Global Indemnity Plc
) reported operating earnings per share (EPS) of 76 centsfor the
fourth quarter of 2013. The results outpaced the Zacks Consensus
Estimate of 31 cents and the year-ago figure of 18 cents.
Consequently, operating net income surged over four-folds to
$19.1 million from $4.5 million in the year-ago period.
Including extraordinary items, reported net income escalated
to $33.7 million or $1.34 per share from $4.4 million or 17 cents
a share in the prior-year quarter. Growth primarily stemmed from
improved premiums' growth in insurance operations and lower loss
and loss adjusted expenses (LAE), partially offset by lower
investment income and higher-than-expected operating and
Global Indemnity's total revenue soared 41.3% year over year
to $101 million. The upside was led by a 13.7% rise in net earned
premiums, bringing the figure to $69.6 million. Additionally, net
realized investment gains surged to $17.2 million from a loss of
$0.2 million in the year-ago quarter. However, net investment
income declined 13.6% to $17.2 million, while other revenues
improved to $5.3 million from $0.1 million in the year-ago
However, acquisition and underwriting expenses rose 13.4% over
the prior-year quarter, whereas operating expenses grew 50%,
partially offset by a 23% plunge in LAE along with 80.5% lower
interest expenses. Consequently, the combined ratio improved
significantly to 85.5% against 106.7% in the year-ago
Full-Year 2013 Highlights
For full-year 2013, Global Indemnity's operating EPS stood at
$1.61, exceeding the 2012 equivalent of $1.10. Operating net
income soared 38.2% year over year to $40.5 million. On a GAAP
basis, net income rose to an astounding $61.7 million or $2.45
per share in 2013 from $34.8 million or $1.30 per share in
Total revenue increased 8.9% year over year to $319.1 billion,
primarily driven by higher premiums and net realized investment
gains. Moreover, the combined ratio improved to 96.0% from 104.2%
in 2012, reflecting lower loss ratio.
At the end of Dec 2013, Global Indemnity held cash and cash
equivalents of $1.57 billion, up from $1.53 billion at 2012-end.
Total assets climbed to $1.91 billion from $1.90 billion at
2012-end, whereas shareholder equity rose to $873.3 million from
$806.6 million at the end of Dec 2012. Additionally, book value
per share grew 7.8% from 2012-end to $34.65 at 2013-end.
While Global Indemnity carries a Zacks Rank #3 (Hold), other
top-ranked insurers include
White Mountains Insurance Group Ltd.
OneBeacon Insurance Group Ltd.
), each carrying a Zacks Rank #1 (Strong Buy).
GLOBAL INDEMNTY (GBLI): Get Free Report
ONEBEACON INSUR (OB): Free Stock Analysis
RLI CORP (RLI): Free Stock Analysis Report
WHITE MTN INS (WTM): Free Stock Analysis
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