Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that registrant was required to submit such files.). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~October 29, 2020,~~July 28, 2021, the registrant had outstanding ~~10,242,703~~10,515,177 Class A Common Shares ~~4,133,366~~and 3,947,206 Class B Common ~~Shares, and 4,000 Series A Cumulative Fixed Rate Preferred~~ Shares.

	(Unaudited) September 30, 2020		December 31, 2019			(Unaudited) June 30, 2021			December 31, 2020
ASSETS
Fixed maturities:
Available for sale, at fair value (amortized cost: $1,260,439 and $1,231,568; net of allowance of: 2020 - $0)	$	1,303,775	$	1,253,159
Available for sale, at fair value (amortized cost: $1,150,603 and $1,149,009; net of allowance for expected credit losses of $0 at June 30, 2021 and December 31, 2020)						$	1,174,097		$	1,191,186
Equity securities, at fair value		75,941		263,104			90,669			98,990
Other invested assets		37,749		47,279			166,003			97,018
Total investments		1,417,465		1,563,542			1,430,769			1,387,194

Cash and cash equivalents		37,211		44,271			49,105			67,359
Premiums receivable, net of allowance for credit losses of $2,869 at September 30, 2020		109,820		118,035
Reinsurance receivables, net of allowance for credit losses of $8,992 at September 30, 2020		112,633		83,938
Premium receivables, net of allowance for expected credit losses of $2,822 at June 30, 2021 and $2,900 at December 31, 2020							123,932			109,431
Reinsurance receivables, net of allowance for expected credit losses of $8,992 at June 30, 2021 and December 31, 2020							90,247			88,708
Funds held by ceding insurers		46,894		48,580			33,793			45,480
Federal income taxes receivable		0		10,989
Deferred federal income taxes		35,300		31,077			37,169			34,265
Deferred acquisition costs		67,470		70,677			69,061			65,195
Intangible assets		21,094		21,491			20,698			20,962
Goodwill		6,521		6,521			6,521			6,521
Prepaid reinsurance premiums		15,558		16,716			15,141			12,881
Lease right of use assets							19,979			21,077
Other assets		69,791		60,048			40,902			45,835
Total assets	$	1,939,757	$	2,075,885		$	1,937,317		$	1,904,908

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses	$	669,930	$	630,181		$	697,618		$	662,811
Unearned premiums		304,074		314,861			308,984			291,495
Ceded balances payable		9,576		20,404			14,339			8,943
Payable for securities purchased		5,630		850			3,707			4,667
Contingent commissions		11,329		11,928			6,420			10,832
Debt		126,253		296,640			126,359			126,288
Lease liabilities							21,566			22,950
Other liabilities		92,252		74,212			48,759			58,598
Total liabilities	$	1,219,044	$	1,349,076		$	1,227,752		$	1,186,584

Commitments and contingencies (Note 11)		—		—
Commitments and contingencies (Note 12)							—			—

Shareholders’ equity:
Series A cumulative fixed rate preferred shares, $1,000 par value; 100,000,000 shares authorized, shares issued and outstanding: 4,000 and 0 shares, respectively, liquidation preference: $1,000 per share and $0, respectively		4,000		—
Common shares, par value: no par at September 30, 2020 and $0.0001 at December 31, 2019, 900,000,000 common shares authorized; class A common shares issued: 10,242,703 and 10,282,277 respectively; class A common shares outstanding: 10,242,703 and 10,167,056, respectively; class B common shares issued and outstanding: 4,133,366 and 4,133,366, respectively		0		2
Series A cumulative fixed rate preferred shares, $1,000 par value; 100,000,000 shares authorized, shares issued and outstanding: 4,000 and 4,000 shares, respectively, liquidation preference: $1,000 per share and $1,000 per share, respectively							4,000			4,000
Common shares: no par value; 900,000,000 common shares authorized; class A common shares issued: 10,532,270 and 10,263,722 respectively; class A common shares outstanding: 10,515,177 and 10,263,722, respectively; class B common shares issued and outstanding: 3,947,206 and 4,133,366, respectively							0			0
Additional paid-in capital		443,437		442,403			447,804			445,051
Accumulated other comprehensive income, net of taxes		35,720		17,609
Accumulated other comprehensive income, net of tax							18,968			34,308
Retained earnings		237,556		270,768			239,272			234,965
Class A common shares in treasury, at cost: 0 and 115,221 shares, respectively		0		(3,973	)
Class A common shares in treasury, at cost: 17,093 and 0 shares, respectively							(479	)		0
Total shareholders’ equity		720,713		726,809			709,565			718,324
Total liabilities and shareholders’ equity	$	1,939,757	$	2,075,885		$	1,937,317		$	1,904,908

	(Unaudited) Quarters Ended September 30,						(Unaudited) Nine Months Ended September 30,						(Unaudited) Quarters Ended June 30,					(Unaudited) Six Months Ended June 30,
	2020			2019			2020			2019			2021		2020			2021		2020
Revenues:
Gross written premiums	$	143,749		$	157,177		$	464,022		$	478,699		$	175,236	$	164,549		$	338,794	$	320,273

Net written premiums	$	130,611		$	138,836		$	416,987		$	421,321		$	160,653	$	147,264		$	308,336	$	286,376

Net earned premiums	$	140,302		$	133,312		$	426,617		$	383,602		$	149,408	$	141,847		$	293,108	$	286,315
Net investment income		11,746			11,348			19,516			32,393
Net realized investment gains (losses):
Other than temporary impairment losses on investments		0			0			0			(1,897	)
Other net realized investment gains (losses)		7,323			(2,690	)		(22,332	)		13,187
Total net realized investment gains (losses)		7,323			(2,690	)		(22,332	)		11,290
Net investment income (loss)														10,633		(2,359	)		20,469		7,770
Net realized investment gains (losses)														3,833		38,507			7,652		(29,655	)
Other income		542			264			1,473			1,274			521		766			898		931
Total revenues		159,913			142,234			425,274			428,559			164,395		178,761			322,127		265,361

Losses and Expenses:
Net losses and loss adjustment expenses		97,148			73,583			242,092			201,979			90,938		67,297			181,721		144,944
Acquisition costs and other underwriting expenses		53,268			53,366			163,258			153,643			57,213		53,578			111,977		109,990
Corporate and other operating expenses		21,196			3,858			34,037			11,702			6,329		8,618			10,605		12,841
Interest expense		3,620			5,023			13,197			15,088			2,696		4,712			5,291		9,577
Loss on extinguishment of debt		3,060			0			3,060			0
Income (loss) before income taxes		(18,379	)		6,404			(30,370	)		46,147			7,219		44,556			12,533		(11,991	)
Income tax expense (benefit)		(3,209	)		(317	)		(8,173	)		5,163			844		7,005			641		(4,964	)
Net income (loss)	$	(15,170	)	$	6,721		$	(22,197	)	$	40,984		$	6,375	$	37,551		$	11,892	$	(7,027	)
Less: Preferred stock distributions		42			0			42			0
Less: preferred stock distributions														110		0			220		0
Net income (loss) available to common shareholders	$	(15,212	)	$	6,721		$	(22,239	)	$	40,984		$	6,265	$	37,551		$	11,672	$	(7,027	)

Per share data:
Net income (loss) available to common shareholders (1)
Basic	$	(1.06	)	$	0.47		$	(1.56	)	$	2.89		$	0.43	$	2.63		$	0.81	$	(0.49	)
Diluted	$	(1.06	)	$	0.47		$	(1.56	)	$	2.86		$	0.43	$	2.61		$	0.80	$	(0.49	)
Weighted-average number of shares outstanding
Basic		14,304,426			14,202,859			14,276,594			14,181,530			14,412,446		14,275,500			14,396,523		14,262,525
Diluted		14,304,426			14,327,757			14,276,594			14,328,861			14,681,731		14,389,400			14,651,124		14,262,525
Cash dividends/distributions declared per common share	$	0.25		$	0.25		$	0.75		$	0.75		$	0.25	$	0.25		$	0.50	$	0.50

	(Unaudited) Quarters Ended September 30,						(Unaudited) Nine Months Ended September 30,						(Unaudited) Quarters Ended June 30,						(Unaudited) Six Months Ended June 30,
	2020			2019			2020			2019			2021			2020			2021			2020
Net income (loss)	$	(15,170	)	$	6,721		$	(22,197	)	$	40,984		$	6,375		$	37,551		$	11,892		$	(7,027	)

Other comprehensive income (loss), net of tax:
Unrealized holding gain		(448	)		9,421			30,748			48,883
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss)		0			(2	)		0			(4	)
Reclassification adjustment for gains included in net income (loss)		(2,104	)		(847	)		(13,205	)		(2,665	)
Unrealized foreign currency translation gain (loss)		579			200			568			331
Unrealized holding gains (losses)														9,477			33,229			(15,701	)		31,196
Reclassification adjustment for (gains) losses included in net income (loss)														(295	)		(9,388	)		521			(11,101	)
Unrealized foreign currency translation gains (losses)														(67	)		1,292			(160	)		(11	)
Other comprehensive income (loss), net of tax		(1,973	)		8,772			18,111			46,545			9,115			25,133			(15,340	)		20,084

Comprehensive income (loss), net of tax	$	(17,143	)	$	15,493		$	(4,086	)	$	87,529		$	15,490		$	62,684		$	(3,448	)	$	13,057

	(Unaudited) Quarters Ended September 30,						(Unaudited) Nine Months Ended September 30,						(Unaudited) Quarters Ended June 30,						(Unaudited) Six Months Ended June 30,
	2020			2019			2020			2019			2021			2020			2021			2020
Number of Series A Cumulative Fixed Rate Preferred Shares
Preferred shares issued		4,000			0			4,000			0
Number at end of period		4,000			0			4,000			0

Number at beginning and end of period														4,000			0			4,000			0
Number of class A common shares issued:
Number at beginning of period		10,333,540			10,239,520			10,282,277			10,171,954			10,303,832			10,305,404			10,263,722			10,282,277
Common shares issued / (forfeited) under share incentive plans		(230	)		0			(576	)		36,180
Common shares issued under share incentive plans, net of forfeitures														22,540			(346	)		42,644			(346	)
Common shares issued to directors		29,893			19,275			81,502			50,661			19,738			28,482			39,744			51,609
Reduction in treasury shares due to redomestication		(120,500	)		0			(120,500	)		0
Share conversion														186,160			0			186,160			0
Number at end of period		10,242,703			10,258,795			10,242,703			10,258,795			10,532,270			10,333,540			10,532,270			10,333,540

Number of class B common shares issued:
Number at beginning and end of period		4,133,366			4,133,366			4,133,366			4,133,366

