, which excludes the impact of prior accident year adjustments in the first table and excludes the impact of prior accident year adjustments and the California Wildfires in the second table, to its most directly comparable GAAP measure or ratio. The Company believes the non-GAAP financial measures or ratios are useful to investors when evaluating the Company's underwriting performance as trends in the Company's segments may be obscured by prior accident year adjustments and the California Wildfires. These non-GAAP financial measures or ratios should not be considered as a substitute for the most directly comparable GAAP measures or ratios and do not reflect the overall underwriting profitability of the Company.
LossRatio
Property - Belmont Core
Non catastrophe property (1)
16,984
43.2
16,649
44.2
Effect of prior accident year
0.1
436
1.1
Non catastrophe property excluding the effect of prior accident year (2)
Catastrophe (1)
2,207
17,990
47.7
(7
(123
(0.3
Catastrophe excluding the effect of prior accident year (2)
Total property (1)
19,191
48.8
34,639
91.9
313
Total property excluding the effect of prior accident year (2)
Casualty - Belmont Core
Total casualty (1)
35,113
31,813
58.3
(346
(0.6
Total casualty excluding the effect of prior accident year (2)
Total - Belmont Core
Total property and casualty (1)
(33
Total property and casualty excluding the effect of prior accident year (2)
36
Reconciliation of non-GAAP financial measures and ratios continued
Consolidated current accident year underwriting income excluding California Wildfires
Underwriting income (loss) (1)
5,323
Effect of prior accident year (5)
159
184
Current accident year underwriting income (loss) (2)
5,482
(10,328
California Wildfires net losses and loss adjustment expenses
15,600
Current accident year underwriting income excluding California Wildfires (2)
5,272
Net income excluding California Wildfires
Net income (loss) (1)
California Wildfires net losses and loss adjustment expenses (net of tax) (3)
12,216
Net income excluding California Wildfires (2)
8,227
Consolidated calendar year underwriting income (loss) excluding California Wildfires net losses and loss adjustment expenses
Underwriting income excluding California Wildfires (2)
5,088
Belmont Core segment income excluding California Wildfires
Belmont Core segment income (loss) (1)
Impact of California Wildfires
Belmont Core segment income excluding California Wildfires (2)
4,018
Consolidated current accident year combined ratio excluding California Wildfires
Combined ratio (1)
(0.2
Current accident year combined ratio (2)
(16.7
Current accident year combined ratio excluding California Wildfires (2)
94.8
Consolidated calendar year combined ratio excluding California Wildfires
Calendar year combined ratio excluding California Wildfires (2)
95.0
Belmont Core current accident year catastrophe loss ratio excluding California Wildfires
Belmont Core current accident year catastrophe loss ratio (4)
(41.4
Belmont Core current accident year catastrophe loss ratio excluding California Wildfires (2)
6.0
(1) Most directly comparable GAAP measure / ratio.
(2) Non-GAAP financial measure / ratio.
(3) Represents net losses and loss adjustment expenses of $15.6 million less tax benefit of $3.4 million.
(4) See previous table for reconciliation of non-GAAP financial measures or ratios to its most directly comparable GAAP measure or ratio for current accident year catastrophe net losses and loss adjustment expenses.
(5) Includes prior accident year adjustments for net losses and loss adjustment expenses and net commission expenses.
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Critical Accounting Estimates and Policies
The Company’s consolidated financial statements are prepared in conformity with GAAP, which require it to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions.
The most critical accounting policies involve significant estimates and include those used in determining the liability for unpaid losses and loss adjustment expenses, recoverability of reinsurance receivables, investments, fair value measurements, goodwill and intangible assets, deferred acquisition costs, and taxation. For a detailed discussion on each of these policies, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant changes to any of these policies or underlying methodologies during the current year.
Liquidity and Capital Resources
Sources and Uses of Funds
Global Indemnity Group, LLC is a holding company. Its principal assets are its ownership in the shares of (i) Belmont Holdings GX, Inc., an insurance holding company that owns the following insurance companies: United National Insurance Company, Diamond State Insurance Company, Penn-America Insurance Company, Penn-Star Insurance Company, and Penn-Patriot Insurance Company, and (ii) Katalyx Holdings LLC, an agency and specialized service holding company.
Global Indemnity Group, LLC’s current short-term and long-term liquidity needs include but are not limited to the payment of corporate expenses, distributions to shareholders, capital contributions to subsidiaries, and share repurchases. In order to meet its current short-term and long-term needs, its principal sources of cash include investment income, interest and principal payments on intercompany debt with Belmont Holdings GX, Inc., and reimbursement for equity awards granted to employees of Belmont Holdings GX, Inc. and Katalyx Holdings LLC.
