Global Indemnity Group, LLC has announced that in recent days, multiple parties indicated a preliminary interest in exploring an acquisition of or merger with Penn-America, Global Indemnity’s insurance group, or an acquisition of or merger with Global Indemnity itself.
The company is responding to certain of these preliminary indications of interest, although there is no assurance that an acceptable transaction will result from such engagement yet.
The Company does not intend to make any further public comment regarding the process unless or until it has been completed or suspended.
In the “Chairman’s Letter to Shareholders” that the company released along with the 2022 Annual Report, Saul A Fox, the Chairman said, “The repositioning of the investment portfolio did not come without near-term cost, however. In 2022, the Company incurred $101 million of realized and unrealized portfolio losses in respect of its fixed-income securities, which losses overwhelmed the Company’s robust underwriting income and resulted in the Company’s 2022 bottom-line net loss of $0.85 million.
“However, the great news here is that all of the $101 million of realized and unrealized investment losses booked in 2022 are expected to be fully recovered in 2023 and 2024 due to the higher yields and the substantially shortened maturities now embedded in the Company’s repositioned investment portfolio.”
During the pendency of the foregoing, which is subject to material developments, Global Indemnity intends to continue to buy back shares pursuant to its previously announced authorization.
In addition, the Company’s Board of Directors approved an increase in the existing share buyback authorization amount to $135 million.
The timing and actual number of shares repurchased, if any, will depend on various factors, including price, general business and market conditions, and alternative investment opportunities.
Share repurchases under the authorization may be made through various methods, including open market purchases, privately negotiated transactions or any other way or combination of methods.
The share repurchase program 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.