Number at beginning of period														4,133,366			4,133,366			4,133,366			4,133,366
Share conversion														(186,160	)		0			(186,160	)		0
Number at end of period														3,947,206			4,133,366			3,947,206			4,133,366
Par value of Series A Cumulative Fixed Rate Preferred Shares
Preferred shares issued	$	4,000			0		$	4,000			0
Balance at end of period	$	4,000			0		$	4,000			0

Balance at beginning and end of period													$	4,000		$	0		$	4,000		$	0
Par value of class A common shares:
Balance at beginning of period	$	1		$	1		$	1		$	1
Reduction in par due to redomestication		(1	)		0			(1	)		0
Balance at end of period	$	0		$	1		$	0		$	1

Balance at beginning and end of period													$	0		$	1		$	0		$	1
Par value of class B common shares:
Balance at beginning of period	$	1		$	1		$	1		$	1
Reduction in par due to redomestication		(1	)		0			(1	)		0
Balance at end of period	$	0		$	1		$	0		$	1

Balance at beginning and end of period													$	0		$	1		$	0		$	1
Additional paid-in capital:
Balance at beginning of period	$	445,173		$	439,707		$	442,403		$	438,182		$	446,199		$	443,641		$	445,051		$	442,403
Reduction in treasury shares due to redomestication		(4,126	)		0			(4,126	)		0
Share compensation plans		2,390			988			5,160			2,513			1,605			1,532			2,753			2,770
Balance at end of period	$	443,437		$	440,695		$	443,437		$	440,695		$	447,804		$	445,173		$	447,804		$	445,173

Accumulated other comprehensive income, net of deferred income tax:
Balance at beginning of period	$	37,693		$	16,542		$	17,609		$	(21,231	)	$	9,853		$	12,560		$	34,308		$	17,609
Other comprehensive income (loss):
Change in unrealized holding gains (losses)		(2,552	)		8,574			17,543			46,218			9,182			23,841			(15,180	)		20,095
Change in other than temporary impairment losses recognized in other comprehensive income (loss)		0			(2	)		0			(4	)
Unrealized foreign currency translation gains		579			200			568			331
Unrealized foreign currency translation gains (losses)														(67	)		1,292			(160	)		(11	)
Other comprehensive income (loss)		(1,973	)		8,772			18,111			46,545			9,115			25,133			(15,340	)		20,084
Balance at end of period	$	35,720		$	25,314		$	35,720		$	25,314		$	18,968		$	37,693		$	18,968		$	37,693

Retained earnings:
Balance at beginning of period	$	256,442		$	242,234		$	270,768		$	215,132		$	236,688		$	222,549		$	234,965		$	270,768
Cumulative effect adjustment resulting from adoption of new accounting guidance		0			0			0			(5	)
Net income (loss)		(15,170	)		6,721			(22,197	)		40,984			6,375			37,551			11,892			(7,027	)
Preferred share distributions		(42	)		0			(42	)		0			(110	)		0			(220	)		0
Dividends / distributions to shareholders ($0.25 per share per quarter in 2020 and 2019)		(3,674	)		(3,609	)		(10,973	)		(10,765	)
Dividends / distributions to shareholders ($0.25 per share per quarter in 2021 and 2020)														(3,681	)		(3,658	)		(7,365	)		(7,299	)
Balance at end of period	$	237,556		$	245,346		$	237,556		$	245,346		$	239,272		$	256,442		$	239,272		$	256,442

Number of treasury shares:
Number at beginning of period		120,104			110,449			115,221			76,642			9,993			119,945			0			115,221
Class A common shares purchased		396			0			5,120			27,028			7,100			0			16,915			4,724
Retirement of shares		0			0			159			6,779			0			159			0			159
Reduction in treasury shares due to redomestication		(120,500	)		0			(120,500	)		0
Forfeited shares														0			0			178			0
Number at end of period		0			110,449			0			110,449			17,093			120,104			17,093			120,104

Treasury shares, at cost:
Balance at beginning of period	$	(4,116	)	$	(3,973	)	$	(3,973	)	$	(3,026	)	$	(283	)	$	(4,116	)	$	0		$	(3,973	)
Class A common shares purchased, at cost		(10	)		0			(153	)		(947	)		(196	)		0			(479	)		(143	)
Reduction in treasury shares due to redomestication		4,126			0			4,126			0
Balance at end of period	$	0		$	(3,973	)	$	0		$	(3,973	)	$	(479	)	$	(4,116	)	$	(479	)	$	(4,116	)
Total shareholders’ equity	$	720,713		$	707,384		$	720,713		$	707,384		$	709,565		$	735,194		$	709,565		$	735,194

	(Unaudited) Nine Months Ended September 30,						(Unaudited) Six Months Ended June 30,
	2020			2019			2021			2020
Cash flows from operating activities:
Net income (loss)	$	(22,197	)	$	40,984		$	11,892		$	(7,027	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization and depreciation		5,121			5,327			4,176			3,463
Amortization of debt issuance costs		182			198			71			132
Restricted stock and stock option expense		5,157			2,513			2,753			2,769
Deferred federal income taxes		(8,303	)		5,198			641			(4,964	)
Amortization of bond premium and discount, net		4,828			3,697			3,043			2,941
Net realized investment (gains) loss		22,332			(11,290	)
Loss on extinguishment of debt		3,060			—
Equity in the earnings of equity method limited liability investments		8,004			0
Net realized investment (gains) losses								(7,652	)		29,655
(Income) loss from equity method investments, net of distributions								(1,658	)		11,489
Changes in:
Premiums receivable, net		8,215			(25,313	)
Premium receivables, net								(14,501	)		(7,265	)
Reinsurance receivables, net		(28,695	)		31,406			(1,539	)		(7,151	)
Funds held by ceding insurers		2,132			786			11,485			749
Unpaid losses and loss adjustment expenses		39,749			(46,744	)		34,807			20,892
Unearned premiums		(10,787	)		34,885			17,489			(800	)
Ceded balances payable		(10,828	)		21,437			5,396			3,256
Other assets and liabilities, net		1,211			(9,929	)
Other assets and liabilities								(8,377	)		625
Contingent commissions		(599	)		(601	)		(4,412	)		(3,252	)
Federal income tax receivable/payable		10,989			(270	)		0			5,478
Deferred acquisition costs, net		3,207			(9,185	)
Deferred acquisition costs								(3,866	)		558
Prepaid reinsurance premiums		1,158			2,831			(2,260	)		862
Net cash provided by operating activities		33,936			45,930			47,488			52,410
Cash flows from investing activities:
Proceeds from sale of fixed maturities		600,962			642,049			636,040			427,111
Proceeds from sale of equity securities		563,926			206,212			42,821			378,915
Proceeds from maturity of fixed maturities		89,875			113,480			38,459			15,651
Proceeds from maturity of preferred stock								666			—
Proceeds from other invested assets		1,823			14,201			2,673			623
Amounts paid in connection with derivatives		(20,130	)		(12,516	)		(276	)		(20,060	)
Purchases of fixed maturities		(702,727	)		(701,684	)		(680,805	)		(457,841	)
Purchases of equity securities		(393,963	)		(325,972	)		(27,402	)		(358,085	)
Purchases of other invested assets		(297	)		(3,500	)		(70,000	)		(297	)
Net cash provided by (used for) investing activities		139,469			(67,730	)
Net cash used for investing activities								(57,824	)		(13,983	)
Cash flows from financing activities:
Net borrowings (repayments) under margin borrowing facility		(73,629	)		8,561
Dividends paid to common shareholders		(10,683	)		(7,130	)
Issuance of series A cumulative fixed rate preferred shares		4,000			0
Net borrowings under margin borrowing facility								0			958
Dividends / distributions paid to common shareholders								(7,219	)		(7,120	)
Distributions paid to preferred shareholders								(220	)		0
Purchases of class A common shares		(153	)		(947	)		(479	)		(143	)
Redemption of subordinated notes		(100,000	)		0
Net cash provided by (used for) financing activities		(180,465	)		484
Net cash used for financing activities								(7,918	)		(6,305	)
Net change in cash and cash equivalents		(7,060	)		(21,316	)		(18,254	)		32,122
Cash and cash equivalents at beginning of period		44,271			99,497			67,359			44,271
Cash and cash equivalents at end of period	$	37,211		$	78,181		$	49,105		$	76,393

References to “the Company” refer to Global Indemnity Group, LLC and its subsidiaries. If prior to August 28, 2020, references to the Company refer to Global Indemnity Limited and its subsidiaries.

Global Indemnity Group, LLC, ~~(“Global Indemnity” or “the Company”),~~ a Delaware limited liability company formed on June 23, 2020, replaced Global Indemnity Limited, incorporated in the Cayman Islands as an exempted company with limited liability, as the ultimate parent company of the Global Indemnity group of companies as a result of a redomestication transaction completed on August 28, 2020. ~~The Company’s~~Global Indemnity Group, LLC’s class A common shares are publicly traded on the NASDAQ Global Select Market under the ticker symbol GBLI. ~~The Company’s~~Global Indemnity Group, LLC’s predecessors have been publicly traded since 2003. See Note 2 ~~below~~of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2020 Annual Report on Form 10-K for additional information regarding the redomestication.

Global Indemnity Group, LLC is a holding company that is classified as a publicly traded partnership for U.S. federal income tax purposes and meets the qualifying income exception to maintain partnership status.

Global Indemnity Group, LLC owns all 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.

The ~~Company manages its business~~insurance companies’ primary activity is providing insurance products across a distribution network that includes binding authority, program, brokerage and reinsurance. The insurance companies are managed through4 business segments: Commercial Specialty, Specialty Property, Farm, Ranch & Stable, and Reinsurance Operations. The Company’s Commercial Specialty segment offers specialty property and casualty insurance products in the excess and surplus lines marketplace. The Company manages Commercial Specialty by differentiating them into 4 product classifications: 1) Penn-America, which markets property and general liability products to small commercial businesses through a select network of wholesale general agents with specific binding authority; 2) United National, which markets insurance products for targeted insured segments, including specialty products, such as property, general liability, and professional lines through program administrators with specific binding authority; 3) Diamond State, which markets property, casualty, and professional lines products, which are developed by the Company’s underwriting department by individuals with expertise in those lines of business, through wholesale brokers and also markets through program administrators having specific binding authority; and 4) Vacant Express, which primarily insures dwellings which are currently vacant, undergoing renovation, or are under construction and is marketed through aggregators, brokers, and retail agents. These product classifications comprise the Company’s Commercial Specialty business segment and are not considered individual business segments because each product has similar economic characteristics, distribution, and coverage. The Company’s Specialty Property segment offers specialty personal lines property and casualty insurance products through general and specialty agents with specific binding authority. The Company’s Farm, Ranch & Stable segment provides specialized property and casualty coverage including Commercial Farm Auto and Excess/Umbrella Coverage for the agriculture industry as well as specialized insurance products for the equine mortality and equine major medical industry. These insurance products are sold through wholesalers and retail agents, with a selected number having specific binding authority. Collectively, the Company’s ~~U.S.~~ insurance subsidiaries are licensed in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. ~~The Commercial Specialty, Specialty Property, and Farm, Ranch, & Stable segments comprise the Company’s Insurance Operations (“Insurance Operations”).~~ The Company’s Reinsurance Operations segment provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies. Prior to the redomestication transactions, the Company’s Reinsurance Operations consisted solely of the operations of its Bermuda-based wholly-owned subsidiary, Global Indemnity Reinsurance Company, Ltd. (“Global Indemnity Reinsurance”). As part of the redomestication transactions, Global Indemnity Reinsurance was merged with and into Penn-Patriot Insurance Company ("Penn-Patriot"), with Penn-Patriot surviving, resulting in the assumption of Global Indemnity Reinsurance's business by the ~~Company’s~~Global Indemnity group of companies’ existing U.S. insurance company subsidiaries. The Commercial Specialty, Specialty Property, Farm, Ranch & Stable, and Reinsurance Operations segments comprise the Company’s insurance operations.