Katalyx Holdings LLC includes four agencies, three specialized insurance service businesses, and one service company. Collectively, current short-term and long-term liquidity needs include but are not limited to the payment of corporate expenses, operating expenses, capital expenditures in developing and integrating information technology platforms and operations, federal and state taxes, and payment for equity awards granted to its employees by Global Indemnity Group, LLC. In order to meet its current short-term and long-term needs, its principal sources of cash include commissions and fees from third parties, commissions / service fees from Belmont Holdings GX, Inc., and capital contributions from Global Indemnity Group, LLC.
Belmont Holdings GX, Inc.’s current short-term and long-term liquidity needs include but are not limited to the payment of corporate expenses, payment of interest and principal on intercompany debt, federal and state taxes, and payment for equity awards granted to its employees by Global Indemnity Group, LLC. In order to meet its current short-term and long-term needs, its principal sources of cash include dividends from insurance company subsidiaries and investment income.
The insurance companies’ current short-term and long-term liquidity needs include but are not limited to the payment of claims, commissions, operating expenses, federal and state taxes, and dividends. Their principal sources of funds include cash from direct and assumed business written, investment income, and proceeds from sales and maturities of investments.
The Company continuously reviews and assesses the short-term and long-term needs of each of its holding companies, service companies, and insurance companies. In addition, the Company periodically reviews opportunities related to business acquisitions and the incubation and launch of new products and services. As a result, liquidity needs may arise in the future.
Belmont Holdings GX, Inc. is dependent on dividends from its insurance subsidiaries which are restricted by statute as to the amount of dividends that they may pay without the prior approval of regulatory authorities. The dividend limitations imposed by state laws are based on the statutory financial results of each insurance company that are determined by using statutory accounting practices that differ in various respects from accounting principles used in financial statements prepared in conformity with GAAP. See “Regulation - Statutory Accounting Principles” in Item 1 of Part I of the Company’s 2025 Annual Report on Form 10-K. Key differences relate to, among other items, deferred acquisition costs, limitations on deferred income taxes, reserve calculation assumptions and surplus notes. See Note 19 of the notes to the consolidated
38
financial statements in Item 8 of Part II of the Company’s 2025 Annual Report on Form 10-K for further information on dividend limitations related to the insurance companies. There were no dividends declared by the Company's insurance subsidiaries during the quarter ended March 31, 2026.
Cash Flows
Sources of operating cash consist primarily of net written premiums and investment income which are used to pay claims, operating expenses, and corporate expenses. Operating cash flows are generally used for investing and financing activities. Funds may be used to pay distributions to the Company’s shareholders.
Net cash provided by (used for) operating activities was $17.9 million and $2.4 million for the quarters ended March 31, 2026 and 2025, respectively, consisting of the following:
Net premiums collected
89,552
108,751
(19,199
Net losses and loss adjustment expenses paid
(60,409
(80,851
20,442
Operating and corporate expenses
(61,769
(49,498
(12,271
14,261
23,995
(9,734
Income tax refund received
(20,261
The decrease in cash flows of $20.3 million in 2026 compared to the same period in 2025 consists of:
The reconciliation of net income to net cash provided by (used for) operating activities is generally influenced by the following:
See the consolidated statements of cash flows in the consolidated financial statements in Item 1 of Part I of this report for details concerning the Company’s investing and financing activities.
Liquidity
The Board of Directors approved a quarterly distribution payment of $0.35 per common share to all shareholders of record on the close of business on March 20, 2026. Distributions paid to common shareholders were $5.0 million during the quarter ended March 31, 2026. In addition, distributions of $0.1 million were paid to Global Indemnity Group, LLC’s preferred shareholder during the quarter ended March 31, 2026.
Investment Portfolio
On July 31, 2023, the Company provided the Global Debt Fund, LP with a formal withdrawal request to fully redeem the partnership interest. Partial redemption proceeds of $4.9 million were received during the quarter ended March 31, 2026. The Global Debt Fund, LP had a fair market value of $2.4 million at March 31, 2026.
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Other than the items discussed in the preceding paragraphs, there have been no material changes to the Company’s liquidity during the quarter ended March 31, 2026. Please see Item 7 of Part II in the Company’s 2025 Annual Report on Form 10-K for information regarding the Company’s liquidity.
Capital Resources
There have been no material changes to the Company’s capital resources during the quarter ended March 31, 2026. Please see Item 7 of Part II in the Company’s 2025 Annual Report on Form 10-K for information regarding the Company’s capital resources.
Off Balance Sheet Arrangements
The Company has no off balance sheet arrangements.
