GEORGE TOWN, Cayman Islands, 2017-03-02 22:28 CET (GLOBE NEWSWIRE) --
Global Indemnity Limited (NASDAQ:GBLI) today reported net income for the year
ended December 31, 2016 of $49.9 million or $2.84 per share. Operating income
was $35.8 million for the year ended December 31, 2016. As of December 31st,
book value per share was $45.42, an increase of 5.7 %, compared to book value
per share of $42.98 at December 31, 2015.
Selected Operating and Balance Sheet Data (Dollars in millions, except per share data)
For the Twelve As of Months December 31, Ended December 31, 2016 2015 2016 2015 Gross Premiums $ 565.8 $ 590.2 Book value per $ 45.42 $ 42.98 Written share Net Premiums $ 470.9 $ 501.2 Shareholders' $ 798.0 $ 749.9 Written equity Cash and invested $ 1,498.1 $ 1,516.3 assets (1) Net income $ 49.9 $ 41.5 Net income per $ 2.84 $ 1.69 (1) Including receivable/(payable) for share securities sold/(purchased) Operating income $ 35.8 $ 44.0 Operating income $ 2.04 $ 1.80 per share Combined ratio analysis: Loss ratio 56.4 54.6 Expense ratio 42.0 39.9 Combined ratio 98.4 94.5
About Global Indemnity Limited and its subsidiaries
Global Indemnity Limited (NASDAQ:GBLI), through its several direct and indirect wholly owned subsidiary insurance and reinsurance companies, provides both admitted and non-admitted specialty property and casualty insurance coverages and individual policyholder coverages in the United States, as well as reinsurance worldwide. Global Indemnity Limited's three primary segments are:
-- United States Based Commercial Lines Operations -- United States Based Personal Lines Operations -- Bermuda Based Reinsurance Operations
For more information, visit the Global Indemnity Limited's website at http://www.globalindemnity.ky.
Forward-Looking Information
The forward-looking statements contained in this press release [1] do not address a number of risks and uncertainties. Investors are cautioned that Global Indemnity's actual results may be materially different from the estimates expressed in, or implied, or projected by, the forward looking statements. These statements are based on estimates and information available to us at the time of this press release. All forward-looking statements in this press release are based on information available to the Global Indemnity as of the date hereof. The foregoing review of factors that could cause actual financial or operating performance to differ materially from expectations is not exhaustive. Please see Global Indemnity's filings with the Securities and Exchange Commission for a discussion of risks and uncertainties which could impact the company and for a more detailed explication regarding forward-looking statements. Global Indemnity does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
1 Disseminated pursuant to the "safe harbor" provisions of Section 21E of the Security Exchange Act of 1934.
Global Indemnity Limited's Combined Ratio for the Twelve Months Ended December 31, 2016 and 2015
The combined ratio is a key measure of insurance profitability. The components comprising the combined ratio are as follows:
Twelve Months Ended December 31, 2016 2015 Loss Ratio: Current Accident Year Excluding Catastrophes 50.5 50.0 Catastrophes 18.1 11.5 Current Accident Year 68.6 61.5 Changes to Prior Accident Year (12.2 ) (6.9 ) Loss Ratio - Calendar Year 56.4 54.6 Expense Ratio 42.0 39.9 Combined Ratio 98.4 94.5
For the twelve months ended December 31st, the calendar year loss ratio increased by 1.8 points to 56.4 in 2016 from 54.6 in 2015.
For the twelve months ended December 31, 2016, the current accident year loss ratio increased by 7.1 points to 68.6 in 2016 compared to 61.5 for the same period in 2015.
-- The current accident year property loss ratio increased 9.8 points to 69.2 in 2016 from 59.4 in 2015 primarily due to higher catastrophe losses experienced during the fourth accident quarter of 2016, particularly from the Tennessee Wildfires. -- The current accident year casualty loss ratio improved by 1.4 points to 66.9 in 2016 from 68.3 in 2015. This improvement is mainly due to a decrease in reported claim frequency reflecting the milder winter experienced in 2016. -- Calendar year results for the twelve months ended December 31, 2016 include a 12.2 point reduction in the loss ratio related to prior accident years, which was primarily driven by lower than expected claims frequency and severity experienced across multiple prior accident years within Commercial Lines, primarily related to general liability, and less than expected emergence on property catastrophe treaties within the Reinsurance Operations.
For the twelve months ended December 31st, the expense ratio increased from 39.9 in 2015 to 42.0 in 2016.