The interim consolidated financial statements are unaudited, but have been prepared in conformity with United States of America generally accepted accounting principles (“GAAP”), which differs in certain respects from those principles followed in reports to insurance regulatory authorities. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The unaudited consolidated financial statements include all adjustments that are, in the opinion of management, of a normal recurring nature and are necessary for a fair statement of results for the interim periods. Results of operations for the quarters and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019~~2020 are not necessarily indicative of the results of a full year. The accompanying notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s ~~2019~~2020 Annual Report on Form 10-K.

The consolidated financial statements include the accounts of Global Indemnity Group, LLC and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

2.~~Redomestication~~Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the Consolidated Balance Sheets for the fiscal year ended December 31, 2020 to present the lease right of use assets and lease liabilities separately from other assets and other liabilities, respectively. This change in classification does not affect previously reported Assets or Liabilities in the Consolidated Balance Sheet.

~~At 12:01 a.m., Eastern Time, on August 28, 2020 (the "Effective Time"), Global Indemnity Limited, incorporated~~2.Summary of Significant Accounting Policies

There have been no significant changes to the Company's accounting policies during the current year except for the following:

The receipt of results for investments in ~~the Cayman Islands as an exempted company with~~limited partnerships and limited liability ~~completed~~companies may vary. If results are received on a timely basis, they are included in current results. If they are not received on a timely basis, they are recorded on a one quarter lag. The recording of such results are applied consistently for each investment once the ~~previously disclosed scheme~~timing of ~~arrangement and amalgamation under Sections 86 and 87~~receiving the results has been established.

Please see Note 3 of the ~~Cayman Islands Companies Law (2020 Revision) (the "Scheme of Arrangement") that effected certain transactions (the "Redomestication") that resulted~~notes to the consolidated financial statements in ~~the shareholders of Global Indemnity Limited becoming the holders of all~~Item 8 Part II of the ~~issued and outstanding common shares of the Company. In accordance with the terms of the Scheme of Arrangement, the following steps occurred effectively simultaneously at the Effective Time:~~

As a result, any references to class A common shares after the Effective Time refer to Global Indemnity Group, LLC class A common shares and any references to class A common shares prior to the Effective Time refers to Global Indemnity Limited A ordinary shares.

~~As previously disclosed, the Redomestication was approved by Global Indemnity Limited’s shareholders at a special meeting and an extraordinary general meeting held~~Company's 2020 Annual Report on August 25, 2020, convened by Order of the Grand Court of the Cayman Islands dated July 22, 2020. The terms and conditions of the issuance of the securities in connection with the Redomestication were sanctioned by the Grand Court of the Cayman Islands pursuant to an Order granted on August 26, 2020 after a hearing upon the fairness of such terms and conditions at which all holders of Global Indemnity Limited ordinary shares had a right to appear and of which adequate notice had been given.

Following completion of the Scheme of Arrangement, New CayCo merged with and into the Company, with the Company surviving as the ultimate parent company. Additionally, as part of the Redomestication transactions, Global Indemnity Reinsurance Company was merged with and into Penn-Patriot, with Penn-Patriot surviving, resulting in the assumption of Global Indemnity Reinsurance’s business by the Company’s existing U.S. insurance company subsidiaries (the "GI Bermuda Transaction" and, together with the Redomestication and the other transactions described in Global Indemnity Limited's Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on July 23, 2020 (the "Redomestication Proxy Statement"), the "Transactions").

~~Prior to the Redomestication, the Global Indemnity Limited A ordinary shares were listed~~Form 10-K for more information on the ~~Nasdaq Global Select Market ("Nasdaq") under the symbol "GBLI" and registered under Section 12(b)~~Company's summary of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). At the Effective Time, the Company’s class A common shares are deemed to be registered under Section 12(b) of the Exchange Act pursuant to Rule 12g-3(a) under the Exchange Act. The issuance of the class A common shares by the Company in the Redomestication was exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), by virtue of Section 3(a)(10) of the Securities Act. The Company’s class A common shares began trading on Nasdaq under the symbol "GBLI," the same symbol under which the Global Indemnity Limited ordinary shares previously traded, at the commencement of trading on Nasdaq on August 28, 2020.significant accounting policies.

On August 27, 2020, the Company issued 4,000 series A cumulative fixed rate preferred shares. Following the Effective Time, all of the issued and outstanding series A fixed rate preferred shares were unaffected by the Scheme of Arrangement. See Note 10 for additional information regarding the issuance of these preferred shares.

The Company implemented new accounting guidance on January 1, 2020 related to the measurement of credit losses on financial instruments. For financial assets held at amortized cost basis, the new guidance requires a forward-looking methodology for in-scope financial assets that reflects expected credit losses and requires consideration of a broader range of information for credit loss estimates, including historical experience, current economic conditions and supportable forecasts that affect the collectability of the financial assets. For available for sale debt securities, credit losses are still measured similar to the old guidance; however, the new guidance requires that credit losses be presented as an allowance rather than as a write-down of the amortized cost basis of the impaired security and allows for the reversal of credit losses in the current period net income. Any impairments related to factors other than credit losses continue to be recorded through other comprehensive income, net of taxes.

The Company elected the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of the available for sale debt securities for the purposes of identifying and measuring an impairment and to not measure an allowance for credit losses for accrued interest receivables. Accrued interest receivable is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payment. The Company made an accounting policy election to present the accrued interest receivable balance with other assets on the Company’s consolidated statements of financial position. Accrued interest receivable was $6.1 million and $7.0 million as of September 30, 2020 and December 31, 2019, respectively.

The amortized cost and estimated fair value of the Company’s fixed maturities securities were as follows as of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019:~~2020:

(Dollars in thousands)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of September 30, 2020
As of June 30, 2021
Fixed maturities:
U.S. treasury and agency obligations	$	197,192	$	0	$	4,980	$	(215	)	$	201,957
U.S. treasuries												$	148,611	$	0	$	1,278	$	(2,840	)	$	147,049
Agency obligations													10,628		0		5		(56	)		10,577
Obligations of states and political subdivisions		59,134		0		3,055		(188	)		62,001		62,666		0		2,829		(9	)		65,486
Mortgage-backed securities		393,325		0		8,879		(1,120	)		401,084		306,158		0		4,190		(2,151	)		308,197
Asset-backed securities		137,953		0		2,198		(1,001	)		139,150		131,543		0		1,301		(229	)		132,615
Commercial mortgage-backed securities		132,271		0		7,444		(804	)		138,911		106,120		0		4,160		(247	)		110,033
Corporate bonds		243,082		0		16,914		(1,135	)		258,861		265,316		0		12,097		(973	)		276,440
Foreign corporate bonds		97,482		0		4,533		(204	)		101,811		119,561		0		4,374		(235	)		123,700
Total fixed maturities	$	1,260,439	$	0	$	48,003	$	(4,667	)	$	1,303,775	$	1,150,603	$	0	$	30,234	$	(6,740	)	$	1,174,097

As of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company’s investments in equity securities consist of the following:

(Dollars in thousands)	September 30, 2020		December 31, 2019		June 30, 2021		December 31, 2020
Common stock	$	0	$	135,329	$	68,261	$	60,379
Preferred stock		11,268		11,656		22,408		11,683
Index funds that invest in fixed maturities		64,673		54,648		0		26,928
Index funds that invest in common stock		0		61,471
Total	$	75,941	$	263,104	$	90,669	$	98,990

As of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company held Fannie Mae mortgage pools that totaled ~~as much as 4.6%~~2.6% and ~~4.2%~~3.9% of shareholders’ equity, respectively. Excluding the Fannie Mae pools, U.S. treasuries, agency bonds, index funds, limited liability companies, and limited partnerships, the Company did not hold any debt or equity investments in a single issuer in excess of 2%2.2% and 3%1.9% of shareholders' equity at ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively.

The amortized cost and estimated fair value of the Company’s fixed maturities portfolio classified as available for sale at ~~September~~June 30, ~~2020,~~2021, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(Dollars in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	43,213	$	43,642	$	39,545	$	39,976
Due in one year through five years		218,132		228,538		181,497		189,605
Due in five years through ten years		242,488		252,950		294,129		298,071
Due in ten years through fifteen years		27,757		29,337		31,684		32,641
Due after fifteen years		65,300		70,163		59,927		62,959
Mortgage-backed securities		393,325		401,084		306,158		308,197
Asset-backed securities		137,953		139,150		131,543		132,615
Commercial mortgage-backed securities		132,271		138,911		106,120		110,033
Total	$	1,260,439	$	1,303,775	$	1,150,603	$	1,174,097

The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of June 30, 2021. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 5.

The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses that are not deemed to have credit losses, categorized by the period that the securities were in a continuous loss position as of ~~September 30,~~December 31, 2020. The fair value amounts reported in the table are estimates that are prepared using the process described in Note ~~5 of the notes to the consolidated financial statements in Item 1 of Part I of this report:~~5.

The following table contains an analysis of the Company’s fixed income securities with gross unrealized losses, categorized by the period that the securities were in a continuous loss position as of December 31, 2019. The fair value amounts reported in the table are estimates that are prepared using the process described in Note 5 of the notes to the consolidated financial statements in Item 1 of Part I of this report:

The Company regularly performs various analytical valuation procedures with respect to its investments, including reviewing each available for sale debt security in an unrealized loss position to assess whether the decline in fair value below amortized cost basis has resulted from a credit loss or other factors. In assessing whether a credit loss exists, the Company compares the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis of the security, a credit loss exists and an allowance for expected credit losses is recorded. Subsequent changes in the allowances are recorded in the period of change as either credit loss expense or reversal of credit loss expense. Any impairments related to factors other than credit losses and the intent to sell are recorded through other comprehensive income, net of taxes.

