NYSE:GBLI
READ THE FULL GBLI RESEARCH REPORT
Suspension of Exploration of Sale or Merger
On December 7, 2032, the Global Indemnity (NYSE:GBLI) announced that it suspended the exploration of the sale or merger of Penn-America, Global Indemnity’s insurance group, and Global Indemnity itself at this time.
Global Indemnity’s Chairman Saul Fox stated: “Our merger & acquisition market information that suggested we pursue a transaction at this time was not realized.” Chief Executive Officer Jay Brown, added, “Given the Company’s debt-free balance sheet and strong reserve base, coupled with our enviable decades-long profitability, outstanding management team, and extensive national agent and broker network, Penn-America is well-positioned to achieve exceptional financial results for our owners.”
The company also announced that it increased the size of its Board of Directors to seven members to accommodate the new designation of Fred Karlinsky to the Board. Mr. Karlinsky is Co-Chair of Greenberg Traurig, LLP’s global insurance practice. Greenberg Traurig is a multi-national law firm with over 2,600 professionals operating in 45 offices around the world.
Declaration of Distribution
On December 7, 2023, the company announced its Board of Directors had approved a distribution payment of $0.25 per common share which was paid on December 29, 2023 to all shareholders of record as of the close of business on December 22, 2023.
Valuation and Estimates
We lower our price target to $55.00 to take into account the absence of the optionality of a near-term acquisition or merger.
We are maintaining our 4th quarter and full year 2023 EPS estimates at this time as we await the release of the company’s year-end financial results in mid-March.
GBLI stock is currently selling at 60.6% of book value based on September 30, 2023 shareholders’ equity.
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