GLOBAL INDEMNITY LIMITED

SCHEDULE II—Condensed Financial Information of Registrant

(Parent Only)

Balance Sheets

(Dollars in thousands, except share data)


	Years Ended December 31, 2016
ASSETS
Fixed maturities	$	3,770
Cash and cash equivalents		91
Intercompany note receivable (1)		750,397
Equity in unconsolidated subsidiaries (1)		292,195
Receivable for Securities		1
Other assets		59

Total assets	$	1,046,513

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Debt	$	96,497
Intercompany notes payable (1)		141,998
Interest Payable		990
Due to affiliates (1)		8,759
Other liabilities		318

Total liabilities	$	248,562

Commitments and contingencies		—
Shareholders’ equity:
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued and outstanding: 13,436,548; B ordinary shares issued and outstanding: 4,133,366		2
Preferred shares, $0.0001 par value, 100,000,000 shares authorized, none issued and outstanding		—
Additional paid-in capital		430,283
Accumulated other comprehensive income, net of tax		(618	)
Retained earnings		368,284

Total shareholders’ equity		797,951

Total liabilities and shareholders’ equity	$	1,046,513

(1)

This item has been eliminated in the Company’s Consolidated Financial Statements.

See Notes to Consolidated Financial Statements included in Item 8.

GLOBAL INDEMNITY PLC

SCHEDULE II—Condensed Financial Information of Registrant

(Parent Only)

Balance Sheet

(Dollars in thousands, except share data)


	Year Ended December 31, 2015
ASSETS
Cash and cash equivalents	$	2,185
Equity in unconsolidated subsidiaries (1)		951,760
Due from affiliates (1)		3,645

Total assets	$	957,590

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Debt	$	96,388
Intercompany notes payable (1)		108,000
Other liabilities		3,221

Total liabilities		207,609

Commitments and contingencies		—
Shareholders’ equity:
Ordinary shares, $0.0001 par value, 900,000,000 ordinary shares authorized; A ordinary shares issued and outstanding: 16,424,546 and 13,313,751, respectively; B ordinary shares issued and outstanding: 4,133,366		3
Deferred shares, €1 par value, 40,000 ordinary shares authorized, issued and outstanding (1)		55
Preferred shares, $0.0001 par value, 100,000,000 shares authorized, none issued and outstanding		—
Additional paid-in capital		529,872
Accumulated other comprehensive income, net of tax		4,078
Retained earnings		318,416
A ordinary shares in treasury, at cost: 3,110,795 shares		(102,443	)

Total shareholders’ equity		749,981

Total liabilities and shareholders’ equity	$	957,590

(1)

This item has been eliminated in the Company’s Consolidated Financial Statements.

See Notes to Consolidated Financial Statements included in Item 8.

GLOBAL INDEMNITY LIMITED

SCHEDULE II—Condensed Financial Information of Registrant (continued)

(Parent Only)

Statement of Operations and Comprehensive Income

(Dollars in thousands)


	Year Ended December 31, 2016
Revenues:
Net investment income	$	28

Total revenues		28
Expenses:
Intercompany interest expense (1)		198
Other expenses		1,833

Loss before equity in earnings of unconsolidated subsidiaries		(2,003	)
Equity in earnings of unconsolidated subsidiaries (1)		51,871

Net income		49,868

Other comprehensive income (loss), net of tax:
Unrealized holding losses		(17	)
Equity in other comprehensive loss of unconsolidated subsidiaries (1)		(4,679	)

Other comprehensive loss, net of tax		(4,696	)

Comprehensive income, net of tax	$	45,172

(1)

This item has been eliminated in the Company’s Consolidated Financial Statements.

See Notes to Consolidated Financial Statements included in Item 8.

GLOBAL INDEMNITY PLC

SCHEDULE II—Condensed Financial Information of Registrant (continued)

(Parent Only)

Statements of Operations and Comprehensive Income

(Dollars in thousands)


	Years Ended December 31,
	2015			2014
Revenues:
Total revenues	$	—		$	—
Expenses:
Intercompany interest expense (1)		1,296			1,296
Other expenses		8,203			4,484

Loss before equity in earnings of unconsolidated subsidiaries		(9,499	)		(5,780	)
Equity in earnings of unconsolidated subsidiaries (1)		50,968			68,636

Net income		41,469			62,856

Other comprehensive income (loss), net of tax:
Equity in other comprehensive loss of unconsolidated subsidiaries (1)		(19,306	)		(30,644	)

Other comprehensive loss, net of tax		(19,306	)		(30,644	)

Comprehensive income, net of tax	$	22,163		$	32,212

(1)

This item has been eliminated in the Company’s Consolidated Financial Statements.

See Notes to Consolidated Financial Statements included in Item 8.

GLOBAL INDEMNITY LIMITED

SCHEDULE II—Condensed Financial Information of Registrant—(continued)

(Parent Only)

Statements of Cash Flows

(Dollars in thousands)


	Year Ended December 31, 2016
Net cash provided by operating activities	$	1

Cash flows from investing activities activities:
Proceeds from disposition of subsidiaries		456
Capital contribution to a subsidiary		(450	)
Proceeds from sale of fixed maturities		84

Net cash provided by investing activities		90

Net change in cash and equivalents		91
Cash and cash equivalents at beginning of period		—

Cash and cash equivalents at end of period	$	91

Supplemental Non-Cash Disclosure:

The Company did not receive any non-cash dividends during the years ended December 31, 2016.

See Notes to Consolidated Financial Statements included in Item 8.

GLOBAL INDEMNITY PLC

SCHEDULE II—Condensed Financial Information of Registrant—(continued)

(Parent Only)

Statement of Cash Flows

(Dollars in thousands)


	Years Ended December 31,
	2015			2014
Net cash provided by (used for) operating activities	$	95,891		$	(1,598	)

Cash flows from financing activities:
Proceeds from issuance of subordinated notes		100,000			—
Debt issuance cost		(3,659	)		—
Purchases of A ordinary shares		(333	)		(139	)
Tax benefit on share-based compensation expense		10			37
Redemption of ordinary shares		(189,770	)		—

Net cash used for financing activities		(93,752	)		(102	)

Net change in cash and equivalents		2,139			(1,700	)
Cash and cash equivalents at beginning of period		46			1,746

Cash and cash equivalents at end of period	$	2,185		$	46

Supplemental Non-Cash Disclosure:

During the year ended December 31, 2014, the Company received a non-cash dividend of $2.7 million and from one of its subsidiaries which was used to repay intercompany balances due. The Company did not receive any non-cash dividends during the year ended December 31, 2015.

See Notes to Consolidated Financial Statements included in Item 8.