For fixed maturities, the factors considered in reaching the conclusion that a credit loss exists include, among others, whether:

According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met, any allowance for expected credit losses is written off and the amortized cost basis is written down to the fair value of the fixed maturity security with any incremental impairment reported in earnings. That new amortized cost basis shall not be adjusted for subsequent recoveries in fair value.

~~GLOBAL INDEMNITY GROUP, LLC~~The Company elected the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of the available for sale debt securities for the purposes of identifying and measuring an impairment and to not measure an allowance for expected credit losses for accrued interest receivables. Accrued interest receivable is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected to default on payment. The Company made an accounting policy election to present the accrued interest receivable balance with other assets on the Company’s consolidated statements of financial position. Accrued interest receivable was $5.6 million and $5.7 million as of June 30, 2021 and December 31, 2020, respectively.

The following is a description, by asset type, of the methodology and significant inputs that the Company used to measure the amount of credit loss recognized in earnings, if any:

U.S. ~~treasury and agency obligations~~treasuries – As of ~~September~~June 30, ~~2020,~~2021, gross unrealized losses related to U.S. ~~treasury and agency obligations~~treasuries were ~~$0.215~~$2.840 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, macroeconomic and market analysis is conducted in evaluating these securities. Consideration is given to the interest rate environment, duration and yield curve management of the portfolio, sector allocation and security selection. Based on the analysis performed, the Company did not recognize a credit loss on U.S. ~~treasury~~treasuries during the period.

Agency obligations – As of June 30, 2021, gross unrealized losses related to agency obligations were $0.056 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, macroeconomic and market analysis is conducted in evaluating these securities. Consideration is given to the interest rate environment, duration and yield curve management of the portfolio, sector allocation and security selection. Based on the analysis performed, the Company did not recognize a credit loss on agency obligations during the period.

Obligations of states and political subdivisions – As of ~~September~~June 30, ~~2020,~~2021, gross unrealized losses related to obligations of states and political subdivisions were ~~$0.188~~$0.009 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, elements that may influence the performance of the municipal bond market are considered in evaluating these securities such as investor expectations, supply and demand patterns, and current versus historical yield and spread relationships. The analysis relies on the output of fixed income credit analysts, as well as dedicated municipal bond analysts who perform extensive in-house fundamental analysis on each issuer, regardless of their rating by the major agencies. Based on the analysis performed, the Company did not recognize a credit loss on obligations of states and political subdivisions during the period.

Mortgage-backed securities (“MBS”) – As of ~~September~~June 30, ~~2020,~~2021, gross unrealized losses related to mortgage-backed securities were ~~$1.120~~$2.151 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, mortgage-backed securities are modeled to project principal losses under downside, base, and upside scenarios for the economy and home prices. The primary assumption that drives the security and loan level modeling is the Home Price Index (“HPI”) projection. These forecasts incorporate not just national macro-economic trends, but also regional impacts to arrive at the most granular and accurate projections. These assumptions are incorporated into the model as a basis to generate delinquency probabilities, default curves, loss severity curves, and voluntary prepayment curves at the loan level within each deal. The model utilizes HPI-adjusted current ~~LTV,~~loan to value, payment history, loan terms, loan modification history, and borrower characteristics as inputs to generate expected cash flows and principal loss for each bond under various scenarios. Based on the analysis performed, the Company did not recognize a credit loss on mortgage-backed securities during the period.

Asset backed securities (“ABS”) - As of ~~September~~June 30, ~~2020,~~2021, gross unrealized losses related to asset backed securities were ~~$1.001~~$0.229 million. The weighted average credit enhancement for the Company’s asset backed portfolio is ~~33.3.~~32.1. This represents the percentage of pool losses that can occur before an asset backed security will incur its first dollar of principal losses. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, every ABS transaction is analyzed on a stand-alone basis. This analysis involves a thorough review of the collateral, prepayment, and structural risk in each transaction. Additionally, the analysis includes an in-depth credit analysis of the originator and servicer of the collateral. The analysis projects an expected loss for a deal given a set of assumptions specific to the asset type. These assumptions are used to calculate at what level of losses the deal will incur its first dollar of principal loss. The major assumptions used to calculate this ratio are loss severities, recovery lags, and no advances on principal and interest. Based on the analysis performed, the Company did not recognize a credit loss on asset backed securities during the period.

Commercial mortgage-backed securities (“CMBS”) - As of ~~September~~June 30, ~~2020,~~2021, gross unrealized losses related to the CMBS portfolio were ~~$0.804~~$0.247 million. The weighted average credit enhancement for the Company’s CMBS portfolio is ~~32.4.~~34.5. This represents the percentage of pool losses that can occur before a commercial mortgage-backed security will incur its first dollar of principal loss. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, a loan level analysis is utilized where every underlying CMBS loan is re-underwritten based on a set of assumptions reflecting expectations for the future path of the economy. Each loan is analyzed over time using a series of tests to determine if a credit event will occur during the life of the loan. Inherent in this process are several economic scenarios and their corresponding rent/vacancy and capital market states. The five primary credit events that frame the analysis include loan modifications, term default, balloon default, extension, and ability to pay off at balloon. The resulting output is the expected loss adjusted cash flows for each bond under the base case and distressed scenarios. Based on the analysis performed, the Company did not recognize a credit loss on commercial mortgage-backed securities during the period.

Corporate bonds - As of ~~September~~June 30, ~~2020,~~2021, gross unrealized losses related to corporate bonds were ~~$1.135~~$0.973 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, analysis for this

asset class includes maintaining detailed financial models that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. Based on the analysis performed, the Company did not recognize a credit loss on corporate bonds during the period.

Foreign bonds – As of ~~September~~June 30, ~~2020,~~2021, gross unrealized losses related to foreign bonds were ~~$0.204~~$0.235 million. To assess whether the decline in fair value below amortized cost has resulted from a credit loss or other factors, detailed financial models are maintained that include a projection of each issuer’s future financial performance, including prospective debt servicing capabilities, capital structure composition, and the value of the collateral. The analysis incorporates the macroeconomic environment, industry conditions in which the issuer operates, the issuer’s current competitive position, its vulnerability to changes in the competitive and regulatory environment, issuer liquidity, issuer commitment to bondholders, issuer creditworthiness, and asset protection. Part of the process also includes running downside scenarios to evaluate the expected likelihood of default as well as potential losses in the event of default. Based on the analysis performed, the Company did not recognize a credit loss on foreign bonds during the period.

The Company has evaluated its investment portfolio and has determined that an allowance for expected credit losses on its investments is not required.

~~The Company recorded the following other than temporary impairments (“OTTI”) on its investment portfolio for the quarter and nine months ended September 30, 2019:~~

The following table is an analysis of the credit losses recognized in earnings on fixed maturities held by the Company for the quarter and nine months ended September 30, 2019 for which a portion of the OTTI loss was recognized in other comprehensive income.

Accumulated other comprehensive income, net of tax, as of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019~~2020 was as follows:

(Dollars in thousands)	September 30, 2020			December 31, 2019			June 30, 2021			December 31, 2020
Net unrealized gains (losses) from:
Fixed maturities	$	43,336		$	21,591		$	23,494		$	42,177
Foreign currency fluctuations		(587	)		(1,032	)		(41	)		161
Deferred taxes		(7,029	)		(2,950	)		(4,485	)		(8,030	)
Accumulated other comprehensive income, net of tax	$	35,720		$	17,609		$	18,968		$	34,308

The following tables present the changes in accumulated other comprehensive income, net of tax, by ~~component~~components, for the quarters and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019:~~2020:

Quarter Ended September 30, 2020 (Dollars In Thousands)	Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income
Quarter Ended June 30, 2021 (Dollars In Thousands)										Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income
Beginning balance, net of tax	$	38,736		$	(1,043	)	$	37,693		$	9,819		$	34		$	9,853
Other comprehensive income before reclassification, before tax		1,852			456			2,308			11,797			(84	)		11,713
Amounts reclassified from accumulated other comprehensive income, before tax		(2,276	)		0			(2,276	)		(453	)		0			(453	)
Other comprehensive income, before tax		(424	)		456			32			11,344			(84	)		11,260
Income tax (expense) benefit		(2,128	)		123			(2,005	)
Income tax benefit											(2,162	)		17			(2,145	)
Ending balance, net of tax	$	36,184		$	(464	)	$	35,720		$	19,001		$	(33	)	$	18,968

Quarter Ended September 30, 2019 (Dollars In Thousands)	Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income
Quarter Ended June 30, 2020 (Dollars In Thousands)										Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income
Beginning balance, net of tax	$	17,745		$	(1,203	)	$	16,542		$	14,895		$	(2,335	)	$	12,560
Other comprehensive income (loss) before reclassification, before tax		10,767			200			10,967
Other comprehensive income before reclassification, before tax											37,805			1,292			39,097
Amounts reclassified from accumulated other comprehensive income, before tax		(946	)		0			(946	)		(12,820	)		0			(12,820	)
Other comprehensive income (loss), before tax		9,821			200			10,021
Other comprehensive income, before tax											24,985			1,292			26,277
Income tax expense		(1,249	)		0			(1,249	)		(1,144	)		0			(1,144	)
Ending balance, net of tax	$	26,317		$	(1,003	)	$	25,314		$	38,736		$	(1,043	)	$	37,693

Nine Months Ended September 30, 2020 (Dollars In Thousands)	Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income
Six Months Ended June 30, 2021 (Dollars In Thousands)										Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income
Beginning balance, net of tax	$	18,641		$	(1,032	)	$	17,609		$	34,181		$	127		$	34,308
Other comprehensive income before reclassification, before tax		38,773			445			39,218			(19,389	)		(202	)		(19,591	)
Amounts reclassified from accumulated other comprehensive income, before tax		(17,028	)		0			(17,028	)		706			0			706
Other comprehensive income, before tax		21,745			445			22,190			(18,683	)		(202	)		(18,885	)
Income tax (expense) benefit		(4,202	)		123			(4,079	)		3,503			42			3,545
Ending balance, net of tax	$	36,184		$	(464	)	$	35,720		$	19,001		$	(33	)	$	18,968

Nine Months Ended September 30, 2019 (Dollars In Thousands)	Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income
Six Months Ended June 30, 2020 (Dollars In Thousands)										Unrealized Gains and Losses on Available for Sale Securities			Foreign Currency Items			Accumulated Other Comprehensive Income
Beginning balance, net of tax	$	(19,897	)	$	(1,334	)	$	(21,231	)	$	18,641		$	(1,032	)	$	17,609
Other comprehensive income before reclassification, before tax		55,960			331			56,291
Other comprehensive income (loss) before reclassification, before tax											36,921			(11	)		36,910
Amounts reclassified from accumulated other comprehensive income, before tax		(2,834	)		0			(2,834	)		(14,752	)		0			(14,752	)
Other comprehensive income, before tax		53,126			331			53,457
Other comprehensive income (loss), before tax											22,169			(11	)		22,158
Income tax expense		(6,912	)		0			(6,912	)		(2,074	)		0			(2,074	)
Ending balance, net of tax	$	26,317		$	(1,003	)	$	25,314		$	38,736		$	(1,043	)	$	37,693

