Earnings call transcript: Global Indemnity’s Q4 2024 EPS beats forecast

Global Indemnity PLC (GBLI) reported its fourth-quarter 2024 earnings on March 11, 2025, exceeding analyst expectations with an earnings per share (EPS) of $1.63 against a forecast of $0.77. The company fell short on revenue, reporting $95.79 million compared to the anticipated $114 million. In response, the stock price rose by 2.78%, closing at $36.01, reflecting investor optimism driven by the substantial EPS beat. According to InvestingPro data, the company maintains a healthy P/E ratio of 12.33 and offers an attractive dividend yield of 4%.

Key Takeaways

• Global Indemnity’s EPS more than doubled the forecast, showcasing strong profitability.
• Revenue fell short, missing projections by $18.21 million.
• The stock price increased by 2.78%, signaling positive investor sentiment.
• Investment income grew by 13%, contributing to the company’s financial strength.
• Regulatory challenges in California present ongoing risks.

Company Performance

Global Indemnity demonstrated robust financial health with net income rising to $43.2 million from $25.4 million in the previous year. The company’s book value per share increased to $49.98, reflecting a strong return to shareholders of 8.1% in 2024. InvestingPro analysis reveals an impressive overall financial health score of 3.07 (rated as "GREAT"), with notably low debt levels at just 2% of equity. Despite a decline in consolidated gross premiums to $389.8 million from $416.4 million, strategic investments in technology and talent are positioning the company for future growth. For deeper insights into GBLI’s financial health metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Financial Highlights

• Revenue: $95.79 million, missed forecast of $114 million
• Earnings per share: $1.63, exceeded forecast of $0.77
• Net income: $43.2 million, up from $25.4 million in 2023
• Investment income: $62.4 million, a 13% increase year-over-year

Earnings vs. Forecast

Global Indemnity’s earnings per share of $1.63 significantly surpassed the consensus forecast of $0.77, marking a surprise of approximately 111.7%. However, the revenue shortfall of $18.21 million against the forecast highlights potential challenges in market conditions or operational execution.

Market Reaction

Following the earnings announcement, Global Indemnity’s stock price rose by 2.78%, closing at $36.01. This movement suggests that investors are focusing on the company’s strong EPS performance and improvements in net income and investment returns. InvestingPro data shows the stock trading near its 52-week high of $37, with a notable one-year total return of 23.26%. Based on InvestingPro’s Fair Value analysis, the stock currently appears slightly overvalued, suggesting investors should monitor entry points carefully. Discover more investment opportunities by exploring our curated list of most undervalued stocks at https://www.investing.com/equities/most-undervalued.

Outlook & Guidance

Looking ahead, Global Indemnity expects a 10% revenue growth from its Penn America segment in 2025. The company plans to enhance its product offerings and invest in longer-term maturities, leveraging discretionary capital of $255 million. These strategic initiatives aim to sustain growth and improve non-catastrophe accident year loss ratios.

Executive Commentary

CEO Jay Brown emphasized the company’s focus on shareholder value, stating, "We are a for-profit business. We’re very, very focused on making good with our shareholders." He also highlighted the importance of technology investments, noting, "Our technology investments are creating a platform that will allow a variety of products we don’t currently sell to be offered to existing and new agency partners."

Risks and Challenges

• Revenue miss and declining gross premiums could indicate market challenges.
• Regulatory hurdles in California, including rate increase limitations, pose risks.
• Wildfire exposure reassessment is necessary, with potential financial impacts.
• The insurance market’s competitive landscape requires strategic agility.
• Economic uncertainties could affect investment income and overall growth.

Q&A

During the earnings call, analysts inquired about the impact of California wildfire losses, which totaled $15 million affecting fewer than 10 properties. The company is seeking significant rate increases in California and may consider selective market exits if rates remain inadequate. These discussions underscore the importance of strategic responses to regulatory and environmental challenges.

