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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2024

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from to

001-34809

Commission File Number

 

GLOBAL INDEMNITY GROUP, LLC

(Exact name of registrant as specified in its charter)

 

 

Delaware

85-2619578

(State or other jurisdiction

of incorporation or organization)

(I.R.S. Employer Identification No.)

112 S. French Street, Suite 105

Wilmington, DE 19801

(Address of principal executive office including zip code)

 

Registrant's telephone number, including area code: (302) 691-6276

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that registrant was required to submit such files.). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

 

Large accelerated filer

;

 

Accelerated filer

;

 

 

 

 

 

Non-accelerated filer

;

 

Smaller reporting company

;

 

 

 

 

 

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Class A Common Shares

GBLI

New York Stock Exchange

 

As of April 29, 2024, the registrant had outstanding 9,810,763 Class A Common Shares and 3,793,612 Class B Common Shares.

 


 

TABLE OF CONTENTS

 

 

 

 

 

Page

 

PART I – FINANCIAL INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Financial Statements:

 

3

 

 

 

 

 

 

 

Consolidated Balance Sheets
As of March 31, 2024 (Unaudited) and December 31, 2023

 

3

 

 

 

 

 

 

 

Consolidated Statements of Operations
Quarters Ended March 31, 2024 (Unaudited) and March 31, 2023 (Unaudited)

 

4

 

 

 

 

 

 

 

Consolidated Statements of Comprehensive Income
Quarters Ended March 31, 2024 (Unaudited) and March 31, 2023 (Unaudited)

 

5

 

 

 

 

 

 

 

Consolidated Statements of Changes in Shareholders’ Equity
Quarters Ended March 31, 2024 (Unaudited) and March 31, 2023 (Unaudited)

 

6

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows
Quarters Ended March 31, 2024 (Unaudited) and March 31, 2023 (Unaudited)

 

7

 

 

 

 

 

 

 

Notes to Consolidated Financial Statements (Unaudited)

 

8

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

28

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk

 

41

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

41

 

 

 

 

 

PART II – OTHER INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

43

 

 

 

 

 

Item 1A.

 

Risk Factors

 

43

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

43

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

43

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

43

 

 

 

 

 

Item 5.

 

Other Information

 

43

 

 

 

 

 

Item 6.

 

Exhibits

 

44

 

 

 

 

 

Signature

 

45

 

 

 

 


 

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

GLOBAL INDEMNITY GROUP, LLC

Consolidated Balance Sheets

(In thousands, except share amounts)

 

 

 

(Unaudited)
March 31, 2024

 

 

December 31, 2023

 

ASSETS

 

 

 

 

 

 

Fixed maturities:

 

 

 

 

 

 

Available for sale, at fair value (amortized cost: $1,250,975 and $1,322,092; net of allowance for expected credit losses of $0 at March 31, 2024 and December 31, 2023)

 

$

1,226,309

 

 

$

1,293,793

 

Equity securities, at fair value

 

 

17,045

 

 

 

16,508

 

Other invested assets

 

 

34,021

 

 

 

38,236

 

Total investments

 

 

1,277,375

 

 

 

1,348,537

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

38,857

 

 

 

38,037

 

Premium receivables, net of allowance for expected credit losses of $4,423 at March 31, 2024 and $4,796 at December 31, 2023

 

 

92,440

 

 

 

102,158

 

Reinsurance receivables, net of allowance for expected credit losses of $8,992 at March 31, 2024 and December 31, 2023

 

 

77,664

 

 

 

80,439

 

Funds held by ceding insurers

 

 

17,395

 

 

 

16,989

 

Deferred federal income taxes

 

 

33,224

 

 

 

36,802

 

Deferred acquisition costs

 

 

40,231

 

 

 

42,445

 

Intangible assets

 

 

14,368

 

 

 

14,456

 

Goodwill

 

 

4,820

 

 

 

4,820

 

Prepaid reinsurance premiums

 

 

3,229

 

 

 

4,958

 

Receivable for securities matured

 

 

101,091

 

 

 

3,858

 

Lease right of use assets

 

 

9,288

 

 

 

9,715

 

Other assets

 

 

18,260

 

 

 

26,362

 

Total assets

 

$

1,728,242

 

 

$

1,729,576

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Unpaid losses and loss adjustment expenses

 

$

853,602

 

 

$

850,599

 

Unearned premiums

 

 

176,630

 

 

 

182,852

 

Ceded balances payable

 

 

1,651

 

 

 

2,642

 

Federal income tax payable

 

 

1,600

 

 

 

1,595

 