The reclassifications out of accumulated other comprehensive income for the quarters and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019~~2020 were as follows:

		Amounts Reclassified from Accumulated Other Comprehensive Income							Amounts Reclassified from Accumulated Other Comprehensive Income
(Dollars in thousands)		Quarters Ended September 30,							Quarters Ended June 30,
Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Consolidated Statements of Operations	2020			2019			Affected Line Item in the Consolidated Statements of Operations	2021			2020
Unrealized gains and losses on available for sale securities	Other net realized investment (gains) losses	$	(2,276	)	$	(946	)	Other net realized investment (gains) losses	$	(453	)	$	(12,820	)
	Other than temporary impairment losses on investments		0			0		Income tax expense (benefit)		158			3,432
	Total before tax		(2,276	)		(946	)	Total reclassifications, net of tax	$	(295	)	$	(9,388	)
	Income tax expense (benefit)		172			99
	Unrealized gains and losses on available for sale securities, net of tax		(2,104	)		(847	)
Foreign currency items	Other net realized investment (gains) losses		0			0
	Income tax expense		0			0
	Foreign currency items, net of tax		0			0
Total reclassifications	Total reclassifications, net of tax	$	(2,104	)	$	(847	)

		Amounts Reclassified from Accumulated Other Comprehensive Income							Amounts Reclassified from Accumulated Other Comprehensive Income
(Dollars in thousands)		Nine Months Ended September 30,							Six Months Ended June 30,
Details about Accumulated Other Comprehensive Income Components	Affected Line Item in the Consolidated Statements of Operations	2020			2019			Affected Line Item in the Consolidated Statements of Operations	2021			2020
Unrealized gains and losses on available for sale securities	Other net realized investment (gains) losses	$	(17,028	)	$	(4,731	)	Other net realized investment (gains) losses	$	706		$	(14,752	)
	Other than temporary impairment losses on investments		0			1,897		Income tax expense (benefit)		(185	)		3,651
	Total before tax		(17,028	)		(2,834	)	Total reclassifications, net of tax	$	521		$	(11,101	)
	Income tax expense (benefit)		3,823			169
	Unrealized gains and losses on available for sale securities, net of tax		(13,205	)		(2,665	)
Foreign currency items	Other net realized investment (gains) losses		0			0
	Income tax expense		0			0
	Foreign currency items, net of tax		0			0
Total reclassifications	Total reclassifications, net of tax	$	(13,205	)	$	(2,665	)

The components of net realized investment gains (losses) for the quarters and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019~~2020 were as follows:

	Quarters Ended September 30,						Nine Months Ended September 30,						Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2020			2019			2020			2019			2021			2020			2021			2020
Fixed maturities:
Gross realized gains	$	2,705		$	1,054		$	21,685		$	5,765		$	2,300		$	16,738		$	5,678		$	18,980
Gross realized losses		(429	)		(108	)		(4,657	)		(2,931	)		(1,847	)		(3,918	)		(6,384	)		(4,228	)
Net realized gains (losses)		2,276			946			17,028			2,834			453			12,820			(706	)		14,752
Equity securities:
Gross realized gains		4,942			1,681			14,669			26,936			4,338			29,402			8,784			11,507
Gross realized losses		(55	)		(3,146	)		(31,870	)		(9,076	)		(943	)		(1,508	)		(1,021	)		(33,595	)
Net realized gains (losses)		4,887			(1,465	)		(17,201	)		17,860			3,395			27,894			7,763			(22,088	)
Derivatives:
Gross realized gains		1,520			341			19,514			341			1,366			7,625			3,719			19,401
Gross realized losses		(1,360	)		(2,512	)		(41,673	)		(9,745	)		(1,381	)		(9,832	)		(3,124	)		(41,720	)
Net realized gains (losses) (1)		160			(2,171	)		(22,159	)		(9,404	)		(15	)		(2,207	)		595			(22,319	)
Total net realized investment gains (losses)	$	7,323		$	(2,690	)	$	(22,332	)	$	11,290		$	3,833		$	38,507		$	7,652		$	(29,655	)

Net realized investment gains (losses) for the quarter and nine months ended September 30, 2020 were primarily due to the impact of changes in fair value due to the recent disruption in the global financial markets.

The following table shows the calculation of the portion of realized gains and losses related to equity securities held as of ~~September~~June 30, ~~2020~~2021 and ~~2019:~~2020:

The proceeds from sales and redemptions of available for sale and equity securities resulting in net realized investment gains (losses) for the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019~~2020 were as follows:

	Nine Months Ended September 30,				Six Months Ended June 30,
(Dollars in thousands)	2020		2019		2021		2020
Fixed maturities	$	600,962	$	642,049	$	636,040	$	427,111
Equity securities		563,926		206,212		42,821		378,915

The sources of net investment income for the quarters and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019~~2020 were as follows:

	Quarters Ended September 30,						Nine Months Ended September 30,						Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2020			2019			2020			2019			2021			2020			2021			2020
Fixed maturities	$	7,421		$	8,806		$	25,013		$	27,692		$	6,648		$	8,551		$	13,475		$	17,592
Equity securities		1,390			1,704			4,161			4,384			618			1,407			1,293			2,771
Cash and cash equivalents		260			372			492			1,242			214			52			264			232
Other invested assets		3,485			1,280			(8,004	)		1,394			3,788			(12,022	)		6,785			(11,489	)
Total investment income		12,556			12,162			21,662			34,712			11,268			(2,012	)		21,817			9,106
Investment expense		(810	)		(814	)		(2,146	)		(2,319	)		(635	)		(347	)		(1,348	)		(1,336	)
Net investment income	$	11,746		$	11,348		$	19,516		$	32,393		$	10,633		$	(2,359	)	$	20,469		$	7,770

The Company’s total investment return on a pre-tax basis for the quarters and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019~~2020 were as follows:

	Quarters Ended September 30,						Nine Months Ended September 30,						Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2020			2019			2020			2019			2021			2020			2021			2020
Net investment income	$	11,746		$	11,348		$	19,516		$	32,393		$	10,633		$	(2,359	)	$	20,469		$	7,770
Net realized investment gains (losses)		7,323			(2,690	)		(22,332	)		11,290			3,833			38,507			7,652			(29,655	)
Change in unrealized holding gains and losses		32			10,021			22,190			53,457
Change in unrealized holding gains (losses)														11,260			26,277			(18,885	)		22,158
Net realized and unrealized investment returns		7,355			7,331			(142	)		64,747			15,093			64,784			(11,233	)		(7,497	)
Total investment return	$	19,101		$	18,679		$	19,374		$	97,140		$	25,726		$	62,425		$	9,236		$	273
Total investment return % ₍₁₎		1.2	%		1.2	%		1.3	%		6.2	%		1.8	%		3.9	%		0.6	%		0.0	%
Average investment portfolio ₍₂₎	$	1,541,227		$	1,585,165		$	1,528,005		$	1,562,177		$	1,452,754		$	1,591,987		$	1,463,027		$	1,620,186

As of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company did 0t own any fixed maturity securities that were non-income producing for the preceding twelve months.

As of ~~September~~June 30, ~~2020,~~2021, the Company held insurance enhanced bonds with a market value of approximately ~~$26.0~~$30.3 million which represented ~~1.8%~~2.0% of the Company’s total cash and invested assets, net of payable/ receivable for securities purchased and sold.

The insurance enhanced bonds are comprised of $15.3 million of municipal bonds, ~~$10.6~~$7.2 million of commercial mortgage-backed securities, and ~~less than $0.1~~$7.8 million of collateralized mortgage obligations. The financial guarantors of the Company’s ~~$26.0~~$30.3 million of insurance enhanced commercial-mortgage-backed, municipal securities, and collateralized mortgage obligations include Municipal Bond Insurance Association ($~~3.2~~2.8 million), Assured Guaranty Corporation ($~~10.0~~9.6 million), Federal Home Loan Mortgage Corporation ($~~10.6~~15.0 million), Federal National Mortgage Association ($0.3 million), Ambac Financial Group ($~~2.2~~1.9 million), School Bond Guaranty Program ($0.2 million), and ~~Federal Deposit Insurance Corporation (less than $0.1~~Higher Education State Aid Intercept Program ($0.5 million).

The Company had no direct investments in the entities that have provided financial guarantees or other credit support to any security held by the Company at ~~September~~June 30, ~~2020.~~2021.

Certain cash balances, cash equivalents, ~~equity securities,~~ and bonds available for sale were deposited with various governmental authorities in accordance with statutory requirements, were held as collateral, or were held in ~~trust pursuant to intercompany reinsurance agreements.~~trust. The fair values were as follows as of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019:~~2020:

	Estimated Fair Value				Estimated Fair Value
(Dollars in thousands)	September 30, 2020		December 31, 2019		June 30, 2021		December 31, 2020
On deposit with governmental authorities	$	27,082	$	26,431	$	26,762	$	26,966
Intercompany trusts held for the benefit of U.S. policyholders		142,496		179,116
Held in trust pursuant to third party requirements		84,174		133,122		81,033		100,234
Letter of credit held for third party requirements		2,645		1,458		2,512		3,970
Securities held as collateral		555		91,229		0		494
Total	$	256,952	$	431,356	$	110,307	$	131,664

A Variable Interest Entity (“VIE”) refers to an investment in which an investor holds a controlling interest that is not based on the majority of voting rights. Under the VIE model, the party that has the power to exercise significant management influence and maintain a controlling financial interest in the entity’s economics is said to be the primary beneficiary, and is required to consolidate the entity within their results. Other entities that participate in a VIE, for which their financial interests fluctuate with changes in the fair value of the investment entity’s net assets but do not have significant management influence and the ability to direct the VIE’s significant economic activities are said to have a variable interest in the VIE but do not consolidate the VIE in their financial results.

The Company has variable interests in 34 VIE’s for which it is not the primary beneficiary. These investments are accounted for under the equity method of accounting as their ownership interest exceeds 3% of their respective investments.

The carrying value of one of the Company’s VIE’s, which invests in distressed securities and assets, was ~~$11.3~~$9.9 million and ~~$13.5~~$10.8 million as of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was ~~$25.5~~$24.1 million and ~~$27.7~~$25.0 million at ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively. The carrying value of a second VIE that also invests in distressed securities and assets was ~~$17.0~~$13.7 million and ~~$24.0~~$15.7 million at ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively. The Company’s maximum exposure to loss from this VIE, which factors in future funding commitments, was ~~$34.0~~$30.7 million and ~~$41.0~~$32.7 million at ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively. The carrying value and maximum exposure to loss of a third VIE that invests in ~~REIT~~Real Estate Investment Trust (“REIT”) qualifying assets was ~~$9.5~~$11.6 million and ~~$9.8~~$10.5 million as of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively. The ~~Company’s~~carrying value and maximum exposure to loss ~~from this~~of a fourth VIE, which ~~factors~~invests in ~~future funding commitments,~~a broad portfolio of non-investment grade loans, was ~~$9.5~~$105.7 million and ~~$10.3~~$60.0 million ~~at September~~as of June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively. The Company’s investment in VIEs is included in other invested assets on the consolidated balance sheet with changes in carrying value recorded in the consolidated statements of operations.

