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Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries (Tables)

9 Months Ended

Sep. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets at September 30, 2020 (Dollars in thousands)	Global Indemnity Group, LLC (Parent co- obligor)			GBLI Holdings, LLC (Subsidiary co-obligor)			Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1)			Consolidating Adjustments (2)			Global Indemnity Group, LLC Consolidated
ASSETS

Total investments	$	212,050		$	48,940		$	1,156,475		$	—		$	1,417,465
Cash and cash equivalents		13,765			2,575			20,871			—			37,211
Investments in subsidiaries		491,851			387,913			339,384			(1,219,148	)		—
Due from subsidiaries and affiliates		(3,999	)		(7,522	)		11,521			—			—
Notes receivable – affiliate		11,283			—			—			(11,283	)		—
Interest receivable – affiliate		16			—			—			(16	)		—
Premiums receivable, net		—			—			109,820			—			109,820
Reinsurance receivables, net		—			—			112,633			—			112,633
Funds held by ceding insurers		—			—			46,894			—			46,894
Federal income taxes receivable		—			2,892			(2,892	)		—			—
Deferred federal income taxes		—			38,805			(3,505	)		—			35,300
Deferred acquisition costs		—			—			67,470			—			67,470
Intangible assets		—			—			21,094			—			21,094
Goodwill		—			—			6,521			—			6,521
Prepaid reinsurance premiums		—			—			15,558			—			15,558
Other assets		13,240			19,444			40,854			(3,747	)		69,791
Total assets	$	738,206		$	493,047		$	1,942,698		$	(1,234,194	)	$	1,939,757

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities:
Unpaid losses and loss adjustment expenses	$	—		$	—		$	669,930		$	—		$	669,930
Unearned premiums		—			—			304,074			—			304,074
Ceded balances payable		—			—			9,576			—			9,576
Payable for Securities		2,207			—			3,423			—			5,630
Contingent commissions		—			—			11,329			—			11,329
Debt		—			130,000			—			(3,747	)		126,253
Notes payable – affiliates		—			—			11,283			(11,283	)		—
Accrued interest payable – affiliates		—			—			16			(16	)		—
Other liabilities		15,286			23,663			53,303			—			92,252
Total liabilities		17,493			153,663			1,062,934			(15,046	)		1,219,044

Shareholders’ equity
Total shareholders’ equity		720,713			339,384			879,764			(1,219,148	)		720,713

Total liabilities and shareholders’ equity	$	738,206		$	493,047		$	1,942,698		$	(1,234,194	)	$	1,939,757

(1)	Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations

(2)	Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments

Condensed Consolidating Balance Sheets at December 31, 2019 (Dollars in thousands)	Global Indemnity Limited (Parent co-obligor)			GBLI Holdings, LLC (Subsidiary co-obligor)			Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1)			Consolidating Adjustments (2)			Global Indemnity Limited Consolidated
ASSETS

Total investments	$	44,468		$	257,317		$	1,261,757		$	—		$	1,563,542
Cash and cash equivalents		977			2,663			40,631			—			44,271
Investments in subsidiaries		1,218,491			355,777			434,278			(2,008,546	)		—
Due from subsidiaries and affiliates		(3,612	)		(3,965	)		7,577			—			—
Notes receivable – affiliate		—			80,049			445,498			(525,547	)		—
Interest receivable – affiliate		—			5,014			17,258			(22,272	)		—
Premiums receivable, net		—			—			118,035			—			118,035
Reinsurance receivables, net		—			—			83,938			—			83,938
Funds held by ceding insurers		—			—			48,580			—			48,580
Federal income taxes receivable		—			14,197			(3,208	)		—			10,989
Deferred federal income taxes		—			31,833			(756	)		—			31,077
Deferred acquisition costs		—			—			70,677			—			70,677
Intangible assets		—			—			21,491			—			21,491
Goodwill		—			—			6,521			—			6,521
Prepaid reinsurance premiums		—			—			16,716			—			16,716
Other assets		9,394			12,622			45,021			(6,989	)		60,048
Total assets	$	1,269,718		$	755,507		$	2,614,014		$	(2,563,354	)	$	2,075,885

