GLOBAL INDEMNITY GROUP, LLC – 10-Q – MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS

0
The following discussion and analysis of the Company's financial condition and
results of operations should be read in conjunction with the consolidated
financial statements and accompanying notes of the Company included elsewhere in
this report. Some of the information contained in this discussion and analysis
or set forth elsewhere in this report, including information with respect to the
Company's plans and strategy, constitutes forward-looking statements that
involve risks and uncertainties. Please see "Cautionary Note Regarding
Forward-Looking Statements" at the end of this Item 2 for a discussion of
important factors that could cause actual results to differ materially from the
results described in or implied by the forward-looking statements contained
herein. For more information regarding the Company's business and operations,
please see the Company's Annual Report on Form 10-K for the year ended December
31, 2021.

                              Recent Developments

Sale of farm, ranch and stable renewal rights and sale of American
Reliable insurance company
.

On August 8, 2022, the Company sold the renewal rights related to all business
lines within its Farm, Ranch & Stable segment for business written on or after
August 8, 2022 to Everett Cash Mutual Insurance Company.  The Company will
retain the unearned premium reserves for business written prior to August 8,
2022.

Everett Cash Mutual Insurance Company is also acquiring the Company's wholly
owned subsidiary, American Reliable Insurance Company, for book value which is
expected to be $10.0 million at the time of closing.  The transaction is subject
to receiving regulatory approval which is expected to be received during the 4th
quarter of 2022. Under the agreements, total consideration to be paid by Everett
Cash Mutual Insurance Company is $40 million.

Distributions

The Board of Directors approved a distribution payment of $0.25 per common share
to all shareholders of record on the close of business on March 21, 2022 and
June 20, 2022. Distributions paid to common shareholders were $7.3 million
during the six months ended June 30, 2022. In addition, distributions of $0.2
million were paid to Global Indemnity Group, LLC's preferred shareholder during
the six months ended June 30, 2022.

AM Highest rating

AM Best has seven Rating Categories in the AM Best Financial Strength Rating
Scale.  The categories ranging from best to worst are Superior, Excellent, Good,
Fair, Marginal, Weak and Poor.  Within each rating category, there are rating
notches of plus or minus to show additional gradation of the ratings.  On May
19, 2022, AM Best affirmed the financial strength rating of "A" (Excellent) for
the U.S. operating subsidiaries of Global Indemnity Group, LLC.

Debt refund

On April 15, 2022, the Company redeemed the entire $130 million in aggregate
principal amount of the outstanding 2047 Notes plus accrued and unpaid interest
on the 2047 Notes redeemed to, but not including the Redemption Date of April
15, 2022.

COVID-19

The global outbreak of COVID-19 continues to present significant risks to the
Company. The COVID-19 pandemic may affect the Company's operations
indefinitely. The Company may experience reductions in premium volume, delays in
the collection of premiums, and increases in COVID-19 related claims. Any
resulting volatility in the global financial markets may negatively impact the
market value of the Company's investment portfolio and may result in net
realized investment losses as well as a decline in the liquidity of the
investment portfolio. All of these factors may have far reaching impacts on the
Company's business, operations, and financial results and conditions, directly
and indirectly, including without limitation impacts on the health of the
Company's management and employees, distribution, marketing, customers and
agents, and on the overall economy. The scope and nature of these impacts, most
of which are beyond the Company's control, continue to evolve and such effects
could exist for an extended period of time even after the pandemic ends.

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                          GLOBAL INDEMNITY GROUP, LLC

                                    Overview

The Company's Commercial Specialty segment sells its property and casualty
insurance products through a group of approximately 205 professional general
agencies that have limited quoting and binding authority, as well as a number of
wholesale insurance brokers who in turn sell the Company's insurance products to
insureds through retail insurance brokers. Commercial Specialty operates
predominantly in the excess and surplus lines marketplace. Commercial Specialty
also offers several specialty admitted property and casualty products. The
Company manages its Commercial Specialty segment via product
classifications. These product classifications are: 1) Penn-America, which
includes property and general liability products for small commercial businesses
sold through a select network of wholesale general agents with specific binding
authority; 2) United National, which includes property, general liability, and
professional lines products sold through program administrators with specific
binding authority; 3) Diamond State, which includes property, casualty, and
professional lines products sold through wholesale brokers and program
administrators with specific binding authority; and 4) Vacant Express, which
primarily insures dwellings which are currently vacant, undergoing renovation,
or are under construction and is sold through aggregators, brokers, and retail
agents. The Company has also created several start-up business lines which
distribute professional, environmental, and excess casualty products.

The company’s reinsurance operations provide reinsurance solutions through
primary brokers and insurers, including insurance and reinsurance companies. This
uses its capital capacity to write niche and accident-focused treatises and
that meet the Company’s risk tolerance and return thresholds.

The Company's Exited Lines segment represents lines of business that are no
longer being written or are in runoff. Exited Lines includes specialty personal
lines property and casualty products such as manufactured home, dwelling,
motorcycle, watercraft and certain homeowners business, certain business within
Property Brokerage, property and catastrophe reinsurance treaties, Farm, Ranch,
& Stable business, and specialized insurance products for the equine mortality
and equine major medical industry. These insurance products were distributed
through wholesale general agents, wholesale insurance brokers, program
administrators, and retail agents.

The Company derives its revenues primarily from premiums paid on insurance
policies that it writes and from income generated by its investment portfolio,
net of fees paid for investment management services. The amount of insurance
premiums that the Company receives is a function of the amount and type of
policies it writes, as well as prevailing market prices.

The Company's expenses include losses and loss adjustment expenses, acquisition
costs and other underwriting expenses, corporate and other operating expenses,
interest, investment expenses, and income taxes. Losses and loss adjustment
expenses are estimated by management and reflect the Company's best estimate of
ultimate losses and costs arising during the reporting period and revisions of
prior period estimates. The Company records its best estimate of losses and loss
adjustment expenses considering both internal and external actuarial analyses of
the estimated losses the Company expects to incur on the insurance policies it
writes. The ultimate losses and loss adjustment expenses will depend on the
actual costs to resolve claims. Acquisition costs consist principally of
commissions and premium taxes that are typically a percentage of the premiums on
the insurance policies the Company writes, net of ceding commissions earned from
reinsurers. Other underwriting expenses consist primarily of personnel expenses
and general operating expenses related to underwriting activities. Corporate and
other operating expenses are comprised primarily of outside legal fees, other
professional and accounting fees, directors' fees, management fees & advisory
fees, and salaries and benefits for company personnel whose services relate to
the support of corporate activities. Interest expense is primarily comprised of
amounts due on outstanding debt.

                   Critical Accounting Estimates and Policies

The Company’s consolidated financial statements are prepared in accordance with
GAAP, which require it to make estimates and assumptions that affect the
the declared amounts of assets and liabilities on the closing date
financial statements and the reported amounts of income and expenses during
reporting periods. Actual results could differ from these estimates and
hypotheses.

The most critical accounting policies involve significant estimates and include
those used in determining the liability for unpaid losses and loss adjustment
expenses, recoverability of reinsurance receivables, investments, fair value
measurements, goodwill and intangible assets, deferred acquisition costs, and
taxation. For a detailed discussion on each of these policies,

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                          GLOBAL INDEMNITY GROUP, LLC

please see the Company's Annual Report on Form 10-K for the year ended December
31, 2021. There have been no significant changes to any of these policies or
underlying methodologies during the current year.