Derivatives are used by the Company to reduce risks from changes in interest rates and limit exposure to severe equity market changes. The Company has interest rate swaps with terms to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. ~~In 2019, the~~The Company ~~began to utilize~~also utilizes exchange-traded futures contracts, which give the holder the right and obligation to participate in market movements at a future date, to allow the Company to react faster to market conditions. The Company posts collateral and settles variation margin in cash on a daily basis equal to the amount of the futures contracts’ change in value scaled by a multiplier.

The Company accounts for the interest rate swaps and futures as non-hedge instruments and recognizes the fair value of the interest rate swaps in other assets or other liabilities on the consolidated balance sheets with the changes in fair value recognized as net realized investment gains or losses in the consolidated statements of operations. The Company is ultimately responsible for the valuation of the interest rate swaps. To aid in determining the estimated fair value of the

interest rate swaps, the Company relies on the forward interest rate curve and information obtained from a third party financial institution.

The following table summarizes information on the location and the gross amount of the derivatives on the consolidated balance sheets as of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019:~~2020:

(Dollars in thousands)		September 30, 2020					December 31, 2019						June 30, 2021					December 31, 2020
Derivatives Not Designated as Hedging Instruments under ASC 815	Balance Sheet Location	Notional Amount		Fair Value			Notional Amount		Fair Value			Balance Sheet Location	Notional Amount		Fair Value			Notional Amount		Fair Value
Interest rate swap agreements	Other assets/liabilities	$	200,000	$	(17,931	)	$	200,000	$	(10,275	)	Other assets/liabilities	$	213,022	$	(12,712	)	$	213,022	$	(16,430	)
Futures contracts on bonds ₍₁₎	Other assets/liabilities		30,418		0			16,894		0		Other assets/liabilities		0		0			28,996		0
Futures contracts on equities ₍₁₎	Other assets/liabilities		0		0			57,816		0
Total		$	230,418	$	(17,931	)	$	274,710	$	(10,275	)
Total ₍₂₎													$	213,022	$	(12,712	)	$	242,018	$	(16,430	)

The following table summarizes the net gains (losses) included in the consolidated statements of operations for changes in the fair value of the derivatives and the periodic net interest settlements under the derivatives for the quarters and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019:~~2020:

		Quarters Ended September 30,					Nine Months Ended September 30,							Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	Consolidated Statements of Operations Line	2020		2019			2020			2019			Consolidated Statements of Operations Line	2021			2020			2021			2020
Interest rate swap agreements	Net realized investment gains (losses)	$	45	$	(1,831	)	$	(10,827	)	$	(9,064	)	Net realized investment gains (losses)	$	(15	)	$	(1,449	)	$	914		$	(10,872	)
Futures contracts on bonds	Net realized investment gains (losses)		115		15			(2,343	)		15		Net realized investment gains (losses)		0			(59	)		(319	)		(2,458	)
Futures contracts on equities	Net realized investment gains (losses)		0		(355	)		(8,989	)		(355	)	Net realized investment gains (losses)		0			(699	)		0			(8,989	)
Total		$	160	$	(2,171	)	$	(22,159	)	$	(9,404	)		$	(15	)	$	(2,207	)	$	595		$	(22,319	)

As of ~~both September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company is due ~~$3.0~~$2.4 million and $2.8 million, respectively, for funds it needed to post to execute the swap transaction and ~~$18.6~~$15.0 million and ~~$12.5~~$17.5 million, respectively, for margin calls made in connection with the interest rate swaps. These amounts are included in other assets on the consolidated balance sheets.

As of ~~September~~June 30, ~~2020 and~~2021, the Company was 0t utilizing futures contracts. As of December 31, ~~2019,~~2020, the Company posted initial margin of ~~$0.6~~$0.5 million ~~and $3.0 million, respectively,~~ in securities for trading futures contracts ~~and has~~with a mark-to-market ~~payable~~receivable of less than $0.1 ~~million and receivable of $0.3 million, respectively, in connection with the futures contracts.~~million. Variation margin is included in other assets on the consolidated balance sheets.

The accounting standards related to fair value measurements define fair value, establish a framework for measuring fair value, outline a fair value hierarchy based on inputs used to measure fair value, and enhance disclosure requirements for fair value measurements. These standards do not change existing guidance as to whether or not an instrument is carried at fair value. The Company has determined that its fair value measurements are in accordance with the requirements of these accounting standards.

The Company’s invested assets and derivative instruments are carried at their fair value and are categorized based upon a fair value hierarchy:

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset.

The following table presents information about the Company’s invested assets and derivative instruments measured at fair value on a recurring basis as of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019~~2020 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.

	Fair Value Measurements								Fair Value Measurements
As of September 30, 2020 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
As of June 30, 2021 (Dollars in thousands)									Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasury and agency obligations	$	200,457	$	1,500	$	0	$	201,957
U.S. treasuries									$	147,049	$	0	$	0	$	147,049
Agency obligations										0		10,577		0		10,577
Obligations of states and political subdivisions		0		62,001		0		62,001		0		65,486		0		65,486
Mortgage-backed securities		0		401,084		0		401,084		0		308,197		0		308,197
Commercial mortgage-backed securities		0		138,911		0		138,911		0		110,033		0		110,033
Asset-backed securities		0		139,150		0		139,150		0		131,784		831		132,615
Corporate bonds		0		258,861		0		258,861		0		276,036		404		276,440
Foreign corporate bonds		0		101,811		0		101,811		0		123,700		0		123,700
Total fixed maturities		200,457		1,103,318		0		1,303,775		147,049		1,025,813		1,235		1,174,097
Equity securities		64,673		11,268		0		75,941		68,261		22,408		0		90,669
Total assets measured at fair value	$	265,130	$	1,114,586	$	0	$	1,379,716	$	215,310	$	1,048,221	$	1,235	$	1,264,766
Liabilities:
Derivative instruments	$	0	$	17,931	$	0	$	17,931	$	0	$	12,712	$	0	$	12,712
Total liabilities measured at fair value	$	0	$	17,931	$	0	$	17,931	$	0	$	12,712	$	0	$	12,712

	Fair Value Measurements								Fair Value Measurements
As of December 31, 2019 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
As of December 31, 2020 (Dollars in thousands)									Level 1		Level 2		Level 3		Total
Assets:
Fixed maturities:
U.S. treasury and agency obligations	$	156,689	$	0	$	0	$	156,689
U.S. treasuries									$	197,480	$	0	$	0	$	197,480
Obligations of states and political subdivisions		0		63,838		0		63,838		0		61,243		0		61,243
Mortgage-backed securities		0		328,374		0		328,374		0		358,778		0		358,778
Commercial mortgage-backed securities		0		188,104		0		188,104		0		110,959		0		110,959
Asset-backed securities		0		168,537		0		168,537		0		117,593		0		117,593
Corporate bonds		0		248,259		0		248,259		0		240,717		0		240,717
Foreign corporate bonds		0		99,358		0		99,358		0		104,416		0		104,416
Total fixed maturities		156,689		1,096,470		0		1,253,159		197,480		993,706		0		1,191,186
Equity securities		251,448		11,656		0		263,104		87,307		11,683		0		98,990
Total assets measured at fair value	$	408,137	$	1,108,126	$	0	$	1,516,263	$	284,787	$	1,005,389	$	0	$	1,290,176
Liabilities:
Derivative instruments	$	0	$	10,275	$	0	$	10,275	$	0	$	16,430	$	0	$	16,430
Total liabilities measured at fair value	$	0	$	10,275	$	0	$	10,275	$	0	$	16,430	$	0	$	16,430

The securities classified as Level 1 in the above table consist of U.S. ~~Treasuries~~treasuries and equity securities actively traded on an exchange.

The securities classified as Level 2 in the above table consist primarily of fixed maturity securities and derivative instruments. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities, security prices are derived through recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. If there are no recent reported trades, matrix or model processes are used to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Included in the pricing of asset-backed securities, collateralized mortgage obligations, and mortgage-backed securities are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral. The estimated fair value of the derivative instruments, consisting of interest rate swaps, is obtained from a third party financial institution that utilizes observable inputs such as the forward interest rate curve.

The investments classified as Level 3 in the above table consist of fixed maturities with unobservable inputs. The Company does not have access to daily valuations; therefore, market trades, performance of the underlying assets, and key risks are considered in order to estimate fair values of these debt instruments.

The following table presents changes in Level 3 investments measured at fair value on a recurring basis for the quarters and six months ended June 30, 2021 and 2020:

For the Company’s material debt arrangements, the current fair value of the Company’s debt at ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019~~2020 was as follows:

The ~~fair value of the margin borrowing facility approximates its carrying value due to the facility being due on demand. The~~ subordinated notes due ~~2045 and~~ 2047 are publicly traded instruments and are classified as Level 1 in the fair value hierarchy.

Other invested assets consist of limited liability companies and limited partnerships whose carrying value approximates fair value. The following table provides the fair value and future funding commitments related to these investments at ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019.~~2020.

	September 30, 2020				December 31, 2019				June 30, 2021				December 31, 2020
(Dollars in thousands)	Fair Value		Future Funding Commitment		Fair Value		Future Funding Commitment		Fair Value		Future Funding Commitment		Fair Value		Future Funding Commitment
European Non-Performing Loan Fund, LP ₍₁₎	$	11,283	$	14,214	$	13,530	$	14,214	$	9,930	$	14,214	$	10,808	$	14,214
Distressed Debt Fund, LP ₍₂₎		16,979		17,000		23,966		17,000		13,748		17,000		15,721		17,000
Mortgage Debt Fund, LP ₍₃₎		9,487		0		9,783		506		11,615		0		10,489		0
Credit Fund, LLC ₍₄₎										105,710		0		60,000		0
Global Debt Fund, LP ₍₅₎										25,000		0		0		0
Total	$	37,749	$	31,214	$	47,279	$	31,720	$	166,003	$	31,214	$	97,018	$	31,214

Limited Liability Companies and Limited Partnerships with ownership interest exceeding 3%

The Company uses the equity method to account for investments in limited liability companies and limited partnerships where its ownership interest exceeds 3%. The equity method of accounting for an investment in a limited ~~partnership~~liability companies and limited partnerships requires that its cost basis be updated to account for the income or loss earned on the investment. In the Fair Value of Alternative Investments table above, all of the investments, except for the Credit Fund, LLC, are booked on a one quarter lag due to non-availability of data at the time the financial statements are prepared. Information for the Credit Fund, LLC is received on a timely basis and is included in current results. The investment income associated with these limited liability companies and limited partnerships ~~which is booked on a one quarter lag,~~ is reflected in the consolidated statements of operations in the amounts of ~~$3.5~~$3.8 million and ~~$1.3~~($12.0) million for the quarters ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and ~~$(8.0)~~$6.8 million and ~~$1.4~~($11.5) million for the ~~nine~~six months ended ~~September~~June 30, 2021 and 2020, ~~and 2019,~~ respectively.

