10-Q

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

GLOBAL INDEMNITY GROUP, LLC

Consolidated Balance Sheets

(In thousands, except share amounts)


	(Unaudited) March 31, 2026			December 31, 2025
ASSETS
Fixed maturities:
Available for sale, at fair value (amortized cost: $1,331,715 and $1,330,310; net of allowance for expected credit losses of $0 at March 31, 2026 and December 31, 2025)	$	1,323,562		$	1,325,502
Equity securities, at fair value		26,409			33,673
Other invested assets		10,183			17,097
Total investments		1,360,154			1,376,272
Cash and cash equivalents		34,830			65,542
Premium receivables, net of allowance for expected credit losses of $3,687 at March 31, 2026 and $3,640 at December 31, 2025		71,411			66,969
Reinsurance receivables, net of allowance for expected credit losses of $1,488 at March 31, 2026 and December 31, 2025		64,416			62,595
Funds held by ceding insurers		21,979			22,114
Deferred income taxes		21,818			20,076
Deferred acquisition costs		40,226			41,183
Intangible assets		16,729			16,845
Goodwill		4,820			4,820
Prepaid reinsurance premiums		4,196			3,607
Income tax receivable		—			2,617
Lease right of use assets		7,806			8,166
Other assets		31,731			29,956
Total assets	$	1,680,116		$	1,720,762
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses	$	747,143		$	750,191
Unearned premiums		177,530			182,728
Reinsurance balances payable		3,098			1,860
Payable for securities		4,467			21,594
Contingent commissions		2,828			7,159
Income tax payable		196			—
Lease liabilities		7,902			8,331
Other liabilities		32,842			42,309
Total liabilities	$	976,006		$	1,014,172
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: 12,103,283 and 11,844,995, respectively, (inclusive of class A common shares designated as class A-2 common shares of 780,000 and 550,000, respectively); class A common shares outstanding: 10,815,515 and 10,557,227, respectively (inclusive of class A common shares designated as class A-2 common shares of 780,000 and 550,000, respectively); class B common shares issued and outstanding: 3,793,612 and 3,793,612, respectively		—			—
Additional paid-in capital		466,723			465,720
Accumulated other comprehensive income (loss), net of tax		(6,596	)		(4,000	)
Retained earnings		272,675			273,562
Class A common shares in treasury, at cost: 1,287,768 and 1,287,768 shares, respectively		(32,692	)		(32,692	)
Total shareholders’ equity		704,110			706,590
Total liabilities and shareholders’ equity	$	1,680,116		$	1,720,762

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 March 31,
	2026			2025
Revenues:
Gross written premiums	$	96,450		$	98,675
Ceded written premiums		(3,882	)		(2,811	)
Net written premiums		92,568			95,864
Change in net unearned premiums		5,787			(2,548	)
Net earned premiums		98,355			93,316
Net investment income		12,218			14,782
Net realized investment gains (losses)		(2,243	)		136
Other income		847			417
Total revenues		109,177			108,651

Losses and Expenses:
Net losses and loss adjustment expenses		53,861			66,738
Acquisition costs and other operating expenses		40,763			37,507
Corporate expenses		9,038			9,500
Income (loss) before income taxes		5,515			(5,094	)
Income tax expense (benefit)		1,269			(1,105	)
Net income (loss)	$	4,246		$	(3,989	)
Less: preferred stock distributions		110			110
Net income (loss) available to common shareholders	$	4,136		$	(4,099	)

Per share data:
Net income (loss) available to common shareholders (1)
Basic	$	0.29		$	(0.30	)
Diluted	$	0.29		$	(0.30	)
Weighted-average number of shares outstanding
Basic		14,351,153			13,867,271
Diluted		14,405,235			13,867,271
Cash distributions declared per common share	$	0.35		$	0.35

(1)

For the quarter ended March 31, 2025, “weighted average shares outstanding - basic” was used to calculate “diluted earnings per share” due to a net loss for the period.

See accompanying notes to the consolidated financial statements.

GLOBAL INDEMNITY GROUP, LLC

Consolidated Statements of Comprehensive Income (Loss)

(In thousands)


	(Unaudited) Quarters Ended March 31,
	2026			2025
Net income (loss)	$	4,246		$	(3,989	)

Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses)		(2,622	)		3,571
Reclassification adjustment for gains included in net income (loss)		(15	)		(10	)
Unrealized foreign currency translation gains (losses)		41			(64	)
Other comprehensive income (loss), net of tax		(2,596	)		3,497

Comprehensive income (loss), net of tax	$	1,650		$	(492	)

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 March 31,
	2026			2025
Number of Series A Cumulative Fixed Rate Preferred Shares
Number at beginning and end of period		4,000			4,000
Number of class A common shares issued:
Number at beginning of period		11,844,995			11,202,355
Common shares designated as class A-2 common shares issued under share incentive plans		230,000			550,000
Common shares issued to directors		28,288			16,489
Number at end of period		12,103,283			11,768,844
Number of class B common shares issued:
Number at beginning and end of period		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
Additional paid-in capital:
Balance at beginning of period	$	465,720		$	459,578
Share compensation plans		1,003			3,494
Balance at end of period	$	466,723		$	463,072
Accumulated other comprehensive income (loss), net of deferred income tax:
Balance at beginning of period	$	(4,000	)	$	(10,410	)
Other comprehensive income:
Change in unrealized holding gains		(2,637	)		3,561
Unrealized foreign currency translation gains (losses)		41			(64	)
Other comprehensive income		(2,596	)		3,497
Balance at end of period	$	(6,596	)	$	(6,913	)
Retained earnings:
Balance at beginning of period	$	273,562		$	268,673
Net income (loss)		4,246			(3,989	)
Preferred share distributions		(110	)		(110	)
Distributions to shareholders ($0.35 per share per quarter in 2026 and 2025)		(5,023	)		(4,990	)
Balance at end of period	$	272,675		$	259,584
Number of treasury shares:
Number at beginning and end of period		1,287,768			1,287,768
Treasury shares, at cost:
Balance at beginning and end of period	$	(32,692	)	$	(32,692	)
Total shareholders’ equity	$	704,110		$	687,051

See accompanying notes to the consolidated financial statements.

GLOBAL INDEMNITY GROUP, LLC

Consolidated Statements of Cash Flows

(In thousands)


	(Unaudited) Quarters Ended March 31,
	2026			2025
Cash flows from operating activities:
Net income (loss)	$	4,246		$	(3,989	)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Amortization and depreciation		1,588			1,443
Restricted stock and stock option expense		1,003			3,494
Deferred income taxes		(1,045	)		(1,326	)
Amortization of bond premium and discount, net		(844	)		10,555
Net realized investment losses (gains)		2,243			(136	)
Loss from equity method investments, net of distributions		1,962			239
Changes in:
Premium receivables, net		(4,442	)		7,244
Reinsurance receivables, net		(1,821	)		(2,687	)
Funds held by ceding insurers		188			5,025
Unpaid losses and loss adjustment expenses		(3,048	)		(5,543	)
Unearned premiums		(5,198	)		2,665
Reinsurance balances payable		1,238			(5,395	)
Other assets and liabilities		(12,784	)		(5,303	)
Contingent commissions		(4,331	)		(3,440	)
Income tax receivable / payable		2,813			220
Deferred acquisition costs		957			(553	)
Prepaid reinsurance premiums		(589	)		(116	)
Net cash provided by (used for) operating activities		(17,864	)		2,397
Cash flows from investing activities:
Proceeds from sale of fixed maturities		73,231			39,984
Proceeds from sale of equity securities		3,550			—
Proceeds from maturity of fixed maturities		623,075			705,938
Proceeds from maturity of preferred stock		1,450			—
Proceeds from other invested assets		4,952			5,259
Purchases of fixed maturities		(713,973	)		(684,341	)
Net cash provided by (used for) investing activities		(7,715	)		66,840
Cash flows from financing activities:
Distributions paid to common shareholders		(5,023	)		(4,990	)
Distributions paid to preferred shareholders		(110	)		(110	)
Net cash used for financing activities		(5,133	)		(5,100	)
Net change in cash and cash equivalents		(30,712	)		64,137
Cash and cash equivalents at beginning of period		65,542			17,009
Cash and cash equivalents at end of period	$	34,830		$	81,146
Supplemental disclosure of cash flow information:
Income tax refunds received	$	501			—
Interest paid		—			—

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. As of March 31, 2026, Global Indemnity Group, LLC’s class A common shares (excluding the 780,000 class A common shares designated as class A-2 common shares) are publicly traded on the Nasdaq Global Select Market 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 ended March 31, 2026 and 2025 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 2025 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.