                             Results of Operations

The following table summarizes the Company’s results for the quarters and six
months ended June 30, 2022 and 2021:

                                       Quarters Ended                           Six Months Ended
                                          June 30,                %                 June 30,                %
(Dollars in thousands)               2022          2021         Change         2022          2021        Change
Gross written premiums             $ 196,823     $ 175,236         12.3 %    $ 387,806     $ 338,794        14.5 %

Net written premiums               $ 167,158     $ 160,653          4.0 %    $ 326,640     $ 308,336         5.9 %

Net earned premiums                $ 155,749     $ 149,408          4.2 %    $ 304,572     $ 293,108         3.9 %
Other income                             174           512        (66.0 %)         613           920       (33.4 %)
Total revenues                       155,923       149,920          4.0 %      305,185       294,028         3.8 %

Losses and expenses:
Net losses and loss adjustment
expenses                              92,618        90,938          1.8 %      177,313       181,721        (2.4 %)
Acquisition costs and other
underwriting expenses                 61,098        57,213          6.8 %      117,790       111,977         5.2 %
Underwriting income                    2,207         1,769         24.8 %       10,082           330          NM

Net investment income                  1,930        10,633        (81.8 %)       8,522        20,469       (58.4 %)
Net realized investment gains
(losses)                              (9,916 )       3,833           NM        (35,301 )       7,652          NM
Other income (loss)                      (77 )           9           NM            (90 )         (22 )        NM
Corporate and other operating
expenses                              (2,993 )      (6,329 )      (52.7 %)      (7,653 )     (10,605 )     (27.8 %)
Interest expense                        (410 )      (2,696 )      (84.8 %)      (3,005 )      (5,291 )     (43.2 %)
Loss on extinguishment of debt        (3,529 )           -           NM         (3,529 )           -          NM
Income (loss) before income
taxes                                (12,788 )       7,219           NM     

(30,974) 12,533 nautical miles

Income tax expense (benefit)            (626 )         844       (174.2 %)      (4,039 )         641          NM
Net income (loss)                  $ (12,162 )   $   6,375           NM      $ (26,935 )   $  11,892          NM

Underwriting Ratios:
Loss ratio (1):                         59.5 %        60.9 %                      58.2 %        62.0 %
Expense ratio (2)                       39.2 %        38.3 %                      38.7 %        38.2 %
Combined ratio (3)                      98.7 %        99.2 %                      96.9 %       100.2 %


NM – not significant
(1) The loss ratio is a GAAP financial measure that is generally considered

the insurance industry as an indicator of underwriting profitability and is

calculated by dividing net losses and claims adjustment expenses by net profit earned

premiums.

(2) The expense ratio is a GAAP financial measure that is calculated by dividing

the sum of acquisition costs and other technical charges per net result

premiums.

(3) The combined ratio is a financial measure in accordance with GAAP and corresponds to the sum of the

The company’s loss and expense ratios.

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                          GLOBAL INDEMNITY GROUP, LLC



Premiums

The following table summarizes the change in premium volume by business segment:

                                       Quarters Ended                             Six Months Ended
                                          June 30,                                    June 30,
(Dollars in thousands)               2022          2021         % Change         2022          2021         % Change
Gross written premiums (1)
Commercial Specialty               $ 109,797     $  99,406           10.5 %    $ 214,063     $ 188,740           13.4 %
Reinsurance Operations (3)            46,394        24,487           89.5 %       87,839        46,438           89.2 %
Continuing Lines                     156,191       123,893           26.1 %      301,902       235,178           28.4 %
Exited Lines                          40,632        51,343          (20.9 %)      85,904       103,616          (17.1 %)
Total gross written premiums       $ 196,823     $ 175,236           12.3 %    $ 387,806     $ 338,794           14.5 %

Ceded written premiums
Commercial Specialty               $   8,626     $   7,759           11.2 %    $  14,579     $  14,921           (2.3 %)
Reinsurance Operations (3)                 -             -              -              -             -              -
Continuing Lines                       8,626         7,759           11.2 %       14,579        14,921           (2.3 %)
Exited Lines                          21,039         6,824             NM         46,587        15,537          199.8 %
Total ceded written premiums       $  29,665     $  14,583          103.4 %    $  61,166     $  30,458          100.8 %

Net written premiums (2)
Commercial Specialty               $ 101,171     $  91,647           10.4 %    $ 199,484     $ 173,819           14.8 %
Reinsurance Operations (3)            46,394        24,487           89.5 %       87,839        46,438           89.2 %
Continuing Lines                     147,565       116,134           27.1 %      287,323       220,257           30.4 %
Exited Lines                          19,593        44,519          (56.0 %)      39,317        88,079          (55.4 %)
Total net written premiums         $ 167,158     $ 160,653            4.0 %    $ 326,640     $ 308,336            5.9 %

Net earned premiums
Commercial Specialty               $  95,172     $  81,965           16.1 %    $ 186,935     $ 160,657           16.4 %
Reinsurance Operations (3)            38,596        18,061          113.7 %       73,559        34,859          111.0 %
Continuing Lines                     133,768       100,026           33.7 %      260,494       195,516           33.2 %
Exited Lines                          21,981        49,382          (55.5 %)      44,078        97,592          (54.8 %)
Total net earned premiums          $ 155,749     $ 149,408            4.2 %    $ 304,572     $ 293,108            3.9 %

NM – not significant
(1) Gross written premiums represent the amount received or to be received for

insurance policies taken out without reduction for reinsurance costs, ceded

bonuses or other deductions.

(2) Net written premiums are equal to gross written premiums less written written premiums

premiums.

(3) External business only, excluding business taken over from affiliates.


Gross written premiums increased by 12.3% and 14.5% for the quarter and six
months ended June 30, 2022, respectively, as compared to same periods in
2021. The increase in gross written premiums is mainly due to the continued
growth of existing programs, increased pricing, and several new programs within
Commercial Specialty, the organic growth of existing casualty treaties within
Reinsurance Operations, partially offset by a reduction in premiums within
Exited Lines.

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                          GLOBAL INDEMNITY GROUP, LLC

Underwriting Ratios

                           Quarters Ended                      Six Months Ended
                              June 30,            Point            June 30,             Point
                          2022        2021       Change        2022         2021       Change
Loss ratio
Commercial Specialty        58.9 %      52.1 %       6.8          57.8 %      57.6 %       0.2
Reinsurance Operations      58.3 %      64.2 %      (5.9 )        59.7 %      64.4 %      (4.7 )
Continuing Lines            58.7 %      54.3 %       4.4          58.4 %      58.8 %      (0.4 )
Exited Lines                64.1 %      74.2 %     (10.1 )        57.4 %      68.4 %     (11.0 )
Total loss ratio            59.5 %      60.9 %      (1.4 )        58.2 %      62.0 %      (3.8 )
Expense ratio
Commercial Specialty        38.1 %      37.3 %       0.8          37.4 %      37.1 %       0.3
Reinsurance Operations      37.2 %      34.3 %       2.9          36.1 %      34.4 %       1.7
Continuing Lines            37.8 %      36.8 %       1.0          37.0 %      36.6 %       0.4
Exited Lines                47.8 %      41.4 %       6.4          48.4 %      41.4 %       7.0
Total expense ratio         39.2 %      38.3 %       0.9          38.7 %      38.2 %       0.5
Combined ratio
Commercial Specialty        97.0 %      89.4 %       7.6          95.2 %      94.7 %       0.5
Reinsurance Operations      95.5 %      98.5 %      (3.0 )        95.8 %      98.8 %      (3.0 )
Continuing Lines            96.5 %      91.1 %       5.4          95.4 %      95.4 %      (0.0 )
Exited Lines               111.9 %     115.6 %      (3.7 )       105.8 %     109.8 %      (4.0 )
Total combined ratio        98.7 %      99.2 %      (0.5 )        96.9 %     100.2 %      (3.3 )


Net Retention

The ratio of net written premiums to gross written premiums is called
the net retention of the Company’s premiums. The Company’s net premium retention is
summarized by segments as follows:

                           Quarters Ended                      Six Months Ended
                              June 30,            Point            June 30,             Point
(Dollars in thousands)    2022        2021       Change        2022         2021       Change
Commercial Specialty        92.1 %      92.2 %      (0.1 )        93.2 %      92.1 %       1.1
Reinsurance Operations     100.0 %     100.0 %         -         100.0 %     100.0 %         -
Continuing Lines            94.5 %      93.7 %       0.8          95.2 %      93.7 %       1.5
Exited Lines                48.2 %      86.7 %     (38.5 )        45.8 %     100.0 %     (54.2 )
Total                       84.9 %      91.7 %      (6.8 )        84.2 %      91.0 %      (6.8 )



The net premium retention for both the quarter and six months ended June 30,
2022 decreased by 6.8 points as compared to the same periods in 2021. The
reduction in retention is primarily driven by the Company entering into an
agreement effective November 30, 2021 where American Family Mutual Insurance
Company agreed to reinsure 100% of the Company's unearned premium reserves of
the same types as the policies included in the sale of the renewal rights of the
Company's manufactured and dwelling homes products that were in force as of
November 30, 2021. See Note 3 of the notes to the consolidated financial
statements in Item 8 Part II of the Company's 2021 Annual Report on Form 10-K
for additional information on this reinsurance agreement as well as the sale of
renewal rights related to the Company's manufactured and dwelling home products.