The Company’s pricing vendors provide prices for all investment categories except for investments in limited liability companies and limited partnerships. Two primary vendors are utilized to provide prices for equity and fixed maturity securities.

The following is a description of the valuation methodologies used by the Company’s pricing vendors for investment securities carried at fair value:

The Company performs certain procedures to validate whether the pricing information received from the pricing vendors is reasonable, to ensure that the fair value determination is consistent with accounting guidance, and to ensure that its assets are properly classified in the fair value hierarchy. The Company’s procedures include, but are not limited to:

During the quarters and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, the Company has not adjusted quotes or prices obtained from the pricing vendors.

6.Allowance for Expected Credit Losses - ~~Premiums Receivable~~Premium Receivables and Reinsurance Receivables

The Company implemented new accounting guidance on January 1, 2020 related to the measurement of credit losses on financial instruments. Please see Note 17 for further discussion on this new accounting guidance.

For ~~premiums~~premium receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, direct placement with collection agencies, solvency of insured or agent, terminated agents, and other relevant factors.

The following table is an analysis of the allowance for expected credit losses related to the Company's premium receivables for the quarters and six months ended June 30, 2021 and 2020:

For reinsurance receivables, the allowance is based upon the Company’s ongoing review of key aspects of amounts outstanding, including but not limited to, length of collection periods, disputes, applicable coverage defenses, insolvent reinsurers, financial strength of solvent reinsurers based on ~~A.M~~AM Best Ratings and other relevant factors.

The following table is an analysis of the allowance for expected credit losses related to the Company's ~~premiums receivable and~~ reinsurance receivables for the ~~quarter~~quarters and ~~nine~~six months ended ~~September~~June 30, 2021 and 2020:

	Quarter Ended September 30, 2020					Nine Months Ended September 30, 2020					Quarters Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	Premiums Receivable			Reinsurance Receivables		Premiums Receivable			Reinsurance Receivables		2021		2020		2021		2020
Beginning balance	$	2,931		$	8,992	$	2,754		$	8,992	$	8,992	$	8,992	$	8,992	$	8,992
Current period provision for expected credit losses		476			0		951			0		0		0		0		0
Write-offs		(538	)		0		(836	)		0		0		0		0		0
Ending balance	$	2,869		$	8,992	$	2,869		$	8,992	$	8,992	$	8,992	$	8,992	$	8,992

Effective August 28, 2020, ~~the parent Company,~~ Global Indemnity Group, LLC isbecame a publicly traded partnership for U.S. federal income tax purposes and meets the qualifying income exception to maintain partnership status. As a publicly traded partnership, Global Indemnity Group, LLC is generally not subject to federal income tax and most state income taxes. However, income earned by the subsidiaries of Global Indemnity Group, LLC is subject to corporate tax in the United States and certain foreign jurisdictions.

~~As of September~~June 30, ~~2020,~~2021, the statutory income tax rates of the countries where the Company conducts or conducted business are 21% in the United States, 0% in Bermuda, ~~0% in the Cayman Islands,~~ 19% in the United Kingdom, and 25% on non-trading income, 33% on capital gains and 12.5% on trading income in the Republic of Ireland. The statutory income tax rate of each country is applied against the expected annual taxable income of the Company in each country to estimate the annual income tax expense.

The Company’s income (loss) before income taxes from its non-U.S. subsidiaries and U.S. subsidiaries for the quarters and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019~~2020 were as follows:

Quarter Ended September 30, 2020 (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries			Eliminations			Total
Quarter Ended June 30, 2021 (Dollars in thousands)													Non-U.S. Subsidiaries		U.S. Subsidiaries		Eliminations		Total
Revenues:
Gross written premiums	$	13,085		$	130,664		$	0		$	143,749		$	0	$	175,236	$	0	$	175,236
Net written premiums	$	13,085		$	117,526		$	0		$	130,611		$	0	$	160,653	$	0	$	160,653
Net earned premiums	$	9,983		$	130,319		$	0		$	140,302		$	0	$	149,408	$	0	$	149,408
Net investment income		4,054			9,851			(2,159	)		11,746			0		10,633		0		10,633
Net realized investment gains		1,511			5,812			0			7,323			0		3,833		0		3,833
Other income		164			378			0			542			0		521		0		521
Total revenues		15,712			146,360			(2,159	)		159,913			0		164,395		0		164,395
Losses and Expenses:
Net losses and loss adjustment expenses		519			96,629			0			97,148			0		90,938		0		90,938
Acquisition costs and other underwriting expenses		3,584			49,684			0			53,268			0		57,213		0		57,213
Corporate and other operating expenses		17,283			3,913			0			21,196			0		6,329		0		6,329
Interest expense		193			5,586			(2,159	)		3,620			0		2,696		0		2,696
Loss on extinguishment of debt		3,060			0			0			3,060
Loss before income taxes	$	(8,927	)	$	(9,452	)	$	0		$	(18,379	)
Income before income taxes													$	0	$	7,219	$	0	$	7,219

Quarter Ended September 30, 2019 (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries			Eliminations			Total
Quarter Ended June 30, 2020 (Dollars in thousands)													Non-U.S. Subsidiaries			U.S. Subsidiaries			Eliminations			Total
Revenues:
Gross written premiums	$	19,980		$	137,197		$	0		$	157,177		$	16,052		$	148,497		$	0		$	164,549
Net written premiums	$	19,990		$	118,846		$	0		$	138,836		$	16,052		$	131,212		$	0		$	147,264
Net earned premiums	$	19,512		$	113,800		$	0		$	133,312		$	19,546		$	122,301		$	0		$	141,847
Net investment income		7,212			7,732			(3,596	)		11,348
Net investment income (loss)														6,906			(5,777	)		(3,488	)		(2,359	)
Net realized investment gains (losses)		375			(3,065	)		0			(2,690	)		(1,668	)		40,175			0			38,507
Other income (loss)		(234	)		498			0			264
Other income														302			464			0			766
Total revenues		26,865			118,965			(3,596	)		142,234			25,086			157,163			(3,488	)		178,761
Losses and Expenses:
Net losses and loss adjustment expenses		7,628			65,955			0			73,583			(207	)		67,504			0			67,297
Acquisition costs and other underwriting expenses		6,201			47,165			0			53,366			5,695			47,883			0			53,578
Corporate and other operating expenses		1,514			2,344			0			3,858			4,947			3,671			0			8,618
Interest expense		351			8,268			(3,596	)		5,023			334			7,866			(3,488	)		4,712
Income (loss) before income taxes	$	11,171		$	(4,767	)	$	0		$	6,404
Income before income taxes													$	14,317		$	30,239		$	0		$	44,556

Nine Months Ended September 30, 2020 (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries			Eliminations			Total
Six Months Ended June 30, 2021 (Dollars in thousands)													Non-U.S. Subsidiaries		U.S. Subsidiaries		Eliminations		Total
Revenues:
Gross written premiums	$	46,654		$	417,368		$	0		$	464,022		$	0	$	338,794	$	0	$	338,794
Net written premiums	$	46,654		$	370,333		$	0		$	416,987		$	0	$	308,336	$	0	$	308,336
Net earned premiums	$	53,384		$	373,233		$	0		$	426,617		$	0	$	293,108	$	0	$	293,108
Net investment income		17,336			11,324			(9,144	)		19,516			0		20,469		0		20,469
Net realized investment losses		(3,867	)		(18,465	)		0			(22,332	)
Net realized investment gains														0		7,652		0		7,652
Other income		148			1,325			0			1,473			0		898		0		898
Total revenues		67,001			367,417			(9,144	)		425,274			0		322,127		0		322,127
Losses and Expenses:
Net losses and loss adjustment expenses		12,874			229,218			0			242,092			0		181,721		0		181,721
Acquisition costs and other underwriting expenses		17,828			145,430			0			163,258			0		111,977		0		111,977
Corporate and other operating expenses		23,357			10,680			0			34,037			0		10,605		0		10,605
Interest expense		869			21,472			(9,144	)		13,197			0		5,291		0		5,291
Loss on extinguishment of debt		3,060			0			0			3,060
Income (loss) before income taxes	$	9,013		$	(39,383	)	$	0		$	(30,370	)
Income before income taxes													$	0	$	12,533	$	0	$	12,533

Nine Months Ended September 30, 2019 (Dollars in thousands)	Non-U.S. Subsidiaries			U.S. Subsidiaries		Eliminations			Total
Six Months Ended June 30, 2020 (Dollars in thousands)											Non-U.S. Subsidiaries			U.S. Subsidiaries			Eliminations			Total
Revenues:
Gross written premiums	$	69,588		$	409,111	$	0		$	478,699	$	33,569		$	286,704		$	0		$	320,273
Net written premiums	$	69,591		$	351,730	$	0		$	421,321	$	33,569		$	252,807		$	0		$	286,376
Net earned premiums	$	52,798		$	330,804	$	0		$	383,602	$	43,401		$	242,914		$	0		$	286,315
Net investment income		22,254			20,824		(10,685	)		32,393		13,282			1,473			(6,985	)		7,770
Net realized investment gains		1,768			9,522		0			11,290
Net realized investment losses												(5,378	)		(24,277	)		0			(29,655	)
Other income (loss)		(256	)		1,530		0			1,274		(16	)		947			0			931
Total revenues		76,564			362,680		(10,685	)		428,559		51,289			221,057			(6,985	)		265,361
Losses and Expenses:
Net losses and loss adjustment expenses		24,076			177,903		0			201,979		12,355			132,589			0			144,944
Acquisition costs and other underwriting expenses		16,556			137,087		0			153,643		14,244			95,746			0			109,990
Corporate and other operating expenses		4,822			6,880		0			11,702		6,074			6,767			0			12,841
Interest expense		1,059			24,714		(10,685	)		15,088		676			15,886			(6,985	)		9,577
Income before income taxes	$	30,051		$	16,096	$	0		$	46,147
Income (loss) before income taxes											$	17,940		$	(29,931	)	$	0		$	(11,991	)

	Quarters Ended September 30,						Nine Months Ended September 30,						Quarters Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2020			2019			2020			2019			2021		2020		2021		2020
Current income tax expense (benefit):
Foreign	$	130		$	(17	)	$	130		$	(35	)
U.S. Federal		0			0			0			0
Total current income tax expense (benefit)		130			(17	)		130			(35	)
Deferred income tax expense (benefit):
U.S. Federal		(3,339	)		(300	)		(8,303	)		5,198		$	844	$	7,005	$	641	$	(4,964	)
Total deferred income tax expense (benefit)		(3,339	)		(300	)		(8,303	)		5,198			844		7,005		641		(4,964	)
Total income tax expense (benefit)	$	(3,209	)	$	(317	)	$	(8,173	)	$	5,163		$	844	$	7,005	$	641	$	(4,964	)

The weighted average expected tax provision has been calculated using income (loss) before income taxes in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate.