The increase is primarily due to the reduction in earned premiums in 2016 as a result of the quota share arrangement and the purchase of additional reinsurance put in place to mitigate catastrophe exposure as well as the 2015 expense ratio benefitting from accounting adjustments related to the purchase of American Reliable.
Global Indemnity Limited's Gross and Net Premiums Written Results by Segment
Twelve Months Ended December 31, Gross Premiums Written Net Premiums Written 2016 2015 2016 2015 Commercial Lines Operations $ 205,120 $ 214,218 $ 184,911 $ 197,526 Personal Lines Operations 300,888 326,282 226,228 254,035 Reinsurance Operations 59,837 49,733 59,801 49,683 Total $ 565,845 $ 590,233 $ 470,940 $ 501,244
Commercial Lines Operations: Gross premiums written and net premiums written decreased 4.2% and 6.4%, respectively, for the twelve months ended December 31, 2016 as compared to the same period in 2015. The decline in gross premiums written was mainly due to non-renewal of a program. This decline in gross premiums written as well as ceding more premiums in an effort to reduce exposure to catastrophes and large losses contributed to the decrease in net premiums written.
Personal Lines Operations: For the twelve months ended December 31, 2016, gross premiums written and net premiums written decreased 7.8% and 10.9%, respectively, as compared to the same period in 2015. Gross premiums written include business written by American Reliable that is ceded to insurance entities owned by Assurant under a 100% quota share reinsurance agreement in the amount of $35.3 million and $55.8 million for the twelve months ended December 31, 2016 and 2015, respectively. Excluding the business that is ceded 100% to insurance entities owned by Assurant, gross premiums written decreased by 1.8% for the twelve months ended December 31, 2016 as compared to 2015. The reduction in net premiums written is due to purchasing additional reinsurance to reduce catastrophe exposure.
Reinsurance Operations: For the twelve months ended December 31, 2016, gross premiums written and net premiums written increased 20.3% and 20.4%, respectively, as compared to the same period in 2015 primarily due to a new treaty written in the fourth quarter of 2016.
Note: Tables Follow
GLOBAL INDEMNITY LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars and shares in thousands, except per share data) For the Three Months For the Twelve Months Ended December 31, Ended December 31, (Unaudited (Unaudited) ) 2016 2015 2016 2015 Gross premiums written $ 136,591 $ 130,701 $ 565,845 $ 590,233 Net premiums written $ 113,707 $ 106,638 $ 470,940 $ 501,244 Net premiums earned $ 109,472 $ 123,222 $ 468,465 $ 504,143 Net investment income 8,880 8,375 33,983 34,609 Net realized investment 30,778 3,842 21,721 (3,374 ) gains (losses) Other income (1) 742 992 10,345 3,400 Total revenues 149,872 136,431 534,514 538,778 Net losses and loss 48,946 48,498 264,003 275,368 adjustment expenses Acquisition costs and 47,889 51,185 196,650 201,303 other underwriting expenses Corporate and other 4,274 5,007 17,338 24,448 operating expenses Interest expense 2,228 2,278 8,905 4,913 Income before income taxes 46,535 29,463 47,618 32,746 Income tax expense 8,162 2,159 (2,250 ) (8,723 ) (benefit) Net income $ 38,373 $ 27,304 $ 49,868 $ 41,469 Weighted average shares 17,264 20,695 17,247 24,254 outstanding-basic Weighted average shares 17,597 20,957 17,547 24,506 outstanding-diluted Net income per share - $ 2.22 $ 1.32 $ 2.89 $ 1.71 basic Net income per share - $ 2.18 $ 1.30 $ 2.84 $ 1.69 diluted Combined ratio analysis: (2) Loss ratio 44.7 39.4 56.4 54.6 Expense ratio 43.7 41.5 42.0 39.9 Combined ratio 88.4 80.9 98.4 94.5 (1) On September 30, 2016, the Company sold all the outstanding shares of capital stock of one of its wholly owned subsidiaries, United National Specialty Insurance Company, to an unrelated party and recognized a pretax gain of $6.9 million. This transaction will not have an impact on the Company's ongoing business operations. Business previously written by United National Specialty Insurance Company has been and will be written by other companies within the Company's U.S. Insurance Operations. (2) The loss ratio, expense ratio and combined ratio are GAAP financial measures that are generally viewed in the insurance industry as indicators of underwriting profitability. The loss ratio is the ratio of net losses and loss adjustment expenses to net premiums earned. The expense ratio is the ratio of acquisition costs and other underwriting expenses to net premiums earned. The combined ratio is the sum of the loss and expense ratios.