Net earned premiums

Net earned premiums within the Commercial Specialty segment increased by 16.1%
and 16.4% for the quarter and six months ended June 30, 2022, respectively, as
compared to the same periods in 2021. The increase in net earned premiums was
primarily due to a growth in premiums written as a result of organic growth from
existing agents, pricing increases, and several new programs. Property net
earned premiums were $36.8 million and $34.7 million for the quarters ended
June 30, 2022 and 2021, respectively, and $72.3 million and $71.9 million for
the six months ended June 30, 2022 and 2021,

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                          GLOBAL INDEMNITY GROUP, LLC

respectively. Casualty net earned premiums were $58.3 million and $47.2 million
for the quarters ended June 30, 2022 and 2021, respectively, and $114.6 million
and $88.8 million for the six months ended June 30, 2022 and 2021,
respectively.

Net earned premiums within the Reinsurance Operations segment increased by
113.7% and 111.0% for the quarter and six months ended June 30, 2022,
respectively, as compared to the same periods in 2021 primarily due to organic
growth of existing casualty treaties. There was no property net earned premiums
for the quarters and six months ended June 30, 2022 and 2021. Casualty net
earned premiums were $38.6 million and $18.1 million for the quarters ended
June 30, 2022 and 2021, respectively, and $73.6 million and $34.9 million for
the six months ended June 30, 2022 and 2021, respectively.

Net earned premiums within the Exited Lines segment decreased by 55.5% and 54.8%
for the quarter and six months ended June 30, 2022, respectively, as compared to
the same periods in 2021 primarily due to the sale of the renewal rights related
to the Company's manufactured and dwelling home products on October 26,
2021. The decrease in net earned premiums is also due to exiting lines of
business unrelated to the company's continuing businesses. Property net earned
premiums were $16.6 million and $43.1 million for the quarters ended June 30,
2022 and 2021, respectively, and $34.2 million and $85.0 million for the six
months ended June 30, 2022 and 2021, respectively. Casualty net earned premiums
were $5.4 million and $6.2 million for the quarters ended June 30, 2022 and
2021, respectively, and $9.8 million and $12.6 million for the six months ended
June 30, 2022 and 2021, respectively.

Reservations

Management's best estimate at June 30, 2022 was recorded as the loss
reserve. Management's best estimate is as of a particular point in time and is
based upon known facts, the Company's actuarial analyses, current law, and the
Company's judgment. This resulted in carried gross and net reserves of $804.7
million and $710.5 million, respectively, as of June 30, 2022. A breakout of the
Company's gross and net reserves, as of June 30, 2022, is as follows:

                                    Gross Reserves
(Dollars in thousands)     Case        IBNR (1)        Total
Commercial Specialty     $ 163,650     $ 316,635     $ 480,285
Reinsurance Operations       6,249       138,272       144,521
Continuing Lines           169,899       454,907       624,806
Exited Lines                83,667        96,188       179,855
Total                    $ 253,566     $ 551,095     $ 804,661



                                   Net Reserves (2)

(in thousands of dollars) IBNR cases (1) Total
Commercial specialty $140,566 $284,090 $424,656
Reinsurance operations 6,249,138,272 144,521
Solid lines

           146,815       422,362       569,177
Exited Lines                63,867        77,432       141,299
Total                    $ 210,682     $ 499,794     $ 710,476


(1) Losses incurred but not deferred, including the expected future emergence of

case reserves.

(2) Does not include reinsurance receivable on paid claims.


Each reserve category has an implicit frequency and severity for each accident
year as a result of the various assumptions made. If the actual levels of loss
frequency and severity are higher or lower than expected, the ultimate losses
will be different than management's best estimate. For most of its reserve
categories, the Company believes that frequency can be predicted with greater
accuracy than severity. Therefore, the Company believes management's best
estimate is more likely influenced by changes in severity than frequency. The
following table, which the Company believes reflects a reasonable range of
variability around its best estimate based on historical loss experience and
management's judgment, reflects the

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                          GLOBAL INDEMNITY GROUP, LLC

impact of changes (which may be favorable or unfavourable) in frequency and
severity on the company’s net loss estimate for the current accident year $183.9
million
for claims occurring during the six months ended June 30, 2022:

                                                      Severity Change
(Dollars in thousands)           -10%           -5%           0%           5%          10%
Frequency Change      -5%        (26,672 )     (17,935 )     (9,197 )       (460 )      8,278
                      -3%        (23,361 )     (14,440 )     (5,518 )      3,403       12,324
                      -2%        (21,706 )     (12,692 )     (3,679 )      5,334       14,348
                      -1%        (20,050 )     (10,945 )     (1,839 )      7,266       16,371
                       0%        (18,395 )      (9,197 )          -        9,197       18,395
                       1%        (16,739 )      (7,450 )      1,839       11,129       20,418
                       2%        (15,084 )      (5,702 )      3,679       13,060       22,442
                       3%        (13,428 )      (3,955 )      5,518       14,992       24,465
                       5%        (10,117 )        (460 )      9,197       18,855       28,512



The Company's net reserves for losses and loss adjustment expenses of $710.5
million as of June 30, 2022 relate to multiple accident years. Therefore, the
impact of changes in frequency and severity for more than one accident year
could be higher or lower than the amounts reflected above.

Underwriting results

Commercial specialty

The Company’s Commercial Specialties revenue components and
the corresponding subscription ratios are as follows:

                              Quarters Ended                           Six Months Ended
                                 June 30,                %                 June 30,                 %
(Dollars in thousands)      2022          2021        Change          2022          2021          Change
Gross written premiums    $ 109,797     $ 99,406          10.5 %    $ 214,063     $ 188,740           13.4 %

Net written premiums      $ 101,171     $ 91,647          10.4 %    $ 199,484     $ 173,819           14.8 %

Net earned premiums       $  95,172     $ 81,965          16.1 %    $ 186,935     $ 160,657           16.4 %
Other income                    260     $    208          25.0 %    $     519     $     452           14.8 %
Total revenues               95,432       82,173          16.1 %      187,454       161,109           16.4 %

Losses and expenses:
Net losses and loss
adjustment expenses          56,042       42,669          31.3 %      108,095        92,459           16.9 %
Acquisition costs and
other underwriting
expenses                     36,222       30,577          18.5 %       69,911        59,629           17.2 %
Underwriting income       $   3,168     $  8,927         (64.5 %)   $   9,448     $   9,021            4.7 %



                             Quarters Ended                       Six Months Ended
                                June 30,             Point            June 30,              Point
                             2022        2021       Change        2022          2021       Change
Underwriting Ratios:
Loss ratio:
Current accident year          58.6 %     52.7 %        5.9          57.5 %      59.5 %       (2.0 )
Prior accident year             0.3 %     (0.6 %)       0.9           0.3 %      (1.9 %)       2.2
Calendar year loss ratio       58.9 %     52.1 %        6.8          57.8 %      57.6 %        0.2
Expense ratio                  38.1 %     37.3 %        0.8          37.4 %      37.1 %        0.3
Combined ratio                 97.0 %     89.4 %        7.6          95.2 %      94.7 %        0.5


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                          GLOBAL INDEMNITY GROUP, LLC

Reconciliation of Non-GAAP Financial Measures and Ratios

The table below reconciles the non-GAAP measures or ratios, which excludes the
impact of prior accident year adjustments, to its most directly comparable GAAP
measure or ratio. The Company believes the non-GAAP measures or ratios are
useful to investors when evaluating the Company's underwriting performance as
trends within Commercial Specialty may be obscured by prior accident year
adjustments. These non-GAAP measures or ratios should not be considered as a
substitute for its most directly comparable GAAP measure or ratio and does not
reflect the overall underwriting profitability of the Company.