Contingent commissions

 

 

2,598

 

 

 

5,632

 

Lease liabilities

 

 

11,910

 

 

 

12,733

 

Other liabilities

 

 

20,756

 

 

 

24,770

 

Total liabilities

 

$

1,068,747

 

 

$

1,080,823

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 10)

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

Series A cumulative fixed rate preferred shares, $1,000 par value; 100,000,000 shares authorized, shares issued and outstanding: 4,000 and 4,000 shares, respectively, liquidation preference: $1,000 per share and $1,000 per share, respectively

 

 

4,000

 

 

 

4,000

 

Common shares: no par value; 900,000,000 common shares authorized; class A common shares issued: 11,082,004 and 11,042,670 respectively; class A common shares outstanding: 9,810,763 and 9,771,429, respectively; class B common shares issued and outstanding: 3,793,612 and 3,793,612, respectively

 

 

 

 

 

 

Additional paid-in capital

 

 

456,179

 

 

 

454,791

 

Accumulated other comprehensive income (loss), net of tax

 

 

(19,995

)

 

 

(22,863

)

Retained earnings

 

 

251,474

 

 

 

244,988

 

Class A common shares in treasury, at cost: 1,271,241 and 1,271,241 shares, respectively

 

 

(32,163

)

 

 

(32,163

)

Total shareholders’ equity

 

 

659,495

 

 

 

648,753

 

Total liabilities and shareholders’ equity

 

$

1,728,242

 

 

$

1,729,576

 

 

See accompanying notes to consolidated financial statements.

 

3


 

GLOBAL INDEMNITY GROUP, LLC

Consolidated Statements of Operations

(In thousands, except shares and per share data)

 

 

 

(Unaudited)
Quarters Ended March 31,

 

 

 

2024

 

 

2023

 

Revenues:

 

 

 

 

 

 

Gross written premiums

 

$

93,488

 

 

$

122,985

 

Ceded written premiums

 

 

(1,403

)

 

 

(7,124

)

Net written premiums

 

 

92,085

 

 

 

115,861

 

Change in net unearned premiums

 

 

4,494

 

 

 

24,211

 

Net earned premiums

 

 

96,579

 

 

 

140,072

 

Net investment income

 

 

14,520

 

 

 

12,008

 

Net realized investment gains (losses)

 

 

847

 

 

 

(1,520

)

Other income

 

 

345

 

 

 

354

 

Total revenues

 

 

112,291

 

 

 

150,914

 

 

 

 

 

 

 

 

Losses and Expenses:

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

53,384

 

 

 

88,001

 

Acquisition costs and other underwriting expenses

 

 

38,269

 

 

 

53,478

 

Corporate and other operating expenses

 

 

6,373

 

 

 

6,368

 

Income before income taxes

 

 

14,265

 

 

 

3,067

 

Income tax expense

 

 

2,899

 

 

 

573

 

Net income

 

$

11,366

 

 

$

2,494

 

Less: preferred stock distributions

 

 

110

 

 

 

110

 

Net income available to common shareholders

 

$

11,256

 

 

$

2,384

 

 

 

 

 

 

 

 

Per share data:

 

 

 

 

 

 

Net income available to common shareholders

 

 

 

 

 

 

Basic

 

$

0.83

 

 

$

0.17

 

Diluted

 

$

0.82

 

 

$

0.17

 

Weighted-average number of shares outstanding

 

 

 

 

 

 

Basic

 

 

13,579,210

 

 

 

13,670,732

 

Diluted

 

 

13,687,412

 

 

 

13,929,146

 

Cash distributions declared per common share

 

$

0.35

 

 

$

0.25

 

 

 

See accompanying notes to consolidated financial statements.

 

4


 

GLOBAL INDEMNITY GROUP, LLC

Consolidated Statements of Comprehensive Income

(In thousands)

 

 

 

(Unaudited)
Quarters Ended March 31,

 

 

 

2024

 

 

2023

 

Net income

 

$

11,366

 

 

$

2,494

 

 

 

 

 

 

 

 

Other comprehensive income, net of tax:

 

 

 

 

 

 

Unrealized holding gains

 

 

2,914

 

 

 

8,157

 

Reclassification adjustment for losses included in net income

 

 

22

 

 

 

487

 

Unrealized foreign currency translation losses

 

 

(68

)

 

 

(201

)

Other comprehensive income, net of tax

 

 

2,868

 

 

 

8,443

 

 

 

 

 

 

 

 

Comprehensive income, net of tax

 

$

14,234

 

 

$

10,937

 

 

See accompanying notes to consolidated financial statements.

