Global Indemnity (GBLI) AI Stock Analysis

125 Followers

Top Page

Global Indemnity

(NYSE:GBLI)

69Neutral

Global Indemnity's overall stock score reflects a balanced view of its financial stability and moderate growth prospects. Strengths include improved profitability, a debt-free balance sheet, and strategic corporate changes, while challenges remain in revenue decline and cash flow trends. The stock's valuation and moderate technical momentum add to its appeal, although regulatory challenges and exposure to natural disasters pose risks.

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

Market Cap

$448.14M

Dividend Yield4.45%

Average Volume (3M)4.97K

Price to Earnings (P/E)10.1

Beta (1Y)0.09

Revenue Growth-16.46%

EPS Growth69.94%

CountryUS

Employees266

SectorFinancial

Sector Strength80

IndustryInsurance - Property & Casualty

Share Statistics

EPS (TTM)3.12

Shares Outstanding10,464,587

10 Day Avg. Volume4,575

30 Day Avg. Volume4,970

Financial Highlights & Ratios

PEG Ratio0.14

Price to Book (P/B)N/A

Price to Sales (P/S)1.16

Price to Cash Flow (P/CF)8.40

P/FCF Ratio8.40

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Global Indemnity Business Overview & Revenue Model

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

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

Global Indemnity Financial Statement Overview

Summary

Global Indemnity exhibits a mixed financial performance. While the company's profitability has improved, evidenced by a higher net profit margin and return on equity, revenue has declined over recent years. The absence of debt in the latest year strengthens the balance sheet, but the downward trend in free cash flow may pose challenges for future expansion.

Income Statement

Neutral

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

Balance Sheet

Positive

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

Cash Flow

Positive

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

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
441.19M	528.13M	628.53M	678.27M	583.55M
	Gross Profit
441.19M	504.75M	604.11M	651.09M	541.55M
	EBIT
0.00	35.47M	-3.42M	3.05M	-44.96M
	EBITDA
0.00	39.17M	13.37M	53.70M	-6.29M
	Net Income Common Stockholders
43.24M	25.43M	-850.00K	29.35M	-21.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.01M	38.04M	1.29B	1.28B	1.26B
	Total Assets
1.73B	1.73B	1.80B	2.01B	1.90B
	Total Debt
10.37M	12.73M	15.70M	145.51M	126.29M
	Net Debt
-6.64M	-25.30M	-23.14M	67.23M	58.93M
	Total Liabilities
1.04B	1.08B	1.17B	145.51M	126.29M
	Stockholders Equity
689.15M	648.75M	626.23M	706.62M	718.32M
Cash Flow		Free Cash Flow
38.84M	42.89M	44.24M	90.80M	6.95M
	Operating Cash Flow
38.84M	42.89M	44.24M	90.80M	32.67M
	Investing Cash Flow
-39.51M	-16.33M	80.13M	-64.52M	174.59M
	Financing Cash Flow
-20.36M	-27.36M	-163.80M	-15.36M	-184.17M

Global Indemnity Technical Analysis

Technical Analysis Sentiment

Negative

Last Price31.43

Price Trends

50DMA

34.86

Negative

100DMA

34.96

Negative

200DMA

33.17

Negative

Market Momentum

MACD

<0.01

Positive

RSI

47.66

Neutral

STOCH

13.69

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GBLI, the sentiment is Negative. The current price of 31.43 is below the 20-day moving average (MA) of 34.92, below the 50-day MA of 34.86, and below the 200-day MA of 33.17, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 13.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GBLI.

Global Indemnity Risk Analysis

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

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

Latest Risks Added 0 New Risks

Global Indemnity Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THG	82 Outperform	$5.68B	13.47	16.03%	2.22%	4.07%	1110.92%
WRB	76 Outperform	$24.81B	15.02	22.16%	0.49%	12.32%	29.21%
RLI	75 Outperform	$7.04B	20.51	23.56%	0.76%	18.31%	13.13%
SIGI	75 Outperform	$5.25B	26.74	6.82%	1.69%	15.35%	-44.64%
GBLI	69 Neutral	$448.14M	10.06	6.46%	4.45%	-16.46%	69.94%
Sector *	63 Neutral	$12.86B	9.19	9.16%	4.78%	16.31%	-8.97%
KMPR	59 Neutral	$3.70B	11.77	12.01%	2.16%	-6.08%	―

* Financial Sector Average

Performance Comparison

GBLI

Global Indemnity

28.99

-0.53

-1.80%

RLI

72.43

2.81

4.04%

SIGI

Selective Insurance Group

82.37

-21.25

-20.51%

THG

Hanover Insurance

150.66

20.67

15.90%

KMPR

Kemper

56.39

-0.07

-0.12%

WRB

W. R. Berkley Corporation

64.28

7.78

13.77%

Global Indemnity Earnings Call Summary

Earnings Call Date: Mar 11, 2025 | % Change Since: -9.42% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Positive

The earnings call presented a generally positive outlook with strong growth in key segments, improved net income, and successful technology upgrades. However, significant wildfire losses and regulatory challenges in California present ongoing issues.

Highlights

Strong Insurance Revenue Growth

Insurance revenue momentum in the Penn America segment saw a 12% increase in gross premium in 2024, driven by a 17% growth in Insurtech and 12% growth in the largest division, wholesale commercial.

Improved Underwriting Results

The full-year underwriting result for the Penn America segment was 94.4%, an improvement from 95.2% in 2023, with total catastrophe losses down roughly 26% from the previous year.

Increased Net Income

Net income increased to $43.2 million in 2024 from $25.4 million in 2023, with an 8.1% return to shareholders including dividends.

Reinsurance Segment Expansion

The assumed reinsurance operation finished up 83% in 2024, with expectations for continued growth in the coming years.

Successful Technology Transformation

The transition to the cloud is above 75% completed, with new capabilities added to improve policy processing and service, which is expected to enhance efficiency and underwriting quality.

Lowlights

Significant Los Angeles Wildfire Losses

The company experienced $15 million in catastrophe losses from the recent Los Angeles wildfires, exceeding previous model estimates and highlighting challenges in managing wildfire exposure.

Expense Ratio Challenges

Internal expenses remain slightly higher than long-term targets with a 2024 expense ratio of 38.1%, although it is starting to trend downward.

California Rate Increase Stagnation

Outstanding rate increases for California wildfire coverage have stalled in the regulatory environment, complicating the company's ability to adjust pricing to match risk.

Company Guidance

During the Global Indemnity Group's 2024 earnings call, several key metrics highlighted the company's financial and operational performance. The Penn America segment achieved a 12% increase in gross premiums, driven by a 17% growth in Insurtech and a 12% growth in wholesale commercial. The assumed reinsurance operation saw an 83% increase in its second year. The full-year underwriting result for the Penn America segment improved to 94.4%, compared to 95.2% in 2023, with catastrophe losses down 26% from the previous year. Net income rose to $43.2 million from $25.4 million in 2023, aided by a 13% increase in investment income. The consolidated combined ratio improved from 97.3% in 2023 to 95.4% in 2024. The company maintained a low duration fixed income portfolio, with a current book yield of 4.4%, and plans to increase the duration to 1.25 years by March 2025. Discretionary capital increased to $255 million, supporting future growth initiatives. The ongoing technology transformation reached 75% cloud migration, enhancing operational efficiency and setting a foundation for future expansion.

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.