                                        Quarters Ended June 30,                           Six Months Ended June 30,
                                     2022                     2021                      2022                     2021
                                            Loss                     Loss                      Loss                     Loss

(in thousands of dollars) Loss ratio Loss ratio

      Losses       Ratio        Losses      Ratio
Property
Non catastrophe property
losses and ratio excluding
the effect of prior
accident year (1)             $ 18,125       49.2 %    $ 13,218       38.0 

% $35,707 49.4% $33,790 47.0%
Effect of a previous accident
year

                               383        1.0 %          (6 )     (0.0 

%) (374 ) (0.5%) (1,534 ) (2.1%)
Non-catastrophic property
losses and ratio (2) $18,508 50.2% $13,212 38.0% $35,333 48.9% $32,256 44.9%

Catastrophe losses and
ratio excluding the effect
of prior accident year (1)    $  3,189        8.7 %    $  2,855        8.2 %    $   5,423        7.5 %    $ 11,573       16.1 %
Effect of prior accident
year                            (1,334 )     (3.6 %)        514        1.5 

% (353 ) (0.5%) (392 ) (0.6%)
Disaster losses and
report (2)

                     $  1,855        5.1 %    $  3,369        9.7 

% $5,070 7.0% $11,181 15.5%

Total property losses and
ratio excluding the effect
of prior accident year (1)    $ 21,314       57.9 %    $ 16,073       46.2 %    $  41,130       56.9 %    $ 45,363       63.1 %
Effect of prior accident
year                              (951 )     (2.6 %)        508        1.5 

% (727 ) (1.0%) (1,926 ) (2.7%)
Total loss of property and
report (2)

                     $ 20,363       55.3 %    $ 16,581       47.7 

% $40,403 55.9% $43,437 60.4%

Victim

Total casualty losses and
ratio excluding the effect
of prior accident year (1)    $ 34,460       59.1 %    $ 27,126       57.4 %    $  66,420       58.0 %    $ 50,220       56.6 %
Effect of prior accident
year                             1,219        2.1 %      (1,038 )     (2.2 

%) 1,272 1.1% (1,198 ) (1.3%)
Total losses and
report (2)

                     $ 35,679       61.2 %    $ 26,088       55.2 

% $67,692 59.1% $49,022 55.3%

Total

Total net losses and loss
adjustment expense and
total loss ratio excluding
the effect of prior
accident year (1)             $ 55,774       58.6 %    $ 43,199       52.7 

% $107,550 57.5% $95,583 59.5%
Effect of a previous accident
year

                               268        0.3 %        (530 )     (0.6 %)         545        0.3 %      (3,124 )     (1.9 %)
Total net losses and loss
adjustment expense and
total loss ratio (2)          $ 56,042       58.9 %    $ 42,669       52.1 %    $ 108,095       57.8 %    $ 92,459       57.6 %



(1) Non-GAAP measure/ratio

(2) Most directly comparable GAAP measure/ratio

Premiums

See “Results of operations” above for a discussion of consolidated premiums.

Other income

Other income was $0.3 million and $0.2 million for the quarters ended June 30,
2022 and 2021, respectively, and $0.5 million and $0.5 million for the six
months ended June 30, 2022 and 2021, respectively. Other income is primarily
comprised of fee income.

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                          GLOBAL INDEMNITY GROUP, LLC

loss rate

Current accident year claims and loss ratio are summarized as follows:

                                 Quarters Ended                            Six Months Ended
                                    June 30,                 %                 June 30,                 %
(Dollars in thousands)         2022          2021          Change         2022          2021         Change
Property losses
Non-catastrophe              $  18,125     $  13,218           37.1 %   $  35,707     $  33,790           5.7 %
Catastrophe                      3,189         2,855           11.7 %       5,423        11,573         (53.1 %)
Property losses                 21,314        16,073           32.6 %      41,130        45,363          (9.3 %)
Casualty losses                 34,460        27,126           27.0 %      66,420        50,220          32.3 %
Total accident year losses   $  55,774     $  43,199           29.1 %   $ 107,550     $  95,583          12.5 %



                                 Quarters Ended                          Six Months Ended
                                    June 30,              Point              June 30,               Point
                               2022          2021        Change         2022           2021        Change
Current accident year loss
ratio:
Property
Non-catastrophe                   49.2 %       38.0 %        11.2          49.4 %        47.0 %         2.4
Catastrophe                        8.7 %        8.2 %         0.5           7.5 %        16.1 %        (8.6 )
Property loss ratio               57.9 %       46.2 %        11.7          56.9 %        63.1 %        (6.2 )
Casualty loss ratio               59.1 %       57.4 %         1.7          58.0 %        56.6 %         1.4
Total accident year loss
ratio                             58.6 %       52.7 %         5.9          

57.5% 59.5% (2.0)

The current accident year non-catastrophe property loss ratio increased by 11.2
points during the quarter ended June 30, 2022 as compared to the same period in
2021 reflecting higher claims severity in the second accident quarter compared
to last year.

The current accident year non-catastrophe property loss ratio increased by 2.4
points during the six months ended June 30, 2022 as compared to the same period
in 2021 due to higher claims severity in the first six months compared to last
year.

The current accident year catastrophe loss ratio increased by 0.5 points during
the quarter ended June 30, 2022 as compared to the same period in 2021
recognizing higher claims frequency in the calendar quarter compared to last
year.

The current accident year catastrophe loss ratio improved by 8.6 points during
the six months ended June 30, 2022 as compared to the same period in 2021 due to
lower claims frequency and severity in the first six months compared to last
year.

The current accident year casualty loss ratio increased by 1.7 points during the
quarter ended June 30, 2022 as compared to the same period in 2021 reflecting
higher claims severity in the calendar quarter compared to last year.

The current accident year casualty loss ratio increased by 1.4 points during the
six months ended June 30, 2022 as compared to the same period in 2021 due to
higher claims severity in the first six months compared to last year.

The calendar year loss ratio for the quarter and six months ended June 30, 2022
includes a increase of $0.3 million, or 0.3 percentage points, and a increase of
$0.5 million, or 0.3 percentage points, respectively, related to reserve
development on prior accident years. The calendar year loss ratio for the
quarter and six months ended June 30, 2021 includes a decrease of $0.5 million,
or 0.6 percentage points, and a decrease of $3.1 million, or 1.9 percentage
points, respectively, related to reserve development on prior accident
years. Please see Note 7 of the notes to the consolidated financial statements
in Item 1 of Part I of this report for further discussion on prior accident year
development.

Expense Ratios

The expense ratio for the Company's Commercial Specialty segment increased by
0.8 points from 37.3% for the quarter ended June 30, 2021 to 38.1% for the
quarter ended June 30, 2022 and increased by 0.3 points from 37.1% for the six
months ended June 30, 2021 to 37.4% for the six months ended June 30, 2022. The
increase in the expense ratio is primarily due to higher compensation cost
resulting from the start-up business lines partially offset by a reduction in
the expense ratio due to growth in net earned premiums.

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                          GLOBAL INDEMNITY GROUP, LLC

COVID-19[feminine]

Lasting impacts of COVID-19 could result in lower business, non-payment of
premiums and increases in claims that could adversely affect
Activity, financial situation and operating results of the specialty.

