10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from to

001-34809

Commission File Number

GLOBAL INDEMNITY GROUP, LLC

(Exact name of registrant as specified in its charter)

Delaware	85-2619578
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

112 S. French Street, Suite 105

Wilmington, DE 19801

(Address of principal executive office including zip code)

Registrant's telephone number, including area code: (302) 691-6276

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that registrant was required to submit such files.). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

Large accelerated filer	☐;	Accelerated filer	☒;
Non-accelerated filer	☐;	Smaller reporting company	☐;
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

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

As of August 4, 2023, the registrant had outstanding 9,729,046 Class A Common Shares and 3,793,612 Class B Common Shares.

TABLE OF CONTENTS

			Page
	PART I – FINANCIAL INFORMATION
Item 1.		Financial Statements:	3
		Consolidated Balance Sheets As of June 30, 2023 (Unaudited) and December 31, 2022	3
		Consolidated Statements of Operations Quarters and Six Months Ended June 30, 2023 (Unaudited) and June 30, 2022 (Unaudited)	4
		Consolidated Statements of Comprehensive Income (Loss) Quarters and Six Months Ended June 30, 2023 (Unaudited) and June 30, 2022 (Unaudited)	5
		Consolidated Statements of Changes in Shareholders’ Equity Quarters and Six Months Ended June 30, 2023 (Unaudited) and June 30, 2022 (Unaudited)	6
		Consolidated Statements of Cash Flows Six Months Ended June 30, 2023 (Unaudited) and June 30, 2022 (Unaudited)	7
		Notes to Consolidated Financial Statements (Unaudited)	8
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3.		Quantitative and Qualitative Disclosures about Market Risk	53
Item 4.		Controls and Procedures	53
	PART II – OTHER INFORMATION
Item 1.		Legal Proceedings	54
Item 1A.		Risk Factors	54
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 3.		Defaults Upon Senior Securities	54
Item 4.		Mine Safety Disclosures	54
Item 5.		Other Information	54
Item 6.		Exhibits	55
Signature			56

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

GLOBAL INDEMNITY GROUP, LLC

Consolidated Balance Sheets

(In thousands, except share amounts)

	(Unaudited) June 30, 2023			December 31, 2022
ASSETS
Fixed maturities:
Available for sale, at fair value (amortized cost: $1,311,567 and $1,301,723; net of allowance for expected credit losses of $0 at June 30, 2023 and December 31, 2022)	$	1,265,606		$	1,248,198
Equity securities, at fair value		17,153			17,520
Other invested assets		37,282			38,176
Total investments		1,320,041			1,303,894
Cash and cash equivalents		45,447			38,846
Premium receivables, net of allowance for expected credit losses of $4,056 at June 30, 2023 and $3,322  at December 31, 2022		141,498			168,743
Reinsurance receivables, net of allowance for expected credit losses of $8,992 at June 30, 2023 and December 31, 2022		95,616			85,721
Funds held by ceding insurers		16,660			19,191
Deferred federal income taxes		42,679			47,099
Deferred acquisition costs		52,019			64,894
Intangible assets		14,633			14,810
Goodwill		4,820			4,820
Prepaid reinsurance premiums		10,626			17,421
Lease right of use assets		10,790			11,739
Other assets		19,173			23,597
Total assets	$	1,774,002		$	1,800,775
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses	$	866,951		$	832,404
Unearned premiums		215,187			269,353
Ceded balances payable		3,844			17,241
Payable for securities purchased		22,115			66
Contingent commissions		3,431			8,816
Lease liabilities		14,194			15,701
Other liabilities		21,872			30,965
Total liabilities	$	1,147,594		$	1,174,546
Commitments and contingencies (Note 11)		—			—
Shareholders’ equity:
Series A cumulative fixed rate preferred shares, $1,000 par value; 100,000,000 shares authorized, shares issued and outstanding: 4,000 and 4,000 shares, respectively, liquidation preference: $1,000 per share and $1,000 per share, respectively		4,000			4,000
Common shares: no par value; 900,000,000 common shares authorized; class A common shares issued: 11,000,287 and 10,876,041 respectively; class A common shares outstanding: 9,729,046 and 10,073,660, respectively; class B common shares issued and outstanding: 3,793,612 and 3,793,612, respectively		—			—
Additional paid-in capital		453,427			451,305
Accumulated other comprehensive income (loss), net of tax		(37,171	)		(43,058	)
Retained earnings		238,315			233,468
Class A common shares in treasury, at cost: 1,271,241 and 802,381 shares, respectively		(32,163	)		(19,486	)
Total shareholders’ equity		626,408			626,229
Total liabilities and shareholders’ equity	$	1,774,002		$	1,800,775

See accompanying notes to consolidated financial statements.

3

GLOBAL INDEMNITY GROUP, LLC

Consolidated Statements of Operations

(In thousands, except shares and per share data)

	(Unaudited) Quarters Ended June 30,						(Unaudited) Six Months Ended June 30,
	2023			2022			2023			2022
Revenues:
Gross written premiums	$	110,100		$	196,823		$	233,085		$	387,806
Ceded written premiums		(4,104	)		(29,665	)		(11,228	)		(61,166	)
Net written premiums		105,996			167,158			221,857			326,640
Change in net unearned premiums		23,160			(11,409	)		47,371			(22,068	)
Net earned premiums		129,156			155,749			269,228			304,572
Net investment income		13,216			1,930			25,224			8,522
Net realized investment losses		(761	)		(9,916	)		(2,281	)		(35,301	)
Other income		282			97			636			523
Total revenues		141,893			147,860			292,807			278,316
Losses and Expenses:
Net losses and loss adjustment expenses		78,082			92,618			166,083			177,313
Acquisition costs and other underwriting expenses		47,101			61,098			100,579			117,790
Corporate and other operating expenses		4,990			2,993			11,358			7,653
Interest expense		12			410			12			3,005
Loss on extinguishment of debt		—			3,529			—			3,529
Income (loss) before income taxes		11,708			(12,788	)		14,775			(30,974	)
Income tax expense (benefit)		2,371			(626	)		2,944			(4,039	)
Net income (loss)	$	9,337		$	(12,162	)	$	11,831		$	(26,935	)
Less: preferred stock distributions		110			110			220			220
Net income (loss) available to common shareholders	$	9,227		$	(12,272	)	$	11,611		$	(27,155	)
Per share data:
Net income (loss) available to common shareholders (1)
Basic	$	0.68		$	(0.84	)	$	0.86		$	(1.87	)
Diluted	$	0.67		$	(0.84	)	$	0.84		$	(1.87	)
Weighted-average number of shares outstanding
Basic		13,478,014			14,543,234			13,573,841			14,529,170
Diluted		13,707,984			14,543,234			13,794,221			14,529,170
Cash distributions declared per common share	$	0.25		$	0.25		$	0.50		$	0.50

(1)For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period.

See accompanying notes to consolidated financial statements.

4

GLOBAL INDEMNITY GROUP, LLC

Consolidated Statements of Comprehensive Income (Loss)

(In thousands)

	(Unaudited) Quarters Ended June 30,						(Unaudited) Six Months Ended June 30,
	2023			2022			2023			2022
Net income (loss)	$	9,337		$	(12,162	)	$	11,831		$	(26,935	)
Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses)		(3,077	)		(21,503	)		5,080			(63,876	)
Reclassification adjustment for losses included in net income (loss)		479			7,877			966			30,962
Unrealized foreign currency translation gains (losses)		42			(227	)		(159	)		(115	)
Other comprehensive income (loss), net of tax		(2,556	)		(13,853	)		5,887			(33,029	)
Comprehensive income (loss), net of tax	$	6,781		$	(26,015	)	$	17,718		$	(59,964	)

See accompanying notes to consolidated financial statements.

5

GLOBAL INDEMNITY GROUP, LLC

Consolidated Statements of Changes in Shareholders’ Equity

(In thousands, except share amounts)

	(Unaudited) Quarters Ended June 30,						(Unaudited) Six Months Ended June 30,
	2023			2022			2023			2022
Number of Series A Cumulative Fixed Rate Preferred Shares
Number at beginning and end of period		4,000			4,000			4,000			4,000
Number of class A common shares issued:
Number at beginning of period		10,928,380			10,614,555			10,876,041			10,574,589
Common shares issued under share incentive plans, net of forfeitures		49,628			35,442			75,541			50,598
Common shares issued to directors		22,279			25,760			48,705			50,570
Number at end of period		11,000,287			10,675,757			11,000,287			10,675,757
Number of class B common shares issued:
Number at beginning and end of period		3,793,612			3,947,206			3,793,612			3,947,206
Par value of Series A Cumulative Fixed Rate Preferred Shares
Balance at beginning and end of period	$	4,000		$	4,000		$	4,000		$	4,000
Additional paid-in capital:
Balance at beginning of period	$	452,385		$	448,266		$	451,305		$	447,406
Share compensation plans		1,042			1,786			2,122			2,646
Balance at end of period	$	453,427		$	450,052		$	453,427		$	450,052
Accumulated other comprehensive income (loss), net of deferred income tax:
Balance at beginning of period	$	(34,615	)	$	(12,772	)	$	(43,058	)	$	6,404
Other comprehensive income (loss):
Change in unrealized holding gains (losses)		(2,598	)		(13,626	)		6,046			(32,914	)
Unrealized foreign currency translation gains (losses)		42			(227	)		(159	)		(115	)
Other comprehensive income (loss)		(2,556	)		(13,853	)		5,887			(33,029	)
Balance at end of period	$	(37,171	)	$	(26,625	)	$	(37,171	)	$	(26,625	)
Retained earnings:
Balance at beginning of period	$	232,506		$	230,771		$	233,468		$	249,301
Net income (loss)		9,337			(12,162	)		11,831			(26,935	)
Preferred share distributions		(110	)		(110	)		(220	)		(220	)
Distributions to shareholders ($0.25 per share per quarter in 2023 and 2022)		(3,418	)		(3,742	)		(6,764	)		(7,389	)
Balance at end of period	$	238,315		$	214,757		$	238,315		$	214,757
Number of treasury shares:
Number at beginning of period		1,055,683			22,277			802,381			17,496
Class A common shares purchased		215,558			11,173			468,860			15,954
Number at end of period		1,271,241			33,450			1,271,241			33,450
Treasury shares, at cost:
Balance at beginning of period	$	(26,038	)	$	(610	)	$	(19,486	)	$	(490	)
Class A common shares purchased, at cost		(6,125	)		(294	)		(12,677	)		(414	)
Balance at end of period	$	(32,163	)	$	(904	)	$	(32,163	)	$	(904	)
Total shareholders’ equity	$	626,408		$	641,280		$	626,408		$	641,280

See accompanying notes to consolidated financial statements.

6

GLOBAL INDEMNITY GROUP, LLC

Consolidated Statements of Cash Flows

(In thousands)

	(Unaudited) Six Months Ended June 30,
	2023			2022
Cash flows from operating activities:
Net income (loss)	$	11,831		$	(26,935	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization and depreciation		3,342			3,265
Amortization of debt issuance costs		—			41
Restricted stock and stock option expense		2,122			2,646
Deferred federal income taxes		2,944			(4,039	)
Amortization of bond premium and discount, net		(1,725	)		1,628
Net realized investment losses		2,281			35,301
Loss on extinguishment of debt		—			3,529
Loss from equity method investments, net of distributions		106			5,913
Changes in:
Premium receivables, net		27,245			(33,515	)
Reinsurance receivables, net		(9,895	)		(4,200	)
Funds held by ceding insurers		2,330			3,905
Unpaid losses and loss adjustment expenses		34,547			44,757
Unearned premiums		(54,166	)		20,111
Ceded balances payable		(13,397	)		(20,585	)
Other assets and liabilities		(7,679	)		(3,986	)
Contingent commissions		(5,385	)		(1,575	)
Deferred acquisition costs		12,875			(9,758	)
Prepaid reinsurance premiums		6,795			1,956
Net cash provided by operating activities		14,171			18,459
Cash flows from investing activities:
Proceeds from sale of fixed maturities		96,890			829,205
Proceeds from sale of equity securities		24			88,726
Proceeds from maturity of fixed maturities		50,685			42,483
Proceeds from maturity of preferred stock		270			—
Proceeds from other invested assets		789			6,542
Amounts received in connection with derivatives		—			4,490
Purchases of fixed maturities		(135,826	)		(860,076	)
Purchases of equity securities		(28	)		(10,376	)
Net cash provided by investing activities		12,804			100,994
Cash flows from financing activities:
Distributions paid to common shareholders		(7,477	)		(7,255	)
Distributions paid to preferred shareholders		(220	)		(220	)
Purchases of class A common shares		(12,677	)		(414	)
Redemption of subordinated notes		—			(130,000	)
Net cash used for financing activities		(20,374	)		(137,889	)
Net change in cash and cash equivalents		6,601			(18,436	)
Cash and cash equivalents at beginning of period		38,846			78,278
Cash and cash equivalents at end of period	$	45,447		$	59,842

See accompanying notes to consolidated financial statements.

7

1.Principles of Consolidation and Basis of Presentation

Global Indemnity Group, LLC (“Global Indemnity”, "GBLI", or “the Company”), a Delaware limited liability company formed on June 23, 2020, replaced Global Indemnity Limited, incorporated in the Cayman Islands as an exempted company with limited liability, as the ultimate parent company of the Global Indemnity group of companies as a result of a redomestication transaction completed on August 28, 2020. Global Indemnity Group, LLC’s class A common shares are publicly traded on the New York Stock Exchange under the ticker symbol GBLI. Global Indemnity Group, LLC’s predecessors have been publicly traded since 2003. See Note 2 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2022 Annual Report on Form 10-K for additional information regarding the redomestication.

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

The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and six months ended June 30, 2023 and 2022 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 2022 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.Restructuring

The Company restructured its insurance operations to strengthen its market presence and enhance its focus on GBLI’s core Package Specialty and Targeted Specialty products. As a result, the Company exited its four brokerage divisions: Professional Liability, Excess Casualty, Environmental, and Middle Market Property. The Company ceased writing new business and existing renewals were placed in run-off for these four divisions. The restructuring plan, which was initiated in the fourth quarter of 2022, was completed in the first quarter of 2023.

In connection with the restructuring plan, the Company incurred restructuring costs of $3.4 million during the fourth quarter of 2022 and $2.1 million during the six months ended June 30, 2023 for total restructuring costs of $5.5 million.

The following table summarizes charges incurred by expense type and the remaining liability as of December 31, 2022 and June 30, 2023:

(Dollars in thousands)	Consolidated Statements of Operations Line	Employee Termination			Lease Right of Use Asset Impairment			Total
Charges incurred in 2022	Corporate and other operating expenses	$	2,635		$	—		$	2,635
Charges incurred in 2022	Acquisition costs and other underwriting expenses (1)		—			812			812
Non-cash asset charges			—			(812	)		(812	)
Liability at December 31, 2022			2,635			—			2,635
Charges incurred in 2023	Corporate and other operating expenses		2,121		—				2,121
Cash payments in 2023			(4,249	)		—			(4,249	)
Liability at June 30, 2023		$	507		$	—		$	507

(1) These charges were recorded within the Company's Exited Line segment.

8

Any information technology initiatives related to business lines within Exited Lines have been discontinued.

3.Investments

The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of June 30, 2023 and December 31, 2022:

(Dollars in thousands)	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of June 30, 2023
Fixed maturities:
U.S. treasuries	$	396,451	$	—	$	12	$	(7,701	)	$	388,762
Obligations of states and political subdivisions		32,272		—		—		(1,666	)		30,606
Mortgage-backed securities		65,086		—		396		(4,816	)		60,666
Asset-backed securities		212,095		—		186		(7,966	)		204,315
Commercial mortgage-backed securities		86,313		—		21		(5,880	)		80,454
Corporate bonds		343,600		—		102		(12,038	)		331,664
Foreign corporate bonds		175,750		—		30		(6,641	)		169,139
Total fixed maturities	$	1,311,567	$	—	$	747	$	(46,708	)	$	1,265,606

(Dollars in thousands)	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of December 31, 2022
Fixed maturities:
U.S. treasuries	$	352,533	$	—	$	—	$	(8,430	)	$	344,103
Obligations of states and political subdivisions		33,471		—		—		(1,876	)		31,595
Mortgage-backed securities		67,560		—		165		(5,609	)		62,116
Asset-backed securities		198,161		—		390		(9,151	)		189,400
Commercial mortgage-backed securities		104,777		—		20		(6,133	)		98,664
Corporate bonds		353,622		—		16		(14,858	)		338,780
Foreign corporate bonds		191,599		—		—		(8,059	)		183,540
Total fixed maturities	$	1,301,723	$	—	$	591	$	(54,116	)	$	1,248,198

As of June 30, 2023 and December 31, 2022, the Company’s investments in equity securities consist of the following:

(Dollars in thousands)	June 30, 2023		December 31, 2022
Common stock	$	1,113	$	1,271
Preferred stock		16,040		16,249
Total	$	17,153	$	17,520

Excluding U.S. treasuries and limited partnerships, the Company did not hold any debt or equity investments in a single issuer in excess of 2.0% and 2.4% of shareholders' equity at June 30, 2023 and December 31, 2022, respectively.

9

The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at June 30, 2023, 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	$	489,914	$	483,894
Due in one year through five years		428,150		410,281
Due in five years through ten years		17,529		15,287
Due after fifteen years		12,480		10,709
Mortgage-backed securities		65,086		60,666
Asset-backed securities		212,095		204,315
Commercial mortgage-backed securities		86,313		80,454
Total	$	1,311,567	$	1,265,606

The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of June 30, 2023. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 5.

	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	$	198,477	$	(3,953	)	$	120,678	$	(3,748	)	$	319,155	$	(7,701	)
Obligations of states and political subdivisions		7,810		(222	)		19,795		(1,444	)		27,605		(1,666	)
Mortgage-backed securities		16,354		(707	)		33,913		(4,109	)		50,267		(4,816	)
Asset-backed securities		91,904		(1,888	)		95,269		(6,078	)		187,173		(7,966	)
Commercial mortgage-backed securities		1,678		(69	)		76,056		(5,811	)		77,734		(5,880	)
Corporate bonds		74,010		(1,175	)		230,601		(10,863	)		304,611		(12,038	)
Foreign corporate bonds		23,100		(154	)		119,948		(6,487	)		143,048		(6,641	)
Total fixed maturities	$	413,333	$	(8,168	)	$	696,260	$	(38,540	)	$	1,109,593	$	(46,708	)

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, 2022. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 5.

	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	$	335,781	$	(7,518	)	$	8,322	$	(912	)	$	344,103	$	(8,430	)
Obligations of states and political subdivisions		27,772		(1,378	)		3,778		(498	)		31,550		(1,876	)
Mortgage-backed securities		51,517		(4,228	)		7,860		(1,381	)		59,377		(5,609	)
Asset-backed securities		97,857		(3,610	)		62,689		(5,541	)		160,546		(9,151	)
Commercial mortgage-backed securities		67,926		(4,072	)		27,907		(2,061	)		95,833		(6,133	)
Corporate bonds		261,123		(8,480	)		71,192		(6,378	)		332,315		(14,858	)
Foreign corporate bonds		150,308		(5,469	)		31,232		(2,590	)		181,540		(8,059	)
Total fixed maturities	$	992,284	$	(34,755	)	$	212,980	$	(19,361	)	$	1,205,264	$	(54,116	)

10

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 impairments 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. That new amortized cost basis shall not be adjusted for subsequent recoveries in fair value.

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 $8.3 million and $8.4 million as of June 30, 2023 and December 31, 2022, respectively.

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

U.S. treasuries – As of June 30, 2023, gross unrealized losses related to U.S. treasuries were $7.701 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, macroeconomic and market analysis is conducted in evaluating these securities. Consideration is given to the interest rate environment, duration and yield curve management of the portfolio, sector allocation and security selection. Based on the analysis performed, the Company did not recognize a credit loss on U.S. treasuries during the period.

Obligations of states and political subdivisions – As of June 30, 2023, gross unrealized losses related to obligations of states and political subdivisions were $1.666 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.

11

Mortgage-backed securities (“MBS”) – As of June 30, 2023, gross unrealized losses related to mortgage-backed securities were $4.816 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 accurate projections. These assumptions are incorporated into the model as a basis to generate delinquency probabilities, default curves, loss severity curves, and voluntary prepayment curves at the loan level within each deal. The model utilizes HPI-adjusted current loan to value, payment history, loan terms, loan modification history, and borrower characteristics as inputs to generate expected cash flows and principal loss for each bond under various scenarios. Based on the analysis performed, the Company did not recognize a credit loss on mortgage-backed securities during the period.

Asset backed securities (“ABS”) - As of June 30, 2023, gross unrealized losses related to asset backed securities were $7.966 million. The weighted average credit enhancement for the Company’s asset backed portfolio is 35.0. This represents the percentage of pool losses that can occur before an asset backed security will incur its first dollar of principal losses. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, every ABS transaction is analyzed on a stand-alone basis. This analysis involves a thorough review of the collateral, prepayment, and structural risk in each transaction. Additionally, the analysis includes an in-depth credit analysis of the originator and servicer of the collateral. The analysis projects an expected loss for a deal given a set of assumptions specific to the asset type. These assumptions are used to calculate at what level of losses the deal will incur its first dollar of principal loss. The major assumptions used to calculate this ratio are loss severities, recovery lags, and no advances on principal and interest. Based on the analysis performed, the Company did not recognize a credit loss on asset backed securities during the period.

Commercial mortgage-backed securities (“CMBS”) - As of June 30, 2023, gross unrealized losses related to the CMBS portfolio were $5.880 million. The weighted average credit enhancement for the Company’s CMBS portfolio is 46.9. 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 at balloon. The resulting output is the expected loss adjusted cash flows for each bond under the base case and distressed scenarios. Based on the analysis performed, the Company did not recognize a credit loss on commercial mortgage-backed securities during the period.

Corporate bonds - As of June 30, 2023, gross unrealized losses related to corporate bonds were $12.038 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, analysis for this asset class includes maintaining detailed financial models that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. Based on the analysis performed, the Company did not recognize a credit loss on corporate bonds during the period.

Foreign bonds – As of June 30, 2023, gross unrealized losses related to foreign bonds were $6.641 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.

12

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

The Company recorded the following impairments on its investment portfolio for the quarters and six months ended June 30, 2023 and 2022 and are related to securities in an unrealized loss position where the Company had an intent to sell the securities:

	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2023		2022 (1)			2023		2022
Fixed maturities:
Impairment related to intent to sell		—		(680	)		—		(26,205	)
Total	$	—	$	(680	)	$	—	$	(26,205	)

(1)In response to a rising interest rate environment, the Company took action early in April 2022 to shorten the duration of its fixed maturities portfolio. In connection with these actions, the Company identified fixed maturities securities with a weighted average life of five years or greater as having an intent to sell resulting in other-than-temporary impairment losses. The majority of which were sold in the 2nd quarter of 2022. Most of the proceeds from the sale of these securities were reinvested into fixed income investments with maturities of two years. As a result of these actions, the Company's book yield rose over time. Book yield was approximately 2.2% at December 31, 2021 and 3.8% at June 30, 2023.

Accumulated Other Comprehensive Income (Loss), Net of Tax

Accumulated other comprehensive income, net of tax, as of June 30, 2023 and December 31, 2022 was as follows:

(Dollars in thousands)	June 30, 2023			December 31, 2022
Net unrealized gains (losses) from:
Fixed maturities	$	(45,961	)	$	(53,525	)
Foreign currency fluctuations		(328	)		(127	)
Deferred taxes		9,118			10,594
Accumulated other comprehensive income (loss), net of tax	$	(37,171	)	$	(43,058	)

The following tables present the changes in accumulated other comprehensive income, net of tax, by components, for the quarters and six months ended June 30, 2023 and 2022:

Quarter Ended June 30, 2023 (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	$	(34,314	)	$	(301	)	$	(34,615	)
Other comprehensive income (loss) before reclassification, before tax		(3,757	)		53			(3,704	)
Amounts reclassified from accumulated other comprehensive income, before tax		587			—			587
Other comprehensive income (loss), before tax		(3,170	)		53			(3,117	)
Income tax (expense) benefit		572			(11	)		561
Ending balance, net of tax	$	(36,912	)	$	(259	)	$	(37,171	)

Quarter Ended June 30, 2022 (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	$	(12,769	)	$	(3	)	$	(12,772	)
Other comprehensive loss before reclassification, before tax		(26,518	)		(287	)		(26,805	)
Amounts reclassified from accumulated other comprehensive income, before tax		9,317			—			9,317
Other comprehensive loss, before tax		(17,201	)		(287	)		(17,488	)
Income tax benefit		3,575			60			3,635
Ending balance, net of tax	$	(26,395	)	$	(230	)	$	(26,625	)

13

Six Months Ended June 30, 2023 (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	$	(42,958	)	$	(100	)	$	(43,058	)
Other comprehensive (loss) before reclassification, before tax		6,371			(201	)		6,170
Amounts reclassified from accumulated other comprehensive income, before tax		1,193			—			1,193
Other comprehensive income (loss), before tax		7,564			(201	)		7,363
Income tax (expense) benefit		(1,518	)		42			(1,476	)
Ending balance, net of tax	$	(36,912	)	$	(259	)	$	(37,171	)

Six Months Ended June 30, 2022 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income (Loss)
Beginning balance, net of tax	$	6,519		$	(115	)	$	6,404
Other comprehensive loss before reclassification, before tax		(79,267	)		(146	)		(79,413	)
Amounts reclassified from accumulated other comprehensive income, before tax		38,081			—			38,081
Other comprehensive loss, before tax		(41,186	)		(146	)		(41,332	)
Income tax benefit		8,272			31			8,303
Ending balance, net of tax	$	(26,395	)	$	(230	)	$	(26,625	)

The reclassifications out of accumulated other comprehensive income for the quarters and six months ended June 30, 2023 and 2022 were as follows:

		Amounts Reclassified from Accumulated Other Comprehensive Income
(Dollars in thousands)		Quarters Ended June 30,
Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Consolidated Statements of Operations	2023			2022
Unrealized gains and losses on available for sale securities	Other net realized investment (gains) losses	$	587		$	8,637
	Other than temporary impairment losses on investments		—			680
	Total before tax		587		$	9,317
	Income tax expense (benefit)		(108	)		(1,440	)
	Total reclassifications, net of tax	$	479		$	7,877

		Amounts Reclassified from Accumulated Other Comprehensive Income
(Dollars in thousands)		Six Months Ended June 30,
Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Consolidated Statements of Operations	2023			2022
Unrealized gains and losses on available for sale securities	Other net realized investment (gains) losses	$	1,193		$	11,876
	Other than temporary impairment losses on investments		—			26,205
	Total before tax		1,193		$	38,081
	Income tax expense (benefit)		(227	)		(7,119	)
	Total reclassifications, net of tax	$	966		$	30,962

14

Net Realized Investment Gains (Losses)

The components of net realized investment gains (losses) for the quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Fixed maturities:
Gross realized gains	$	9		$	456		$	14		$	662
Gross realized losses		(596	)		(9,773	)		(1,207	)		(38,743	)
Net realized gains (losses)		(587	)		(9,317	)		(1,193	)		(38,081	)
Equity securities:
Gross realized gains		209			2			784			1,806
Gross realized losses		(383	)		(2,417	)		(1,872	)		(5,566	)
Net realized gains (losses)		(174	)		(2,415	)		(1,088	)		(3,760	)
Derivatives:
Gross realized gains		—			2,872			—			8,960
Gross realized losses		—			(1,056	)		—			(2,420	)
Net realized gains (losses) (1)		—			1,816			—			6,540
Total net realized investment gains (losses)	$	(761	)	$	(9,916	)	$	(2,281	)	$	(35,301	)

(1)Includes periodic net interest settlements related to the derivatives of $1.1 million for the quarters ended June 30, 2022 and $2.5 million for the six months ended June 30, 2022.

The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of June 30, 2023 and 2022:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Net gains (losses) recognized during the period on equity securities	$	(174	)	$	(2,415	)	$	(1,088	)	$	(3,760	)
Less: net gains (losses) recognized during the period on equity securities sold during the period		—			(498	)		18			10,616
Unrealized gains (losses) recognized during the reporting period on equity securities	$	(174	)	$	(1,917	)	$	(1,106	)	$	(14,376	)

The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the six months ended June 30, 2023 and 2022 were as follows:

	Six Months Ended June 30,
(Dollars in thousands)	2023		2022
Fixed maturities	$	96,890	$	829,205
Equity securities		24		88,726

15

Net Investment Income

The sources of net investment income for the quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Fixed maturities	$	12,313		$	7,467		$	23,773		$	13,871
Equity securities		257			275			447			609
Cash and cash equivalents		300			99			563			131
Other invested assets		697			(5,300	)		1,164			(4,874	)
Total investment income		13,567			2,541			25,947			9,737
Investment expense		(351	)		(611	)		(723	)		(1,215	)
Net investment income	$	13,216		$	1,930		$	25,224		$	8,522

The Company’s total investment return on a pre-tax basis for the quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Net investment income	$	13,216		$	1,930		$	25,224		$	8,522
Net realized investment losses		(761	)		(9,916	)		(2,281	)		(35,301	)
Change in unrealized holding gains (losses)		(3,117	)		(17,488	)		7,363			(41,332	)
Net realized and unrealized investment returns		(3,878	)		(27,404	)		5,082			(76,633	)
Total investment return	$	9,338		$	(25,474	)	$	30,306		$	(68,111	)
Total investment return % (1)		0.7	%		(1.8	%)		2.3	%		(4.8	%)
Average investment portfolio (2)	$	1,345,235		$	1,395,519		$	1,343,024		$	1,429,227

(1)Not annualized.

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

As of June 30, 2023 and December 31, 2022, the Company did not own any fixed maturity securities that were non-income producing for the preceding twelve months.

Insurance Enhanced Asset-Backed and Credit Securities

As of June 30, 2023, the Company held insurance enhanced municipal bonds with a market value of approximately $6.2 million which represented 0.5% of the Company’s total cash and invested assets, net of payable/ receivable for securities purchased and sold. The financial guarantors of the Company’s $6.2 million municipal bonds include Assured Guaranty Corporation ($5.0 million) and Ambac Financial Group ($1.2 million).

The Company had no direct investments in the entities that have provided financial guarantees or other credit support to any security held by the Company at June 30, 2023.

16

Bonds Held on Deposit

Certain cash and cash equivalents and bonds available for sale were deposited with various governmental authorities in accordance with statutory requirements, were held as collateral, or were held in trust. The fair values were as follows as of June 30, 2023 and December 31, 2022:

	Estimated Fair Value
(Dollars in thousands)	June 30, 2023		December 31, 2022
On deposit with governmental authorities	$	20,983	$	19,290
Held in trust pursuant to third party requirements		164,845		161,901
Total (1)	$	185,828	$	181,191

(1)Includes cash and cash equivalents of $9.3 million and $3.7 million at June 30, 2023 and December 31, 2022, 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 variable interests in two VIE’s for which it is not the primary beneficiary. These investments are accounted for under the equity method of accounting as their ownership interest exceeds 3% of their respective investments.

The carrying value of one of the Company’s VIE’s, which invests in distressed securities and assets, was $4.4 million and $4.8 million as of June 30, 2023 and December 31, 2022, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $18.6 million and $19.0 million at June 30, 2023 and December 31, 2022, respectively. The carrying value and maximum exposure to loss of a second VIE that invests in Real Estate Investment Trust (“REIT”) qualifying assets was $9.4 million and $9.8 million as of June 30, 2023 and December 31, 2022, 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.

4.Derivative Instruments

Derivatives were used by the Company to reduce risks from changes in interest rates and limit exposure to severe equity market changes. The Company used interest rate swaps with terms to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company has also used exchange-traded futures contracts, which give the holder the right and obligation to participate in market movements at a future date, to allow the Company to react faster to market conditions. When using derivatives, the Company posts collateral and settles variation margin in cash on a daily basis equal to the amount of the derivatives’ change in value.

The Company accounts for the interest rate swaps and futures as non-hedge instruments and recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains or losses in the consolidated statements of operations. The Company is ultimately responsible for the valuation of the interest rate swaps. To aid in determining the estimated fair value of the interest rate swaps, the Company relies on the forward interest rate curve and information obtained from a third party financial institution.

