Global Indemnity Group, LLC (NYSE:GBLI) Q3 2023 Earnings Call Transcript

Anthony Mottolese: I’m just hoping to get a little bit more color on the reserve strengthening in the Continuing Lines. I understand you mentioned it was $7 million in Targeted Specialty and then just the remainder was years 2020 and prior. Are there — any specific years there? And could any color on exactly what you were seeing in Targeted Specialty certain areas or geographies? Anything would be helpful there.

Jay Brown: Sure. When we did our review of the business at the end of last year, we made some decisions that created an Exited Line or a Discontinued Line, certain books of business because of the way they were coded stayed inside, Package Specialty, for example. So we have a runoff significant reduction, probably going to be about 75%, 80% in a target — in a small book of business in New York habitational. So it affected current accident year because that business is running off to the tune of about $7 million. And that was the $7 million that Tom referred to very specifically. The rest of the reserve strengthening primarily occurred in the year 2020 or prior. Part of the reason that 2020 continues to be a little bit of an animus is because of COVID.

We had a big slowdown in reported claims and then a backlog in certain litigation environments. And obviously, we’ve tried to estimate that precisely as we’ve gone through ’21, ’22 and ’23, but there has been some lag effect. And so what we did was some corrections during the course of the quarter there for 2020 and prior.

Tom McGeehan: Yes. I’m just going to add one thing to Jay — to what Jay said also, is within Targeted specialty, there was also an underperforming program that was terminated in the first quarter of this year. There is no more premium after the first quarter but we did have some earned from that program this year, and we continue to see some adverse development related to that program, which is included in the reserve strengthening numbers that we noted.

Operator: Our next question comes from Tony Polak with Aegis.

Tony Polak: My questions were answered.

Operator: Great. Thank you. That concludes our Q&A session. I will now turn the call back over to Steve Ries for closing remarks.

Steve Ries: Thank you, Danica. Thank you for joining us and your continued interest in investment in Global Indemnity. We look forward to speaking with you after 2023 results release.

Operator: Thank you, ladies and gentlemen. That concludes today’s call. You may now disconnect.