10-Q

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

GLOBAL INDEMNITY GROUP, LLC

Consolidated Balance Sheets

(In thousands, except share amounts)


	(Unaudited) June 30, 2025			December 31, 2024
ASSETS
Fixed maturities:
Available for sale, at fair value (amortized cost: $1,341,934 and $1,394,639; net of allowance for expected credit losses of $0 at June 30, 2025 and December 31, 2024)	$	1,336,344		$	1,381,908
Equity securities, at fair value		12,569			12,284
Other invested assets		22,072			29,413
Total investments		1,370,985			1,423,605

Cash and cash equivalents		67,344			17,009
Premium receivables, net of allowance for expected credit losses of $3,371 at June 30, 2025 and $3,530 at December 31, 2024		70,433			75,088
Reinsurance receivables, net of allowance for expected credit losses of $8,992 at June 30, 2025 and December 31, 2024		67,566			66,855
Funds held by ceding insurers		24,416			30,026
Deferred income taxes		20,002			22,459
Deferred acquisition costs		43,915			41,136
Intangible assets		14,000			14,103
Goodwill		4,820			4,820
Prepaid reinsurance premiums		3,605			3,320
Receivable for securities		—			52
Income tax receivable		2,150			825
Lease right of use assets		8,779			9,295
Other assets		22,570			22,660
Total assets	$	1,720,585		$	1,731,253

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses	$	776,127		$	800,391
Unearned premiums		195,013			183,411
Reinsurance balances payable		3,051			8,181
Payable for securities		5,341			—
Contingent commissions		4,116			6,826
Lease liabilities		9,346			10,371
Other liabilities		32,303			32,924
Total liabilities	$	1,025,297		$	1,042,104

Commitments and contingencies (Note 9)		—			—

Shareholders’ equity:
Series A cumulative fixed rate preferred shares, $1,000 par value; 100,000,000 shares authorized, shares issued and outstanding: 4,000 and 4,000 shares, respectively, liquidation preference: $1,000 per share and $1,000 per share, respectively		4,000			4,000
Common shares: no par value; 900,000,000 common shares authorized; class A common shares issued: 11,790,484 and 11,202,355, respectively, (inclusive of class A common shares designated as class A-2 common shares of 550,000 and 0, respectively); class A common shares outstanding: 10,502,716 and 9,914,587, respectively (inclusive of class A common shares designated as class A-2 common shares of 550,000 and 0, respectively); class B common shares issued and outstanding: 3,793,612 and 3,793,612, respectively		—			—
Additional paid-in capital		463,816			459,578
Accumulated other comprehensive income (loss), net of tax		(4,657	)		(10,410	)
Retained earnings		264,821			268,673
Class A common shares in treasury, at cost: 1,287,768 and 1,287,768 shares, respectively		(32,692	)		(32,692	)
Total shareholders’ equity		695,288			689,149
Total liabilities and shareholders’ equity	$	1,720,585		$	1,731,253

See accompanying notes to the consolidated financial statements.

GLOBAL INDEMNITY GROUP, LLC

Consolidated Statements of Operations

(In thousands, except shares and per share data)


	(Unaudited) Quarters Ended June 30,						(Unaudited) Six Months Ended June 30,
	2025			2024			2025			2024
Revenues:
Gross written premiums	$	106,801		$	100,706		$	205,476		$	194,194
Ceded written premiums		(2,887	)		(2,955	)		(5,698	)		(4,358	)
Net written premiums		103,914			97,751			199,778			189,836
Change in net unearned premiums		(8,768	)		(4,937	)		(11,316	)		(443	)
Net earned premiums		95,146			92,814			188,462			189,393
Net investment income		14,707			15,311			29,489			29,831
Net realized investment gains		127			205			263			1,052
Other income		540			357			957			702
Total revenues		110,520			108,687			219,171			220,978

Losses and Expenses:
Net losses and loss adjustment expenses		52,948			53,662			119,686			107,046
Acquisition costs and other underwriting expenses		36,915			35,968			74,422			74,237
Corporate expenses		7,528			6,383			17,028			12,756
Income before income taxes		13,129			12,674			8,035			26,939
Income tax expense		2,785			2,581			1,680			5,480
Net income	$	10,344		$	10,093		$	6,355		$	21,459
Less: preferred stock distributions		110			110			220			220
Net income available to common shareholders	$	10,234		$	9,983		$	6,135		$	21,239

Per share data:
Net income available to common shareholders
Basic	$	0.72		$	0.73		$	0.44		$	1.56
Diluted	$	0.71		$	0.73		$	0.43		$	1.55
Weighted-average number of shares outstanding
Basic		14,274,926			13,609,618			14,072,225			13,594,414
Diluted		14,341,251			13,677,908			14,160,638			13,659,154
Cash distributions declared per common share	$	0.35		$	0.35		$	0.70		$	0.70

See accompanying notes to the consolidated financial statements.

GLOBAL INDEMNITY GROUP, LLC

Consolidated Statements of Comprehensive Income

(In thousands)


	(Unaudited) Quarters Ended June 30,				(Unaudited) Six Months Ended June 30,
	2025		2024		2025		2024
Net income	$	10,344	$	10,093	$	6,355	$	21,459

Other comprehensive income, net of tax:
Unrealized holding gains		2,100		1,887		5,671		4,801
Reclassification adjustment for losses included in net income		33		10		23		32
Unrealized foreign currency translation gains (losses)		123		47		59		(21	)
Other comprehensive income, net of tax		2,256		1,944		5,753		4,812

Comprehensive income, net of tax	$	12,600	$	12,037	$	12,108	$	26,271

See accompanying notes to the consolidated financial statements.

GLOBAL INDEMNITY GROUP, LLC

Consolidated Statements of Changes in Shareholders’ Equity

(In thousands, except share amounts)


	(Unaudited) Quarters Ended June 30,						(Unaudited) Six Months Ended June 30,
	2025			2024			2025			2024
Number of Series A Cumulative Fixed Rate Preferred Shares
Number at beginning and end of period		4,000			4,000			4,000			4,000
Number of class A common shares issued:
Number at beginning of period		11,768,844			11,082,004			11,202,355			11,042,670
Common shares issued to Fox Paine & Company, LLC, designated as class A-2 common shares		—			—			550,000			—
Common shares issued under share incentive plans, net of forfeitures		—			51,293			—			65,182
Common shares issued to directors		21,640			25,145			38,129			50,590
Number at end of period		11,790,484			11,158,442			11,790,484			11,158,442
Number of class B common shares issued:
Number at beginning and end of period		3,793,612			3,793,612			3,793,612			3,793,612
Par value of Series A Cumulative Fixed Rate Preferred Shares
Balance at beginning and end of period	$	4,000		$	4,000		$	4,000		$	4,000
Additional paid-in capital:
Balance at beginning of period	$	463,072		$	456,179		$	459,578		$	454,791
Share compensation plans		744			1,371			4,238			2,759
Balance at end of period	$	463,816		$	457,550		$	463,816		$	457,550
Accumulated other comprehensive income (loss), net of deferred income tax:
Balance at beginning of period	$	(6,913	)	$	(19,995	)	$	(10,410	)	$	(22,863	)
Other comprehensive income:
Change in unrealized holding gains		2,133			1,897			5,694			4,833
Unrealized foreign currency translation gains (losses)		123			47			59			(21	)
Other comprehensive income		2,256			1,944			5,753			4,812
Balance at end of period	$	(4,657	)	$	(18,051	)	$	(4,657	)	$	(18,051	)
Retained earnings:
Balance at beginning of period	$	259,584		$	251,474		$	268,673		$	244,988
Net income		10,344			10,093			6,355			21,459
Preferred share distributions		(110	)		(110	)		(220	)		(220	)
Distributions to shareholders ($0.35 per share per quarter in 2025 and 2024)		(4,997	)		(4,774	)		(9,987	)		(9,544	)
Balance at end of period	$	264,821		$	256,683		$	264,821		$	256,683
Number of treasury shares:
Number at beginning of period		1,287,768			1,271,241			1,287,768			1,271,241
Class A common shares purchased		—			16,527			—			16,527
Number at end of period		1,287,768			1,287,768			1,287,768			1,287,768
Treasury shares, at cost:
Balance at beginning of period	$	(32,692	)	$	(32,163	)	$	(32,692	)	$	(32,163	)
Class A common shares purchased, at cost		—			(529	)		—			(529	)
Balance at end of period	$	(32,692	)	$	(32,692	)	$	(32,692	)	$	(32,692	)
Total shareholders’ equity	$	695,288		$	667,490		$	695,288		$	667,490

See accompanying notes to the consolidated financial statements.

GLOBAL INDEMNITY GROUP, LLC

Consolidated Statements of Cash Flows

(In thousands)


	(Unaudited) Six Months Ended June 30,
	2025			2024
Cash flows from operating activities:
Net income	$	6,355		$	21,459
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation		2,834			2,659
Restricted stock and stock option expense		4,238			2,759
Deferred federal income taxes		993			5,480
Amortization of bond premium and discount, net		13,319			(11,375	)
Net realized investment gains		(263	)		(1,052	)
Loss (income) from equity method investments, net of distributions		957			(22	)
Changes in:
Premium receivables, net		4,655			21,571
Reinsurance receivables, net		(711	)		4,796
Funds held by ceding insurers		5,685			(10,152	)
Unpaid losses and loss adjustment expenses		(24,264	)		(6,393	)
Unearned premiums		11,602			(1,018	)
Reinsurance balances payable		(5,130	)		(1,694	)
Other assets and liabilities		(3,773	)		11,647
Contingent commissions		(2,710	)		(2,033	)
Income tax receivable / payable		(1,325	)		(2,494	)
Deferred acquisition costs		(2,779	)		1,336
Prepaid reinsurance premiums		(285	)		1,460
Net cash provided by operating activities		9,398			36,934
Cash flows from investing activities:
Proceeds from sale of fixed maturities		87,361			51,491
Proceeds from maturity of fixed maturities		1,232,908			346,119
Proceeds from maturity of preferred stock		—			2,934
Proceeds from other invested assets		6,385			4,548
Purchases of fixed maturities		(1,275,510	)		(422,767	)
Net cash provided by (used for) investing activities		51,144			(17,675	)
Cash flows from financing activities:
Distributions paid to common shareholders		(9,987	)		(9,816	)
Distributions paid to preferred shareholders		(220	)		(220	)
Purchases of class A common shares		—			(529	)
Net cash used for financing activities		(10,207	)		(10,565	)
Net change in cash and cash equivalents		50,335			8,694
Cash and cash equivalents at beginning of period		17,009			38,037
Cash and cash equivalents at end of period	$	67,344		$	46,731

See accompanying notes to the consolidated financial statements.

Principles of Consolidation and Basis of Presentation

Global Indemnity Group, LLC (“Global Indemnity” or “the Company”) is a Delaware limited liability company. Global Indemnity Group, LLC’s class A common shares (excluding the 550,000 class A common shares designated as class A-2 common shares) are publicly traded on the New York Stock Exchange under the ticker symbol GBLI. Global Indemnity Group, LLC’s predecessors have been publicly traded since 2003.

The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and six months ended June 30, 2025 and 2024 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s 2024 Annual Report on Form 10-K.

The consolidated financial statements include the accounts of Global Indemnity Group, LLC and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Investments

The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of June 30, 2025 and December 31, 2024:


(Dollars in thousands)	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of June 30, 2025
Fixed maturities:
U.S. treasuries	$	572,608	$	—	$	38	$	(265	)	$	572,381
Obligations of states and political subdivisions		15,923		—		—		(489	)		15,434
Mortgage-backed securities		216,275		—		1,216		(2,500	)		214,991
Asset-backed securities		158,153		—		1,141		(2,166	)		157,128
Commercial mortgage-backed securities		66,382		—		395		(1,573	)		65,204
Corporate bonds		223,657		—		898		(1,547	)		223,008
Foreign corporate bonds		88,936		—		301		(1,039	)		88,198
Total fixed maturities	$	1,341,934	$	—	$	3,989	$	(9,579	)	$	1,336,344


(Dollars in thousands)	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of December 31, 2024
Fixed maturities:
U.S. treasuries	$	875,273	$	—	$	757	$	(784	)	$	875,246
Obligations of states and political subdivisions		17,125		—		—		(790	)		16,335
Mortgage-backed securities		61,905		—		299		(3,284	)		58,920
Asset-backed securities		137,445		—		864		(2,882	)		135,427
Commercial mortgage-backed securities		68,041		—		15		(2,488	)		65,568
Corporate bonds		158,798		—		189		(2,891	)		156,096
Foreign corporate bonds		76,052		—		81		(1,817	)		74,316
Total fixed maturities	$	1,394,639	$	—	$	2,205	$	(14,936	)	$	1,381,908

As of June 30, 2025 and December 31, 2024, the Company’s investments in equity securities consist of preferred stock in the amounts of $12.6 million and $12.3 million, respectively.