2. Investments

The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of March 31, 2026 and December 31, 2025:


(Dollars in thousands)	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of March 31, 2026
Fixed maturities:
U.S. treasuries	$	675,406	$	—	$	22	$	(165	)	$	675,263
Obligations of states and political subdivisions		14,493		—		—		(384	)		14,109
Mortgage-backed securities		198,081		—		1,112		(3,510	)		195,683
Asset-backed securities		148,969		—		838		(3,828	)		145,979
Commercial mortgage-backed securities		56,197		—		400		(1,457	)		55,140
Corporate bonds		169,967		—		343		(980	)		169,330
Foreign corporate bonds		68,602		—		192		(736	)		68,058
Total fixed maturities	$	1,331,715	$	—	$	2,907	$	(11,060	)	$	1,323,562


(Dollars in thousands)	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of December 31, 2025
Fixed maturities:
U.S. treasuries	$	640,533	$	—	$	216	$	(120	)	$	640,629
Obligations of states and political subdivisions		14,515		—		—		(350	)		14,165
Mortgage-backed securities		199,901		—		2,610		(3,451	)		199,060
Asset-backed securities		139,690		—		1,227		(3,649	)		137,268
Commercial mortgage-backed securities		58,202		—		89		(1,463	)		56,828
Corporate bonds		198,970		—		1,090		(867	)		199,193
Foreign corporate bonds		78,499		—		425		(565	)		78,359
Total fixed maturities	$	1,330,310	$	—	$	5,657	$	(10,465	)	$	1,325,502

As of March 31, 2026 and December 31, 2025, the Company’s investments in equity securities consist of the following:


(Dollars in thousands)	March 31, 2026		December 31, 2025
Common stock	$	15,259	$	21,006
Preferred stock		11,150		12,667
Total	$	26,409	$	33,673

Excluding U.S. treasuries and limited partnerships, the Company did not hold any debt securities or equity investments in a single issuer in excess of 2.7% of shareholders' equity at March 31, 2026 and December 31, 2025, respectively.

The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at March 31, 2026, 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	$	818,421	$	818,354
Due in one year through five years		98,157		97,281
Due in five years through ten years		2,930		2,818
Due after ten years		8,960		8,307
Mortgage-backed securities		198,081		195,683
Asset-backed securities		148,969		145,979
Commercial mortgage-backed securities		56,197		55,140
Total	$	1,331,715	$	1,323,562

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 March 31, 2026. 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	$	398,716	$	(56	)	$	7,652	$	(109	)	$	406,368	$	(165	)
Obligations of states and political subdivisions		1,450		—			12,660		(384	)		14,110		(384	)
Mortgage-backed securities		43,065		(771	)		23,099		(2,739	)		66,164		(3,510	)
Asset-backed securities		49,616		(1,982	)		30,351		(1,846	)		79,967		(3,828	)
Commercial mortgage-backed securities		10,838		(65	)		31,862		(1,392	)		42,700		(1,457	)
Corporate bonds		31,341		(107	)		38,166		(873	)		69,507		(980	)
Foreign corporate bonds		4,626		(43	)		19,787		(693	)		24,413		(736	)
Total fixed maturities	$	539,652	$	(3,024	)	$	163,577	$	(8,036	)	$	703,229	$	(11,060	)

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 December 31, 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	$	21,804	$	(1	)	$	7,643	$	(119	)	$	29,447	$	(120	)
Obligations of states and political subdivisions		—		—			12,714		(350	)		12,714		(350	)
Mortgage-backed securities		15,293		(716	)		24,918		(2,735	)		40,211		(3,451	)
Asset-backed securities		24,080		(1,872	)		31,604		(1,777	)		55,684		(3,649	)
Commercial mortgage-backed securities		13,954		(96	)		32,183		(1,367	)		46,137		(1,463	)
Corporate bonds		2,509		(26	)		48,935		(841	)		51,444		(867	)
Foreign corporate bonds		1,580		(17	)		24,411		(548	)		25,991		(565	)
Total fixed maturities	$	79,220	$	(2,728	)	$	182,408	$	(7,737	)	$	261,628	$	(10,465	)

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 March 31, 2026 and December 31, 2025 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 $4.0 million and $4.8 million as of March 31, 2026 and December 31, 2025, 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 March 31, 2026, gross unrealized losses related to U.S. treasuries were $0.165 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 March 31, 2026, gross unrealized losses related to obligations of states and political subdivisions were $0.384 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 March 31, 2026, gross unrealized losses related to mortgage-backed securities were $3.510 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 March 31, 2026, gross unrealized losses related to asset backed securities were $3.828 million. The weighted average credit enhancement for the Company’s asset backed portfolio is 34.6. 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 March 31, 2026, gross unrealized losses related to the CMBS portfolio were $1.457 million. The weighted average credit enhancement for the Company’s CMBS portfolio is 40.8. 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 March 31, 2026, gross unrealized losses related to corporate bonds were $0.980 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 March 31, 2026, gross unrealized losses related to foreign bonds were $0.736 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 March 31, 2026 and December 31, 2025 were as follows:


(Dollars in thousands)	March 31, 2026			December 31, 2025
Net unrealized gains (losses) from:
Fixed maturities	$	(8,153	)	$	(4,808	)
Foreign currency fluctuations		(88	)		(140	)
Deferred taxes		1,645			948
Accumulated other comprehensive income (loss), net of tax	$	(6,596	)	$	(4,000	)

The following tables present the changes in accumulated other comprehensive income (loss), by components, for the quarters ended March 31, 2026 and 2025:


Quarter Ended March 31, 2026 (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	$	(3,889	)	$	(111	)	$	(4,000	)
Other comprehensive income before reclassification, before tax		(3,324	)		52			(3,272	)
Amounts reclassified from accumulated other comprehensive income (loss), before tax		(21	)		—			(21	)
Other comprehensive income (loss), before tax		(3,345	)		52			(3,293	)
Income tax benefit (expense)		708			(11	)		697
Ending balance, net of tax	$	(6,526	)	$	(70	)	$	(6,596	)


Quarter Ended March 31, 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 (loss) before reclassification, before tax		4,477			(81	)		4,396
Amounts reclassified from accumulated other comprehensive income (loss), before tax		(13	)		—			(13	)
Other comprehensive income (loss), before tax		4,464			(81	)		4,383
Income tax benefit (expense)		(903	)		17			(886	)
Ending balance, net of tax	$	(6,644	)	$	(269	)	$	(6,913	)