17

The following table summarizes the net gains included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters and six months ended June 30, 2023 and 2022:

		Quarters Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	Consolidated Statements of Operations Line	2023		2022		2023		2022
Interest rate swap agreements	Net realized investment gains (losses)	$	—	$	1,816	$	—	$	6,540
Total		$	—	$	1,816	$	—	$	6,540

The Company terminated its outstanding interest rate swaps in the fourth quarter of 2022 and was not utilizing interest rate swap agreements as of December 31, 2022. There are no outstanding amounts related to the interest rate swap agreements on the consolidated balance sheets as of June 30, 2023 or December 31, 2022.

5.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.

18

The following table presents information about the Company’s invested assets measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.

	Fair Value Measurements
As of June 30, 2023 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasuries	$	388,762	$	—	$	—	$	388,762
Obligations of states and political subdivisions		—		30,606		—		30,606
Mortgage-backed securities		—		59,717		949		60,666
Commercial mortgage-backed securities		—		80,454		—		80,454
Asset-backed securities		—		204,315		—		204,315
Corporate bonds		—		329,939		1,725		331,664
Foreign corporate bonds		—		169,139		—		169,139
Total fixed maturities		388,762		874,170		2,674		1,265,606
Equity securities		—		16,040		1,113		17,153
Total assets measured at fair value	$	388,762	$	890,210	$	3,787	$	1,282,759

	Fair Value Measurements
As of December 31, 2022 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasuries	$	344,103	$	—	$	—	$	344,103
Obligations of states and political subdivisions		—		31,595		—		31,595
Mortgage-backed securities		—		61,156		960		62,116
Commercial mortgage-backed securities		—		98,664		—		98,664
Asset-backed securities		—		189,073		327		189,400
Corporate bonds		—		336,767		2,013		338,780
Foreign corporate bonds		—		183,540		—		183,540
Total fixed maturities		344,103		900,795		3,300		1,248,198
Equity securities		—		16,249		1,271		17,520
Total assets measured at fair value	$	344,103	$	917,044	$	4,571	$	1,265,718

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

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

The investments classified as Level 3 in the above table consist of fixed maturities and equity securities with unobservable inputs.

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The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters and six months ended June 30, 2023 and 2022:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Beginning balance	$	4,335		$	4,288		$	4,571		$	2,769
Total gains (realized / unrealized):
Included in accumulated other comprehensive income		(3	)		23			7			15
Included in earnings attributable to realized gains / losses		(113	)		(102	)		(172	)		(170	)
Transfers into level 3		—			607			—			857
Amortization of bond premium and discount, net		2			2			4			2
Purchases		39			55			113			1,479
Sales		(473	)		(523	)		(736	)		(602	)
Ending balance		3,787			4,350			3,787			4,350
Gains (losses) included in earnings attributable to the change in unrealized gains (losses) related to assets still held at end of reporting period	$	(103	)	$	(9	)	$	(162	)	$	(14	)

Fair Value of Alternative Investments

Other invested assets consist of limited partnerships whose carrying value approximates fair value. The following table provides the fair value and future funding commitments related to these investments at June 30, 2023 and December 31, 2022.

	June 30, 2023				December 31, 2022
(Dollars in thousands)	Fair Value		Future Funding Commitment		Fair Value		Future Funding Commitment
European Non-Performing Loan Fund, LP (1)	$	4,406	$	14,214	$	4,832	$	14,214
Mortgage Debt Fund, LP (2)		9,374		—		9,771		—
Global Debt Fund, LP (3)		23,502		—		23,573		—
Total	$	37,282	$	14,214	$	38,176	$	14,214

(1)This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets.

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

(3)This limited partnership invests in performing, stressed or distressed securities and loans across the global fixed income markets. The Company does have the contractual option to withdraw all or a portion of its limited partnership interest by providing notice to the fund.

Limited Liability Companies and Limited Partnerships with ownership interest exceeding 3%

The Company uses the equity method to account for investments in limited liability companies and limited partnerships where its ownership interest exceeds 3%. The equity method of accounting for an investment in limited liability companies and limited partnerships requires that its cost basis be updated to account for the income or loss earned on the investment. In the Fair Value of Alternative Investments table above, all of the investments are booked on a one quarter lag due to non-availability of data at the time the financial statements are prepared. The investment income (loss) associated with the limited liability companies and limited partnerships whose ownership interest exceeds 3% is reflected in the consolidated statements of operations in the amounts of $0.5 million and ($5.3) million for the quarters ended June 30, 2023 and 2022, respectively, and $0.6 million and ($5.4) million for the six months ended June 30, 2023 and 2022, respectively.

Pricing

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

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

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

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

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

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

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

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

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

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

During the quarters and six months ended June 30, 2023 and 2022, the Company has not adjusted quotes or prices obtained from the pricing vendors.

6.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 or agent, terminated agents, and other relevant factors.

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The following table is an analysis of the allowance for expected credit losses related to the Company's premium receivables for the quarters and six months ended June 30, 2023 and 2022:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Beginning balance	$	3,379		$	2,937		$	3,322		$	2,996
Current period provision for expected credit losses		1,369			536			1,717			619
Write-offs		(692	)		(554	)		(983	)		(696	)
Ending balance	$	4,056		$	2,919		$	4,056		$	2,919

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 following table is an analysis of the allowance for expected credit losses related to the Company's reinsurance receivables for the quarters and six months ended June 30, 2023 and 2022:

	Quarters Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2023		2022		2023		2022
Beginning balance	$	8,992	$	8,992	$	8,992	$	8,992
Current period provision for expected credit losses		—		—		—		—
Write-offs		—		—		—		—
Recoveries of amounts previously written off		—		—		—		—
Ending balance	$	8,992	$	8,992	$	8,992	$	8,992

7.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.

As of June 30, 2023, the statutory income tax rates of the countries where the Company conducts business are 21% in the United States, 0% in Bermuda, and 25% on non-trading income, 33% on capital gains and 12.5% on trading income in the Republic of Ireland. The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense.

The Company’s income (loss) before income taxes is derived from its U.S. subsidiaries for the quarters and six months ended June 30, 2023 and 2022.

The following table summarizes the components of income tax expense (benefit):

	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2023		2022			2023		2022
Deferred income tax expense (benefit):
U.S. Federal	$	2,371	$	(626	)	$	2,944	$	(4,039	)
Total deferred income tax expense (benefit)		2,371		(626	)		2,944		(4,039	)
Total income tax expense (benefit)	$	2,371	$	(626	)	$	2,944	$	(4,039	)

The weighted average expected tax provision has been calculated using income (loss) before income taxes in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate.

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The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate:

	Quarters Ended June 30,
	2023						2022
(Dollars in thousands)	Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income
Expected tax provision at weighted average tax rate	$	2,459			21.0	%	$	(2,686	)		21.0	%
Adjustments:
Dividend exclusion		(21	)		(0.2	)		(24	)		0.2
Parent income treated as partnership for tax		(146	)		(1.2	)		1,827			(14.3	)
Other		79			0.7			257			(2.0	)
Effective income tax expense (benefit)	$	2,371			20.3	%	$	(626	)		4.9	%

The effective income tax expense rate for the quarter ended June 30, 2023 was 20.3% compared to an effective income tax benefit rate of 4.9% for the quarter ended June 30, 2022. The difference between 2023 and 2022 is primarily due to a change in income or loss at the parent company which is treated as a partnership for tax.

	Six Months Ended June 30,
	2023						2022
(Dollars in thousands)	Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income
Expected tax provision at weighted average tax rate	$	3,103			21.0	%	$	(6,505	)		21.0	%
Adjustments:
Dividend exclusion		(38	)		(0.3	)		(46	)		0.1
Parent (income) loss treated as partnership for tax		(342	)		(2.3	)		2,070			(6.7	)
Other		221			1.5			442			(1.4	)
Effective income tax expense (benefit)	$	2,944			19.9	%	$	(4,039	)		13.0	%

The effective income tax expense rate for the six months ended June 30, 2023 was 19.9% compared to an effective income tax benefit rate of 13.0% for the six months ended June 30, 2022. The difference between 2023 and 2022 is primarily due to a change in income or loss at the parent company which is treated as a partnership for tax.

The Company has a net operating loss (“NOL”) carryforward of $98.1 million as of June 30, 2023, which begins to expire in 2036 based on when the original NOL was generated. The Company’s NOL carryforward as of December 31, 2022 was $116.4 million.

The Company did not have any Section 163(j) ("163(j)") carryforward as of June 30, 2023 or December 31, 2022. The 163(j) carryforward relates to the limitation on the deduction for business interest expense paid or accrued.

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8.Liability for Unpaid Losses and Loss Adjustment Expenses

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

	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2023		2022			2023		2022
Balance at beginning of period	$	857,520	$	770,332		$	832,404	$	759,904
Less: Ceded reinsurance receivables		73,665		93,194			73,021		94,443
Net balance at beginning of period		783,855		677,138			759,383		665,461
Incurred losses and loss adjustment expenses related to:
Current year		78,031		96,189			166,032		183,947
Prior years		51		(3,571	)		51		(6,634	)
Total incurred losses and loss adjustment expenses		78,082		92,618			166,083		177,313
Paid losses and loss adjustment expenses related to:
Current year		24,565		29,079			34,184		42,394
Prior years		44,354		30,201			98,264		89,904
Total paid losses and loss adjustment expenses		68,919		59,280			132,448		132,298
Net balance at end of period		793,018		710,476			793,018		710,476
Plus: Ceded reinsurance receivables		73,933		94,185			73,933		94,185
Balance at end of period	$	866,951	$	804,661		$	866,951	$	804,661

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

During the second quarter of 2023, the Company's increased its prior accident year loss reserves by $0.1 million, which consisted of a $5.0 million increase related to Commercial Specialty, a $1.0 million increase related to Reinsurance Operations, and a $5.9 million decrease related to Exited Lines.

The $5.0 million increase in prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

•Property: A $1.0 million decrease primarily recognizes lower than expected claims severity in the 2020 and 2022 accident years, partially offset by increases in the 2015 accident year.

•General Liability: A $6.1 million increase primarily recognizes higher than expected claims severity in the 2017 through 2022 accident years partially offset by decreases in accident years prior to 2006 primarily related to construction defect.

The $1.0 million increase of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:

•Professional: A $1.1 million increase in the 2022 accident year recognizes higher prior accident year case incurred emergence than expected.

•General Liability: A $0.1 million decrease based on information received from the cedants.

The $5.9 million decrease in prior accident year loss reserves related to Exited Lines primarily consisted of the following:

•Property: A $1.1 million increase primarily in Property Brokerage. The increase reflects higher than expected claims severity in the 2014, 2021 and 2022 accident years partially offset by lower than expected severity in the 2017 and 2020 accident years.

•Reinsurance: A $6.2 million decrease in the 2012 and 2015 through 2021 accident years based on information received from cedants, primarily in the property treaties.

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•General Liability: A $0.9 million decrease primarily recognizes lower than expected severity in the 2014 through 2017 accident years, partially offset by an increase in the 2019 accident year.

During the second quarter of 2022, the Company decreased its prior accident year loss reserves by $3.6 million, which consisted of a $2.3 million decrease related to Commercial Specialty, a $1.2 million decrease related to Reinsurance Operations, and a $0.1 million decrease related to Exited Lines.

The $2.3 million decrease of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

•Property: A $3.4 million decrease primarily recognizes lower than expected claims severity in the 2015 and 2018 through 2021 accident years.

•General Liability: A $1.2 million increase reflects higher than expected claims severity in accident years prior to 2005, 2016, 2017, 2019 and 2020 accident years, partially offset by decreases in the 2010 through 2015, 2018 and 2021 accident years.

The $1.2 million reduction of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:

•Professional: A $1.2 million decrease was recognized in the 2016 accident year reflecting a reduction in the ultimate for the claims-made segment; the inception-to-date case incurred remains zero in this year.

The $0.1 million reduction of prior accident year loss reserves related to Exited Lines consisted of the following:

•Property: A $2.0 million increase reflects higher than expected claims severity in the 2015 through 2018 accident years, partially offset by a decrease in the 2011 and 2021 accident years.

•Reinsurance: A $2.1 million decrease primarily in the 2017 through the 2021 accident years based on the reported information from cedants.

During the first six months of 2023, the Company increased its prior accident year loss reserves by $0.1 million, which consisted of a $6.5 million increase related to Commercial Specialty, a $1.0 million increase related to Reinsurance Operations, and a $7.4 million decrease related to Exited Lines.

The $6.5 million increase of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

•Property: A $0.8 million decrease recognizes lower than expected claims severity in the 2021 accident year, partially offset by increases in the 2015, 2019, 2020, and 2022 accident years.

•General Liability: A $7.3 million increase recognizes higher than expected claims severity in the 2013, 2015, 2017, and 2019 through 2022 accident years, partially offset by decreases in accident years prior to 2006 related to construction defect and the 2011 accident year.

The $1.0 million increase of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:

•Professional: A $1.1 million increase in the 2022 accident year recognizes higher prior accident year case incurred emergence than expected.

•General Liability: A $0.1 million decrease based on information received from the cedants.

The $7.4 million reduction of prior accident year loss reserves related to Exited Lines primarily consisted of the following:

•Property: A $1.3 million increase reflects higher than expected claims severity in the 2014, 2021 and 2022 accident years in Property Brokerage, partially offset by lower than expected severity in the 2016, 2017 and 2020 accident years.

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•Reinsurance: A $7.3 million decrease in the 2012 and 2015 through 2021 accident years based on information received from cedants, primarily in the property treaties.

•General Liability: A $1.4 million decrease primarily recognizes lower than expected severity in the 2014 through 2017 accident years, partially offset by an increase in the 2022 accident year.

During the first six months of 2022, the Company decreased its prior accident year loss reserves by $6.6 million, which consisted of a $0.4 million decrease related to Commercial Specialty, a $1.2 million decrease related to Reinsurance Operations, and a $5.0 million decrease related to Exited Lines.

The $0.4 million decrease of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

•Property: A $1.5 million decrease primarily recognizes lower than expected claims severity in the 2019 and 2021 accident years, partially offset by increases in the 2015 and 2018 accident years.

•General Liability: A $1.2 million increase reflects higher than expected claims severity in accident years prior to 2005, 2010, 2016, 2017, 2019 and 2020 accident years, partially offset by decreases in the 2006, 2007, 2011 through 2015, 2018 and 2021 accident years.

The $1.2 million reduction of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:

•Professional: A $1.2 million decrease was recognized in the 2016 accident year reflecting a reduction in the ultimate for the claims-made segment; the inception-to-date case incurred remains zero in this year.

The $5.0 million reduction of prior accident year loss reserves related to Exited Lines primarily consisted of the following:

•Property: A $0.2 million decrease primarily in the 2011, 2018 and 2021 accident years, partially offset by increases in the 2015 through 2017 and 2020 accident years.

•Reinsurance: A $4.3 million decrease primarily in the 2017 through the 2021 accident years based on reported information from the cedants.

•General Liability: A $0.6 million reduction in the 2017, 2019 and 2021 accident years partially offset by an increase in the 2018 accident year.

9.Shareholders’ Equity

Repurchases of the Company's class A common shares

On October 21, 2022, Global Indemnity Group, LLC announced it commenced a stock repurchase program beginning in the fourth quarter of 2022. On January 3, 2023, Global Indemnity Group, LLC announced that it had authorized an increase in the aggregate stock purchase program from $32 million, which was authorized on October 21, 2022, to $60 million. On June 8, 2023, Global Indemnity Group, LLC's Board of Directors approved an additional increase in the existing share buyback authorization amount of $60 million to $135 million. The authorization to repurchase will expire on December 31, 2027. The timing and actual number of shares repurchased, if any, will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities.

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The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2023:

Period (1)	Total Number of Shares Purchased			Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
January 1-31, 2023		3,302	(3)	$	23.31		—		—
January 1-31, 2023		250,000	(4)	$	25.90		250,000	$	106,604,066
April 1-30, 2023		200,000	(4)	$	28.00		200,000	$	101,004,066
June 1-30, 2023		15,558	(3)	$	33.74		—	$	101,004,066
Total		468,860		$	27.04

(1)Based on settlement date.

(2)Based on the $135 million share repurchase authorization.

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

(4)Purchased as part of the repurchase program announced in October 2022.

The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2022:

Period (1)	Total Number of Shares Purchased			Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
January 1-31, 2022		4,781	(2)	$	25.13		—		—
June 1-30, 2022		11,173	(2)	$	26.28		—		—
Total		15,954		$	25.94	—		—

(1)Based on settlement date.

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

There were no class B common shares that were surrendered or repurchased during the quarters and six months ended June 30, 2023 or 2022.

Each class A common share has one vote and each class B common share has ten votes.

As of June 30, 2023, Global Indemnity Group, LLC’s class A common shares were held by approximately 140 shareholders of record. There were two holders of record of Global Indemnity Group, LLC’s class B common shares, all of whom are affiliated investment funds of Fox Paine & Company, LLC, as of June 30, 2023. Global Indemnity Group, LLC’s preferred shares were held by 1 holder of record, an affiliate of Fox Paine & Company, LLC, as of June 30, 2023.

Please see Note 16 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2022 Annual Report on Form 10-K for more information on the Company’s repurchase program.

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Distributions

Distribution payments of $0.25 per common share were declared during the six months ended June 30, 2023 as follows:

Approval Date	Record Date	Payment Date	Total Distributions Declared (Dollars in thousands)
March 2, 2023	March 24, 2023	March 31, 2023	$	3,410
June 1, 2023	June 23, 2023	June 30, 2023		3,375
Various (1)	Various	Various		(21	)
Total			$	6,764

(1)Represents distributions declared on unvested shares, net of forfeitures.

Distribution payments of $0.25 per common share were declared during the six months ended June 30, 2022 as follows:

Approval Date	Record Date	Payment Date	Total Distributions Declared (Dollars in thousands)
March 3, 2022	March 21, 2022	March 31, 2022	$	3,597
June 2, 2022	June 20, 2022	June 30, 2022		3,602
Various (1)	Various	Various		190
Total			$	7,389

(1)Represents distributions declared on unvested shares, net of forfeitures.

In addition, distributions paid to Global Indemnity Group, LLC's preferred shareholder were $0.1 million in each of the quarters ended June 30, 2023 and 2022 and $0.2 million in each of the six months ended June 30, 2023 and 2022.

Accrued distributions on unvested shares, which were included in other liabilities on the consolidated balance sheets, were $0.3 million and $1.1 million as of June 30, 2023 and December 31, 2022, respectively. Accrued preferred distributions were less than $0.1 million as of both June 30, 2023 and December 31, 2022 and were included in other liabilities on the consolidated balance sheets.

Please see Note 16 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2022 Annual Report on Form 10-K for more information on the Company’s distribution program.

10.Related Party Transactions

Fox Paine Entities

Pursuant to Global Indemnity Group, LLC’s Limited Liability Company Agreement (“LLCA”), Fox Paine Capital Fund II International, L.P. (the “Fox Paine Fund”), together with Fox Mercury Investments, L.P. and certain of its affiliates (the “FM Entities”), and Fox Paine & Company LLC (collectively, the “Fox Paine Entities”) currently constitute a Class B Majority Shareholder (as defined in the LLCA) and, as such, have the right to appoint a number of Global Indemnity Group, LLC’s directors equal in aggregate to the pro rata percentage of the voting power in Global Indemnity Group, LLC beneficially held by the Fox Paine Entities, rounded up to the nearest whole number of directors. The Fox Paine Entities beneficially own shares representing approximately 83.9% of the voting power of Global Indemnity Group, LLC as of June 30, 2023. 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 and $0.7 million were incurred during the quarters ended June 30, 2023 and 2022, respectively, and management fee expense of $1.5 million and $1.4 million were incurred during the six months ended June 30, 2023 and 2022, respectively. Prepaid management fees, which were included in other assets on the consolidated balance sheets, were $0.5 million and $2.1 million as of June 30, 2023 and December 31, 2022, 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

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transactions with Fox Paine & Company, LLC are reviewed and approved by Global Indemnity Group, LLC’s Conflicts Committee, which is composed of independent directors, and the Board of Directors (other than Saul A. Fox, Chairman of the Board of Directors of Global Indemnity Group, LLC and Chief Executive of Fox Paine & Company, LLC, who is not a member of the Conflicts Committee and recused himself from the Board of Directors’ deliberations related to fees paid to Fox Paine & Company, LLC or its affiliates).

11.Commitments and Contingencies

Legal Proceedings

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

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

Commitments

In 2014, the Company entered into a $50 million commitment to purchase an alternative investment vehicle which is comprised of European non-performing loans. As of June 30, 2023, the Company has funded $35.8 million of this commitment leaving $14.2 million as unfunded. Since the investment period has concluded, the Company expects minimal 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 10 above for additional information pertaining to this management agreement.

12.Share-Based Compensation Plans

Share Incentive Plan

On June 14, 2023, the Company’s Shareholders approved the Global Indemnity Group, LLC 2023 Share Incentive Plan (“the 2023 Plan”). The primary purpose of the 2023 Plan is to provide Global Indemnity a competitive advantage in attracting, retaining, and motivating officers, employees, consultants and non-employee directors, and to position Global Indemnity to offer incentives linked to the financial results of the Company’s business and increases in shareholder value. Under the 2023 Plan, the Company may issue up to 2.5 million class A common shares pursuant to awards granted under the Plan. The 2023 Plan replaced the Global Indemnity Group, LLC 2018 Share Incentive Plan, as amended and restated on August 28, 2020 which expired pursuant to its terms on March 4, 2023.

Options

No stock options were awarded during the quarters and six months ended June 30, 2023 or 2022. No unvested stock options were forfeited during the quarters and six months ended June 30, 2023 or 2022.

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Restricted Shares / Restricted Stock Units

There were no restricted class A common shares or restricted stock units granted to key employees during the quarters and six months ended June 30, 2023 and 2022. There were no restricted class A common shares or restricted stock units forfeited during the quarter and six months ended June 30, 2023 and 2022.

There were 49,628 and 35,442 restricted stock units that vested during the quarters ended June 30, 2023 and 2022, respectively, and 75,541 and 61,522 restricted stock units that vested during the six months ended June 30, 2023 and 2022, respectively Upon vesting, the restricted stock units converted to restricted class A common shares.

During the quarters ended June 30, 2023 and 2022, the Company granted 22,279 and 25,760 class A common shares, respectively, at a weighted average grant date value of $30.20 and $25.96 per share, respectively, to non-employee directors of the Company under the Plan. During the six months ended June 30, 2023 and 2022, the Company granted 48,705 and 50,570 class A common shares, respectively, at a weighted average grant date value of $27.63 and $25.80 per share, respectively, to non-employee directors of the Company under the Plan. The Company previously granted 157,139 shares to a non-employee director with deferred vesting. These shares vested on January 13, 2023. All other shares granted to non-employee directors of the Company are fully vested but are subject to certain restrictions.

Rule 10b5-1 Trading Plans

The Company did not have any Rule 10b5-1 Trading Plans in place during the six months ended June 30, 2023 and 2022.

13.Earnings Per Share

Earnings per share have been 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:

	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands, except share and per share data)	2023		2022			2023		2022
Numerator:
Net income (loss)	$	9,337	$	(12,162	)	$	11,831	$	(26,935	)
Less: preferred stock distributions		110		110			220		220
Net income (loss) available to common shareholders	$	9,227	$	(12,272	)	$	11,611	$	(27,155	)
Denominator:
Weighted average shares for basic earnings per share		13,478,014		14,543,234			13,573,841		14,529,170
Non-vested restricted stock units		61,579		—			58,571		—
Options		168,391		—			161,809		—
Weighted average shares for diluted earnings per share (1)		13,707,984		14,543,234			13,794,221		14,529,170
Earnings per share - Basic	$	0.68	$	(0.84	)	$	0.86	$	(1.87	)
Earnings per share - Diluted	$	0.67	$	(0.84	)	$	0.84	$	(1.87	)

(1)For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period.

If the Company had not incurred a loss in the quarter ended June 30, 2022, 14,749,370 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 June 30, 2022 would have included 110,417 shares of non-vested restricted stock units and 95,719 share equivalents for options.

If the Company had not incurred a loss in the six months ended June 30, 2022, 14,728,182 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

30

the diluted calculation for the six months ended June 30, 2022 would have included 103,670 shares of non-vested restricted stock units and 95,342 share equivalents for options.

The weighted average shares outstanding used to determine dilutive earnings per share does not include 346,667 shares for both the quarter and six months ended June 30, 2023 and 393,333 shares for both the quarter and six months ended June 30, 2022, which were deemed to be anti-dilutive.

14.Segment Information

During the fourth quarter of 2022, the Company restructured its insurance operations to strengthen its market presence and enhance its focus on GBLI’s core Package Specialty and Targeted Specialty products. As a result, the Company exited four brokerage divisions: Professional Liability, Excess Casualty, Environmental, and Middle Market Property. The Company ceased writing new business and existing renewals were placed in run-off for these four divisions. Based on the decisions to exit these lines of business, the Company changed the way it manages and analyzes its operating results. The chief operating decision makers decided they will be reviewing the specific results of these exited lines within the Company's Exited Lines segment. In addition, a decision was made in the fourth quarter of 2022 to reclassify several smaller reinsurance treaties from Reinsurance Operations to Commercial Specialty. Management believes these segment changes allow users of the Company’s financial statements to better understand the Company's performance, better assess prospects for future net cash flows, and make more informed judgments about the Company as a whole. Accordingly, the segment results for the quarter and six months ended June 30, 2022 have been revised to reflect these changes.

The Company manages its business through two ongoing business segments. Commercial Specialty offers specialty property and casualty products designed for GBLI's Package Specialty and Targeted Specialty product offerings. These product lines are offered primarily in the excess and surplus lines marketplace. Reinsurance Operations provides reinsurance and insurance solutions through brokers and primary writers including insurance and reinsurance companies. The Company also has an Exited Lines segment that contains lines of business that are no longer being written or are in runoff.

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The following are tabulations of business segment information for the quarters and six months ended June 30, 2023 and 2022. Corporate information is included to reconcile segment data to the consolidated financial statements.

Quarter Ended June 30, 2023 (Dollars in thousands)	Commercial Specialty		Reinsurance Operations			(1)	Exited Lines			Total
Revenues:
Gross written premiums	$	95,347	$	14,844			$	(91	)	$	110,100
Net written premiums	$	91,896	$	14,844			$	(744	)	$	105,996
Net earned premiums	$	93,408	$	29,585			$	6,163		$	129,156
Other income		266		9				26			301
Total revenues		93,674		29,594				6,189			129,457
Losses and Expenses:
Net losses and loss adjustment expenses		58,662		19,512				(92	)		78,082
Acquisition costs and other underwriting expenses		33,972		10,737				2,392			47,101
Income (loss) from segments	$	1,040	$	(655	)		$	3,889		$	4,274
Unallocated Items:
Net investment income											13,216
Net realized investment losses											(761	)
Other loss											(19	)
Corporate and other operating expenses											(4,990	)
Interest expense											(12	)
Income before income taxes											11,708
Income tax expense											(2,371	)
Net income										$	9,337
Segment assets	$	999,271	$	383,040			$	222,491		$	1,604,802
Corporate assets											169,200
Total assets										$	1,774,002

(1)External business only, excluding business assumed from affiliates.

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Quarter Ended June 30, 2022 (Dollars in thousands)	Commercial Specialty		Reinsurance Operations		(1)	Exited Lines			Total
Revenues:
Gross written premiums	$	105,010	$	46,524		$	45,289		$	196,823
Net written premiums	$	99,667	$	46,524		$	20,967		$	167,158
Net earned premiums	$	93,997	$	39,162		$	22,590		$	155,749
Other income (loss)		260		20			(196	)		84
Total revenues		94,257		39,182			22,394			155,833
Losses and Expenses:
Net losses and loss adjustment expenses		52,804		22,793			17,021			92,618
Acquisition costs and other underwriting expenses		35,543		14,553			11,002			61,098
Income (loss) from segments	$	5,910	$	1,836		$	(5,629	)	$	2,117
Unallocated Items:
Net investment income										1,930
Net realized investment losses										(9,916	)
Other income										13
Corporate and other operating expenses										(2,993	)
Interest expense										(410	)
Loss on extinguishment of debt										(3,529	)
Loss before income taxes										(12,788	)
Income tax benefit										626
Net loss										(12,162	)
Segment assets	$	1,002,120	$	326,804		$	384,991		$	1,713,915
Corporate assets										147,864
Total assets									$	1,861,779

(1)External business only, excluding business assumed from affiliates.

Six Months Ended June 30, 2023 (Dollars in thousands)	Commercial Specialty			Reinsurance Operations		(1)	Exited Lines		Total
Revenues:
Gross written premiums	$	190,855		$	38,260		$	3,970	$	233,085
Net written premiums	$	183,130		$	38,260		$	467	$	221,857
Net earned premiums	$	186,590		$	64,432		$	18,206	$	269,228
Other income		533			—			103		636
Total revenues		187,123			64,432			18,309		269,864
Losses and Expenses:
Net losses and loss adjustment expenses		118,781			40,775			6,527		166,083
Acquisition costs and other underwriting expenses		69,498			23,553			7,528		100,579
Income (loss) from segments	$	(1,156	)	$	104		$	4,254	$	3,202
Unallocated Items:
Net investment income										25,224
Net realized investment losses										(2,281	)
Corporate and other operating expenses										(11,358	)
Interest expense										(12	)
Income before income taxes										14,775
Income tax expense										(2,944	)
Net income									$	11,831
Segment assets	$	999,271		$	383,040		$	222,491	$	1,604,802
Corporate assets										169,200
Total assets									$	1,774,002

(1)External business only, excluding business assumed from affiliates.

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Six Months Ended June 30, 2022 (Dollars in thousands)	Commercial Specialty		Reinsurance Operations		(1)	Exited Lines			Total
Revenues:
Gross written premiums	$	207,858	$	87,520		$	92,428		$	387,806
Net written premiums	$	197,830	$	87,520		$	41,290		$	326,640
Net earned premiums	$	185,194	$	73,460		$	45,918		$	304,572
Other income		519		—			4			523
Total revenues		185,713		73,460			45,922			305,095
Losses and Expenses:
Net losses and loss adjustment expenses		106,463		43,852			26,998			177,313
Acquisition costs and other underwriting expenses		69,069		26,514			22,207			117,790
Income (loss) from segments	$	10,181	$	3,094		$	(3,283	)	$	9,992
Unallocated Items:
Net investment income										8,522
Net realized investment losses										(35,301	)
Corporate and other operating expenses										(7,653	)
Interest expense										(3,005	)
Loss on extinguishment of debt										(3,529	)
Loss before income taxes										(30,974	)
Income tax benefit										4,039
Net loss									$	(26,935	)
Segment assets	$	1,002,120	$	326,804		$	384,991		$	1,713,915
Corporate assets										147,864
Total assets									$	1,861,779

(1)External business only, excluding business assumed from affiliates.

15.New Accounting Pronouncements

The Company did not adopt any new accounting pronouncements during the six months ended June 30, 2023.

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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, 2022.

Financial Highlights

2023 Second Quarter Results of Operations

•Net income of $9.3 million, or $0.68 per share basic and $0.67 per share diluted

•Net earned premium of $129.2 million; Property: 31% and Casualty: 69%

•Continuing Lines accident year combined ratio of 94.9% for the quarter ended June 30, 2023 compared to 96.8% for the same period in 2022. Continuing Lines' accident year combined ratio is comprised of the accident year ratios of the Company's Commercial Specialty and Reinsurance Operations segments.

oThe accident year combined ratio was 93.7% for Commercial Specialty's and 98.9% for Reinsurance Operations during the quarter ended June 30, 2023.

oThe accident year combined ratio was 96.4% for Commercial Specialty's and 97.9% for Reinsurance Operations during the quarter ended June 30, 2022.

•Net investment income of $13.2 million. Book yield on the fixed maturities portfolio was 3.8%.

•Net realized investment losses of $0.8 million

•Operating cash flows of $14.2 million

2023 Second Quarter Consolidated Financial Condition

•Total investments of $1.3 billion; fixed maturities and short-term securities comprise 96% of total investments

•Total assets of $1.8 billion

•No third party debt

•Total capital returned to shareholders of $602.6 million, comprising $522.2 million of share repurchases and $80.4 million of distributions / dividends. This includes $9.1 million of capital returned in the second quarter of 2023 which is comprised of $5.6 million of share repurchases and $3.5 million of distributions.

