Global Indemnity Group, LLC, a provider of specialty property and casualty insurance coverages, has suspended the exploration of the sale or merger of Penn-America, Global Indemnity’s insurance group, and Global Indemnity itself at this time.
Saul Fox, Global Indemnity’s Chairman, stated: “Our merger & acquisition market information that suggested we pursue a transaction at this time was not realised.”
Jay Brown, Global Indemnity’s Chief Executive Officer noted that Penn-America is well-positioned to achieve exceptional financial results for our owners.
This is due to the company’s debt-free balance sheet and strong reserve base, coupled with our enviable decades-long profitability, outstanding management team, and extensive national agent and broker network, he explained.
Global Indemnity also announced that it increased the size of its Board of Directors to seven members to accommodate the designation of Fred Karlinsky – who is Co-Chair of Greenberg Traurig, LLP’s global insurance practice – as New Designated Director.
“Fred has broad experience advising highly profitable, growth-oriented insurance industry participants,” said Saul Fox. Fred Karlinsky added: “I am thrilled to join Saul, Jay and the team in helping continue to create best of breed insurance products in this dynamic environment.”
In its announcement, Global Indemnity also stated its intention to continue share repurchases under existing $135 million authorization, of which $100 million of capacity remains.
“The timing and actual number of shares repurchased, if any, will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities. Share repurchases under the authorization may be made through a variety of methods, which may include open market purchases, privately negotiated transactions or any other method or combination of methods,” the company explained.
Adding: “The share repurchase program, however, does not obligate Global Indemnity to acquire any amount of its common shares, and the repurchase program may be suspended or discontinued at any time at the company’s discretion.”
Back in June 2023, Global Indemnity announced multiple parties were interested in the acquisition or merger with Penn-America, Global Indemnity’s insurance group, or an acquisition of or merger with Global Indemnity itself.
The company had also shared that would not make any further public comment regarding the process unless or until it has been completed or suspended.