Excluding U.S. treasuries and limited partnerships, the Company did not hold any debt or equity investments in a single issuer in excess of 2.0% and 1.7% of shareholders' equity at June 30, 2025 and December 31, 2024, respectively.

The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at June 30, 2025, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


(Dollars in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	619,568	$	619,117
Due in one year through five years		265,534		264,967
Due in five years through ten years		6,193		5,763
Due after ten years		9,829		9,174
Mortgage-backed securities		216,275		214,991
Asset-backed securities		158,153		157,128
Commercial mortgage-backed securities		66,382		65,204
Total	$	1,341,934	$	1,336,344

The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of June 30, 2025. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 3.


	Less than 12 months					12 months or longer					Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed maturities:
U.S. treasuries	$	219,690	$	(30	)	$	24,367	$	(235	)	$	244,057	$	(265	)
Obligations of states and political subdivisions		—		—			15,434		(489	)		15,434		(489	)
Mortgage-backed securities		15,828		(213	)		22,595		(2,287	)		38,423		(2,500	)
Asset-backed securities		26,815		(107	)		43,088		(2,059	)		69,903		(2,166	)
Commercial mortgage-backed securities		4,934		(50	)		44,422		(1,523	)		49,356		(1,573	)
Corporate bonds		4,543		(7	)		66,229		(1,540	)		70,772		(1,547	)
Foreign corporate bonds		786		(40	)		35,728		(999	)		36,514		(1,039	)
Total fixed maturities	$	272,596	$	(447	)	$	251,863	$	(9,132	)	$	524,459	$	(9,579	)

December 31, 2024. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 3.


	Less than 12 months					12 months or longer					Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed maturities:
U.S. treasuries	$	12,909	$	(180	)	$	67,662	$	(604	)	$	80,571	$	(784	)
Obligations of states and political subdivisions		—		—			16,335		(790	)		16,335		(790	)
Mortgage-backed securities		20,832		(336	)		26,802		(2,948	)		47,634		(3,284	)
Asset-backed securities		7,239		(49	)		46,792		(2,833	)		54,031		(2,882	)
Commercial mortgage-backed securities		7,551		(242	)		55,750		(2,246	)		63,301		(2,488	)
Corporate bonds		14,325		(54	)		95,266		(2,837	)		109,591		(2,891	)
Foreign corporate bonds		17,635		(62	)		46,696		(1,755	)		64,331		(1,817	)
Total fixed maturities	$	80,491	$	(923	)	$	355,303	$	(14,013	)	$	435,794	$	(14,936	)

The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each available for sale debt security in an unrealized loss position to assess whether the decline in fair value below amortized cost basis has resulted from a credit loss or other factors. In assessing whether a credit loss exists, the Company compares the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis of the security, a credit loss exists and an allowance for expected credit losses is recorded. Subsequent changes in the allowances are recorded in the period of change as either credit loss expense or reversal of credit loss expense. Any declines in value related to factors other than credit losses and the intent to sell are recorded through other comprehensive income, net of taxes.

For fixed maturities, the factors considered in reaching the conclusion that a credit loss exists include, among others, whether:

(1)

the extent to which the fair value is less than the amortized cost basis;

(2)

the issuer is in financial distress;

(3)

the investment is secured;

(4)

a significant credit rating action occurred;

(5)

scheduled interest payments were delayed or missed;

(6)

changes in laws or regulations have affected an issuer or industry;

(7)

the investment has an unrealized loss and was identified by the Company’s investment manager as an investment to be sold before recovery or maturity;

(8)

the investment failed cash flow projection testing to determine if anticipated principal and interest payments will be realized; and

(9)

changes in US Treasury rates and/or credit spreads since original purchase to identify whether the unrealized loss is simply due to interest rate movement.

According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met, any allowance for expected credit losses is written off and the amortized cost basis is written down to the fair value of the fixed maturity security with any incremental impairment reported in earnings. The new amortized cost basis shall not be adjusted for subsequent recoveries in fair value. Subject to the risks and uncertainties in evaluating the potential impairment of a security's value, the impairment evaluation conducted by the Company as of June 30, 2025 and December 31, 2024 concluded the unrealized losses in the tables above are non-credit losses on securities where management does not intend to sell, and it is more likely than not that the Company will not be required to sell the security before recovery.

The Company elected the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of the available for sale debt securities for the purposes of identifying and measuring an impairment and to not measure an

allowance for expected credit losses for accrued interest receivables. Accrued interest receivable is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payment. The Company made an accounting policy election to present the accrued interest receivable balance with other assets on the Company’s consolidated statements of financial position. Accrued interest receivable related to fixed maturities was $5.6 million and $3.5 million as of June 30, 2025 and December 31, 2024, respectively.

The following is a description, by asset type, of the methodology and significant inputs that the Company used to measure the amount of credit loss recognized in earnings, if any:

U.S. treasuries – As of June 30, 2025, gross unrealized losses related to U.S. treasuries were $0.265 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, macroeconomic and market analysis is conducted in evaluating these securities. Consideration is given to the interest rate environment, duration and yield curve management of the portfolio, sector allocation and security selection. Based on the analysis performed, the Company did not recognize a credit loss on U.S. treasuries during the period.

Obligations of states and political subdivisions – As of June 30, 2025, gross unrealized losses related to obligations of states and political subdivisions were $0.489 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, elements that may influence the performance of the municipal bond market are considered in evaluating these securities such as investor expectations, supply and demand patterns, and current versus historical yield and spread relationships. The analysis relies on the output of fixed income credit analysts, as well as dedicated municipal bond analysts who perform extensive in-house fundamental analysis on each issuer, regardless of their rating by the major agencies. Based on the analysis performed, the Company did not recognize a credit loss on obligations of states and political subdivisions during the period.

Mortgage-backed securities (“MBS”) – As of June 30, 2025, gross unrealized losses related to mortgage-backed securities were $2.500 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, mortgage-backed securities are modeled to project principal losses under downside, base, and upside scenarios for the economy and home prices. The primary assumption that drives the security and loan level modeling is the Home Price Index (“HPI”) projection. These forecasts incorporate not just national macro-economic trends, but also regional impacts to arrive at the most granular and detailed and comprehensive projections. These assumptions are incorporated into the model as a basis to generate delinquency probabilities, default curves, loss severity curves, and voluntary prepayment curves at the loan level within each deal. The model utilizes HPI-adjusted current loan to value, payment history, loan terms, loan modification history, and borrower characteristics as inputs to generate expected cash flows and principal loss for each bond under various scenarios. Based on the analysis performed, the Company did not recognize a credit loss on mortgage-backed securities during the period.

Asset backed securities (“ABS”) - As of June 30, 2025, gross unrealized losses related to asset backed securities were $2.166 million. The weighted average credit enhancement for the Company’s asset backed portfolio is 37.9. This represents the percentage of pool losses that can occur before an asset backed security will incur its first dollar of principal losses. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, every ABS transaction is analyzed on a stand-alone basis. This analysis involves a thorough review of the collateral, prepayment, and structural risk in each transaction. Additionally, the analysis includes an in-depth credit analysis of the originator and servicer of the collateral. The analysis projects an expected loss for a deal given a set of assumptions specific to the asset type. These assumptions are used to calculate at what level of losses the deal will incur its first dollar of principal loss. The major assumptions used to calculate this ratio are loss severities, recovery lags, and no advances on principal and interest. Based on the analysis performed, the Company did not recognize a credit loss on asset backed securities during the period.

Commercial mortgage-backed securities (“CMBS”) - As of June 30, 2025, gross unrealized losses related to the CMBS portfolio were $1.573 million. The weighted average credit enhancement for the Company’s CMBS portfolio is 43.1. This represents the percentage of pool losses that can occur before a commercial mortgage-backed security will incur its first dollar of principal loss. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, a loan level analysis is utilized where every underlying CMBS loan is re-underwritten based on a set of assumptions reflecting expectations for the future path of the economy. Each loan is analyzed over time using a series of tests to determine if a credit event will occur during the life of the loan. Inherent in this process are several economic scenarios and their corresponding rent/vacancy and capital market states. The five primary credit events that frame the analysis include loan modifications, term default, balloon default, extension, and ability to pay off the balloon. The resulting

output is the expected loss adjusted cash flows for each bond under base case and distressed scenarios. Based on the analysis performed, the Company did not recognize a credit loss on commercial mortgage-backed securities during the period.

Corporate bonds - As of June 30, 2025, gross unrealized losses related to corporate bonds were $1.547 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, analysis for this asset class includes maintaining detailed financial models that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. Based on the analysis performed, the Company did not recognize a credit loss on corporate bonds during the period.

Foreign bonds – As of June 30, 2025, gross unrealized losses related to foreign bonds were $1.039 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, detailed financial models are maintained that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. Based on the analysis performed, the Company did not recognize a credit loss on foreign bonds during the period.

The Company has evaluated its investment portfolio and has determined that an allowance for expected credit losses on its investments is not required.

Accumulated Other Comprehensive Income (Loss), Net of Tax

Accumulated other comprehensive income (loss), net of tax, as of June 30, 2025 and December 31, 2024 was as follows:


(Dollars in thousands)	June 30, 2025			December 31, 2024
Net unrealized gains (losses) from:
Fixed maturities	$	(5,590	)	$	(12,731	)
Foreign currency fluctuations		(184	)		(259	)
Deferred taxes		1,117			2,580
Accumulated other comprehensive income (loss), net of tax	$	(4,657	)	$	(10,410	)

The following tables present the changes in accumulated other comprehensive income (loss), by components, for the quarters and six months ended June 30, 2025 and 2024:


Quarter Ended June 30, 2025 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income (Loss)
Beginning balance, net of tax	$	(6,644	)	$	(269	)	$	(6,913	)
Other comprehensive income before reclassification, before tax		2,643			156			2,799
Amounts reclassified from accumulated other comprehensive income (loss), before tax		34			—			34
Other comprehensive income, before tax		2,677			156			2,833
Income tax expense		(545	)		(32	)		(577	)
Ending balance, net of tax	$	(4,512	)	$	(145	)	$	(4,657	)


Quarter Ended June 30, 2024 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income (Loss)
Beginning balance, net of tax	$	(19,779	)	$	(216	)	$	(19,995	)
Other comprehensive income before reclassification, before tax		2,321			59			2,380
Amounts reclassified from accumulated other comprehensive income (loss), before tax		7			—			7
Other comprehensive income, before tax		2,328			59			2,387
Income tax expense		(431	)		(12	)		(443	)
Ending balance, net of tax	$	(17,882	)	$	(169	)	$	(18,051	)


Six Months Ended June 30, 2025 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income (Loss)
Beginning balance, net of tax	$	(10,205	)	$	(205	)	$	(10,410	)
Other comprehensive income before reclassification, before tax		7,120			75			7,195
Amounts reclassified from accumulated other comprehensive income (loss), before tax		21			—			21
Other comprehensive income, before tax		7,141			75			7,216
Income tax expense		(1,448	)		(15	)		(1,463	)
Ending balance, net of tax	$	(4,512	)	$	(145	)	$	(4,657	)


Six Months Ended June 30, 2024 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income (Loss)
Beginning balance, net of tax	$	(22,715	)	$	(148	)	$	(22,863	)
Other comprehensive income (loss) before reclassification, before tax		5,929			(27	)		5,902
Amounts reclassified from accumulated other comprehensive income (loss), before tax		32			—			32
Other comprehensive income (loss), before tax		5,961			(27	)		5,934
Income tax expense		(1,128	)		6			(1,122	)
Ending balance, net of tax	$	(17,882	)	$	(169	)	$	(18,051	)

The reclassifications out of accumulated other comprehensive income (loss) for the quarters and six months ended June 30, 2025 and 2024 were as follows:


		Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
(Dollars in thousands)		Quarters Ended June 30,
Details about Accumulated Other Comprehensive Income (Loss) Components	Affected Line Item in the Consolidated Statements of Operations	2025			2024
Unrealized gains and losses on available for sale securities	Other net realized investment losses	$	34		$	7
	Income tax expense (benefit)		(1	)		3
	Total reclassifications, net of tax	$	33		$	10


		Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
(Dollars in thousands)		Six Months Ended June 30,
Details about Accumulated Other Comprehensive Income (Loss) Components	Affected Line Item in the Consolidated Statements of Operations	2025		2024
Unrealized gains and losses on available for sale securities	Other net realized investment losses	$	21	$	32
	Income tax expense		2		—
	Total reclassifications, net of tax	$	23	$	32

Net Realized Investment Gains

The components of net realized investment gains for the quarters and six months ended June 30, 2025 and 2024 were as follows:


	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2025			2024			2025			2024
Fixed maturities:
Gross realized gains	$	47		$	43		$	61		$	49
Gross realized losses		(81	)		(50	)		(82	)		(81	)
Net realized gains (losses)		(34	)		(7	)		(21	)		(32	)
Equity securities:
Gross realized gains		161			214			284			1,089
Gross realized losses		—			(2	)		—			(5	)
Net realized gains (losses)		161			212			284			1,084
Total net realized investment gains	$	127		$	205		$	263		$	1,052

The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of June 30, 2025 and 2024:


	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2025		2024			2025		2024
Net gains (losses) recognized during the period on equity securities	$	161	$	212		$	284	$	1,084
Less: net gain (losses) recognized during the period on equity securities sold during the period		—		(255	)		—		(266	)
Unrealized gains (losses) recognized during the reporting period on equity securities still held	$	161	$	467		$	284	$	1,350

The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the six months ended June 30, 2025 and 2024 were as follows:


	Six Months Ended June 30,
(Dollars in thousands)	2025		2024
Fixed maturities	$	87,361	$	51,491
Equity securities		—		—

Net Investment Income

The sources of net investment income for the quarters and six months ended June 30, 2025 and 2024 were as follows:


	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2025			2024			2025			2024
Fixed maturities	$	14,909		$	14,582		$	29,296		$	28,160
Equity securities		169			245			285			434
Cash and cash equivalents		750			662			1,606			1,321
Other invested assets		(608	)		334			(694	)		931
Total investment income		15,220			15,823			30,493			30,846
Investment expense		(513	)		(512	)		(1,004	)		(1,015	)
Net investment income	$	14,707		$	15,311		$	29,489		$	29,831

The Company’s total investment return on a pre-tax basis for the quarters and six months ended June 30, 2025 and 2024 were as follows:


	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2025			2024			2025			2024
Net investment income	$	14,707		$	15,311		$	29,489		$	29,831
Net realized investment gains		127			205			263			1,052
Change in unrealized holding gains (losses)		2,833			2,387			7,216			5,934
Net realized and unrealized investment returns		2,960			2,592			7,479			6,986
Total investment return	$	17,667		$	17,903		$	36,968		$	36,817
Total investment return % (1)		1.2	%		1.3	%		2.6	%		2.6	%
Average investment portfolio (2)	$	1,432,379		$	1,426,266		$	1,436,827		$	1,412,821

(1)

Not annualized.