•Shareholders' equity of $626.4 million

•Book value per common share of $46.03

Results of Operations

During the quarter ended June 30, 2023, net income of $9.3 million was realized. The $9.3 million of net income is significantly better than the $12.2 million net loss realized in the same period in 2022 and net income of $2.5 million from the quarter ended March 31, 2023. Post March 31, 2023, actions have been taken to reduce exposures at commercial vacant properties. The Continuing Lines accident year underwriting income(1) for the quarter ended June 30, 2023 was $6.5 million and the accident year combined ratio(1) was 94.9%. Net investment income significantly increased in the second quarter of 2023 compared to the same period in 2022. Book yield of the fixed income investment portfolio was 3.8% at June 30, 2023

35

compared to 2.2% at December 31, 2021. Actions taken to focus on Continuing Lines and to reposition the investment portfolio in early 2022 are improving results.

The following table summarizes the Company’s results for the quarters and six months ended June 30, 2023 and 2022:

	Quarters Ended June 30,						%			Six Months Ended June 30,						%
(Dollars in thousands)	2023			2022			Change			2023			2022			Change
Gross written premiums	$	110,100		$	196,823			(44.1	%)	$	233,085		$	387,806			(39.9	%)
Net written premiums	$	105,996		$	167,158			(36.6	%)	$	221,857		$	326,640			(32.1	%)
Net earned premiums	$	129,156		$	155,749			(17.1	%)	$	269,228		$	304,572			(11.6	%)
Other income		301			84			258.3	%		636			523			21.6	%
Total revenues		129,457			155,833			(16.9	%)		269,864			305,095			(11.5	%)
Losses and expenses:
Net losses and loss adjustment expenses		78,082			92,618			(15.7	%)		166,083			177,313			(6.3	%)
Acquisition costs and other underwriting expenses		47,101			61,098			(22.9	%)		100,579			117,790			(14.6	%)
Underwriting income		4,274			2,117			101.9	%		3,202			9,992			(68.0	%)
Net investment income		13,216			1,930		NM				25,224			8,522			196.0	%
Net realized investment losses		(761	)		(9,916	)		(92.3	%)		(2,281	)		(35,301	)		(93.5	%)
Other income (loss)		(19	)		13			(246.2	%)		—			—			—
Corporate and other operating expenses		(4,990	)		(2,993	)		66.7	%		(11,358	)		(7,653	)		48.4	%
Interest expense		(12	)		(410	)		(97.1	%)		(12	)		(3,005	)		(99.6	%)
Loss on extinguishment of debt		—			(3,529	)		(100.0	%)		—			(3,529	)		(100.0	%)
Income (loss) before income taxes		11,708			(12,788	)		(191.6	%)		14,775			(30,974	)		(147.7	%)
Income tax expense (benefit)		2,371			(626	)	NM				2,944			(4,039	)		(172.9	%)
Net income (loss)	$	9,337		$	(12,162	)		(176.8	%)	$	11,831		$	(26,935	)		(143.9	%)
Underwriting Ratios:
Loss ratio (2):		60.5	%		59.5	%					61.7	%		58.2	%
Expense ratio (3)		36.5	%		39.2	%					37.4	%		38.7	%
Combined ratio (4)		97.0	%		98.7	%					99.1	%		96.9	%

(1)The Continuing Lines accident year underwriting income of $6.5 million is a non-GAAP measure which excludes the impact of prior accident year losses and loss adjustment expenses and prior accident year contingent commission expenses totaling $6.1 million. The Company's most directly comparable GAAP measure is the Continuing Lines underwriting income of $0.4 million. The Continuing Lines accident year combined ratio of 94.9% is a non-GAAP ratio which excludes the impact of prior accident year losses and loss adjustment expenses and prior accident year contingent commission expenses totaling 5.1%. The Company's most directly comparable GAAP ratio is the Continuing Lines combined ratio of 100.0%. The Company believes the non-GAAP measures or ratios are useful to investors when evaluating the Company's underwriting performance as trends within Continuing Lines may be obscured by prior accident year adjustments. These non-GAAP measures or ratios should not be considered as a substitute for its most directly comparable GAAP measure or ratio and does not reflect the overall underwriting profitability of the Company.

(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 underwriting 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.

NM – not meaningful

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Premiums

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

	Quarters Ended June 30,								Six Months Ended June 30,
(Dollars in thousands)	2023			2022		% Change			2023		2022		% Change
Gross written premiums (1)
Commercial Specialty	$	95,347		$	105,010		(9.2	%)	$	190,855	$	207,858		(8.2	%)
Reinsurance Operations (3)		14,844			46,524		(68.1	%)		38,260		87,520		(56.3	%)
Continuing Lines		110,191			151,534		(27.3	%)		229,115		295,378		(22.4	%)
Exited Lines		(91	)		45,289		(100.2	%)		3,970		92,428		(95.7	%)
Total gross written premiums	$	110,100		$	196,823		(44.1	%)	$	233,085	$	387,806		(39.9	%)
Ceded written premiums
Commercial Specialty	$	3,451		$	5,343		(35.4	%)	$	7,725	$	10,028		(23.0	%)
Reinsurance Operations (3)		—			—		—			—		—		—
Continuing Lines		3,451			5,343		(35.4	%)		7,725		10,028		(23.0	%)
Exited Lines		653			24,322		(97.3	%)		3,503		51,138		(93.1	%)
Total ceded written premiums	$	4,104		$	29,665		(86.2	%)	$	11,228	$	61,166		(81.6	%)
Net written premiums (2)
Commercial Specialty	$	91,896		$	99,667		(7.8	%)	$	183,130	$	197,830		(7.4	%)
Reinsurance Operations (3)		14,844			46,524		(68.1	%)		38,260		87,520		(56.3	%)
Continuing Lines		106,740			146,191		(27.0	%)		221,390		285,350		(22.4	%)
Exited Lines		(744	)		20,967		(103.5	%)		467		41,290		(98.9	%)
Total net written premiums	$	105,996		$	167,158		(36.6	%)	$	221,857	$	326,640		(32.1	%)
Net earned premiums
Commercial Specialty	$	93,408		$	93,997		(0.6	%)	$	186,590	$	185,194		0.8	%
Reinsurance Operations (3)		29,585			39,162		(24.5	%)		64,432		73,460		(12.3	%)
Continuing Lines		122,993			133,159		(7.6	%)		251,022		258,654		(3.0	%)
Exited Lines		6,163			22,590		(72.7	%)		18,206		45,918		(60.4	%)
Total net earned premiums	$	129,156		$	155,749		(17.1	%)	$	269,228	$	304,572		(11.6	%)

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

(2)Net written premiums equal gross written premiums less ceded written premiums.

(3)External business only, excluding business assumed from affiliates.

Gross written premiums decreased by 44.1% and 39.9% for the quarter and six months ended June 30, 2023 as compared to same periods in 2022. The decrease in gross written premiums is being driven by a reduction in premiums in both Continuing Lines as well as Exited Lines. The reduction in Continuing Lines is primarily due to the non-renewal of a casualty treaty within Reinsurance Operations, the non-renewal of a restaurant book of business within Commercial Specialty, and actions taken within Commercial Specialty to improve underwriting results by not renewing underperforming business. These decreases were partially offset by increased pricing within Commercial Specialty.

To support future growth in the Company's Commercial Specialty segment and provide capital for business initiatives including share repurchases, a decision was made to reduce writings in its Reinsurance Operations. The Company anticipates that its Reinsurance Operations will comprise a smaller percentage of the Company's overall business prospectively.

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Net Retention

The ratio of net written premiums to gross written premiums is referred to as the Company’s net premium retention. The Company’s net premium retention is summarized by segments as follows:

	Quarters Ended June 30,						Point		Six Months Ended June 30,						Point
(Dollars in thousands)	2023			2022			Change		2023			2022			Change
Commercial Specialty		96.4	%		94.9	%		1.5		96.0	%		95.2	%		0.8
Reinsurance Operations		100.0	%		100.0	%		—		100.0	%		100.0	%		—
Continuing Lines		96.9	%		96.5	%		0.4		96.6	%		96.6	%		0.0
Exited Lines		817.6	%		46.3	%		771.3		11.8	%		44.7	%		(32.9	)
Total		96.3	%		84.9	%		11.4		95.2	%		84.2	%		11.1

The net premium retention for the quarter and six months ended June 30, 2023 increased by 11.4 points and 11.1 points, respectively, as compared to the same periods in 2022. While the Company still has ceding arrangements in place related to the sale of renewal rights, the Company's overall net retention is not significantly impacted in 2023 as Exited Lines' gross written premiums comprise a much smaller percentage of the Company's consolidated gross written premiums. See Note 3 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2022 Annual Report on Form 10-K for additional information on the sale of renewal rights related to the Company’s manufactured and dwelling homes business and the Company's Farm, Ranch & Stable business.

Net Earned Premiums

Net earned premiums within the Commercial Specialty segment decreased by 0.6% for the quarter ended June 30, 2023 as compared to the same period in 2022 primarily due to the reduction in premiums written in 2023 as a result of actions taken within Commercial Specialty to improve underwriting results by not renewing underperforming business as well as the non-renewal of a restaurant book of business. Net earned premiums within the Commercial Specialty segment increased by 0.8% for the six months ended June 30, 2023 as compared to the same period in 2022. This increase in net earned premiums was primarily due to the growth in premiums written in the prior year as a result of organic growth from existing agents and pricing increases. Property net earned premiums were $35.8 million and $36.5 million for the quarters ended June 30, 2023 and 2022, respectively, and $73.5 million and $70.9 million for the six months ended June 30, 2023 and 2022, respectively. Casualty net earned premiums were $57.6 million and $57.5 million for the quarters ended June 30, 2023 and 2022, respectively, and $113.1 million and $114.3 million for the six months ended June 30, 2023 and 2022, respectively.

Net earned premiums within the Reinsurance Operations segment decreased by 24.5% and 12.3% for the quarter and six months ended June 30, 2023, respectively, as compared to the same periods in 2022 primarily due to the non-renewal of a casualty treaty. There were no property net earned premiums for the quarters and six months ended June 30, 2023 and 2022. Casualty net earned premiums were $29.6 million and $39.2 million for the quarters ended June 30, 2023 and 2022, respectively, and $64.4 million and $73.5 million for the six months ended June 30, 2023 and 2022, respectively.

Net earned premiums within the Exited Lines segment decreased by 72.7% and 60.4% for the quarter and six months ended June 30, 2023, respectively, as compared to the same periods in 2022 primarily due to the sale of renewal rights related to the Company's Farm, Ranch & Stable business on August 8, 2022. The decrease in net earned premiums is also due to exiting lines of business unrelated to the Company’s continuing businesses. Property net earned premiums were $4.0 million and $17.6 million for the quarters ended June 30, 2023 and 2022, respectively, and $12.7 million and $36.4 million for the six months ended June 30, 2023 and 2022, respectively. Casualty net earned premiums were $2.2 million and $5.0 million for the quarters ended June 30, 2023 and 2022, respectively, and $5.5 million and $9.5 million for the six months ended June 30, 2023 and 2022, respectively.

38

Reserves

Management’s best estimate at June 30, 2023 was recorded as the loss reserve. 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 and net reserves of $867.0 million and $793.0 million, respectively, as of June 30, 2023. A breakout of the Company’s gross and net reserves, as of June 30, 2023, is as follows:

	Gross Reserves
(Dollars in thousands)	Case		IBNR (1)		Total
Commercial Specialty	$	173,460	$	333,469	$	506,929
Reinsurance Operations		22,866		195,507		218,373
Continuing Lines		196,326		528,976		725,302
Exited Lines		63,052		78,597		141,649
Total	$	259,378	$	607,573	$	866,951

	Net Reserves (2)
(Dollars in thousands)	Case		IBNR (1)		Total
Commercial Specialty	$	157,512	$	301,260	$	458,772
Reinsurance Operations		22,866		195,507		218,373
Continuing Lines		180,378		496,767		677,145
Exited Lines		44,876		70,997		115,873
Total	$	225,254	$	567,764	$	793,018

(1)Losses incurred but not reported, including the expected future emergence of case reserves.

(2)Does not include reinsurance receivables on paid losses.

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 loss frequency and severity are higher or lower than expected, the ultimate losses 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 loss estimate of $166.0 million for claims occurring during the six months ended June 30, 2023:

		Severity Change
(Dollars in thousands)		-10%			-5%			0%			5%			10%
Frequency Change	-5%		(24,075	)		(16,188	)		(8,302	)		(415	)		7,471
	-3%		(21,086	)		(13,034	)		(4,981	)		3,072			11,124
	-2%		(19,592	)		(11,456	)		(3,321	)		4,815			12,950
	-1%		(18,097	)		(9,879	)		(1,660	)		6,558			14,777
	0%		(16,603	)		(8,302	)		—			8,302			16,603
	1%		(15,109	)		(6,724	)		1,660			10,045			18,430
	2%		(13,615	)		(5,147	)		3,321			11,788			20,256
	3%		(12,120	)		(3,570	)		4,981			13,532			22,082
	5%		(9,132	)		(415	)		8,302			17,018			25,735

The Company’s net reserves for losses and loss adjustment expenses of $793.0 million as of June 30, 2023 relate to multiple accident years. Therefore, the impact of changes in frequency and severity for more than one accident year could be higher or lower than the amounts reflected above.

39

Underwriting Results

Commercial Specialty

Commercial Specialty's results for the quarter ended June 30, 2023 are reflective of actions taken to improve profitabilty. Actions were taken to cease writing business which was not providing an acceptable return on capital. As a result, accident year underwriting income(1) improved to $6.1 million for the quarter ended June 30, 2023 from an accident year underwriting loss(1) of $0.6 million for the quarter ended March 31, 2023.

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

	Quarters Ended June 30,				%			Six Months Ended June 30,					%
(Dollars in thousands)	2023		2022		Change			2023			2022		Change
Gross written premiums	$	95,347	$	105,010		(9.2	%)	$	190,855		$	207,858		(8.2	%)
Net written premiums	$	91,896	$	99,667		(7.8	%)	$	183,130		$	197,830		(7.4	%)
Net earned premiums	$	93,408	$	93,997		(0.6	%)	$	186,590		$	185,194		0.8	%
Other income		266		260		2.3	%		533		$	519		2.7	%
Total revenues		93,674		94,257		(0.6	%)		187,123			185,713		0.8	%
Losses and expenses:
Net losses and loss adjustment expenses		58,662		52,804		11.1	%		118,781			106,463		11.6	%
Acquisition costs and other underwriting expenses		33,972		35,543		(4.4	%)		69,498			69,069		0.6	%
Underwriting income (loss)	$	1,040	$	5,910		(82.4	%)	$	(1,156	)	$	10,181		(111.4	%)

	Quarters Ended June 30,						Point			Six Months Ended June 30,						Point
	2023			2022			Change			2023			2022			Change
Underwriting Ratios:
Loss ratio:
Current accident year		57.5	%		58.6	%		(1.1	)		60.2	%		57.7	%		2.5
Prior accident year		5.3	%		(2.4	%)		7.7			3.5	%		(0.2	%)		3.7
Calendar year loss ratio		62.8	%		56.2	%		6.6			63.7	%		57.5	%		6.2
Expense ratio		36.4	%		37.8	%		(1.4	)		37.2	%		37.3	%		(0.1	)
Combined ratio		99.2	%		94.0	%		5.2			100.9	%		94.8	%		6.1
Accident year combined ratio (2)		93.7	%		96.4	%					97.3	%		95.0	%

(1)The Commercial Specialty accident year underwriting income (loss) of $6.1 million and ($0.6) million for the quarters ended June 30, 2023 and March 31, 2023, respectively, is a non-GAAP measure which excludes the impact of prior accident year losses and loss adjustment expenses and prior accident year contingent commission expenses totaling $5.1 million and $1.6 million for the quarters ended June 30, 2023 and March 31, 2023, respectively. The Company's most directly comparable GAAP measure is the Commercial Specialty underwriting income (loss) of $1.0 million and ($2.2) million for the quarters ended June 30, 2023 and March 31, 2023, respectively. The Company believes the non-GAAP measures are useful to investors when evaluating the Company's underwriting performance as trends within Commercial Specialty may be obscured by prior accident year adjustments. These non-GAAP measures should not be considered as a substitute for its most directly comparable GAAP measure and does not reflect the overall underwriting profitability of the Company.

(2)The accident year combined ratio excludes the impact of prior accident year losses and loss adjustment expenses and prior accident year contingent commission expenses.

40

Reconciliation of non-GAAP financial measures and ratios

The table below reconciles the non-GAAP measures or ratios, which excludes the impact of prior accident year adjustments, to its most directly comparable GAAP measure or ratio. The Company believes the non-GAAP measures or ratios are useful to investors when evaluating the Company's underwriting performance as trends within Commercial Specialty may be obscured by prior accident year adjustments. These non-GAAP measures or ratios should not be considered as a substitute for its most directly comparable GAAP measure or ratio and does not reflect the overall underwriting profitability of the Company.

	Quarters Ended June 30,												Six Months Ended June 30,
	2023						2022						2023						2022
(Dollars in thousands)	Losses			Loss Ratio			Losses			Loss Ratio			Losses			Loss Ratio			Losses			Loss Ratio
Property
Non catastrophe property losses and ratio excluding the effect of prior accident year (1)	$	16,100			44.9	%	$	18,159			49.7	%	$	38,676			52.6	%	$	35,493			50.1	%
Effect of prior accident year		(1,436	)		(4.0	%)		(3,130	)		(8.6	%)		(2,695	)		(3.7	%)		(1,307	)		(1.9	%)
Non catastrophe property losses and ratio (2)	$	14,664			40.9	%	$	15,029			41.1	%	$	35,981			48.9	%	$	34,186			48.2	%
Catastrophe losses and ratio excluding the effect of prior accident year (1)	$	4,087			11.4	%	$	3,054			8.4	%	$	7,415			10.1	%	$	5,206			7.3	%
Effect of prior accident year		429			1.2	%		(302	)		(0.8	%)		1,851			2.6	%		(228	)		(0.3	%)
Catastrophe losses and ratio (2)	$	4,516			12.6	%	$	2,752			7.6	%	$	9,266			12.7	%	$	4,978			7.0	%
Total property losses and ratio excluding the effect of prior accident year (1)	$	20,187			56.3	%	$	21,213			58.1	%	$	46,091			62.7	%	$	40,699			57.4	%
Effect of prior accident year		(1,007	)		(2.8	%)		(3,432	)		(9.4	%)		(844	)		(1.1	%)		(1,535	)		(2.2	%)
Total property losses and ratio (2)	$	19,180			53.5	%	$	17,781			48.7	%	$	45,247			61.6	%	$	39,164			55.2	%
Casualty
Total casualty losses and ratio excluding the effect of prior accident year (1)	$	33,496			58.2	%	$	33,881			59.0	%	$	66,233			58.6	%	$	66,168			57.9	%
Effect of prior accident year		5,986			10.4	%		1,142			2.0	%		7,301			6.5	%		1,131			1.0	%
Total casualty losses and ratio (2)	$	39,482			68.6	%	$	35,023			61.0	%	$	73,534			65.1	%	$	67,299			58.9	%
Total
Total net losses and loss adjustment expense and total loss ratio excluding the effect of prior accident year (1)	$	53,683			57.5	%	$	55,094			58.6	%	$	112,324			60.2	%	$	106,867			57.7	%
Effect of prior accident year		4,979			5.3	%		(2,290	)		(2.4	%)		6,457			3.5	%		(404	)		(0.2	%)
Total net losses and loss adjustment expense and total loss ratio (2)	$	58,662			62.8	%	$	52,804			56.2	%	$	118,781			63.7	%	$	106,463			57.5	%

(1)Non-GAAP measure / ratio

(2)Most directly comparable GAAP measure / ratio

Premiums

See “Results of Operations” above for a discussion on consolidated premiums.

Other Income

Other income was $0.3 million for each of the quarters ended June 30, 2023 and 2022 and $0.5 million for each of the six months ended June 30, 2023 and 2022. Other income is primarily comprised of fee income.

41

Loss Ratio

The current accident year losses and loss ratio is summarized as follows:

	Quarters Ended June 30,				%			Six Months Ended June 30,				%
(Dollars in thousands)	2023		2022		Change			2023		2022		Change
Property losses
Non-catastrophe	$	16,100	$	18,159		(11.3	%)	$	38,676	$	35,493		9.0	%
Catastrophe		4,087		3,054		33.8	%		7,415		5,206		42.4	%
Property losses		20,187		21,213		(4.8	%)		46,091		40,699		13.2	%
Casualty losses		33,496		33,881		(1.1	%)		66,233		66,168		0.1	%
Total accident year losses	$	53,683	$	55,094		(2.6	%)	$	112,324	$	106,867		5.1	%

	Quarters Ended June 30,						Point			Six Months Ended June 30,						Point
	2023			2022			Change			2023			2022			Change
Current accident year loss ratio:
Property
Non-catastrophe		44.9	%		49.7	%		(4.8	)		52.6	%		50.1	%		2.5
Catastrophe		11.4	%		8.4	%		3.0			10.1	%		7.3	%		2.8
Property loss ratio		56.3	%		58.1	%		(1.8	)		62.7	%		57.4	%		5.3
Casualty loss ratio		58.2	%		59.0	%		(0.8	)		58.6	%		57.9	%		0.7
Total accident year loss ratio		57.5	%		58.6	%		(1.1	)		60.2	%		57.7	%		2.5

The current accident year non-catastrophe property loss ratio improved by 4.8 points during the quarter ended June 30, 2023 as compared to the same period in 2022 reflecting lower claims frequency in the second accident quarter compared to last year.

The current accident year non-catastrophe property loss ratio increased by 2.5 points during the six months ended June 30, 2023 as compared to the same period in 2022 reflecting higher claims severity mainly due to fire losses in the first accident quarter compared to last year.

The current accident year catastrophe loss ratio increased by 3.0 points during the quarter ended June 30, 2023 as compared to the same period in 2022 recognizing higher claims severity in the calendar quarter compared to last year.

The current accident year catastrophe loss ratio increased by 2.8 points during the six months ended June 30, 2023 as compared to the same period in 2022 recognizing higher claims frequency and severity in the first six months compared to last year.

The current accident year casualty loss ratio improved by 0.8 points during the quarter ended June 30, 2023 as compared to the same period in 2022 reflecting lower claims frequency in the calendar quarter compared to last year.

The current accident year casualty loss ratio increased by 0.7 points during the six months ended June 30, 2023 as compared to the same period in 2022 recognizing higher claims severity in the first six months compared to last year.

The calendar year loss ratio for the quarter and six months ended June 30, 2023 includes an increase of $5.0 million, or 5.3 percentage points, and an increase of $6.5 million, or 3.5 percentage points, respectively, related to reserve development on prior accident years. The calendar year loss ratio for the quarter and six months ended June 30, 2022 includes a decrease of $2.3 million, or 2.4 percentage points, and a decrease of $0.4 million, or 0.2 percentage points, respectively, related to reserve development on prior accident years. Please see Note 8 of the notes to the consolidated financial statements in Item 1 of Part I of this report for further discussion on prior accident year development.

Expense Ratios

The expense ratio for the Company’s Commercial Specialty segment improved by 1.4 points from 37.8% for the quarter ended June 30, 2022 to 36.4% for the quarter ended June 30, 2023 primarily due to a reduction in commission expenses and the recovery of medical premiums in 2023 due to lower than expected medical costs in 2022.

42

The expense ratio for the Company’s Commercial Specialty segment improved by 0.1 points from 37.3% for the six months ended June 30, 2022 to 37.2% for the six months ended June 30, 2023.

Reinsurance Operations

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

	Quarters Ended June 30,					%			Six Months Ended June 30,				%
(Dollars in thousands)	2023 (1)			2022 (1)		Change			2023 (1)		2022 (1)		Change
Gross written premiums	$	14,844		$	46,524		(68.1	%)	$	38,260	$	87,520		(56.3	%)
Net written premiums	$	14,844		$	46,524		(68.1	%)	$	38,260	$	87,520		(56.3	%)
Net earned premiums	$	29,585		$	39,162		(24.5	%)	$	64,432	$	73,460		(12.3	%)
Other income		9			20		(55.0	%)		—		—		—
Total revenues		29,594			39,182		(24.5	%)		64,432		73,460		(12.3	%)
Losses and expenses:
Net losses and loss adjustment expenses		19,512			22,793		(14.4	%)		40,775		43,852		(7.0	%)
Acquisition costs and other underwriting expenses		10,737			14,553		(26.2	%)		23,553		26,514		(11.2	%)
Underwriting income (loss)	$	(655	)	$	1,836		(135.7	%)	$	104	$	3,094		(96.6	%)

	Quarters Ended June 30,						Point			Six Months Ended June 30,						Point
	2023			2022			Change			2023			2022			Change
Underwriting Ratios:
Loss ratio:
Current accident year (2)		62.6	%		61.3	%		1.3			61.7	%		61.4	%		0.3
Prior accident year		3.4	%		(3.1	%)		6.5			1.6	%		(1.7	%)		3.3
Calendar year loss ratio (3)		66.0	%		58.2	%		7.8			63.3	%		59.7	%		3.6
Expense ratio		36.3	%		37.2	%		(0.9	)		36.6	%		36.1	%		0.5
Combined ratio		102.3	%		95.4	%		6.9			99.9	%		95.8	%		4.1
Accident year combined ratio (4)		98.9	%		97.9	%					98.3	%		97.2	%

(1)External business only, excluding business assumed from affiliates

(2)Non-GAAP ratio

(3)Most directly comparable GAAP ratio

(4)The accident year combined ratio excludes the impact of prior accident year losses and loss adjustment expenses and prior accident year contingent commission expenses.

Reconciliation of non-GAAP financial ratios

The table above reconciles the non-GAAP ratios, which excludes the impact of prior accident year adjustments, to its most directly comparable GAAP ratio. The Company believes the non-GAAP ratios are useful to investors when evaluating the Company's underwriting performance as trends within Reinsurance Operations may be obscured by prior accident year adjustments. These non-GAAP ratios should not be considered as a substitute for its most directly comparable GAAP ratio and does not reflect the overall underwriting profitability of the Company.

Premiums

See “Results of Operations” above for a discussion on consolidated premiums.

43

Other Income

The Company recognized other income of less than $0.1 million during each of the quarters ended June 30, 2023 and 2022. There was no other income recognized during the six months ended June 30, 2023 and 2022. Other income is primarily comprised of foreign exchange gains and losses.

Loss Ratio

The current accident year loss ratio increased by 1.3 points during the quarter ended June 30, 2023 as compared to the same period in 2022 primarily reflecting an increase in the excess professional liability expected loss ratio.

The current accident year loss ratio increased by 0.3 points during the six months ended June 30, 2023 as compared to the same period in 2022 primarily reflecting an increase in the excess professional liability expected loss ratio.

The calendar year loss ratios for the quarter and six months ended June 30, 2023 includes an increase of $1.0 million, or 3.4 percentage points, and an increase of $1.0 million, or 1.6 percentage points, respectively, related to reserve development on prior accident years. The calendar year loss ratios for the quarter and six months ended June 30, 2022 includes a decrease of $1.2 million, or 3.1 percentage, and a decrease of $1.2 million, or 1.7 point percentage, respectively, related to reserve development on prior accident years. Please see Note 8 of the notes to the consolidated financial statements in Item 1 of Part I of this report for further discussion on prior accident year development.

Expense Ratios

The expense ratio for the Company’s Reinsurance Operations segment improved 0.9 points from 37.2% for the quarter ended June 30, 2022 to 36.3% for the quarter ended June 30, 2023 primarily due to a reduction in staff and professional services to align expenses with business being written.

The expense ratio for the Company’s Reinsurance Operations segment increased 0.5 points from 36.1% for the six months ended June 30, 2022 to 36.6% for the six months ended June 30, 2023 primarily due to an increase in commission expense.

44

Exited Lines

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

	Quarters Ended June 30,						%			Six Months Ended June 30,					%
(Dollars in thousands)	2023			2022			Change			2023		2022			Change
Gross written premiums	$	(91	)	$	45,289			(100.2	%)	$	3,970	$	92,428			(95.7	%)
Net written premiums	$	(744	)	$	20,967			(103.5	%)	$	467	$	41,290			(98.9	%)
Net earned premiums	$	6,163		$	22,590			(72.7	%)	$	18,206	$	45,918			(60.4	%)
Other income (loss)		26			(196	)		(113.3	%)		103		4		NM
Total revenues		6,189			22,394			(72.4	%)		18,309		45,922			(60.1	%)
Losses and expenses:
Net losses and loss adjustment expenses		(92	)		17,021			(100.5	%)		6,527		26,998			(75.8	%)
Acquisition costs and other underwriting expenses		2,392			11,002			(78.3	%)		7,528		22,207			(66.1	%)
Underwriting income (loss)	$	3,889		$	(5,629	)		(169.1	%)	$	4,254	$	(3,283	)		229.6	%

	Quarters Ended June 30,						Point			Six Months Ended June 30,						Point
	2023			2022			Change			2023			2022			Change
Underwriting Ratios:
Loss ratio:
Current accident year		94.7	%		75.6	%		19.1			76.5	%		69.7	%		6.8
Prior accident year		(96.2	%)		(0.3	%)		(95.9	)		(40.6	%)		(10.9	%)		(29.7	)
Calendar year loss ratio		(1.5	%)		75.3	%		(76.8	)		35.9	%		58.8	%		(22.9	)
Expense ratio		38.8	%		48.7	%		(9.9	)		41.3	%		48.4	%		(7.1	)
Combined ratio		37.3	%		124.0	%		(86.7	)		77.2	%		107.2	%		(30.0	)
Accident year combined ratio (1)		144.6	%		119.1	%					119.4	%		111.3	%

(1)The accident year combined ratio excludes the impact of prior accident year losses and loss adjustment expenses and prior accident year contingent commission expenses.

NM – not meaningful

45

Reconciliation of non-GAAP financial measures and ratios

The table below reconciles the non-GAAP measures or ratios, which excludes the impact of prior accident year adjustments, to its most directly comparable GAAP measure or ratio. The Company believes the non-GAAP measures or ratios are useful to investors when evaluating the Company's underwriting performance as trends within Exited Lines may be obscured by prior accident year adjustments. These non-GAAP measures or ratios should not be considered as a substitute for its most directly comparable GAAP measure or ratio and does not reflect the overall underwriting profitability of the Company.

	Quarters Ended June 30,												Six Months Ended June 30,
	2023						2022						2023						2022
(Dollars in thousands)	Losses			Loss Ratio			Losses			Loss Ratio			Losses			Loss Ratio			Losses			Loss Ratio
Property
Non catastrophe property losses and ratio excluding the effect of prior accident year (1)	$	3,421			85.8	%	$	9,335			52.9	%	$	7,073			55.8	%	$	19,596			53.8	%
Effect of prior accident year		(472	)		(11.8	%)		615			3.5	%		(1,637	)		(12.9	%)		(3,252	)		(8.9	%)
Non catastrophe property losses and ratio (2)	$	2,949			74.0	%	$	9,950			56.4	%	$	5,436			42.9	%	$	16,344			44.9	%
Catastrophe losses and ratio excluding the effect of prior accident year (1)	$	1,013			25.4	%	$	5,327			30.2	%	$	3,155			24.9	%	$	7,479			20.5	%
Effect of prior accident year		(4,324	)		(108.4	%)		(648	)		(3.7	%)		(4,175	)		(32.9	%)		(1,119	)		(3.1	%)
Catastrophe losses and ratio (2)	$	(3,311	)		(83.0	%)	$	4,679			26.5	%	$	(1,020	)		(8.0	%)	$	6,360			17.4	%
Total property losses and ratio excluding the effect of prior accident year (1)	$	4,434			111.2	%	$	14,662			83.1	%	$	10,228			80.7	%	$	27,075			74.3	%
Effect of prior accident year		(4,796	)		(120.2	%)		(33	)		(0.2	%)		(5,812	)		(45.8	%)		(4,371	)		(12.0	%)
Total property losses and ratio (2)	$	(362	)		(9.0	%)	$	14,629			82.9	%	$	4,416			34.9	%	$	22,704			62.3	%
Casualty
Total casualty losses and ratio excluding the effect of prior accident year (1)	$	1,400			64.3	%	$	2,420			48.9	%	$	3,703			67.0	%	$	4,913			51.8	%
Effect of prior accident year		(1,130	)		(51.9	%)		(28	)		(0.6	%)		(1,592	)		(28.8	%)		(619	)		(6.5	%)
Total casualty losses and ratio (2)	$	270			12.4	%	$	2,392			48.3	%	$	2,111			38.2	%	$	4,294			45.3	%
Total
Total net losses and loss adjustment expense and total loss ratio excluding the effect of prior accident year (1)	$	5,834			94.7	%	$	17,082			75.6	%	$	13,931			76.5	%	$	31,988			69.7	%
Effect of prior accident year		(5,926	)		(96.2	%)		(61	)		(0.3	%)		(7,404	)		(40.6	%)		(4,990	)		(10.9	%)
Total net losses and loss adjustment expense and total loss ratio (2)	$	(92	)		(1.5	%)	$	17,021			75.3	%	$	6,527			35.9	%	$	26,998			58.8	%

(1)Non-GAAP measure / ratio

(2)Most directly comparable GAAP measure / ratio

Premiums

See “Results of Operations” above for a discussion on consolidated premiums.