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities:
Unpaid losses and loss adjustment expenses	$	—		$	—		$	630,181		$	—		$	630,181
Unearned premiums		—			—			314,861			—			314,861
Ceded balances payable		—			—			20,404			—			20,404
Payable for securities purchased		—			—			850			—			850
Contingent commissions		—			—			11,928			—			11,928
Debt		—			303,629			—			(6,989	)		296,640
Notes payable – affiliates		520,498			—			5,049			(525,547	)		—
Accrued interest payable – affiliates		20,343			—			1,929			(22,272	)		—
Other liabilities		2,068			17,600			54,544			—			74,212
Total liabilities		542,909			321,229			1,039,746			(554,808	)		1,349,076

Shareholders’ equity
Total shareholders’ equity		726,809			434,278			1,574,268			(2,008,546	)		726,809

Total liabilities and shareholders’ equity	$	1,269,718		$	755,507		$	2,614,014		$	(2,563,354	)	$	2,075,885

(1)	Includes all other subsidiaries of Global Indemnity Limited and eliminations

(2)	Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations for the Quarter Ended September 30, 2020 (Dollars in thousands)	Global Indemnity Group, LLC (Parent co-obligor)(3)			GBLI Holdings, LLC (Subsidiary co-obligor)			Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1)			Consolidating Adjustments (2)			Global Indemnity Group, LLC Consolidated
Revenues:
Net earned premiums	$	—		$	—		$	140,302		$	—		$	140,302
Net investment income		1,300			4,642			5,976			(172	)		11,746
Net realized investment gains		451			4,107			2,765			—			7,323
Other income (loss)		(1	)		—			543			—			542
Total revenues		1,750			8,749			149,586			(172	)		159,913
Losses and Expenses:
Net losses and loss adjustment expenses		—			—			97,148			—			97,148
Acquisition costs and other underwriting expenses		—			—			53,268			—			53,268
Corporate and other operating expenses		17,324			3,662			210			—			21,196
Interest expense		179			3,569			44			(172	)		3,620
Loss on extinguishment of debt		3,060			—			—			—			3,060
Income (loss) before equity in net income (loss) of subsidiaries and income taxes		(18,813	)		1,518			(1,084	)		—			(18,379	)
Equity in net income (loss) of subsidiaries		3,643			(10,312	)		(5,784	)		12,453			—
Loss before income taxes		(15,170	)		(8,794	)		(6,868	)		12,453			(18,379	)
Income tax benefit		—			(3,010	)		(199	)		—			(3,209	)
Net loss	$	(15,170	)	$	(5,784	)	$	(6,669	)	$	12,453		$	(15,170	)

(1)	Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations

(2)	Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments

(3) Includes activity for Global Indemnity Limited from July 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020

Condensed Consolidating Statements of Operations for the Quarter Ended September 30, 2019 (Dollars in thousands)	Global Indemnity Limited (Parent co-obligor)			GBLI Holdings, LLC (Subsidiary co-obligor)			Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1)			Consolidating Adjustments (2)			Global Indemnity Limited Consolidated
Revenues:
Net earned premiums	$	—		$	—		$	133,312		$	—		$	133,312
Net investment income		393			2,798			8,442			(285	)		11,348
Net realized investment gains (losses)		(101	)		(3,525	)		936			—			(2,690	)
Other income		—			—			264			—			264
Total revenues		292			(727	)		142,954			(285	)		142,234
Losses and Expenses:
Net losses and loss adjustment expenses		—			—			73,583			—			73,583
Acquisition costs and other underwriting expenses		—			—			53,366			—			53,366
Corporate and other operating expenses		1,320			2,159			379			—			3,858
Interest expense		278			4,957			73			(285	)		5,023
Income (loss) before equity in net income (loss) of subsidiaries and income taxes		(1,306	)		(7,843	)		15,553			—			6,404
Equity in net income (loss) of subsidiaries		8,027			1,699			(4,462	)		(5,264	)		—
Income (loss) before income taxes		6,721			(6,144	)		11,091			(5,264	)		6,404
Income tax expense (benefit)		—			(1,682	)		1,365			—			(317	)
Net income (loss)	$	6,721		$	(4,462	)	$	9,726		$	(5,264	)	$	6,721