(2)

Average of total cash and invested assets, net of receivable/payable for securities, as of the beginning and end of the period.

As of June 30, 2025 and December 31, 2024, the Company did not own any fixed maturity securities that were non-income producing for the preceding twelve months.

Insurance Enhanced Asset-Backed and Credit Securities

As of June 30, 2025, the Company held insurance enhanced municipal bonds with a market value of approximately $1.3 million which represented 0.1% of the Company’s total cash and invested assets, net of payable for securities. The financial guarantors of the Company’s $1.3 million municipal bonds include Assured Guaranty Corporation ($0.4 million) and Ambac Financial Group ($0.9 million).

The Company had no direct investments in the entities that have provided financial guarantees or other credit support to any security held by the Company at June 30, 2025.

Bonds Held on Deposit

Certain cash and cash equivalents and bonds available for sale were deposited with various governmental authorities in accordance with statutory requirements, were held as collateral, or were held in trust. The fair values were as follows as of June 30, 2025 and December 31, 2024:


	Estimated Fair Value
(Dollars in thousands)	June 30, 2025		December 31, 2024
On deposit with governmental authorities	$	19,731	$	19,378
Held in trust pursuant to third party requirements		162,539		158,964
Total (1)	$	182,270	$	178,342

(1)

Includes cash and cash equivalents of $5.5 million and $5.2 million at June 30, 2025 and December 31, 2024, respectively, with the remainder related to bonds available for sale.

Variable Interest Entities

A Variable Interest Entity (“VIE”) refers to an investment in which an investor holds a controlling interest that is not based on the majority of voting rights. Under the VIE model, the party that has the power to exercise significant management influence and maintain a controlling financial interest in the entity’s economics is said to be the primary beneficiary, and is required to consolidate the entity within their results. Other entities that participate in a VIE, for which their financial interests fluctuate with changes in the fair value of the investment entity’s net assets but do not have significant management influence and the ability to direct the VIE’s significant economic activities are said to have a variable interest in the VIE but do not consolidate the VIE in their financial results.

The Company has interests in three limited partnership investments with an aggregate carrying value approximating fair value of $22.1 million and $29.4 million as of June 30, 2025 and December 31, 2024. The Company has a variable interest in two of these limited partnership investments, for which it is not the primary beneficiary. These investments are accounted for under the equity method since its ownership interest exceeds 3%.

The carrying value of one of the Company’s VIEs, which invests in distressed securities and assets, was $2.4 million and $2.6 million as of June 30, 2025 and December 31, 2024, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments of $14.2 million, was $16.6 million and $16.8 million at June 30, 2025 and December 31, 2024, respectively. Since the investment period has concluded, the Company does not expect any capital calls will be made prospectively. The carrying value and maximum exposure to loss of a second VIE that invests in Real Estate Investment Trust (“REIT”) qualifying assets was $7.2 million and $8.9 million as of June 30, 2025 and December 31, 2024, respectively. The Company’s investment in VIEs is included in other invested assets on the consolidated balance sheets with changes in carrying value recorded in the consolidated statements of operations.

Fair Value Measurements

The accounting standards related to fair value measurements define fair value, establish a framework for measuring fair value, outline a fair value hierarchy based on inputs used to measure fair value, and enhance disclosure requirements for fair value measurements. These standards do not change existing guidance as to whether or not an instrument is carried at fair value. The Company has determined that its fair value measurements are in accordance with the requirements of these accounting standards.

The Company’s invested assets are carried at their fair value and are categorized based upon a fair value hierarchy:

•

Level 1 – inputs utilize quoted prices (unadjusted) in active markets for identical assets that the Company has the ability to access at the measurement date.

•

Level 2 – inputs utilize other than quoted prices included in Level 1 that are observable for similar assets, either directly or indirectly.

•

Level 3 – inputs are unobservable for the asset, and include situations where there is little, if any, market activity for the asset.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset.

The following table presents information about the Company’s invested assets measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.


	Fair Value Measurements
As of June 30, 2025 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasuries	$	572,381	$	—	$	—	$	572,381
Obligations of states and political subdivisions		—		15,434		—		15,434
Mortgage-backed securities		—		214,991		—		214,991
Commercial mortgage-backed securities		—		65,204		—		65,204
Asset-backed securities		—		157,128		—		157,128
Corporate bonds		—		223,008		—		223,008
Foreign corporate bonds		—		88,198		—		88,198
Total fixed maturities		572,381		763,963		—		1,336,344
Equity securities		—		12,569		—		12,569
Total assets measured at fair value	$	572,381	$	776,532	$	—	$	1,348,913


	Fair Value Measurements
As of December 31, 2024 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasuries	$	875,246	$	—	$	—	$	875,246
Obligations of states and political subdivisions		—		16,335		—		16,335
Mortgage-backed securities		—		58,920		—		58,920
Commercial mortgage-backed securities		—		65,568		—		65,568
Asset-backed securities		—		135,427		—		135,427
Corporate bonds		—		156,096		—		156,096
Foreign corporate bonds		—		74,316		—		74,316
Total fixed maturities		875,246		506,662		—		1,381,908
Equity securities		—		12,284		—		12,284
Total assets measured at fair value	$	875,246	$	518,946	$	—	$	1,394,192

The securities classified as Level 1 in the above tables consist of U.S. treasuries actively traded on an exchange.

The securities classified as Level 2 in the above tables consist primarily of fixed maturities and preferred stocks. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities and preferred stocks, security prices are

derived through recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. If there are no recent reported trades, matrix or model processes are used to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Included in the pricing of asset-backed securities, collateralized mortgage obligations, and mortgage-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral.

Fair Value of Alternative Investments

Other invested assets consist of limited partnerships whose carrying value approximates fair value. The following table provides the fair value and future funding commitments related to these investments at June 30, 2025 and December 31, 2024.


	June 30, 2025				December 31, 2024
(Dollars in thousands)	Fair Value		Future Funding Commitment		Fair Value		Future Funding Commitment
European Non-Performing Loan Fund, LP (1)	$	2,387	$	14,214	$	2,628	$	14,214
Mortgage Debt Fund, LP (2)		7,224		—		8,882		—
Global Debt Fund, LP (3)		12,461		—		17,903		—
Total	$	22,072	$	14,214	$	29,413	$	14,214

(1)

This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets. As of June 30, 2025, the Company has funded $35.8 million of this commitment leaving $14.2 million as unfunded. Since the investment period has concluded, the Company does not expect any capital calls will be made prospectively.

(2)

This limited partnership invests in REIT qualifying assets such as mortgage loans, investor property loans, and commercial mortgage loans. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets.

(3)

This limited partnership invests in performing, stressed or distressed securities and loans across the global fixed income markets. The Company does have the contractual option to withdraw all or a portion of its limited partnership interest by providing notice to the fund. On July 31, 2023, the Company provided the Global Debt Fund, LP with a formal withdrawal request to fully redeem the partnership interest. Partial redemption proceeds of $4.4 million were received during the six months ended June 30, 2025.

Limited Partnerships with ownership interest exceeding 3%

The Company uses the equity method to account for investments in limited partnerships where its ownership interest exceeds 3%. The equity method of accounting for an investment in limited partnerships requires that its cost basis be updated to account for the income or loss earned on the investment. In the Fair Value of Alternative Investments table above, all of the investments are booked on a one quarter lag due to non-availability of data at the time the financial statements are prepared. The investment income (loss) associated with the limited partnerships whose ownership interest exceeds 3% is reflected in the consolidated statements of operations in the amounts of $0.2 million for the quarters ended June 30, 2025 and 2024 and $0.0 million and $0.6 million for the six months ended June 30, 2025 and 2024, respectively.

Pricing

The Company’s pricing vendors provide prices for all investment categories except for investments in limited partnerships. Two primary vendors are utilized to provide prices for equity and fixed maturity securities.

The following is a description of the valuation methodologies used by the Company’s pricing vendors for investment securities carried at fair value:

•

Equity security prices are received from primary and secondary exchanges.

•

Corporate and agency bonds, as well as preferred stock, are evaluated by utilizing a spread to a benchmark curve. Bonds with similar characteristics are grouped into specific sectors. Inputs for both asset classes consist of trade prices, broker quotes, the new issue market, and prices on comparable securities.

•

Data from commercial vendors is aggregated with market information, then converted into an option adjusted spread (“OAS”) matrix and prepayment model used for collateralized mortgage obligations (“CMO”). CMOs are categorized with mortgage-backed securities in the tables listed above. For asset-backed securities, spread data is derived from trade prices, dealer quotations, and research reports. For both asset classes, evaluations utilize standard inputs plus new issue data, and collateral performance. The evaluated pricing models incorporate cash flows, broker quotes, market trades, historical prepayment speeds, and dealer projected speeds.

•

For obligations of state and political subdivisions, an attribute-based modeling system is used. The pricing model incorporates trades, market clearing yields, market color, and fundamental credit research.

•

U.S. treasuries are evaluated by obtaining feeds from a number of live data sources including primary and secondary dealers as well as inter-dealer brokers.

•

For mortgage-backed securities, various external analytical products are utilized and purchased from commercial vendors.

The Company performs certain procedures to validate whether the pricing information received from the pricing vendors is reasonable, to ensure that the fair value determination is consistent with accounting guidance, and to ensure that its assets are properly classified in the fair value hierarchy. The Company’s procedures include, but are not limited to:

•

Reviewing periodic reports provided by the Investment Manager that provides information regarding rating changes and securities placed on watch. This procedure allows the Company to understand why a particular security’s market value may have changed or may potentially change.

•

Understanding and periodically evaluating the various pricing methods and procedures used by the Company’s pricing vendors to ensure that investments are properly classified within the fair value hierarchy.

•

On a quarterly basis, the Company corroborates investment security prices received from its pricing vendors by obtaining pricing from a second pricing vendor for a sample of securities.

During the quarters and six months ended June 30, 2025 and 2024, the Company has not adjusted quotes or prices obtained from the pricing vendors.

Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables

For premium receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, direct placement with collection agencies, solvency of insured, agents, or reinsurers on assumed reinsurance, terminated agents, and other relevant factors.

The following table is an analysis of the allowance for expected credit losses related to the Company's premium receivables for the quarters and six months ended June 30, 2025 and 2024:


	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2025			2024			2025			2024
Beginning balance	$	3,475		$	4,423		$	3,530		$	4,796
Current period provision for expected credit losses		(66	)		(367	)		(79	)		(173	)
Write-offs		(38	)		(13	)		(80	)		(580	)
Ending balance	$	3,371		$	4,043		$	3,371		$	4,043

For reinsurance receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, disputes, applicable coverage defenses, insolvent reinsurers, financial strength of solvent reinsurers based on AM Best Ratings and other relevant factors.

The allowance for expected credit losses related to the Company's reinsurance receivables was $9.0 million at June 30, 2025 and December 31, 2024.

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 before income taxes is derived from its U.S. subsidiaries for the quarters and six months ended June 30, 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 of 21.2% for the quarter ended June 30, 2025 was higher than the statutory tax rate of 21% primarily due to non-deductible executive compensation offset partially by Global Indemnity Group, LLC’s income being treated as a partnership for tax.

