Global Indemnity Group, LLC Q1 FY2026 earnings call

• Underlying insurance operating trends stayed very strong with accident quarter combined ratio 94.9% and underwriting profit $5.5 million, in line with past 12 quarters except California wildfire a year ago. - Investment portfolio is very defensive with extremely short duration (about one year) and high - quality fixed income holdings. - ENS market has drop in available business, wholesale commercial premiums declined, but month - over - month written premium comparisons improved. - Kaleidoscope technology platform: Core cloud - based full cycle policy administration platform development nearly complete, shifting to bring wholesale commercial, vacant, and collectibles onto it, expecting existing direct product groups integrated and operating by year end. - Satisfied with solid underlying profitability driven by excellent loss results, though expenses are above long - term targets.

Accident quarter combined ratio was 94.9%, producing an underwriting profit of $5.5 million. Short - duration bond portfolio generated $14.5 million of net investment income, with a short - term market value loss of $2.3 million from a small investment partnership, resulting in total net investment income of $12.2 million. Gross written premiums was $96.5 million compared to $98.7 million in 2025. Wholesale commercial business (Pet America) was down 5% in the first quarter. Collectibles was up 13%, Vacuum Express was up 5%, Ballen Rees assumed gross written premiums grew 3% to $11.2 million, and Specialty Products was up 2% overall and up 21% excluding terminated products.

Based on work to improve product delivery and discipline to shed non - meeting underwriting criteria business, expect Belmont core gross premium to grow in the 15 to 20 percent range for the full year 2026.

• ENS market available business drop presents challenge for growth. - California insurance market craziness leads to drop in volume in certain sectors like vacant express. - Investment portfolio market value declines with expected recovery, but still a risk.

Q: Just a little more color on the decline in the ENS markets and the increased competition. What is the visibility on that?

A: ENS market has stopped expanding, mix and growth in different divisions affected by competition, wholesale commercial division was down in first quarter, flat in April, expected high single digits growth by year end, combination of factors expected to get into 15% - 20% growth range.

Q: Jay, how are you today? I just have a couple of quick numbers questions. Could you address, you said you had a temporary reduction, I guess, in one of your funds, and you expected it to rebound or get out of it in the fourth quarter. Could you talk a little bit about that? And the realized loss, the $2.2 million loss, Was that connected to, I think, some of the BDCs you talked about in the last quarter? And if not, what did you end up doing with your private debt exposure?

A: For the limited partnership, declined $2.3 million during the quarter and will recover in second quarter. Realized loss of $2.2 million related to equities, $1.2 million marked to market has recovered, $1 million realized. No further exposure to private debt.

Q: Just a quick follow - up on interest rates. When we saw the spike in rates with the Middle East conflict, can you guys move quickly enough to take advantage of that, or do you look for more stability, or how does that work?

A: Spike in rates wasn't substantial enough to make fundamental change in portfolio, hard to market time on single event for long - term investor.

Q: Does the slowdown in industry pricing and company premium growth change your share buyback calculus?

A: No, at least for this year, view is to utilize some excess capacity by growth during 2026, board will reevaluate stance if growth doesn't occur.

Q: There's a few parts to it, but most of that has been addressed previously. The one part which I will read is Bill Ackman's Howard Hughes is acquiring Vantage for 1.4 times book value with the investment thesis that Ackman can improve the ROE by improving the investment returns and that P&T insurers that generate a 15 to 20% return on equity should be traded near two times book value. You're currently trading near half book value with enormous excess capital invested in short - term fixed income in a softening insurance market. I appreciate conservatism in the current market environment, but is the real opportunity here following Berkshire, Fairfax, and others and focusing on investing?

A: Believe long - term well - run property casualty insurer should generate at least half of expected return, float properly invested cover other half for 15% - 20% return. At present, retuning existing business, but over next 12 - 24 months board will look at more attractive yielding investment portfolio.