(1)	Includes all other subsidiaries of Global Indemnity Limited and eliminations

(2)	Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments

Condensed Consolidating Statements of Operations for the Nine Months Ended September 30, 2020 (Dollars in thousands)	Global Indemnity Group, LLC (Parent co-obligor)(3)			GBLI Holdings, LLC (Subsidiary co-obligor)			Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1)			Consolidating Adjustments (2)			Global Indemnity Group, LLC Consolidated
Revenues:
Net earned premiums	$	—		$	—		$	426,617		$	—		$	426,617
Net investment income (loss)		1,898			(3,870	)		22,203			(715	)		19,516
Net realized investment gains (losses)		(2,295	)		(36,600	)		16,563			—			(22,332	)
Other income (loss)		(1	)		19			1,455			—			1,473
Total revenues		(398	)		(40,451	)		466,838			(715	)		425,274
Losses and Expenses:
Net losses and loss adjustment expenses		—			—			242,092			—			242,092
Acquisition costs and other underwriting expenses		—			—			163,258			—			163,258
Corporate and other operating expenses		23,466			10,143			428			—			34,037
Interest expense		732			13,005			175			(715	)		13,197
Loss on extinguishment of debt		3,060			—			—			—			3,060
Income (loss) before equity in net income (loss) of subsidiaries and income taxes		(27,656	)		(63,599	)		60,885			—			(30,370	)
Equity in net income (loss) of subsidiaries		5,459			22,509			(25,649	)		(2,319	)		—
Income (loss) before income taxes		(22,197	)		(41,090	)		35,236			(2,319	)		(30,370	)
Income tax expense (benefit)		—			(15,441	)		7,268			—			(8,173	)
Net income (loss)	$	(22,197	)	$	(25,649	)	$	27,968		$	(2,319	)	$	(22,197	)

(1)	Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations

(2)	Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments

(3) Includes activity for Global Indemnity Limited from January 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020

Condensed Consolidating Statements of Operations for the Nine Months Ended September 30, 2019 (Dollars in thousands)	Global Indemnity Limited (Parent co-obligor)			GBLI Holdings, LLC (Subsidiary co-obligor)			Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1)		Consolidating Adjustments (2)			Global Indemnity Limited Consolidated
Revenues:
Net earned premiums	$	—		$	—		$	383,602	$	—		$	383,602
Net investment income		1,764			5,743			25,747		(861	)		32,393
Net realized investment gains		298			7,969			3,023		—			11,290
Other income		—			30			1,244		—			1,274
Total revenues		2,062			13,742			413,616		(861	)		428,559
Losses and Expenses:
Net losses and loss adjustment expenses		—			—			201,979		—			201,979
Acquisition costs and other underwriting expenses		—			—			153,643		—			153,643
Corporate and other operating expenses		4,306			6,406			990		—			11,702
Interest expense		829			14,875			245		(861	)		15,088
Income (loss) before equity in net income of subsidiaries and income taxes		(3,073	)		(7,539	)		56,759		—			46,147
Equity in net income of subsidiaries		44,057			16,597			10,903		(71,557	)		—
Income before income taxes		40,984			9,058			67,662		(71,557	)		46,147
Income tax expense (benefit)		—			(1,845	)		7,008		—			5,163
Net income	$	40,984		$	10,903		$	60,654	$	(71,557	)	$	40,984

(1)	Includes all other subsidiaries of Global Indemnity Limited and eliminations

(2)	Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments

Schedule of Condensed Consolidating Statements of Comprehensive Income

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Quarter Ended September 30, 2020 (Dollars in thousands)	Global Indemnity Group, LLC (Parent co-obligor)(3)			GBLI Holdings, LLC (Subsidiary co-obligor)			Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1)			Consolidating Adjustments (2)			Global Indemnity Group, LLC Consolidated
Net loss	$	(15,170	)	$	(5,784	)	$	(6,669	)	$	12,453		$	(15,170	)

Other comprehensive income, net of tax:
Unrealized holding gains (losses)		(1,310	)		(1,049	)		1,911			—			(448	)
Equity in other comprehensive income of unconsolidated subsidiaries		(561	)		1,596			603			(1,638	)		—
Reclassification adjustment for gains included in net income		(102	)		56			(2,058	)		—			(2,104	)
Unrealized foreign currency translation gains		—			—			579			—			579
Other comprehensive income, net of tax		(1,973	)		603			1,035			(1,638	)		(1,973	)