46

Other Income (Loss)

The Company recognized income of less than $0.1 million and a loss of $0.2 million for the quarters ended June 30, 2023 and 2022, respectively, and income of $0.1 million and income of less than $0.1 million for the six months ended June 30, 2023 and 2022, respectively. Other income (loss) is primarily comprised of fee income net of bank fees.

Loss Ratio

The current accident year losses and loss ratio is summarized as follows:

	Quarters Ended June 30,				%			Six Months Ended June 30,				%
(Dollars in thousands)	2023		2022		Change			2023		2022		Change
Property losses
Non-catastrophe	$	3,421	$	9,335		(63.4	%)	$	7,073	$	19,596		(63.9	%)
Catastrophe		1,013		5,327		(81.0	%)		3,155		7,479		(57.8	%)
Property losses		4,434		14,662		(69.8	%)		10,228		27,075		(62.2	%)
Casualty losses		1,400		2,420		(42.1	%)		3,703		4,913		(24.6	%)
Total accident year losses	$	5,834	$	17,082		(65.8	%)	$	13,931	$	31,988		(56.4	%)

	Quarters Ended June 30,						Point			Six Months Ended June 30,						Point
	2023			2022			Change			2023			2022			Change
Current accident year loss ratio:
Property
Non-catastrophe		85.8	%		52.9	%		32.9			55.8	%		53.8	%		2.0
Catastrophe		25.4	%		30.2	%		(4.8	)		24.9	%		20.5	%		4.4
Property loss ratio		111.2	%		83.1	%		28.1			80.7	%		74.3	%		6.4
Casualty loss ratio		64.3	%		48.9	%		15.4			67.0	%		51.8	%		15.2
Total accident year loss ratio		94.7	%		75.6	%		19.1			76.5	%		69.7	%		6.8

The current accident year non-catastrophe property loss ratio increased by 32.9 points during the quarter ended June 30, 2023 as compared to the same period in 2022 reflecting higher claims severity in the calendar quarter compared to last year.

The current accident year non-catastrophe property loss ratio increased by 2.0 points during the six months ended June 30, 2023 as compared to the same period in 2022 primarily reflecting higher claims severity in the first six months compared to last year.

The current accident year catastrophe loss ratio improved by 4.8 points during the quarter ended June 30, 2023 as compared to the same period in 2022 primarily recognizing lower claims severity in the calendar quarter compared to last year.

The current accident year catastrophe loss ratio increased by 4.4 points during the six months ended June 30, 2023 as compared to the same period in 2022 primarily recognizing higher claims frequency and severity in the first six months compared to last year.

The current accident year casualty loss ratio increased by 15.4 points during the quarter ended June 30, 2023 as compared to the same period in 2022 primarily reflecting higher claims severity in the calendar quarter compared to last year and growth in the brokerage divisions which had higher expected loss ratios.

The current accident year casualty loss ratio increased by 15.2 points during the six months ended June 30, 2023 as compared to the same period in 2022 primarily reflecting higher claims severity in the first six months compared to last year and growth in the brokerage divisions which had higher expected loss ratios.

The calendar year loss ratio for the quarter and six months ended June 30, 2023 includes a decrease of $5.9 million, or 96.2 percentage points, and a decrease of $7.4 million, or 40.6 percentage points, respectively, related to reserve development on prior accident years. The calendar year loss ratio for the quarter and six months ended June 30, 2022 includes a decrease of

47

$0.1 million, or 0.3 percentage points, and an decrease of $5.0 million, or 10.9 percentage points, respectively, related to reserve development on prior accident years. Please see Note 8 of the notes to the consolidated financial statements in Item 1 of Part I of this report for further discussion on prior accident year development.

Expense Ratio

The expense ratio for the Company’s Exited Lines improved by 9.9 points from 48.7% for the quarter ended June 30, 2022 to 38.8% for the quarter ended June 30, 2023 and improved by 7.1 points from 48.4% for the six months ended June 30, 2022 to 41.3% for the six months ended June 30, 2023 due to restructuring actions which reduced expenses.

Unallocated Corporate Items

The Company’s fixed income portfolio, excluding cash, continues to maintain high quality with an A average rating and a duration of 1.4 years.

Net Investment Income

	Quarters Ended June 30,						%			Six Months Ended June 30,						%
(Dollars in thousands)	2023			2022			Change			2023			2022			Change
Gross investment income (1)	$	13,567		$	2,541			433.9	%	$	25,947		$	9,737			166.5	%
Investment expenses		(351	)		(611	)		(42.6	%)		(723	)		(1,215	)		(40.5	%)
Net investment income	$	13,216		$	1,930			584.8	%	$	25,224		$	8,522			196.0	%

(1)Excludes realized gains and losses

Gross investment income increased by 433.9% and 166.5% for the quarter and six months ended June 30, 2023, respectively, as compared to the same periods in 2022. The increase was primarily due to an increase in yield within the fixed maturities portfolio due to the rise in rates and increased returns from alternative investments.

Investment expenses decreased by 42.6% and 40.5% for the quarter and six months ended June 30, 2023, respectively, as compared to the same periods in 2022 due to decreased investment management expenses.

At June 30, 2023, the Company held agency mortgage-backed securities with a market value of $3.0 million. Excluding the agency mortgage-backed securities, the average duration of the Company’s fixed maturities portfolio was 1.4 years as of June 30, 2023, compared with 1.8 years as of June 30, 2022. Including cash and short-term investments, the average duration of the Company’s fixed maturities portfolio, excluding agency mortgage-backed securities was 1.3 years and 1.7 years as of June 30, 2023 and June 30, 2022, respectively. Changes in interest rates can cause principal payments on certain investments to extend or shorten which can impact duration. The Company’s embedded book yield on its fixed maturities, not including cash, was 3.8% as of June 30, 2023, compared to 2.7% as of June 30, 2022. The embedded book yield on the $30.6 million of taxable municipal bonds in the Company’s portfolio was 3.0% at June 30, 2023, compared to an embedded book yield of 3.1% on the Company’s taxable municipal bonds of $32.4 million at June 30, 2022.

48

Net Realized Investment Gains (Losses)

The components of net realized investment gains (losses) for the quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Equity securities	$	(174	)	$	(2,415	)	$	(1,088	)	$	(3,760	)
Fixed maturities		(587	)		(8,637	)		(1,193	)		(11,876	)
Derivatives		—			1,816			—			6,540
Other-than-temporary impairment losses (1)		—			(680	)		—			(26,205	)
Net realized investment gains (losses)	$	(761	)	$	(9,916	)	$	(2,281	)	$	(35,301	)

(1) In response to a rising interest rate environment, the Company took action early in April 2022 to shorten the duration of its fixed maturities portfolio. In connection with these actions, the Company identified fixed maturities securities with a weighted average life of five years or greater as having an intent to sell resulting in other-than-temporary impairment losses. The majority of which were sold in the 2nd quarter of 2022. Most of the proceeds from the sale of these securities were reinvested into fixed income investments with maturities of two years. As a result of these actions, the Company's book yield rose over time. Book yield was approximately 2.2% at December 31, 2021 and 3.8% at June 30, 2023.

See Note 3 of the notes to the consolidated financial statements in Item 1 of Part I of this report for an analysis of total investment return on a pre-tax basis for the quarters and six months ended June 30, 2023 and 2022.

Corporate and Other Operating Expenses

Corporate and other operating 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 and other operating expenses were $5.0 million and $3.0 million during the quarters ended June 30, 2023 and 2022, respectively. Corporate and other operating expenses for the quarter ended June 30, 2022 were lower than normal due to the Company receiving an employee retention credit under the CARES Act of $2.7 million in May 2022.

Corporate and other operating expenses were $11.4 million and $7.7 million during the six months ended June 30, 2023 and 2022, respectively. The increase in corporate and other operating expenses is primarily due to restructuring costs incurred in the first quarter of 2023. In addition, corporate and other operating expenses for 2022 were lower than normal due to the Company receiving an employee retention credit under the CARES Act of $2.7 million in May 2022.

Interest Expense

Interest expense was $0.4 million and $3.0 million during the quarter and six months ended June 30, 2022. There was less than $0.1 million of interest expense during the quarter and six months ended June 30, 2023. The reduction in interest expense was due to the redemption of the 7.875% Subordinated Notes due 2047 on April 15, 2022.

Income Tax Expense / Benefit

Income tax expense was $2.4 million for the quarter ended June 30, 2023 compared with income tax benefit of $0.6 million for the quarter ended June 30, 2022. The increase in income tax expense is primarily due to higher taxable income in the Company's U.S. Subsidiaries in 2023.

Income tax expense was $2.9 million for the six months ended June 30, 2023 compared with an income tax benefit of $4.0 million for the six months ended June 30, 2022. The increase in income tax expense is primarily due to higher taxable income in the Company's U.S. Subsidiaries in 2023.

See Note 7 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.

49

Net Income (Loss)

The factors described above resulted in net income of $9.3 million and a net loss of $12.2 million for the quarters ended June 30, 2023 and 2022, respectively, and net income of $11.8 million and a net loss of $26.9 million for the six months ended June 30, 2023 and 2022, respectively.

Critical Accounting Estimates and Policies

The Company’s consolidated financial statements are prepared in conformity with GAAP, which require it to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions.

The most critical accounting policies involve significant estimates and include those used in determining the liability for unpaid losses and loss adjustment expenses, recoverability of reinsurance receivables, investments, fair value measurements, goodwill and intangible assets, deferred acquisition costs, and taxation. For a detailed discussion on each of these policies, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes to any of these policies or underlying methodologies during the current year.

Liquidity and Capital Resources

Sources and Uses of Funds

Global Indemnity Group, LLC is a holding company. Its principal asset is its ownership of the shares of its direct and indirect subsidiaries, including those of its insurance companies: United National Insurance Company, Diamond State Insurance Company, Penn-America Insurance Company, Penn-Star Insurance Company, and Penn-Patriot Insurance Company.

Global Indemnity Group, LLC’s short term and long term liquidity needs include but are not limited to the payment of corporate expenses, distributions to shareholders, and share repurchases. The Company also has commitments in the form of operating leases, commitments to fund limited liability investments, and unpaid losses and loss expense obligations. In order to meet its short term and long term needs, Global Indemnity Group, LLC’s principal sources of cash includes investment income, dividends from subsidiaries, other permitted disbursements from its direct and indirect subsidiaries, reimbursement for equity awards granted to employees and intercompany borrowings. The principal sources of funds at these direct and indirect subsidiaries include underwriting operations, investment income, proceeds from sales and redemptions of investments, capital contributions, intercompany borrowings, and dividends from subsidiaries. Funds are used principally by these operating subsidiaries to pay claims and operating expenses, to make debt payments, to purchase investments, and to make distribution payments. In addition, the Company periodically reviews opportunities related to business acquisitions, and as a result, liquidity may be needed in the future.

GBLI Holdings, LLC is a holding company which is a wholly-owned subsidiary of Penn-Patriot Insurance Company. GBLI Holdings, LLC’s principal asset is its ownership of the shares of its direct and indirect subsidiaries which include United National Insurance Company, Diamond State Insurance Company, Penn-America Insurance Company, and Penn-Star Insurance Company. GBLI Holdings, LLC is dependent on dividends from its subsidiaries as well as reimbursements from its subsidiaries for utilization of net operating losses and other tax attributes in order to meet its corporate expense obligations and intercompany financing obligations.

As of June 30, 2023, the Company also had future funding commitments of $14.2 million related to investments that are currently in their harvest period and it is unlikely that a capital call will be made.

The future liquidity of both Global Indemnity Group, LLC and GBLI Holdings, LLC is dependent on the ability of its subsidiaries to generate income to pay dividends. Global Indemnity Group, LLC and GBLI Holdings, LLC’s insurance companies are restricted by statute as to the amount of dividends that they may pay without the prior approval of regulatory authorities. The dividend limitations imposed by state laws are based on the statutory financial results of each insurance company that are determined by using statutory accounting practices that differ in various respects from accounting principles used in financial statements prepared in conformity with GAAP. See “Regulation - Statutory Accounting Principles” in Item 1 of Part I of the Company’s 2022 Annual Report on Form 10-K. Key differences relate to, among other

50

items, deferred acquisition costs, limitations on deferred income taxes, reserve calculation assumptions and surplus notes. See Note 22 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s 2022 Annual Report on Form 10-K for further information on dividend limitations related to the Insurance Companies. There were no dividend declared or paid during the quarter and six months ended June 30, 2023.

Cash Flows

Sources of operating funds consist primarily of net written premiums and investment income. Funds are used primarily to pay claims and operating expenses and to purchase investments. As a result of the distribution policy, funds are also used to pay distributions to shareholders of the Company.

The Company’s reconciliation of net income (loss) to net cash provided by operations is generally influenced by the following:

•the fact that the Company collects premiums, net of commissions, in advance of losses paid;

•the timing of the Company’s settlements with its reinsurers; and

•the timing of the Company’s loss payments.

Net cash provided by operating activities was $14.2 million and $18.5 million for the six months ended June 30, 2023 and 2022, respectively. The decrease in operating cash flows of approximately $4.3 million from the prior year was primarily a net result of the following items:

	Six Months Ended June 30,
(Dollars in thousands)	2023			2022			Change
Net premiums collected	$	237,847		$	276,206		$	(38,359	)
Net losses paid		(141,431	)		(136,756	)		(4,675	)
Underwriting and corporate expenses		(105,981	)		(130,981	)		25,000
Net investment income		23,748			15,116			8,632
Interest paid		(12	)		(5,126	)		5,114
Net cash provided by operating activities	$	14,171		$	18,459		$	(4,288	)

See the consolidated statements of cash flows in the consolidated financial statements in Item 1 of Part I of this report for details concerning the Company’s investing and financing activities.

Liquidity

Stock Repurchase

On October 21, 2022, Global Indemnity Group, LLC announced that up to $32 million of share repurchases were authorized. On January 3, 2023, Global Indemnity Group, LLC announced that it authorized an increase in the aggregate stock purchases from $32 million to $60 million. On June 8, 2023, the Company’s Board of Directors approved an additional increase in the existing share buyback authorization amount of $60 million to $135 million.

During the six months ended June 30, 2023, 450,000 shares were repurchased for approximately $12.1 million at an average purchase price of $26.83 per share. As a result of these transactions, book value per share increased by $0.60 per share since December 31, 2022.

From the time of the initial announcement, a total of 1,357,082 shares were repurchased for approximately $34.0 million at an average purchase price of $25.05 per share. 138,151 shares that were acquired were reissued at an average price per share of $24.17. As a result of these transactions, book value per share increased by $1.69 per share since inception of the stock purchase program in October 2022.

51

Restructuring

The Company restructured its insurance operations to strengthen its market presence and enhance its focus on GBLI’s core Package Specialty and Targeted Specialty products. The restructuring plan, which was initiated in the fourth quarter of 2022, was completed in the first quarter of 2023. The Company incurred restructuring costs of $3.4 million during the fourth quarter of 2022 and $2.1 million during the six months ended June 30, 2023 for total restructuring costs of $5.5 million. Post completion of the restructuring, the Company anticipates recurring annual expense savings of $16.0 million.

Distributions

The Board of Directors approved a distribution payment of $0.25 per common share to all shareholders of record on the close of business on March 24, 2023 and June 23, 2023. Distributions paid to common shareholders were $7.5 million during the six months ended June 30, 2023. In addition, distributions of $0.2 million were paid to Global Indemnity Group, LLC’s preferred shareholder during the six months ended June 30, 2023.

Other than the items discussed in the preceding paragraphs, there have been no material changes to the Company’s liquidity during the quarter and six months ended June 30, 2023. Please see Item 7 of Part II in the Company’s 2022 Annual Report on Form 10-K for information regarding the Company’s liquidity.

Capital Resources

There have been no material changes to the Company’s capital resources during the quarter and six months ended June 30, 2023. Please see Item 7 of Part II in the Company’s 2022 Annual Report on Form 10-K for information regarding the Company’s capital resources.

Off Balance Sheet Arrangements

The Company has no off balance sheet arrangements.

Cautionary Note Regarding Forward-Looking Statements

Some of the statements under “Management's Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this report may include forward-looking statements within the meaning of Section 21E of the Security Exchange Act of 1934, as amended, that reflect the Company’s current views with respect to future events and financial performance. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives, expectations or consequences of identified transactions or natural disasters, and statements about the future performance, operations, products and services of the companies.

The Company’s business and operations are and will be subject to a variety of risks, uncertainties and other factors. Consequently, actual results and experience may materially differ from those contained in any forward-looking statements. See “Risk Factors” in Item 1A of Part I in the Company’s 2022 Annual Report on Form 10-K for risks, uncertainties and other factors that could cause actual results and experience to differ from those projected. The Company’s forward-looking statements speak only as of the date of this report or as of the date they were made. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For the quarter ended June 30, 2023, global equities rose approximately 6.9% with U.S. equities outperforming, gaining approximately 8.7%. U.S. fixed income lost approximately 0.8% with the average spread moving tighter during the quarter. Market expectations were met in June as the FOMC voted to pause the current tightening cycle, but volatility quickly resumed as the revised dot plots and Federal Reserve Chair Jerome Powell’s hawkish comments demonstrated that this meeting was not the end of this cycle. The combination of challenges that still exist in the banking industry, the Treasury’s need to replenish its General Account and the desire to observe additional economic data likely contributed to the more measured approach. Short-dated Treasury yields have been on the rise, leading to the steepest curve inversion since the Fed began raising rates in March of 2022 and fueling concerns that the U.S. will enter a recession later this year.

The Company’s investment grade fixed income portfolio continues to maintain high quality with an A average rating and a duration of 1.3 years. Portfolio purchases were focused within US Treasury and asset backed securities. These purchases were funded primarily through cash inflows, sales of US Treasury securities and CMBS, as well as maturities and paydowns. During the second quarter, the portfolio’s allocation to US Treasury securities increased, while the portfolio’s exposure to investment grade credit and CMBS securities decreased.

Other than the changes described in the preceding paragraphs, there have been no other material changes to the Company’s market risk since December 31, 2022. Please see Item 7A of Part II in the Company’s 2022 Annual Report on Form 10-K for information regarding the Company’s market risk.

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to ensure that information required to be disclosed in the Company’s reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of June 30, 2023. Based upon that evaluation, and subject to the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2023, the design and operation of the Company’s disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There have been no changes in the Company’s internal controls over financial reporting that occurred during the quarter ended June 30, 2023 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

53

PART II-OTHER INFORMATION

Item 1. 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 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.

Item 1A. Risk Factors

The Company’s results of operations and financial condition are subject to numerous risks and uncertainties described in Item 1A of Part I in the Company’s 2022 Annual Report on Form 10-K, filed with the SEC on March 15, 2023. The risk factors identified therein have not materially changed.

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

The Company’s Share Incentive Plan allows employees to surrender the Company’s class A common shares as payment for the tax liability incurred upon the vesting of restricted stock. There were 15,558 shares and 18,860 shares surrendered by the Company’s employees during the quarter and six months ended June 30, 2023, respectively. All class A common shares surrendered by the Company’s employees are held as treasury stock and recorded at cost until formally retired.

Global Indemnity Group, LLC repurchased 200,000 shares and 450,000 shares from third parties under its repurchase program during the quarter and six months ended June 30, 2023, respectively. All class A common shares repurchased from third parties under its repurchase program are held as treasury stock and recorded at cost until formally retired.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

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Item 6. Exhibits

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 Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

+ Filed or furnished herewith, as applicable.

55

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	GLOBAL INDEMNITY GROUP, LLC
	Registrant
Dated: August 9, 2023	By:	/s/ Thomas M. McGeehan
		Thomas M. McGeehan
		Chief Financial Officer
		(Authorized Signatory and Principal Financial and Accounting Officer)

56

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULE 13a-14(a)/15d-14(a),

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Joseph W. Brown, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Global Indemnity Group, LLC;

2.Based on my knowledge, this Quarterly Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report;

3.Based on my knowledge, the financial statements, and other financial information included in this Quarterly Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Quarterly Report;

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Quarterly Report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Quarterly Report based on such evaluation; and

d)Disclosed in this Quarterly Report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s independent registered public accounting firm and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 9, 2023

/s/ Joseph W. Brown

Joseph W. Brown

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULE 13a-14(a)/15d-14(a),

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Thomas M. McGeehan, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Global Indemnity Group, LLC;

2.Based on my knowledge, this Quarterly Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report;

3.Based on my knowledge, the financial statements, and other financial information included in this Quarterly Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Quarterly Report;

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Quarterly Report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Quarterly Report based on such evaluation; and

d)Disclosed in this Quarterly Report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s independent registered public accounting firm and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 9, 2023

/s/ Thomas M. McGeehan

Thomas M. McGeehan

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Global Indemnity Group, LLC (the "Company") on Form 10-Q for the quarterly period ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Joseph W. Brown, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 9, 2023

/s/ Joseph W. Brown

Joseph W. Brown

Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Global Indemnity Group, LLC (the "Company") on Form 10-Q for the quarterly period ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Thomas M. McGeehan, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 9, 2023

/s/ Thomas M. McGeehan

Thomas M. McGeehan

Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Aug. 04, 2023
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Document Quarterly Report	true
Document Transition Report	false
Entity Registrant Name	GLOBAL INDEMNITY GROUP, LLC
Entity Central Index Key	0001494904
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity File Number	001-34809
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	85-2619578
Entity Address, Address Line One	112 S. French Street
Entity Address, Address Line Two	Suite 105
Entity Address, City or Town	Wilmington
Entity Address, Country	DE
Entity Address, Postal Zip Code	19801
City Area Code	302
Local Phone Number	691-6276
Title of each class	Class A Common Shares
Trading Symbol	GBLI
Name of each exchange on which registered	NYSE
Class A Common Shares
Document Information [Line Items]
Entity Ordinary Shares, Shares Outstanding		9,729,046
Class B Common Shares
Document Information [Line Items]
Entity Ordinary Shares, Shares Outstanding		3,793,612

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fixed maturities:
Available for sale, at fair value (amortized cost: $1,311,567 and $1,301,723; net of allowance for expected credit losses of $0 at June 30, 2023 and December 31, 2022)	$ 1,265,606	$ 1,248,198
Equity securities, at fair value	17,153	17,520
Other invested assets	37,282	38,176
Total investments	1,320,041	1,303,894
Cash and cash equivalents	45,447	38,846
Premium receivables, net of allowance for expected credit losses of $4,056 at June 30, 2023 and $3,322 at December 31, 2022	141,498	168,743
Reinsurance receivables, net of allowance for expected credit losses of $8,992 at June 30, 2023 and December 31, 2022	95,616	85,721
Funds held by ceding insurers	16,660	19,191
Deferred federal income taxes	42,679	47,099
Deferred acquisition costs	52,019	64,894
Intangible assets	14,633	14,810
Goodwill	4,820	4,820
Prepaid reinsurance premiums	10,626	17,421
Lease right of use assets	10,790	11,739
Other assets	19,173	23,597
Total assets	1,774,002	1,800,775
Liabilities:
Unpaid losses and loss adjustment expenses	866,951	832,404
Unearned premiums	215,187	269,353
Ceded balances payable	3,844	17,241
Payable for securities purchased	22,115	66
Contingent commissions	3,431	8,816
Lease liabilities	14,194	15,701
Other liabilities	21,872	30,965
Total liabilities	1,147,594	1,174,546
Commitments and contingencies (Note 11)
Shareholders’ equity:
Common shares: no par value; 900,000,000 common shares authorized; class A common shares issued: 11,000,287 and 10,876,041 respectively; class A common shares outstanding: 9,729,046 and 10,073,660, respectively; class B common shares issued and outstanding: 3,793,612 and 3,793,612, respectively	0	0
Additional paid-in capital	453,427	451,305
Accumulated other comprehensive income (loss), net of tax	(37,171)	(43,058)
Retained earnings	238,315	233,468
Total shareholders’ equity	626,408	626,229
Total liabilities and shareholders’ equity	1,774,002	1,800,775
Series A Cumulative Fixed Rate Preferred Shares
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
Class A Common Shares
Shareholders’ equity:
Class A common shares in treasury, at cost: 1,271,241 and 802,381 shares,respectively	$ (32,163)	$ (19,486)

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Available for sale, amortized cost	$ 1,311,567	$ 1,301,723
Available-for-sale, net of allowance for expected credit losses	0	0
Premiums receivable, allowance for expected credit loss	4,056	3,322
Reinsurance receivable, allowance for expected credit loss	$ 8,992	$ 8,992
Common shares, par value	$ 0	$ 0
Common shares, shares authorized	900,000,000	900,000,000
Series A Cumulative Fixed Rate Preferred Shares
Preferred shares, par value	$ 1,000	$ 1,000
Preferred shares, shares authorized	100,000,000	100,000,000
Preferred shares, shares issued	4,000	4,000
Preferred shares, shares outstanding	4,000	4,000
Preferred shares, liquidation preference	$ 1,000	$ 1,000
Class A Common Shares
Common shares, shares issued	11,000,287	10,876,041
Common shares, shares outstanding	9,729,046	10,073,660
Treasury shares, shares	1,271,241	802,381
Class B Common Shares
Common shares, shares issued	3,793,612	3,793,612
Common shares, shares outstanding	3,793,612	3,793,612

XML

Consolidated Statements of Operations - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues:
Gross written premiums		$ 110,100	$ 196,823	$ 233,085	$ 387,806
Ceded written premiums		(4,104)	(29,665)	(11,228)	(61,166)
Net written premiums		105,996	167,158	221,857	326,640
Change in net unearned premiums		23,160	(11,409)	47,371	(22,068)
Net earned premiums		129,156	155,749	269,228	304,572
Net investment income		13,216	1,930	25,224	8,522
Net realized investment losses		(761)	(9,916)	(2,281)	(35,301)
Other income		282	97	636	523
Total revenues		141,893	147,860	292,807	278,316
Losses and Expenses:
Net losses and loss adjustment expenses		78,082	92,618	166,083	177,313
Acquisition costs and other underwriting expenses		47,101	61,098	100,579	117,790
Corporate and other operating expenses		4,990	2,993	11,358	7,653
Interest expense		12	410	12	3,005
Loss on extinguishment of debt		0	3,529	0	3,529
Income (loss) before income taxes		11,708	(12,788)	14,775	(30,974)
Income tax expense (benefit)		2,371	(626)	2,944	(4,039)
Net income (loss)		9,337	(12,162)	11,831	(26,935)
Less: preferred stock distributions		110	110	220	220
Net income (loss) available to common shareholders		$ 9,227	$ (12,272)	$ 11,611	$ (27,155)
Net income (loss) available to common shareholders
Basic	[1]	$ 0.68	$ (0.84)	$ 0.86	$ (1.87)
Diluted	[1]	$ 0.67	$ (0.84)	$ 0.84	$ (1.87)
Weighted-average number of shares outstanding
Basic		13,478,014	14,543,234	13,573,841	14,529,170
Diluted	[2]	13,707,984	14,543,234	13,794,221	14,529,170
Cash distributions declared per common share		$ 0.25	$ 0.25	$ 0.5	$ 0.5

[1] For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period.

[2] For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period.

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 9,337	$ (12,162)	$ 11,831	$ (26,935)
Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses)	(3,077)	(21,503)	5,080	(63,876)
Reclassification adjustment for losses included in net income (loss)	479	7,877	966	30,962
Unrealized foreign currency translation gains (losses)	42	(227)	(159)	(115)
Other comprehensive income (loss), net of tax	(2,556)	(13,853)	5,887	(33,029)
Comprehensive income (loss), net of tax	$ 6,781	$ (26,015)	$ 17,718	$ (59,964)

XML

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss), Net of Deferred Income Tax	Retained Earnings	Treasury Stock Common	Class A Common Shares Common Stock	Class A Common Shares Treasury Stock Common	Series A Cumulative Fixed Rate Preferred Shares Preferred Stock	Class B Common Shares Common Stock
Number at Dec. 31, 2021						10,574,589	17,496	4,000	3,947,206
Class A common shares purchased							15,954
Common shares issued under share incentive plans, net of forfeitures						50,598
Common shares issued to directors						50,570
Number at Jun. 30, 2022						10,675,757	33,450	4,000	3,947,206
Balance at Dec. 31, 2021		$ 447,406	$ 6,404	$ 249,301	$ (490)			$ 4,000
Class A common shares purchased, at cost							$ (414)
Other comprehensive income (loss):
Change in unrealized holding gains (losses)			(32,914)
Unrealized foreign currency translation gains (losses)	$ (115)		(115)
Other comprehensive income (loss), net of tax	(33,029)		(33,029)
Net income (loss)	(26,935)			(26,935)
Preferred share distributions	(220)			(220)
Dividends/ Distribution to shareholders				(7,389)
Share compensation plans		2,646
Balance at Jun. 30, 2022	641,280	450,052	(26,625)	214,757	(904)			$ 4,000
Number at Mar. 31, 2022						10,614,555	22,277	4,000	3,947,206
Class A common shares purchased							11,173
Common shares issued under share incentive plans, net of forfeitures						35,442
Common shares issued to directors						25,760
Number at Jun. 30, 2022						10,675,757	33,450	4,000	3,947,206
Balance at Mar. 31, 2022		448,266	(12,772)	230,771	(610)			$ 4,000
Class A common shares purchased, at cost							$ (294)
Other comprehensive income (loss):
Change in unrealized holding gains (losses)			(13,626)
Unrealized foreign currency translation gains (losses)	(227)		(227)
Other comprehensive income (loss), net of tax	(13,853)		(13,853)
Net income (loss)	(12,162)			(12,162)
Preferred share distributions	(110)			(110)
Dividends/ Distribution to shareholders				(3,742)
Share compensation plans		1,786
Balance at Jun. 30, 2022	641,280	450,052	(26,625)	214,757	(904)			$ 4,000
Number at Dec. 31, 2022						10,876,041	802,381	4,000	3,793,612
Class A common shares purchased							468,860
Common shares issued under share incentive plans, net of forfeitures						75,541
Common shares issued to directors						48,705
Number at Jun. 30, 2023						11,000,287	1,271,241	4,000	3,793,612
Balance at Dec. 31, 2022	626,229	451,305	(43,058)	233,468	(19,486)			$ 4,000
Class A common shares purchased, at cost							$ (12,677)
Other comprehensive income (loss):
Change in unrealized holding gains (losses)			6,046
Unrealized foreign currency translation gains (losses)	(159)		(159)
Other comprehensive income (loss), net of tax	5,887		5,887
Net income (loss)	11,831			11,831
Preferred share distributions	(220)			(220)
Dividends/ Distribution to shareholders				(6,764)
Share compensation plans		2,122
Balance at Jun. 30, 2023	626,408	453,427	(37,171)	238,315	(32,163)			$ 4,000
Number at Mar. 31, 2023						10,928,380	1,055,683	4,000	3,793,612
Class A common shares purchased							215,558
Common shares issued under share incentive plans, net of forfeitures						49,628
Common shares issued to directors						22,279
Number at Jun. 30, 2023						11,000,287	1,271,241	4,000	3,793,612
Balance at Mar. 31, 2023		452,385	(34,615)	232,506	(26,038)			$ 4,000
Class A common shares purchased, at cost							$ (6,125)
Other comprehensive income (loss):
Change in unrealized holding gains (losses)			(2,598)
Unrealized foreign currency translation gains (losses)	42		42
Other comprehensive income (loss), net of tax	(2,556)		(2,556)
Net income (loss)	9,337			9,337
Preferred share distributions	(110)			(110)
Dividends/ Distribution to shareholders				(3,418)
Share compensation plans		1,042
Balance at Jun. 30, 2023	$ 626,408	$ 453,427	$ (37,171)	$ 238,315	$ (32,163)			$ 4,000

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Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Retained Earnings
Dividend payable, per share	$ 0.25	$ 0.25

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income (loss)	$ 11,831	$ (26,935)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization and depreciation	3,342	3,265
Amortization of debt issuance costs	0	41
Restricted stock and stock option expense	2,122	2,646
Deferred federal income taxes	2,944	(4,039)
Amortization of bond premium and discount, net	(1,725)	1,628
Net realized investment losses	2,281	35,301
Loss on extinguishment of debt	0	3,529
Loss from equity method investments, net of distributions	106	5,913
Changes in:
Premium receivables, net	27,245	(33,515)
Reinsurance receivables, net	(9,895)	(4,200)
Funds held by ceding insurers	2,330	3,905
Unpaid losses and loss adjustment expenses	34,547	44,757
Unearned premiums	(54,166)	20,111
Ceded balances payable	(13,397)	(20,585)
Other assets and liabilities	(7,679)	(3,986)
Contingent commissions	(5,385)	(1,575)
Deferred acquisition costs	12,875	(9,758)
Prepaid reinsurance premiums	6,795	1,956
Net cash provided by operating activities	14,171	18,459
Cash flows from investing activities:
Proceeds from sale of fixed maturities	96,890	829,205
Proceeds from sale of equity securities	24	88,726
Proceeds from maturity of fixed maturities	50,685	42,483
Proceeds from maturity of preferred stock	270	0
Proceeds from other invested assets	789	6,542
Amounts received in connection with derivatives	0	4,490
Purchases of fixed maturities	(135,826)	(860,076)
Purchases of equity securities	(28)	(10,376)
Net cash provided by investing activities	12,804	100,994
Cash flows from financing activities:
Distributions paid to common shareholders	(7,477)	(7,255)
Distributions paid to preferred shareholders	(220)	(220)
Purchases of class A common shares	(12,677)	(414)
Redemption of subordinated notes	0	(130,000)
Net cash used for financing activities	(20,374)	(137,889)
Net change in cash and cash equivalents	6,601	(18,436)
Cash and cash equivalents at beginning of period	38,846	78,278
Cash and cash equivalents at end of period	$ 45,447	$ 59,842

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Principles of Consolidation and Basis of Presentation

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles of Consolidation and Basis of Presentation

1.Principles of Consolidation and Basis of Presentation

Global Indemnity Group, LLC (“Global Indemnity”, "GBLI", or “the Company”), a Delaware limited liability company formed on June 23, 2020, replaced Global Indemnity Limited, incorporated in the Cayman Islands as an exempted company with limited liability, as the ultimate parent company of the Global Indemnity group of companies as a result of a redomestication transaction completed on August 28, 2020. Global Indemnity Group, LLC’s class A common shares are publicly traded on the New York Stock Exchange under the ticker symbol GBLI. Global Indemnity Group, LLC’s predecessors have been publicly traded since 2003. See Note 2 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2022 Annual Report on Form 10-K for additional information regarding the redomestication.