The reclassifications out of accumulated other comprehensive income (loss) for the quarters ended March 31, 2026 and 2025 were as follows:


		Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
(Dollars in thousands)		Quarters Ended March 31,
Details about Accumulated Other Comprehensive Income (Loss) Components	Affected Line Item in the Consolidated Statements of Operations	2026			2025
Unrealized gains and losses on available for sale securities	Other net realized investment gains	$	(21	)	$	(13	)
	Income tax expense		6			3
	Total reclassifications, net of tax	$	(15	)	$	(10	)

Net Realized Investment Gains (Losses)

The components of net realized investment gains (losses) for the quarters ended March 31, 2026 and 2025 were as follows:


	Quarters Ended March 31,
(Dollars in thousands)	2026			2025
Fixed maturities:
Gross realized gains	$	24		$	14
Gross realized losses		(3	)		(1	)
Net realized gains (losses)		21			13
Equity securities:
Gross realized gains		5			123
Gross realized losses		(2,269	)		—
Net realized gains (losses)		(2,264	)		123
Total net realized investment gains (losses)	$	(2,243	)	$	136

The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of March 31, 2026 and 2025:


	Quarters Ended March 31,
(Dollars in thousands)	2026			2025
Net gains (losses) recognized during the period on equity securities	$	(2,264	)	$	123
Less: net gains (losses) recognized during the period on equity securities sold during the period		(1,075	)		—
Unrealized gains (losses) recognized during the reporting period on equity securities still held	$	(1,189	)	$	123

The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the quarters ended March 31, 2026 and 2025 were as follows:


	Quarters Ended March 31,
(Dollars in thousands)	2026		2025
Fixed maturities	$	73,231	$	39,984
Equity securities		3,550		—

Net Investment Income

The sources of net investment income for the quarters ended March 31, 2026 and 2025 were as follows:


	Quarters Ended March 31,
(Dollars in thousands)	2026			2025
Fixed maturities	$	13,766		$	14,387
Equity securities		587			116
Cash and cash equivalents		376			856
Other invested assets		(1,962	)		(86	)
Total investment income		12,767			15,273
Investment expense		(549	)		(491	)
Net investment income	$	12,218		$	14,782

The Company’s total investment return on a pre-tax basis for the quarters ended March 31, 2026 and 2025 were as follows:


	Quarters Ended March 31,
(Dollars in thousands)	2026			2025
Net investment income	$	12,218		$	14,782
Net realized investment gains (losses)		(2,243	)		136
Change in unrealized holding gains (losses)		(3,293	)		4,383
Net realized and unrealized investment returns		(5,536	)		4,519
Total investment return	$	6,682		$	19,301
Total investment return % (1)		0.5	%		1.3	%
Average investment portfolio (2)	$	1,405,369		$	1,436,218

(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 March 31, 2026 and December 31, 2025, the Company did not own any fixed maturity securities that were non-income producing for the preceding twelve months.

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 March 31, 2026 and December 31, 2025:


	Estimated Fair Value
(Dollars in thousands)	March 31, 2026		December 31, 2025
On deposit with governmental authorities	$	19,812	$	19,919
Held in trust pursuant to assumed reinsurance contracts		106,723		105,756
Total (1)	$	126,535	$	125,675

(1)

Includes cash and cash equivalents of $3.8 million and $5.8 million at March 31, 2026 and December 31, 2025, 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 $10.2 million and $17.1 million as of March 31, 2026 and December 31, 2025. These investments are accounted for under the equity method. The Company has a variable interest in two of these limited partnership investments (each with an ownership interest exceeding 3%), for which it is not the primary beneficiary.

The carrying value of one of the Company’s VIEs, the European Non-Performing Loan Fund, LP, which invests in distressed securities and assets, was $1.6 million and $1.7 million as of March 31, 2026 and December 31, 2025, respectively. The Company’s maximum loss exposure from this VIE, which factors in future funding commitments of $11.2 million, was $12.9 million as of March 31, 2026 and December 31, 2025, respectively. Since the investment period has concluded, the Company does not expect any capital calls will be made prospectively. The carrying value and maximum loss exposure of a second VIE, the Mortgage Debt Fund, LP, which invests in Real Estate Investment Trust (“REIT”) qualifying assets was $6.1 million and $6.0 million as of March 31, 2026 and December 31, 2025, 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 March 31, 2026 and December 31, 2025 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.


	Fair Value Measurements
As of March 31, 2026 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasuries	$	675,263	$	—	$	—	$	675,263
Obligations of states and political subdivisions		—		14,109		—		14,109
Mortgage-backed securities		—		195,683		—		195,683
Commercial mortgage-backed securities		—		55,140		—		55,140
Asset-backed securities		—		145,979		—		145,979
Corporate bonds		—		169,330		—		169,330
Foreign corporate bonds		—		68,058		—		68,058
Total fixed maturities		675,263		648,299		—		1,323,562
Equity securities		15,259		11,150		—		26,409
Total assets measured at fair value	$	690,522	$	659,449	$	—	$	1,349,971


	Fair Value Measurements
As of December 31, 2025 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasuries	$	640,629	$	—	$	—	$	640,629
Obligations of states and political subdivisions		—		14,165		—		14,165
Mortgage-backed securities		—		199,060		—		199,060
Commercial mortgage-backed securities		—		56,828		—		56,828
Asset-backed securities		—		137,268		—		137,268
Corporate bonds		—		199,193		—		199,193
Foreign corporate bonds		—		78,359		—		78,359
Total fixed maturities		640,629		684,873		—		1,325,502
Equity securities		21,006		12,667		—		33,673
Total assets measured at fair value	$	661,635	$	697,540	$	—	$	1,359,175

The securities classified as Level 1 in the above tables consist of U.S. treasuries and equity securities 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.

Financial Instruments not Carried at Fair Value

Other invested assets consist of limited partnerships whose carrying value approximates fair value. The Company uses the equity method to account for investments in limited partnerships, which requires that its cost basis be updated to account for the income or loss earned on the investment. These investments are booked on a one quarter lag due to non-availability of data at the time the financial statements are prepared. The investment loss associated with the limited partnerships is reflected in the consolidated statements of operations in the amounts of $2.0 million and $0.1 million for the quarters ended March 31, 2026 and 2025, respectively. This investment loss of $2.0 million was attributable to the decline in market value in one of the Company's limited partnership investments during the first quarter of 2026.

The following table provides the carrying value and future funding commitments related to these investments at March 31, 2026 and December 31, 2025.


	March 31, 2026				December 31, 2025
(Dollars in thousands)	Carrying Value		Future Funding Commitment		Carrying Value		Future Funding Commitment
European Non-Performing Loan Fund, LP (1)	$	1,639	$	11,214	$	1,728	$	11,214
Mortgage Debt Fund, LP (2)		6,126		—		6,036		—
Global Debt Fund, LP (3)		2,418		—		9,333		—
Total	$	10,183	$	11,214	$	17,097	$	11,214

(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 March 31, 2026, the Company has an unfunded commitment of $11.2 million. 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 as well as other securities that offer attractive investment opportunities. 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 $4.9 million and $4.4 million were received during the quarters ended March 31, 2026 and 2025, 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 ended March 31, 2026 and 2025, the Company has not adjusted quotes or prices obtained from the pricing vendors.

4. 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 ended March 31, 2026 and 2025:


	Quarters Ended March 31,
(Dollars in thousands)	2026			2025
Beginning balance	$	3,640		$	3,530
Current period provision for expected credit losses		93			(13	)
Write-offs		(46	)		(42	)
Ending balance	$	3,687		$	3,475

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 $1.5 million at March 31, 2026 and December 31, 2025.