Full transcript - Global Indemnity PLC (GBLI) Q4 2024:

Kate, Conference Operator: Ladies and gentlemen, thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the Global Indemnity Group twenty twenty four Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session.

We will also be taking questions from the webcast. If you would like to submit a question via the webcast, I would now like to turn the call over to Evan Kasowitz. Please go ahead.

Evan Kasowitz, Legal/Compliance Representative, Global Indemnity Group: Thank you, operator. Today’s conference call is being recorded. GBLI’s remarks may contain forward looking statements. Some of the forward looking statements can be identified by the use of forward looking words, including without limitation, beliefs, expectations or estimates. We caution you that such forward looking statements should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will, in fact, be achieved.

Please refer to our annual report on Form 10 ks and our other filings with the SEC for descriptions of the business environment in which we operate and the important factors that may materially affect our results. Global Indemnity Group, LLC is not under any obligation and expressly disclaims any such obligation to update or alter its forward looking statements, whether as a result of new information, future events or otherwise. It is now my pleasure to turn the call over to Mr. Jay Brown, Chief Executive of Global Indemnity.

Jay Brown, Chief Executive Officer, Global Indemnity Group: Thank you, Evan. Good morning and thank you all for joining us for the GBLI year end update on our 2024 financial and operational results. Consistent with our past calls, I will first provide a few overview comments on the ongoing results in our Pen America segment. Given the fact that year end numbers are consistent with prior quarters, I will keep my comments to a minimum. Then our Chief Financial Officer, Brian Riley, will expand on the 2024 financial highlights for both our insurance operations and the holding company.

It gives me great pleasure to report that the GBLI team achieved solid insurance results consistent with the goals we had established for 2024. They continue building momentum to consistently hit the long term metrics for revenue growth and underwriting profits that we had established to create value for our shareholders. Pan America insurance revenue momentum, as measured by gross premium, maintained the pattern we saw in the third quarter with total premium, excluding terminated programs, having finished up 12% through 2024. This was driven by the excellent 17% growth we achieved in InsurTech, coupled with 12% growth in our largest division, Wholesale Commercial. Our assumed reinsurance operation finished up 83% in its second full year of operations.

We expect these segment wide positive trends to continue in 2025. Turning to insurance underwriting performance, I am very delighted to report a full year 94.4% underwriting result for the Penn America segment. This result was modestly better than the 95.2% we recorded in 2023. The good results continue for both our casualty and property coverages. Importantly, our rate increases continued to modestly exceed our own estimates of inflation trends.

This will continue to be a key objective for 2025 given the continued uncertainty on the national inflation front. Also, our estimates for the past year results remain stable with virtually no difference between calendar and accident year numbers. Our reserve margins remain solid with modest improvement recorded throughout the year. The ongoing efforts to manage catastrophe exposures for our property segments continued to be reflected in our modest losses from catastrophes in 2024. Total cat losses for the full year were down roughly 26% from 2023.

I will note that we experienced $15,000,000 in cat’s historic losses from the recent Los Angeles Wildfires. Given the magnitude of the LA fires, this result was modestly below our property market share in California, albeit still significant for a company of our size. Although we expect an annual average of around $17,000,000 from cat losses given our current book of business, the sheer magnitude of this single loss exceeded the different models we have used for wildfires in the L. A. Basin.

Like most industry players, we are rethinking the validity of our past severity model estimates for wildfire cat exposures. We continue to manage internal expenses a bit higher than our long term targets to provide the best service to our customers. As noted in past quarters, we have maintained Penn America staff numbers just slightly below twenty twenty three as we grow our business at double digit levels and keep expense growth at roughly half of that growth rate. Our Pan America expense ratio is starting to trend in the right direction with the twenty twenty four ratio of 38.1%, but we still have significant work to do in order to get this down to 37% or lower. As noted last quarter, a key factor in growing our business is attaining outstanding underwriting results, achieving competitive expense levels and utilizing technology effectively across all dimensions.

