Global Indemnity Plc GBLI reported operating earnings per share ("EPS") of 57 cents for fourth-quarter 2014. Earnings were lower than the year-ago figure of 76 cents per share. Decline in revenues mainly led to the downside. However, shares moved up in the last trading session on broader market dynamics.
Including extraordinary items, reported net income came in at 44 cents per share, lower than $1.34 in the prior-year quarter.
Behind the Headlines
Global Indemnity’s total revenue decreased 31.7% year over year to $69 million. The downside was a result of lower premiums, decrease in net investment income and net realized investment losses incurred.
Meanwhile, acquisition and underwriting expenses decreased 0.6%, corporate and other operating expenses increased 18.6% and Loss Adjustment Expenses decreased 21.9%, all on a year-over-year basis. Interest expenses decreased 15.7%.
Subsequently, the combined ratio improved 690 basis points to 78.6% in the quarter, reflecting lower loss ratio.
Full-Year Highlights
Global Indemnity reported operating EPS of $1.71 for 2014, higher than $1.61 earned in 2013.
Including extraordinary items, reported net income came in at $2.48 per share, up 1.2% year over year.
Global Indemnity’s total revenue decreased 4.6% year over year to $33.8 million.
Financial Update
At the end of 2014, Global Indemnity had cash and cash equivalents of $172.5 million, up from $105.5 million at 2013-end. Total assets climbed to $1.93 billion from $1.91 billion at 2013-end, and shareholder equity rose to $908.3 million from $873.3 million at the end of Dec 2013.
Additionally, book value per share was $35.86 at Dec 31, 2014, up 3.5% from 2013-end.
Performance of Other P&C Insurers
The bottom lines at RLI Corporation RLI, ACE Limited ACE and The Travelers Companies Inc. TRV outperformed their respective Zacks Consensus Estimates in the fourth quarter.
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