Income Taxes |
3 Months Ended |
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Mar. 31, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 5. Income Taxes
Global Indemnity Group, LLC is a publicly traded partnership for U.S. federal income tax purposes and meets the qualifying income exception to maintain partnership status. As a publicly traded partnership, Global Indemnity Group, LLC is generally not subject to federal income tax and most state income taxes. However, income earned by the subsidiaries of Global Indemnity Group, LLC is subject to corporate tax in the United States and certain foreign jurisdictions.
The Company conducts business in the United States where the statutory income tax rate is 21% and conducts certain functions in Ireland where the statutory income tax rate is 12.5% on trading income. The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense. The Company’s income (loss) before income taxes is derived from its U.S. subsidiaries for the quarters ended March 31, 2025 and 2024.
The Company uses the estimated annual effective tax rate method for calculating its interim tax provision. These rates are revised, if necessary, at the end of each successive interim period to reflect current estimates of the annual effective tax rates.
The effective tax rate was 21.7% for the quarter ended March 31, 2025. The effective tax rate is higher than the statutory tax rate of 21% primarily due to non-deductible executive compensation offset partially by the parent’s income being treated as a partnership for tax.
The effective tax rate was 20.3% for the quarter ended March 31, 2024. The effective tax rate is lower than the statutory tax rate of 21% primarily due to the parent’s income being treated as a partnership for tax offset partially by non-deductible executive compensation.
The Company has a net operating loss (“NOL”) carryforward and a capital loss carryforward of $14.0 million and $21.6 million, respectively, as of March 31, 2025, which begins to expire in 2038 and 2027, respectively, based on when the original carryforwards were generated. The Company’s NOL carryforward and capital loss carryforward were $20.7 million and $21.6 million, respectively, as of December 31, 2024.
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