5. Income Taxes

Global Indemnity Group, LLC is a publicly traded partnership for U.S. federal income tax purposes and meets the qualifying income exception to maintain partnership status. As a publicly traded partnership, Global Indemnity Group, LLC is generally not subject to federal income tax and most state income taxes. However, income earned by the subsidiaries of Global Indemnity Group, LLC is subject to corporate tax in the United States and certain foreign jurisdictions.

The Company conducts business in the United States where the statutory income tax rate is 21% and performs certain functions in Ireland where the statutory income tax rate is 12.5% on trading income, and in Israel, where the statutory income tax rate is 23%. 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 uses the estimated annual effective tax rate method for calculating its interim tax provision. These rates are revised, if necessary, at the end of each successive interim period to reflect current estimates of the annual effective tax rates.

The effective tax rate was 23.0% for the quarter ended March 31, 2026. The effective tax rate is higher than the statutory tax rate of 21% primarily due to state income taxes and non-deductible executive compensation offset partially by Global Indemnity Group, LLC’s income being treated as a partnership for tax.

The effective tax rate was 21.7% for the quarter ended March 31, 2025. The effective tax rate is higher than the statutory tax rate of 21% primarily due to non-deductible executive compensation offset partially by Global Indemnity Group, LLC’s income being treated as a partnership for tax.

6. 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 March 31,
(Dollars in thousands)	2026		2025
Balance at beginning of period	$	750,191	$	800,391
Less: ceded reinsurance receivables		60,898		60,754
Net balance at beginning of period		689,293		739,637
Net losses and loss adjustment expenses related to:
Current year		53,861		66,735
Prior years		—		3
Total net losses and loss adjustment expenses		53,861		66,738
Paid net losses and loss adjustment expenses related to:
Current year		10,491		17,991
Prior years		48,309		56,267
Total paid net losses and loss adjustment expenses		58,800		74,258
Net balance at end of period		684,354		732,117
Plus: ceded reinsurance receivables		62,789		62,731
Balance at end of period	$	747,143	$	794,848

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.

7. Share-Based Compensation Plans

Options

The Company granted 50,000 time-based stock options during each of the quarters ended March 31, 2026 and 2025 at an exercise price of $28.74 and $36.25 per share, respectively, and both stock option grants will vest on December 31, 2028. No unvested stock options were forfeited during the quarters ended March 31, 2026 or 2025.

Restricted Shares

During the quarters ended March 31, 2026 and 2025, the Company granted 28,288 and 16,489 class A common shares, respectively, at a weighted average grant date value of $28.19 and $35.09 per share, respectively, to non-employee directors of the Company under the Global Indemnity Group, LLC 2023 Share Incentive Plan. All shares granted to non-employee directors of the Company are fully vested but are subject to certain restrictions.

Class A Common Shares Designated as Class A-2 Common Shares

The Company granted 230,000 non-vested class A common shares designated as class A-2 common shares to officers and a director of the Company during the quarter ended March 31, 2026. These shares represent an interest in the profits of the Company in excess of a threshold amount of $391.2 million. These shares vest solely upon the occurrence of a change of control subject to continued service and have an aggregate grant date fair value of $2.4 million. Compensation expense of $2.4 million will be recognized only upon the occurrence of a change of control. No compensation cost was recognized during the quarter ended March 31, 2026.

The Company granted 550,000 class A common shares designated as class A-2 common shares with a threshold amount of $475.3 million to Fox Paine & Company, LLC during the quarter ended March 31, 2025. These shares have a grant date fair value of $11.0 million and additional consideration of $0.2 million in cash. Of the grant date fair value, $2.7 million was recorded in the first quarter of 2025. The remaining $8.3 million will be recognized, if at all, upon the occurrence of a change of control transaction. See Note 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.

Please see Note 13 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2025 Annual Report on Form 10-K for additional information on class A common shares designated as class A-2 common shares.

8. Related Party Transactions

Fox Paine Entities

Pursuant to Global Indemnity Group, LLC’s Third Amended and Restated Limited Liability Company Agreement (“LLCA”), as amended, 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 83.4% of the voting power of Global Indemnity Group, LLC as of March 31, 2026. 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 March 31, 2026 and 2025. Prepaid management fees, which were included in other assets on the consolidated balance sheets, were $1.4 million and $2.3 million as of March 31, 2026 and December 31, 2025, 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. The reorganization was designed to:

•

Establish separate, distinctly branded agency businesses for each business division (Wholesale Commercial, Vacant Express, Collectibles and Specialty Products) to strengthen branding, attract talent and deepen distribution relationships.

•

Create stand-alone business for technology (Kaleidoscope Insurance Technologies, Inc.), and claims services (Liberty Insurance Adjustment Agency, Inc.) that support Belmont Holdings and are positioned to offer services to other insurance industry participants.

•

De-stack the insurance companies within Belmont Holdings, resulting in an increased consolidated surplus and 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.

9. 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 March 31, 2026, the Company has an unfunded commitment of $11.2 million. 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. Shareholders' Equity

Repurchases of the Company's class A common shares

No class A common shares were surrendered, repurchased, or redeemed during the quarters ended March 31, 2026 and 2025. As of March 31, 2026, the Company’s remaining authorization to repurchase shares is $101.0 million.

Please see Note 13 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2025 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 quarter ended March 31, 2026 as follows:


Approval Date	Record Date	Payment Date	Total Distributions Declared (Dollars in thousands)
March 5, 2026	March 20, 2026	March 30, 2026	$	5,023
Total			$	5,023

Quarterly distribution payments of $0.35 per common share were declared during the quarter ended March 31, 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
Total			$	4,990

In addition, distributions paid to Global Indemnity Group, LLC's preferred shareholder were $0.1 million in each of the quarters ended March 31, 2026 and 2025.

There were no accrued distributions related to common shares as of March 31, 2026 and December 31, 2025. Accrued preferred distributions were less than $0.1 million as of both March 31, 2026 and December 31, 2025 and were included in other liabilities on the consolidated balance sheets.

Please see Note 13 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2025 Annual Report on Form 10-K for more information on the Company’s distribution program.

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 March 31,
(Dollars in thousands, except share and per share data)	2026		2025
Numerator:
Net income (loss)	$	4,246	$	(3,989	)
Less: preferred stock distributions		110		110
Net income (loss) available to common shareholders	$	4,136	$	(4,099	)

Denominator:
Weighted average shares for basic earnings per share		14,351,153		13,867,271
Options		54,082		—
Weighted average shares for diluted earnings per share		14,405,235		13,867,271

Net income (loss) per share available to common shareholders (1)
Basic	$	0.29	$	(0.30	)
Diluted	$	0.29	$	(0.30	)

(1)

For the quarter ended March 31, 2025, “weighted average shares outstanding - basic” was used to calculate “diluted earnings per share” due to a net loss for the period.

If the Company had not incurred a loss during the quarter ended March 31, 2025, 13,986,069 weighted average shares would have been used to compute the diluted loss per share calculation. In addition to the basic shares, weighted average shares for the diluted calculation for the quarter ended March 31, 2025 would have included 118,798 share equivalents for options.