We have just completed the first full year of a multi year effort to transform our technology platforms, transactions and information software and data storage. These investments are well underway with our transition to the cloud about 75% completed with the remaining migration to be completed in 2025. As I mentioned last quarter, the first transactional application went live in September and we are now processing all aspects of our wholesale commercial excess liability policies in the new technology environment. We recently added similar capabilities for special events in wholesale commercial and are on schedule to add transaction processing for all the remaining products for wholesale commercial this year. An additional module is in development, which is focused on our agents, underwriters and operations staff.

They will receive an integrated underwriting workstation in the next few months to improve the time to handle referral business and service for our wholesale commercial agents. As a follow-up to my comments from last quarter, the decision to focus on the underwriting areas where we can excel has begun to pay dividends. We completed a legal and operational transformation that was announced in January labeled Project Manifest. One of the main objectives of this project was to enhance our ability to attract additional talent to complement our existing teams. These efforts will provide the expertise needed to accelerate our ability to use our growing excess capital in order to expand our product offerings for both existing and new customers.

I am very, very pleased that we kicked off this talent expansion with the hiring of Praveen Reddy to head up Penn American Underwriters LLC, which is comprised of all of our existing underwriting and service teams. Praveen joined us last week and has begun his efforts to rapidly expand our current product offerings. I am thankful that we have the support of the full Board and Fox Paine as our financial advisor to effect these structural changes, which I personally believe will yield significant future results for our company. Equally important, I remain blessed to benefit from the superb efforts of all the managers and staff at Global. We are all looking forward to 2025 and beyond as we enhance and implement our tactical and strategic plans.

Ryan?

Brian Riley, Chief Financial Officer, Global Indemnity Group: Thank you, Jay. My commentary will focus on full year results. Of course, we can answer any questions you may have on the fourth quarter numbers. Net income was $43,200,000 compared to twenty five point four million dollars in 2023. The combination of net income and a $12,000,000 increase in market value of the fixed income portfolio, book value per share increased from $47.53 at year end 2023 to $49.98 at December 31.

Including dividends paid in 2024 of $1.4 per share, return to shareholders was 8.1% for 2024. For 2024, both underwriting income and investment forms began to contribute to the improvement in net income. Starting with investments. Investment income increased 13% to $62,400,000 from a year ago. Actions taken since early ’twenty two to sell longer dated securities in short duration and translate into much higher current book yields.

Cash flows and maturities of fixed income securities of $1,100,000,000 yielding 4.36% were reinvested in average yields of 4.87%. Current book yield on the fixed income portfolio is now 4.4% with the duration of zero point eight years at 12/31/2024. Comparatively, at 12/31/2023, book yield was 4% with a duration of one point one years. At the December 2022, book yield was 3.5% with a duration of one point seven years. And at 12/31/2021, book yield was 2.2% with duration of three point two years.

The average credit quality of the fixed income portfolio remains at AA minus. As a result of the low duration, we have $1,000,000,000 of investments maturing in 2025. We expect that a significant amount of those maturities to be reinvested on longer matured ensuring fixed income investments to improve returns. Through February 25, approximately $320,000,000 of the portfolio was reinvested at 5.2%, consisting of two thirds in high quality corporates and structured securities. We expect this strategy will increase duration to about one point two five years by the end of the first quarter of twenty twenty five.

Now let’s move to underwriting performance for 2024. We continue to see good results as the current accident year consolidated underwriting income was $18,800,000 compared to $14,300,000 in 2023. This was driven by consolidated accident year combined ratio of 95.4 in 2024 compared to 97.3 in 2023. The improvement in the current extra underwriting income is due to the strong performance of our core business, Penn America. Penn America’s ex year underwriting income was $22,100,000 in 2024 compared to $18,500,000 in 2023.