There is continued risk that legislation could be passed or there could be a
court ruling which would require the Company to cover business interruption
claims regardless of terms, exclusions including the virus exclusions contained
within the Company's Commercial Specialty policies, or other conditions included
in these policies that would otherwise preclude coverage.

Reinsurance operations

The components of income from the Company’s reinsurance operations segment and
the corresponding subscription ratios are as follows:

                               Quarters Ended                          Six Months Ended
                                  June 30,                %                June 30,                %
(Dollars in thousands)     2022 (1)      2021 (1)       Change      2022 (1)      2021 (1)       Change
Gross written premiums     $  46,394     $  24,487         89.5 %   $  87,839     $  46,438         89.2 %

Net written premiums       $  46,394     $  24,487         89.5 %   $  87,839     $  46,438         89.2 %

Net earned premiums        $  38,596     $  18,061        113.7 %   $  73,559     $  34,859        111.0 %
Other income (loss)              (61 )          14           NM           (81 )         (42 )       92.9 %
Total revenues                38,535        18,075        113.2 %      73,478        34,817        111.0 %

Losses and expenses:
Net losses and loss
adjustment expenses           22,481        11,600         93.8 %      43,938        22,475         95.5 %
Acquisition costs and
other underwriting
expenses                      14,369         6,198        131.8 %      26,546        11,977        121.6 %
Underwriting income        $   1,685     $     277           NM     $   2,994     $     365           NM



                                   Quarters Ended                             Six Months Ended
                                      June 30,                Point               June 30,                 Point
                                 2022           2021         Change          2022            2021         Change
Underwriting Ratios:
Loss ratio:
Current accident year (2)           61.4 %        64.3 %         (2.9 )         61.3 %         64.5 %         (3.2 )
Prior accident year                 (3.1 %)       (0.1 %)        (3.0 )         (1.6 %)        (0.1 %)        (1.5 )
Calendar year loss ratio (3)        58.3 %        64.2 %         (5.9 )         59.7 %         64.4 %         (4.7 )
Expense ratio                       37.2 %        34.3 %          2.9           36.1 %         34.4 %          1.7
Combined ratio                      95.5 %        98.5 %         (3.0 )         95.8 %         98.8 %         (3.0 )


(1) External business only, excluding business taken over from affiliates

(2) Non-GAAP ratio

(3) Most directly comparable GAAP ratio

NM - not meaningful

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                          GLOBAL INDEMNITY GROUP, LLC

Reconciliation of non-GAAP financial ratios

The table above reconciles the non-GAAP ratios, which excludes the impact of
prior accident year adjustments, to its most directly comparable GAAP ratio. The
Company believes the non-GAAP ratios are useful to investors when evaluating the
Company's underwriting performance as trends within Reinsurance Operations may
be obscured by prior accident year adjustments. These non-GAAP ratios should not
be considered as a substitute for its most directly comparable GAAP ratio and
does not reflect the overall underwriting profitability of the Company.

Premiums

See “Results of operations” above for a discussion of consolidated premiums.

Other income (losses)

The Company recognized a loss of $0.1 million for each of the quarters ended
June 30, 2022 and 2021 and recognized income of less than $0.1 million and a
loss of less than $0.1 million for the six months ended June 30, 2022 and 2021,
respectively. Other income (loss) is primarily comprised of foreign exchange
gains and losses.

Loss Ratio

The current accident year loss ratio improved by 2.9 points during the quarter
ended June 30, 2022 as compared to the same period in 2021 reflecting a mix of
business change and growth in a treaty that has a lower expected loss ratio than
last year.

The current accident year loss ratio improved by 3.2 points during six months
ended June 30, 2022 as compared to the same period in 2021 reflecting a mix of
business change and growth in a treaty that has a lower expected loss ratio than
last year.

The calendar year loss ratios for the quarter and six months ended June 30, 2022
includes a decrease of $1.2 million or 3.1 percentage points, and a decrease of
$1.2 million, or 1.6 percentage points, respectively, related to reserve
development on prior accident years. The calendar year loss ratios for both the
quarter and six months ended June 30, 2021 includes a decrease of less than $0.1
million or 0.1 percentage point, related to reserve development on prior
accident years. Please see Note 7 of the notes to the consolidated financial
statements in Item 1 of Part I of this report for further discussion on prior
accident year development.

Expense Ratios

The expense ratio for the Company's Reinsurance Operations segment increased 2.9
points from 34.3% for the quarter ended June 30, 2021 to 37.2% for the quarter
ended June 30, 2022 and increased 1.7 points from 34.4% for the six months ended
June 30, 2021 to 36.1% for the six months ended June 30, 2022. This increase in
the expense ratio was primarily due to an increase in commission expense which
was partially offset by a reduction in the expense ratio as a result of a growth
in net earned premiums.

COVID-19

Lasting impacts of COVID-19 could result in lower business, non-payment of
premiums and increases in claims that could adversely affect reinsurance
Business, Financial Condition and Results of Operations.

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                          GLOBAL INDEMNITY GROUP, LLC

Lines left

The components of the Company’s Discontinued Lines segment loss and the
the subscription ratios are as follows:

                              Quarters Ended                          Six 

Months ended

                                 June 30,               %                 June 30,               %

(in thousands of dollars) 2022 2021 Change 2022

       2021         Change
Gross written premiums     $ 40,632     $ 51,343        (20.9 %)   $ 85,904 

$103,616 (17.1%)

Net written premiums $19,593 $44,519 (56.0%) $39,317

$88,079 (55.4%)

Net earned premiums $21,981 $49,382 (55.5%) $44,078

     $  97,592        (54.8 %)
Other income (loss)             (25 )        290       (108.6 %)        175           510        (65.7 %)
Total revenues               21,956       49,672        (55.8 %)     44,253 

98,102 (54.9%)

Losses and expenses:
Net losses and loss
adjustment expenses          14,095       36,669        (61.6 %)     25,280        66,787        (62.1 %)
Acquisition costs and
other underwriting
expenses                     10,507       20,438        (48.6 %)     21,333        40,371        (47.2 %)
Underwriting loss          $ (2,646 )   $ (7,435 )      (64.4 %)   $ (2,360 )   $  (9,056 )      (73.9 %)



                              Quarters Ended                      Six Months Ended
                                 June 30,            Point            June 30,             Point
                            2022         2021       Change        2022         2021       Change
Underwriting Ratios:
Loss ratio:
Current accident year         76.1 %       61.9 %      14.2         70.9 %       63.0 %       7.9
Prior accident year          (12.0 %)      12.3 %     (24.3 )      (13.5 %)       5.4 %     (18.9 )
Calendar year loss ratio      64.1 %       74.2 %     (10.1 )       57.4 %       68.4 %     (11.0 )
Expense ratio                 47.8 %       41.4 %       6.4         48.4 %       41.4 %       7.0
Combined ratio               111.9 %      115.6 %      (3.7 )      105.8 %      109.8 %      (4.0 )




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                          GLOBAL INDEMNITY GROUP, LLC

Reconciliation of non-GAAP financial ratios

The table below reconciles the non-GAAP measures or ratios, which excludes the
impact of prior accident year adjustments, to its most directly comparable GAAP
measure or ratio. The Company believes the non-GAAP measures or ratios are
useful to investors when evaluating the Company's underwriting performance as
trends within Exited Lines may be obscured by prior accident year adjustments.
These non-GAAP measures or ratios should not be considered as a substitute for
its most directly comparable GAAP measure or ratio and does not reflect the
overall underwriting profitability of the Company.