 

5


 

GLOBAL INDEMNITY GROUP, LLC

 

Consolidated Statements of Changes in Shareholders’ Equity

(In thousands, except share amounts)

 

 

 

(Unaudited)
Quarters Ended March 31,

 

 

 

2024

 

 

2023

 

Number of Series A Cumulative Fixed Rate Preferred Shares

 

 

 

 

 

 

Number at beginning and end of period

 

 

4,000

 

 

 

4,000

 

Number of class A common shares issued:

 

 

 

 

 

 

Number at beginning of period

 

 

11,042,670

 

 

 

10,876,041

 

Common shares issued under share incentive plans, net of forfeitures

 

 

13,889

 

 

 

25,913

 

Common shares issued to directors

 

 

25,445

 

 

 

26,426

 

Number at end of period

 

 

11,082,004

 

 

 

10,928,380

 

Number of class B common shares issued:

 

 

 

 

 

 

Number at beginning and end of period

 

 

3,793,612

 

 

 

3,793,612

 

Par value of Series A Cumulative Fixed Rate Preferred Shares

 

 

 

 

 

 

Balance at beginning and end of period

 

$

4,000

 

 

$

4,000

 

Additional paid-in capital:

 

 

 

 

 

 

Balance at beginning of period

 

$

454,791

 

 

$

451,305

 

Share compensation plans

 

 

1,388

 

 

 

1,080

 

Balance at end of period

 

$

456,179

 

 

$

452,385

 

Accumulated other comprehensive income (loss), net of deferred income tax:

 

 

 

 

 

 

Balance at beginning of period

 

$

(22,863

)

 

$

(43,058

)

Other comprehensive income:

 

 

 

 

 

 

Change in unrealized holding gains

 

 

2,936

 

 

 

8,644

 

Unrealized foreign currency translation losses

 

 

(68

)

 

 

(201

)

Other comprehensive income

 

 

2,868

 

 

 

8,443

 

Balance at end of period

 

$

(19,995

)

 

$

(34,615

)

Retained earnings:

 

 

 

 

 

 

Balance at beginning of period

 

$

244,988

 

 

$

233,468

 

Net income

 

 

11,366

 

 

 

2,494

 

Preferred share distributions

 

 

(110

)

 

 

(110

)

Distributions to shareholders ($0.35 and $0.25 per share per quarter in 2024 and 2023, respectively)

 

 

(4,770

)

 

 

(3,346

)

Balance at end of period

 

$

251,474

 

 

$

232,506

 

Number of treasury shares:

 

 

 

 

 

 

Number at beginning of period

 

 

1,271,241

 

 

 

802,381

 

Class A common shares purchased

 

 

 

 

 

253,302

 

Number at end of period

 

 

1,271,241

 

 

 

1,055,683

 

Treasury shares, at cost:

 

 

 

 

 

 

Balance at beginning of period

 

$

(32,163

)

 

$

(19,486

)

Class A common shares purchased, at cost

 

 

 

 

 

(6,552

)

Balance at end of period

 

$

(32,163

)

 

$

(26,038

)

Total shareholders’ equity

 

$

659,495

 

 

$

628,238

 

 

See accompanying notes to consolidated financial statements.

 

6


 

GLOBAL INDEMNITY GROUP, LLC

Consolidated Statements of Cash Flows

(In thousands)

 

 

 

(Unaudited)
Quarters Ended March 31,

 

 

 

2024

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

11,366

 

 

$

2,494

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Amortization and depreciation

 

 

1,305

 

 

 

1,687

 

Restricted stock and stock option expense

 

 

1,388

 

 

 

1,080

 

Deferred federal income taxes

 

 

2,899

 

 

 

573

 

Amortization of bond premium and discount, net

 

 

(4,258

)

 

 

(547

)

Net realized investment losses (gains)

 

 

(847

)

 

 

1,520

 

Loss (income) from equity method investments, net of distributions

 

 

(390

)

 

 

82

 

Changes in:

 

 

 

 

 

 

Premium receivables, net

 

 

9,718

 

 

 

14,119

 

Reinsurance receivables, net

 

 

2,775

 

 

 

(1,051

)

Funds held by ceding insurers

 

 

(492

)

 

 

1,598

 

Unpaid losses and loss adjustment expenses

 

 

3,003

 

 

 

25,116

 

Unearned premiums

 

 

(6,222

)

 

 

(27,408

)

Ceded balances payable

 

 

(991

)

 

 

(11,244

)

Other assets and liabilities

 

 

2,508

 

 

 

(7,386

)