As Jay noted, Penn America’s accident year combined ratio improved to 94.4 in 2024 compared to 95.2 in 2023. The accident loss ratio of 56.4 was a point better than the 57.4 in ’23. The property loss ratio closed here at 53.9 compared to 53.4 in ’23. Non cat loss ratio remained strong. We posted a 46.3% in 24% and a 43.6% in 23%.

Cat loss ratio improved to 7.6% in 24% compared to 9.8% in 23%. Overall, cat losses declined to $12,700,000 compared to $13,800,000 in 2023. Casualty loss ratio is $58,400,000 in 2024 compared to $59,900,000 in 2023. Unlike last year, our non core operations have a diminished effect on our overall performance. Our non core operations net our premium to drop to $7,200,000 compared to $118,800,000 in ’twenty three, mainly from an assumed retrocession casualty treaty, which we did not

Tom Kehr, Analyst, VAX MOCAP Research: in ’twenty two.

Brian Riley, Chief Financial Officer, Global Indemnity Group: Further, the runoff of our exited specialty property business resulted in no statutory losses in ’twenty four compared to $3,400,000 last year. The current accident underwriting loss was $3,300,000 for ’24 compared to $4,200,000 in ’23. Dollars Combined ratio was $145,600,000 The loss ratio was in line with $4,600,000 but runoff expenses remain a bit high as we wind down a number of the smaller underwriting portfolios. As for the calendar year underwriting income, consolidated calendar year underwriting income of $17,800,000 compared to $3,000,000 in 2023. Looking at prior accident year losses, book reserves remain solidly above our current actuarial indications.

2024 loss NOI related to prior accident years was only a modest increase of $72,000 Turning to premiums. Consolidated gross premiums was $389,800,000 in $24,000,000 compared to $416,400,000 in ’23. This decrease is entirely due to runoff business of our non core segment, which declined $57,000,000 year over year offset partially by the growth of Pen America. Pen America’s gross written agreement increased 8% to $400,000,000 compared to $369,700,000 in 2023. As Jay noted, excluding terminated products, Head America’s gross written premiums grew from $352,400,000 in 2023 to $395,100,000,000 in ’24, a 12% increase.

Let me add a little color on each of those divisions. Wholesale commercial, which focuses on our Main Street small business, grew 6% to $248,600,000 compared to 234,900,000 in 2023. Excluding premium audit in these calendar year numbers, the underlying policy or premium trends are best indicator of growth, which is 12%, which includes rate increases of 7%. InsurTech, which consists of vacant express and collectibles grew 17% to $56,300,000 in 2024 compared to $48,300,000 in 2023. Let me break down those two products a bit.

One for Vacant Express grew 24% to $40,500,000 driven by organic growth from existing agents and agency appointments. New technical automation implemented in the third quarter of twenty twenty three for vacant dwelling products, including the expansion of mono line general liability product, contributes to the growth in premium our agents are producing. Collectibles, gross written premium of $15,800,000 was slightly higher than 2023 by 2%. We’ve implemented underwriting action on catastrophe pro risk that has curtailed growth a bit, but is expected to improve overall profitability. Our assumed reinsurance business continues to grow at a nice pace.

We signed on ’8 new treaties in 2024. Gross written premiums grew to $25,400,000 compared to $13,900,000 in 2023. Specialty Products, excluding terminated products mentioned earlier, was $64,700,000 compared to $55,300,000 in 2023. We signed on two new products in 2024 that contributed $1,000,000 during the year. We expect to have four new products signed on over the next six to twelve months.

In closing, we are pleased with the 2024 results. Further, despite the impact of the first quarter wildfires, as Jay mentioned, our outlook for 2025 is very positive. We continue to expect revenue growth of 10% from Pan America. Further, we expect to see continued improvement in our non catastrophe accident year loss ratios. Book reserves remain solidly above current actuarial locations.