The weighted average shares used to compute basic and diluted earnings per share for the quarter ended March 31, 2026 do not include 230,000 non-vested class A common shares designated as class A-2 common shares. Holders of these shares are not entitled to distributions or participation in earnings prior to vesting and therefore are excluded from basic earnings per share. In addition, these shares vest only upon the occurrence of a change of control transaction subject to continued service. Because no change of control occurred during the quarter ended March 31, 2026, the vesting contingency was not satisfied and the shares were excluded from diluted earnings per share. Additionally, the weighted average shares outstanding used to determine dilutive earnings per share does not include options of 650,000 and 166,669 for the quarters ended March 31, 2026 and 2025, respectively, which were deemed to be anti-dilutive.

12. Segment Information

The Company manages its operations through three reportable segments:

•

Agency and Insurance Services includes (i) four agencies focused on sourcing, underwriting, and servicing primary and assumed reinsurance business; and (ii) three specialized insurance service businesses providing technology, AI-enabled marketplace and claims services.

•

Belmont Insurance Companies - Core (“Belmont Core”) - insurance company operations for ongoing direct insurance and assumed reinsurance products written in the excess and surplus lines marketplace.

•

Belmont Insurance Companies - Non-Core (“Belmont Non-Core”) - insurance company operations for lines of business that have been de-emphasized or are no longer being written.

Certain 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.

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 Company's Chief Operating Decision Maker ("CODM"), the Chief Executive Officer of Global Indemnity Group, LLC, 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 ended March 31, 2026 and 2025. Corporate information is included to reconcile segment data to the consolidated financial statements.


Quarter Ended March 31, 2026 (Dollars in thousands)	Agency and Insurance Services			Belmont Core		Belmont Non-Core			Elimination			Total
Revenues:
Gross written premiums	$	—		$	96,507	$	(57	)	$	—		$	96,450
Net written premiums	$	—		$	92,625	$	(57	)	$	—		$	92,568
Net earned premiums	$	—		$	98,371	$	(16	)	$	—		$	98,355
Commission and service fee income (1)		12,778			—		—			(12,390	)		388
Policy and installment fee income		461			—		(2	)		—			459
Total segment revenues		13,239			98,371		(18	)		(12,390	)		99,202
Reconciliation of revenue
Net investment income													12,218
Net realized investment gains (losses)													(2,243	)
Total consolidated revenues												$	109,177

Less: (2)
Net losses and loss adjustment expenses		—			54,304		(2	)		(441	)		53,861
Net commission expenses		—			32,695		167			(9,524	)		23,338
Other operating expenses (3)		13,633			6,130		87			(2,425	)		17,425
Income (loss) from segments	$	(394	)	$	5,242	$	(270	)	$	—		$	4,578

Reconciliation of segment profit (loss)
Unallocated items:
Net investment income													12,218
Net realized investment gains (losses)													(2,243	)
Corporate expenses													(9,038	)
Income (loss) before income taxes													5,515
Income tax expense (benefit)													1,269
Net income (loss)												$	4,246

Segment assets	$	44,924		$	154,957	$	74,995		$	(16,106	)		258,770
Corporate assets													1,421,346
Total assets												$	1,680,116

(1)

Consists of intersegment revenues of $12.4 million, which are eliminated in consolidation, and third party commission and service fee income of $0.4 million in 2026.

(2)

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

(3)

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


Quarter Ended March 31, 2025 (Dollars in thousands)	Agency and Insurance Services		Belmont Core			Belmont Non-Core			Elimination			Total
Revenues:
Gross written premiums	$	—	$	98,389		$	286		$	—		$	98,675
Net written premiums	$	—	$	95,634		$	230		$	—		$	95,864
Net earned premiums	$	—	$	92,260		$	1,056		$	—		$	93,316
Commission and service fee income (1)		14,049		—			—			(14,049	)		—
Policy and installment fee income		387		—			30			—			417
Total segment revenues		14,436		92,260			1,086			(14,049	)		93,733
Reconciliation of revenue
Net investment income													14,782
Net realized investment gains (losses)													136
Total consolidated revenues												$	108,651

Less: (2)
Net losses and loss adjustment expenses		—		66,452			619			(333	)		66,738
Net commission expenses		—		32,404			501			(10,571	)		22,334
Other operating expenses (3)		12,632		4,986			700			(3,145	)		15,173
Income (loss) from segments	$	1,804	$	(11,582	)	$	(734	)	$	—		$	(10,512	)

Reconciliation of segment profit (loss)
Unallocated items:
Net investment income													14,782
Net realized investment gains (losses)													136
Corporate expenses													(9,500	)
Income (loss) before income taxes													(5,094	)
Income tax expense (benefit)													(1,105	)
Net income (loss)												$	(3,989	)

Segment assets	$	41,886	$	153,788		$	86,130		$	(29,871	)		251,933
Corporate assets													1,461,673
Total assets												$	1,713,606

(1)

Consists of intersegment revenues of $14.0 million, 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 operating expenses consist primarily of personnel expenses and general operating expenses related to underwriting activities.

13. New Accounting Pronouncements

Accounting Standards Adopted in 2026

In July 2025, the Financial Accounting Standards Board issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which permits a practical expedient for estimating expected credit losses on certain current receivables and current contract assets arising from ASC 606 revenue transactions by assuming that current conditions as of the balance sheet date do not change over the remaining life of the asset. The Company adopted ASU 2025-05 effective January 1, 2026 and elected this practical expedient. The adoption of this new accounting guidance did not have an impact on the consolidated financial statements for the quarter ended March 31, 2026

Please see Note 21 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2025 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, 2025.

Financial Highlights

2026 First Quarter Results of Operations

•

Current accident year underwriting income was $5.5 million for 2026 compared to a current accident year underwriting loss of $10.3 million for the same period in 2025. The current accident year underwriting loss for 2025 includes net losses and loss adjustment expenses related to California Wildfire events in January 2025 ("California Wildfires") totaling $15.6 million. Excluding California Wildfires in 2025, the current accident year underwriting income increased 4.0% from $5.3 million in 2025 to $5.5 million in 2026.

Current accident year combined ratio was 94.9% in 2026 compared to 111.5% for the same period in 2025. Excluding California Wildfires, the current accident year combined ratio would have been 94.8% in 2025.

•

Excluding California Wildfires in 2025, calendar year underwriting income increased from $5.1 million in 2025 to $5.3 million for 2026.

Calendar year combined ratio was 95.1% in 2026 compared to 111.7% for the same period in 2025. Excluding California Wildfires, the calendar year combined ratio would have been 95.0% in 2025.

•

Gross written premiums were $96.5 million in 2026 compared to $98.7 million for the same period in 2025.

•

Net earned premiums grew 5.4% to $98.4 million in 2026 from $93.3 million in 2025.

•

Net investment income decreased to $12.2 million in 2026 from $14.8 million in 2025 attributable to a $1.9 million reduction in income from investments in limited partnerships (the Company expects a full recovery to be recorded in the 2nd quarter of 2026) and $0.6 million reduction in investment income on the fixed maturities portfolio due to an increase in allocation to U.S. Treasuries.

•

Net income of $4.2 million, or $0.29 per share diluted, in 2026 compared to net loss of $4.0 million, or ($0.30) per share diluted, for the same period in 2025. Excluding California Wildfires, net income would have been $8.2 million or $0.58 per share in 2025.

2026 First Quarter Consolidated Financial Condition

•

Total cash and investments of $1.4 billion at March 31, 2026 and December 31, 2025; fixed maturities and cash comprise 98% of total investments.

•

Total assets of $1.7 billion at March 31, 2026 and December 31, 2025.

•

No debt at March 31, 2026 and December 31, 2025.

•

Since the Company's initial public offering in 2003, the total capital returned to shareholders was $654.6 million, comprising $522.2 million of share repurchases and $132.4 million of distributions / dividends. This includes $5.1 million of distributions during 2026.