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

The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and six months ended June 30, 2023 and 2022 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 2022 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.

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Restructuring

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring

2.Restructuring

The Company restructured its insurance operations to strengthen its market presence and enhance its focus on GBLI’s core Package Specialty and Targeted Specialty products. As a result, the Company exited its four brokerage divisions: Professional Liability, Excess Casualty, Environmental, and Middle Market Property. The Company ceased writing new business and existing renewals were placed in run-off for these four divisions. The restructuring plan, which was initiated in the fourth quarter of 2022, was completed in the first quarter of 2023.

In connection with the restructuring plan, the Company incurred restructuring costs of $3.4 million during the fourth quarter of 2022 and $2.1 million during the six months ended June 30, 2023 for total restructuring costs of $5.5 million.

The following table summarizes charges incurred by expense type and the remaining liability as of December 31, 2022 and June 30, 2023:

(Dollars in thousands)	Consolidated Statements of Operations Line	Employee Termination			Lease Right of Use Asset Impairment			Total
Charges incurred in 2022	Corporate and other operating expenses	$	2,635		$	—		$	2,635
Charges incurred in 2022	Acquisition costs and other underwriting expenses (1)		—			812			812
Non-cash asset charges			—			(812	)		(812	)
Liability at December 31, 2022			2,635			—			2,635
Charges incurred in 2023	Corporate and other operating expenses		2,121		—				2,121
Cash payments in 2023			(4,249	)		—			(4,249	)
Liability at June 30, 2023		$	507		$	—		$	507

(1) These charges were recorded within the Company's Exited Line segment.

Any information technology initiatives related to business lines within Exited Lines have been discontinued.

XML

Investments

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

3.Investments

The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of June 30, 2023 and December 31, 2022:

(Dollars in thousands)	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of June 30, 2023
Fixed maturities:
U.S. treasuries	$	396,451	$	—	$	12	$	(7,701	)	$	388,762
Obligations of states and political subdivisions		32,272		—		—		(1,666	)		30,606
Mortgage-backed securities		65,086		—		396		(4,816	)		60,666
Asset-backed securities		212,095		—		186		(7,966	)		204,315
Commercial mortgage-backed securities		86,313		—		21		(5,880	)		80,454
Corporate bonds		343,600		—		102		(12,038	)		331,664
Foreign corporate bonds		175,750		—		30		(6,641	)		169,139
Total fixed maturities	$	1,311,567	$	—	$	747	$	(46,708	)	$	1,265,606

(Dollars in thousands)	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of December 31, 2022
Fixed maturities:
U.S. treasuries	$	352,533	$	—	$	—	$	(8,430	)	$	344,103
Obligations of states and political subdivisions		33,471		—		—		(1,876	)		31,595
Mortgage-backed securities		67,560		—		165		(5,609	)		62,116
Asset-backed securities		198,161		—		390		(9,151	)		189,400
Commercial mortgage-backed securities		104,777		—		20		(6,133	)		98,664
Corporate bonds		353,622		—		16		(14,858	)		338,780
Foreign corporate bonds		191,599		—		—		(8,059	)		183,540
Total fixed maturities	$	1,301,723	$	—	$	591	$	(54,116	)	$	1,248,198

As of June 30, 2023 and December 31, 2022, the Company’s investments in equity securities consist of the following:

(Dollars in thousands)	June 30, 2023		December 31, 2022
Common stock	$	1,113	$	1,271
Preferred stock		16,040		16,249
Total	$	17,153	$	17,520

Excluding U.S. treasuries and limited partnerships, the Company did not hold any debt or equity investments in a single issuer in excess of 2.0% and 2.4% of shareholders' equity at June 30, 2023 and December 31, 2022, respectively.

The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at June 30, 2023, 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	$	489,914	$	483,894
Due in one year through five years		428,150		410,281
Due in five years through ten years		17,529		15,287
Due after fifteen years		12,480		10,709
Mortgage-backed securities		65,086		60,666
Asset-backed securities		212,095		204,315
Commercial mortgage-backed securities		86,313		80,454
Total	$	1,311,567	$	1,265,606

The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of June 30, 2023. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 5.

	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	$	198,477	$	(3,953	)	$	120,678	$	(3,748	)	$	319,155	$	(7,701	)
Obligations of states and political subdivisions		7,810		(222	)		19,795		(1,444	)		27,605		(1,666	)
Mortgage-backed securities		16,354		(707	)		33,913		(4,109	)		50,267		(4,816	)
Asset-backed securities		91,904		(1,888	)		95,269		(6,078	)		187,173		(7,966	)
Commercial mortgage-backed securities		1,678		(69	)		76,056		(5,811	)		77,734		(5,880	)
Corporate bonds		74,010		(1,175	)		230,601		(10,863	)		304,611		(12,038	)
Foreign corporate bonds		23,100		(154	)		119,948		(6,487	)		143,048		(6,641	)
Total fixed maturities	$	413,333	$	(8,168	)	$	696,260	$	(38,540	)	$	1,109,593	$	(46,708	)

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, 2022. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 5.

	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	$	335,781	$	(7,518	)	$	8,322	$	(912	)	$	344,103	$	(8,430	)
Obligations of states and political subdivisions		27,772		(1,378	)		3,778		(498	)		31,550		(1,876	)
Mortgage-backed securities		51,517		(4,228	)		7,860		(1,381	)		59,377		(5,609	)
Asset-backed securities		97,857		(3,610	)		62,689		(5,541	)		160,546		(9,151	)
Commercial mortgage-backed securities		67,926		(4,072	)		27,907		(2,061	)		95,833		(6,133	)
Corporate bonds		261,123		(8,480	)		71,192		(6,378	)		332,315		(14,858	)
Foreign corporate bonds		150,308		(5,469	)		31,232		(2,590	)		181,540		(8,059	)
Total fixed maturities	$	992,284	$	(34,755	)	$	212,980	$	(19,361	)	$	1,205,264	$	(54,116	)

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 impairments 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. That new amortized cost basis shall not be adjusted for subsequent recoveries in fair value.

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 $8.3 million and $8.4 million as of June 30, 2023 and December 31, 2022, respectively.

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

U.S. treasuries – As of June 30, 2023, gross unrealized losses related to U.S. treasuries were $7.701 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, macroeconomic and market analysis is conducted in evaluating these securities. Consideration is given to the interest rate environment, duration and yield curve management of the portfolio, sector allocation and security selection. Based on the analysis performed, the Company did not recognize a credit loss on U.S. treasuries during the period.

Obligations of states and political subdivisions – As of June 30, 2023, gross unrealized losses related to obligations of states and political subdivisions were $1.666 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, elements that may influence the performance of the municipal bond market are considered in evaluating these securities such as investor expectations, supply and demand patterns, and current versus historical yield and spread relationships. The analysis relies on the output of fixed income credit analysts, as well as dedicated municipal bond analysts who perform extensive in-house fundamental analysis on each issuer, regardless of their rating by the major agencies. Based on the analysis performed, the Company did not recognize a credit loss on obligations of states and political subdivisions during the period.

Mortgage-backed securities (“MBS”) – As of June 30, 2023, gross unrealized losses related to mortgage-backed securities were $4.816 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 accurate projections. These assumptions are incorporated into the model as a basis to generate delinquency probabilities, default curves, loss severity curves, and voluntary prepayment curves at the loan level within each deal. The model utilizes HPI-adjusted current loan to value, payment history, loan terms, loan modification history, and borrower characteristics as inputs to generate expected cash flows and principal loss for each bond under various scenarios. Based on the analysis performed, the Company did not recognize a credit loss on mortgage-backed securities during the period.

Asset backed securities (“ABS”) - As of June 30, 2023, gross unrealized losses related to asset backed securities were $7.966 million. The weighted average credit enhancement for the Company’s asset backed portfolio is 35.0. This represents the percentage of pool losses that can occur before an asset backed security will incur its first dollar of principal losses. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, every ABS transaction is analyzed on a stand-alone basis. This analysis involves a thorough review of the collateral, prepayment, and structural risk in each transaction. Additionally, the analysis includes an in-depth credit analysis of the originator and servicer of the collateral. The analysis projects an expected loss for a deal given a set of assumptions specific to the asset type. These assumptions are used to calculate at what level of losses the deal will incur its first dollar of principal loss. The major assumptions used to calculate this ratio are loss severities, recovery lags, and no advances on principal and interest. Based on the analysis performed, the Company did not recognize a credit loss on asset backed securities during the period.

Commercial mortgage-backed securities (“CMBS”) - As of June 30, 2023, gross unrealized losses related to the CMBS portfolio were $5.880 million. The weighted average credit enhancement for the Company’s CMBS portfolio is 46.9. 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 at balloon. The resulting output is the expected loss adjusted cash flows for each bond under the base case and distressed scenarios. Based on the analysis performed, the Company did not recognize a credit loss on commercial mortgage-backed securities during the period.

Corporate bonds - As of June 30, 2023, gross unrealized losses related to corporate bonds were $12.038 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, analysis for this asset class includes maintaining detailed financial models that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. Based on the analysis performed, the Company did not recognize a credit loss on corporate bonds during the period.

Foreign bonds – As of June 30, 2023, gross unrealized losses related to foreign bonds were $6.641 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.

The Company recorded the following impairments on its investment portfolio for the quarters and six months ended June 30, 2023 and 2022 and are related to securities in an unrealized loss position where the Company had an intent to sell the securities:

	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2023		2022 (1)			2023		2022
Fixed maturities:
Impairment related to intent to sell		—		(680	)		—		(26,205	)
Total	$	—	$	(680	)	$	—	$	(26,205	)

(1)In response to a rising interest rate environment, the Company took action early in April 2022 to shorten the duration of its fixed maturities portfolio. In connection with these actions, the Company identified fixed maturities securities with a weighted average life of five years or greater as having an intent to sell resulting in other-than-temporary impairment losses. The majority of which were sold in the 2nd quarter of 2022. Most of the proceeds from the sale of these securities were reinvested into fixed income investments with maturities of two years. As a result of these actions, the Company's book yield rose over time. Book yield was approximately 2.2% at December 31, 2021 and 3.8% at June 30, 2023.

Accumulated Other Comprehensive Income (Loss), Net of Tax

Accumulated other comprehensive income, net of tax, as of June 30, 2023 and December 31, 2022 was as follows:

(Dollars in thousands)	June 30, 2023			December 31, 2022
Net unrealized gains (losses) from:
Fixed maturities	$	(45,961	)	$	(53,525	)
Foreign currency fluctuations		(328	)		(127	)
Deferred taxes		9,118			10,594
Accumulated other comprehensive income (loss), net of tax	$	(37,171	)	$	(43,058	)

The following tables present the changes in accumulated other comprehensive income, net of tax, by components, for the quarters and six months ended June 30, 2023 and 2022:

Quarter Ended June 30, 2023 (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	$	(34,314	)	$	(301	)	$	(34,615	)
Other comprehensive income (loss) before reclassification, before tax		(3,757	)		53			(3,704	)
Amounts reclassified from accumulated other comprehensive income, before tax		587			—			587
Other comprehensive income (loss), before tax		(3,170	)		53			(3,117	)
Income tax (expense) benefit		572			(11	)		561
Ending balance, net of tax	$	(36,912	)	$	(259	)	$	(37,171	)

Quarter Ended June 30, 2022 (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	$	(12,769	)	$	(3	)	$	(12,772	)
Other comprehensive loss before reclassification, before tax		(26,518	)		(287	)		(26,805	)
Amounts reclassified from accumulated other comprehensive income, before tax		9,317			—			9,317
Other comprehensive loss, before tax		(17,201	)		(287	)		(17,488	)
Income tax benefit		3,575			60			3,635
Ending balance, net of tax	$	(26,395	)	$	(230	)	$	(26,625	)

Six Months Ended June 30, 2023 (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	$	(42,958	)	$	(100	)	$	(43,058	)
Other comprehensive (loss) before reclassification, before tax		6,371			(201	)		6,170
Amounts reclassified from accumulated other comprehensive income, before tax		1,193			—			1,193
Other comprehensive income (loss), before tax		7,564			(201	)		7,363
Income tax (expense) benefit		(1,518	)		42			(1,476	)
Ending balance, net of tax	$	(36,912	)	$	(259	)	$	(37,171	)

Six Months Ended June 30, 2022 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income (Loss)
Beginning balance, net of tax	$	6,519		$	(115	)	$	6,404
Other comprehensive loss before reclassification, before tax		(79,267	)		(146	)		(79,413	)
Amounts reclassified from accumulated other comprehensive income, before tax		38,081			—			38,081
Other comprehensive loss, before tax		(41,186	)		(146	)		(41,332	)
Income tax benefit		8,272			31			8,303
Ending balance, net of tax	$	(26,395	)	$	(230	)	$	(26,625	)

The reclassifications out of accumulated other comprehensive income for the quarters and six months ended June 30, 2023 and 2022 were as follows:

		Amounts Reclassified from Accumulated Other Comprehensive Income
(Dollars in thousands)		Quarters Ended June 30,
Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Consolidated Statements of Operations	2023			2022
Unrealized gains and losses on available for sale securities	Other net realized investment (gains) losses	$	587		$	8,637
	Other than temporary impairment losses on investments		—			680
	Total before tax		587		$	9,317
	Income tax expense (benefit)		(108	)		(1,440	)
	Total reclassifications, net of tax	$	479		$	7,877

		Amounts Reclassified from Accumulated Other Comprehensive Income
(Dollars in thousands)		Six Months Ended June 30,
Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Consolidated Statements of Operations	2023			2022
Unrealized gains and losses on available for sale securities	Other net realized investment (gains) losses	$	1,193		$	11,876
	Other than temporary impairment losses on investments		—			26,205
	Total before tax		1,193		$	38,081
	Income tax expense (benefit)		(227	)		(7,119	)
	Total reclassifications, net of tax	$	966		$	30,962

Net Realized Investment Gains (Losses)

The components of net realized investment gains (losses) for the quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Fixed maturities:
Gross realized gains	$	9		$	456		$	14		$	662
Gross realized losses		(596	)		(9,773	)		(1,207	)		(38,743	)
Net realized gains (losses)		(587	)		(9,317	)		(1,193	)		(38,081	)
Equity securities:
Gross realized gains		209			2			784			1,806
Gross realized losses		(383	)		(2,417	)		(1,872	)		(5,566	)
Net realized gains (losses)		(174	)		(2,415	)		(1,088	)		(3,760	)
Derivatives:
Gross realized gains		—			2,872			—			8,960
Gross realized losses		—			(1,056	)		—			(2,420	)
Net realized gains (losses) (1)		—			1,816			—			6,540
Total net realized investment gains (losses)	$	(761	)	$	(9,916	)	$	(2,281	)	$	(35,301	)

(1)Includes periodic net interest settlements related to the derivatives of $1.1 million for the quarters ended June 30, 2022 and $2.5 million for the six months ended June 30, 2022.

The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of June 30, 2023 and 2022:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Net gains (losses) recognized during the period on equity securities	$	(174	)	$	(2,415	)	$	(1,088	)	$	(3,760	)
Less: net gains (losses) recognized during the period on equity securities sold during the period		—			(498	)		18			10,616
Unrealized gains (losses) recognized during the reporting period on equity securities	$	(174	)	$	(1,917	)	$	(1,106	)	$	(14,376	)

The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the six months ended June 30, 2023 and 2022 were as follows:

	Six Months Ended June 30,
(Dollars in thousands)	2023		2022
Fixed maturities	$	96,890	$	829,205
Equity securities		24		88,726

Net Investment Income

The sources of net investment income for the quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Fixed maturities	$	12,313		$	7,467		$	23,773		$	13,871
Equity securities		257			275			447			609
Cash and cash equivalents		300			99			563			131
Other invested assets		697			(5,300	)		1,164			(4,874	)
Total investment income		13,567			2,541			25,947			9,737
Investment expense		(351	)		(611	)		(723	)		(1,215	)
Net investment income	$	13,216		$	1,930		$	25,224		$	8,522

The Company’s total investment return on a pre-tax basis for the quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Net investment income	$	13,216		$	1,930		$	25,224		$	8,522
Net realized investment losses		(761	)		(9,916	)		(2,281	)		(35,301	)
Change in unrealized holding gains (losses)		(3,117	)		(17,488	)		7,363			(41,332	)
Net realized and unrealized investment returns		(3,878	)		(27,404	)		5,082			(76,633	)
Total investment return	$	9,338		$	(25,474	)	$	30,306		$	(68,111	)
Total investment return % (1)		0.7	%		(1.8	%)		2.3	%		(4.8	%)
Average investment portfolio (2)	$	1,345,235		$	1,395,519		$	1,343,024		$	1,429,227

(1)Not annualized.

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

As of June 30, 2023 and December 31, 2022, the Company did not own any fixed maturity securities that were non-income producing for the preceding twelve months.

Insurance Enhanced Asset-Backed and Credit Securities

As of June 30, 2023, the Company held insurance enhanced municipal bonds with a market value of approximately $6.2 million which represented 0.5% of the Company’s total cash and invested assets, net of payable/ receivable for securities purchased and sold. The financial guarantors of the Company’s $6.2 million municipal bonds include Assured Guaranty Corporation ($5.0 million) and Ambac Financial Group ($1.2 million).

The Company had no direct investments in the entities that have provided financial guarantees or other credit support to any security held by the Company at June 30, 2023.

Bonds Held on Deposit

Certain cash and cash equivalents and bonds available for sale were deposited with various governmental authorities in accordance with statutory requirements, were held as collateral, or were held in trust. The fair values were as follows as of June 30, 2023 and December 31, 2022:

	Estimated Fair Value
(Dollars in thousands)	June 30, 2023		December 31, 2022
On deposit with governmental authorities	$	20,983	$	19,290
Held in trust pursuant to third party requirements		164,845		161,901
Total (1)	$	185,828	$	181,191

(1)Includes cash and cash equivalents of $9.3 million and $3.7 million at June 30, 2023 and December 31, 2022, 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 variable interests in two VIE’s for which it is not the primary beneficiary. These investments are accounted for under the equity method of accounting as their ownership interest exceeds 3% of their respective investments.

The carrying value of one of the Company’s VIE’s, which invests in distressed securities and assets, was $4.4 million and $4.8 million as of June 30, 2023 and December 31, 2022, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was $18.6 million and $19.0 million at June 30, 2023 and December 31, 2022, respectively. The carrying value and maximum exposure to loss of a second VIE that invests in Real Estate Investment Trust (“REIT”) qualifying assets was $9.4 million and $9.8 million as of June 30, 2023 and December 31, 2022, 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.

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Derivative Instruments

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

4.Derivative Instruments

Derivatives were used by the Company to reduce risks from changes in interest rates and limit exposure to severe equity market changes. The Company used interest rate swaps with terms to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company has also used exchange-traded futures contracts, which give the holder the right and obligation to participate in market movements at a future date, to allow the Company to react faster to market conditions. When using derivatives, the Company posts collateral and settles variation margin in cash on a daily basis equal to the amount of the derivatives’ change in value.

The Company accounts for the interest rate swaps and futures as non-hedge instruments and recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains or losses in the consolidated statements of operations. The Company is ultimately responsible for the valuation of the interest rate swaps. To aid in determining the estimated fair value of the interest rate swaps, the Company relies on the forward interest rate curve and information obtained from a third party financial institution.

The following table summarizes the net gains included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters and six months ended June 30, 2023 and 2022:

		Quarters Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	Consolidated Statements of Operations Line	2023		2022		2023		2022
Interest rate swap agreements	Net realized investment gains (losses)	$	—	$	1,816	$	—	$	6,540
Total		$	—	$	1,816	$	—	$	6,540

The Company terminated its outstanding interest rate swaps in the fourth quarter of 2022 and was not utilizing interest rate swap agreements as of December 31, 2022. There are no outstanding amounts related to the interest rate swap agreements on the consolidated balance sheets as of June 30, 2023 or December 31, 2022.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

5.Fair Value Measurements

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

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

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

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

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

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

The following table presents information about the Company’s invested assets measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.

	Fair Value Measurements
As of June 30, 2023 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasuries	$	388,762	$	—	$	—	$	388,762
Obligations of states and political subdivisions		—		30,606		—		30,606
Mortgage-backed securities		—		59,717		949		60,666
Commercial mortgage-backed securities		—		80,454		—		80,454
Asset-backed securities		—		204,315		—		204,315
Corporate bonds		—		329,939		1,725		331,664
Foreign corporate bonds		—		169,139		—		169,139
Total fixed maturities		388,762		874,170		2,674		1,265,606
Equity securities		—		16,040		1,113		17,153
Total assets measured at fair value	$	388,762	$	890,210	$	3,787	$	1,282,759

	Fair Value Measurements
As of December 31, 2022 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasuries	$	344,103	$	—	$	—	$	344,103
Obligations of states and political subdivisions		—		31,595		—		31,595
Mortgage-backed securities		—		61,156		960		62,116
Commercial mortgage-backed securities		—		98,664		—		98,664
Asset-backed securities		—		189,073		327		189,400
Corporate bonds		—		336,767		2,013		338,780
Foreign corporate bonds		—		183,540		—		183,540
Total fixed maturities		344,103		900,795		3,300		1,248,198
Equity securities		—		16,249		1,271		17,520
Total assets measured at fair value	$	344,103	$	917,044	$	4,571	$	1,265,718

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

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

The investments classified as Level 3 in the above table consist of fixed maturities and equity securities with unobservable inputs.

The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters and six months ended June 30, 2023 and 2022:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Beginning balance	$	4,335		$	4,288		$	4,571		$	2,769
Total gains (realized / unrealized):
Included in accumulated other comprehensive income		(3	)		23			7			15
Included in earnings attributable to realized gains / losses		(113	)		(102	)		(172	)		(170	)
Transfers into level 3		—			607			—			857
Amortization of bond premium and discount, net		2			2			4			2
Purchases		39			55			113			1,479
Sales		(473	)		(523	)		(736	)		(602	)
Ending balance		3,787			4,350			3,787			4,350
Gains (losses) included in earnings attributable to the change in unrealized gains (losses) related to assets still held at end of reporting period	$	(103	)	$	(9	)	$	(162	)	$	(14	)

Fair Value of Alternative Investments

Other invested assets consist of limited partnerships whose carrying value approximates fair value. The following table provides the fair value and future funding commitments related to these investments at June 30, 2023 and December 31, 2022.

	June 30, 2023				December 31, 2022
(Dollars in thousands)	Fair Value		Future Funding Commitment		Fair Value		Future Funding Commitment
European Non-Performing Loan Fund, LP (1)	$	4,406	$	14,214	$	4,832	$	14,214
Mortgage Debt Fund, LP (2)		9,374		—		9,771		—
Global Debt Fund, LP (3)		23,502		—		23,573		—
Total	$	37,282	$	14,214	$	38,176	$	14,214

(1)This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets.

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

(3)This limited partnership invests in performing, stressed or distressed securities and loans across the global fixed income markets. The Company does have the contractual option to withdraw all or a portion of its limited partnership interest by providing notice to the fund.

Limited Liability Companies and Limited Partnerships with ownership interest exceeding 3%

The Company uses the equity method to account for investments in limited liability companies and limited partnerships where its ownership interest exceeds 3%. The equity method of accounting for an investment in limited liability companies and limited partnerships requires that its cost basis be updated to account for the income or loss earned on the investment. In the Fair Value of Alternative Investments table above, all of the investments are booked on a one quarter lag due to non-availability of data at the time the financial statements are prepared. The investment income (loss) associated with the limited liability companies and limited partnerships whose ownership interest exceeds 3% is reflected in the consolidated statements of operations in the amounts of $0.5 million and ($5.3) million for the quarters ended June 30, 2023 and 2022, respectively, and $0.6 million and ($5.4) million for the six months ended June 30, 2023 and 2022, respectively.

Pricing

The Company’s pricing vendors provide prices for all investment categories except for investments in limited liability companies and 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 are evaluated by utilizing a spread to a benchmark curve. Bonds with similar characteristics are grouped into specific sectors. Inputs for both asset classes consist of trade prices, broker quotes, the new issue market, and prices on comparable securities.

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

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

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

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

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

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

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

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

During the quarters and six months ended June 30, 2023 and 2022, the Company has not adjusted quotes or prices obtained from the pricing vendors.

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Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables

6 Months Ended

Jun. 30, 2023

Allowance for Credit Loss [Abstract]

Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables

6.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 or agent, terminated agents, and other relevant factors.

The following table is an analysis of the allowance for expected credit losses related to the Company's premium receivables for the quarters and six months ended June 30, 2023 and 2022:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Beginning balance	$	3,379		$	2,937		$	3,322		$	2,996
Current period provision for expected credit losses		1,369			536			1,717			619
Write-offs		(692	)		(554	)		(983	)		(696	)
Ending balance	$	4,056		$	2,919		$	4,056		$	2,919

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 following table is an analysis of the allowance for expected credit losses related to the Company's reinsurance receivables for the quarters and six months ended June 30, 2023 and 2022:

	Quarters Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2023		2022		2023		2022
Beginning balance	$	8,992	$	8,992	$	8,992	$	8,992
Current period provision for expected credit losses		—		—		—		—
Write-offs		—		—		—		—
Recoveries of amounts previously written off		—		—		—		—
Ending balance	$	8,992	$	8,992	$	8,992	$	8,992

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Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

7.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.

As of June 30, 2023, the statutory income tax rates of the countries where the Company conducts business are 21% in the United States, 0% in Bermuda, and 25% on non-trading income, 33% on capital gains and 12.5% on trading income in the Republic of Ireland. The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense.

The Company’s income (loss) before income taxes is derived from its U.S. subsidiaries for the quarters and six months ended June 30, 2023 and 2022.

The following table summarizes the components of income tax expense (benefit):

	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2023		2022			2023		2022
Deferred income tax expense (benefit):
U.S. Federal	$	2,371	$	(626	)	$	2,944	$	(4,039	)
Total deferred income tax expense (benefit)		2,371		(626	)		2,944		(4,039	)
Total income tax expense (benefit)	$	2,371	$	(626	)	$	2,944	$	(4,039	)

The weighted average expected tax provision has been calculated using income (loss) before income taxes in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate.

The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate:

	Quarters Ended June 30,
	2023						2022
(Dollars in thousands)	Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income
Expected tax provision at weighted average tax rate	$	2,459			21.0	%	$	(2,686	)		21.0	%
Adjustments:
Dividend exclusion		(21	)		(0.2	)		(24	)		0.2
Parent income treated as partnership for tax		(146	)		(1.2	)		1,827			(14.3	)
Other		79			0.7			257			(2.0	)
Effective income tax expense (benefit)	$	2,371			20.3	%	$	(626	)		4.9	%

The effective income tax expense rate for the quarter ended June 30, 2023 was 20.3% compared to an effective income tax benefit rate of 4.9% for the quarter ended June 30, 2022. The difference between 2023 and 2022 is primarily due to a change in income or loss at the parent company which is treated as a partnership for tax.

	Six Months Ended June 30,
	2023						2022
(Dollars in thousands)	Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income
Expected tax provision at weighted average tax rate	$	3,103			21.0	%	$	(6,505	)		21.0	%
Adjustments:
Dividend exclusion		(38	)		(0.3	)		(46	)		0.1
Parent (income) loss treated as partnership for tax		(342	)		(2.3	)		2,070			(6.7	)
Other		221			1.5			442			(1.4	)
Effective income tax expense (benefit)	$	2,944			19.9	%	$	(4,039	)		13.0	%

The effective income tax expense rate for the six months ended June 30, 2023 was 19.9% compared to an effective income tax benefit rate of 13.0% for the six months ended June 30, 2022. The difference between 2023 and 2022 is primarily due to a change in income or loss at the parent company which is treated as a partnership for tax.

The Company has a net operating loss (“NOL”) carryforward of $98.1 million as of June 30, 2023, which begins to expire in 2036 based on when the original NOL was generated. The Company’s NOL carryforward as of December 31, 2022 was $116.4 million.

The Company did not have any Section 163(j) ("163(j)") carryforward as of June 30, 2023 or December 31, 2022. The 163(j) carryforward relates to the limitation on the deduction for business interest expense paid or accrued.