We believe premium pricing is continuing to attract with loss inflation. Discretion in capital, which is considered the amount of consolidated equity in excess of that amount required to maintain the strongest levels with our rating agencies increased to $255,000,000 at 12/31/2024 compared to $200,000,000 in 12/31/2023 due to growth in equity and the reduced capital needed to run off the non core business. As Jay noted earlier, this will support the efforts to invest in the growth of Penn America underwriters. Lastly, Macaulay is well positioned to invest in longer term duration maturities and higher yields. Thank you.

We’ll now take your questions.

Kate, Conference Operator: Your first question comes from the line of Tom Kehr with VAX MOCAP Research. Please go ahead.

Tom Kehr, Analyst, VAX MOCAP Research: Good morning, guys. Real quick on the California fires, was that just the underwriting type issues or have you guys been trying to get rate increases and deal with that issue?

Jay Brown, Chief Executive Officer, Global Indemnity Group: We’ve had an outstanding rate increase for our vacant express probably for a year plus at this point in time. Like most carriers, it’s just stalled completely in the regulatory environment. But otherwise, it was a it’s obviously a sizable loss for us, but involved very few number of properties. I think it was less than 10 properties overall were involved in the fire.

Tom Kehr, Analyst, VAX MOCAP Research: Okay, great. And can you provide a little more color on the reinsurance segment and that growth in that and what is the plans? I mean, could that continue its strong growth in 2025?

Jay Brown, Chief Executive Officer, Global Indemnity Group: Yes. The our growth there was is if you recall two years ago when we cut back dramatically when I first arrived at the company, obviously, our view at that point in time with the reduced volume we were doing in other sectors that we had a lot of capacity available. We had a history of doing some reinsurance, but we decided over the near term being two years ago and a couple of years forward that the best use of our internal capital was to develop some existing specialty product relationships into assumed reinsurance. So we’re up to, Brian, how many? 16.

16 treaties at this point in time, roughly $45,000,000 in force and we expect that we’re going to have a nice increase in $2,025,000,000 dollars and 2026. At that point, we’ll be looking at our other lines of business and allocation of capital across our businesses to decide if we want to grow it much beyond that.

Tom Kehr, Analyst, VAX MOCAP Research: Got it. Two more quick ones for me. On the project manifest, do you see any benefits yet on the destacking of the organization in terms of the ability to move capital between organizations? Has that kind of started yet?

Brian Riley, Chief Financial Officer, Global Indemnity Group: Yes. We picked up net of dividends to the holding company about $50,000,000 So our statutory surplus is right around $500,000,000 As we get above that, that will give us more capacity in the insurance market.

Tom Kehr, Analyst, VAX MOCAP Research: Got it. And last one, I have to ask the standard share buyback question with $255,000,000 in discretionary capital. Any portion of that could be used to buyback the stock at a discount to book value?

Jay Brown, Chief Executive Officer, Global Indemnity Group: Of course, could be used to buy back stock at a discount. But right now, the Board feels more enthusiastic about our prospects for adding additional products and different types of underwriting into our company through the Penn America. Our decision to hire Perveen is very much focused on this and we expect that we can get better returns on growing our insurance business in the short term than just buying back stock.

Tom Kehr, Analyst, VAX MOCAP Research: Got it. All right. I’ll jump back in the queue. Thank you.

Kate, Conference Operator: Your next question comes from the line of Ross Haberman with RLH Investments. Please go ahead.

Ross Haberman, Analyst, RLH Investments: Good morning, gentlemen. Thanks for taking the call. I have a quick question. Could you go back to the California? Could you tell us what your total exposure is there?

And is it on the direct commercial side or is it mostly on the reinsurance side? Thank you.

Jay Brown, Chief Executive Officer, Global Indemnity Group: The our total exposure in California is about six basis points of the total property market. I don’t have it at my fingertips exactly how much the premium was. It was all on our direct book. It was not on any assumed reinsurance.

Ross Haberman, Analyst, RLH Investments: And the $15,000,000 could that

Brian Riley, Chief Financial Officer, Global Indemnity Group: be

Ross Haberman, Analyst, RLH Investments: a bigger number as time goes on or that’s your best guess at least as of today?