•

Shareholders' equity was $704.1 million at March 31, 2026 compared to $706.6 million at December 31, 2025.

•

Book value per common share was $47.92 at March 31, 2026 compared to $48.96 at December 31, 2025.

Results of Operations

The following table summarizes the Company’s results for the quarters ended March 31, 2026 and 2025:


	Quarters Ended March 31,						%
(Dollars in thousands)	2026			2025			Change
Gross written premiums	$	96,450		$	98,675			(2.3	%)
Net written premiums	$	92,568		$	95,864			(3.4	%)

Net earned premiums	$	98,355		$	93,316			5.4	%
Other income		847			417			103.1	%
Segment revenues		99,202			93,733			5.8	%
Losses and expenses:
Net losses and loss adjustment expenses		53,861			66,738			(19.3	%)
Acquisition costs and other operating expenses (1)		40,763			37,507			8.7	%
Segment income (loss)		4,578			(10,512	)		143.6	%
Net investment income		12,218			14,782			(17.3	%)
Net realized investment gains (losses)		(2,243	)		136		NM
Corporate expenses		(9,038	)		(9,500	)		(4.9	%)
Income (loss) before income taxes		5,515			(5,094	)		208.3	%
Income tax (expense) benefit		(1,269	)		1,105			214.8	%
Net income (loss)	$	4,246		$	(3,989	)		206.4	%

Underwriting Ratios:
Loss ratio (2):		54.8	%		71.5	%
Expense ratio (3)		40.3	%		40.2	%
Combined ratio (4)		95.1	%		111.7	%

NM - not meaningful

(1)

Includes third-party distribution expenses of $1.1 million in 2026. There were no third-party distribution expenses in 2025.

(2)

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.

(3)

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

(4)

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 March 31,
	Belmont Core				Belmont Non-Core					Total
(Dollars in thousands)	2026		2025		2026			2025		2026		2025
Gross written premiums (1)	$	96,507	$	98,389	$	(57	)	$	286	$	96,450	$	98,675
Net written premiums (2)	$	92,625	$	95,634	$	(57	)	$	230	$	92,568	$	95,864

(1)

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

(2)

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

Gross written premiums for Belmont Core decreased 1.9%:


	Quarters Ended March 31,
(Dollars in thousands)	2026		2025		% Change
Wholesale Commercial	$	61,495	$	64,884		(5.2	%)
Vacant Express		11,452		10,922		4.9	%
Collectibles		4,616		4,098		12.6	%
Specialty Products		7,747		7,563		2.4	%
Assumed Reinsurance		11,197		10,922		2.5	%
Total gross written premiums	$	96,507	$	98,389		(1.9	%)

•

Wholesale Commercial gross written premiums declined 5.2% during the first quarter of 2026 as the Company maintained its pricing and return standards amidst competitive market conditions, particularly as regards property rate reductions. Wholesale Commercial’s property rate change was flat for the first quarter of 2026.

•

Vacant Express and Collectibles' direct written premiums grew by 4.9% and 12.6%, respectively. This growth was driven by premium rate increases, new agency appointments, and organic growth of existing agents.

•

Direct written premiums for Specialty Products grew by 2.4% due to new products and organic growth from existing products partially offset by a decline in premiums for products terminated in 2025 due to not meeting profitability expectations.

•

Belmont Core's assumed business grew to $11.2 million for the quarter ended March 31, 2026 from $10.9 million for the same period in 2025 due to new treaties incepting during 2025 and 2026 and organic growth from existing treaties.

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

Segment Income (Loss)

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


	Quarters Ended March 31,
	Agency and Insurance Services					Belmont Core						Belmont Non-Core						Eliminations						Total
(Dollars in thousands)	2026			2025		2026			2025			2026			2025			2026			2025			2026			2025
Revenues:
Net earned premiums	$	—		$	—	$	98,371		$	92,260		$	(16	)	$	1,056		$	—		$	—		$	98,355		$	93,316
Commission and service fee income		12,778			14,049		—			—			—			—			(12,390	)		(14,049	)		388			—
Policy and installment fee income		461			387		—			—			(2	)		30			—			—			459			417
Total revenues		13,239			14,436		98,371			92,260			(18	)		1,086			(12,390	)		(14,049	)		99,202			93,733
Losses and expenses:
Net losses and loss adjustment expenses		—			—		54,304			66,452			(2	)		619			(441	)		(333	)		53,861			66,738
Net commission expenses		—			—		32,695			32,404			167			501			(9,524	)		(10,571.0	)		23,338			22,334
Other operating expenses (1)		13,633			12,632		6,130			4,986			87			700			(2,425	)		(3,145	)		17,425			15,173
Total losses and expenses		13,633			12,632		93,129			103,842			252			1,820			(12,390	)		(14,049	)		94,624			104,245
Segment income (loss)	$	(394	)	$	1,804	$	5,242		$	(11,582	)	$	(270	)	$	(734	)	$	—		$	—		$	4,578		$	(10,512	)
Underwriting Ratios:
Loss ratio:
Current accident year							55.2	%		72.0	%		12.5	%		61.5	%								54.8	%		71.5	%
Prior accident year							—			—			—			(2.9	%)								—			—
Calendar year loss ratio							55.2	%		72.0	%		12.5	%		58.6	%								54.8	%		71.5	%
Expense ratio							39.5	%		40.6	%		(1,587.5	%)		113.7	%								40.3	%		40.2	%
Combined ratio							94.7	%		112.6	%		(1,575.0	%)		172.3	%								95.1	%		111.7	%

Accident year combined ratio							94.7	%		112.5	%		(381.3	%)		162.3	%								94.9	%		111.5	%

(1) Other operating expenses consist primarily of personnel expenses and general operating expenses related to underwriting and distribution activities.

Agency and Insurance Services segment

Agency and Insurance Services' segment loss was $0.4 million for the quarter ended March 31, 2026 compared to segment income of $1.8 million for the same period in 2025.

•

Direct written premiums produced for Belmont Core was $80.1 million and $87.5 million for the quarters ended March 31, 2026 and 2025, respectively. Commission income on premiums produced for Belmont Core was $9.5 million and $10.6 million for the quarters ended March 31, 2026 and 2025, respectively, and service fee income for technology and claims services provided to Belmont Core and Non-Core segments was $2.9 million and $3.5 million for the quarters ended March 31, 2026 and 2025, respectively. These amounts are eliminated in the Company's Consolidated Financial Statements.

•

Third-party commission and service fee income of $0.4 million for the quarter ended March 31, 2026. There was no third-party commission and service fee income for the quarter ended March 31, 2025.

•

Policy and installment fee income was $0.5 million and $0.4 million during the quarters ended March 31, 2026 and 2025, respectively.

•

Other operating expenses increased $1.0 million to $13.6 million for the quarter ended March 31, 2026 compared to $12.6 million for the same period in 2025 primarily due to $1.1 million in third-party distribution expenses. There were no third-party distribution expenses in the first quarter of 2025.

Belmont Core segment

Belmont Core's segment income increased 145.3% to $5.2 million for the quarter ended March 31, 2026 compared to a segment loss of $11.6 million for the same period in 2025. Excluding California Wildfires losses of $15.6 million in 2025, Belmont Core's segment income increased from $4.0 million for the quarter ended March 31, 2025 to $5.2 million for the quarter ended March 31, 2026. The current accident year combined ratio improved 17.8 points to 94.7% for quarter ended March 31, 2026 from 112.5% for the same period in 2025 mainly due to the California Wildfires which impacted the combined ratio by 16.9 points in 2025.