                                             Quarters Ended June 30,                                     Six Months Ended June 30,
                                       2022                           2021                          2022                           2021
(Dollars in thousands)        Losses       Loss Ratio        Losses      Loss Ratio        Losses       Loss Ratio        Losses      Loss Ratio
Property
Non catastrophe property
losses and ratio excluding
the effect of prior
accident year (1)            $  9,229             55.5 %    $ 22,271            51.6 %    $ 19,108             55.8 %    $ 41,608            48.9 %
Effect of prior accident
year                           (2,754 )          (16.6 %)       (277 )          (0.6 %)     (4,291 )          (12.5 %)      1,764             2.1 %
Non catastrophe property
losses and ratio (2)         $  6,475             39.0 %    $ 21,994            51.0 %    $ 14,817             43.3 %    $ 43,372            51.0 %

Catastrophe losses and
ratio excluding the effect
of prior accident year (1)   $  5,189             31.2 %    $  4,958            11.5 %    $  7,262             21.2 %    $ 13,150            15.5 %
Effect of prior accident
year                              191              1.1 %       6,298            14.6 %      (1,165 )           (3.4 %)      4,691             5.5 %
Catastrophe losses and
ratio (2)                    $  5,380             32.3 %    $ 11,256            26.1 %    $  6,097             17.8 %    $ 17,841            21.0 %

Total property losses and
ratio excluding the effect
of prior accident year (1)   $ 14,418             86.7 %    $ 27,229            63.1 %    $ 26,370             77.0 %    $ 54,758            64.4 %
Effect of prior accident
year                           (2,563 )          (15.4 %)      6,021            14.0 %      (5,456 )          (15.9 %)      6,455             7.6 %
Total property losses and
ratio (2)                    $ 11,855             71.3 %    $ 33,250            77.1 %    $ 20,914             61.1 %    $ 61,213            72.0 %

Casualty
Total casualty losses and
ratio excluding the effect
of prior accident year (1)   $  2,307             43.0 %    $  3,358            53.8 %    $  4,880             49.6 %    $  6,764            53.9 %
Effect of prior accident
year                              (67 )           (1.3 %)         61             1.0 %        (514 )           (5.2 %)     (1,190 )          (9.5 %)
Total casualty losses and
ratio (2)                    $  2,240             41.8 %    $  3,419            54.7 %    $  4,366             44.4 %    $  5,574            44.4 %

Total
Total net losses and loss
adjustment expense and
total loss ratio excluding
the effect of prior
accident year (1)            $ 16,725             76.1 %    $ 30,587            61.9 %    $ 31,250             70.9 %    $ 61,522            63.0 %
Effect of prior accident
year                           (2,630 )          (12.0 %)      6,082            12.3 %    $ (5,970 )          (13.5 %)      5,265             5.4 %
Total net losses and loss
adjustment expense and
total loss ratio (2)         $ 14,095             64.1 %    $ 36,669            74.2 %    $ 25,280             57.4 %    $ 66,787            68.4 %


(1) Non-GAAP measure/ratio

(2) Most directly comparable GAAP measure/ratio

Premiums

See “Results of operations” above for a discussion of consolidated premiums.

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                          GLOBAL INDEMNITY GROUP, LLC

Other income (losses)

The Company recognized a loss of less than $0.1 million and income of $0.3
million for the quarters ended June 30, 2022 and 2021, respectively, and income
of $0.2 million and income of $0.5 million for the six months ended June 30,
2022 and 2021, respectively. Other income is primarily comprised of fee income
net of bank fees.

Loss Ratio

Current accident year claims and loss ratio are summarized as follows:

                           Quarters Ended                            Six Months Ended
                              June 30,                 %                 June 30,                 %
(Dollars in
thousands)               2022          2021         Change          2022          2021         Change
Property losses
Non-catastrophe        $   9,229     $  22,271         (58.6 %)   $  19,108     $  41,608         (54.1 %)
Catastrophe                5,189         4,958           4.7 %        7,262        13,150         (44.8 %)
Property losses           14,418        27,229         (47.0 %)      26,370        54,758         (51.8 %)
Casualty losses            2,307         3,358         (31.3 %)       4,880         6,764         (27.9 %)
Total accident year
losses                 $  16,725     $  30,587         (45.3 %)   $  31,250     $  61,522         (49.2 %)




                                 Quarters Ended                         Six Months Ended
                                    June 30,             Point              June 30,               Point
                               2022          2021        Change        2022           2021        Change
Current accident year loss
ratio:
Property
Non-catastrophe                   55.5 %       51.6 %        3.9          55.8 %        48.9 %         6.9
Catastrophe                       31.2 %       11.5 %       19.7          21.2 %        15.5 %         5.7
Property loss ratio               86.7 %       63.1 %       23.6          77.0 %        64.4 %        12.6
Casualty loss ratio               43.0 %       53.8 %      (10.8 )        49.6 %        53.9 %        (4.3 )
Total accident year loss
ratio                             76.1 %       61.9 %       14.2          70.9 %        63.0 %         7.9



The current accident year non-catastrophe property loss ratio increased by 3.9
points during the quarter ended June 30, 2022 as compared to the same period in
2021 recognizing higher claims frequency in Farm, Ranch & Stable business lines
partially offset by lower claims frequency in the specialty property lines and
lower claims severity in the property brokerage lines.

The current accident year non-catastrophe property loss ratio increased by 6.9
points during six months ended June 30, 2022 as compared to the same period in
2021 due to a higher loss ratio in the specialty property lines as well as
higher claims frequency and severity in the Farm, Ranch & Stable business lines.

The current accident year catastrophe loss ratio increased by 19.7 points during
the quarter ended June 30, 2022 as compared to the same period in 2021
recognizing higher claims frequency and severity in the specialty property lines
and Farm, Ranch & Stable business lines.

The current accident year catastrophe loss ratio increased by 5.7 points during
the six months ended June 30, 2022 as compared to the same period in 2021
reflecting higher claims severity in the Farm, Ranch & Stable business lines
partially offset by lower claims frequency and severity in the property
brokerage lines.

The current accident year casualty loss ratio improved by 10.8 points during the
quarter ended June 30, 2022 as compared to the same period in 2021 which
reflects that the premium has been running off and is down to $0.9 million in
net earned premiums for the specialty property lines, property brokerage, and
property and catastrophe reinsurance treaties in the quarter as well as lower
claims frequency in Farm, Ranch & Stable business lines.

The current accident year casualty loss ratio improved by 4.3 points during the
six months ended June 30, 2022 as compared to the same period in 2021 primarily
due to lower claims severity in the Farm, Ranch & Stable business lines
partially offset by higher claims severity in the specialty property lines.

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                          GLOBAL INDEMNITY GROUP, LLC

The calendar year loss ratio for the quarter and six months ended June 30, 2022
includes a decrease of $2.6 million, or 12.0 percentage points, and a decrease
of $6.0 million, or 13.5 percentage points, respectively related to reserve
development on prior accident years. The calendar year loss ratio for the
quarter and six months ended June 30, 2021 includes an increase of $6.1 million,
or 12.3 percentage points, and an increase of $5.3 million, or 5.4 percentage
points, respectively, related to reserve development on prior accident
years. Please see Note 7 of the notes to the consolidated financial statements
in Item 1 of Part I of this report for further discussion on prior accident year
development.

Expense Ratio

The expense ratio for the Company's Exited Lines increased by 6.4 points from
41.4% for the quarter ended June 30, 2021 to 47.8% for the quarter ended
June 30, 2022. The expense ratio for the Company's Exited Lines increased by 7.0
points from 41.4% for the six months ended June 30, 2021 to 48.4% for the six
months ended June 30, 2022. The increase in the expense ratio is primarily due
to the reduction in earned premiums resulting from the runoff of lines of
business that the Company is no longer writing.

COVID-19[feminine]

There is continued risk that legislation could be passed or there could be a
court ruling which would require the Company to cover business interruption
claims regardless of terms, exclusions including the virus exclusions contained
within the Company's Exited Lines' policies, or other conditions included in
these policies that would otherwise preclude coverage

COVID-19's lasting impacts could result in declines in business, non-payment of
premiums, and increases in claims that could adversely affect the Exited Lines'
business, financial condition, and results of operation.

Unallocated corporate items

The Company’s fixed income portfolio, excluding cash, continues to remain at a high level
quality with an average grade of A and a duration of 1.7 years.