GLOBAL INDEMNITY LIMITED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) ASSETS (Unaudited) December 31, December 31, 2015 2016 Fixed Maturities: Available for sale securities, at fair $ 1,240,031 $ 1,306,149 value (amortized cost: 2016 - $1,241,339 and 2015 - $1,308,333) Equity securities: Available for sale, at fair value (cost: 120,557 110,315 2016 - $119,515 and 2015 - $100,157) Other invested assets 66,121 32,592 Total investments 1,426,709 1,449,056 Cash and cash equivalents 75,110 67,037 Premiums receivable, net 92,094 89,245 Reinsurance receivables, net 143,774 115,594 Funds held by ceding insurers 13,114 16,037 Deferred federal income taxes 40,957 34,687 Deferred acquisition costs 57,901 56,517 Intangible assets 23,079 23,607 Goodwill 6,521 6,521 Prepaid reinsurance premiums 42,583 44,363 Receivable for securities sold - 172 Federal income taxes receivable - 4,828 Other assets 51,104 49,630 Total assets $ 1,972,946 $ 1,957,294 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Unpaid losses and loss adjustment expenses $ 651,042 $ 680,047 Unearned premiums 286,984 286,285 Ceded balances payable 14,675 4,589 Contingent commissions 9,454 11,069 Debt 163,143 172,034 Payable for Securities 3,717 - Federal income taxes payable 219 - Other liabilities 45,761 53,344 Total liabilities 1,174,995 1,207,368 Shareholders' equity: Ordinary shares, $0.0001 par value, 2 3 900,000,000 ordinary shares authorized; A ordinary shares issued: 13,436,548 and 16,424,546 respectively; A ordinary shares outstanding: 13,436,548 and 13,313,751, respectively; B ordinary shares issued and outstanding: 4,133,366 and 4,133,366, respectively Additional paid-in capital 430,283 529,872 Accumulated other comprehensive income, net of (618 ) 4,078 taxes Retained earnings 368,284 318,416 A ordinary shares in treasury, at cost: 0 and - (102,443 ) 3,110,795 shares, respectively Total shareholders' equity 797,951 749,926 Total liabilities and shareholders' $ 1,972,946 $ 1,957,294 equity
GLOBAL INDEMNITY LIMITED SELECTED INVESTMENT DATA (Dollars in millions) Market Value as of (Unaudited) December December 31, 31, 2015 2016 Fixed maturities $ 1,240.0 $ 1,306.1 Cash and cash equivalents 75.1 67.0 Total bonds and cash and cash equivalents 1,315.1 1,373.1 Equities and other invested assets 186.7 143.0 Total cash and invested assets, gross 1,501.8 1,516.1 Receivable (payable) for securities sold/(purchased) (3.7 ) 0.2 Total cash and invested assets, net $ 1,498.1 $ 1,516.3
(Unaudited) Twelve Months Ended December 31, 2016 (a) Net investment income $ 34.0 Net realized investment gains 21.7 Net change in unrealized investment gains and losses (8.2 ) Net realized and unrealized investment returns 13.5 Total investment return $ 47.5 Average total cash and invested assets $ 1,507.2 Total investment return % 3.1 % (a) Amounts in this table are shown on a pre-tax basis.
GLOBAL INDEMNITY LIMITED SUMMARY OF OPERATING INCOME (Unaudited) (Dollars and shares in thousands, except per share data) For the Three Months For the Twelve Months Ended December 31, Ended December 31, 2016 2015 2016 2015 Operating income $ 18,444 $ 24,596 $ 35,781 $ 44,026 Adjustments: Net realized investment 19,929 2,708 14,087 (2,557 ) gains/(losses), net of tax Net income $ 38,373 $ 27,304 $ 49,868 $ 41,469 Weighted average shares 17,264 20,695 17,247 24,254 outstanding - basic Weighted average shares 17,597 20,957 17,547 24,506 outstanding - diluted Operating income per share - $ 1.07 $ 1.19 $ 2.07 $ 1.82 basic Operating income per share - $ 1.05 $ 1.17 $ 2.04 $ 1.80 diluted
Note Regarding Operating Income
Operating income, a non-GAAP financial measure, is equal to net income excluding after-tax net realized investment gains (losses). Operating income is not a substitute for net income determined in accordance with GAAP, and investors should not place undue reliance on this measure.