Comprehensive loss, net of tax	$	(17,143	)	$	(5,181	)	$	(5,634	)	$	10,815		$	(17,143	)

(1)	Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations

(2)	Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments

(3) Includes activity for Global Indemnity Limited from July 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Quarter Ended September 30, 2019 (Dollars in thousands)	Global Indemnity Limited (Parent co-obligor)		GBLI Holdings, LLC (Subsidiary co-obligor)			Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1)			Consolidating Adjustments (2)			Global Indemnity Limited Consolidated
Net income (loss)	$	6,721	$	(4,462	)	$	9,726		$	(5,264	)	$	6,721

Other comprehensive income, net of tax:
Unrealized holding gains (losses)		—		—			9,421			—			9,421
Equity in other comprehensive income of unconsolidated subsidiaries		8,772		4,711			4,703			(18,186	)		—
Portion of other-than-temporary impairment losses recognized in other comprehensive income		—		—			(2	)		—			(2	)
Reclassification adjustment for gains included in net income		—		(8	)		(839	)		—			(847	)
Unrealized foreign currency translation losses		—		—			200			—			200
Other comprehensive income, net of tax		8,772		4,703			13,483			(18,186	)		8,772

Comprehensive income, net of tax	$	15,493	$	241		$	23,209		$	(23,450	)	$	15,493

(1)	Includes all other subsidiaries of Global Indemnity Limited and eliminations

(2)	Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine Months Ended September 30, 2020 (Dollars in thousands)	Global Indemnity Group, LLC (Parent co-obligor)(3)			GBLI Holdings, LLC (Subsidiary co-obligor)			Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1)			Consolidating Adjustments (2)			Global Indemnity Group, LLC Consolidated
Net income (loss)	$	(22,197	)	$	(25,649	)	$	27,968		$	(2,319	)	$	(22,197	)

Other comprehensive income, net of tax:
Unrealized holding gains		322			(257	)		30,683			—			30,748
Equity in other comprehensive income (loss) of unconsolidated subsidiaries		17,891			8,643			8,405			(34,939	)		—
Reclassification adjustment for (gains) losses included in net income		(102	)		19			(13,122	)		—			(13,205	)
Unrealized foreign currency translation gains		—			—			568			—			568
Other comprehensive income, net of tax		18,111			8,405			26,534			(34,939	)		18,111

Comprehensive income (loss), net of tax	$	(4,086	)	$	(17,244	)	$	54,502		$	(37,258	)	$	(4,086	)

(1)	Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations

(2)	Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments

(3) Includes activity for Global Indemnity Limited from January 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine Months Ended September 30, 2019 (Dollars in thousands)	Global Indemnity Limited (Parent co-obligor)			GBLI Holdings, LLC (Subsidiary co-obligor)		Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1)			Consolidating Adjustments (2)			Global Indemnity Limited Consolidated
Net income	$	40,984		$	10,903	$	60,654		$	(71,557	)	$	40,984

Other comprehensive income, net of tax:
Unrealized holding gains		880			1,567		46,436			—			48,883
Equity in other comprehensive income (loss) of unconsolidated subsidiaries		46,226			24,201		26,003			(96,430	)		—
Portion of other-than-temporary impairment losses recognized in other comprehensive losses		—			—		(4	)		—			(4	)
Reclassification adjustment for (gains) losses included in net income		(561	)		235		(2,339	)		—			(2,665	)
Unrealized foreign currency translation gains		—			—		331			—			331
Other comprehensive income, net of tax		46,545			26,003		70,427			(96,430	)		46,545

Comprehensive income, net of tax	$	87,529		$	36,906	$	131,081		$	(167,987	)	$	87,529

(1)	Includes all other subsidiaries of Global Indemnity Limited and eliminations

(2)	Includes Parent co-obligor and subsidiary co-obligor consolidating adjustments

