Global Indemnity Plc
) reported operating earnings per share (EPS) of 35 cents for
second-quarter 2014. The results were in line with the Zacks
Consensus Estimate and higher than the year-ago quarter figure of
With this result, the company's average four-quarter beat stands
at 41.1%. Notably, shares fell 3.3% following the earnings
The company's operating net income surged 29.4% year over year
to $8.8 million. Including extraordinary items, reported net income
escalated to $33.2 million or $1.31 per share from $8.7 million or
34 cents a sharein the prior-year quarter.
Growth primarily stemmed from improved premiums in insurance
operations and higher net realized investment gains. These were
partially offset by lower investment income and
higher-than-expected operating, underwriting and loss and loss
adjusted expenses (LAE).
Behind the Headlines
Global Indemnity's total revenue soared 59% year over year to
$113.7 million. The upside was led by a 12.4% rise in net earned
premiums, bringing the figure to $66 million. Additionally, net
realized investment gains surged to $39.9 million from $2.8 million
in the year-ago quarter. However, net investment income declined
21.4% to $7.7 million, while other revenues fell to $0.16 million
from $0.25 million in the year-ago quarter.
Meanwhile, acquisition and underwriting expenses rose 11%,
operating expenses increased 28% and LAE increased 9.7%, all on a
year-over-year basis. These were partly offset by a 73% decline in
Subsequently, the combined ratio improved modestly to 99.2%
against 101.2% in the year-ago quarter, reflecting lower loss and
At the end of Jun 2014, Global Indemnity had cash and cash
equivalents of $1.46 billion, down from $1.57 billion at 2013-end.
Total assets climbed to $1.98 billion from $1.91 billion at
2013-end, whereas shareholder equity rose to $896.8 million from
$873.3 million at the end of Dec 2013.
Additionally, book value per share was $35.43 at Jun 2014-end,
up 2.3% from 2013-end.
Stocks to Consider
Along with Global Indemnity sports a Zacks Rank #1 (Strong Buy).
Other stocks in the same sector that warrant a look include Mercury
General Corp. (
), White Mountains Insurance Group Ltd. (
) and AmTrust Financial Services Inc. (
). All of these have the same Zacks Rank as Global Indemnity.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
AMTRUST FIN SVC (AFSI): Free Stock Analysis
MERCURY GENL CP (MCY): Free Stock Analysis
GLOBAL INDEMNTY (GBLI): Get Free Report
WHITE MTN INS (WTM): Free Stock Analysis Report
To read this article on Zacks.com click here.