Property and casualty insurer Global Indemnity has reported net income available to shareholders of $9.2 million for the second quarter of 2023, compared to net loss available to shareholders of $12.3 million for the corresponding period in 2022.
The insurer renewed its property catastrophe excess of loss reinsurance treaty on June 1, 2023 at a cost reduction of 49% compared to the prior year.
This decline in the insurer’s cost of reinsurance is due largely to its reduction in its probable maximum loss from natural catastrophes of approximately 75% over the last 5 years and by 40% over the past year, which allowed less limit to be purchased, and increasing retention from $15 million to $25 million.
It also reported net income available to shareholders of $11.6 million the first half 2023, compared to net loss available to shareholders of $27.2 million for the corresponding period in 2022.
The company generated adjusted operating income of $6.9 million during Q2, which excludes realised losses and the results of Exited Lines, compared to adjusted operating income of $4.2 million last year.
It also posted a strong consolidated combined ratio was 97.0%, consisting of a loss ratio of 60.5% and an expense ratio of 36.5%, compared with a combined ratio of 98.7% for Q2 2022.
Net investment income increased to $13.2 million for Q2’23 from $1.9 million in 2022 and increased to $25.2 million for H1’23 from $8.5 million a year earlier, primarily due to the strategies employed by the Company in April 2022 to take advantage of rising interest rates.
For reinsurance operations, gross written premiums and net written premiums both decreased by 68.1% in Q2, while gross written premiums and net written premiums both decreased 56.3% in H1’23, primarily due to the non-renewal of a casualty treaty.
And for commercial specialty gross written premiums and net written premiums decreased 9.2% and 7.8%, respectively, primarily driven by the non-renewal of a restaurant book of business as well as actions taken to improve underwriting results by nonrenewing underperforming business partially offset by increased pricing.
