Property and casualty insurer Global Indemnity has reported a net loss of $21.2 million for 2020, compared with net income of $70.0 million in 2019.
Underwriting income remained positive at $17.9 million, although this was still significantly down on the $43.3 million that Global Indemnity reported in 2019.
The company attributed this dip in performance to an increase in the frequency and severity of catastrophes.
As a result, its combined ratio deteriorated by 5.0 percentage points year-on-year from 92.2% to 97.2%.
This was due to a corresponding 6.7 point slide in the loss ratio, which moved from 52.5% to 59.2%, partially offset by a 1.7 point improvement in the expense ratio, which went from 39.7% to 38.0%.
Gross written premiums for the year similarly decreased 4.8% to $606.6 million, including a 31.3% decrease in reinsurance premiums, which fell from $88.3 million in 2019 to $60.7 million in 2020.
Global Indemnity said the decrease in reinsurance premiums was due to he non-renewal of its property catastrophe treaties partially offset by the growth of a casualty treaty entered into during 2019.
Specialty property premiums likewise fell 15.4% to $138.4 million due to a continued reduction of catastrophe exposed business, and farm, ranch and stable premiums slid 2.4% to $85.6 million on the same basis.
In contrast, commercial specialty gross written premiums increased by 8.3% to $321.9 million driven by organic growth in the Global Indemnity’s excess and surplus lines business from existing agents as well as increased pricing, and several new programs.
Turning to investment income, the company reported $28.4 million in 2020 compared to $42.1 million in 2019, as alternative investments performed poorly in the early part of the year and book yields on the fixed income portfolio declined.
Global Indemnity also recorded realized losses of $14.7 million related to derivatives and sales of equity securities in early 2020 partly offset by fixed income gains compared to $35.3 million in 2019.