Media Stephen W. Ries Senior Corporate Counsel (610) 668-3270 sries@global-indemnity.com
Selected Operating and Balance Sheet Data (Dollars in millions, except per share data)
For the Twelve As of Months December 31, Ended December 31, 2016 2015 2016 2015 Gross Premiums $ 565.8 $ 590.2 Book value per $ 45.42 $ 42.98 Written share Net Premiums $ 470.9 $ 501.2 Shareholders' $ 798.0 $ 749.9 Written equity Cash and invested $ 1,498.1 $ 1,516.3 assets (1) Net income $ 49.9 $ 41.5 Net income per $ 2.84 $ 1.69 (1) Including receivable/(payable) for share securities sold/(purchased) Operating income $ 35.8 $ 44.0 Operating income $ 2.04 $ 1.80 per share Combined ratio analysis: Loss ratio 56.4 54.6 Expense ratio 42.0 39.9 Combined ratio 98.4 94.5
About Global Indemnity Limited and its subsidiaries
Global Indemnity Limited (NASDAQ:GBLI), through its several direct and indirect wholly owned subsidiary insurance and reinsurance companies, provides both admitted and non-admitted specialty property and casualty insurance coverages and individual policyholder coverages in the United States, as well as reinsurance worldwide. Global Indemnity Limited's three primary segments are:
-- United States Based Commercial Lines Operations -- United States Based Personal Lines Operations -- Bermuda Based Reinsurance Operations
For more information, visit the Global Indemnity Limited's website at http://www.globalindemnity.ky.
Forward-Looking Information
The forward-looking statements contained in this press release [1] do not address a number of risks and uncertainties. Investors are cautioned that Global Indemnity's actual results may be materially different from the estimates expressed in, or implied, or projected by, the forward looking statements. These statements are based on estimates and information available to us at the time of this press release. All forward-looking statements in this press release are based on information available to the Global Indemnity as of the date hereof. The foregoing review of factors that could cause actual financial or operating performance to differ materially from expectations is not exhaustive. Please see Global Indemnity's filings with the Securities and Exchange Commission for a discussion of risks and uncertainties which could impact the company and for a more detailed explication regarding forward-looking statements. Global Indemnity does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
1 Disseminated pursuant to the "safe harbor" provisions of Section 21E of the Security Exchange Act of 1934.
Global Indemnity Limited's Combined Ratio for the Twelve Months Ended December 31, 2016 and 2015
The combined ratio is a key measure of insurance profitability. The components comprising the combined ratio are as follows:
Twelve Months Ended December 31, 2016 2015 Loss Ratio: Current Accident Year Excluding Catastrophes 50.5 50.0 Catastrophes 18.1 11.5 Current Accident Year 68.6 61.5 Changes to Prior Accident Year (12.2 ) (6.9 ) Loss Ratio - Calendar Year 56.4 54.6 Expense Ratio 42.0 39.9 Combined Ratio 98.4 94.5
For the twelve months ended December 31st, the calendar year loss ratio increased by 1.8 points to 56.4 in 2016 from 54.6 in 2015.
For the twelve months ended December 31, 2016, the current accident year loss ratio increased by 7.1 points to 68.6 in 2016 compared to 61.5 for the same period in 2015.
-- The current accident year property loss ratio increased 9.8 points to 69.2 in 2016 from 59.4 in 2015 primarily due to higher catastrophe losses experienced during the fourth accident quarter of 2016, particularly from the Tennessee Wildfires. -- The current accident year casualty loss ratio improved by 1.4 points to 66.9 in 2016 from 68.3 in 2015. This improvement is mainly due to a decrease in reported claim frequency reflecting the milder winter experienced in 2016. -- Calendar year results for the twelve months ended December 31, 2016 include a 12.2 point reduction in the loss ratio related to prior accident years, which was primarily driven by lower than expected claims frequency and severity experienced across multiple prior accident years within Commercial Lines, primarily related to general liability, and less than expected emergence on property catastrophe treaties within the Reinsurance Operations.
For the twelve months ended December 31st, the expense ratio increased from 39.9 in 2015 to 42.0 in 2016.
The increase is primarily due to the reduction in earned premiums in 2016 as a result of the quota share arrangement and the purchase of additional reinsurance put in place to mitigate catastrophe exposure as well as the 2015 expense ratio benefitting from accounting adjustments related to the purchase of American Reliable.
