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Global Indemnity
(NASDAQ:GBLI)
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Rating:69Neutral
Price Target:
$27.00
▼(-5.59% Downside)
Action:Reiterated
Date:08/07/26
The score is anchored by mixed fundamentals: strong balance-sheet conservatism and improving profitability are offset by sharply negative TTM cash flow and historical earnings/cash conversion volatility. Technicals are supportive with the stock above key moving averages and positive momentum, while valuation is favorable due to the moderate P/E and high dividend yield. The earnings call adds a modest positive tilt from strong underwriting and reiterated growth/yield targets, tempered by elevated expenses and execution risk to hit full-year premium growth.
Positive Factors
Conservative balance sheet
Very low leverage gives Global Indemnity substantial financial flexibility and reduces refinancing risk. A conservative balance sheet can support underwriting capacity, product launches, and capital deployment while helping the company absorb volatility in claims or investment results over the next several quarters.
Negative Factors
Volatile and recently negative cash generation
The sharp reversal to negative operating and free cash flow raises questions about earnings quality and cash conversion. Although prior periods demonstrate cash-generation ability, continued volatility could constrain internally funded growth and make capital allocation more dependent on fluctuating insurance cash flows.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage gives Global Indemnity substantial financial flexibility and reduces refinancing risk. A conservative balance sheet can support underwriting capacity, product launches, and capital deployment while helping the company absorb volatility in claims or investment results over the next several quarters.
Read all positive factors
Global Indemnity (GBLI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$356.50M
Dividend Yield5.75%
Average Volume (3M)7.85K
Price to Earnings (P/E)10.3
Beta (1Y)0.22
Revenue Growth3.83%
EPS Growth18.23%
CountryUS
Employees286
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)2.36
Shares Outstanding10,847,002
10 Day Avg. Volume10,144
30 Day Avg. Volume7,852
Financial Highlights & Ratios
PEG Ratio-0.37
Price to Book (P/B)0.57
Price to Sales (P/S)0.89
P/FCF Ratio44.43
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue0.82
Enterprise Value/Gross Profit3.17
Enterprise Value/Ebitda7.28
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.69
Revenue Forecast (FY)$437.40M
Global Indemnity Business Overview & Revenue Model
Company Description
Global Indemnity Group, LLC, an international entity, provides specialized property and casualty insurance as well as reinsurance services through its subsidiary companies. The organization's operations are divided across three primary business ar...
How the Company Makes Money
Global Indemnity primarily makes money through (1) insurance underwriting income and (2) investment income from its insurance float.
1) Insurance underwriting (premiums minus losses and expenses)
- Premium revenue: The company collects premiums f...
Global Indemnity Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call presents a mix of solid underlying operating performance and clear execution investments. Underwriting and loss metrics are strong (improved loss ratio, modest underwriting income improvement, segment-level growth like Valyn Re and Collectibles), investment yields are moving higher, and the company maintains a sizable discretionary capital position. Offsetting these positives are an elevated expense ratio driven by significant technology and platform investments, weakness in Specialty Products (terminated programs), and the need for meaningful second-half premium growth to meet the company’s full‑year GWP target amid a more competitive E&S market. Management provided timelines to normalize expenses (accelerating in 2027, nearer to normal by late 2028) and reiterated focus on disciplined, profitable growth.Positive Updates
Strong Loss and Underwriting Performance
Accident year combined ratio of 94.7% for Q2 and 94.8% through June, producing underwriting income of $5.8M for the quarter and $11.2M year-to-date. Loss ratio for the quarter was 53.8%, a 1.8-point improvement versus 2025, with favorable catastrophe experience and strong non-catastrophe performance.
Negative Updates
Elevated Expense Ratio from Tech and Build-Out
Expense ratio remained high at ~40.9% for the quarter, about 4.5 points above long-term target levels due to ongoing investments in Catalyx, Kaleidoscope and related personnel. Management expects expense ratio improvement to accelerate in 2027 with normalization by late 2028 and a goal to return to roughly 36% within two years.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Loss and Underwriting Performance
Accident year combined ratio of 94.7% for Q2 and 94.8% through June, producing underwriting income of $5.8M for the quarter and $11.2M year-to-date. Loss ratio for the quarter was 53.8%, a 1.8-point improvement versus 2025, with favorable catastrophe experience and strong non-catastrophe performance.
