Global Indemnity Group — Q3 2026 Earnings Summary

Financial Performance:

• Net income for the three months ended September 30, 2026, was $8.9 million ($0.61 per share), down from $12.5 million ($0.86 per share) in 2025.
• Net income for the nine months ended September 30, 2026, was $24.2 million ($1.65 per share), up from $18.9 million ($1.30 per share) in 2025.
• Operating income for the nine months ended September 30, 2026, was $26.4 million ($1.81 per share), compared to $21.8 million ($1.51 per share) in 2025.
• Current accident year underwriting income for the nine months ended September 30, 2026, was $16.9 million, an increase from $5.4 million in 2025.
• Current accident year combined ratio for the nine months ended September 30, 2026, was 94.7%, compared to 98.7% in 2025.
• Current accident year loss ratio for the nine months ended September 30, 2026, was 53.8%, compared to 58.8% in 2025.
• Pretax Adjusted Operating Contribution for the nine months ended September 30, 2026, was $60.0 million, down from $68.6 million in 2025.
• Adjusted Return on Equity for the nine months ended September 30, 2026, was 12.6%, down from 14.5% in 2025.
• Net investment income for the nine months ended September 30, 2026, was $43.1 million, down from $47.4 million in 2025.
• Annualized investment return for the nine months ended September 30, 2026, was 2.3%, down from 4.8% in 2025.
• Common shareholders' equity was $700.9 million at September 30, 2026, compared to $702.6 million at December 31, 2025.
• Book value per share was $47.87 at September 30, 2026, a 2.2% decline from $48.96 at December 31, 2025.
• Dividends paid during the nine months ended September 30, 2026, totaled $15.4 million.

Guidance and Future Outlook:

• CEO Jessica E. Buss stated she set expansion plans in motion for 2027 for Katalyx's distribution.
• Management expects Katalyx to expand its distribution substantially over the next five years.
• The company aims to put Kaleidoscope to work for wholesalers, agents, and underwriters to improve operating efficiency at Belmont.
• Management targets sustained growth in premiums, earnings, and book value per share at rates far beyond anything GBLI achieved since its founding.

Business Segments and Product Lines:

• Belmont Core gross written premiums for the nine months ended September 30, 2026, were $316.4 million, flat compared to $316.7 million in 2025.
• Excluding terminated business, Belmont Core gross written premiums grew 1.5% for the nine months ended September 30, 2026.
• Wholesale Commercial gross written premiums for the nine months ended September 30, 2026, were $193.7 million, down 4% compared to $201.9 million in 2025.
• Assumed E&S Reinsurance gross written premiums for the nine months ended September 30, 2026, were $48.2 million, up 25% compared to $38.6 million in 2025, driven by new treaties.
• Vacant Express gross written premiums for the nine months ended September 30, 2026, were $36.0 million, up 4% compared to $34.6 million in 2025.
• Collectibles gross written premiums for the nine months ended September 30, 2026, were $15.2 million, up 13% compared to $13.4 million in 2025.
• Specialty Products gross written premiums for the nine months ended September 30, 2026, were $23.3 million, down 17.6% compared to $28.2 million in 2025, reflecting run-off of terminated products.
• Agency and Insurance Services segment income for the nine months ended September 30, 2026, was $1.0 million, down from $5.3 million in 2025.
• Belmont Core segment income for the nine months ended September 30, 2026, was $12.5 million, up from a loss of $2.3 million in 2025.
• Belmont Non-Core segment income for the nine months ended September 30, 2026, was $1.0 million, down from $2.3 million in 2025.

Market and Competitive Landscape:

• The specialty market is softening, with competitors cutting property rates.
• Overall rates decreased 3% in the third quarter and 1% for the nine months ended September 30, 2026.
• Many leading E&S wholesalers are eager to work with Katalyx and its Kaleidoscope technology.
• The company maintained pricing and return standards amid competitive market conditions, particularly in the property market.
• AM Best affirmed Global Indemnity Group's "A" (Excellent) rating for its U.S. insurance subsidiaries in August 2026.

Risks and Challenges:

• The third quarter underwriting results were softer due to holding to underwriting standards while competitors cut property rates.
• Net investment income declined due to lower limited partnership returns and lower average yields on the fixed income portfolio resulting from lower U.S. Treasury rates.
• Unrealized losses in the fixed income portfolio of $12.7 million (net of tax) contributed to the decline in shareholders' equity.
• The company held to its underwriting standards, which impacted premium growth in certain segments like Wholesale Commercial and Specialty Products.

Management Commentary and Tone:

• CEO Jessica E. Buss, who joined the company the week of the report, stated she studied the company closely before accepting the role and knows exactly where the company stands.
• Management expressed confidence that under her leadership, Katalyx will expand distribution substantially over the next five years.
• The CEO emphasized the company's 23 years of top-quartile loss ratios, industry-leading capital reserves, no debt, and extremely modest operating leverage.
• Management acknowledged the softening specialty market but highlighted the company's readiness to meet it with strong capital and agency relationships.

Other Key Points:

• The company has returned $664.9 million to shareholders since its 2003 initial public offering, including $522.2 million in share repurchases and $142.7 million in dividends and distributions.
• In September 2026, the company began lengthening duration by redeploying U.S. Treasuries into higher-yielding securities, lifting the fixed income portfolio book yield to 4.8% and duration to 1.5 years.
• Average credit quality of the fixed income portfolio remains AA-.
• The 2025 nine-month results included $15.8 million of losses from California Wildfires, which were excluded from current accident year underwriting income and Adjusted Operating Contribution calculations.
• The company operates through three groups: Katalyx Holdings LLC (agencies and services), Belmont Holdings GX, Inc. (five statutory insurance carriers), and Kaleidoscope Insurance Technologies, Inc. (proprietary AI platform).