The effective tax rate of 20.9% for the six months ended June 30, 2025 was lower than the statutory tax rate of 21% primarily due to Global Indemnity Group, LLC’s income being treated as a partnership for tax offset partially by non-deductible executive compensation.

The effective tax rate was 20.4% and 20.3% for the quarter and six months ended June 30, 2024. The effective tax rate is lower than the statutory tax rate of 21% primarily due to Global Indemnity Group, LLC’s income being treated as a partnership for tax offset partially by non-deductible executive compensation.

On July 4, 2025, the U.S enacted the One Big Beautiful Bill Act (the “Act”). The Act includes provisions to expense previously deferred domestic research and development costs, increase bonus depreciation and modify the international tax framework. The Company is currently assessing the impact on its consolidated financial statements but does not expect it to have a material effect on the consolidated financial statements.

Liability for Unpaid Losses and Loss Adjustment Expenses

Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:


	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2025		2024			2025		2024
Balance at beginning of period	$	794,848	$	853,602		$	800,391	$	850,599
Less: ceded reinsurance receivables		62,731		71,814			60,754		72,829
Net balance at beginning of period		732,117		781,788			739,637		777,770
Net losses and loss adjustment expenses related to:
Current year		52,946		53,744			119,681		107,127
Prior years		2		(82	)		5		(81	)
Total net losses and loss adjustment expenses		52,948		53,662			119,686		107,046
Paid net losses and loss adjustment expenses related to:
Current year		15,785		18,489			33,776		24,086
Prior years		52,631		43,147			108,898		86,916
Total paid net losses and loss adjustment expenses		68,416		61,636			142,674		111,002
Net balance at end of period		716,649		773,814			716,649		773,814
Plus: ceded reinsurance receivables		59,478		70,392			59,478		70,392
Balance at end of period	$	776,127	$	844,206		$	776,127	$	844,206

When analyzing unpaid losses and loss adjustment expenses ("loss reserves") and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates.

During the second quarter of 2025, the Company's adjustments to prior accident year loss reserves netted to an increase of less than $0.1 million.

•

Belmont Insurance Companies - Core (“Belmont Core”) had an increase of $1.4 million consisting of (i) $4.2 million decrease for property lines primarily related to the 2022 through 2024 accident years and (ii) $5.6 million increase for casualty lines primarily related to the 2020 through 2022 accident years.

•

Belmont Insurance Companies - Non-Core ("Belmont Non-Core") had an decrease of $1.4 million mainly driven by its property lines for the 2020 through 2022 accident years.

During the second quarter of 2024, the Company's adjustments to prior accident year loss reserves netted to a decrease of $0.1 million.

•

Belmont Core had a decrease of $0.5 million consisting of (i) $0.4 million decrease for property lines related to the 2020 through 2022 accident years and (ii) $0.1 million decrease for casualty lines across various accident years.

•

Belmont Non-Core had an increase of $0.4 million driven by its casualty lines across various accident years.

During the first six months of 2025, the Company's adjustments to prior accident year loss reserves netted to an increase of less than $0.1 million.

•

Belmont Core had an increase of $1.4 million consisting of (i) $4.6 million decrease for property lines primarily related to the 2022 through 2024 accident years and (ii) $6.0 million increase for casualty lines primarily related to the 2020 through 2022 accident years.

•

Belmont Non-Core had a decrease of $1.4 million mainly driven by its property lines for the 2020 through 2022 accident years.

During the first six months of 2024, the Company's adjustments to prior accident year loss reserves netted to a decrease of $0.1 million.

•

Belmont Core had a decrease of $0.4 million consisting of (i) $0.3 million decrease for property lines related to the 2020 and 2021 accident years and (ii) $0.1 million decrease for casualty lines across various accident years.

•

Belmont Non-Core had an increase of $0.3 million consisting of (i) $0.5 million increase for property lines in the 2019, 2020 and 2022 accident years, (ii) a $0.5 million increase in aggregate for casualty lines across various accident years, and (iii) $0.7 million decrease in reinsurance across various accident years.

Shareholders’ Equity

Amendment of the Limited Liability Company Agreement

Effective January 16, 2025, the Company amended and restated its Second Amended and Restated Limited Liability Company Agreement (such amended and restated agreement, the Third Amended and Restated Limited Liability Company Agreement (“LLCA”)). The LLCA incorporates certain amendments, including, the authorization of 5,000,000 class A common shares that the Board may designate as class A-2 common shares pursuant to a grant agreement, as well as establishing the rights of the class A common shares designated as class A-2 common shares.

Class A common shares designated as class A-2 common shares issuance

On March 6, 2025, Global Indemnity Group, LLC issued 550,000 class A common shares designated as class A-2 common shares to Fox Paine & Company, LLC. These shares represent an interest in the profits of the Company in excess of a

threshold amount of $475.3 million which is equal to the product of (i) the volume weighted average closing sale price of a class A common share on the New York Stock Exchange for the 30 consecutive calendar days ending on and including the grant date of March 6, 2025, which is equal to $34.67 per share, multiplied by (ii) the total number of outstanding class A and class B common shares of 13,708,199, subject to adjustment as set forth in the class A common shares designated as class A-2 common shares grant agreement. These shares are fully vested and non-forfeitable. The class A common shares designated as class A-2 common shares have the same voting rights as the class A common shares and are entitled to ordinary cash dividends or other regular distributions in the same manner as both the class A and class B common shares. Other than distributions made in connection with a Change of Control Transaction, the class A common shares designated as class A-2 common shares are also entitled to receive any special dividends or distributions that may be declared by the Board in the same manner as the class A and class B common shares provided the distribution relates solely to Company profits accrued since the grant date and does not result in the reduction of the threshold amount. Unless otherwise determined by the Board and the Conflicts Committee of the Board of Directors, the class A common shares designated as class A-2 common shares may not be assigned, sold, pledged, hypothecated, transferred, or disposed of in any manner until the occurrence of a Change of Control Transaction. Upon a Change of Control Transaction, the holders of shares, including the class A common shares designated as class A-2 common shares shall be entitled to receive distributions, if any, from the proceeds of the sale of the Company or the Company’s assets in the following order:

first, holders of Series A Cumulative Fixed Rate Perpetual Preferred Shares receive the sum of the Unpaid Priority Return and the Unreturned Liquidation Preference (each as defined in the Series A Preferred Shares Designation) with respect to their Series A Cumulative Fixed Rate Perpetual Preferred Shares;

second, holders of class A and class B common shares (other than the class A common shares designated as class A-2 common shares) receive distributions equal to the Threshold Amount less the total amount of any special distributions or special dividends paid by the Company to holders of class A and class B common shares (other than the class A common shares designated as class A-2 common shares) following the grant date that relate solely to the capital (not profits) of the Company (which amount shall be determined by the Board);

third, the holders of class A common shares designated as class A-2 common shares receive 100% of distributions until the amount received per class A common shares designated as a class A-2 common shares is “caught up” to the amount received under step (2) by each class A common share; and

fourth, the class A common shares designated as class A-2 common shares participate in distributions of profits, pro-rata with other common shareholders (otherwise in accordance with the LLCA).

Repurchases of the Company's class A common shares

No class A common shares were surrendered, repurchased, or redeemed during the quarter and six months ended June 30, 2025. As of June 30, 2025, the Company’s remaining authorization to repurchase shares is $101.0 million.

The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2024:


(Dollars in thousands, except share and per share data) Period (1)	Total Number of Shares Purchased			Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
June 1-30, 2024		16,527	(3)	$	32.00		—	$	101,004
Total		16,527		$	32.00

(1)

Based on settlement date.

(2)

Based on the $135 million share repurchase authorization.

(3)

Surrendered by employees as payment of taxes withheld on the vesting of restricted stock and/or restricted stock units.

Please see Note 15 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2024 Annual Report on Form 10-K for more information on the Company’s repurchase program.

Distributions

Quarterly distribution payments of $0.35 per common share were declared during the six months ended June 30, 2025 as follows:


Approval Date	Record Date	Payment Date	Total Distributions Declared (Dollars in thousands)
March 6, 2025	March 21, 2025	March 28, 2025	$	4,990
June 5, 2025	June 20, 2025	June 27, 2025		4,997
Total			$	9,987

Quarterly distribution payments of $0.35 per common share were declared during the six months ended June 30, 2024 as follows:


Approval Date	Record Date	Payment Date	Total Distributions Declared (Dollars in thousands)
March 6, 2024	March 21, 2024	March 28, 2024	$	4,752
June 6, 2024	June 21, 2024	June 28, 2024		4,774
Various (1)	Various	Various		18
Total			$	9,544

(1)

Represents distributions declared on unvested shares, net of forfeitures.

In addition, distributions paid to Global Indemnity Group, LLC's preferred shareholder were $0.1 million in each of the quarters ended June 30, 2025 and 2024 and $0.2 million in each of the six months ended June 30, 2025 and 2024.

There were no accrued distributions related to common shares as of June 30, 2025 and December 31, 2024. Accrued preferred distributions were less than $0.1 million as of both June 30, 2025 and December 31, 2024 and were included in other liabilities on the consolidated balance sheets.

Please see Note 15 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2024 Annual Report on Form 10-K for more information on the Company’s distribution program.

Related Party Transactions

Fox Paine Entities

Pursuant to Global Indemnity Group, LLC’s Third Amended and Restated Limited Liability Company Agreement (“LLCA”), Fox Paine Capital Fund II International, L.P. (the “Fox Paine Fund”), together with Fox Mercury Investments, L.P. and certain of its affiliates (the “FM Entities”), and Fox Paine & Company LLC (collectively, the “Fox Paine Entities”) currently constitute a Class B Majority Shareholder (as defined in the LLCA) and, as such, have the right to appoint a number of Global Indemnity Group, LLC’s directors equal in aggregate to the pro rata percentage of the voting power in Global Indemnity Group, LLC beneficially held by the Fox Paine Entities, rounded up to the nearest whole number of directors. The Fox Paine Entities beneficially own shares representing approximately 83.8% of the voting power of Global Indemnity Group, LLC as of June 30, 2025. The Fox Paine Entities control the appointment or election of all of Global Indemnity Group, LLC’s Directors due to the LLCA and their controlling share ownership. Global Indemnity Group, LLC’s Chairman is the Chief Executive and founder of Fox Paine & Company, LLC.

Management fee expense of $0.8 million was incurred during each of the quarters ended June 30, 2025 and 2024 and management fee expense of $1.6 million was incurred during each of the six months ended June 30, 2025 and 2024, respectively. Prepaid management fees, which were included in other assets on the consolidated balance sheets, were $0.6 million and $2.2 million as of June 30, 2025 and December 31, 2024, respectively.

In addition, Fox Paine & Company, LLC may also propose and negotiate transaction fees with the Company subject to the provisions of the Company’s related party transaction and conflict matter policies, including approval of Global Indemnity Group, LLC’s Conflicts Committee of the Board of Directors, for those services from time to time. Each of the Company’s transactions with Fox Paine & Company, LLC are reviewed and approved by Global Indemnity Group, LLC’s Conflicts

Committee, which is composed of Disinterested Directors (as defined in the LLCA), and upon the recommendation of the Conflicts Committee, the Board of Directors (Saul A. Fox, Chairman of the Board of Directors of Global Indemnity Group, LLC and Chief Executive of Fox Paine & Company, LLC, is not a member of the Conflicts Committee and recused himself from deliberations related to fees paid to Fox Paine & Company, LLC or its affiliates).

Advisory Fee related to Internal Reorganization

Fox Paine & Company, LLC conceived, designed, and directed the Company's successful completion of an extensive reorganization of its business in December 2024. This reorganization was a significant milestone, positioning the Company for enhanced operational efficiency and growth by:

•

Enhancing Penn-America Underwriters, LLC's business divisions: Wholesale Commercial, Vacant Express, Collectibles and Specialty Products by creating separate and distinct businesses for each division to improve branding, attract talent and expand relationships with its distribution partners.

•

Establishing separate businesses for technology, Kaleidoscope Insurance Technologies, Inc., and claims services, Liberty Insurance Adjustment Agency, Inc, that will continue to support the insurance company operations of Belmont Holdings GX, Inc. and create the foundation to offer products and services to other insurance industry participants.

•

De-stacking the insurance companies resulting in an increased consolidated surplus of the insurance companies and allowing for more efficient management of capital and liquidity.

On March 6, 2025, upon the recommendation of the Conflicts Committee of the Board of Directors, Global Indemnity Group, LLC’s Board of Directors (other than Joseph Brown, Chief Executive Officer of Global Indemnity Group, LLC, who recused himself due to his inherent conflict of interest in approving a compensation matter for Fox Paine) approved the issuance of 550,000 class A common shares designated as class A-2 common shares with a grant date fair value of $11.0 million and additional consideration of $0.2 million in cash for services performed in connection with the Company’s internal corporate reorganization. Of the grant date fair value of the class A common shares designated as class A-2 common shares, $2.7 million was recorded in the first quarter of 2025. The remaining $8.3 million will be recognized, if at all, upon a Change of Control Transaction. See Note 7 for additional information regarding the 550,000 class A common shares designated as class A-2 common shares.

