About Global Indemnity Group, LLC

Global Indemnity Group, LLC provides its insurance products across a distribution network that includes wholesale general agents, wholesale brokers, and retailers. The company’s insurance subsidiaries are licensed in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Business Segments Segments The company operates through two segments: Commercial Specialty and Reinsurance Operations. Commercial Specialty This segment distributes specialty property and casualty insurance products and operates predominantly in the excess and surplus lines, or non-admitted, marketplace. The excess and surplus lines market differs significantly from the standard property and casualty insurance market. In the standard property and casualty insurance market, insurance rates and forms are highly regulated; products and coverage are largely uniform and have relatively predictable exposures. In the standard market, policies must be written by insurance companies that are admitted to transact business in the state in which the policy is issued. As a result, in the standard property and casualty insurance market, insurance companies tend to compete for customers primarily on the basis of price, coverage, value-added service, and financial strength. In contrast, the excess and surplus lines market provides coverage for businesses that often do not fit the underwriting criteria of an insurance company operating in the standard markets due to their relatively greater unpredictable loss patterns and unique niches of exposure requiring rate and policy form flexibility. Without the excess and surplus lines market, certain businesses would have to self-insure their exposures, or seek coverage outside the U.S. market. A portion of the company’s Commercial Specialty segment is written on a specialty admitted basis. When writing on a specialty admitted basis, the company’s focus for this portion of the business is on writing insurance for insureds that engage in similar but often highly specialized types of activities. The specialty admitted market is subject to greater state regulation than the surplus lines market, particularly with regards to rate and form filing requirements and the ability to enter and exit lines of business. Insureds purchasing coverage from specialty admitted insurance companies do so because the insurance product is not otherwise available from standard market insurers. Yet, for regulatory or marketing reasons, these insureds require products that are written by an admitted insurance company. Commercial Specialty’s insurance products target specific, defined groups of insureds with customized coverage to meet their needs. The primary business divisions within the Commercial Specialty segment include: Wholesale Commercial distributes property and general liability products for small commercial businesses through a select network of wholesale general agents with specific binding authority. Examples of small businesses served are apartments, bars, contractors, other small retail operations, and niche businesses. InsurTech products include Collectibles.com, digital direct-to-consumer insurance coverage for owners of collections, and VacantExpress, insurance coverage for owners of properties under construction, under renovation or vacant, distributed through wholesale general agents and retail agents. These business divisions comprise the Commercial Specialty segment and are not considered individual business segments because each product has similar economic characteristics, distribution, and coverage. The company’s Commercial Specialty segment provides property, casualty, and professional liability products utilizing customized guidelines, rates, and forms tailored to the company’s risk and underwriting philosophy. For 2022, surplus lines business accounted for approximately 90% of the business written while specialty admitted business accounted for the remaining 10%. Reinsurance Operations This segment provides reinsurance and insurance solutions through brokers and primary writers, including insurance and reinsurance companies. Prior to the redomestication transaction, the company’s Reinsurance Operations consisted solely of the operations of its Bermuda-based wholly-owned subsidiary, Global Indemnity Reinsurance. As part of the redomestication transactions, Global Indemnity Reinsurance was merged with and into Penn-Patriot Insurance Company (Penn-Patriot), with Penn-Patriot surviving, resulting in the assumption of Global Indemnity Reinsurance's business by the Global Indemnity group of companies’ existing U.S. insurance company subsidiaries. Exited Lines The company’s Exited Lines segment represents lines of business that are no longer being written or are in runoff, including specialty personal lines and property and casualty products, such as manufactured home, dwelling, motorcycle, watercraft, certain homeowners business, property brokerage, property and catastrophe reinsurance treaties, several smaller casualty lines, and the farm, ranch and equine business. The renewal rights related to the company’s manufactured and dwelling homes business, which were sold during the fourth quarter of 2021, and the renewal rights related to the company's Farm, Ranch & Stable business, which were sold during the third quarter of 2022, are included in Exited Lines. Products and Product Development The company markets its property and casualty insurance products through the Commercial Specialty and Reinsurance Operations segments. The company’s Commercial Specialty segment operates predominantly in the excess and surplus lines marketplace. Companies within the company’s Insurance Operations are licensed to write on an admitted basis in all 50 U.S. States, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, while others are eligible to write on a surplus lines (non-admitted) basis. This provides the company with flexibility in designing products and in determining rates to meet emerging risks and discontinuities in the marketplace. The company’s Reinsurance Operations offers third-party treaty reinsurance for casualty insurance and reinsurance companies, as well as professional liability products to companies. Marketing and Distribution The company provides its insurance products across a full distribution network that includes wholesale general agents, wholesale brokers, and retailers. The company’s Commercial Specialty products are distributed through approximately 360 wholesale general agent and wholesale broker offices. One agent provided 10.3% of Commercial Specialty’s gross written premiums. The company's assumed premiums on one treaty accounted for 93.7% of the Reinsurance Operations’ 2022 gross written premiums. This same treaty accounted for 10% or more of the company’s consolidated revenues for the year ended December 31, 2022. To support growth in the company's Commercial Specialty segment and provide capital for business initiatives, including share repurchases, a decision was made to reduce writings in its Reinsurance Operations. The company anticipates that its Reinsurance Operations will comprise a smaller percentage of the company's overall business prospectively. The company’s primary distribution strategy is to maintain strong relationships with high-quality wholesale general agent and wholesale broker offices. Divestitures On August 8, 2022, the company sold the renewal rights related to its Farm, Ranch & Stable business for policies written on or after August 8, 2022 to Everett Cash Mutual Insurance Company. Competition In particular, the company competes against insurance subsidiaries of the groups in the specialty insurance market, insurance companies, and others, including American International Group; Argo Group International Holdings, Ltd.; Ategrity Specialty Holdings LLC; Atlantic Casualty Insurance Company; Berkshire Hathaway; Canopius US Insurance, Inc.; CapSpecialty Insurance Group; Everest Re Group, Ltd.; Great American Insurance Group; Hallmark Financial Services, Inc.; HCC Insurance Holdings, Inc.; IFG Companies; James River Group Holdings; Kinsale Capital Group, Inc.; Markel Corporation; Nationwide Insurance; RLI Corporation; RSUI Group; Selective Insurance Group, Inc.; The Hartford; The Travelers Companies, Inc.; Westchester Surplus Lines Insurance Co; and W.R. Berkley Corporation. The U.S. Regulation As of December 31, 2022, the company had five subsidiaries operating as insurance companies domiciled in the United States, such as United National Insurance Company, Penn-America Insurance Company, and Penn-Star Insurance Company, which are domiciled in Pennsylvania; Diamond State Insurance Company which is domiciled in Indiana; and Penn-Patriot Insurance Company, which is domiciled in Virginia. As the parent of these insurance companies, Global Indemnity is subject to the insurance holding company laws of Pennsylvania, Indiana, and Virginia. History Global Indemnity Group, LLC, formerly known as Global Indemnity Limited, was founded in 2003. The company was incorporated in 2020.