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows for the Nine Months Ended September 30, 2020 (Dollars in thousands)	Global Indemnity Group, LLC (Parent co-obligor)(2)			GBLI Holdings, LLC (Subsidiary co-obligor)			Other Global Indemnity Group, LLC Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1)			Global Indemnity Group, LLC Consolidated
Cash flows from operating activities:
Net cash provided by (used for) operating activities	$	(10,423	)	$	1,526		$	42,833		$	33,936

Cash flows from investing activities:
Proceeds from sale of fixed maturities		18,451			36,898			545,613			600,962
Proceeds from sale of equity securities		103,002			460,924			—			563,926
Proceeds from maturity of fixed maturities		280			—			89,595			89,875
Proceeds from other invested assets		1,700			123			—			1,823
Amounts paid in connection with derivatives		—			(20,130	)		—			(20,130	)
Purchases of fixed maturities		(185,692	)		(50,283	)		(466,752	)		(702,727	)
Purchases of equity securities		(107,228	)		(286,735	)		—			(393,963	)
Purchases of other invested assets		—			(297	)		—			(297	)
Net cash provided by (used for) investing activities		(169,487	)		140,500			168,456			139,469

Cash flows from financing activities:
Net borrowings under margin borrowing facility		—			(73,629	)		—			(73,629	)
Proceeds (repayment) of note to affiliates		—			5,049			(5,049	)		—
Dividends paid to shareholders		(10,683	)		—			—			(10,683	)
Issuance of series A cumulative fixed rate preferred shares		4,000			—			—			4,000
Dividends from subsidiaries		226,000			—			(226,000	)		—
Capital contribution		(26,466	)		26,466			—			—
Purchase of class A common shares		(153	)		—			—			(153	)
Redemption of subordinated notes		—			(100,000	)		—			(100,000	)
Net cash provided by (used for) financing activities		192,698			(142,114	)		(231,049	)		(180,465	)

Net change in cash and cash equivalents		12,788			(88	)		(19,760	)		(7,060	)
Cash and cash equivalents at beginning of period		977			2,663			40,631			44,271
Cash and cash equivalents at end of period	$	13,765		$	2,575		$	20,871		$	37,211

(1)

Includes all other subsidiaries of Global Indemnity Group, LLC and eliminations

(2)

Includes activity for Global Indemnity Limited from January 1, 2020 to August 27, 2020 and activity for Global Indemnity Group, LLC from August 28, 2020 to September 30, 2020

Condensed Consolidating Statements of Cash Flows for the Nine Months Ended September 30, 2019 (Dollars in thousands)	Global Indemnity Limited (Parent co-obligor)			GBLI Holdings, LLC (Subsidiary co-obligor)			Other Global Indemnity Limited Subsidiaries and Eliminations (non-co-obligor subsidiaries) (1)			Global Indemnity Limited Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	1,718		$	2,593		$	41,619		$	45,930

Cash flows from investing activities:
Proceeds from sale of fixed maturities		48,393			101,525			492,131			642,049
Proceeds from sale of equity securities		7,300			198,912			—			206,212
Proceeds from maturity of fixed maturities		—			—			113,480			113,480
Proceeds from other invested assets		3,161			11,040			—			14,201
Amounts paid in connection with derivatives		—			(12,516	)		—			(12,516	)
Purchases of fixed maturities		(10,548	)		(24,280	)		(666,856	)		(701,684	)
Purchases of equity securities		(40,564	)		(285,408	)		—			(325,972	)
Purchases of other invested assets		—			(3,500	)		—			(3,500	)
Net cash provided by (used for) investing activities		7,742			(14,227	)		(61,245	)		(67,730	)

Cash flows from financing activities:
Net borrowings under margin borrowing facility		—			8,561			—			8,561
Dividends paid to shareholders		(7,130	)		—			—			(7,130	)
Purchase of class A common shares		(947	)		—			—			(947	)
Net cash provided by (used for) financing activities		(8,077	)		8,561			—			484

Net change in cash and cash equivalents		1,383			(3,073	)		(19,626	)		(21,316	)
Cash and cash equivalents at beginning of period		2,221			26,039			71,237			99,497
Cash and cash equivalents at end of period	$	3,604		$	22,966		$	51,611		$	78,181

(1)	Includes all other subsidiaries of Global Indemnity Limited and eliminations