Property and casualty insurer Global Indemnity recorded gross written premiums (GWP) of $338.8 million over the first six months of 2021, the highest level for any six-month period since the company became publicly traded.
Despite the 5.8% increase in GWP, underwriting income over the H1 period totalled just $0.3 million, compared to $32.3 million in 2020, leaving the company’s combined ratio at 100.2% versus 89.0% last year.
But Global Indemnity still reported net income of $11.7 million thanks to improvements in investment income and realized gains.
Investment income totalled $20.5 million in H1 2021 compared to $7.8 million in 2020, due to increased returns from alternative investments offset by a decrease in yield within the fixed maturities portfolio.
Likewise, the insurer saw realized gains of $7.7 million for the period, compared to a realized loss of $29.7 million last year, when financial markets were disrupted by the COVID-19 pandemic.
For the three-month Q2 period, Global Indemnity reported net income of $6.3 million, as GWP increased 6.5% to $175.2 million.
Underwriting income during this time was $1.8 million compared to $21.7 million in 2020, which resulted in a combined ratio of 99.2%, compared to 85.2% for Q2 2020.
Excluding prior year loss development, underwriting income increased to $7.3 million in 2021 from $2.4 million in 2020 due to lower property catastrophe losses partially offset by higher severity on casualty and non-catastrophe property claims.
2021 also included strengthening of prior accident year loss reserves of $5.5 million primarily due to an increase in severity from a 2018 Hurricane Michael claim.
Global Indemnity also turned investment income of $10.6 million in Q2 and saw realized gains of $3.8 million.