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Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information

13. Segment Information

On December 31, 2024, the Company executed an extensive internal business reorganization that marked a significant milestone, positioning the Company for growth and enhanced operational efficiency, increased statutory capital, and more efficient capital management resulting from de-stacking of the insurance companies.

As a result of this reorganization, the Company’s reportable segments are now structured under two holding companies:

•
Katalyx Holdings LLC includes (i) four agencies focused on sourcing, underwriting, and servicing primary and reinsurance business: Penn-America Insurance Services, LLC, Valyn Re LLC, J.H. Ferguson & Associates, LLC, which includes the Vacant Express division, and Collectibles Insurance Services, LLC and (ii) three specialized insurance product and service businesses: Kaleidoscope Insurance Technologies, Inc., a developer of proprietary underwriting and policy systems supporting Katalyx Holdings agencies and broader digital initiatives; Sayata, an artificial intelligence-enabled insurance marketplace; and Liberty Insurance Adjustment Agency, Inc., a provider of claims evaluation, adjustment, and related services.
•
Belmont Holdings GX, Inc. includes five statutory insurance carriers: Penn-Patriot Insurance Company, Diamond State Insurance Company, Penn-Star Insurance Company, Penn-America Insurance Company, and United National Insurance Company, each of which are rated “A” (Excellent) by AM Best.

In the first quarter of 2025, the Company realigned the composition of its reportable segments to reflect changes in how the Company now manages its operations. The Company changed the level at which its chief operating decision maker (“CODM”), the Chief Executive Officer of Global Indemnity Group, LLC, regularly reviews operating results and allocate resources to now include Agency and Insurance Services. As a result of these changes, the Company has three reportable segments:

•
Agency and Insurance Services includes (i) four agencies focused on sourcing, underwriting, and servicing primary and reinsurance business: Penn-America Insurance Services, LLC, Valyn Re LLC (formed in October
2025 to provide proportional treaty coverage for both commercial and personal lines), J.H. Ferguson & Associates, LLC, which includes the Vacant Express division, and Collectibles Insurance Services, LLC and (ii) three specialized insurance product and service businesses: Kaleidoscope Insurance Technologies, Inc., a developer of proprietary underwriting and policy systems supporting Katalyx Holdings agencies and broader digital initiatives; Sayata, an artificial intelligence-enabled insurance marketplace; and Liberty Insurance Adjustment Agency, Inc., a provider of claims evaluation, adjustment, and related services.
•
Belmont Insurance Companies - Core (“Belmont Core”), previously known as the Penn-America segment, consists of insurance company operations for ongoing direct insurance products and assumed reinsurance products, which are offered in the excess and surplus lines marketplace.
•
Belmont Insurance Companies - Non-Core (“Belmont Non-Core”), previously known as the Non-Core Operations segment, consists of insurance company operations for lines of business that have been de-emphasized or are no longer being written. The primary activities of Belmont Non-Core are servicing the run-off of polices/treaties, adjusting claims and estimating loss reserves on de-emphasized and terminated business.

The entities within the Agency and Insurance Services segment other than Sayata executed new affiliated service agreements with Belmont Holdings GX, Inc. and its insurance company subsidiaries effective January 1, 2025. As a result, there are no revenues and expenses for Agency and Insurance Services in the comparable period in 2024.

The Company's segments are reported on a stand-alone basis. Intercompany transactions are eliminated in consolidation.

The Company analyzes the operating performance of each segment using the segment’s income (loss). Segment income (loss) does not equate to “net income (loss)” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the CODM to evaluate segment performance and allocate resources, and consistent with authoritative guidance, is the measure of segment performance presented below.

 

The following are tabulations of business segment information for the quarters and nine months ended September 30, 2025 and 2024. Corporate information is included to reconcile segment data to the consolidated financial statements. Segment results for the quarter and nine months ended September 30, 2024 have been recast to conform to the new reportable segments.

 

Quarter Ended September 30, 2025
(Dollars in thousands)

 

Agency and Insurance Services

 

 

Belmont Core

 

 

Belmont
Non-Core

 

 

Elimination

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

—

 

 

$

108,541

 

 

$

(172

)

 

$

—

 

 

$

108,369

 

Net written premiums

 

$

—

 

 

$

105,708

 

 

$

(165

)

 

$

—

 

 

$

105,543

 

Net earned premiums

 

$

—

 

 

$

99,388

 

 

$

282

 

 

$

—

 

 

$

99,670

 

Commission and service fee income (1)

 

 

14,408

 

 

 

—

 

 

 

—

 

 

 

(14,408

)

 

 

—

 

Policy and installment fee income

 

 

570

 

 

 

—

 

 

 

41

 

 

 

—

 

 

 

611

 

Total segment revenues

 

 

14,978

 

 

 

99,388

 

 

 

323

 

 

 

(14,408

)

 

 

100,281

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,911

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,994

)

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

114,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

—

 

 

 

52,665

 

 

 

(2,446

)

 

 

(344

)

 

 

49,875

 

Net commission expenses

 

 

—

 

 

 

34,859

 

 

 

259

 

 

 

(11,031

)

 

 

24,087

 

Other underwriting expenses (3)

 

 

13,800

 

 

 

5,361

 

 

 

200

 

 

 

(3,033

)

 

 

16,328

 

Income (loss) from segments

 

$

1,178

 

 

$

6,503

 

 

$

2,310

 

 

$

—

 

 

$

9,991

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,911

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,994

)

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,844

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,064

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,541

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

$

12,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

43,083

 

 

$

162,084

 

 

$

79,162

 

 

$

(16,911

)

 

 

267,418

 

Corporate assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,466,670

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,734,088

 

 

(1)
Consists of intersegment revenues, which are eliminated in consolidation.
(2)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(3)
Other underwriting expenses consist primarily of personnel expenses and general operating expenses related to underwriting activities.

