Global Indemnity Group, LLC

Net income was $11.1 million in Q2 2026, up 8% from $10.3 million a year ago; first-half net income was $15.3 million versus $6.4 million in 2025, though Brian Riley later also cited first-half net income of $28.6 million versus $29.5 million in 2025 on the investment-income discussion. Investment income was $16.4 million in Q2 versus $14.7 million last year, including a $2.3 million mark-to-market adjustment on limited partnership interests; excluding LP income, investment income was $14.1 million versus $15.3 million. Accident year underwriting income was $5.8 million in Q2, up 3%, on a 94.7% combined ratio; the loss ratio was 53.8% and the expense ratio was 40.9%. Belmont Core gross written premium was $117 million, up 7% year over year, and $214 million year-to-date, up 3%. Management continues to expect full-year Belmont Core gross written premium to finish approximately 15% above 2025 levels, and investment portfolio book yield is targeted to reach 4.9% by December 31, 2026.

Joseph Brown said the core insurance business remains strong, with favorable catastrophe experience, solid non-catastrophe results, and disciplined underwriting despite a more competitive E&S market. He stressed that the company is not chasing volume and is leaning into areas with better growth and lower cyclicality, including Valyn Re, Collectibles, and new ventures such as Aging Services and Specialty Casualty. He also framed Catalyx and Kaleidoscope as foundational investments that should improve efficiency, AI-assisted decision-making, and scalability over time.

Brian Riley highlighted Q2 net income of $11.1 million, a 53.8% loss ratio, a 40.9% expense ratio, and $16.4 million of investment income, including the reversal of a prior-quarter $2.3 million mark-to-market loss on limited partnership interests. He said the fixed-income portfolio book yield rose to 4.42% with a 1.08-year duration as of June 30, from 4.27% at year-end, helped by reinvesting $177 million of maturities at 5.45%, and the company is targeting 4.9% by year-end. Riley also said discretionary capital was $302 million and emphasized that book reserves remain solidly above current actual indications.

Analysts focused on when elevated expenses would normalize, with management saying the expense build is now near a pivot point and that the goal is to get back roughly to the 36% range within two years, rather than only in 2028. Questions also covered the $2.3 million limited partnership mark-to-market item, which management said fully reversed in Q2, leaving the year-to-date fair value change at zero, and that the position is expected to be exited by year-end. On capital allocation, management said the board has not changed its view on buybacks, and on geographic exposure they said the company is essentially 100% domestic in the U.S.; on AI, management said deployment is early but already showing efficiency gains and will become more integrated over the next one to two years.