Read all positive updates
Company Guidance
The company reiterated guidance that Belmont Core gross written premium should finish the year approximately 15% above 2025, while investment book yield is expected to approach 4.9% by year‑end; key metrics this quarter included an Accident Year Combined Ratio of 94.7% (94.8% through June) producing underwriting income of $5.8M for the quarter and $11.2M year‑to‑date, a loss ratio of 53.8% (1.8 points better than 2025) and an elevated expense ratio of 40.9% (about 4.5 points above long‑term targets, with a goal to return to roughly 36% within two years), Q2 net income of $11.1M (+8% vs. $10.3M), Belmont Core GWP of $117M for the quarter (+7% YoY) and $214M through H1 (+3% YoY), divisional GWP details including Valyn Re up 79% to $21.5M Q2 (43% to $32.7M H1, 22 treaties in force), Collectibles up 14% to $4.8M Q2 ($9.4M H1), Vacant Express $13.1M Q2 ($24.5M H1), Penn‑America +2% in Q2, Specialty Products down 36% to $7.8M Q2 ($15.5M H1, excluding terminated business ongoing programs down 1%), investment income of $16.4M in Q2 (or $14.1M ex‑LPs), fixed income book yield 4.42% and duration 1.08 years as of June 30 (vs. 4.27% and 1.01 at 12/31/25) after reinvesting $177M of maturities at a 5.45% average, average credit quality AA‑, Sayata submissions +8.5% with >22% reduction in average daily ticket volume, Penn‑America Pro targeted for September go‑live, Kaleidoscope expansion into Vacant Express and Collectibles with broader partner API work planned in 2027, discretionary capital of $302M at June 30, and adjusted operating ROEs nearing 13%.Global Indemnity Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
80
Positive
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 456.21M | 450.10M | 441.19M | 528.13M | 628.53M | 678.27M |
| Gross Profit | 117.55M | 65.00M | 80.65M | 56.36M | 32.92M | 70.46M |
| EBITDA | 51.18M | 38.96M | 60.72M | 39.17M | 13.37M | 53.70M |
| Net Income | 34.31M | 25.33M | 43.24M | 25.43M | -850.00K | 29.35M |
Balance Sheet | ||||||
| Total Assets | 1.72B | 1.72B | 1.73B | 1.73B | 1.80B | 2.01B |
| Cash, Cash Equivalents and Short-Term Investments | 97.52B | 1.15B | 1.20B | 1.04B | 1.29B | 1.28B |
| Total Debt | 7.73M | 8.33M | 10.37M | 12.73M | 15.70M | 145.51M |
| Total Liabilities | 1.01B | 1.01B | 1.04B | 1.08B | 1.17B | 1.31B |
| Stockholders Equity | 710.90M | 706.59M | 689.15M | 648.75M | 626.23M | 706.62M |
Cash Flow | ||||||
| Free Cash Flow | -34.02M | 9.06M | 38.84M | 42.89M | 44.24M | 90.80M |
| Operating Cash Flow | -34.02M | 9.06M | 38.84M | 42.89M | 44.24M | 90.80M |
| Investing Cash Flow | 84.70M | 59.91M | -39.51M | -16.33M | 80.13M | -64.52M |
| Financing Cash Flow | -20.51M | -20.44M | -20.36M | -27.36M | -163.80M | -15.36M |
Global Indemnity Technical Analysis
Negative
28.60
Price Trends
27.25
Negative
26.56
Negative
26.92
Negative
Market Momentum
-0.98
Positive
36.01
Neutral
23.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GBLI, the sentiment is Negative. The current price of 28.6 is above the 20-day moving average (MA) of 26.67, above the 50-day MA of 27.25, and above the 200-day MA of 26.92, indicating a bearish trend. The MACD of -0.98 indicates Positive momentum. The RSI at 36.01 is Neutral, neither overbought nor oversold. The STOCH value of 23.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GBLI.
Global Indemnity Risk Analysis
Global Indemnity disclosed 41 risk factors in its most recent earnings report. Global Indemnity reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Global Indemnity Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.22B | 5.56 | 38.78% | 1.75% | 3.96% | 234.26% | |
79 Outperform | $267.81M | 7.46 | 0.11% | 1.14% | 34.04% | 15.59% | |
71 Outperform | $669.14M | 9.27 | 11.01% | 4.11% | -3.10% | -18.44% | |
69 Neutral | $356.50M | 10.32 | 0.02% | 5.75% | 3.83% | 18.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $452.17M | 4.49 | 30.43% | 6.59% | 3.29% | 21.74% | |
54 Neutral | $305.87M | 39.76 | 3.18% | ― | -13.85% | 354.69% |
* Financial Sector Average
GBLI
Global Indemnity
24.35
-3.61
-12.90%
DGICA
Donegal Group
18.27
-0.41
-2.21%
KINS
Kingstone Companies
18.50
4.38
31.05%
UVE
Universal Insurance Holdings
43.95
14.86
51.10%
ACIC
American Coastal Insurance
9.33
-1.82
-16.29%
NODK
NI Holdings
14.99
1.85
14.08%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.