Global Indemnity tightens core book as peers post record margins
Global Indemnity Group has reported full-year 2025 results that show a steady improvement in underlying underwriting performance, partially offset by a California wildfire loss in January that weighed on headline profitability.
Common shareholders equity rose to $702.6 million at Dec. 31 from $685.1 million a year earlier, supported by net income and $6.4 million of unrealized fixed income gains. Book value per share was $48.96 at the end of 2025 versus $49.98 at year-end 2024.
Net losses from the California wildfires totaled $15.7 million pretax. Excluding that event, the company's current accident year combined ratio improved in each susccessive period of 2025, reaching 92.2% for the full year compared with 95.4% in 2024. This improvement helped drive a 17.5% increase in pretax adjusted operating contribution to $95.4 million from $81.2 million and lifted adjusted return on equity to 14.7% from 12.7% a year earlier.
By contrast, reported operating income, which includes the wildfire impact and higher corporate costs, declined to $28.2 million from $42.9 million in 2024. Net income available to common shareholders fell to $24.9 million from $42.8 million a year earlier.
On an accident‑year basis, excluding the California wildfires, the combined ratio improved 3.2 points to 92.2% for 2025.
Current accident year underwriting income excluding the wildfire event rose to $32.7 million from $18.8 million in 2024. That measure improved in every period of 2025, ending the year 74% higher than the prior year, reflecting sustained improvement in loss experience.
Operating income excluding the wildfire was $40.2 million, or $2.79 per diluted share, compared with $42.9 million, or $3.10 per share, in 2024. The company said elevated corporate expenses, mainly increased personnel costs and professional fees related to the build‑out of the Katalyx platform and mergers and acquisitions activity, were the primary drivers of the year‑over‑year difference despite better underwriting.
On a reported basis, the calendar year combined ratio was 98.6% versus 95.6% in 2024. The roughly three‑point deterioration reflects an estimated four‑point impact from the wildfire, partly offset by about a one‑point improvement in the calendar year combined ratio excluding that event.
The loss ratio increased to 58.7% from 56.6%, with the wildfire adding around four points and the underlying loss ratio improving by 1.9 points. The expense ratio rose to 39.9% from 39.0%, with the approximate one‑point increase consistent across quarterly periods, reflecting investment in the Katalyx platform.
Set against US specialty peers, Global Indemnity’s 2025 underwriting margin remains thinner, even as its ex‑catastrophe metrics move closer to sector norms.
RLI Corp. reported a 2025 combined ratio of 83.6% and underwriting income of $264 million, marking its 30th consecutive year of underwriting profitability. Kinsale Capital Group delivered a 2025 combined ratio of 75.9% and underwriting income of just under $390 million, reflecting strong performance in excess and surplus lines. W. R. Berkley Corporation, a larger diversified commercial writer, posted a 2025 GAAP combined ratio of 90.7% and a 2025 return on equity above 20%, supported by record underwriting income.
Against that peer set, Global Indemnity’s reported 98.6% combined ratio and mid‑teens adjusted ROE indicate a business still more exposed to volatility and with less expense headroom than the best‑performing specialty carriers. However, its 92.2% current accident year combined ratio excluding the wildfire narrows some of the gap with the low‑90s levels many specialty players target, even if it remains above the sub‑85 ratios reported by top‑quartile carriers such as RLI and Kinsale.
Global Indemnity maintained its regular dividend, returning $20.4 million to shareholders in 2025.
Since its 2003 IPO, the company has returned $649.5 million via $522.2 million in share repurchases and $127.3 million in dividends.
AM Best affirmed Global Indemnity Group’s A (Excellent) financial strength rating and “a” long‑term issuer credit rating for its US insurance subsidiaries in August 2025, citing strongest‑level risk‑adjusted capitalization, a conservative investment portfolio and a profitable core commercial specialty business.