Contingent commissions

 

 

(3,034

)

 

 

(5,044

)

Federal income tax payable

 

 

5

 

 

 

 

Deferred acquisition costs

 

 

2,214

 

 

 

6,540

 

Prepaid reinsurance premiums

 

 

1,729

 

 

 

3,197

 

Net cash provided by operating activities

 

 

22,676

 

 

 

5,326

 

Cash flows from investing activities:

 

 

 

 

 

 

Proceeds from sale of fixed maturities

 

 

20,759

 

 

 

44,381

 

Proceeds from maturity of fixed maturities

 

 

125,566

 

 

 

17,515

 

Proceeds from maturity of preferred stock

 

 

334

 

 

 

270

 

Proceeds from other invested assets

 

 

4,604

 

 

 

425

 

Purchases of fixed maturities

 

 

(168,208

)

 

 

(60,426

)

Purchases of equity securities

 

 

 

 

 

(19

)

Net cash provided by (used for) investing activities

 

 

(16,945

)

 

 

2,146

 

Cash flows from financing activities:

 

 

 

 

 

 

Distributions paid to common shareholders

 

 

(4,801

)

 

 

(3,919

)

Distributions paid to preferred shareholders

 

 

(110

)

 

 

(110

)

Purchases of class A common shares

 

 

 

 

 

(6,552

)

Net cash used for financing activities

 

 

(4,911

)

 

 

(10,581

)

Net change in cash and cash equivalents

 

 

820

 

 

 

(3,109

)

Cash and cash equivalents at beginning of period

 

 

38,037

 

 

 

38,846

 

Cash and cash equivalents at end of period

 

$

38,857

 

 

$

35,737

 

 

See accompanying notes to consolidated financial statements.

 

7


 

1.
Principles of Consolidation and Basis of Presentation

 

Global Indemnity Group, LLC (“Global Indemnity”, "GBLI", or “the Company”), a Delaware limited liability company formed on June 23, 2020, replaced Global Indemnity Limited, incorporated in the Cayman Islands as an exempted company with limited liability, as the ultimate parent company of the Global Indemnity group of companies as a result of a redomestication transaction completed on August 28, 2020. Global Indemnity Group, LLC’s class A common shares are publicly traded on the New York Stock Exchange under the ticker symbol GBLI. Global Indemnity Group, LLC’s predecessors have been publicly traded since 2003.

 

The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters ended March 31, 2024 and 2023 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2023 Annual Report on Form 10-K.

 

The consolidated financial statements include the accounts of Global Indemnity Group, LLC and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

 

2.
Restructuring

The Company restructured its insurance operations to strengthen its market presence and enhance its focus on GBLI’s core products. As a result, the Company exited its four brokerage divisions: Professional Liability, Excess Casualty, Environmental, and Middle Market Property. The Company ceased writing new business and non-renewed existing policies for these four divisions. The restructuring plan, which was initiated in the fourth quarter of 2022, was completed in the first quarter of 2023.

 

In connection with the restructuring plan, the Company incurred restructuring costs of $3.4 million in 2022 and $2.0 million in 2023 for total restructuring costs of $5.4 million. No additional restructuring costs were incurred during the quarter ended March 31, 2024. The liability related to the restructuring plan was less than $0.1 million at December 31, 2023. This liability was paid during the quarter ended March 31, 2024.

 

 

8


 

3.
Investments

 

The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of March 31, 2024 and December 31, 2023:

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Allowance for Expected Credit Losses

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair Value

 

As of March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

547,350

 

 

$

 

 

$

36

 

 

$

(2,843

)

 

$

544,543

 

Obligations of states and political subdivisions

 

 

24,280

 

 

 

 

 

 

 

 

 

(1,188

)

 

 

23,092

 

Mortgage-backed securities

 

 

61,200

 

 

 

 

 

 

486

 

 

 

(4,144

)

 

 

57,542

 

Asset-backed securities

 

 

203,449

 

 

 

 

 

 

687

 

 

 

(4,441

)

 

 

199,695

 

Commercial mortgage-backed securities

 

 

82,027

 

 

 

 

 

 

15

 

 

 

(4,271

)

 

 

77,771

 

Corporate bonds

 

 

230,387

 

 

 

 

 

 

168

 

 

 

(5,891

)

 

 

224,664

 

Foreign corporate bonds

 

 

102,282

 

 

 

 

 

 

45

 

 

 

(3,325

)

 

 

99,002

 

Total fixed maturities

 

$

1,250,975

 

 

$

 

 

$

1,437

 

 

$

(26,103

)