Net Investment Income

                                   Quarters Ended                        Six Months Ended
                                      June 30,               %               June 30,               %
(Dollars in thousands)            2022         2021       Change         2022         2021       Change
Gross investment income (1)     $  2,541     $ 11,268       (77.4 %)   $  9,737     $ 21,817       (55.4 %)
Investment expenses                 (611 )       (635 )      (3.8 %)     (1,215 )     (1,348 )      (9.9 %)
Net investment income           $  1,930     $ 10,633       (81.8 %)   $  

8,522 $20,469 (58.4%)

(1) Excluding realized gains and losses

Gross investment income decreased by 77.4% and 55.4% for the quarter and six
months ended June 30, 2022 as compared to the same periods in 2021 primarily due
to decreased returns from alternative investments and a decrease in dividend
income as a result of the liquidation of the Company's common stock portfolio
during the first quarter of 2022. The proceeds from the sale of the common stock
portfolio as well as other proceeds were used to retire the 2047 Notes in April
2022.

Investment expenses decreased by 3.8% and 9.9% for the quarter and six months
ended June 30, 2022 as compared to the same periods in 2021 due to decreased
investment management expenses as a result of the liquidation of the Company's
common stock portfolio during the year.

At June 30, 2022, the Company held agency mortgage-backed securities with a
market value of $3.8 million. Excluding the agency mortgage-backed securities,
the average duration of the Company's fixed maturities portfolio was 1.8 years
as of June 30, 2022, compared with 4.7 years as of June 30, 2021.  Including
cash and short-term investments, the average duration of the Company's fixed
maturities portfolio, excluding agency mortgage-backed securities, was 1.7 years
and 4.5 years as of June 30, 2022 and June 30, 2021, respectively. Changes in
interest rates can cause principal payments on certain investments to extend or
shorten which can impact duration. The Company's embedded book yield on its
fixed maturities, not including cash, was 2.7% as of June 30, 2022, compared to
2.3% as of June 30, 2021. The embedded book yield on the $32.4 million of

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                          GLOBAL INDEMNITY GROUP, LLC

taxable municipal bonds in the Company's portfolio, was 3.1% at June 30, 2022,
compared to an embedded book yield of 3.0% on the Company's taxable municipal
bonds of $64.5 million at June 30, 2021.

Net realized investment gains (losses)

The components of net realized investment gains (losses) for the quarters and
six months completed June 30, 2022 and 2021 were as follows:

                                            Quarters Ended          Six Months Ended
                                               June 30,                 June 30,
(Dollars in thousands)                     2022        2021         2022         2021
Equity securities                        $ (2,415 )   $ 3,395     $  (3,760 )   $ 7,763
Fixed maturities                           (8,637 )       453       (11,876 )      (706 )
Derivatives                                 1,816         (15 )       6,540         595

Other-than-temporary impairment losses (680 ) – (26,205 ) –
Net realized investment gains (losses) ($9,916) $3,833 ($35,301) $7,652


In response to a rising interest rate environment, the Company took action early
in April 2022 to shorten the duration of its fixed maturities portfolio. The
Company identified fixed maturities securities with a weighted average life of
five years or greater as having an intent to sell. Most of the proceeds from the
sale of these securities were reinvested into fixed income investments with
maturities of two years and less.

See Note 2 of the notes to the consolidated financial statements in Item 1 of
Part I of this report for an analysis of total investment return on a pre-tax
basis for the quarters and six months ended June 30, 2022 and 2021.

Corporate expenses and other operating expenses

Corporate and other operating expenses consist of outside legal fees, other
professional fees, directors' fees, management fees & advisory fees, salaries
and benefits for holding company personnel, development costs for new products,
and taxes incurred which are not directly related to operations. Corporate and
other operating expenses were $3.0 million and $6.3 million during the quarters
ended June 30, 2022 and 2021, respectively, and $7.7 million and $10.6 million
during the six months ended June 30, 2022 and 2021, respectively. The decrease
in corporate expenses was primarily due to the Company receiving an employee
retention credit under the CARES Act of $2.7 million. This credit, which reduced
compensation cost, was received in May 2022.

Interest charges

Interest expense was $0.4 million and $2.7 million during the quarters ended
June 30, 2022 and 2021, respectively, $3.0 million and $5.3 million during the
six months ended June 30, 2022 and 2021, respectively. The reduction in interest
expense was due to the redemption of the 2047 Notes on April 15, 2022.

Tax benefit

Income tax benefit was $0.6 million for the quarter ended June 30, 2022 compared
with income tax expense of $0.8 million for the quarter ended June 30, 2021. The
increase in the income tax benefit is primarily due to investment losses
incurred by the Company's U.S. subsidiaries during the quarter ended June 30,
2022.

Income tax benefit was $4.0 million for the six months ended June 30, 2022
compared with an income tax expense of $0.6 million for the six months ended
June 30, 2021. The increase in the income tax benefit is primarily due to
investment losses incurred by the Company's U.S. subsidiaries during the six
months ended June 30, 2021.

See Note 6 of the notes to the consolidated financial statements in Section 1 of
Part I of this report for a comparison of income tax between periods.

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                          GLOBAL INDEMNITY GROUP, LLC

Net profit (net loss)

The factors described above resulted in a net loss of $12.2 million and neat
income from $6.4 million for completed quarters June 30, 2022 and 2021,
respectively and a net loss of $26.9 million and the net income of $11.9 million for
the six months have ended June 30, 2022 and 2021, respectively.

                        Liquidity and Capital Resources

Sources and uses of funds

Global Indemnity Group, LLC is a holding company. Its principal asset is its
ownership of the shares of its direct and indirect subsidiaries, including those
of its insurance companies: United National Insurance Company, Diamond State
Insurance Company, Penn-America Insurance Company, Penn-Star Insurance Company,
Penn-Patriot Insurance Company, and American Reliable Insurance Company.

Global Indemnity Group, LLC's short term and long term liquidity needs include
but are not limited to the payment of corporate expenses, debt service payments,
distributions to shareholders, and share repurchases. The Company also has
commitments in the form of operating leases, commitments to fund limited
liability investments, and unpaid losses and loss expense obligations. In order
to meet its short term and long term needs, Global Indemnity Group, LLC's
principal sources of cash includes investment income, dividends from
subsidiaries, other permitted disbursements from its direct and indirect
subsidiaries, reimbursement for equity awards granted to employees and
intercompany borrowings. The principal sources of funds at these direct and
indirect subsidiaries include underwriting operations, investment income,
proceeds from sales and redemptions of investments, capital contributions,
intercompany borrowings, and dividends from subsidiaries. Funds are used
principally by these operating subsidiaries to pay claims and operating
expenses, to make debt payments, fund margin requirements on interest rate swap
agreements, to purchase investments, and to make distribution payments. In
addition, the Company periodically reviews opportunities related to business
acquisitions and as a result, liquidity may be needed in the future.

GBLI Holdings, LLC is a holding company which is a wholly-owned subsidiary of
Penn-Patriot Insurance Company. GBLI Holdings, LLC's principal asset is its
ownership of the shares of its direct and indirect subsidiaries which include
United National Insurance Company, Diamond State Insurance Company, Penn-America
Insurance Company, Penn-Star Insurance Company, and American Reliable Insurance
Company. GBLI Holdings, LLC is dependent on dividends from its subsidiaries to
meet its debt obligations as well as corporate expense obligations.

As of June 30, 2022, the Company also had future funding commitments of $31.2
million related to investments that are currently in their harvest period and it
is unlikely that a capital call will be made.