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Liability for Unpaid Losses and Loss Adjustment Expenses

6 Months Ended

Jun. 30, 2023

Insurance [Abstract]

Liability for Unpaid Losses and Loss Adjustment Expenses

8.Liability for Unpaid Losses and Loss Adjustment Expenses

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

	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2023		2022			2023		2022
Balance at beginning of period	$	857,520	$	770,332		$	832,404	$	759,904
Less: Ceded reinsurance receivables		73,665		93,194			73,021		94,443
Net balance at beginning of period		783,855		677,138			759,383		665,461
Incurred losses and loss adjustment expenses related to:
Current year		78,031		96,189			166,032		183,947
Prior years		51		(3,571	)		51		(6,634	)
Total incurred losses and loss adjustment expenses		78,082		92,618			166,083		177,313
Paid losses and loss adjustment expenses related to:
Current year		24,565		29,079			34,184		42,394
Prior years		44,354		30,201			98,264		89,904
Total paid losses and loss adjustment expenses		68,919		59,280			132,448		132,298
Net balance at end of period		793,018		710,476			793,018		710,476
Plus: Ceded reinsurance receivables		73,933		94,185			73,933		94,185
Balance at end of period	$	866,951	$	804,661		$	866,951	$	804,661

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

During the second quarter of 2023, the Company's increased its prior accident year loss reserves by $0.1 million, which consisted of a $5.0 million increase related to Commercial Specialty, a $1.0 million increase related to Reinsurance Operations, and a $5.9 million decrease related to Exited Lines.

The $5.0 million increase in prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

•Property: A $1.0 million decrease primarily recognizes lower than expected claims severity in the 2020 and 2022 accident years, partially offset by increases in the 2015 accident year.

•General Liability: A $6.1 million increase primarily recognizes higher than expected claims severity in the 2017 through 2022 accident years partially offset by decreases in accident years prior to 2006 primarily related to construction defect.

The $1.0 million increase of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:

•Professional: A $1.1 million increase in the 2022 accident year recognizes higher prior accident year case incurred emergence than expected.

•General Liability: A $0.1 million decrease based on information received from the cedants.

The $5.9 million decrease in prior accident year loss reserves related to Exited Lines primarily consisted of the following:

•Property: A $1.1 million increase primarily in Property Brokerage. The increase reflects higher than expected claims severity in the 2014, 2021 and 2022 accident years partially offset by lower than expected severity in the 2017 and 2020 accident years.

•Reinsurance: A $6.2 million decrease in the 2012 and 2015 through 2021 accident years based on information received from cedants, primarily in the property treaties.

•General Liability: A $0.9 million decrease primarily recognizes lower than expected severity in the 2014 through 2017 accident years, partially offset by an increase in the 2019 accident year.

During the second quarter of 2022, the Company decreased its prior accident year loss reserves by $3.6 million, which consisted of a $2.3 million decrease related to Commercial Specialty, a $1.2 million decrease related to Reinsurance Operations, and a $0.1 million decrease related to Exited Lines.

The $2.3 million decrease of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

•Property: A $3.4 million decrease primarily recognizes lower than expected claims severity in the 2015 and 2018 through 2021 accident years.

•General Liability: A $1.2 million increase reflects higher than expected claims severity in accident years prior to 2005, 2016, 2017, 2019 and 2020 accident years, partially offset by decreases in the 2010 through 2015, 2018 and 2021 accident years.

The $1.2 million reduction of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:

•Professional: A $1.2 million decrease was recognized in the 2016 accident year reflecting a reduction in the ultimate for the claims-made segment; the inception-to-date case incurred remains zero in this year.

The $0.1 million reduction of prior accident year loss reserves related to Exited Lines consisted of the following:

•Property: A $2.0 million increase reflects higher than expected claims severity in the 2015 through 2018 accident years, partially offset by a decrease in the 2011 and 2021 accident years.

•Reinsurance: A $2.1 million decrease primarily in the 2017 through the 2021 accident years based on the reported information from cedants.

During the first six months of 2023, the Company increased its prior accident year loss reserves by $0.1 million, which consisted of a $6.5 million increase related to Commercial Specialty, a $1.0 million increase related to Reinsurance Operations, and a $7.4 million decrease related to Exited Lines.

The $6.5 million increase of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

•Property: A $0.8 million decrease recognizes lower than expected claims severity in the 2021 accident year, partially offset by increases in the 2015, 2019, 2020, and 2022 accident years.

•General Liability: A $7.3 million increase recognizes higher than expected claims severity in the 2013, 2015, 2017, and 2019 through 2022 accident years, partially offset by decreases in accident years prior to 2006 related to construction defect and the 2011 accident year.

The $1.0 million increase of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:

•Professional: A $1.1 million increase in the 2022 accident year recognizes higher prior accident year case incurred emergence than expected.

•General Liability: A $0.1 million decrease based on information received from the cedants.

The $7.4 million reduction of prior accident year loss reserves related to Exited Lines primarily consisted of the following:

•Property: A $1.3 million increase reflects higher than expected claims severity in the 2014, 2021 and 2022 accident years in Property Brokerage, partially offset by lower than expected severity in the 2016, 2017 and 2020 accident years.

•Reinsurance: A $7.3 million decrease in the 2012 and 2015 through 2021 accident years based on information received from cedants, primarily in the property treaties.

•General Liability: A $1.4 million decrease primarily recognizes lower than expected severity in the 2014 through 2017 accident years, partially offset by an increase in the 2022 accident year.

During the first six months of 2022, the Company decreased its prior accident year loss reserves by $6.6 million, which consisted of a $0.4 million decrease related to Commercial Specialty, a $1.2 million decrease related to Reinsurance Operations, and a $5.0 million decrease related to Exited Lines.

The $0.4 million decrease of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

•Property: A $1.5 million decrease primarily recognizes lower than expected claims severity in the 2019 and 2021 accident years, partially offset by increases in the 2015 and 2018 accident years.

•General Liability: A $1.2 million increase reflects higher than expected claims severity in accident years prior to 2005, 2010, 2016, 2017, 2019 and 2020 accident years, partially offset by decreases in the 2006, 2007, 2011 through 2015, 2018 and 2021 accident years.

The $1.2 million reduction of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:

•Professional: A $1.2 million decrease was recognized in the 2016 accident year reflecting a reduction in the ultimate for the claims-made segment; the inception-to-date case incurred remains zero in this year.

The $5.0 million reduction of prior accident year loss reserves related to Exited Lines primarily consisted of the following:

•Property: A $0.2 million decrease primarily in the 2011, 2018 and 2021 accident years, partially offset by increases in the 2015 through 2017 and 2020 accident years.

•Reinsurance: A $4.3 million decrease primarily in the 2017 through the 2021 accident years based on reported information from the cedants.

•General Liability: A $0.6 million reduction in the 2017, 2019 and 2021 accident years partially offset by an increase in the 2018 accident year.

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Shareholders' Equity

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Shareholders' Equity

9.Shareholders’ Equity

Repurchases of the Company's class A common shares

On October 21, 2022, Global Indemnity Group, LLC announced it commenced a stock repurchase program beginning in the fourth quarter of 2022. On January 3, 2023, Global Indemnity Group, LLC announced that it had authorized an increase in the aggregate stock purchase program from $32 million, which was authorized on October 21, 2022, to $60 million. On June 8, 2023, Global Indemnity Group, LLC's Board of Directors approved an additional increase in the existing share buyback authorization amount of $60 million to $135 million. The authorization to repurchase will expire on December 31, 2027. The timing and actual number of shares repurchased, if any, will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities.

The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2023:

Period (1)	Total Number of Shares Purchased			Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
January 1-31, 2023		3,302	(3)	$	23.31		—		—
January 1-31, 2023		250,000	(4)	$	25.90		250,000	$	106,604,066
April 1-30, 2023		200,000	(4)	$	28.00		200,000	$	101,004,066
June 1-30, 2023		15,558	(3)	$	33.74		—	$	101,004,066
Total		468,860		$	27.04

(1)Based on settlement date.

(2)Based on the $135 million share repurchase authorization.

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

(4)Purchased as part of the repurchase program announced in October 2022.

The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2022:

Period (1)	Total Number of Shares Purchased			Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
January 1-31, 2022		4,781	(2)	$	25.13		—		—
June 1-30, 2022		11,173	(2)	$	26.28		—		—
Total		15,954		$	25.94	—		—

(1)Based on settlement date.

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

There were no class B common shares that were surrendered or repurchased during the quarters and six months ended June 30, 2023 or 2022.

Each class A common share has one vote and each class B common share has ten votes.

As of June 30, 2023, Global Indemnity Group, LLC’s class A common shares were held by approximately 140 shareholders of record. There were two holders of record of Global Indemnity Group, LLC’s class B common shares, all of whom are affiliated investment funds of Fox Paine & Company, LLC, as of June 30, 2023. Global Indemnity Group, LLC’s preferred shares were held by 1 holder of record, an affiliate of Fox Paine & Company, LLC, as of June 30, 2023.

Please see Note 16 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2022 Annual Report on Form 10-K for more information on the Company’s repurchase program.

Distributions

Distribution payments of $0.25 per common share were declared during the six months ended June 30, 2023 as follows:

Approval Date	Record Date	Payment Date	Total Distributions Declared (Dollars in thousands)
March 2, 2023	March 24, 2023	March 31, 2023	$	3,410
June 1, 2023	June 23, 2023	June 30, 2023		3,375
Various (1)	Various	Various		(21	)
Total			$	6,764

(1)Represents distributions declared on unvested shares, net of forfeitures.

Distribution payments of $0.25 per common share were declared during the six months ended June 30, 2022 as follows:

Approval Date	Record Date	Payment Date	Total Distributions Declared (Dollars in thousands)
March 3, 2022	March 21, 2022	March 31, 2022	$	3,597
June 2, 2022	June 20, 2022	June 30, 2022		3,602
Various (1)	Various	Various		190
Total			$	7,389

(1)Represents distributions declared on unvested shares, net of forfeitures.

In addition, distributions paid to Global Indemnity Group, LLC's preferred shareholder were $0.1 million in each of the quarters ended June 30, 2023 and 2022 and $0.2 million in each of the six months ended June 30, 2023 and 2022.

Accrued distributions on unvested shares, which were included in other liabilities on the consolidated balance sheets, were $0.3 million and $1.1 million as of June 30, 2023 and December 31, 2022, respectively. Accrued preferred distributions were less than $0.1 million as of both June 30, 2023 and December 31, 2022 and were included in other liabilities on the consolidated balance sheets.

Please see Note 16 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2022 Annual Report on Form 10-K for more information on the Company’s distribution program.

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Related Party Transactions

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

Related Party Transactions

10.Related Party Transactions

Fox Paine Entities

Pursuant to Global Indemnity Group, LLC’s Limited Liability Company Agreement (“LLCA”), Fox Paine Capital Fund II International, L.P. (the “Fox Paine Fund”), together with Fox Mercury Investments, L.P. and certain of its affiliates (the “FM Entities”), and Fox Paine & Company LLC (collectively, the “Fox Paine Entities”) currently constitute a Class B Majority Shareholder (as defined in the LLCA) and, as such, have the right to appoint a number of Global Indemnity Group, LLC’s directors equal in aggregate to the pro rata percentage of the voting power in Global Indemnity Group, LLC beneficially held by the Fox Paine Entities, rounded up to the nearest whole number of directors. The Fox Paine Entities beneficially own shares representing approximately 83.9% of the voting power of Global Indemnity Group, LLC as of June 30, 2023. 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 and $0.7 million were incurred during the quarters ended June 30, 2023 and 2022, respectively, and management fee expense of $1.5 million and $1.4 million were incurred during the six months ended June 30, 2023 and 2022, respectively. Prepaid management fees, which were included in other assets on the consolidated balance sheets, were $0.5 million and $2.1 million as of June 30, 2023 and December 31, 2022, 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 independent directors, and the Board of Directors (other than Saul A. Fox, Chairman of the Board of Directors of Global Indemnity Group, LLC and Chief Executive of Fox Paine & Company, LLC, who is not a member of the Conflicts Committee and recused himself from the Board of Directors’ deliberations related to fees paid to Fox Paine & Company, LLC or its affiliates).

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

11.Commitments and Contingencies

Legal Proceedings

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

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

Commitments

In 2014, the Company entered into a $50 million commitment to purchase an alternative investment vehicle which is comprised of European non-performing loans. As of June 30, 2023, the Company has funded $35.8 million of this commitment leaving $14.2 million as unfunded. Since the investment period has concluded, the Company expects minimal 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 10 above for additional information pertaining to this management agreement.

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Share-Based Compensation Plans

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation Plans

12.Share-Based Compensation Plans

Share Incentive Plan

On June 14, 2023, the Company’s Shareholders approved the Global Indemnity Group, LLC 2023 Share Incentive Plan (“the 2023 Plan”). The primary purpose of the 2023 Plan is to provide Global Indemnity a competitive advantage in attracting, retaining, and motivating officers, employees, consultants and non-employee directors, and to position Global Indemnity to offer incentives linked to the financial results of the Company’s business and increases in shareholder value. Under the 2023 Plan, the Company may issue up to 2.5 million class A common shares pursuant to awards granted under the Plan. The 2023 Plan replaced the Global Indemnity Group, LLC 2018 Share Incentive Plan, as amended and restated on August 28, 2020 which expired pursuant to its terms on March 4, 2023.

Options

No stock options were awarded during the quarters and six months ended June 30, 2023 or 2022. No unvested stock options were forfeited during the quarters and six months ended June 30, 2023 or 2022.

Restricted Shares / Restricted Stock Units

There were no restricted class A common shares or restricted stock units granted to key employees during the quarters and six months ended June 30, 2023 and 2022. There were no restricted class A common shares or restricted stock units forfeited during the quarter and six months ended June 30, 2023 and 2022.

There were 49,628 and 35,442 restricted stock units that vested during the quarters ended June 30, 2023 and 2022, respectively, and 75,541 and 61,522 restricted stock units that vested during the six months ended June 30, 2023 and 2022, respectively Upon vesting, the restricted stock units converted to restricted class A common shares.

During the quarters ended June 30, 2023 and 2022, the Company granted 22,279 and 25,760 class A common shares, respectively, at a weighted average grant date value of $30.20 and $25.96 per share, respectively, to non-employee directors of the Company under the Plan. During the six months ended June 30, 2023 and 2022, the Company granted 48,705 and 50,570 class A common shares, respectively, at a weighted average grant date value of $27.63 and $25.80 per share, respectively, to non-employee directors of the Company under the Plan. The Company previously granted 157,139 shares to a non-employee director with deferred vesting. These shares vested on January 13, 2023. All other shares granted to non-employee directors of the Company are fully vested but are subject to certain restrictions.

Rule 10b5-1 Trading Plans

The Company did not have any Rule 10b5-1 Trading Plans in place during the six months ended June 30, 2023 and 2022.

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Earnings Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

13.Earnings Per Share

Earnings per share have been 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:

	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands, except share and per share data)	2023		2022			2023		2022
Numerator:
Net income (loss)	$	9,337	$	(12,162	)	$	11,831	$	(26,935	)
Less: preferred stock distributions		110		110			220		220
Net income (loss) available to common shareholders	$	9,227	$	(12,272	)	$	11,611	$	(27,155	)
Denominator:
Weighted average shares for basic earnings per share		13,478,014		14,543,234			13,573,841		14,529,170
Non-vested restricted stock units		61,579		—			58,571		—
Options		168,391		—			161,809		—
Weighted average shares for diluted earnings per share (1)		13,707,984		14,543,234			13,794,221		14,529,170
Earnings per share - Basic	$	0.68	$	(0.84	)	$	0.86	$	(1.87	)
Earnings per share - Diluted	$	0.67	$	(0.84	)	$	0.84	$	(1.87	)

(1)For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period.

If the Company had not incurred a loss in the quarter ended June 30, 2022, 14,749,370 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 June 30, 2022 would have included 110,417 shares of non-vested restricted stock units and 95,719 share equivalents for options.

If the Company had not incurred a loss in the six months ended June 30, 2022, 14,728,182 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 six months ended June 30, 2022 would have included 103,670 shares of non-vested restricted stock units and 95,342 share equivalents for options.

The weighted average shares outstanding used to determine dilutive earnings per share does not include 346,667 shares for both the quarter and six months ended June 30, 2023 and 393,333 shares for both the quarter and six months ended June 30, 2022, which were deemed to be anti-dilutive.

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Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

14.Segment Information

During the fourth quarter of 2022, the Company restructured its insurance operations to strengthen its market presence and enhance its focus on GBLI’s core Package Specialty and Targeted Specialty products. As a result, the Company exited four brokerage divisions: Professional Liability, Excess Casualty, Environmental, and Middle Market Property. The Company ceased writing new business and existing renewals were placed in run-off for these four divisions. Based on the decisions to exit these lines of business, the Company changed the way it manages and analyzes its operating results. The chief operating decision makers decided they will be reviewing the specific results of these exited lines within the Company's Exited Lines segment. In addition, a decision was made in the fourth quarter of 2022 to reclassify several smaller reinsurance treaties from Reinsurance Operations to Commercial Specialty. Management believes these segment changes allow users of the Company’s financial statements to better understand the Company's performance, better assess prospects for future net cash flows, and make more informed judgments about the Company as a whole. Accordingly, the segment results for the quarter and six months ended June 30, 2022 have been revised to reflect these changes.

The Company manages its business through two ongoing business segments. Commercial Specialty offers specialty property and casualty products designed for GBLI's Package Specialty and Targeted Specialty product offerings. These product lines are offered primarily in the excess and surplus lines marketplace. Reinsurance Operations provides reinsurance and insurance solutions through brokers and primary writers including insurance and reinsurance companies. The Company also has an Exited Lines segment that contains lines of business that are no longer being written or are in runoff.

The following are tabulations of business segment information for the quarters and six months ended June 30, 2023 and 2022. Corporate information is included to reconcile segment data to the consolidated financial statements.

Quarter Ended June 30, 2023 (Dollars in thousands)	Commercial Specialty		Reinsurance Operations			(1)	Exited Lines			Total
Revenues:
Gross written premiums	$	95,347	$	14,844			$	(91	)	$	110,100
Net written premiums	$	91,896	$	14,844			$	(744	)	$	105,996
Net earned premiums	$	93,408	$	29,585			$	6,163		$	129,156
Other income		266		9				26			301
Total revenues		93,674		29,594				6,189			129,457
Losses and Expenses:
Net losses and loss adjustment expenses		58,662		19,512				(92	)		78,082
Acquisition costs and other underwriting expenses		33,972		10,737				2,392			47,101
Income (loss) from segments	$	1,040	$	(655	)		$	3,889		$	4,274
Unallocated Items:
Net investment income											13,216
Net realized investment losses											(761	)
Other loss											(19	)
Corporate and other operating expenses											(4,990	)
Interest expense											(12	)
Income before income taxes											11,708
Income tax expense											(2,371	)
Net income										$	9,337
Segment assets	$	999,271	$	383,040			$	222,491		$	1,604,802
Corporate assets											169,200
Total assets										$	1,774,002

(1)External business only, excluding business assumed from affiliates.

Quarter Ended June 30, 2022 (Dollars in thousands)	Commercial Specialty		Reinsurance Operations		(1)	Exited Lines			Total
Revenues:
Gross written premiums	$	105,010	$	46,524		$	45,289		$	196,823
Net written premiums	$	99,667	$	46,524		$	20,967		$	167,158
Net earned premiums	$	93,997	$	39,162		$	22,590		$	155,749
Other income (loss)		260		20			(196	)		84
Total revenues		94,257		39,182			22,394			155,833
Losses and Expenses:
Net losses and loss adjustment expenses		52,804		22,793			17,021			92,618
Acquisition costs and other underwriting expenses		35,543		14,553			11,002			61,098
Income (loss) from segments	$	5,910	$	1,836		$	(5,629	)	$	2,117
Unallocated Items:
Net investment income										1,930
Net realized investment losses										(9,916	)
Other income										13
Corporate and other operating expenses										(2,993	)
Interest expense										(410	)
Loss on extinguishment of debt										(3,529	)
Loss before income taxes										(12,788	)
Income tax benefit										626
Net loss										(12,162	)
Segment assets	$	1,002,120	$	326,804		$	384,991		$	1,713,915
Corporate assets										147,864
Total assets									$	1,861,779

(1)External business only, excluding business assumed from affiliates.

Six Months Ended June 30, 2023 (Dollars in thousands)	Commercial Specialty			Reinsurance Operations		(1)	Exited Lines		Total
Revenues:
Gross written premiums	$	190,855		$	38,260		$	3,970	$	233,085
Net written premiums	$	183,130		$	38,260		$	467	$	221,857
Net earned premiums	$	186,590		$	64,432		$	18,206	$	269,228
Other income		533			—			103		636
Total revenues		187,123			64,432			18,309		269,864
Losses and Expenses:
Net losses and loss adjustment expenses		118,781			40,775			6,527		166,083
Acquisition costs and other underwriting expenses		69,498			23,553			7,528		100,579
Income (loss) from segments	$	(1,156	)	$	104		$	4,254	$	3,202
Unallocated Items:
Net investment income										25,224
Net realized investment losses										(2,281	)
Corporate and other operating expenses										(11,358	)
Interest expense										(12	)
Income before income taxes										14,775
Income tax expense										(2,944	)
Net income									$	11,831
Segment assets	$	999,271		$	383,040		$	222,491	$	1,604,802
Corporate assets										169,200
Total assets									$	1,774,002

(1)External business only, excluding business assumed from affiliates.

Six Months Ended June 30, 2022 (Dollars in thousands)	Commercial Specialty		Reinsurance Operations		(1)	Exited Lines			Total
Revenues:
Gross written premiums	$	207,858	$	87,520		$	92,428		$	387,806
Net written premiums	$	197,830	$	87,520		$	41,290		$	326,640
Net earned premiums	$	185,194	$	73,460		$	45,918		$	304,572
Other income		519		—			4			523
Total revenues		185,713		73,460			45,922			305,095
Losses and Expenses:
Net losses and loss adjustment expenses		106,463		43,852			26,998			177,313
Acquisition costs and other underwriting expenses		69,069		26,514			22,207			117,790
Income (loss) from segments	$	10,181	$	3,094		$	(3,283	)	$	9,992
Unallocated Items:
Net investment income										8,522
Net realized investment losses										(35,301	)
Corporate and other operating expenses										(7,653	)
Interest expense										(3,005	)
Loss on extinguishment of debt										(3,529	)
Loss before income taxes										(30,974	)
Income tax benefit										4,039
Net loss									$	(26,935	)
Segment assets	$	1,002,120	$	326,804		$	384,991		$	1,713,915
Corporate assets										147,864
Total assets									$	1,861,779

(1)External business only, excluding business assumed from affiliates.

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New Accounting Pronouncements

6 Months Ended

Jun. 30, 2023

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

15.New Accounting Pronouncements

The Company did not adopt any new accounting pronouncements during the six months ended June 30, 2023.

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Principles of Consolidation and Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business Segments

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.

Intercompany Balances and Transactions

The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and six months ended June 30, 2023 and 2022 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 2022 Annual Report on Form 10-K.

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

Investments

The 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 impairments 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. That new amortized cost basis shall not be adjusted for subsequent recoveries in fair value.

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 $8.3 million and $8.4 million as of June 30, 2023 and December 31, 2022, respectively.

Derivative Instruments

The Company accounts for the interest rate swaps and futures as non-hedge instruments and recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains or losses in the consolidated statements of operations. The Company is ultimately responsible for the valuation of the interest rate swaps. To aid in determining the estimated fair value of the interest rate swaps, the Company relies on the forward interest rate curve and information obtained from a third party financial institution.

Fair Value Measurement

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 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 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.

Statutory Income Tax Rates

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.

Loss Reserves and Prior Year Development

When analyzing 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.

Earnings Per Share

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

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Restructuring (Tables)

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Summary of Charges Incurred by Expense Type and Remaining Liability

The following table summarizes charges incurred by expense type and the remaining liability as of December 31, 2022 and June 30, 2023:

(Dollars in thousands)	Consolidated Statements of Operations Line	Employee Termination			Lease Right of Use Asset Impairment			Total
Charges incurred in 2022	Corporate and other operating expenses	$	2,635		$	—		$	2,635
Charges incurred in 2022	Acquisition costs and other underwriting expenses (1)		—			812			812
Non-cash asset charges			—			(812	)		(812	)
Liability at December 31, 2022			2,635			—			2,635
Charges incurred in 2023	Corporate and other operating expenses		2,121		—				2,121
Cash payments in 2023			(4,249	)		—			(4,249	)
Liability at June 30, 2023		$	507		$	—		$	507

(1) These charges were recorded within the Company's Exited Line segment.

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Investments (Tables)

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost and Estimated Fair Value of Company's Fixed Maturities Securities

The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of June 30, 2023 and December 31, 2022:

(Dollars in thousands)	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of June 30, 2023
Fixed maturities:
U.S. treasuries	$	396,451	$	—	$	12	$	(7,701	)	$	388,762
Obligations of states and political subdivisions		32,272		—		—		(1,666	)		30,606
Mortgage-backed securities		65,086		—		396		(4,816	)		60,666
Asset-backed securities		212,095		—		186		(7,966	)		204,315
Commercial mortgage-backed securities		86,313		—		21		(5,880	)		80,454
Corporate bonds		343,600		—		102		(12,038	)		331,664
Foreign corporate bonds		175,750		—		30		(6,641	)		169,139
Total fixed maturities	$	1,311,567	$	—	$	747	$	(46,708	)	$	1,265,606

(Dollars in thousands)	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of December 31, 2022
Fixed maturities:
U.S. treasuries	$	352,533	$	—	$	—	$	(8,430	)	$	344,103
Obligations of states and political subdivisions		33,471		—		—		(1,876	)		31,595
Mortgage-backed securities		67,560		—		165		(5,609	)		62,116
Asset-backed securities		198,161		—		390		(9,151	)		189,400
Commercial mortgage-backed securities		104,777		—		20		(6,133	)		98,664
Corporate bonds		353,622		—		16		(14,858	)		338,780
Foreign corporate bonds		191,599		—		—		(8,059	)		183,540
Total fixed maturities	$	1,301,723	$	—	$	591	$	(54,116	)	$	1,248,198

Schedule Of Investments In Equity Securities

As of June 30, 2023 and December 31, 2022, the Company’s investments in equity securities consist of the following:

(Dollars in thousands)	June 30, 2023		December 31, 2022
Common stock	$	1,113	$	1,271
Preferred stock		16,040		16,249
Total	$	17,153	$	17,520

Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities

The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at June 30, 2023, 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	$	489,914	$	483,894
Due in one year through five years		428,150		410,281
Due in five years through ten years		17,529		15,287
Due after fifteen years		12,480		10,709
Mortgage-backed securities		65,086		60,666
Asset-backed securities		212,095		204,315
Commercial mortgage-backed securities		86,313		80,454
Total	$	1,311,567	$	1,265,606

Summary of Securities With Gross Unrealized Losses

The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of June 30, 2023. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 5.

	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	$	198,477	$	(3,953	)	$	120,678	$	(3,748	)	$	319,155	$	(7,701	)
Obligations of states and political subdivisions		7,810		(222	)		19,795		(1,444	)		27,605		(1,666	)
Mortgage-backed securities		16,354		(707	)		33,913		(4,109	)		50,267		(4,816	)
Asset-backed securities		91,904		(1,888	)		95,269		(6,078	)		187,173		(7,966	)
Commercial mortgage-backed securities		1,678		(69	)		76,056		(5,811	)		77,734		(5,880	)
Corporate bonds		74,010		(1,175	)		230,601		(10,863	)		304,611		(12,038	)
Foreign corporate bonds		23,100		(154	)		119,948		(6,487	)		143,048		(6,641	)
Total fixed maturities	$	413,333	$	(8,168	)	$	696,260	$	(38,540	)	$	1,109,593	$	(46,708	)

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, 2022. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 5.

	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	$	335,781	$	(7,518	)	$	8,322	$	(912	)	$	344,103	$	(8,430	)
Obligations of states and political subdivisions		27,772		(1,378	)		3,778		(498	)		31,550		(1,876	)
Mortgage-backed securities		51,517		(4,228	)		7,860		(1,381	)		59,377		(5,609	)
Asset-backed securities		97,857		(3,610	)		62,689		(5,541	)		160,546		(9,151	)
Commercial mortgage-backed securities		67,926		(4,072	)		27,907		(2,061	)		95,833		(6,133	)
Corporate bonds		261,123		(8,480	)		71,192		(6,378	)		332,315		(14,858	)
Foreign corporate bonds		150,308		(5,469	)		31,232		(2,590	)		181,540		(8,059	)
Total fixed maturities	$	992,284	$	(34,755	)	$	212,980	$	(19,361	)	$	1,205,264	$	(54,116	)

Schedule of Impairments on Investments

The Company recorded the following impairments on its investment portfolio for the quarters and six months ended June 30, 2023 and 2022 and are related to securities in an unrealized loss position where the Company had an intent to sell the securities:

	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2023		2022 (1)			2023		2022
Fixed maturities:
Impairment related to intent to sell		—		(680	)		—		(26,205	)
Total	$	—	$	(680	)	$	—	$	(26,205	)

(1)In response to a rising interest rate environment, the Company took action early in April 2022 to shorten the duration of its fixed maturities portfolio. In connection with these actions, the Company identified fixed maturities securities with a weighted average life of five years or greater as having an intent to sell resulting in other-than-temporary impairment losses. The majority of which were sold in the 2nd quarter of 2022. Most of the proceeds from the sale of these securities were reinvested into fixed income investments with maturities of two years. As a result of these actions, the Company's book yield rose over time. Book yield was approximately 2.2% at December 31, 2021 and 3.8% at June 30, 2023.

Schedule of Accumulated Other Comprehensive Income, Net of Tax

Accumulated other comprehensive income, net of tax, as of June 30, 2023 and December 31, 2022 was as follows:

(Dollars in thousands)	June 30, 2023			December 31, 2022
Net unrealized gains (losses) from:
Fixed maturities	$	(45,961	)	$	(53,525	)
Foreign currency fluctuations		(328	)		(127	)
Deferred taxes		9,118			10,594
Accumulated other comprehensive income (loss), net of tax	$	(37,171	)	$	(43,058	)

Changes in Accumulated Other Comprehensive Income

The following tables present the changes in accumulated other comprehensive income, net of tax, by components, for the quarters and six months ended June 30, 2023 and 2022:

Quarter Ended June 30, 2023 (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	$	(34,314	)	$	(301	)	$	(34,615	)
Other comprehensive income (loss) before reclassification, before tax		(3,757	)		53			(3,704	)
Amounts reclassified from accumulated other comprehensive income, before tax		587			—			587
Other comprehensive income (loss), before tax		(3,170	)		53			(3,117	)
Income tax (expense) benefit		572			(11	)		561
Ending balance, net of tax	$	(36,912	)	$	(259	)	$	(37,171	)

Quarter Ended June 30, 2022 (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	$	(12,769	)	$	(3	)	$	(12,772	)
Other comprehensive loss before reclassification, before tax		(26,518	)		(287	)		(26,805	)
Amounts reclassified from accumulated other comprehensive income, before tax		9,317			—			9,317
Other comprehensive loss, before tax		(17,201	)		(287	)		(17,488	)
Income tax benefit		3,575			60			3,635
Ending balance, net of tax	$	(26,395	)	$	(230	)	$	(26,625	)

Six Months Ended June 30, 2023 (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	$	(42,958	)	$	(100	)	$	(43,058	)
Other comprehensive (loss) before reclassification, before tax		6,371			(201	)		6,170
Amounts reclassified from accumulated other comprehensive income, before tax		1,193			—			1,193
Other comprehensive income (loss), before tax		7,564			(201	)		7,363
Income tax (expense) benefit		(1,518	)		42			(1,476	)
Ending balance, net of tax	$	(36,912	)	$	(259	)	$	(37,171	)

Six Months Ended June 30, 2022 (Dollars in thousands)	Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income (Loss)
Beginning balance, net of tax	$	6,519		$	(115	)	$	6,404
Other comprehensive loss before reclassification, before tax		(79,267	)		(146	)		(79,413	)
Amounts reclassified from accumulated other comprehensive income, before tax		38,081			—			38,081
Other comprehensive loss, before tax		(41,186	)		(146	)		(41,332	)
Income tax benefit		8,272			31			8,303
Ending balance, net of tax	$	(26,395	)	$	(230	)	$	(26,625	)

Reclassifications Out of Accumulated Other Comprehensive Income

The reclassifications out of accumulated other comprehensive income for the quarters and six months ended June 30, 2023 and 2022 were as follows:

		Amounts Reclassified from Accumulated Other Comprehensive Income
(Dollars in thousands)		Quarters Ended June 30,
Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Consolidated Statements of Operations	2023			2022
Unrealized gains and losses on available for sale securities	Other net realized investment (gains) losses	$	587		$	8,637
	Other than temporary impairment losses on investments		—			680
	Total before tax		587		$	9,317
	Income tax expense (benefit)		(108	)		(1,440	)
	Total reclassifications, net of tax	$	479		$	7,877

		Amounts Reclassified from Accumulated Other Comprehensive Income
(Dollars in thousands)		Six Months Ended June 30,
Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Consolidated Statements of Operations	2023			2022
Unrealized gains and losses on available for sale securities	Other net realized investment (gains) losses	$	1,193		$	11,876
	Other than temporary impairment losses on investments		—			26,205
	Total before tax		1,193		$	38,081
	Income tax expense (benefit)		(227	)		(7,119	)
	Total reclassifications, net of tax	$	966		$	30,962

Components of Net Realized Investment Gains (Losses)

The components of net realized investment gains (losses) for the quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Fixed maturities:
Gross realized gains	$	9		$	456		$	14		$	662
Gross realized losses		(596	)		(9,773	)		(1,207	)		(38,743	)
Net realized gains (losses)		(587	)		(9,317	)		(1,193	)		(38,081	)
Equity securities:
Gross realized gains		209			2			784			1,806
Gross realized losses		(383	)		(2,417	)		(1,872	)		(5,566	)
Net realized gains (losses)		(174	)		(2,415	)		(1,088	)		(3,760	)
Derivatives:
Gross realized gains		—			2,872			—			8,960
Gross realized losses		—			(1,056	)		—			(2,420	)
Net realized gains (losses) (1)		—			1,816			—			6,540
Total net realized investment gains (losses)	$	(761	)	$	(9,916	)	$	(2,281	)	$	(35,301	)

(1)Includes periodic net interest settlements related to the derivatives of $1.1 million for the quarters ended June 30, 2022 and $2.5 million for the six months ended June 30, 2022.