Cautionary Note Regarding Forward-Looking Statements
Some of the statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this report are forward-looking statements within the meaning of Section 21E of the Security Exchange Act of 1934, as amended. These forward-looking statements reflect the Company’s current views as of the date of this report. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “project,” “plan,” “seek,” “intend,” or “anticipate” or the negative thereof or comparable terminology, and include discussions of strategy, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives, expectations or consequences of identified transactions or natural disasters, and statements about the future, including future performance, operations, products and services of the companies.
The forward-looking statements contained in this report are primarily based on the Company’s current expectations and projections about future events and trends that it believes may affect the Company’s business, financial condition, results of operations, prospects, business strategy and financial needs. The outcome of the events described in these forward-looking statements, such as the Company’s ability to execute on its strategy following its corporate reorganization, is subject to risks, uncertainties, assumptions, including, but not limited to, the impact of legislative or regulatory actions, the impact of natural or man-made disasters, the sufficiency of the Company’s reserves, the impact of emerging claims issues, adverse capital market developments impacting investment performance, ability to effectively start-up or integrate new product opportunities, such as the ability to successfully integrate and develop acquired businesses and to establish a reinsurance agency, adverse effect of cyber-attacks, and other factors described in the section captioned “Risk Factors” in Item 1A of Part I in the Company’s 2025 Annual Report on Form 10-K. These risks are not exhaustive, and new risks and uncertainties emerge from time to time. It is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this report. The Company cannot provide assurance that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. Forward-looking statements are inherently uncertain and investors are cautioned not to unduly rely upon such statements.
The Company’s forward-looking statements speak only as of the date of this report or as of the date they were made. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market risk is the risk of economic losses due to adverse changes in the estimated fair value of a financial instrument as the result of changes in interest rates, equity prices, credit risk, illiquidity, foreign exchange rates and commodity prices. The Company’s consolidated balance sheets include the estimated fair values of assets that are subject to market risk. The Company’s primary market risks are interest rate risk and credit risks associated with investments in fixed maturities, equity price risk associated with investments in equity securities, and foreign exchange risk associated with premium received that is denominated in foreign currencies. The Company has no commodity risk.
There have been no material changes to the Company’s market risk since December 31, 2025. The Company’s fixed income portfolio continues to maintain high quality with an AA- average rating and a duration of 1.0 years.
Please see Item 7A of Part II in the Company’s 2025 Annual Report on Form 10-K for information regarding the Company’s market risk.
Item 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
The Company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to ensure that information required to be disclosed in the Company’s reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of March 31, 2026. Based upon that evaluation, and subject to the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2026, the design and operation of the Company’s disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
There have been no changes in the Company’s internal controls over financial reporting that occurred during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.
PART II-OTHER INFORMATION
Item 1. Legal Proceedings
The Company is, from time to time, involved in various legal proceedings in the ordinary course of business. The Company maintains insurance and reinsurance coverage for risks in amounts that it considers adequate. However, there can be no assurance that the insurance and reinsurance coverage that the Company maintains is sufficient or will be available in adequate amounts or at a reasonable cost. The Company does not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material adverse effect on its business, results of operations, cash flows, or financial condition.
There is a greater potential for disputes with reinsurers who are in runoff. Some of the Company’s reinsurers’ have operations that are in runoff, and therefore, the Company closely monitors those relationships. 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.
Item 1A. Risk Factors
The Company’s results of operations and financial condition are subject to numerous risks and uncertainties described in Item 1A of Part I in the Company’s 2025 Annual Report on Form 10-K, filed with the SEC on March 10, 2026. The risk factors identified therein have not materially changed.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
There were no sales of unregistered equity securities during the quarter ended March 31, 2026.
Global Indemnity Group, LLC did not repurchase any shares from third parties under its repurchase program during the quarter ended March 31, 2026.
There were no shares surrendered by the Company's employees during the quarter ended March 31, 2026.
Item 3. Defaults upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Item 5. Other Information
Rule 10b5-1 and Non-Rule 10b5-1 Trading Arrangements
None of the Company's directors or Section 16 officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement, as each term is defined by Item 408 of Regulation S-K, during the quarter ended March 31, 2026.
Item 6.Exhibits
10.31*+
Form of Class A-2 Common Share Grant Agreement (2026 Grant)
31.1+
Certification of Chief Executive Officer pursuant to Rule 13a-14 (a) / 15d-14 (a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2+
Certification of Chief Financial Officer pursuant to Rule 13a-14 (a) / 15d-14 (a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1+
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2+
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH
Inline XBRL Taxonomy Extension Schema With Embedded Linkbases Document
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
+ Filed or furnished herewith, as applicable.
* Management contract or compensatory plan or arrangement required to be filed as an exhibit to this Form 10Q.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant
Dated: May 5, 2026
By:
/s/ Brian J. Riley
Brian J. Riley
Chief Financial Officer
(Authorized Signatory and Principal Financial and Accounting Officer)