Greenberg Traurig, LLP’s

Fred Karlinsky, Shareholder and Co-Chair of Greenberg Traurig, LLP, has been a member of Global Indemnity Group, LLC's Board of Directors since December 5, 2023. Effective January 17, 2025, Fred Karlinsky was appointed to the Audit Committee, and as a result, the Company is precluded from obtaining legal services from Greenberg Traurig, LLP. The Company did not incur any costs for legal services rendered by Greenberg Traurig, LLP during the quarter and six months ended June 30, 2025. The Company incurred less than $0.2 million for legal service rendered by Greenberg Traurig, LLP during both the quarter and six months ended June 30, 2024.

Commitments and Contingencies

Legal Proceedings

The Company is, from time to time, involved in various legal proceedings in the ordinary course of business. The Company maintains insurance and reinsurance coverage for such risks in amounts that it considers adequate. However, there can be no assurance that the insurance and reinsurance coverage that the Company maintains is sufficient or will be available in adequate amounts or at a reasonable cost. The Company does not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material adverse effect on its business, results of operations, cash flows, or financial condition.

There is a greater potential for disputes with reinsurers who are in runoff. Some of the Company’s reinsurers have operations that are in runoff, and therefore, the Company closely monitors those relationships. The Company anticipates that, similar to the rest of the insurance and reinsurance industry, it will continue to be subject to litigation and arbitration proceedings in the ordinary course of business.

Commitments

In 2014, the Company entered into a $50 million commitment to purchase an alternative investment vehicle which is comprised of European non-performing loans. As of June 30, 2025, the Company has funded $35.8 million of this commitment leaving $14.2 million as unfunded. Since the investment period has concluded, the Company does not expect any capital calls will be made prospectively.

Other Commitments

The Company is party to a Management Agreement, as amended, with Fox Paine & Company, LLC, whereby in connection with certain management services provided to it by Fox Paine & Company, LLC, the Company agreed to pay an annual management fee to Fox Paine & Company, LLC. See Note 8 above for additional information pertaining to this management agreement.

10.

Share-Based Compensation Plans

Options

During the six months ended June 30, 2025, the Company granted 50,000 Time-Based Stock Options at a strike price of $36.25. These Time-Based Stock Options will vest on December 31, 2028. During the six months ended June 30, 2024, the Company granted 550,000 Time-Based Stock Options at an average strike price of $30.73. Of this amount, 200,000 Time-Based Stock Options vested in four equal tranches of 25% on the first business day of each quarter in 2024. Of the remaining 350,000 Time-Based Stock Options, one-third vested on March 6, 2025, one-third will vest on March 6, 2026, and one-third will vest on March 6, 2027. No stock options were granted during the quarters ended June 30, 2025 or 2024. No unvested stock options were forfeited during the quarters and six months ended June 30, 2025 or 2024.

Advisory Fee related to Internal Reorganization

See Note 7 and 8 for additional information regarding the 550,000 class A common shares designated as class A-2 common shares issued to Fox Paine & Company, LLC.

Restricted Shares / Restricted Stock Units

There were no restricted class A common shares or restricted stock units granted to key employees during the quarters and six months ended June 30, 2025 and 2024. There were no restricted class A common shares or restricted stock units forfeited during the quarters and six months ended June 30, 2025 and 2024.

There were no restricted stock units that vested during the quarter and six months ended June 30, 2025. There were 51,293 and 65,182 restricted stock units that vested during the quarter and six months ended June 30, 2024, respectively. Upon vesting, the restricted stock units converted to restricted class A common shares.

During the quarters ended June 30, 2025 and 2024, the Company granted 21,640 and 25,145 class A common shares, respectively, at a weighted average grant date value of $29.73 and $31.23 per share, respectively, to non-employee directors of the Company under the Plan. During the six months ended June 30, 2025 and 2024, the Company granted 38,129 and 50,590 class A common shares, respectively, at a weighted average grant date value of $32.05 and $30.55 per share, respectively, to non-employee directors of the Company under the Plan. All shares granted to non-employee directors of the Company are fully vested but are subject to certain restrictions.

11.

Earnings Per Share

Earnings per share was computed using the weighted average number of common shares and common share equivalents outstanding during the period.

The following table sets forth the computation of basic and diluted earnings per share attributable to class A common shares, class A common shares designated as class A-2 common shares, and class B common shares:


	Quarters Ended June 30,				Six Months Ended June 30,
(Dollars in thousands, except share and per share data)	2025		2024		2025		2024
Numerator:
Net income	$	10,344	$	10,093	$	6,355	$	21,459
Less: preferred stock distributions		110		110		220		220
Net income available to common shareholders	$	10,234	$	9,983	$	6,135	$	21,239

Denominator:
Weighted average shares for basic earnings per share		14,274,926		13,609,618		14,072,225		13,594,414
Options		66,325		68,290		88,413		64,740
Weighted average shares for diluted earnings per share		14,341,251		13,677,908		14,160,638		13,659,154

Net income per share available to common shareholders
Basic	$	0.72	$	0.73	$	0.44	$	1.56
Diluted	$	0.71	$	0.73	$	0.43	$	1.55

The weighted average shares outstanding used to determine dilutive earnings per share does not include 483,338 options and 283,338 options for the quarter and six months ended June 30, 2025, respectively, and 550,000 options for both the quarter and six months ended June 30, 2024 which were deemed to be anti-dilutive.

12.

Segment Information

On December 31, 2024, the Company executed an extensive internal business reorganization that marked a significant milestone, positioning the Company for growth and enhanced operational efficiency, increased statutory capital, and more efficient capital management resulting from de-stacking of the insurance companies.

As a result of this reorganization, the Company’s reportable segments are now structured under two holding companies:

•

Penn-America Underwriters, LLC consists of (i) three agencies: Penn-America Insurance Services, LLC, J.H. Ferguson and Associates, LLC, which includes the Vacant Express division, and Collectibles Insurance Services, LLC that source, underwrite, and service policies and (ii) two strategic insurance product and service businesses: Liberty Insurance Adjustment Agency, Inc., a claims adjustment and claims service business, and Kaleidoscope Insurance Technologies, Inc., a proprietary insurance software and services provider.

•

Belmont Holdings GX, Inc. includes five state-regulated insurance carriers: Penn-Patriot Insurance Company, Diamond State Insurance Company, Penn-Star Insurance Company, Penn-America Insurance Company, and United National Insurance Company, each of which are rated “A” (Excellent) by AM Best.

In the first quarter of 2025, the Company realigned the composition of its reportable segments to reflect changes in how the Company now manages its operations. The Company changed the level at which its chief operating decision maker (“CODM”), the Chief Executive Officer of Global Indemnity Group, LLC, regularly reviews operating results and allocate resources to now include Agency and Insurance Services. As a result of these changes, the Company has three reportable segments:

•

Liberty Insurance Adjustment Agency, Inc., a claims adjustment and claims service business, and Kaleidoscope Insurance Technologies, Inc., a proprietary insurance software and services provider.

•

Belmont Insurance Companies - Core (“Belmont Core”), previously known as the Penn-America segment, consists of insurance company operations for ongoing direct insurance products and assumed reinsurance products, which are offered in the excess and surplus lines marketplace.

•

Belmont Insurance Companies - Non-Core (“Belmont Non-Core”), previously known as the Non-Core Operations segment, consists of insurance company operations for lines of business that have been de-emphasized or are no longer being written. The primary activities of Belmont Non-Core are servicing the run-off of polices/treaties, adjusting claims and estimating loss reserves on de-emphasized and terminated business.

The entities within the Agency and Insurance Services segment executed new affiliated service agreements with Belmont Holdings GX, Inc. and its insurance company subsidiaries, effective January 1, 2025. As a result, there are no revenues and expenses for Agency and Insurance Services in the comparable period in 2024.

The Company's segments are reported on a stand-alone basis. Intercompany transactions are eliminated in consolidation.

The Company analyzes the operating performance of each segment using the segment’s income (loss). Segment income (loss) does not equate to “net income (loss)” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the CODM to evaluate segment performance and allocate resources, and consistent with authoritative guidance, is the measure of segment performance presented below.

The following are tabulations of business segment information for the quarters and six months ended June 30, 2025 and 2024. Corporate information is included to reconcile segment data to the consolidated financial statements. Segment results for the quarter and six months ended June 30, 2024 have been recast to conform to the new reportable segments.


Quarter Ended June 30, 2025 (Dollars in thousands)	Agency and Insurance Services		Belmont Core		Belmont Non-Core			Elimination			Total
Revenues:
Gross written premiums	$	—	$	109,819	$	(3,018	)	$	—		$	106,801
Net written premiums	$	—	$	106,873	$	(2,959	)	$	—		$	103,914
Net earned premiums	$	—	$	97,513	$	(2,367	)	$	—		$	95,146
Commission and service fee income (1)		14,851		—		—			(14,851	)		—
Policy and installment fee income		499		—		41			—			540
Total segment revenues		15,350		97,513		(2,326	)		(14,851	)		95,686
Reconciliation of revenue
Net investment income												14,707
Net realized investment gains												127
Total consolidated revenues											$	110,520

Less: (2)
Net losses and loss adjustment expenses		—		56,109		(2,829	)		(332	)		52,948
Net commission expenses		—		34,079		(780	)		(11,456	)		21,843
Other underwriting expenses (3)		13,042		4,591		502			(3,063	)		15,072
Income from segments	$	2,308	$	2,734	$	781		$	—		$	5,823

Reconciliation of segment profit (loss)
Unallocated items:
Net investment income												14,707
Net realized investment gains												127
Corporate expenses												(7,528	)
Income before income taxes												13,129
Income tax expense												2,785
Net income											$	10,344

Segment assets	$	33,730	$	154,811	$	85,360		$	(19,644	)		254,257
Corporate assets												1,466,328
Total assets											$	1,720,585

(1)

Consists of intersegment revenues, which are eliminated in consolidation.

(2)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(3)

Other underwriting expenses consist primarily of personnel expenses and general operating expenses related to underwriting activities.


Quarter Ended June 30, 2024 (Dollars in thousands)	Agency and Insurance Services		Belmont Core		Belmont Non-Core			Elimination		Total
Revenues:
Gross written premiums	$	—	$	100,552	$	154		$	—	$	100,706
Net written premiums	$	—	$	97,602	$	149		$	—	$	97,751
Net earned premiums	$	—	$	89,353	$	3,461		$	—	$	92,814
Commission and service fee income		—		—		—			—		—
Policy and installment fee income		—		344		13			—		357
Total segment revenues		—		89,697		3,474			—		93,171
Reconciliation of revenue
Net investment income											15,311
Net realized investment gains											205
Total consolidated revenues										$	108,687

Less: (1)
Net losses and loss adjustment expenses		—		51,126		2,536			—		53,662
Net commission expenses		—		20,589		1,094			—		21,683
Other underwriting expenses (2)		—		13,309		976			—		14,285
Income (loss) from segments	$	—	$	4,673	$	(1,132	)	$	—	$	3,541

Reconciliation of segment profit (loss)
Unallocated items:
Net investment income											15,311
Net realized investment gains											205
Corporate expenses											(6,383	)
Income before income taxes											12,674
Income tax expense											2,581
Net income										$	10,093

Segment assets	$	—	$	152,534	$	108,847		$	—		261,381
Corporate assets											1,477,168
Total assets										$	1,738,549

(1)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(2)

Other underwriting expenses consist primarily of personnel expenses and general operating expenses related to underwriting activities.


Six Months Ended June 30, 2025 (Dollars in thousands)	Agency and Insurance Services		Belmont Core			Belmont Non-Core			Elimination			Total
Revenues:
Gross written premiums	$	—	$	208,208		$	(2,732	)	$	—		$	205,476
Net written premiums	$	—	$	202,507		$	(2,729	)	$	—		$	199,778
Net earned premiums	$	—	$	189,773		$	(1,311	)	$	—		$	188,462
Commission and service fee income (1)		28,900		—			—			(28,900	)		—
Policy and installment fee income		886		—			71			—			957
Total segment revenues		29,786		189,773			(1,240	)		(28,900	)		189,419
Reconciliation of revenue
Net investment income													29,489
Net realized investment gains													263
Total consolidated revenues												$	219,171

Less: (2)
Net losses and loss adjustment expenses		—		122,561			(2,210	)		(665	)		119,686
Net commission expenses		—		66,483			(279	)		(22,027	)		44,177
Other underwriting expenses (3)		25,674		9,577			1,202			(6,208	)		30,245
Income (loss) from segments	$	4,112	$	(8,848	)	$	47		$	—		$	(4,689	)

Reconciliation of segment profit (loss)
Unallocated items:
Net investment income													29,489
Net realized investment gains													263
Corporate expenses													(17,028	)
Income before income taxes													8,035
Income tax expense													1,680
Net income												$	6,355

Segment assets	$	33,730	$	154,811		$	85,360		$	(19,644	)		254,257
Corporate assets													1,466,328
Total assets												$	1,720,585

(1)

Consists of intersegment revenues, which are eliminated in consolidation.