The future liquidity of both Global Indemnity Group, LLC and GBLI Holdings, LLC
is dependent on the ability of its subsidiaries to pay dividends. Global
Indemnity Group, LLC and GBLI Holdings, LLC's insurance companies are restricted
by statute as to the amount of dividends that they may pay without the prior
approval of regulatory authorities. The dividend limitations imposed by state
laws are based on the statutory financial results of each insurance company that
are determined by using statutory accounting practices that differ in various
respects from accounting principles used in financial statements prepared in
conformity with GAAP. See "Regulation - Statutory Accounting Principles" in Item
1 of Part I of the Company's 2021 Annual Report on Form 10-K. Key differences
relate to, among other items, deferred acquisition costs, limitations on
deferred income taxes, reserve calculation assumptions and surplus notes. See
Note 21 of the notes to the consolidated financial statements in Item 8 of Part
II of the Company's 2021 Annual Report on Form 10-K for further information on
dividend limitations related to the Insurance Companies. In April, 2022, the
United National insurance companies, Penn-America insurance companies, and
American Reliable Insurance Company paid dividends in the amount of $4.5
million, $7.5 million, and $22.5 million, respectively.

Cash flow

Sources of operating funds consist primarily of net written premiums and
investment income. Funds are used primarily to pay claims and operating expenses
and to purchase investments. As a result of the distribution policy, funds may
also be used to pay distributions to shareholders of the Company.


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                          GLOBAL INDEMNITY GROUP, LLC

The reconciliation of the Company’s net income (loss) to the net cash provided by
operations is generally influenced by the following:

• the fact that the Company collects premiums, net of commissions, in advance

      of losses paid;


  • the timing of the Company's settlements with its reinsurers; and


  • the timing of the Company's loss payments.



Net cash provided by operating activities was $18.5 million and $47.5 million
for the six months ended June 30, 2022 and 2021, respectively. The decrease in
operating cash flows of approximately $29.0 million from the prior year was
primarily a net result of the following items:

                                              Six Months Ended June 30,
(Dollars in thousands)                          2022               2021         Change
Net premiums collected                      $     276,206       $  308,353     $ (32,147 )
Net losses paid                                  (136,756 )       (148,453 )      11,697
Underwriting and corporate expenses              (130,981 )       (126,144 )      (4,837 )
Net investment income                              15,116           18,952        (3,836 )
Interest paid                                      (5,126 )         (5,220 )          94
Net cash provided by operating activities   $      18,459       $   47,488  

($29,029)

View Consolidated Statements of Cash Flows in Consolidated Accounts
statements in point 1 of part I of this report for details concerning
Company investment and financing activities.

Liquidity

Sale of farm, ranch and stable renewal rights and sale of American
Reliable insurance company

On August 8, 2022, the Company sold the renewal rights related to all business
lines within its Farm, Ranch & Stable segment for business written on or after
August 8, 2022 to Everett Cash Mutual Insurance Company.  The Company will
retain the unearned premium reserves for business written prior to August 8,
2022.

Everett Cash Mutual Insurance Company is also acquiring the Company's wholly
owned subsidiary, American Reliable Insurance Company, for book value which is
expected to be $10.0 million at the time of closing.  The transaction is subject
to receiving regulatory approval which is expected to be received during the 4th
quarter of 2022. Under the agreements, total consideration to be paid by Everett
Cash Mutual Insurance Company is $40 million.

COVID-19[feminine]

The Company's liquidity could be negatively impacted by the cancellation,
delays, or non-payment of premiums related to the ongoing COVID-19 pandemic and
its lasting impacts. There is continued risk that legislation could be passed or
there could be a court ruling which would require the Company to cover business
interruption claims regardless of terms, exclusions including the virus
exclusions contained within the Company's Commercial Specialty and Farm, Ranch &
Stable policies, or other conditions included in policies that would otherwise
preclude coverage which would negatively impact liquidity. In addition, the
liquidity of the Company's investment portfolio could be negatively impacted by
disruption experienced in global financial markets. Management is taking actions
it considers prudent to minimize the impact on the Company's liquidity. However,
given the ongoing uncertainty surrounding the duration, magnitude and geographic
reach of COVID-19, the Company is regularly evaluating the impact of COVID-19 on
its liquidity.

Distributions

The Board of Directors approved a distribution payment of $0.25 per common share
to all shareholders of record on the close of business on March 21, 2022 and
June 20, 2022. Distributions paid to common shareholders were $7.3 million
during the six months ended June 30, 2022.  In addition, distributions of $0.2
million were paid to Global Indemnity Group, LLC's preferred shareholder during
the six months ended June 30, 2022.

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                          GLOBAL INDEMNITY GROUP, LLC

Investment portfolio

Due to the shorter duration, a significantly larger portion of the investment portfolio will be
ripen annually.

On May 18, 2022the company provided the Credit Funds, LLC with formal
withdrawal requests in their entirety. As stated in the fund’s offering documents,
redemption proceeds are transferred to the registered account within 30 days of June
30, 2022
. Product of $99.6 million should be invested in
income investments with maturities of two years or less.

Other than the items discussed in the preceding paragraphs, there have been no
material changes to the Company's liquidity during the quarter and six months
ended June 30, 2022. Please see Item 7 of Part II in the Company's 2021 Annual
Report on Form 10-K for information regarding the Company's liquidity.

Capital resources

Investment portfolio

In response to a rising interest rate environment, the Company took action early
in April 2022 to shorten the duration of its fixed maturities portfolio. The
Company identified fixed maturities securities with a weighted average life of
five years or greater as having an intent to sell. Most of the proceeds from the
sale of these securities are being reinvested into fixed income investments with
maturities of two years and less.

Debt refund

On April 15, 2022, the Company redeemed the entire $130 million in aggregate
principal amount of the outstanding 2047 Notes plus accrued and unpaid interest
on the 2047 Notes redeemed to, but not including the Redemption Date of April
15, 2022. The funds to redeem the debt were primarily obtained through the sale
of the Company's equity portfolio in the amount of $75.9 million, $32.0 million
in dividends from insurance company subsidiaries, $18.4 million from
distributions received from private equity investments, and the remainder from
its subsidiary, GBLI Holdings, LLC.

Business-to-business pooling agreement

The Company's U.S. insurance company participate in an intercompany pooling
arrangement whereby premiums, losses, and expenses are shared pro rata amongst
the U.S. insurance companies. American Reliable currently comprises 30% of the
pool. Prior to the sale of American Reliable, the intercompany pooling agreement
will be amended. American Reliable will be removed from the pool and its 30%
participation in the business and capital will be allocated to the Company's
remaining five insurance companies.

For more information on the sale of American Reliable, please see the
liquidity section above.

Other than the item discussed in the preceding paragraphs, there have been no
material changes to the Company's capital resources during the quarter and six
months ended June 30, 2022. Please see Item 7 of Part II in the Company's 2021
Annual Report on Form 10-K for information regarding the Company's capital
resources.

                         Off Balance Sheet Arrangements

The Company has no off-balance sheet arrangements.

              Cautionary Note Regarding Forward-Looking Statements

Some of the statements under "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and elsewhere in this report may include
forward-looking statements within the meaning of Section 21E of the Security
Exchange Act of 1934, as amended, that reflect the Company's current views with
respect to future events and financial performance. Forward-looking statements
are statements that are not historical facts. These statements can be identified
by the use of forward-looking terminology such as "believe," "expect," "may,"
"will," "should," "project," "plan," "seek," "intend," or "anticipate" or the
negative thereof or comparable terminology, and include discussions of strategy,
financial projections and estimates and their underlying assumptions, statements
regarding plans, objectives, expectations or

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                          GLOBAL INDEMNITY GROUP, LLC

consequences of identified transactions or natural disasters, and declarations
on the future performance, operations, products and services of
businesses.

The Company's business and operations are and will be subject to a variety of
risks, uncertainties and other factors. Consequently, actual results and
experience may materially differ from those contained in any forward-looking
statements. See "Risk Factors" in Item 1A of Part I in the Company's 2021 Annual
Report on Form 10-K for risks, uncertainties and other factors that could cause
actual results and experience to differ from those projected. The Company's
forward-looking statements speak only as of the date of this report or as of the
date they were made. The Company undertakes no obligation to publicly update or
review any forward-looking statement, whether as a result of new information,
future developments or otherwise.
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