Global Indemnity’s new chief executive, Jessica Buss (pictured), has acknowledged a weaker third quarter in her first results announcement, as the specialty insurer chose to give up wholesale property business rather than match competitors’ rate cuts.
Net income fell to $8.9 million, or $0.61 per share, from $12.5 million, or $0.86 per share, a year earlier. Current accident year underwriting income dropped to $5.6 million from $10.2 million, and the current accident year combined ratio was 94.8%. The loss ratio rose to 53.0% from 50.1%, in what the company called a quarter of unusually few severe property losses last year.
“The third quarter came in softer, as we held to our underwriting standards while competitors cut property rates, and we owe our shareholders a plain account of that,” Buss said. “We also owe them a plan.”
Buss was named CEO this week, replacing Jay Brown.
Belmont Core gross written premiums fell 5.5% to $102.6 million in the quarter. The biggest decline was in wholesale commercial, down 8.6% to $62.1 million, where Global Indemnity said it maintained pricing and return standards in competitive conditions, especially in property. Overall rates in the line fell 3% in the quarter.
Other areas grew. Collectibles premiums rose 14% to $5.8 million and Vacant Express rose 1% to $11.5 million. Assumed E&S reinsurance was flat at $15.5 million, but up 25% for the first nine months on new treaties.
The nine-month picture is stronger. Net income rose to $24.2 million from $18.9 million, and current accident year underwriting income rose to $16.9 million from $5.4 million. Last year’s figure included $15.8 million of California wildfire losses.
Buss set out ambitious targets. She said Katalyx, the company’s distribution platform, would expand its distribution substantially over the next five years, and that she had already set that expansion in motion for 2027. Global Indemnity also plans to make its Kaleidoscope underwriting technology available to wholesalers, agents and underwriters, and to make its Belmont carrier business more efficient.
She said many leading E&S wholesalers are keen to work with Katalyx and Kaleidoscope. The company has no debt, and AM Best affirmed its A (Excellent) rating in August.
Global Indemnity also began lengthening the duration of its investment portfolio in September, moving out of US Treasuries into higher-yielding securities and lifting its fixed income book yield to 4.8% from 4.3% at the end of 2025.
For wholesale brokers, Global Indemnity’s results are a clear example of a carrier choosing discipline over volume in a softening property market. Brokers placing E&S property may find it less competitive on price than some rivals, but more likely to keep a stable appetite through the cycle.
Buss’s growth plans point the other way over time. A push to expand Katalyx’s wholesale distribution and roll out Kaleidoscope to partners suggests Global Indemnity will be actively courting wholesalers in 2027. The challenge will be growing quickly in a softening E&S market without loosening the underwriting standards Buss has defended in her first results.