(2)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(3)

Other underwriting expenses consist primarily of personnel expenses and general operating expenses related to underwriting activities


Six months ended June 30, 2024 (Dollars in thousands)	Agency and Insurance Services		Belmont Core		Belmont Non-Core			Elimination		Total
Revenues:
Gross written premiums	$	—	$	194,600	$	(406	)	$	—	$	194,194
Net written premiums	$	—	$	190,198	$	(362	)	$	—	$	189,836
Net earned premiums	$	—	$	178,485	$	10,908		$	—	$	189,393
Commission and service fee income		—		—		—			—		—
Policy and installment fee income		—		683		19			—		702
Total segment revenues		—		179,168		10,927			—		190,095
Reconciliation of revenue
Net investment income											29,831
Net realized investment gains											1,052
Total consolidated revenues										$	220,978

Less: (1)
Net losses and loss adjustment expenses		—		100,035		7,011			—		107,046
Net commission expenses		—		41,480		3,626			—		45,106
Other underwriting expenses (2)		—		27,345		1,786			—		29,131
Income (loss) from segments	$	—	$	10,308	$	(1,496	)	$	—	$	8,812

Reconciliation of segment profit (loss)
Unallocated items:
Net investment income											29,831
Net realized investment gains											1,052
Corporate expenses											(12,756	)
Income before income taxes											26,939
Income tax expense											5,480
Net income										$	21,459

Segment assets	$	—	$	152,534	$	108,847		$	—		261,381
Corporate assets											1,477,168
Total assets										$	1,738,549

(1)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(2)

Other underwriting expenses consist primarily of personnel expenses and general operating expenses related to underwriting activities.

13.

New Accounting Pronouncements

The Company did not adopt any new accounting pronouncements during the six months ended June 30, 2025.

Please see Note 25 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2024 Annual Report on Form 10-K for more information on accounting pronouncements issued but not yet adopted.

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the consolidated financial statements and accompanying notes of the Company included elsewhere in this report. Some of the information contained in this discussion and analysis or set forth elsewhere in this report, including information with respect to the Company’s plans and strategy, constitutes forward-looking statements that involve risks and uncertainties. Please see "Cautionary Note Regarding Forward-Looking Statements" at the end of this Item 2 for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained herein. For more information regarding the Company’s business and operations, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

•

Agency and Insurance Services consists of (i) three agencies: Penn-America Insurance Services, LLC, J.H. Ferguson and Associates, LLC, which includes the Vacant Express division, and Collectibles Insurance Services, LLC that source, underwrite, and service policies and (ii) two strategic insurance product and service businesses: Liberty Insurance Adjustment Agency, Inc., a claims adjustment and claims service business, and Kaleidoscope Insurance Technologies, Inc., a proprietary insurance software and services provider.

•

Segment results for the quarter and six months ended June 30, 2024 have been recast to conform to the new reportable segments.

Financial Highlights

2025 Second Quarter Results of Operations

•

Gross written premiums increased 6.1% to $106.8 million.

•

Current accident year underwriting income increased 61% to $5.6 million for 2025 compared to $3.5 million of underwriting income for the same period in 2024.

•

Net investment income of $14.7 million in 2025 was 3.9% lower than the same period in 2024 due to loss from investment in limited partnerships of $0.6 million. Net investment income from the Company's fixed maturities portfolio increased 2.3% to $15.3 million. Book yield on the fixed maturities portfolio increased to 4.54% at June 30, 2025 from 4.49% at March 31, 2025.

•

Current accident year combined ratio was 94.6% in 2025 compared to 96.7% for the same period in 2024.

•

Net income of $10.3 million, or $0.71 per share diluted, in 2025 compared to $10.1 million, or $0.73 per share diluted, for the same period in 2024.

2025 Second Quarter Consolidated Financial Condition

•

Total cash and investments of $1.4 billion at June 30, 2025 and December 31, 2024; fixed maturities and cash comprise 98% of total investments.

•

Total assets of $1.7 billion at June 30, 2025 and December 31, 2024.

•

No debt at June 30, 2025 and December 31, 2024.

•

Since the Company's initial public offering in 2003, the total capital returned to shareholders was $639.3 million, comprising $522.2 million of share repurchases and $117.1 million of distributions / dividends. This includes $10.2 million of distributions during 2025.

•

Shareholders' equity increased by $6.1 million to $695.3 million at June 30, 2025 from $687.1 million at March 31, 2025.

•

Book value per common share increased to $48.35 at June 30, 2025 from $47.85 at March 31, 2025.

Results of Operations

The following table summarizes the Company’s results for the quarters and six months ended June 30, 2025 and 2024:


	Quarters Ended June 30,						%			Six Months Ended June 30,						%
(Dollars in thousands)	2025			2024			Change			2025			2024			Change
Gross written premiums	$	106,801		$	100,706			6.1	%	$	205,476		$	194,194			5.8	%
Net written premiums	$	103,914		$	97,751			6.3	%	$	199,778		$	189,836			5.2	%

Net earned premiums	$	95,146		$	92,814			2.5	%	$	188,462		$	189,393			(0.5	%)
Other income		540			357			51.3	%		957			702			36.3	%
Total revenues		95,686			93,171			2.7	%		189,419			190,095			(0.4	%)
Losses and expenses:
Net losses and loss adjustment expenses		52,948			53,662			(1.3	%)		119,686			107,046			11.8	%
Acquisition costs and other underwriting expenses		36,915			35,968			2.6	%		74,422			74,237			0.2	%
Underwriting income (loss)		5,823			3,541			64.4	%		(4,689	)		8,812			(153.2	%)
Net investment income		14,707			15,311			(3.9	%)		29,489			29,831			(1.1	%)
Net realized investment gains		127			205			(38.0	%)		263			1,052			(75.0	%)
Corporate expenses		(7,528	)		(6,383	)		17.9	%		(17,028	)		(12,756	)		33.5	%
Income before income taxes		13,129			12,674			3.6	%		8,035			26,939			(70.2	%)
Income tax expense		(2,785	)		(2,581	)		7.9	%		(1,680	)		(5,480	)		(69.3	%)
Net income	$	10,344		$	10,093			2.5	%	$	6,355		$	21,459			(70.4	%)

Underwriting Ratios:
Loss ratio (1):		55.6	%		57.8	%					63.5	%		56.5	%
Expense ratio (2)		38.8	%		38.8	%					39.5	%		39.2	%
Combined ratio (3)		94.4	%		96.6	%					103.0	%		95.7	%

(1)

The loss ratio is a GAAP financial measure that is generally viewed in the insurance industry as an indicator of underwriting profitability and is calculated by dividing net losses and loss adjustment expenses by net earned premiums.

(2)

The expense ratio is a GAAP financial measure that is calculated by dividing the sum of acquisition costs and other underwriting expenses by net earned premiums.

(3)

The combined ratio is a GAAP financial measure and is the sum of the Company’s loss and expense ratios.

Premiums

The following table summarizes the change in premium volume by reportable segment:


	Quarters Ended June 30,
	Belmont Core				Belmont Non-Core					Total
(Dollars in thousands)	2025		2024		2025			2024		2025		2024
Direct written premiums (1)	$	97,774	$	94,057	$	31		$	11	$	97,805	$	94,068
Assumed written premiums (2)		12,045		6,495		(3,049	)		143		8,996		6,638
Gross written premiums (3)	$	109,819	$	100,552	$	(3,018	)	$	154	$	106,801	$	100,706
Net written premiums (4)	$	106,873	$	97,602	$	(2,959	)	$	149	$	103,914	$	97,751


	Six Months Ended June 30,
	Belmont Core				Belmont Non-Core						Total
(Dollars in thousands)	2025		2024		2025			2024			2025		2024
Direct written premiums (1)	$	185,240	$	185,189	$	118		$	103		$	185,358	$	185,292
Assumed written premiums (2)		22,968		9,411		(2,850	)		(509	)		20,118		8,902
Gross written premiums (3)	$	208,208	$	194,600	$	(2,732	)	$	(406	)	$	205,476	$	194,194
Net written premiums (4)	$	202,507	$	190,198	$	(2,729	)	$	(362	)	$	199,778	$	189,836

(1)

Direct written premiums represent the amount received or to be received for insurance policies written, without reduction for reinsurance costs, ceded premiums or other deductions.

(2)

Assumed written premiums represent the amount received or to be received for assumed reinsurance treaties, without reduction for reinsurance costs, ceded premiums or other deductions.

(3)

Gross written premiums equal the sum of direct and assumed written premiums.

(4)

Net written premiums equal gross written premiums less ceded written premiums.

Gross written premiums increased by 6.1% to $106.8 million for the quarter ended June 30, 2025 compared to $100.7 million for the same period in 2024 and increased 5.8% to $205.5 million for the six months ended June 30, 2025 compared to $194.2 million for the same period in 2024.

Direct written premium produced by the Agency and Insurance Services segment for Belmont Core:


	Quarters Ended June 30,							Six Months Ended June 30,
(Dollars in thousands)	2025		2024		% Change			2025		2024		% Change
Wholesale Commercial	$	69,075	$	63,877		8.1	%	$	133,957	$	124,932		7.2	%
Vacant Express		12,370		9,731		27.1	%		23,291		18,585		25.3	%
Collectibles		4,186		4,014		4.3	%		8,285		7,668		8.0	%
Direct written premiums excluding specialty products		85,631		77,622		10.3	%		165,533		151,185		9.5	%
Specialty Products		12,143		16,435		(26.1	%)		19,707		34,004		(42.0	%)
Total direct written premiums	$	97,774	$	94,057		4.0	%	$	185,240	$	185,189		0.0	%

•

In the aggregate, direct written premiums for Wholesale Commercial, Vacant Express, and Collectibles grew by 10.3% and 9.5% for the quarter and six months ended June 30, 2025, respectively, as compared to same periods in 2024. This growth was driven by premium rate increases, new agency appointments, organic growth of existing agents, and new products.

•

Direct written premiums for Specialty Products declined by 26.1% and 42.0% for the quarter and six months ended June 30, 2025, respectively, as compared to same periods in 2024 due to terminating products not meeting profitability expectations. Excluding terminated business, growth in direct written premiums would have been 32.4% and 20.4% for the quarter and six months ended June 30, 2025, respectively.

Assumed written premium produced by the Belmont segments:


	Quarters Ended June 30,								Six Months Ended June 30,
(Dollars in thousands)	2025			2024		% Change			2025			2024			% Change
Belmont Core	$	12,045		$	6,495		85.5	%	$	22,968		$	9,411			144.1	%
Belmont Non-Core		(3,049	)		143	NM				(2,850	)		(509	)	NM
Total assumed written premiums	$	8,996		$	6,638		35.5	%	$	20,118		$	8,902			126.0	%

NM - not meaningful

•

Belmont Core's assumed business grew to $12.0 million and $23.0 million for the quarter and six months ended June 30, 2025, respectively, from $6.5 million and $9.4 million for the same period in 2024 due to new treaties incepting during 2024 and 2025.

•

Belmont Non-Core's business represents run-off premium from non-renewed treaties.

Underwriting Income (Loss)

The components of income (loss) from the Company’s reportable segments and corresponding underwriting ratios are as follows:


	Quarters Ended June 30,
	Agency and Insurance Services				Belmont Core						Belmont Non-Core						Eliminations					Total
(Dollars in thousands)	2025		2024		2025			2024			2025			2024			2025			2024		2025			2024
Revenues:
Net earned premiums	$	—	$	—	$	97,513		$	89,353		$	(2,367	)	$	3,461		$	—		$	—	$	95,146		$	92,814
Commission and service fee income (1)		14,851		—		—			—			—			—			(14,851	)		—		—			—
Policy and installment fee income		499		—		—			344			41			13			—			—		540			357
Total revenues		15,350		—		97,513			89,697			(2,326	)		3,474			(14,851	)		—		95,686			93,171
Losses and expenses:
Net losses and loss adjustment expenses		—		—		56,109			51,126			(2,829	)		2,536			(332	)		—		52,948			53,662
Net commission expenses		—		—		34,079			20,589			(780	)		1,094			(11,456	)		—		21,843			21,683
Other underwriting expenses		13,042		—		4,591			13,309			502			976			(3,063	)		—		15,072			14,285
Total losses and expenses		13,042		—		94,779			85,024			(3,107	)		4,606			(14,851	)		—		89,863			89,630
Underwriting income (loss)	$	2,308	$	—	$	2,734		$	4,673		$	781		$	(1,132	)	$	—		$	—	$	5,823		$	3,541

Underwriting Ratios:
Loss ratio:
Current accident year						56.1	%		57.7	%		62.3	%		62.2	%							55.6	%		57.9	%
Prior accident year						1.4	%		(0.5	%)		57.2	%		11.1	%							—			(0.1	%)
Calendar year loss ratio						57.5	%		57.2	%		119.5	%		73.3	%							55.6	%		57.8	%
Expense ratio						39.7	%		38.0	%		11.8	%		59.8	%							38.8	%		38.8	%
Combined ratio						97.2	%		95.2	%		131.3	%		133.1	%							94.4	%		96.6	%

Accident year combined ratio						95.7	%		95.7	%		63.6	%		122.0	%							94.6	%		96.7	%

(1) Consists of intersegment revenues, which are eliminated in consolidation.