Jay Brown, Chief Executive Officer, Global Indemnity Group: We paid over half the losses at this point because of the small number. It’s as I said, it’s less than 10 losses, 10 individual properties that were involved. So we’re pretty confident the number is not going to move too much at this point.

Ross Haberman, Analyst, RLH Investments: Okay. And your total fire or wildfire exposure which you said you’re reassessing what is that number today?

Jay Brown, Chief Executive Officer, Global Indemnity Group: Well, it depends on on the frequency and the location of loss. We have wildfire exposure in California and other states. My comment there was really focused on the fact that we use catastrophe models to estimate our exposure and manage how much we’ll do in particular areas. One of the ways those models work is to assess the frequency of a cat loss of a particular size. And so we typically manage to a one in two fifty or one in five hundred kind of level as the maximum that we expect from a loss.

This one went almost double that in terms against what the model estimated. And so what I’m saying is that we’re like a lot of people wondering at the tail of the individual models that we’re using, are they that inaccurate? Why are they off that much? Now this was an unusual fire, but it is something that we expect in California. We have different zones that we have fire exposure.

One of the two fires was in a more exposed area. That was the Eaton Fire. We actually had no losses in the Eaton location. Pasadena, which was slightly better in terms of the rating and expected a less frequency of loss actually turned out for us to be where all of the properties were there were burned in that particular situation. So again, it’s a modeling question for us.

We’re constantly trying to improve our models and this one came as somewhat of a surprise, but we’ve all seen an escalation in the size of cat losses. Now in comparison, if we go back for the prior four years, there were cat losses, wildfire losses. And in each of the four years, we had no wildfire losses at all. And so we were very we’re pretty comfortable and with the way we’re managing that exposure, but again the models for this type of loss don’t seem to work very well.

Ross Haberman, Analyst, RLH Investments: So basically you’ve got to reassess it and rejigger I guess the assumptions there?

Jay Brown, Chief Executive Officer, Global Indemnity Group: Yes. We’re looking at it. It’s we’re trying to there’s a couple of minor adjustments that we’re making very quickly in terms of what we would do in a zone three versus a zone four or a five. And we’re trying to say maybe we have to move that out a little bit to contain that exposure. But again, this size loss is not disproportionate for a company our size.

I mean, it’s kind of the in the if you’re going to write any property business, you’re going to have some cat exposures than this for us. It always hurts more when it comes in the first quarter. But over the course of the year, we typically expect as I mentioned something like $16,000,000 or $17,000,000 in cat losses. Some years it’s more, some years it’s less. But that’s what our current book would expect over time to see in a normal year.

Ross Haberman, Analyst, RLH Investments: Overall, just a follow-up question. Overall, given what happened in California, what kind of rate increases going forward do you expect in that state or in that general area given what happened?

Jay Brown, Chief Executive Officer, Global Indemnity Group: What we expect and what we get might be two different things. But I would say that we need at least 50% on the type of business that was affected by this particular wildfire and perhaps more depending on the types of individual exposures. But California has been tough on rates and it’s a real obstacle and they’re creating real problem for themselves in terms of not allowing carriers to get an adequate rate which makes it much harder for people to obtain coverage. And that’s obviously not the goal of the insurance industry. We want to provide coverage for every possible exposure that we feel we can rate appropriately.

Ross Haberman, Analyst, RLH Investments: I guess if you can’t get an appropriately risked rate, whether it’s 50% as you hope to, do you say hypothetically if you can only get 20 or 25, do you say it’s not worth it to us, it’s not worth the risk, we’re just

Brian Riley, Chief Financial Officer, Global Indemnity Group: not going to write there anymore?

Jay Brown, Chief Executive Officer, Global Indemnity Group: Typically that will be a decision that we face selectively over time and we try and manage it in line with what our customers are trying to achieve, meaning our agent partners. But the reality is we are a for profit business. We’re very, very focused on making good with our shareholders. And if we can’t make it in California selling cat exposed business, we’ll find someplace else in The United States to sell more business.

