NasdaqGS:GBLI

Stock Analysis Report

Executive Summary

Global Indemnity Limited, through its subsidiaries, provides insurance and reinsurance products and services in the United States.


Snowflake Analysis

Overvalued with worrying balance sheet.


Similar Companies

Share Price & News

How has Global Indemnity's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GBLI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.1%

GBLI

-2.3%

US Insurance

-2.7%

US Market


1 Year Return

0.5%

GBLI

17.7%

US Insurance

21.2%

US Market

Return vs Industry: GBLI underperformed the US Insurance industry which returned 20.4% over the past year.

Return vs Market: GBLI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

GBLIIndustryMarket
7 Day4.1%-2.3%-2.7%
30 Day11.2%-0.04%0.09%
90 Day28.3%3.0%6.9%
1 Year4.0%0.5%20.7%17.7%23.8%21.2%
3 Year-13.2%-18.4%33.7%23.4%48.1%38.6%
5 Year20.5%13.3%72.5%51.8%72.5%53.4%

Price Volatility Vs. Market

How volatile is Global Indemnity's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Global Indemnity undervalued compared to its fair value and its price relative to the market?

0.65x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GBLI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GBLI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: GBLI is unprofitable, so we can't compare its PE Ratio to the Insurance industry average.

PE vs Market: GBLI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GBLI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GBLI is good value based on its PB Ratio (0.6x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is Global Indemnity forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.4%

Forecasted Insurance industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Global Indemnity has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Global Indemnity performed over the past 5 years?

-54.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GBLI is currently unprofitable.

Growing Profit Margin: GBLI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GBLI is unprofitable, and losses have increased over the past 5 years at a rate of -54.7% per year.

Accelerating Growth: Unable to compare GBLI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GBLI is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-11.3%).


Return on Equity

High ROE: GBLI has a negative Return on Equity (-4.57%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Global Indemnity's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GBLI has a low level of unsold assets or inventory.

Debt Coverage by Assets: GBLI's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: GBLI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if GBLI has a sufficient allowance for bad loans.

Low Risk Liabilities: GBLI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GBLI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GBLI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GBLI has an appropriate level of bad loans.


Next Steps

Dividend

What is Global Indemnity's current dividend yield, its reliability and sustainability?

3.10%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: GBLI's dividend (3.37%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: GBLI's dividend (3.37%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, GBLI has been paying a dividend for less than 10 years.

Growing Dividend: GBLI has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: GBLI is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Global Indemnity's salary, the management and board of directors tenure and is there insider trading?

8.3yrs

Average management tenure


CEO

Cynthia Valko (64yo)

8.3yrs

Tenure

US$2,053,704

Compensation

Ms. Cynthia Yvonne Valko has been the Chief Executive Officer at Global Indemnity Limited (formerly, Global Indemnity plc) since September 19, 2011. Ms. Valko served as the Chief Operating Officer and Exec ...


CEO Compensation Analysis

Compensation vs Market: Cynthia's total compensation ($USD2.05M) is about average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Cynthia's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

8.3yrs

Average Tenure

62yo

Average Age

Experienced Management: GBLI's management team is seasoned and experienced (8.3 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

65yo

Average Age

Experienced Board: GBLI's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Saul Fox (65yo)

    Executive Chairman & CEO of Fox Paine

    • Tenure: 16.3yrs
    • Compensation: US$362.36k
  • Jonathan Oltman (45yo)

    Executive Vice President of Commercial Lines

    • Tenure: 0.9yrs
    • Compensation: US$522.33k
  • Cynthia Valko (64yo)

    CEO & Director

    • Tenure: 8.3yrs
    • Compensation: US$2.05m
  • Tom McGeehan (62yo)

    Executive VP of Finance & Operations and CFO

    • Tenure: 11.7yrs
    • Compensation: US$817.07k
  • Steve Green (56yo)

    CEO & President of Global Indemnity Reinsurance Co. Ltd

    • Tenure: 8yrs
    • Compensation: US$321.57k
  • Stephen Ries

    Secretary


    Board Members

    • Saul Fox (65yo)

      Executive Chairman & CEO of Fox Paine

      • Tenure: 16.3yrs
      • Compensation: US$362.36k
    • Jay Brown (70yo)

      Independent Director

      • Tenure: 4.1yrs
      • Compensation: US$181.66k
    • Bruce Lederman (76yo)

      Independent Director

      • Tenure: 4.1yrs
      • Compensation: US$190.34k
    • Seth Gersch (71yo)

      Independent Director

      • Tenure: 11.9yrs
      • Compensation: US$404.71k
    • Cynthia Valko (64yo)

      CEO & Director

      • Tenure: 8.3yrs
      • Compensation: US$2.05m
    • Jason Hurwitz (46yo)

      Independent Director

      • Tenure: 2.3yrs
      • Compensation: US$181.15k
    • James Wehr (62yo)

      Independent Director

      • Tenure: 1.3yrs
      • Compensation: US$19.40k
    • Michele Colucci

      Director

      • Tenure: 0.08yrs

    Company Information

    Global Indemnity Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Global Indemnity Limited
    • Ticker: GBLI
    • Exchange: NasdaqGS
    • Founded: 2003
    • Industry: Property and Casualty Insurance
    • Sector: Insurance
    • Market Cap: US$460.728m
    • Shares outstanding: 14.28m
    • Website: https://www.globalindemnity.ky

    Number of Employees


    Location

    • Global Indemnity Limited
    • 27 Hospital Road
    • George Town
    • Grand Cayman
    • 9008
    • Cayman Islands

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    GBLINasdaqGS (Nasdaq Global Select)YesClass A Ordinary SharesUSUSDDec 2003
    GBLI.ZNasdaqGS (Nasdaq Global Select)7.75% SUB NT 15/08/45 USD25USUSDNov 2016

    Biography

    Global Indemnity Limited, through its subsidiaries, provides insurance and reinsurance products and services in the United States. The company operates through three segments: Commercial Lines, Personal Lines, and Reinsurance Operations. The Commercial Lines segment distributes property, general liability, casualty, and professional lines products, as well as products for vacant, and under renovations and construction dwellings. This segment primarily serves small commercial businesses through a network of wholesale general agents, program administrators, brokers, aggregators, and retail agents. The Personal Lines segment offers specialty personal lines and agricultural coverage, including agriculture, mobile homes, manufactured homes, homeowners, collectibles, and watercraft primarily through retail agents, wholesale general agents, and brokers. The Reinsurance Operations segment provides third party treaty reinsurance solutions to specialty property and casualty insurance, and reinsurance companies; and professional liability products to companies through brokers, as well as on a direct basis. The company was founded in 2003 and is headquartered in George Town, the Cayman Islands. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/28 01:33
    End of Day Share Price2020/01/27 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.