The Company generated underwriting income of $5.8 million for the quarter ended June 30, 2025 compared to $3.5 million of underwriting income for the same period in 2024. The current accident year combined ratio improved 2.1 points to 94.6% for the quarter ended June 30, 2025 from 96.7% for the same period in 2024.

•

Net earned premiums within the Belmont Core segment increased by 9.1% to $97.5 million for the quarter ended June 30, 2025 compared to $89.4 million for the same period in 2024 due to growth in its gross written premiums. Property net earned premiums were $40.4 million and $39.1 million for the quarters ended June 30, 2025 and 2024, respectively. Casualty net earned premiums were $57.1 million and $50.2 million for the quarters ended June 30, 2025 and 2024, respectively.

•

Agency and Insurance Services segment recorded $11.5 million of commission income on direct premiums produced for Belmont Core and $3.4 million of service fee income for technology and claims services provided to Belmont Core and Non-Core segments during the quarter ended June 30, 2025. There were no revenues for

2024 since these affiliated agreements incepted on January 1, 2025. The commission and service fee income for the Agency and Insurance Services segment are eliminated in the Company's Consolidated Financial Statements.

•

Policy and installment fee income was $0.5 million and $0.4 million for the quarters ended June 30, 2025 and 2024, respectively.

•

The current accident year loss ratio improved by 2.3 points to 55.6% for the quarter ended June 30, 2025 compared to 57.9% for the same period in 2024 primarily driven by an improvement in the non-catastrophe property loss ratio.

•

Net losses and loss adjustment expenses related to prior accident years were less than $0.1 million for the quarters ended June 30, 2025 and 2024. Please see Note 6 of the notes to the consolidated financial statements in Item 1 of Part I of this report for further discussion on prior accident year development.


	Six Months Ended June 30,
	Agency and Insurance Services				Belmont Core						Belmont Non-Core						Eliminations					Total
(Dollars in thousands)	2025		2024		2025			2024			2025			2024			2025			2024		2025			2024
Revenues:
Net earned premiums	$	—	$	—	$	189,773		$	178,485		$	(1,311	)	$	10,908		$	—		$	—	$	188,462		$	189,393
Commission and service fee income (1)		28,900		—		—			—			—			—			(28,900	)		—		—			—
Policy and installment fee income		886		—		—			683			71			19			—			—		957			702
Total revenues		29,786		—		189,773			179,168			(1,240	)		10,927			(28,900	)		—		189,419			190,095
Losses and expenses:
Net losses and loss adjustment expenses		—		—		122,561			100,035			(2,210	)		7,011			(665	)		—		119,686			107,046
Net commission expenses		—		—		66,483			41,480			(279	)		3,626			(22,027	)		—		44,177			45,106
Other underwriting expenses		25,674		—		9,577			27,345			1,202			1,786			(6,208	)		—		30,245			29,131
Total losses and expenses		25,674		—		198,621			168,860			(1,287	)		12,423			(28,900	)		—		194,108			181,283
Underwriting income (loss)	$	4,112	$	—	$	(8,848	)	$	10,308		$	47		$	(1,496	)	$	—		$	—	$	(4,689	)	$	8,812

Underwriting Ratios:
Loss ratio:
Current accident year						63.9	%		56.3	%		63.0	%		61.1	%							63.5	%		56.6	%
Prior accident year						0.7	%		(0.3	%)		105.6	%		3.2	%							—			(0.1	%)
Calendar year loss ratio						64.6	%		56.0	%		168.6	%		64.3	%							63.5	%		56.5	%
Expense ratio						40.1	%		38.6	%		(70.4	%)		49.6	%							39.5	%		39.2	%
Combined ratio						104.7	%		94.6	%		98.2	%		113.9	%							103.0	%		95.7	%

Accident year combined ratio						104.0	%		94.8	%		(15.8	%)		110.7	%							103.0	%		95.8	%

(1) Consists of intersegment revenues, which are eliminated in consolidation.

Underwriting loss of $4.7 million for the six months ended June 30, 2025 includes net losses and loss adjustment expenses related to California Wildfires in January 2025 ("California Wildfires"), totaling $15.7 million, compared to $8.8 million of underwriting income for the same period in 2024. Excluding California Wildfires, the underwriting income was $11.0 million for the six months ended June 30, 2025. The current accident year combined ratio, excluding the impact of the

California Wildfires of 8.3 points, was 94.7% for the six months ended June 30, 2025 compared to 95.8% for the same period in 2024.

•

Net earned premiums within the Belmont Core segment increased by 6.3% to $189.8 million for the six months ended June 30, 2025 compared to $178.5 million for the same period in 2024 due to growth in its gross written premiums. Property net earned premiums were $78.1 million and $79.0 million for the six months ended June 30, 2025 and 2024, respectively. Casualty net earned premiums were $111.7 million and $99.5 million for the six months ended June 30, 2025 and 2024, respectively.

•

Agency and Insurance Services segment recorded $22.0 million of commission income on direct premiums produced for Belmont Core and $6.9 million of service fee income for technology and claims services provided to Belmont Core and Non-Core segments for the six months ended June 30, 2025. There were no revenues for 2024 since these affiliated agreements incepted on January 1, 2025. The commission and service fee income for the Agency and Insurance Services segment are eliminated in the Company's Consolidated Financial Statements.

•

Policy and installment fee income was $1.0 million and $0.7 million for the six months ended June 30, 2025 and 2024, respectively.

•

The current accident year loss ratio increased by 6.9 points to 63.5% for the six months ended June 30, 2025 compared to 56.6% for the same period in 2024 driven by the California Wildfires which impacted the current accident year loss ratio by 8.3 points.

•

Net losses and loss adjustment expenses related to prior accident years were less than $0.1 million for the six months ended June 30, 2025 and 2024. Please see Note 6 of the notes to the consolidated financial statements in Item 1 of Part I of this report for further discussion on prior accident year development.

The current accident year net losses and loss adjustment expenses and loss ratio are summarized as follows:


	Quarters Ended June 30,							Quarters Ended June 30,
(Dollars in thousands)	2025		2024		% Change			2025			2024			Point Change
Property
Non-catastrophe	$	16,206	$	18,500		(12.4	%)		40.0	%		47.4	%		(7.4	)
Catastrophe		5,202		3,523		47.7	%		12.9	%		9.0	%		3.9
Total property		21,408		22,023		(2.8	%)		52.9	%		56.4	%		(3.5	)
Casualty		31,538		31,721		(0.6	%)		57.7	%		59.0	%		(1.3	)
Total accident year	$	52,946	$	53,744		(1.5	%)		55.6	%		57.9	%		(2.3	)

•

The current accident year non-catastrophe property loss ratio improved by 7.4 points during the quarter ended June 30, 2025 as compared to the same period in 2024 driven by lower claims frequency.

•

The current accident year catastrophe loss ratio increased by 3.9 points during the quarter ended June 30, 2025 as compared to the same period in 2024 recognizing higher claims severity.

•

The current accident year casualty loss ratio improved by 1.3 points during the quarter ended June 30, 2025 mainly driven by improved pricing from rate increases in 2024.


	Six Months Ended June 30,							Six Months Ended June 30,
(Dollars in thousands)	2025		2024		% Change			2025			2024			Point Change
Property losses
Non-catastrophe	$	33,174	$	35,247		(5.9	%)		42.4	%		44.6	%		(2.2	)
Catastrophe		23,069		6,796		239.4	%		29.5	%		8.6	%		20.9
Property losses		56,243		42,043		33.8	%		71.9	%		53.2	%		18.7
Casualty losses		63,438		65,084		(2.5	%)		57.5	%		59.0	%		(1.5	)
Total accident year losses	$	119,681	$	107,127		11.7	%		63.5	%		56.6	%		6.9

•

The current accident year non-catastrophe property loss ratio was 42.4% for the six months ended June 30, 2025 compared to 44.6% for the same period in 2024, an improvement of 2.2 points driven by lower claims frequency.

•

The current accident year catastrophe net losses and loss adjustment expenses increased to $23.1 million for the six months ended June 30, 2025 compared to $6.8 million for the same period in 2024. Excluding the California Wildfires, catastrophe net losses and loss adjustment expenses would have been $7.4 million or a loss ratio of 9.4% for the six months ended June 30, 2025 compared to $6.8 million of catastrophe net losses and loss adjustment expenses or an 8.6% catastrophe loss ratio for the same period in 2024.

•

The current accident year casualty loss ratio improved by 1.5 points for the six months ended June 30, 2025 mainly driven by improved pricing from rate increases in 2024.

The following table summarizes the components of the expense ratio for the quarters and six months ended June 30, 2025 and 2024:


	Quarters Ended June 30,						Point			Six Months Ended June 30,						Point
	2025			2024			Change			2025			2024			Change
Net commission expenses		23.0	%		23.4	%		(0.4	)		23.4	%		23.8	%		(0.4	)
Other underwriting expenses		15.8	%		15.4	%		0.4			16.1	%		15.4	%		0.7
Expense Ratio		38.8	%		38.8	%		0.0			39.5	%		39.2	%		0.3

•

The increase in the expense ratio for the six months ended June 30, 2025 is primarily due to decline in earned premiums within Belmont Non-Core partially offset by a decrease in the commission expense ratio due to mix of business.

Net investment income

Net investment income decreased 3.9% to $14.7 million for the quarter ended June 30, 2025 from $15.3 million for the same period in 2024 and decreased 1.1% to $29.5 million for the six months ended June 30, 2025 from $29.8 million for the same period in 2024 mainly driven by performance in limited partnerships offset by improved yield on fixed maturities.


	Quarters Ended June 30,								Six Months Ended June 30,
(Dollars in thousands)	2025			2024		Change			2025			2024		Change
Fixed maturities	$	15,315		$	14,977		338		$	30,183		$	28,900		1,283
Limited partnerships		(608	)		334		(942	)		(694	)		931		(1,625	)
Net investment income	$	14,707		$	15,311		(604	)	$	29,489		$	29,831		(342	)

•

Net investment income from the Company’s fixed maturities portfolio increased 2.3% and 4.4% for the quarter and six months ended June 30, 2025, respectively, as compared to the same periods in 2024 due to an improved yield. The book yield on the Company’s fixed maturities portfolio was 4.54% and 4.47% as of June 30, 2025 and June 30, 2024, respectively. During the six months ended June 30, 2025, approximately $400 million of the fixed maturities portfolio was reinvested at 5.5%, consisting of high quality corporates and structured securities. As a result of this strategy, duration increased to 1.2 as of June 30, 2025 compared to duration of 0.8 as of December 31, 2024.

•

Income from limited partnerships declined to a loss of $0.7 million for the six months ended June 30, 2025 compared to a gain of $0.9 million for the same period in 2024 mainly due to the decline in fair value in one of the Company's limited partnership investments.

The Company's fixed maturities portfolio continues to maintain high quality with an AA- average rating and consist of the following:


(Dollars in thousands)	June 30, 2025		December 31, 2024
Structured bonds (1)	$	437,323	$	259,915
Other fixed maturities		326,640		246,747
U.S. treasuries		572,381		875,246
Total fixed maturities	$	1,336,344	$	1,381,908

(1) Structured bonds include asset-backed, mortgage-backed, commercial mortgage-backed and collateralized mortgage obligations.

Excluding the structured bonds, the average duration of the Company’s fixed maturities portfolio was 0.6 years as of June 30, 2025, compared with 0.5 years as of December 31, 2024. Structured bonds are subject to conditional prepayment rates whereas the remaining bonds have a set maturity date. Changes in interest rates can cause principal payments on structured bonds to extend or shorten which can impact duration.

Net Realized Investment Gains

The components of net realized investment gains for the quarters and six months ended June 30, 2025 and 2024 were as follows:


	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2025			2024			2025			2024
Equity securities	$	161		$	212		$	284		$	1,084
Fixed maturities		(34	)		(7	)		(21	)		(32	)
Net realized investment gains	$	127		$	205		$	263		$	1,052

See Note 2 of the notes to the consolidated financial statements in Item 1 of Part I of this report for an analysis of total investment return on a pre-tax basis for the quarters and six months ended June 30, 2025 and 2024.

Corporate Expenses

Corporate expenses consist of outside legal fees, other professional fees, directors’ fees, management fees & advisory fees, salaries and benefits for holding company personnel, development costs for new products, impairment losses, and taxes incurred which are not directly related to operations.