•

Net earned premiums within the Belmont Core segment increased by 6.6% to $98.4 million for the quarter ended March 31, 2026 compared to $92.3 million for the same period in 2025. Property net earned premiums were $39.3 million and $37.7 million for the quarters ended March 31, 2026 and 2025, respectively. Casualty net earned premiums were $59.1 million and $54.6 million for the quarters ended March 31, 2026 and 2025, respectively.

•

The current accident year loss ratio improved by 16.8 points to 55.2% for the quarter ended March 31, 2026 compared to 72.0% for the same period in 2025 primarily driven by an improvement in the catastrophe loss ratio. The California Wildfires impacted the 2025 current accident year loss ratio by 16.9 points.

•

Net losses and loss adjustment expenses related to prior accident years was less than $0.1 million for the quarters ended March 31, 2026 and 2025.

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


	Quarters Ended March 31,							Quarters Ended March 31,
(Dollars in thousands)	2026		2025		% Change			2026			2025			Point Change
Property losses
Non-catastrophe	$	17,012	$	17,085		(0.4	%)		43.3	%		45.3	%		(2.0	)
Catastrophe		2,200		17,867		(87.7	%)		5.6	%		47.4	%		(41.8	)
Property losses		19,212		34,952		(45.0	%)		48.9	%		92.7	%		(43.8	)
Casualty losses		35,092		31,467		11.5	%		59.4	%		57.7	%		1.7
Total accident year losses	$	54,304	$	66,419		(18.2	%)		55.2	%		72.0	%		(16.8	)

•

The current accident year non-catastrophe property loss ratio was 43.3% for the quarter ended March 31, 2026 compared to 45.3% for the same period in 2025, an improvement of 2.0 points, driven by lower claims frequency.

•

The current accident year catastrophe net losses and loss adjustment expenses decreased to $2.2 million for the quarter ended March 31, 2026 compared to $17.9 million for the same period in 2025 which included $15.6 million of catastrophe losses related to the California Wildfires. Excluding California Wildfires in 2025, the current accident year catastrophe loss ratio improved from 6.0% for the quarter ended March 31, 2025 to 5.6% for the quarter ended March 31, 2026.

•

The current accident year casualty loss ratio increased by 1.7 points during the quarter ended March 31, 2026 mainly driven by a change in mix of business.

The following table summarizes the components of the expense ratio:


	Quarters Ended March 31,						Point
	2026			2025			Change
Net commission expenses		33.3	%		35.2	%		(1.9	)
Other underwriting expenses		6.2	%		5.4	%		0.8
Expense Ratio		39.5	%		40.6	%		(1.1	)

•

Reduction in net commission expense ratio is primarily due to a change in mix of business, and effective February 1, 2026, the distribution of Specialty Products is managed directly by Belmont Core.

Belmont Non-Core segment

Belmont Non-Core segment comprises lines of business that have been de-emphasized or are no longer being written. Belmont Non-Core recognized a segment loss of $0.3 million and $0.7 million during the quarters ended March 31, 2026 and 2025, respectively.

Net investment income

Net investment income decreased 17.3% to $12.2 million for the quarter ended March 31, 2026 from $14.8 million for the same period in 2025.


	Quarters Ended March 31,
(Dollars in thousands)	2026			2025			Change
Fixed maturities	$	13,593		$	14,752		$	(1,159	)
Equities		587			116			471
Limited partnerships		(1,962	)		(86	)		(1,876	)
Net investment income	$	12,218		$	14,782		$	(2,564	)

•

Net investment income from the Company’s fixed maturities portfolio decreased by 7.9% for the quarter ended March 31, 2026 as compared to the same period in 2025 primarily due to a lower average yield in 2026 as compared to 2025 due to an increase in allocation to U.S. Treasuries.

•

Net investment income from equities increased by $0.5 million to $0.6 million for the quarter ended March 31, 2026 as compared to the same period in 2025 primarily driven by the Company's $25 million investment in common equities during the third quarter of 2025.

•

Income from limited partnerships decreased by $1.9 million for the quarter ended March 31, 2026 which was attributable to the decline in market value in one of the Company's limited partnership investments during the first quarter of 2026. We expect a full recovery related to this investment to be recorded in the second quarter of 2026.

The Company's fixed maturities portfolio continues to maintain high quality with an AA- average rating, duration of 1.0 years, and consists of the following:


(Dollars in thousands)	March 31, 2026		December 31, 2025
Structured bonds (1)	$	396,802	$	393,156
Other fixed maturities		251,497		291,717
U.S. treasuries		675,263		640,629
Total fixed maturities	$	1,323,562	$	1,325,502

(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 0.4 years as of March 31, 2026 compared with 0.5 years as of December 31, 2025. 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 (Losses)

The components of net realized investment gains (losses) for the quarters ended March 31, 2026 and 2025 were as follows:


	Quarters Ended March 31,
(Dollars in thousands)	2026			2025
Equity securities	$	(2,264	)	$	123
Fixed maturities		21			13
Net realized investment gains (losses)	$	(2,243	)	$	136

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 ended March 31, 2026 and 2025.

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 decreased $0.5 million to $9.0 million for the quarter ended March 31, 2026 from $9.5 million for the same period in 2025 primarily due to a reduction in professional and advisory fees partially offset by an increase in severance related compensation.

Income Tax Expense (Benefit)

Income tax expense was $1.3 million on net income before tax of $5.5 million for the quarter ended March 31, 2026. This compares to income tax benefit of $1.1 million on net loss before tax of $5.1 million for the same period in 2025.

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 (Loss)

The Company had net income of $4.2 million during the quarter ended March 31, 2026 compared to net loss of $4.0 million for the same period in 2025.

Reserves

Amounts recorded for unpaid losses and loss adjustment expenses represent management’s best estimate at March 31, 2026. 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 $747.1 million and $750.2 million as of March 31, 2026 and December 31, 2025, respectively, and net reserves of $684.4 million and $689.3 million as of March 31, 2026 and December 31, 2025, respectively. A breakout of the Company’s gross and net reserves is as follows:


	March 31, 2026
	Gross Reserves						Net Reserves (2)
(Dollars in thousands)	Case		IBNR (1)		Total		Case		IBNR (1)		Total
Belmont Core	$	155,526	$	314,211	$	469,737	$	152,806	$	305,830	$	458,636
Belmont Non-Core		101,992		175,414		277,406		71,125		154,593		225,718
Total	$	257,518	$	489,625	$	747,143	$	223,931	$	460,423	$	684,354


	December 31, 2025
	Gross Reserves						Net Reserves (2)
(Dollars in thousands)	Case		IBNR (1)		Total		Case		IBNR (1)		Total
Belmont Core	$	153,062	$	308,084	$	461,146	$	152,468	$	300,278	$	452,746
Belmont Non-Core		102,432		186,613		289,045		71,673		164,874		236,547
Total	$	255,494	$	494,697	$	750,191	$	224,141	$	465,152	$	689,293

(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 loss 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 $53.9 million for claims occurring during the quarter ended March 31, 2026:


		Severity Change
(Dollars in thousands)		-10%			-5%			0%			5%			10%
Frequency Change	-5%		(7,810	)		(5,251	)		(2,693	)		(135	)		2,424
	-3%		(6,840	)		(4,228	)		(1,616	)		996			3,609
	-2%		(6,356	)		(3,716	)		(1,077	)		1,562			4,201
	-1%		(5,871	)		(3,205	)		(539	)		2,128			4,794
	0%		(5,386	)		(2,693	)		—			2,693			5,386
	1%		(4,901	)		(2,181	)		539			3,259			5,979
	2%		(4,417	)		(1,670	)		1,077			3,824			6,571
	3%		(3,932	)		(1,158	)		1,616			4,390			7,164
	5%		(2,962	)		(135	)		2,693			5,521			8,348