 

 

Quarter Ended September 30, 2024
(Dollars in thousands)

 

Agency and Insurance Services

 

 

Belmont Core

 

 

Belmont
Non-Core

 

 

Elimination

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

—

 

 

$

103,244

 

 

$

(3,477

)

 

$

—

 

 

$

99,767

 

Net written premiums

 

$

—

 

 

$

100,712

 

 

$

(3,535

)

 

$

—

 

 

$

97,177

 

Net earned premiums

 

$

—

 

 

$

93,982

 

 

$

1,431

 

 

$

—

 

 

$

95,413

 

Commission and service fee income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Policy and installment fee income

 

 

—

 

 

 

337

 

 

 

35

 

 

 

—

 

 

 

372

 

Total segment revenues

 

 

—

 

 

 

94,319

 

 

 

1,466

 

 

 

—

 

 

 

95,785

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,488

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(512

)

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

111,761

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

—

 

 

 

51,382

 

 

 

1,018

 

 

 

—

 

 

 

52,400

 

Net commission expenses

 

 

—

 

 

 

21,926

 

 

 

973

 

 

 

—

 

 

 

22,899

 

Other underwriting expenses (2)

 

 

—

 

 

 

13,703

 

 

 

951

 

 

 

—

 

 

 

14,654

 

Income (loss) from segments

 

$

—

 

 

$

7,308

 

 

$

(1,476

)

 

$

—

 

 

$

5,832

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,488

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(512

)

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,923

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,885

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,125

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

$

12,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

—

 

 

$

165,820

 

 

$

97,058

 

 

$

—

 

 

 

262,878

 

Corporate assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,498,239

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,761,117

 

 

(1)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2)
Other underwriting expenses consist primarily of personnel expenses and general operating expenses related to underwriting activities.

 

Nine Months Ended September 30, 2025
(Dollars in thousands)

 

Agency and Insurance Services

 

 

Belmont Core

 

 

Belmont
Non-Core

 

 

Elimination

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

—

 

 

$

316,749

 

 

$

(2,904

)

 

$

—

 

 

$

313,845

 

Net written premiums

 

$

—

 

 

$

308,215

 

 

$

(2,894

)

 

$

—

 

 

$

305,321

 

Net earned premiums

 

$

—

 

 

$

289,161

 

 

$

(1,029

)

 

$

—

 

 

$

288,132

 

Commission and service fee income (1)

 

 

43,308

 

 

 

—

 

 

 

—

 

 

 

(43,308

)

 

 

—

 

Policy and installment fee income

 

 

1,456

 

 

 

—

 

 

 

112

 

 

 

—

 

 

 

1,568

 

Total segment revenues

 

 

44,764

 

 

 

289,161

 

 

 

(917

)

 

 

(43,308

)

 

 

289,700

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47,400

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,731

)

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

333,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

—

 

 

 

175,226

 

 

 

(4,656

)

 

 

(1,009

)

 

 

169,561

 

Net commission expenses

 

 

—

 

 

 

101,342

 

 

 

(20

)

 

 

(33,058

)

 

 

68,264

 

Other underwriting expenses (3)

 

 

39,474

 

 

 

14,938

 

 

 

1,402

 

 

 

(9,241

)

 

 

46,573

 

Income (loss) from segments

 

$

5,290

 

 

$

(2,345

)

 

$

2,357

 

 

$

—

 

 

$

5,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47,400

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,731

)

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24,872

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24,099

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,221

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

$

18,878

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

43,083

 

 

$

162,084

 

 

$

79,162

 

 

$

(16,911

)

 

 

267,418

 

Corporate assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,466,670

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,734,088

 

 

(1)
Consists of intersegment revenues, which are eliminated in consolidation.
(2)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(3)
Other underwriting expenses consist primarily of personnel expenses and general operating expenses related to underwriting activities

 

Nine months ended September 30, 2024
(Dollars in thousands)

 

Agency and Insurance Services

 

 

Belmont Core

 

 

Belmont
Non-Core

 

 

Elimination

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

—

 

 

$

297,844

 

 

$

(3,883

)

 

$

—

 

 

$

293,961

 

Net written premiums

 

$

—

 

 

$

290,910

 

 

$

(3,897

)

 

$

—

 

 

$

287,013

 

Net earned premiums

 

$

—

 

 

$

272,467

 

 

$

12,339

 

 

$

—

 

 

$

284,806

 

Commission and service fee income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Policy and installment fee income

 

 

—

 

 

 

1,020

 

 

 

54

 

 

 

—

 

 

 

1,074

 

Total segment revenues

 

 

—

 

 

 

273,487

 

 

 

12,393

 

 

 

—

 

 

 

285,880

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

46,319

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

540

 

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

332,739

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

—

 

 

 

151,417

 

 

 

8,029

 

 

 

—

 

 

 

159,446

 

Net commission expenses

 

 

—

 

 

 

63,406

 

 

 

4,599

 

 

 

—

 

 

 

68,005

 

Other underwriting expenses (2)

 

 

—

 

 

 

41,048

 

 

 

2,737

 

 

 

—

 

 

 

43,785

 

Income (loss) from segments

 

$

—

 

 

$

17,616

 

 

$

(2,972

)

 

$

—

 

 

$

14,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

46,319

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

540

 

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(18,679

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

42,824

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,605

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

$

34,219

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

—

 

 

$

165,820

 

 

$

97,058

 

 

$

—

 

 

 

262,878

 

Corporate assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,498,239

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,761,117

 

 

 

 

 

 

 

 

(1)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2)
Other underwriting expenses consist primarily of personnel expenses and general operating expenses related to underwriting activities.