Summary of Calculation of Realized Gains and Losses

The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of June 30, 2023 and 2022:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Net gains (losses) recognized during the period on equity securities	$	(174	)	$	(2,415	)	$	(1,088	)	$	(3,760	)
Less: net gains (losses) recognized during the period on equity securities sold during the period		—			(498	)		18			10,616
Unrealized gains (losses) recognized during the reporting period on equity securities	$	(174	)	$	(1,917	)	$	(1,106	)	$	(14,376	)

Proceeds from Sales and Redemptions of Available-for-Sale Securities

The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the six months ended June 30, 2023 and 2022 were as follows:

	Six Months Ended June 30,
(Dollars in thousands)	2023		2022
Fixed maturities	$	96,890	$	829,205
Equity securities		24		88,726

Schedule of Investment Income

The sources of net investment income for the quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Fixed maturities	$	12,313		$	7,467		$	23,773		$	13,871
Equity securities		257			275			447			609
Cash and cash equivalents		300			99			563			131
Other invested assets		697			(5,300	)		1,164			(4,874	)
Total investment income		13,567			2,541			25,947			9,737
Investment expense		(351	)		(611	)		(723	)		(1,215	)
Net investment income	$	13,216		$	1,930		$	25,224		$	8,522

Schedule of Total Investment Return

The Company’s total investment return on a pre-tax basis for the quarters and six months ended June 30, 2023 and 2022 were as follows:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Net investment income	$	13,216		$	1,930		$	25,224		$	8,522
Net realized investment losses		(761	)		(9,916	)		(2,281	)		(35,301	)
Change in unrealized holding gains (losses)		(3,117	)		(17,488	)		7,363			(41,332	)
Net realized and unrealized investment returns		(3,878	)		(27,404	)		5,082			(76,633	)
Total investment return	$	9,338		$	(25,474	)	$	30,306		$	(68,111	)
Total investment return % (1)		0.7	%		(1.8	%)		2.3	%		(4.8	%)
Average investment portfolio (2)	$	1,345,235		$	1,395,519		$	1,343,024		$	1,429,227

(1)Not annualized.

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

Summary of Estimated Fair Values of Bonds Held on Deposit

The fair values were as follows as of June 30, 2023 and December 31, 2022:

	Estimated Fair Value
(Dollars in thousands)	June 30, 2023		December 31, 2022
On deposit with governmental authorities	$	20,983	$	19,290
Held in trust pursuant to third party requirements		164,845		161,901
Total (1)	$	185,828	$	181,191

(1)Includes cash and cash equivalents of $9.3 million and $3.7 million at June 30, 2023 and December 31, 2022, respectively, with the remainder related to bonds available for sale.

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Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Net Gain (Loss) Included in Consolidated Statements of Operations for Changes in Fair Value of Derivatives and Periodic Net Interest Settlements Under Derivatives

The following table summarizes the net gains included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters and six months ended June 30, 2023 and 2022:

		Quarters Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	Consolidated Statements of Operations Line	2023		2022		2023		2022
Interest rate swap agreements	Net realized investment gains (losses)	$	—	$	1,816	$	—	$	6,540
Total		$	—	$	1,816	$	—	$	6,540

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Company's Invested Assets Measured at Fair Value on Recurring Basis

The following table presents information about the Company’s invested assets measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.

	Fair Value Measurements
As of June 30, 2023 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasuries	$	388,762	$	—	$	—	$	388,762
Obligations of states and political subdivisions		—		30,606		—		30,606
Mortgage-backed securities		—		59,717		949		60,666
Commercial mortgage-backed securities		—		80,454		—		80,454
Asset-backed securities		—		204,315		—		204,315
Corporate bonds		—		329,939		1,725		331,664
Foreign corporate bonds		—		169,139		—		169,139
Total fixed maturities		388,762		874,170		2,674		1,265,606
Equity securities		—		16,040		1,113		17,153
Total assets measured at fair value	$	388,762	$	890,210	$	3,787	$	1,282,759

	Fair Value Measurements
As of December 31, 2022 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasuries	$	344,103	$	—	$	—	$	344,103
Obligations of states and political subdivisions		—		31,595		—		31,595
Mortgage-backed securities		—		61,156		960		62,116
Commercial mortgage-backed securities		—		98,664		—		98,664
Asset-backed securities		—		189,073		327		189,400
Corporate bonds		—		336,767		2,013		338,780
Foreign corporate bonds		—		183,540		—		183,540
Total fixed maturities		344,103		900,795		3,300		1,248,198
Equity securities		—		16,249		1,271		17,520
Total assets measured at fair value	$	344,103	$	917,044	$	4,571	$	1,265,718

Changes in Level 3 Investments Measured at Fair Value on Recurring Basis

The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters and six months ended June 30, 2023 and 2022:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Beginning balance	$	4,335		$	4,288		$	4,571		$	2,769
Total gains (realized / unrealized):
Included in accumulated other comprehensive income		(3	)		23			7			15
Included in earnings attributable to realized gains / losses		(113	)		(102	)		(172	)		(170	)
Transfers into level 3		—			607			—			857
Amortization of bond premium and discount, net		2			2			4			2
Purchases		39			55			113			1,479
Sales		(473	)		(523	)		(736	)		(602	)
Ending balance		3,787			4,350			3,787			4,350
Gains (losses) included in earnings attributable to the change in unrealized gains (losses) related to assets still held at end of reporting period	$	(103	)	$	(9	)	$	(162	)	$	(14	)

Fair Value and Future Funding Commitments Related to These Investments

The following table provides the fair value and future funding commitments related to these investments at June 30, 2023 and December 31, 2022.

	June 30, 2023				December 31, 2022
(Dollars in thousands)	Fair Value		Future Funding Commitment		Fair Value		Future Funding Commitment
European Non-Performing Loan Fund, LP (1)	$	4,406	$	14,214	$	4,832	$	14,214
Mortgage Debt Fund, LP (2)		9,374		—		9,771		—
Global Debt Fund, LP (3)		23,502		—		23,573		—
Total	$	37,282	$	14,214	$	38,176	$	14,214

(1)This limited partnership invests in distressed securities and assets through senior and subordinated, secured and unsecured debt and equity, in both public and private large-cap and middle-market companies. The Company does not have the ability to sell or transfer its limited partnership interest without consent from the general partner. The Company does not have the contractual option to redeem its limited partnership interest but receives distributions based on the liquidation of the underlying assets.

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

(3)This limited partnership invests in performing, stressed or distressed securities and loans across the global fixed income markets. The Company does have the contractual option to withdraw all or a portion of its limited partnership interest by providing notice to the fund.

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Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables (Tables)

6 Months Ended

Jun. 30, 2023

Allowance for Credit Loss [Abstract]

Schedule of Allowance for Credit Losses Related to Premium Receivables

The following table is an analysis of the allowance for expected credit losses related to the Company's premium receivables for the quarters and six months ended June 30, 2023 and 2022:

	Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2023			2022			2023			2022
Beginning balance	$	3,379		$	2,937		$	3,322		$	2,996
Current period provision for expected credit losses		1,369			536			1,717			619
Write-offs		(692	)		(554	)		(983	)		(696	)
Ending balance	$	4,056		$	2,919		$	4,056		$	2,919

Schedule of Allowance for Credit Losses Related to Reinsurance Receivables

The following table is an analysis of the allowance for expected credit losses related to the Company's reinsurance receivables for the quarters and six months ended June 30, 2023 and 2022:

	Quarters Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2023		2022		2023		2022
Beginning balance	$	8,992	$	8,992	$	8,992	$	8,992
Current period provision for expected credit losses		—		—		—		—
Write-offs		—		—		—		—
Recoveries of amounts previously written off		—		—		—		—
Ending balance	$	8,992	$	8,992	$	8,992	$	8,992

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit)

The following table summarizes the components of income tax expense (benefit):

	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2023		2022			2023		2022
Deferred income tax expense (benefit):
U.S. Federal	$	2,371	$	(626	)	$	2,944	$	(4,039	)
Total deferred income tax expense (benefit)		2,371		(626	)		2,944		(4,039	)
Total income tax expense (benefit)	$	2,371	$	(626	)	$	2,944	$	(4,039	)

Differences in Tax Provision for Financial Statement Purposes and Expected Tax Provision at Weighted Average Tax Rate

The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate:

	Quarters Ended June 30,
	2023						2022
(Dollars in thousands)	Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income
Expected tax provision at weighted average tax rate	$	2,459			21.0	%	$	(2,686	)		21.0	%
Adjustments:
Dividend exclusion		(21	)		(0.2	)		(24	)		0.2
Parent income treated as partnership for tax		(146	)		(1.2	)		1,827			(14.3	)
Other		79			0.7			257			(2.0	)
Effective income tax expense (benefit)	$	2,371			20.3	%	$	(626	)		4.9	%

The effective income tax expense rate for the quarter ended June 30, 2023 was 20.3% compared to an effective income tax benefit rate of 4.9% for the quarter ended June 30, 2022. The difference between 2023 and 2022 is primarily due to a change in income or loss at the parent company which is treated as a partnership for tax.

	Six Months Ended June 30,
	2023						2022
(Dollars in thousands)	Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income
Expected tax provision at weighted average tax rate	$	3,103			21.0	%	$	(6,505	)		21.0	%
Adjustments:
Dividend exclusion		(38	)		(0.3	)		(46	)		0.1
Parent (income) loss treated as partnership for tax		(342	)		(2.3	)		2,070			(6.7	)
Other		221			1.5			442			(1.4	)
Effective income tax expense (benefit)	$	2,944			19.9	%	$	(4,039	)		13.0	%

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Liability for Unpaid Losses and Loss Adjustment Expenses (Tables)

6 Months Ended

Jun. 30, 2023

Insurance [Abstract]

Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses

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

	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2023		2022			2023		2022
Balance at beginning of period	$	857,520	$	770,332		$	832,404	$	759,904
Less: Ceded reinsurance receivables		73,665		93,194			73,021		94,443
Net balance at beginning of period		783,855		677,138			759,383		665,461
Incurred losses and loss adjustment expenses related to:
Current year		78,031		96,189			166,032		183,947
Prior years		51		(3,571	)		51		(6,634	)
Total incurred losses and loss adjustment expenses		78,082		92,618			166,083		177,313
Paid losses and loss adjustment expenses related to:
Current year		24,565		29,079			34,184		42,394
Prior years		44,354		30,201			98,264		89,904
Total paid losses and loss adjustment expenses		68,919		59,280			132,448		132,298
Net balance at end of period		793,018		710,476			793,018		710,476
Plus: Ceded reinsurance receivables		73,933		94,185			73,933		94,185
Balance at end of period	$	866,951	$	804,661		$	866,951	$	804,661

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Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Information with Respect to Class A Common Shares that were Surrendered or Repurchased

The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2023:

Period (1)	Total Number of Shares Purchased			Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
January 1-31, 2023		3,302	(3)	$	23.31		—		—
January 1-31, 2023		250,000	(4)	$	25.90		250,000	$	106,604,066
April 1-30, 2023		200,000	(4)	$	28.00		200,000	$	101,004,066
June 1-30, 2023		15,558	(3)	$	33.74		—	$	101,004,066
Total		468,860		$	27.04

(1)Based on settlement date.

(2)Based on the $135 million share repurchase authorization.

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

(4)Purchased as part of the repurchase program announced in October 2022.

The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2022:

Period (1)	Total Number of Shares Purchased			Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
January 1-31, 2022		4,781	(2)	$	25.13		—		—
June 1-30, 2022		11,173	(2)	$	26.28		—		—
Total		15,954		$	25.94	—		—

(1)Based on settlement date.

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

Schedule of Distributions Declared

Distribution payments of $0.25 per common share were declared during the six months ended June 30, 2023 as follows:

Approval Date	Record Date	Payment Date	Total Distributions Declared (Dollars in thousands)
March 2, 2023	March 24, 2023	March 31, 2023	$	3,410
June 1, 2023	June 23, 2023	June 30, 2023		3,375
Various (1)	Various	Various		(21	)
Total			$	6,764

(1)Represents distributions declared on unvested shares, net of forfeitures.

Distribution payments of $0.25 per common share were declared during the six months ended June 30, 2022 as follows:

Approval Date	Record Date	Payment Date	Total Distributions Declared (Dollars in thousands)
March 3, 2022	March 21, 2022	March 31, 2022	$	3,597
June 2, 2022	June 20, 2022	June 30, 2022		3,602
Various (1)	Various	Various		190
Total			$	7,389

(1)Represents distributions declared on unvested shares, net of forfeitures.

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands, except share and per share data)	2023		2022			2023		2022
Numerator:
Net income (loss)	$	9,337	$	(12,162	)	$	11,831	$	(26,935	)
Less: preferred stock distributions		110		110			220		220
Net income (loss) available to common shareholders	$	9,227	$	(12,272	)	$	11,611	$	(27,155	)
Denominator:
Weighted average shares for basic earnings per share		13,478,014		14,543,234			13,573,841		14,529,170
Non-vested restricted stock units		61,579		—			58,571		—
Options		168,391		—			161,809		—
Weighted average shares for diluted earnings per share (1)		13,707,984		14,543,234			13,794,221		14,529,170
Earnings per share - Basic	$	0.68	$	(0.84	)	$	0.86	$	(1.87	)
Earnings per share - Diluted	$	0.67	$	(0.84	)	$	0.84	$	(1.87	)

(1)For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period.

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Summary of Business Segment Information

The following are tabulations of business segment information for the quarters and six months ended June 30, 2023 and 2022. Corporate information is included to reconcile segment data to the consolidated financial statements.

Quarter Ended June 30, 2023 (Dollars in thousands)	Commercial Specialty		Reinsurance Operations			(1)	Exited Lines			Total
Revenues:
Gross written premiums	$	95,347	$	14,844			$	(91	)	$	110,100
Net written premiums	$	91,896	$	14,844			$	(744	)	$	105,996
Net earned premiums	$	93,408	$	29,585			$	6,163		$	129,156
Other income		266		9				26			301
Total revenues		93,674		29,594				6,189			129,457
Losses and Expenses:
Net losses and loss adjustment expenses		58,662		19,512				(92	)		78,082
Acquisition costs and other underwriting expenses		33,972		10,737				2,392			47,101
Income (loss) from segments	$	1,040	$	(655	)		$	3,889		$	4,274
Unallocated Items:
Net investment income											13,216
Net realized investment losses											(761	)
Other loss											(19	)
Corporate and other operating expenses											(4,990	)
Interest expense											(12	)
Income before income taxes											11,708
Income tax expense											(2,371	)
Net income										$	9,337
Segment assets	$	999,271	$	383,040			$	222,491		$	1,604,802
Corporate assets											169,200
Total assets										$	1,774,002

(1)External business only, excluding business assumed from affiliates.

Quarter Ended June 30, 2022 (Dollars in thousands)	Commercial Specialty		Reinsurance Operations		(1)	Exited Lines			Total
Revenues:
Gross written premiums	$	105,010	$	46,524		$	45,289		$	196,823
Net written premiums	$	99,667	$	46,524		$	20,967		$	167,158
Net earned premiums	$	93,997	$	39,162		$	22,590		$	155,749
Other income (loss)		260		20			(196	)		84
Total revenues		94,257		39,182			22,394			155,833
Losses and Expenses:
Net losses and loss adjustment expenses		52,804		22,793			17,021			92,618
Acquisition costs and other underwriting expenses		35,543		14,553			11,002			61,098
Income (loss) from segments	$	5,910	$	1,836		$	(5,629	)	$	2,117
Unallocated Items:
Net investment income										1,930
Net realized investment losses										(9,916	)
Other income										13
Corporate and other operating expenses										(2,993	)
Interest expense										(410	)
Loss on extinguishment of debt										(3,529	)
Loss before income taxes										(12,788	)
Income tax benefit										626
Net loss										(12,162	)
Segment assets	$	1,002,120	$	326,804		$	384,991		$	1,713,915
Corporate assets										147,864
Total assets									$	1,861,779

(1)External business only, excluding business assumed from affiliates.

Six Months Ended June 30, 2023 (Dollars in thousands)	Commercial Specialty			Reinsurance Operations		(1)	Exited Lines		Total
Revenues:
Gross written premiums	$	190,855		$	38,260		$	3,970	$	233,085
Net written premiums	$	183,130		$	38,260		$	467	$	221,857
Net earned premiums	$	186,590		$	64,432		$	18,206	$	269,228
Other income		533			—			103		636
Total revenues		187,123			64,432			18,309		269,864
Losses and Expenses:
Net losses and loss adjustment expenses		118,781			40,775			6,527		166,083
Acquisition costs and other underwriting expenses		69,498			23,553			7,528		100,579
Income (loss) from segments	$	(1,156	)	$	104		$	4,254	$	3,202
Unallocated Items:
Net investment income										25,224
Net realized investment losses										(2,281	)
Corporate and other operating expenses										(11,358	)
Interest expense										(12	)
Income before income taxes										14,775
Income tax expense										(2,944	)
Net income									$	11,831
Segment assets	$	999,271		$	383,040		$	222,491	$	1,604,802
Corporate assets										169,200
Total assets									$	1,774,002

(1)External business only, excluding business assumed from affiliates.

Six Months Ended June 30, 2022 (Dollars in thousands)	Commercial Specialty		Reinsurance Operations		(1)	Exited Lines			Total
Revenues:
Gross written premiums	$	207,858	$	87,520		$	92,428		$	387,806
Net written premiums	$	197,830	$	87,520		$	41,290		$	326,640
Net earned premiums	$	185,194	$	73,460		$	45,918		$	304,572
Other income		519		—			4			523
Total revenues		185,713		73,460			45,922			305,095
Losses and Expenses:
Net losses and loss adjustment expenses		106,463		43,852			26,998			177,313
Acquisition costs and other underwriting expenses		69,069		26,514			22,207			117,790
Income (loss) from segments	$	10,181	$	3,094		$	(3,283	)	$	9,992
Unallocated Items:
Net investment income										8,522
Net realized investment losses										(35,301	)
Corporate and other operating expenses										(7,653	)
Interest expense										(3,005	)
Loss on extinguishment of debt										(3,529	)
Loss before income taxes										(30,974	)
Income tax benefit										4,039
Net loss									$	(26,935	)
Segment assets	$	1,002,120	$	326,804		$	384,991		$	1,713,915
Corporate assets										147,864
Total assets									$	1,861,779

(1)External business only, excluding business assumed from affiliates.

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Principles of Consolidation and Basis of Presentation - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2023 Segment
Organization And Basis Of Presentation [Line Items]
Date of incorporation	Jun. 23, 2020
State of incorporation	DE
Redomestication date	Aug. 28, 2020
Kind of listing	class A common shares
Number of business segments	2

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Restructuring - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	9 Months Ended
	Dec. 31, 2022	Jun. 30, 2023	Jun. 30, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring, description		The Company restructured its insurance operations to strengthen its market presence and enhance its focus on GBLI’s core Package Specialty and Targeted Specialty products. As a result, the Company exited its four brokerage divisions: Professional Liability, Excess Casualty, Environmental, and Middle Market Property. The Company ceased writing new business and existing renewals were placed in run-off for these four divisions. The restructuring plan, which was initiated in the fourth quarter of 2022, was completed in the first quarter of 2023.
Restructuring, initiation date		Dec. 31, 2022
Restructuring, completion date		Mar. 31, 2023
Restructuring cost	$ 3.4	$ 2.1	$ 5.5

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Summary of Charges Incurred by Expense Type and Remaining Liability (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Non-cash asset charges		$ (812)
Cash payments	$ (4,249)
Liability	507	2,635
Corporate and Other Operating Expenses
Restructuring Cost and Reserve [Line Items]
Charges incurred	2,121	2,635
Acquisition costs and other underwriting expenses
Restructuring Cost and Reserve [Line Items]
Charges incurred		812
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Non-cash asset charges		0
Cash payments	(4,249)
Liability	507	2,635
Employee Severance [Member] | Corporate and Other Operating Expenses
Restructuring Cost and Reserve [Line Items]
Charges incurred	2,121	2,635
Employee Severance [Member] | Acquisition costs and other underwriting expenses
Restructuring Cost and Reserve [Line Items]
Charges incurred		0
Lease Right of Use Asset Impairment [Member]
Restructuring Cost and Reserve [Line Items]
Non-cash asset charges		(812)
Cash payments	0
Liability	0	0
Lease Right of Use Asset Impairment [Member] | Corporate and Other Operating Expenses
Restructuring Cost and Reserve [Line Items]
Charges incurred	$ 0	0
Lease Right of Use Asset Impairment [Member] | Acquisition costs and other underwriting expenses
Restructuring Cost and Reserve [Line Items]
Charges incurred		$ 812

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Schedule of Amortized Cost and Estimated Fair Value of Company's Fixed Maturities Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, Amortized Cost	$ 1,311,567	$ 1,301,723
Fixed maturities, Allowance for Expected Credit Losses	0	0
Fixed maturities, Gross Unrealized Gains	747	591
Fixed maturities, Gross Unrealized losses	(46,708)	(54,116)
Fixed maturities, Estimated Fair Value	1,265,606	1,248,198
U.S. Treasuries
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, Amortized Cost	396,451	352,533
Fixed maturities, Allowance for Expected Credit Losses	0	0
Fixed maturities, Gross Unrealized Gains	12	0
Fixed maturities, Gross Unrealized losses	(7,701)	(8,430)
Fixed maturities, Estimated Fair Value	388,762	344,103
Obligations of States and Political Subdivisions
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, Amortized Cost	32,272	33,471
Fixed maturities, Allowance for Expected Credit Losses	0	0
Fixed maturities, Gross Unrealized Gains	0	0
Fixed maturities, Gross Unrealized losses	(1,666)	(1,876)
Fixed maturities, Estimated Fair Value	30,606	31,595
Mortgage Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, Amortized Cost	65,086	67,560
Fixed maturities, Allowance for Expected Credit Losses	0	0
Fixed maturities, Gross Unrealized Gains	396	165
Fixed maturities, Gross Unrealized losses	(4,816)	(5,609)
Fixed maturities, Estimated Fair Value	60,666	62,116
Asset-backed Securities
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, Amortized Cost	212,095	198,161
Fixed maturities, Allowance for Expected Credit Losses	0	0
Fixed maturities, Gross Unrealized Gains	186	390
Fixed maturities, Gross Unrealized losses	(7,966)	(9,151)
Fixed maturities, Estimated Fair Value	204,315	189,400
Commercial Mortgage-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, Amortized Cost	86,313	104,777
Fixed maturities, Allowance for Expected Credit Losses	0	0
Fixed maturities, Gross Unrealized Gains	21	20
Fixed maturities, Gross Unrealized losses	(5,880)	(6,133)
Fixed maturities, Estimated Fair Value	80,454	98,664
Corporate Bonds
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, Amortized Cost	343,600	353,622
Fixed maturities, Allowance for Expected Credit Losses	0	0
Fixed maturities, Gross Unrealized Gains	102	16
Fixed maturities, Gross Unrealized losses	(12,038)	(14,858)
Fixed maturities, Estimated Fair Value	331,664	338,780
Foreign Corporate Bonds
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, Amortized Cost	175,750	191,599
Fixed maturities, Allowance for Expected Credit Losses	0	0
Fixed maturities, Gross Unrealized Gains	30	0
Fixed maturities, Gross Unrealized losses	(6,641)	(8,059)
Fixed maturities, Estimated Fair Value	$ 169,139	$ 183,540

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Schedule of Investments in Equity Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Schedule Of Available For Sale Securities [Line Items]
Equity securities, at fair value	$ 17,153	$ 17,520
Common Stock
Schedule Of Available For Sale Securities [Line Items]
Equity securities, at fair value	1,113	1,271
Preferred Stock
Schedule Of Available For Sale Securities [Line Items]
Equity securities, at fair value	$ 16,040	$ 16,249

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Investments - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2021	Dec. 31, 2022
Schedule Of Available For Sale Securities [Line Items]
Investments in a single issuer as a percentage of shareholders' equity	2.00%		2.40%
Weighted average life of fixed maturities securities	5 years
Maturity period of securities that reinvested to fixed income investments	2 years
Percentage of book yield due to reinvested to fixed income investments	3.80%	2.20%
Fixed maturity securities with market value	$ 0		$ 0
Investments in insurance enhanced bonds	$ 6,200,000
Insurance enhanced bonds as a percentage of total cash and invested assets	0.50%
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds	$ 6,200,000
Variable Interest Entity, Not Primary Beneficiary
Schedule Of Available For Sale Securities [Line Items]
Ownership interest exceeds respective investments	3.00%
One of the Company's variable interest VIE's, invests in distressed securities and assets
Schedule Of Available For Sale Securities [Line Items]
Significant variable interest in carrying value of the non-consolidated VIE	$ 4,400,000		4,800,000
Variable interest entities, maximum exposure to loss	18,600,000		19,000,000
Variable interest entities, maximum exposure to loss	4,400,000		4,800,000
Second VIE that invests in REIT qualifying assets
Schedule Of Available For Sale Securities [Line Items]
Significant variable interest in carrying value of the non-consolidated VIE	9,400,000		9,800,000
Variable interest entities, maximum exposure to loss	9,400,000		9,800,000
Assured Guaranty Corporation
Schedule Of Available For Sale Securities [Line Items]
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds	5,000,000
Ambac Financial Group
Schedule Of Available For Sale Securities [Line Items]
Investments in collateralized mortgage obligations, commercial mortgage-backed securities and taxable municipal bonds	1,200,000
Other Assets
Schedule Of Available For Sale Securities [Line Items]
Accrued interest receivable related to fixed maturities	8,300,000		$ 8,400,000
U.S. Treasuries
Schedule Of Available For Sale Securities [Line Items]
Gross unrealized losses	7,701,000
Obligations of States and Political Subdivisions
Schedule Of Available For Sale Securities [Line Items]
Gross unrealized losses	1,666,000
Mortgage Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Gross unrealized losses	4,816,000
Asset-backed Securities
Schedule Of Available For Sale Securities [Line Items]
Gross unrealized losses	$ 7,966,000
Weighted average credit enhancement	35.00%
Commercial Mortgage-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Gross unrealized losses	$ 5,880,000
Weighted average credit enhancement	46.90%
Corporate Bonds
Schedule Of Available For Sale Securities [Line Items]
Gross unrealized losses	$ 12,038,000.000
Foreign Corporate Bonds
Schedule Of Available For Sale Securities [Line Items]
Gross unrealized losses	$ 6,641,000

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Summary of Amortized Cost and Estimated Fair Value Through Fixed Maturities (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Schedule Of Available For Sale Securities [Line Items]
Due in one year or less, Amortized Cost	$ 489,914
Due in one year through five years, Amortized Cost	428,150
Due in five years through ten years, Amortized Cost	17,529
Due after fifteen years, Amortized Cost	12,480
Fixed maturities, Amortized Cost	1,311,567	$ 1,301,723
Due in one year or less, Estimated Fair value	483,894
Due in one year through five years, Estimated Fair value	410,281
Due in five years through ten years, Estimated Fair value	15,287
Due after fifteen years, Estimated Fair value	10,709
Fixed Maturities, estimated fair value	1,265,606	1,248,198
Mortgage Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	65,086
Fixed maturities, Amortized Cost	65,086	67,560
Estimated Fair value	60,666
Fixed Maturities, estimated fair value	60,666	62,116
Asset-backed Securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	212,095
Fixed maturities, Amortized Cost	212,095	198,161
Estimated Fair value	204,315
Fixed Maturities, estimated fair value	204,315	189,400
Commercial Mortgage-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	86,313
Fixed maturities, Amortized Cost	86,313	104,777
Estimated Fair value	80,454
Fixed Maturities, estimated fair value	$ 80,454	$ 98,664

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Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
U.S. Treasuries
Schedule Of Available For Sale Securities [Line Items]
Total, Gross Unrealized Losses	$ (7,701)
Obligations of States and Political Subdivisions
Schedule Of Available For Sale Securities [Line Items]
Total, Gross Unrealized Losses	(1,666)
Mortgage Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Total, Gross Unrealized Losses	(4,816)
Asset-backed Securities
Schedule Of Available For Sale Securities [Line Items]
Total, Gross Unrealized Losses	(7,966)
Commercial Mortgage-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Total, Gross Unrealized Losses	(5,880)
Corporate Bonds
Schedule Of Available For Sale Securities [Line Items]
Total, Gross Unrealized Losses	(12,038)
Foreign Corporate Bonds
Schedule Of Available For Sale Securities [Line Items]
Total, Gross Unrealized Losses	(6,641)
Fixed Income Securities
Schedule Of Available For Sale Securities [Line Items]
Less than 12 months, Fair Value	413,333	$ 992,284
Less than 12 months, Gross Unrealized Losses	(8,168)	(34,755)
12 months or longer, Fair Value	696,260	212,980
12 months or longer, Gross Unrealized Losses	(38,540)	(19,361)
Total, Fair Value	1,109,593	1,205,264
Total, Gross Unrealized Losses	(46,708)	(54,116)
Fixed Income Securities | U.S. Treasuries
Schedule Of Available For Sale Securities [Line Items]
Less than 12 months, Fair Value	198,477	335,781
Less than 12 months, Gross Unrealized Losses	(3,953)	(7,518)
12 months or longer, Fair Value	120,678	8,322
12 months or longer, Gross Unrealized Losses	(3,748)	(912)
Total, Fair Value	319,155	344,103
Total, Gross Unrealized Losses	(7,701)	(8,430)
Fixed Income Securities | Obligations of States and Political Subdivisions
Schedule Of Available For Sale Securities [Line Items]
Less than 12 months, Fair Value	7,810	27,772
Less than 12 months, Gross Unrealized Losses	(222)	(1,378)
12 months or longer, Fair Value	19,795	3,778
12 months or longer, Gross Unrealized Losses	(1,444)	(498)
Total, Fair Value	27,605	31,550
Total, Gross Unrealized Losses	(1,666)	(1,876)
Fixed Income Securities | Mortgage Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Less than 12 months, Fair Value	16,354	51,517
Less than 12 months, Gross Unrealized Losses	(707)	(4,228)
12 months or longer, Fair Value	33,913	7,860
12 months or longer, Gross Unrealized Losses	(4,109)	(1,381)
Total, Fair Value	50,267	59,377
Total, Gross Unrealized Losses	(4,816)	(5,609)
Fixed Income Securities | Asset-backed Securities
Schedule Of Available For Sale Securities [Line Items]
Less than 12 months, Fair Value	91,904	97,857
Less than 12 months, Gross Unrealized Losses	(1,888)	(3,610)
12 months or longer, Fair Value	95,269	62,689
12 months or longer, Gross Unrealized Losses	(6,078)	(5,541)
Total, Fair Value	187,173	160,546
Total, Gross Unrealized Losses	(7,966)	(9,151)
Fixed Income Securities | Commercial Mortgage-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Less than 12 months, Fair Value	1,678	67,926
Less than 12 months, Gross Unrealized Losses	(69)	(4,072)
12 months or longer, Fair Value	76,056	27,907
12 months or longer, Gross Unrealized Losses	(5,811)	(2,061)
Total, Fair Value	77,734	95,833
Total, Gross Unrealized Losses	(5,880)	(6,133)
Fixed Income Securities | Corporate Bonds
Schedule Of Available For Sale Securities [Line Items]
Less than 12 months, Fair Value	74,010	261,123
Less than 12 months, Gross Unrealized Losses	(1,175)	(8,480)
12 months or longer, Fair Value	230,601	71,192
12 months or longer, Gross Unrealized Losses	(10,863)	(6,378)
Total, Fair Value	304,611	332,315
Total, Gross Unrealized Losses	(12,038)	(14,858)
Fixed Income Securities | Foreign Corporate Bonds
Schedule Of Available For Sale Securities [Line Items]
Less than 12 months, Fair Value	23,100	150,308
Less than 12 months, Gross Unrealized Losses	(154)	(5,469)
12 months or longer, Fair Value	119,948	31,232
12 months or longer, Gross Unrealized Losses	(6,487)	(2,590)
Total, Fair Value	143,048	181,540
Total, Gross Unrealized Losses	$ (6,641)	$ (8,059)

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Schedule of Impairments on Investments (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	[1]	Jun. 30, 2023	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Impairment related to intent to sell	$ 0	$ (680)		$ 0	$ (26,205)
Total	$ 0	$ (680)		$ 0	$ (26,205)

[1] In response to a rising interest rate environment, the Company took action early in April 2022 to shorten the duration of its fixed maturities portfolio. In connection with these actions, the Company identified fixed maturities securities with a weighted average life of five years or greater as having an intent to sell resulting in other-than-temporary impairment losses. The majority of which were sold in the 2nd quarter of 2022. Most of the proceeds from the sale of these securities were reinvested into fixed income investments with maturities of two years. As a result of these actions, the Company's book yield rose over time. Book yield was approximately 2.2% at December 31, 2021 and 3.8% at June 30, 2023.