The Company’s net reserves for losses and loss adjustment expenses of $684.4 million as of March 31, 2026 relate to multiple accident years. Therefore, the impact of changes in loss 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 in the first table and excludes the impact of prior accident year adjustments and the California Wildfires in the second table, 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 March 31,
	2026						2025
(Dollars in thousands)	Net losses and loss adjustment expenses			Loss Ratio			Net losses and loss adjustment expenses			Loss Ratio
Property - Belmont Core
Non catastrophe property (1)	$	16,984			43.2	%	$	16,649			44.2	%
Effect of prior accident year		28			0.1	%		436			1.1	%
Non catastrophe property excluding the effect of prior accident year (2)	$	17,012			43.3	%	$	17,085			45.3	%

Catastrophe (1)	$	2,207			5.6	%	$	17,990			47.7	%
Effect of prior accident year		(7	)		—			(123	)		(0.3	%)
Catastrophe excluding the effect of prior accident year (2)	$	2,200			5.6	%	$	17,867			47.4	%

Total property (1)	$	19,191			48.8	%	$	34,639			91.9	%
Effect of prior accident year		21			0.1	%		313			0.8	%
Total property excluding the effect of prior accident year (2)	$	19,212			48.9	%	$	34,952			92.7	%

Casualty - Belmont Core
Total casualty (1)	$	35,113			59.4	%	$	31,813			58.3	%
Effect of prior accident year		(21	)		—			(346	)		(0.6	%)
Total casualty excluding the effect of prior accident year (2)	$	35,092			59.4	%	$	31,467			57.7	%

Total - Belmont Core
Total property and casualty (1)	$	54,304			55.2	%	$	66,452			72.0	%
Effect of prior accident year		—			—			(33	)		—
Total property and casualty excluding the effect of prior accident year (2)	$	54,304			55.2	%	$	66,419			72.0	%

(1)

Most directly comparable GAAP measure / ratio.

(2)

Non-GAAP financial measure / ratio.

Reconciliation of non-GAAP financial measures and ratios continued


	Quarters Ended March 31,
(Dollars in thousands)	2026			2025

Consolidated current accident year underwriting income excluding California Wildfires
Underwriting income (loss) (1)	$	5,323		$	(10,512	)
Effect of prior accident year (5)		159			184
Current accident year underwriting income (loss) (2)		5,482			(10,328	)
California Wildfires net losses and loss adjustment expenses		—			15,600
Current accident year underwriting income excluding California Wildfires (2)	$	5,482		$	5,272

Net income excluding California Wildfires
Net income (loss) (1)	$	4,246		$	(3,989	)
California Wildfires net losses and loss adjustment expenses (net of tax) (3)		—			12,216
Net income excluding California Wildfires (2)	$	4,246		$	8,227

Consolidated calendar year underwriting income (loss) excluding California Wildfires net losses and loss adjustment expenses
Underwriting income (loss) (1)	$	5,323		$	(10,512	)
California Wildfires net losses and loss adjustment expenses		—			15,600
Underwriting income excluding California Wildfires (2)	$	5,323		$	5,088

Belmont Core segment income excluding California Wildfires
Belmont Core segment income (loss) (1)	$	5,242		$	(11,582	)
Impact of California Wildfires		—			15,600
Belmont Core segment income excluding California Wildfires (2)	$	5,242		$	4,018

Consolidated current accident year combined ratio excluding California Wildfires
Combined ratio (1)		95.1	%		111.7	%
Effect of prior accident year (5)		(0.2	%)		(0.2	%)
Current accident year combined ratio (2)		94.9	%		111.5	%
Impact of California Wildfires		—			(16.7	%)
Current accident year combined ratio excluding California Wildfires (2)		94.9	%		94.8	%

Consolidated calendar year combined ratio excluding California Wildfires
Combined ratio (1)		95.1	%		111.7	%
Impact of California Wildfires		—			(16.7	%)
Calendar year combined ratio excluding California Wildfires (2)		95.1	%		95.0	%

Belmont Core current accident year catastrophe loss ratio excluding California Wildfires
Belmont Core current accident year catastrophe loss ratio (4)		5.6	%		47.4	%
Impact of California Wildfires		—			(41.4	%)
Belmont Core current accident year catastrophe loss ratio excluding California Wildfires (2)		5.6	%		6.0	%

(1) Most directly comparable GAAP measure / ratio.

(2) Non-GAAP financial measure / ratio.

(3) Represents net losses and loss adjustment expenses of $15.6 million less tax benefit of $3.4 million.

(4) See previous table for reconciliation of non-GAAP financial measures or ratios to its most directly comparable GAAP measure or ratio for current accident year catastrophe net losses and loss adjustment expenses.

(5) Includes prior accident year adjustments for net losses and loss adjustment expenses and net commission expenses.


Large accelerated filer	☐;	Accelerated filer	☒;

Non-accelerated filer	☐;	Smaller reporting company	☐;

Emerging growth company	☐


			Page
	PART I – FINANCIAL INFORMATION

Item 1.		Financial Statements:	3

		Consolidated Balance Sheets As of March 31, 2026 (Unaudited) and December 31, 2025	3

		Consolidated Statements of Operations Quarters Ended March 31, 2026 (Unaudited) and March 31, 2025 (Unaudited)	4

		Consolidated Statements of Comprehensive Income (Loss) Quarters Ended March 31, 2026 (Unaudited) and March 31, 2025 (Unaudited)	5

		Consolidated Statements of Changes in Shareholders’ Equity Quarters Ended March 31, 2026 (Unaudited) and March 31, 2025 (Unaudited)	6

		Consolidated Statements of Cash Flows Quarters Ended March 31, 2026 (Unaudited) and March 31, 2025 (Unaudited)	7

		Notes to Consolidated Financial Statements (Unaudited)	8

Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

Item 3.		Quantitative and Qualitative Disclosures about Market Risk	40

Item 4.		Controls and Procedures	41

	PART II – OTHER INFORMATION

Item 1.		Legal Proceedings	42

Item 1A.		Risk Factors	42

Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds	42

Item 3.		Defaults Upon Senior Securities	42

Item 4.		Mine Safety Disclosures	42

Item 5.		Other Information	42

Item 6.		Exhibits	43

Signature			44


	Quarters Ended March 31,
(Dollars in thousands)	2026			2025			Change
Net premiums collected	$	89,552		$	108,751		$	(19,199	)
Net losses and loss adjustment expenses paid		(60,409	)		(80,851	)		20,442
Operating and corporate expenses		(61,769	)		(49,498	)		(12,271	)
Net investment income		14,261			23,995			(9,734	)
Income tax refund received		501			—			501
Net cash provided by (used for) operating activities	$	(17,864	)	$	2,397		$	(20,261	)



10.31*+		Form of Class A-2 Common Share Grant Agreement (2026 Grant)

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)


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Shares	GBLI	Nasdaq Global Select Market


	GLOBAL INDEMNITY GROUP, LLC
	Registrant


Dated: May 5, 2026	By:	/s/ Brian J. Riley
		Brian J. Riley
		Chief Financial Officer
		(Authorized Signatory and Principal Financial and Accounting Officer)

Delaware

PART II – OTHER INFORMATION