Corporate expenses increased $1.1 million to $7.5 million for the quarter ended June 30, 2025 from $6.4 million for the same period in 2024 primarily due to an increase in professional fees related to Company’s newly formed agency and insurance services companies.

Corporate expenses increased $4.3 million to $17.0 million for the six months ended June 30, 2025 compared to $12.8 million for the same period in 2024 primarily driven by $2.9 million of advisory fees consisting mainly of stock compensation approved and granted by the Board of Directors to Fox Paine & Company, LLC in the first quarter of 2025 related to the Company’s internal reorganization and employee costs and professional fees related to investment in the Company’s newly formed agency and insurance services companies. See Note 8 of the notes to the consolidated financial statements in Item 1 of Part I of this report for additional information on the advisory fee.

Income Tax Expense

Income tax expense was $2.8 million on net income before tax of $13.1 million for the quarter ended June 30, 2025. This compares to income tax expense of $2.6 million on net income before tax of $12.7 million for the same period in 2024.

Income tax expense was $1.7 million on net income before tax of $8.0 million for the six months ended June 30, 2025. This compares to income tax expense of $5.5 million on net income before tax of $26.9 million for the same period in 2024.

See Note 5 of the notes to the consolidated financial statements in Item 1 of Part I of this report for a comparison of income tax between periods.

Net Income

The Company had net income of $10.3 million during the quarter ended June 30, 2025 compared to net income of $10.1 million for the same period in 2024. The Company had net income of $6.4 million during the six months ended June 30, 2025. Excluding the California Wildfires net losses and loss adjustment expenses of $12.2 million after tax, net income would have been $18.8 million for the six months ended June 30, 2025 compared to net income of $21.5 million for the same period in 2024.

Reserves

Amounts recorded for unpaid losses and loss adjustment expenses represent management’s best estimate at June 30, 2025. Management’s best estimate is as of a particular point in time and is based upon known facts, the Company’s actuarial analyses, current law, and the Company’s judgment. This resulted in carried gross reserves of $776.1 million and $800.4 million as of June 30, 2025 and December 31, 2024, respectively, and net reserves of $716.6 million and $739.6 million as of June 30, 2025 and December 31, 2024, respectively. A breakout of the Company’s gross and net reserves is as follows:


	June 30, 2025
	Gross Reserves						Net Reserves (2)
(Dollars in thousands)	Case		IBNR (1)		Total		Case		IBNR (1)		Total
Belmont Core	$	151,344	$	299,491	$	450,835	$	150,705	$	290,806	$	441,511
Belmont Non-Core		109,274		216,018		325,292		73,667		201,471		275,138
Total	$	260,618	$	515,509	$	776,127	$	224,372	$	492,277	$	716,649


	December 31, 2024
	Gross Reserves						Net Reserves (2)
(Dollars in thousands)	Case		IBNR (1)		Total		Case		IBNR (1)		Total
Belmont Core	$	146,261	$	298,925	$	445,186	$	146,197	$	289,955	$	436,152
Belmont Non-Core		104,145		251,060		355,205		67,055		236,430		303,485
Total	$	250,406	$	549,985	$	800,391	$	213,252	$	526,385	$	739,637

(1)

Net losses and loss adjustment expenses incurred but not reported, including the expected future emergence of case reserves.

(2)

Does not include reinsurance receivables on paid net losses and loss adjustment expenses.

Gross and net reserves related to Belmont Non-Core are declining as it services the run-off of policies/treaties on de-emphasized and terminated business.

Each reserve category has an implicit frequency and severity for each accident year as a result of the various assumptions made. If the actual levels of frequency and severity are higher or lower than expected, the ultimate net losses and loss adjustment expenses will be different than management’s best estimate. For most of its reserve categories, the Company believes that frequency can be predicted with greater accuracy than severity. Therefore, the Company believes management’s best estimate is more likely influenced by changes in severity than frequency. The following table, which the Company believes reflects a reasonable range of variability around its best estimate based on historical experience and management’s judgment, reflects the impact of changes (which could be favorable or unfavorable) in frequency and severity

on the Company’s current accident year net losses and loss adjustment expenses estimate of $119.7 million for claims occurring during the six months ended June 30, 2025:


		Severity Change
(Dollars in thousands)		-10%			-5%			0%			5%			10%
Frequency Change	-5%		(17,354	)		(11,669	)		(5,984	)		(299	)		5,386
	-3%		(15,199	)		(9,395	)		(3,590	)		2,214			8,019
	-2%		(14,122	)		(8,258	)		(2,394	)		3,471			9,335
	-1%		(13,045	)		(7,121	)		(1,197	)		4,727			10,652
	0%		(11,968	)		(5,984	)		—			5,984			11,968
	1%		(10,891	)		(4,847	)		1,197			7,241			13,285
	2%		(9,814	)		(3,710	)		2,394			8,497			14,601
	3%		(8,737	)		(2,573	)		3,590			9,754			15,918
	5%		(6,582	)		(299	)		5,984			12,267			18,551

The Company’s net reserves for losses and loss adjustment expenses of $716.6 million as of June 30, 2025 relate to multiple accident years. Therefore, the impact of changes in frequency and severity for more than one accident year could be higher or lower than the amounts reflected above.

Reconciliation of non-GAAP financial measures and ratios

The tables below reconcile the non-GAAP financial measures or ratios, which excludes the impact of prior accident year adjustments and the California Wildfires, to its most directly comparable GAAP measure or ratio. The Company believes the non-GAAP financial measures or ratios are useful to investors when evaluating the Company's underwriting performance as trends in the Company's segments may be obscured by prior accident year adjustments and the California Wildfires. These non-GAAP financial measures or ratios should not be considered as a substitute for the most directly comparable GAAP measures or ratios and do not reflect the overall underwriting profitability of the Company.


	Quarters Ended June 30,												Six Months Ended June 30,
	2025						2024						2025						2024
(Dollars in thousands)	Net losses and loss adjustment expenses			Loss Ratio			Net losses and loss adjustment expenses			Loss Ratio			Net losses and loss adjustment expenses			Loss Ratio			Net losses and loss adjustment expenses			Loss Ratio
Property
Non catastrophe property excluding the effect of prior accident year (1)	$	16,206			40.0	%	$	18,500			47.4	%	$	33,174			42.4	%	$	35,247			44.6	%
Effect of prior accident year		(5,619	)		(13.9	%)		(851	)		(2.2	%)		(6,179	)		(7.9	%)		(987	)		(1.2	%)
Non catastrophe property (2)	$	10,587			26.1	%	$	17,649			45.2	%	$	26,995			34.5	%	$	34,260			43.4	%

Catastrophe excluding the effect of prior accident year (1)	$	5,202			12.9	%	$	3,523			9.0	%	$	23,069			29.5	%	$	6,796			8.6	%
Effect of prior accident year		(377	)		(0.9	%)		426			1.1	%		(634	)		(0.8	%)		368			0.5	%
Catastrophe (2)	$	4,825			12.0	%	$	3,949			10.1	%	$	22,435			28.7	%	$	7,164			9.1	%

Total property excluding the effect of prior accident year (1)	$	21,408			52.9	%	$	22,023			56.4	%	$	56,243			71.9	%	$	42,043			53.2	%
Effect of prior accident year		(5,996	)		(14.8	%)		(425	)		(1.1	%)		(6,813	)		(8.7	%)		(619	)		(0.7	%)
Total property (2)	$	15,412			38.1	%	$	21,598			55.3	%	$	49,430			63.2	%	$	41,424			52.5	%

Casualty
Total casualty excluding the effect of prior accident year (1)	$	31,538			57.7	%	$	31,721			59.0	%	$	63,438			57.5	%	$	65,084			59.0	%
Effect of prior accident year		5,998			10.9	%		343			0.6	%		6,818			6.2	%		538			0.5	%
Total casualty (2)	$	37,536			68.6	%	$	32,064			59.6	%	$	70,256			63.7	%	$	65,622			59.5	%

Total
Total property and casualty excluding the effect of prior accident year (1)	$	52,946			55.6	%	$	53,744			57.9	%	$	119,681			63.5	%	$	107,127			56.6	%
Effect of prior accident year		2			—			(82	)		(0.1	%)		5			—			(81	)		(0.1	%)
Total property and casualty (2)	$	52,948			55.6	%	$	53,662			57.8	%	$	119,686			63.5	%	$	107,046			56.5	%

(1)

Non-GAAP financial measure / ratio.

(2)

Most directly comparable GAAP measure / ratio.

Reconciliation of non-GAAP financial measures and ratios continued


	Six Months Ended June 30,
(Dollars in thousands)	2025			2024

Current accident year underwriting income excluding California Wildfires
Underwriting income (loss) (1)	$	(4,689	)	$	8,812
Effect of prior accident year		(53	)		(81	)
Current accident year underwriting income (loss) (2)		(4,742	)		8,731
California Wildfires net losses and loss adjustment expenses		15,684			—
Current accident year underwriting income excluding California Wildfires (2)	$	10,942		$	8,731

Net income excluding California Wildfires
Net income (loss) (1)	$	6,355		$	21,459
California Wildfires net losses and loss adjustment expenses (net of tax) (3)		12,406			—
Net income excluding California Wildfires (2)	$	18,761		$	21,459

Underwriting income excluding California Wildfires net losses and loss adjustment expenses
Underwriting income (loss) (1)	$	(4,689	)	$	8,812
California Wildfires net losses and loss adjustment expenses		15,684			—
Underwriting income excluding California Wildfires (2)	$	10,995		$	8,812

Current accident year catastrophe net losses and loss adjustment expenses excluding California Wildfires
Current accident year catastrophe net losses and loss adjustment expenses (4)	$	23,069		$	6,796
California Wildfires net losses and loss adjustment expenses		(15,684	)		—
Current accident year catastrophe net losses and loss adjustment expenses excluding California Wildfires (2)	$	7,385		$	6,796

Current accident year combined ratio excluding California Wildfires
Combined ratio (1)		103.0	%		95.7	%
Effect of prior accident year		—			0.1	%
Current accident year combined ratio (2)		103.0	%		95.8	%
Impact of California Wildfires		(8.3	%)		—
Current accident year combined ratio excluding California Wildfires (2)		94.7	%		95.8	%

Current accident year catastrophe loss ratio excluding California Wildfires (2)
Current accident year catastrophe loss ratio (4)		29.5	%		8.6	%
Impact of California Wildfires		(20.1	%)		—
Current accident year catastrophe loss ratio excluding California Wildfires (2)		9.4	%		8.6	%

(1) Most directly comparable GAAP measure / ratio.

(2) Non-GAAP financial measure / ratio.

(3) Represents net losses and loss adjustment expenses of $15.7 million less tax benefit of $3.3 million.

(4) See previous table for reconciliation of non-GAAP financial measures or ratios for current accident year catastrophe net losses and loss adjustment expenses.


Large accelerated filer	☐;	Accelerated filer	☒;

Non-accelerated filer	☐;	Smaller reporting company	☐;

Emerging growth company	☐


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Shares	GBLI	New York Stock Exchange


			Page
	PART I – FINANCIAL INFORMATION

Item 1.		Financial Statements:	3

		Consolidated Balance Sheets As of June 30, 2025 (Unaudited) and December 31, 2024	3

		Consolidated Statements of Operations Quarters and Six Months Ended June 30, 2025 (Unaudited) and June 30, 2024 (Unaudited)	4

		Consolidated Statements of Comprehensive Income (Loss) Quarters and Six Months Ended June 30, 2025 (Unaudited) and June 30, 2024 (Unaudited)	5

		Consolidated Statements of Changes in Shareholders’ Equity Quarters and Six Months Ended June 30, 2025 (Unaudited) and June 30, 2024 (Unaudited)	6

		Consolidated Statements of Cash Flows Six Months Ended June 30, 2025 (Unaudited) and June 30, 2024 (Unaudited)	7

		Notes to Consolidated Financial Statements (Unaudited)	8

Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations	32

Item 3.		Quantitative and Qualitative Disclosures about Market Risk	47

Item 4.		Controls and Procedures	48

	PART II – OTHER INFORMATION

Item 1.		Legal Proceedings	49

Item 1A.		Risk Factors	49

Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds	49

Item 3.		Defaults Upon Senior Securities	49

Item 4.		Mine Safety Disclosures	49

Item 5.		Other Information	49

Item 6.		Exhibits	50

Signature			51



31.1+		Certification of Chief Executive Officer pursuant to Rule 13a-14 (a) / 15d-14 (a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2+		Certification of Chief Financial Officer pursuant to Rule 13a-14 (a) / 15d-14 (a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1+		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2+		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema With Embedded Linkbases Document

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)


	GLOBAL INDEMNITY GROUP, LLC
	Registrant


Dated: August 6, 2025	By:	/s/ Brian J. Riley
		Brian J. Riley
		Chief Financial Officer
		(Authorized Signatory and Principal Financial and Accounting Officer)

Delaware

PART II – OTHER INFORMATION