21 February 2014 Insurance

Net income up 44 percent for Global Indemnity

Global Indemnity reported a 44 percent increase in net income in 2013 of $61.7 million compared with $34.8 million in 2012.

"We are pleased with our final results for 2013. Global Indemnity's insurance and reinsurance premium volume grew 19 percent compared to 2012 and our calendar year combined ratio improved 8.2 points to 96 percent, said Cynthia Valko, chief executive officer at Global Indemnity.

“Low catastrophes coupled with better pricing and underwriting were factors in improved year over year results. Our operating income results improved to $40.5 million for 2013 versus $29.3 million in 2012. Net income results were also enhanced by investment returns primarily driven by strong performance of the common stock portfolio. Overall, book value per share was $34.65, an increase of 7.8 percent compared to last year."

Gross premiums written and net premiums written increased by 38.1 percent and 39.7 percent in the reinsurance segment for 2013, compared with the same periods in 2012. These increases were primarily due to several new treaties written during 2013. For the three months ended December 31, 2013, gross premiums written and net premiums written decreased 72.7 percent and 69.7 percent, respectively, compared to the same periods in 2012. 2012 included a premium increase of $6.0 million related to reinsurance treaties written in 2009 and 2010 that was due following the additional losses incurred on these treaties.

For the twelve months ended December 31, 2013, gross premiums written and net premiums written in the insurance segment increased 15.2 percent and 20.2 percent, respectively, compared to the same period in 2012. Gross written premiums increased as a result of growth in small business binding authority lines as well as growth in the property brokerage, programmes and other lines. Growth was driven by new business, pricing increases, and increased agent relationships. Net written premiums increased as a result of an increase in gross premiums written and a reduction of ceded premiums written as a result of an increase in retention in property excess of loss and property catastrophe.

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