Global Indemnity Limited's Gross and Net Premiums Written Results by Segment
Twelve Months Ended December 31, Gross Premiums Written Net Premiums Written 2016 2015 2016 2015 Commercial Lines Operations $ 205,120 $ 214,218 $ 184,911 $ 197,526 Personal Lines Operations 300,888 326,282 226,228 254,035 Reinsurance Operations 59,837 49,733 59,801 49,683 Total $ 565,845 $ 590,233 $ 470,940 $ 501,244
Commercial Lines Operations: Gross premiums written and net premiums written decreased 4.2% and 6.4%, respectively, for the twelve months ended December 31, 2016 as compared to the same period in 2015. The decline in gross premiums written was mainly due to non-renewal of a program. This decline in gross premiums written as well as ceding more premiums in an effort to reduce exposure to catastrophes and large losses contributed to the decrease in net premiums written.
Personal Lines Operations: For the twelve months ended December 31, 2016, gross premiums written and net premiums written decreased 7.8% and 10.9%, respectively, as compared to the same period in 2015. Gross premiums written include business written by American Reliable that is ceded to insurance entities owned by Assurant under a 100% quota share reinsurance agreement in the amount of $35.3 million and $55.8 million for the twelve months ended December 31, 2016 and 2015, respectively. Excluding the business that is ceded 100% to insurance entities owned by Assurant, gross premiums written decreased by 1.8% for the twelve months ended December 31, 2016 as compared to 2015. The reduction in net premiums written is due to purchasing additional reinsurance to reduce catastrophe exposure.
Reinsurance Operations: For the twelve months ended December 31, 2016, gross premiums written and net premiums written increased 20.3% and 20.4%, respectively, as compared to the same period in 2015 primarily due to a new treaty written in the fourth quarter of 2016.
Note: Tables Follow
GLOBAL INDEMNITY LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars and shares in thousands, except per share data) For the Three Months For the Twelve Months Ended December 31, Ended December 31, (Unaudited (Unaudited) ) 2016 2015 2016 2015 Gross premiums written $ 136,591 $ 130,701 $ 565,845 $ 590,233 Net premiums written $ 113,707 $ 106,638 $ 470,940 $ 501,244 Net premiums earned $ 109,472 $ 123,222 $ 468,465 $ 504,143 Net investment income 8,880 8,375 33,983 34,609 Net realized investment 30,778 3,842 21,721 (3,374 ) gains (losses) Other income (1) 742 992 10,345 3,400 Total revenues 149,872 136,431 534,514 538,778 Net losses and loss 48,946 48,498 264,003 275,368 adjustment expenses Acquisition costs and 47,889 51,185 196,650 201,303 other underwriting expenses Corporate and other 4,274 5,007 17,338 24,448 operating expenses Interest expense 2,228 2,278 8,905 4,913 Income before income taxes 46,535 29,463 47,618 32,746 Income tax expense 8,162 2,159 (2,250 ) (8,723 ) (benefit) Net income $ 38,373 $ 27,304 $ 49,868 $ 41,469 Weighted average shares 17,264 20,695 17,247 24,254 outstanding-basic Weighted average shares 17,597 20,957 17,547 24,506 outstanding-diluted Net income per share - $ 2.22 $ 1.32 $ 2.89 $ 1.71 basic Net income per share - $ 2.18 $ 1.30 $ 2.84 $ 1.69 diluted Combined ratio analysis: (2) Loss ratio 44.7 39.4 56.4 54.6 Expense ratio 43.7 41.5 42.0 39.9 Combined ratio 88.4 80.9 98.4 94.5 (1) On September 30, 2016, the Company sold all the outstanding shares of capital stock of one of its wholly owned subsidiaries, United National Specialty Insurance Company, to an unrelated party and recognized a pretax gain of $6.9 million. This transaction will not have an impact on the Company's ongoing business operations. Business previously written by United National Specialty Insurance Company has been and will be written by other companies within the Company's U.S. Insurance Operations. (2) The loss ratio, expense ratio and combined ratio are GAAP financial measures that are generally viewed in the insurance industry as indicators of underwriting profitability. The loss ratio is the ratio of net losses and loss adjustment expenses to net premiums earned. The expense ratio is the ratio of acquisition costs and other underwriting expenses to net premiums earned. The combined ratio is the sum of the loss and expense ratios.
