Global Indemnity Group (GBLI) Q4 2025 earnings summary

Executive summary

• Fourth quarter combined ratio improved to 89.3%, generating $11 million in underwriting profit, a significant improvement from 96.6% in the prior year period.

• 2025 featured a major California Wildfire loss in January and consistent improvement in underlying underwriting performance throughout the year.

• Excluding the wildfire, the current accident year combined ratio improved each quarter, reaching 92.2% for the year, down from 95.4% in 2024.

• Core business (Belmont Core) gross written premiums grew 9%, driven by strong growth in assumed reinsurance, VacantExpress, and Collectibles.

• Pretax Adjusted Operating Contribution rose 17.5% to $95.4 million, and Adjusted Return on Equity increased to 14.7% from 12.7% year-over-year.

Financial highlights

• Net income available to common shareholders was $24.9 million ($1.75 per diluted share), down from $42.8 million ($3.12 per share) in 2024, reflecting the $12.0 million after-tax wildfire impact.

• Net investment income for the quarter was $15.3 million, slightly down from $16.1 million in the prior period.

• Operating income (excluding California wildfire impact) was $40.2 million, down from $42.9 million in 2024.

• Investment income for the year was $62.7 million, up slightly from $62.4 million in 2024, with a steady average yield of 4.4%.

• Book value per share was $48.96 at year-end, compared to $49.98 a year earlier, after paying $1.40 per share in dividends.

Outlook and guidance

• Belmont Core gross premiums expected to grow 15%-20% or more in 2026, following product improvements and disciplined underwriting.

• Expense ratio expected to remain elevated through 2026, with improvement anticipated in 2027 as digital transformation completes.

• Book value per share, before dividends, targeted to increase at least 6%-7% annually over the next two years.

• Management highlighted ongoing improvement in underwriting profitability and expects continued benefits from strategic initiatives and platform build-outs.