Global Indemnity Group, LLC (NYSE:GBLI) Q1 2023 Earnings Conference Call May 10, 2023 11:00 AM ET

Company Participants

Stephen Ries - Investor Relations

Jay Brown - Chief Executive Officer

Tom McGeehan - Chief Financial Officer

Conference Call Participants

Tom Kerr - Zacks Small-Cap Research

Jeff Bronchick - Cove Street Capital

Anthony Mottolese - Dowling & Partners

Operator

Hello. Thank you for standing by. My name is Jeremy, and I will be your conference operator today. At this time, I would like to welcome everyone to the GBLI First Quarter 2023 Earnings Call. [Operator Instructions] I would now like to turn the call over to Stephen Ries. You may begin.

Stephen Ries

Thank you, Jeremy. Today’s conference call is being recorded. GBLI’s remarks may contain forward-looking statements. Some of the forward-looking statements can be identified by the use of forward-looking words including about limitation, beliefs, expectations or estimates. We caution you that such forward-looking statements should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will, in fact, be achieved. Please refer to our annual report on Form 10-K and our other filings met with the SEC for a description of the business environment in which we operate, and the important factors that may materially affect our results. Global Indemnity Group LLC is not under any obligation and expressly disclaims any such obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

It is now my pleasure to turn the call over to Mr. Jay Brown, Chief Executive Officer of Global Indemnity.

Jay Brown

Thank you, Steve. Good morning, and thank you, everyone, for taking the time this morning to join us for our quarterly results call.

Before I turn it over to our Chief Financial Officer, Tom McGeehan, who will provide a detailed explanation of our first quarter financial results, I would like to briefly reiterate the background on the pivotal changes that have been implemented to position GBLI going forward. It’s been 6 months since I joined the company as CEO. And although a lot has transpired during that time period, it has really been a continuation of a process that began in 2021 to alter the composition of our company to improve the returns for our shareholders.

In 2021, we were successful in selling the renewal rights to our manufactured home and dwelling business, and significantly reduced the amount of our property brokerage unit. This was followed in 2022 by the sale of the renewal rights to our farm, branch and stable business, and at year-end, the sale of the American Reliable legal entity. As previously reported, these exits contributed $43 million to the bottom line and freed up a substantial amount of capital. Also at year-end 2022, we made the decision to exit our involvement in the four wholesale brokerage operations we had established earlier that year and eliminated all of the staff associated with those operations.