Ross Haberman, Analyst, RLH Investments: And just one last question. You brought in this new gentleman to expand your lines of business. Do you have a rough idea what kind of lines is he sort of going to be focused on yet?

Jay Brown, Chief Executive Officer, Global Indemnity Group: Stay tuned. Okay.

Kate, Conference Operator: Your next question comes from the line of Andrew Vendegno. That’s from the web. Is there room to reduce the expense ratio without compromising on the writing quality? Any uses for excess capital maybe a special dividend?

Jay Brown, Chief Executive Officer, Global Indemnity Group: We don’t currently plan any special dividends. And in terms of our expense ratio, there is room. We expect that as we front off the remaining terminated business, there’ll be a little bit of pickup in terms of that area not needing expenses. But the big lift for us in terms of where we are given that we were $250,000,000 higher a couple of years ago is really growing back to that size over the next couple of years and bringing expense ratio down another 1.5% from where it currently exists. The expense ratio is somewhat misleading sometimes to look at.

You see 30%, thirty eight % and kind of go, wow, that’s a big number. And then you have to realize that less than 12% or 13% of that is our internal expenses and the remainder is commissions we pay our agents, licensing fees, etcetera. And so the actual costs that we’re dealing with is out of that 38% is roughly 12% or 13% of that total, not percent but portion of. So about a third of the expense is something that we’re focused on managing down a point and a point and a point and a half in the next couple of years.

Kate, Conference Operator: Your next question comes from Justin Saunders of ViaWeb. Anything abnormal in the Q4’s corporate and other operating expenses, wraps to $7,000,000 for the Q?

Brian Riley, Chief Financial Officer, Global Indemnity Group: Yes. For the year, corporate expenses are up $5,000,000 professional fees related to project manifest implementation drove most of that.

Kate, Conference Operator: Your next question comes from the line of Joel Stracca, Viovabe. Regarding Project Monifest, GBLI has tried growth strategies in the past and failed. You were brought into the map of those out. Can you explain why a growth strategy will work this time?

Jay Brown, Chief Executive Officer, Global Indemnity Group: Sure. One is that our new structure allows us to bring in additional underwriting teams coupled with the technology investment we’re making. Our growth structure that we tried attempted two or three years ago, our biggest problem was the underwriting teams were bought in and were operating in essentially a manual environment with no technology support. That was a mistake on our part. We talked about it at the time and it’s certainly not a mistake we’re going to make going forward.

This time around we feel much more comfortable that our technology investments are creating a platform that will allow a variety of products we don’t currently sell to be offered to existing and new agency partners. The other thing to I guess kind of reflect on is we made a very clear decision to bring in a particular individual with a lot of experience with products that we don’t currently offer. And so we’re looking to expand given his knowledge and contacts in the industry, some of which will be built internally, some of which will be by bringing in additional people. And finally, in some cases, by actually buying certain types of operations from other carriers. It’s always hard to say if you weren’t successful in the past, why do you think you’re going to be successful this time?

But I would tell you that based on my last two point five years here, the team and the Board and particularly FoxPayne have focused very carefully about a comprehensive plan to bring this out where we can grow at a greater rate than we’ve been able to grow over the long streets in the past. And I think time will tell if we’re successful at that. But I think now that we have a very stable profitable underwriting base in place, we don’t have any major decisions to make about staffing in the short term in terms of having too much and having approximately fifteen months behind us in a three year technology spend, I feel very, very personally confident that this is going to be a successful strategy for Global to pursue.

Kate, Conference Operator: I will now turn the call back over to Evan Kasiewicz for closing remarks.

Jay Brown, Chief Executive Officer, Global Indemnity Group: Thank you. This concludes our twenty twenty four earnings call. We look forward to speaking with you about our first quarter twenty twenty five results.

Kate, Conference Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.

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