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Schedule of Accumulated Other Comprehensive Income, Net of Tax (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Fixed maturities	$ (45,961)		$ (53,525)
Foreign currency fluctuations	(328)		(127)
Deferred taxes	9,118		10,594
Accumulated other comprehensive income (loss), net of tax	$ (37,171)	$ (34,615)	$ (43,058)	$ (26,625)	$ (12,772)	$ 6,404

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Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, net of tax	$ (34,615)	$ (12,772)	$ (43,058)	$ 6,404
Other comprehensive income (loss) before reclassification, before tax	(3,704)	(26,805)	6,170	(79,413)
Amounts reclassified from accumulated other comprehensive income, before tax	587	9,317	1,193	38,081
Other comprehensive income (loss), before tax	(3,117)	(17,488)	7,363	(41,332)
Income tax (expense) benefit	561	3,635	(1,476)	8,303
Ending balance, net of tax	(37,171)	(26,625)	(37,171)	(26,625)
Unrealized Gains and Losses on Available for Sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, net of tax	(34,314)	(12,769)	(42,958)	6,519
Other comprehensive income (loss) before reclassification, before tax	(3,757)	(26,518)	6,371	(79,267)
Amounts reclassified from accumulated other comprehensive income, before tax	587	9,317	1,193	38,081
Other comprehensive income (loss), before tax	(3,170)	(17,201)	7,564	(41,186)
Income tax (expense) benefit	572	3,575	(1,518)	8,272
Ending balance, net of tax	(36,912)	(26,395)	(36,912)	(26,395)
Foreign Currency Items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, net of tax	(301)	(3)	(100)	(115)
Other comprehensive income (loss) before reclassification, before tax	53	(287)	(201)	(146)
Amounts reclassified from accumulated other comprehensive income, before tax	0	0	0	0
Other comprehensive income (loss), before tax	53	(287)	(201)	(146)
Income tax (expense) benefit	(11)	60	42	31
Ending balance, net of tax	$ (259)	$ (230)	$ (259)	$ (230)

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Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before tax	$ 587	$ 9,317	$ 1,193	$ 38,081
Income tax expense (benefit)	(2,371)	626	(2,944)	4,039
Unrealized Gains and Losses on Available for Sale Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before tax	587	9,317	1,193	38,081
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications, net of tax	479	7,877	966	30,962
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available for Sale Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net realized investment (gains) losses	587	8,637	1,193	11,876
Other than temporary impairment losses on investments	0	680	0	26,205
Total before tax	587	9,317	1,193	38,081
Income tax expense (benefit)	$ (108)	$ (1,440)	$ (227)	$ (7,119)

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Components of Net Realized Investment Gains (Losses) (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Schedule Of Available For Sale Securities [Line Items]
Total net realized investment gains (losses)		$ (761)	$ (9,916)	$ (2,281)	$ (35,301)
Equity securities, Gross realized gains		209	2	784	1,806
Equity securities, Gross realized losses		(383)	(2,417)	(1,872)	(5,566)
Equity securities, Total net realized investment gains (losses)		(174)	(2,415)	(1,088)	(3,760)
Not Designated as Hedging Instrument | Interest Rate Swap
Schedule Of Available For Sale Securities [Line Items]
Gross realized gains		0	2,872	0	8,960
Gross realized losses		0	(1,056)	0	(2,420)
Total net realized investment gains (losses)	[1]	0	1,816	0	6,540
Fixed Income Securities
Schedule Of Available For Sale Securities [Line Items]
Gross realized gains		9	456	14	662
Gross realized losses		(596)	(9,773)	(1,207)	(38,743)
Total net realized investment gains (losses)		$ (587)	$ (9,317)	$ (1,193)	$ (38,081)

[1] Includes periodic net interest settlements related to the derivatives of $1.1 million for the quarters ended June 30, 2022 and $2.5 million for the six months ended June 30, 2022.

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Components of Net Realized Investment Gains (Losses) (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Schedule Of Available For Sale Securities [Line Items]
Net interest settlements	$ 0	$ 1,816	$ 0	$ 6,540
Interest Rate Swap
Schedule Of Available For Sale Securities [Line Items]
Net interest settlements		$ 1,100	$ 0	$ 2,500	$ 0

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Summary of Calculation of Realized Gains and Losses (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Equity securities, Total net realized investment gains (losses)	$ (174)	$ (2,415)	$ (1,088)	$ (3,760)
Less: net gains (losses) recognized during the period on equity securities sold during the period	0	(498)	18	10,616
Unrealized gains (losses) recognized during the reporting period on equity securities	$ (174)	$ (1,917)	$ (1,106)	$ (14,376)

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Schedule of Proceeds From Sales and Redemptions of Available for Sale Securities (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Fixed maturities	$ 96,890	$ 829,205
Equity securities	$ 24	$ 88,726

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Schedule of Investment Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Schedule Of Available For Sale Securities [Line Items]
Investment income	$ 13,567	$ 2,541	$ 25,947	$ 9,737
Investment expense	(351)	(611)	(723)	(1,215)
Net investment income	13,216	1,930	25,224	8,522
Fixed Income Securities
Schedule Of Available For Sale Securities [Line Items]
Investment income	12,313	7,467	23,773	13,871
Equity Securities
Schedule Of Available For Sale Securities [Line Items]
Investment income	257	275	447	609
Cash and Cash Equivalents
Schedule Of Available For Sale Securities [Line Items]
Investment income	300	99	563	131
Other Invested Assets
Schedule Of Available For Sale Securities [Line Items]
Investment income	$ 697	$ (5,300)	$ 1,164	$ (4,874)

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Schedule of Total Investment Return (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Net investment income		$ 13,216	$ 1,930	$ 25,224	$ 8,522
Net realized investment losses		(761)	(9,916)	(2,281)	(35,301)
Change in unrealized holding gains (losses)		(3,117)	(17,488)	7,363	(41,332)
Net realized and unrealized investment returns		(3,878)	(27,404)	5,082	(76,633)
Total investment return		$ 9,338	$ (25,474)	$ 30,306	$ (68,111)
Total investment return %	[1]	0.70%	(1.80%)	2.30%	(4.80%)
Average investment portfolio	[2]	$ 1,345,235	$ 1,395,519	$ 1,343,024	$ 1,429,227

[1] Not annualized.

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

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Summary of Estimated Fair Values of Bonds Held on Deposit (Detail) - USD ($) $ in Thousands		Jun. 30, 2023	Dec. 31, 2022
Schedule Of Available For Sale Securities [Line Items]
Estimated Fair Value	[1]	$ 185,828	$ 181,191
On Deposit With Governmental Authorities
Schedule Of Available For Sale Securities [Line Items]
Estimated Fair Value		20,983	19,290
Held In Trust Pursuant To Third Party Requirements
Schedule Of Available For Sale Securities [Line Items]
Estimated Fair Value		$ 164,845	$ 161,901

[1] Includes cash and cash equivalents of $9.3 million and $3.7 million at June 30, 2023 and December 31, 2022, respectively, with the remainder related to bonds available for sale.

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Summary of Estimated Fair Values of Bonds Held on Deposit (Parenthetical) (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Cash and cash equivalents	$ 45,447	$ 38,846
Remainder Related to Bonds Available for Sale
Debt Securities, Available-for-Sale [Line Items]
Cash and cash equivalents	$ 9,300	$ 3,700

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Summary of Net Gain (Loss) Included in Consolidated Statements of Operations for Changes in Fair Value of Derivatives and Periodic Net Interest Settlements Under Derivatives (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Net gain (loss) for changes in fair value and net settlements of derivatives	$ 0	$ 1,816	$ 0	$ 6,540
Interest Rate Swap
Derivative Instruments, Gain (Loss) [Line Items]
Net gain (loss) for changes in fair value and net settlements of derivatives		1,100	0	2,500	$ 0
Interest Rate Swap | Net Realized Investment Gains (Losses)
Derivative Instruments, Gain (Loss) [Line Items]
Net gain (loss) for changes in fair value and net settlements of derivatives	$ 0	$ 1,816	$ 0	$ 6,540

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Derivative Instruments - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Outstanding amounts related to the interest rate swap agreements	$ 0	$ 1,816	$ 0	$ 6,540
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Outstanding amounts related to the interest rate swap agreements		$ 1,100	$ 0	$ 2,500	$ 0

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Company's Invested Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	$ 1,265,606	$ 1,248,198
Equity securities	17,153	17,520
U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	388,762	344,103
Obligations of States and Political Subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	30,606	31,595
Mortgage Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	60,666	62,116
Commercial Mortgage-Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	80,454	98,664
Asset-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	204,315	189,400
Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	331,664	338,780
Foreign Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	169,139	183,540
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	1,265,606	1,248,198
Equity securities	17,153	17,520
Total invested assets	1,282,759	1,265,718
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	388,762	344,103
Equity securities	0	0
Total invested assets	388,762	344,103
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	874,170	900,795
Equity securities	16,040	16,249
Total invested assets	890,210	917,044
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	2,674	3,300
Equity securities	1,113	1,271
Total invested assets	3,787	4,571
Fair Value, Measurements, Recurring | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	388,762	344,103
Fair Value, Measurements, Recurring | U.S. Treasuries | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	388,762	344,103
Fair Value, Measurements, Recurring | U.S. Treasuries | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	0	0
Fair Value, Measurements, Recurring | U.S. Treasuries | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	0	0
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	30,606	31,595
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	0	0
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	30,606	31,595
Fair Value, Measurements, Recurring | Obligations of States and Political Subdivisions | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	0	0
Fair Value, Measurements, Recurring | Mortgage Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	60,666	62,116
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	0	0
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	59,717	61,156
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	949	960
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	80,454	98,664
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	0	0
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	80,454	98,664
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	0	0
Fair Value, Measurements, Recurring | Asset-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	204,315	189,400
Fair Value, Measurements, Recurring | Asset-backed Securities | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	0	0
Fair Value, Measurements, Recurring | Asset-backed Securities | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	204,315	189,073
Fair Value, Measurements, Recurring | Asset-backed Securities | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	0	327
Fair Value, Measurements, Recurring | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	331,664	338,780
Fair Value, Measurements, Recurring | Corporate Bonds | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	0	0
Fair Value, Measurements, Recurring | Corporate Bonds | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	329,939	336,767
Fair Value, Measurements, Recurring | Corporate Bonds | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	1,725	2,013
Fair Value, Measurements, Recurring | Foreign Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	169,139	183,540
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	0	0
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	169,139	183,540
Fair Value, Measurements, Recurring | Foreign Corporate Bonds | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total invested assets	$ 0	$ 0

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Changes in Level 3 Investments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Beginning balance	$ 4,335	$ 4,288	$ 4,571	$ 2,769
Included in accumulated other comprehensive income	(3)	23	7	15
Included in earnings attributable to realized gains / losses	(113)	(102)	(172)	(170)
Transfers into level 3	0	607	0	857
Amortization of bond premium and discount, net	2	2	4	2
Purchases	39	55	113	1,479
Sales	(473)	(523)	(736)	(602)
Ending balance	3,787	4,350	3,787	4,350
Gains (losses) included in earnings attributable to the change in unrealized gains (losses) related to assets still held at end of reporting period	$ (103)	$ (9)	$ (162)	$ (14)

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Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Equity Method Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity in the earnings of liability companies or partnerships	$ 0.5	$ (5.3)	$ 0.6	$ (5.4)
Ownership interest exceeds respective investments	3.00%		3.00%
Variable Interest Entity, Not Primary Beneficiary
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ownership interest exceeds respective investments	3.00%		3.00%

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Fair Value and Future Funding Commitments Related to These Investments (Detail) - USD ($) $ in Thousands		Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		$ 37,282	$ 38,176
Future Funding Commitments		14,214	14,214
European Non-Performing Loan Fund, LP | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	[1]	4,406	4,832
Future Funding Commitments	[1]	14,214	14,214
Mortgage Debt Fund, LP | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	[2]	9,374	9,771
Future Funding Commitments		0	0	[2]
Global Debt Fund, LP | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	[3]	23,502	23,573
Future Funding Commitments	[3]	$ 0	$ 0

[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.

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

[3] This limited partnership invests in performing, stressed or distressed securities and loans across the global fixed income markets. The Company does have the contractual option to withdraw all or a portion of its limited partnership interest by providing notice to the fund.

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Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables - Schedule of Allowance for Credit Losses Related to Premium Receivables (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Premium Receivables
Beginning balance	$ 3,379	$ 2,937	$ 3,322	$ 2,996
Current period provision for expected credit losses	1,369	536	1,717	619
Write-offs	(692)	(554)	(983)	(696)
Ending balance	$ 4,056	$ 2,919	$ 4,056	$ 2,919

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Allowance for Expected Credit Losses - Premium Receivables and Reinsurance Receivables - Schedule of Allowance for Credit Losses Related to Reinsurance Receivables (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reinsurance Receivables
Beginning balance	$ 8,992	$ 8,992	$ 8,992	$ 8,992
Current period provision for expected credit losses	0	0	0	0
Write-offs	0	0	0	0
Recoveries of amounts previously written off	0	0	0	0
Ending balance	$ 8,992	$ 8,992	$ 8,992	$ 8,992

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Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Income Tax [Line Items]
Effective income tax expense (benefit) rate	20.30%	4.90%	19.90%	13.00%
Net operating loss carryforwards	$ 98,100,000		$ 98,100,000		$ 116,400,000
Section 163(j) carryforward	$ 0	$ 0	$ 0	$ 0
UNITED STATES
Income Tax [Line Items]
Statutory income tax rates			21.00%
BERMUDA
Income Tax [Line Items]
Statutory income tax rates			0.00%
IRELAND | Non Trading Income
Income Tax [Line Items]
Statutory income tax rates			25.00%
IRELAND | Capital Gain
Income Tax [Line Items]
Statutory income tax rates			33.00%
IRELAND | Trading Income
Income Tax [Line Items]
Statutory income tax rates			12.50%

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Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Deferred income tax expense (benefit):
U.S. Federal	$ 2,371	$ (626)	$ 2,944	$ (4,039)
Total deferred income tax expense (benefit)	2,371	(626)	2,944	(4,039)
Total deferred income tax expense (benefit)	$ 2,371	$ (626)	$ 2,944	$ (4,039)

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Differences in Tax Provision for Financial Statement Purposes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Expected tax provision at weighted average tax rate	$ 2,459	$ (2,686)	$ 3,103	$ (6,505)
Adjustments:
Dividend exclusion	(21)	(24)	(38)	(46)
Parent (income) loss treated as partnership for tax	(146)	1,827	(342)	2,070
Other	79	257	221	442
Total deferred income tax expense (benefit)	$ 2,371	$ (626)	$ 2,944	$ (4,039)
Expected tax provision at weighted average	21.00%	21.00%	21.00%	21.00%
Adjustments:
Dividend exclusion, % of Pre-Tax Income	(0.20%)	0.20%	(0.30%)	0.10%
Parent (income) loss treated as partnership for tax, % of Pre-Tax Income	(1.20%)	(14.30%)	(2.30%)	(6.70%)
Other, % of Pre-Tax Income	0.70%	(2.00%)	1.50%	(1.40%)
Effective income tax expense (benefit)	20.30%	4.90%	19.90%	13.00%

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Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Insurance [Abstract]
Balance at beginning of period	$ 857,520	$ 770,332	$ 832,404	$ 759,904
Less: Ceded reinsurance receivables	73,665	93,194	73,021	94,443
Net balance at beginning of period	783,855	677,138	759,383	665,461
Incurred losses and loss adjustment expenses related to:
Current year	78,031	96,189	166,032	183,947
Prior years	51	(3,571)	51	(6,634)
Total incurred losses and loss adjustment expenses	78,082	92,618	166,083	177,313
Paid losses and loss adjustment expenses related to:
Current year	24,565	29,079	34,184	42,394
Prior years	44,354	30,201	98,264	89,904
Total paid losses and loss adjustment expenses	68,919	59,280	132,448	132,298
Net balance at end of period	793,018	710,476	793,018	710,476
Plus: Ceded reinsurance receivables	73,933	94,185	73,933	94,185
Balance at end of period	$ 866,951	$ 804,661	$ 866,951	$ 804,661

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Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	$ 51	$ (3,571)	$ 51	$ (6,634)
Commercial Specialty
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	5,000	(2,300)	6,500	(400)
Commercial Specialty | Property Lines | Accident Years 2015 and 2018 through 2021
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve		(3,400)
Commercial Specialty | Property Lines | Accident years 2015, 2020 and 2022
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	(1,000)
Commercial Specialty | Property Lines | Accident Years 2015, 2018, 2019 and 2021
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve				(1,500)
Commercial Specialty | Property Lines | Accident Yeas 2015, 2019, 2020, 2021 and 2022
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve			(800)
Commercial Specialty | General Liability | Accident Years Prior to 2006 and 2017 through 2022
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	6,100
Commercial Specialty | General Liability | Accident Years Prior to 2005 and 2005 through 2007 and 2010 through 2021
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve				1,200
Commercial Specialty | General Liability | Accident Years 2005 2010 through 2015, 2016, 2017, 2018, 2019, 2020 and 2021
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve		1,200
Commercial Specialty | General Liability | Accident Years Prior to 2006, 2011, 2013, 2015, 2017 and 2019 through 2022
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve			7,300
Reinsurance Operations
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	1,000	(1,200)	1,000	(1,200)
Reinsurance Operations | General Liability
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	(100)		(100)
Reinsurance Operations | Professional | Accident Year 2022
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	1,100		1,100
Reinsurance Operations | Professional | Accident Year 2016
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve		(1,200)		(1,200)
Exited Lines
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	(5,900)	(100)	(7,400)	(5,000)
Exited Lines | Property Lines | Accident Years 2011, 2015 through 2018 and 2021
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve		2,000
Exited Lines | Property Lines | Accident Years 2014, 2017, 2020, 2021 and 2022
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	1,100
Exited Lines | Property Lines | Accident Years 2011, 2015 through 2017, 2018, 2020 and 2021
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve				(200)
Exited Lines | Property Lines | Accident Years 2014, 2016, 2017, 2020, 2021 and 2022
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve			1,300
Exited Lines | General Liability | Accident Years 2014 through 2017 and 2022
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve			(1,400)
Exited Lines | General Liability | Accident years 2014 through 2017 and 2019
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	(900)
Exited Lines | General Liability | Accident Years 2017, 2018, 2019 and 2021
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve				(600)
Exited Lines | Reinsurance | Accident Years 2012 and 2015 through 2021
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve	$ (6,200)		$ (7,300)
Exited Lines | Reinsurance | Accident Years 2017 through 2021
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Changes in prior year reserve		$ (2,100)		$ (4,300)

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Shareholders' Equity - Additional Information (Detail)			3 Months Ended		6 Months Ended
		Oct. 21, 2022 USD ($)	Jun. 30, 2023 USD ($) Stockholder $ / shares	Jun. 30, 2022 USD ($) $ / shares	Jun. 30, 2023 USD ($) Stockholder $ / shares shares	Jun. 30, 2022 USD ($) $ / shares shares	Jun. 08, 2023 USD ($)	Jan. 03, 2023 USD ($)	Dec. 31, 2022 USD ($)
Equity [Line Items]
Stock repurchase program, expiration date		Dec. 31, 2027
Dividend & distribution payable, per share | $ / shares			$ 0.25	$ 0.25	$ 0.25	$ 0.25
Distribution paid to preferred shareholder			$ 110,000	$ 110,000	$ 220,000	$ 220,000
Accrued distributions			300,000		300,000				$ 1,100,000
Distributions Paid
Equity [Line Items]
Distribution paid to preferred shareholder			100,000	$ 100,000	200,000	$ 200,000
Maximum
Equity [Line Items]
Accrued preferred distributions			$ 100,000		$ 100,000				$ 100,000
Class A Common Shares
Equity [Line Items]
Stock repurchase program, authorized amount		$ 32,000,000					$ 135,000,000	$ 60,000,000
Shares surrendered, repurchased or redeemed | shares	[1]				468,860	15,954
Voting rights					one
Average repurchase cost per share | $ / shares	[1]				$ 27.04	$ 25.94
Number of shareholders | Stockholder			140		140
Class B Common Shares
Equity [Line Items]
Shares surrendered, repurchased or redeemed | shares					0	0
Voting rights					ten
Number of shareholders | Stockholder			2		2
Series A Preferred Interest
Equity [Line Items]
Number of shareholders | Stockholder			1		1

[1] Based on settlement date.

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Information with Respect to Class A Common Shares that were Surrendered or Repurchased (Detail) - Class A Common Shares - USD ($)		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022
Equity, Class of Treasury Stock [Line Items]
Shares repurchased	[1]	468,860	15,954
Average Price Paid Per Share	[1]	$ 27.04	$ 25.94
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	[1]		0
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	[1]		$ 0
January 1-31, 2023 | Employee
Equity, Class of Treasury Stock [Line Items]
Shares repurchased	[1],[2]	3,302
Average Price Paid Per Share	[1]	$ 23.31
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	[1]	0
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	[1],[3]	$ 0
January 1-31, 2023 | $135 Million Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Shares repurchased	[1],[4]	250,000
Average Price Paid Per Share	[1]	$ 25.9
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	[1]	250,000
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	[1],[3]	$ 106,604,066
April 1-30, 2023 | $135 Million Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Shares repurchased	[1],[4]	200,000
Average Price Paid Per Share	[1]	$ 28
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	[1]	200,000
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	[1],[3]	$ 101,004,066
June 1-30, 2023 | $135 Million Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Shares repurchased	[1],[4]	15,558
Average Price Paid Per Share	[1]	$ 33.74
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	[1]	0
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	[1],[3]	$ 101,004,066
January 1-31, 2022 | Employee
Equity, Class of Treasury Stock [Line Items]
Shares repurchased	[1],[2]		4,781
Average Price Paid Per Share	[1]		$ 25.13
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	[1]		0
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	[1]		$ 0
June 1-30, 2022 | Employee
Equity, Class of Treasury Stock [Line Items]
Shares repurchased	[1],[2]		11,173
Average Price Paid Per Share	[1]		$ 26.28
Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	[1]		0
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	[1]		$ 0

[1] Based on settlement date.

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

[3] Based on the $135 million share repurchase authorization.

[4] Purchased as part of the repurchase program announced in October 2022.

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Information with Respect to Class A Common Shares that were Surrendered or Repurchased (Parenthetical) (Details) - USD ($)	Jun. 08, 2023	Jan. 03, 2023	Oct. 21, 2022
Class A Common Shares
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount	$ 135,000,000	$ 60,000,000	$ 32,000,000

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Schedule of Distributions Declared (Detail) - USD ($) $ in Thousands										6 Months Ended
		Jun. 30, 2023	Jun. 01, 2023	Mar. 31, 2023	Mar. 02, 2023	Jun. 30, 2022	Jun. 02, 2022	Mar. 31, 2022	Mar. 03, 2022	Jun. 30, 2023	Jun. 30, 2022
Dividends Payable [Line Items]
Approval Date			Jun. 01, 2023		Mar. 02, 2023		Jun. 02, 2022		Mar. 03, 2022
Record Date			Jun. 23, 2023		Mar. 24, 2023		Jun. 20, 2022		Mar. 21, 2022
Payment Date			Jun. 30, 2023		Mar. 31, 2023		Jun. 30, 2022		Mar. 31, 2022
Payment of dividends						$ 3,602		$ 3,597		$ 6,764	$ 7,389
Payment of dividends		$ 3,375		$ 3,410
Unvested Shares, Net of Forfeitures
Dividends Payable [Line Items]
Approval Date	[1]									Various	Various
Record Date	[1]									Various	Various
Payment Date	[1]									Various	Various
Payment of dividends	[1]									$ (21)
Payment of dividends	[1]										$ 190

[1] Represents distributions declared on unvested shares, net of forfeitures.

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Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Fox Paine Entities
Related Party Transaction [Line Items]
Company's total voting power	83.90%		83.90%
Fox Paine and Company
Related Party Transaction [Line Items]
Management fees	$ 0.8	$ 0.7	$ 1.5	$ 1.4
Prepaid management fees	$ 0.5		$ 0.5		$ 2.1

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Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2014
Commitments and Contingencies [Line Items]
Commitment to purchase alternative investment			$ 50,000
Future Funding Commitments	$ 14,214	$ 14,214
Unfunded Commitments | European Non-Performing Loan Fund, LP
Commitments and Contingencies [Line Items]
Funded commitment amount	35,800
Future Funding Commitments	$ 14,200

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Share-Based Compensation Plans - Additional Information (Detail) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 14, 2023
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options awarded	0	0	0	0
Unvested stock options forfeited	0	0	0	0
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares forfeited	0		0
Restricted Stock | Key Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	0	0
Restricted Stock | Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	22,279	25,760	48,705	50,570
Shares vested			157,139
Weighted average grant date value of shares granted	$ 30.2	$ 25.96	$ 27.63	$ 25.8
Vesting date			Jan. 13, 2023
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares forfeited		0		0
Shares vested	49,628	35,442	75,541	61,522
Restricted Stock Units | Key Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted			0	0
2023 Share Incentive Plan | Class A Common Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorised to issue under share incentive plan					2,500,000

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Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net income (loss)		$ 9,337	$ (12,162)	$ 11,831	$ (26,935)
Less: preferred stock distributions		110	110	220	220
Net income (loss) available to common shareholders		$ 9,227	$ (12,272)	$ 11,611	$ (27,155)
Denominator:
Weighted average shares for basic earnings per share		13,478,014	14,543,234	13,573,841	14,529,170
Weighted average shares for diluted earnings per share	[1]	13,707,984	14,543,234	13,794,221	14,529,170
Basic	[2]	$ 0.68	$ (0.84)	$ 0.86	$ (1.87)
Diluted	[2]	$ 0.67	$ (0.84)	$ 0.84	$ (1.87)
Restricted Stock Units
Denominator:
Non-vested restricted stock, units and options		61,579	0	58,571	0
Stock Options
Denominator:
Non-vested restricted stock, units and options		168,391	0	161,809	0

[1] For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period.

[2] For the quarter and six months ended June 30, 2022, “weighted average shares outstanding – basic” was used to calculate “diluted earnings per share” due to a net loss in each period.

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Earning Per Share - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Incremental shares included in calculation of diluted EPS		14,749,370		14,728,182
Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares excluded from calculation of diluted earnings per share	346,667	393,333	346,667	393,333
Restricted Stock Units Diluted
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Non-vested restricted stock, units and options		110,417		103,670
Stock Options Diluted
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Non-vested restricted stock, units and options		95,719		95,342

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Segment Information - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2023 Segment
Segment Reporting [Abstract]
Number of business segments	2

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Summary of Business Segment Information (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Revenues:
Gross written premiums		$ 110,100	$ 196,823	$ 233,085	$ 387,806
Net written premiums		105,996	167,158	221,857	326,640
Net earned premiums		129,156	155,749	269,228	304,572
Other income (loss)		301	84	636	523
Total revenues		129,457	155,833	269,864	305,095
Losses and Expenses:
Net losses and loss adjustment expenses		78,082	92,618	166,083	177,313
Acquisition costs and other underwriting expenses		47,101	61,098	100,579	117,790
Income (loss) from segments		4,274	2,117	3,202	9,992
Unallocated Items:
Net investment income		13,216	1,930	25,224	8,522
Net realized investment losses		(761)	(9,916)	(2,281)	(35,301)
Other income (loss)		(19)	13
Corporate and other operating expenses		(4,990)	(2,993)	(11,358)	(7,653)
Interest expense		(12)	(410)	(12)	(3,005)
Loss on extinguishment of debt		0	(3,529)	0	(3,529)
Income (loss) before income taxes		11,708	(12,788)	14,775	(30,974)
Income tax benefit (expense)		(2,371)	626	(2,944)	4,039
Net income (loss)		9,337	(12,162)	11,831	(26,935)
Total assets		1,774,002	1,861,779	1,774,002	1,861,779	$ 1,800,775
Segment Assets
Unallocated Items:
Total assets		1,604,802	1,713,915	1,604,802	1,713,915
Corporate Assets
Unallocated Items:
Total assets		169,200	147,864	169,200	147,864
Commercial Specialty
Revenues:
Gross written premiums		95,347	105,010	190,855	207,858
Net written premiums		91,896	99,667	183,130	197,830
Net earned premiums		93,408	93,997	186,590	185,194
Other income (loss)		266	260	533	519
Total revenues		93,674	94,257	187,123	185,713
Losses and Expenses:
Net losses and loss adjustment expenses		58,662	52,804	118,781	106,463
Acquisition costs and other underwriting expenses		33,972	35,543	69,498	69,069
Income (loss) from segments		1,040	5,910	(1,156)	10,181
Unallocated Items:
Total assets		999,271	1,002,120	999,271	1,002,120
Reinsurance Operations
Revenues:
Gross written premiums	[1]	14,844	46,524	38,260	87,520
Net written premiums	[1]	14,844	46,524	38,260	87,520
Net earned premiums	[1]	29,585	39,162	64,432	73,460
Other income (loss)	[1]	9	20	0	(0)
Total revenues	[1]	29,594	39,182	64,432	73,460
Losses and Expenses:
Net losses and loss adjustment expenses	[1]	19,512	22,793	40,775	43,852
Acquisition costs and other underwriting expenses	[1]	10,737	14,553	23,553	26,514
Income (loss) from segments	[1]	(655)	1,836	104	3,094
Unallocated Items:
Total assets	[1]	383,040	326,804	383,040	326,804
Exited Lines
Revenues:
Gross written premiums		(91)	45,289	3,970	92,428
Net written premiums		(744)	20,967	467	41,290
Net earned premiums		6,163	22,590	18,206	45,918
Other income (loss)		26	(196)	103	4
Total revenues		6,189	22,394	18,309	45,922
Losses and Expenses:
Net losses and loss adjustment expenses		(92)	17,021	6,527	26,998
Acquisition costs and other underwriting expenses		2,392	11,002	7,528	22,207
Income (loss) from segments		3,889	(5,629)	4,254	(3,283)
Unallocated Items:
Total assets		$ 222,491	$ 384,991	$ 222,491	$ 384,991

[1] External business only, excluding business assumed from affiliates.