 

$

1,226,309

 

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Allowance for Expected Credit Losses

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair Value

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

497,099

 

 

$

 

 

$

515

 

 

$

(3,391

)

 

$

494,223

 

Obligations of states and political subdivisions

 

 

27,326

 

 

 

 

 

 

 

 

 

(1,176

)

 

 

26,150

 

Mortgage-backed securities

 

 

63,173

 

 

 

 

 

 

229

 

 

 

(4,475

)

 

 

58,927

 

Asset-backed securities

 

 

207,375

 

 

 

 

 

 

668

 

 

 

(5,091

)

 

 

202,952

 

Commercial mortgage-backed securities

 

 

84,062

 

 

 

 

 

 

12

 

 

 

(4,994

)

 

 

79,080

 

Corporate bonds

 

 

298,526

 

 

 

 

 

 

116

 

 

 

(6,929

)

 

 

291,713

 

Foreign corporate bonds

 

 

144,531

 

 

 

 

 

 

40

 

 

 

(3,823

)

 

 

140,748

 

Total fixed maturities

 

$

1,322,092

 

 

$

 

 

$

1,580

 

 

$

(29,879

)

 

$

1,293,793

 

 

As of March 31, 2024 and December 31, 2023, the Company’s investments in equity securities consist of preferred stock in the amounts of $17.0 million and $16.5 million, respectively.

Excluding U.S. treasuries and limited partnerships, the Company did not hold any debt or equity investments in a single issuer in excess of 2.0% and 2.1% of shareholders' equity at March 31, 2024 and December 31, 2023, respectively.

 

The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at March 31, 2024, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Estimated
Fair Value

 

Due in one year or less

 

$

632,837

 

 

$

630,760

 

Due in one year through five years

 

 

247,306

 

 

 

238,850

 

Due in five years through ten years

 

 

12,694

 

 

 

11,330

 

Due after ten years

 

 

11,462

 

 

 

10,361

 

Mortgage-backed securities

 

 

61,200

 

 

 

57,542

 

Asset-backed securities

 

 

203,449

 

 

 

199,695

 

Commercial mortgage-backed securities

 

 

82,027

 

 

 

77,771

 

Total

 

$

1,250,975

 

 

$

1,226,309

 

 

 

9


 

The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of March 31, 2024. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 4.

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

Total

 

(Dollars in thousands)

 

Fair Value

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

Gross
Unrealized
Losses

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

301,942

 

 

$

(816

)

 

$

148,120

 

 

$

(2,027

)

 

$

450,062

 

 

$

(2,843

)

Obligations of states and political subdivisions

 

 

 

 

 

 

 

 

20,092

 

 

 

(1,188

)

 

 

20,092

 

 

 

(1,188

)

Mortgage-backed securities

 

 

5,770

 

 

 

(67

)

 

 

37,528

 

 

 

(4,077

)

 

 

43,298

 

 

 

(4,144

)

Asset-backed securities

 

 

46,385

 

 

 

(474

)

 

 

84,010

 

 

 

(3,967

)

 

 

130,395

 

 

 

(4,441

)

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

75,207

 

 

 

(4,271

)

 

 

75,207

 

 

 

(4,271

)

Corporate bonds

 

 

23,798

 

 

 

(45

)

 

 

150,118

 

 

 

(5,846

)

 

 

173,916

 

 

 

(5,891

)

Foreign corporate bonds

 

 

4,702

 

 

 

(6

)

 

 

81,790

 

 

 

(3,319

)

 

 

86,492

 

 

 

(3,325

)

Total fixed maturities

 

$

382,597

 

 

$

(1,408

)

 

$

596,865

 

 

$

(24,695

)

 

$

979,462

 

 

$

(26,103

)

 

The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2023. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 4.

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

Total

 

(Dollars in thousands)

 

Fair Value

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

Gross
Unrealized
Losses

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

55,447

 

 

$

(342

)

 

$

239,254

 

 

$

(3,049

)

 

$

294,701

 

 

$

(3,391

)

Obligations of states and political subdivisions

 

 

 

 

 

 

 

 

26,150

 

 

 

(1,176

)

 

 

26,150

 

 

 

(1,176

)

Mortgage-backed securities

 

 

12,432

 

 

 

(406

)

 

 

39,734

 

 

 

(4,069

)

 

 

52,166

 

 

 

(4,475

)

Asset-backed securities

 

 

38,828

 

 

 

(469

)

 

 

108,947

 

 

 

(4,622

)

 

 

147,775

 

 

 

(5,091

)

Commercial mortgage-backed securities