GLOBAL INDEMNITY LIMITED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) ASSETS (Unaudited) December 31, December 31, 2015 2016 Fixed Maturities: Available for sale securities, at fair $ 1,240,031 $ 1,306,149 value (amortized cost: 2016 - $1,241,339 and 2015 - $1,308,333) Equity securities: Available for sale, at fair value (cost: 120,557 110,315 2016 - $119,515 and 2015 - $100,157) Other invested assets 66,121 32,592 Total investments 1,426,709 1,449,056 Cash and cash equivalents 75,110 67,037 Premiums receivable, net 92,094 89,245 Reinsurance receivables, net 143,774 115,594 Funds held by ceding insurers 13,114 16,037 Deferred federal income taxes 40,957 34,687 Deferred acquisition costs 57,901 56,517 Intangible assets 23,079 23,607 Goodwill 6,521 6,521 Prepaid reinsurance premiums 42,583 44,363 Receivable for securities sold - 172 Federal income taxes receivable - 4,828 Other assets 51,104 49,630 Total assets $ 1,972,946 $ 1,957,294 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Unpaid losses and loss adjustment expenses $ 651,042 $ 680,047 Unearned premiums 286,984 286,285 Ceded balances payable 14,675 4,589 Contingent commissions 9,454 11,069 Debt 163,143 172,034 Payable for Securities 3,717 - Federal income taxes payable 219 - Other liabilities 45,761 53,344 Total liabilities 1,174,995 1,207,368 Shareholders' equity: Ordinary shares, $0.0001 par value, 2 3 900,000,000 ordinary shares authorized; A ordinary shares issued: 13,436,548 and 16,424,546 respectively; A ordinary shares outstanding: 13,436,548 and 13,313,751, respectively; B ordinary shares issued and outstanding: 4,133,366 and 4,133,366, respectively Additional paid-in capital 430,283 529,872 Accumulated other comprehensive income, net of (618 ) 4,078 taxes Retained earnings 368,284 318,416 A ordinary shares in treasury, at cost: 0 and - (102,443 ) 3,110,795 shares, respectively Total shareholders' equity 797,951 749,926 Total liabilities and shareholders' $ 1,972,946 $ 1,957,294 equity
GLOBAL INDEMNITY LIMITED SELECTED INVESTMENT DATA (Dollars in millions) Market Value as of (Unaudited) December December 31, 31, 2015 2016 Fixed maturities $ 1,240.0 $ 1,306.1 Cash and cash equivalents 75.1 67.0 Total bonds and cash and cash equivalents 1,315.1 1,373.1 Equities and other invested assets 186.7 143.0 Total cash and invested assets, gross 1,501.8 1,516.1 Receivable (payable) for securities sold/(purchased) (3.7 ) 0.2 Total cash and invested assets, net $ 1,498.1 $ 1,516.3
(Unaudited) Twelve Months Ended December 31, 2016 (a) Net investment income $ 34.0 Net realized investment gains 21.7 Net change in unrealized investment gains and losses (8.2 ) Net realized and unrealized investment returns 13.5 Total investment return $ 47.5 Average total cash and invested assets $ 1,507.2 Total investment return % 3.1 % (a) Amounts in this table are shown on a pre-tax basis.
GLOBAL INDEMNITY LIMITED SUMMARY OF OPERATING INCOME (Unaudited) (Dollars and shares in thousands, except per share data) For the Three Months For the Twelve Months Ended December 31, Ended December 31, 2016 2015 2016 2015 Operating income $ 18,444 $ 24,596 $ 35,781 $ 44,026 Adjustments: Net realized investment 19,929 2,708 14,087 (2,557 ) gains/(losses), net of tax Net income $ 38,373 $ 27,304 $ 49,868 $ 41,469 Weighted average shares 17,264 20,695 17,247 24,254 outstanding - basic Weighted average shares 17,597 20,957 17,547 24,506 outstanding - diluted Operating income per share - $ 1.07 $ 1.19 $ 2.07 $ 1.82 basic Operating income per share - $ 1.05 $ 1.17 $ 2.04 $ 1.80 diluted
Note Regarding Operating Income
Operating income, a non-GAAP financial measure, is equal to net income excluding after-tax net realized investment gains (losses). Operating income is not a substitute for net income determined in accordance with GAAP, and investors should not place undue reliance on this measure.
Media Stephen W. Ries Senior Corporate Counsel (610) 668-3270 sries@global-indemnity.com