The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate:

	Quarters Ended September 30,												Quarters Ended June 30,
	2020						2019						2021						2020
(Dollars in thousands)	Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income			Amount			% of Pre- Tax Income
Expected tax provision at weighted average tax rate	$	(1,985	)		10.8	%	$	(1,001	)		15.6	%	$	1,516			21.0	%	$	6,348			14.2	%
Adjustments:
Tax exempt interest		(1	)		0			0			0
Dividend exclusion		(86	)		0.5			(33	)		0.5			(19	)		(0.3	)		(41	)		(0.1	)
Non-deductible interest		416			(2.3	)		695			(10.8	)		0			0			678			1.6
Change in tax status		(1,704	)		9.3			0			0
Parent income treated as partnership for tax		(146	)		0.8			0			0			(819	)		(11.3	)		0			0
Other		297			(1.6	)		22			(0.3	)		166			2.3			20			0
Effective income tax benefit	$	(3,209	)		17.5	%	$	(317	)		5.0	%
Effective income tax expense													$	844			11.7	%	$	7,005			15.7	%

The effective income tax ~~benefit~~expense rate for the quarter ended ~~September~~June 30, 2021 decreased to 11.7%, compared to 15.7% for the quarter ended June 30, 2020. Although the percentage of U.S. income before taxes to consolidated income before taxes increased from 67.9% in 2020 to 100.0% in 2021, 54.0% of the U.S. income before taxes for quarter ended June 30, 2021 relates to Global Indemnity Group, LLC for which its income passes through to its shareholders. Global Indemnity Group, LLC has elected to be a partnership for purposes of U.S. tax.

The effective income tax expense rate for the six months ended June 30, 2021 was ~~17.5%~~5.1%, compared with an effective income tax benefit rate of ~~5.0%~~41.4% for the ~~quarter~~six months ended ~~September~~June 30, ~~2019.~~2020. The ~~increase in~~effective income tax ~~benefit~~expense rate of 5.1% for the ~~quarter~~six months ended ~~September~~June 30, ~~2020 was primarily due~~2021 results from 83.1% of income before taxes is from Global Indemnity Group, LLC which has elected to ~~higher pre-tax loss~~be a partnership for ~~the Company’s~~purposes of U.S. ~~subsidiaries~~tax for ~~the quarter ended September 30, 2020as compared~~which its income passes through to the same period in 2019 and the change in tax status which is the income tax benefit recognized on net insurance liabilities that were redomiciled from Bermuda at 0% tax rate to the United States at a 21% tax rate.

its shareholders. The effective income tax benefit rate of 41.4% for the ~~nine~~six months ended ~~September~~June 30, 2020 was 26.9%, compared with an effective income tax expense rate of 11.2% for the nine months ended September 30, 2019. The increase in income tax benefit for the nine months ended September 30, 2020 was primarily due to a pre-tax loss forresulted from investment losses incurred by the Company’s U.S. subsidiaries ~~for~~primarily resulting from the ~~nine months ended September 30, 2020as compared~~impact of changes in fair value on equity securities and derivatives due to ~~a gain~~disruption in the ~~same period in 2019 and the change in tax status which is the income tax benefit recognized on net insurance liabilities that were redomiciled from Bermuda at 0% tax rate to the United States at~~global financial markets as a ~~21% tax rate.~~result of COVID-19.

The Company has a net operating loss (“NOL”) carryforward of ~~$24.9~~$28.3 million as of ~~September~~June 30, ~~2020,~~2021, which begins to expire in 2036 based on when the original NOL was generated. The Company’s NOL carryforward as of December 31, ~~2019~~2020 was ~~$21.9~~$26.2 million.

The Company has a Section 163(j) (“163(j)”) carryforward of ~~$6.8~~$4.2 million and ~~$9.0~~$5.6 million as of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, which can be carried forward indefinitely. The 163(j) carryforward relates to the limitation on the deduction for business interest expense paid or accrued.

The Company had an alternative minimum tax (“AMT”) credit carryforward of $11.0 million as of December 31, 2019. Under the provisions of the CARES Act, the Company filed a request for a full refund in 2020. The Company received $5.5

~~million and $11.0 million of the AMT credit carryforward during the quarter and nine months ended September 30, 2020, respectively.~~

Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:

	Quarters Ended September 30,						Nine Months Ended September 30,						Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2020			2019			2020			2019			2021		2020			2021		2020
Balance at beginning of period	$	651,073		$	608,773		$	630,181		$	680,031		$	675,908	$	639,468		$	662,811	$	630,181
Less: Ceded reinsurance receivables		87,221			59,834			76,273			109,342			79,421		78,753			82,158		76,273
Net balance at beginning of period		563,852			548,939			553,908			570,689			596,487		560,715			580,653		553,908
Incurred losses and loss adjustment expenses related to:
Current year		108,859			80,533			273,709			225,022			85,409		86,603			179,603		164,850
Prior years		(11,711	)		(6,950	)		(31,617	)		(23,043	)		5,529		(19,306	)		2,118		(19,906	)
Total incurred losses and loss adjustment expenses		97,148			73,583			242,092			201,979			90,938		67,297			181,721		144,944
Paid losses and loss adjustment expenses related to:
Current year		60,114			47,290			119,541			102,806			38,558		37,393			60,277		59,427
Prior years		29,612			20,789			105,185			115,419			38,400		26,767			91,630		75,573
Total paid losses and loss adjustment expenses		89,726			68,079			224,726			218,225			76,958		64,160			151,907		135,000
Net balance at end of period		571,274			554,443			571,274			554,443			610,467		563,852			610,467		563,852
Plus: Ceded reinsurance receivables		98,656			78,844			98,656			78,844			87,151		87,221			87,151		87,221
Balance at end of period	$	669,930		$	633,287		$	669,930		$	633,287		$	697,618	$	651,073		$	697,618	$	651,073

When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates.

During the ~~third~~second quarter of ~~2020,~~2021, the Company ~~reduced~~increased its prior accident year loss reserves by ~~$11.7~~$5.5 million, which consisted of a ~~$3.5~~$5.9 million ~~decrease~~increase related to Commercial Specialty, a ~~$2.0 million decrease related to Specialty Property, a $1.3~~$0.1 million decrease related to Farm, Ranch & Stable, and a ~~$4.9~~$0.3 million decrease related to Reinsurance Operations.

The ~~$3.5~~$5.9 million ~~reduction~~increase of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

The ~~$2.0 million decrease of prior accident year loss reserves related to Specialty Property primarily consisted of the following:~~

~~The $1.3~~$0.1 million reduction of prior accident year loss reserves related to Farm, Ranch & Stable primarily consisted of the following:

The ~~$4.9~~$0.3 million decrease in prior accident year loss reserves related to Reinsurance Operations were based on a review of the experience reported from cedants. There was a ~~$3.2~~$0.3 million decrease in the property lines ~~primarily~~mainly in the ~~2009~~2017 through ~~2012 and 2014 through 2018~~2020 accident ~~years, partially offset by an increase in the 2019 accident year. In addition, there was a reduction of $1.7 million in the professional lines in the 2014 and 2015 accident~~ years.

During the ~~third~~second quarter of ~~2019,~~2020, the Company reduced its prior accident year loss reserves by ~~$7.0~~$19.3 million which consisted of a ~~$5.2~~$14.2 million decrease related to Commercial Specialty, ~~$1.3~~a $4.6 million decrease related to Specialty Property, ~~$1.2~~a $0.8 million decrease related to Farm, Ranch & Stable, and a ~~$0.7~~$0.3 million increase related to Reinsurance Operations.

The ~~$5.2~~$14.2 million reduction of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

~~The $1.3 million reduction of prior accident year loss reserves related to Specialty Property primarily consisted of the following:~~

~~The $1.2 million reduction of prior accident year loss reserves related to Farm, Ranch, & Stable primarily consisted of the following:~~

~~The $0.7 million increase in prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:~~

During the first nine months of 2020, the Company reduced its prior accident year loss reserves by $31.6 million, which consisted of a $17.8 million decrease related to Commercial Specialty, a $6.6 million decrease related to Specialty Property, a $2.1 million decrease related to Farm, Ranch, & Stable, and a $5.1 million decrease related to Reinsurance Operations.

~~The $17.8 million decrease in prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:~~

The $4.6 million decrease of prior accident year loss reserves related to Specialty Property primarily consisted of the following:

The $0.8 million reduction of prior accident year loss reserves related to Farm, Ranch & Stable primarily consisted of the following:

The $0.3 million increase in prior accident year loss reserves related to Reinsurance Operations was from the property lines. Based on a review of the experience reported from cedants, increases were in the 2011 and 2019 accident years, partially offset by decreases in the 2012 through 2018 accident years.

During the first six months of 2021, the Company increased its prior accident year loss reserves by $2.1 million, which consisted of a $5.6 million increase related to Commercial Specialty, a $1.6 million decrease related to Specialty Property, a $0.9 million decrease related to Farm, Ranch & Stable, and a $1.0 million decrease related to Reinsurance Operations.

The $5.6 million increase in prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

The $1.6 million decrease in prior accident year loss reserves related to Specialty Property primarily consisted of the following:

The $0.9 million decrease in prior accident year loss reserves related to Farm, Ranch & Stable primarily consisted of the following:

The $1.0 million reduction of prior accident year loss reserves related to Reinsurance Operations was from the property lines. Based on a review of the experience reported from cedants, decreases were recognized primarily in the 2011, 2017 and 2018 accident years partially offset by increases in the 2010 and 2019 accident years. In total, property catastrophe decreased $2.7 million and property non-catastrophe increased $1.7 million.

During the first six months of 2020, the Company reduced its prior accident year loss reserves by $19.9 million, which consisted of a $14.2 million decrease related to Commercial Specialty, a $4.6 million decrease related to Specialty Property, a $0.8 million decrease related to Farm, Ranch & Stable, and a $0.3 million decrease related to Reinsurance Operations.

The $14.2 million decrease in prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

The ~~$6.6~~$4.6 million decrease in prior accident year loss reserves related to Specialty Property primarily consisted of the following:

The ~~$2.1~~$0.8 million decrease in prior accident year loss reserves related to Farm, Ranch & Stable primarily consisted of the following:

The $5.1 million decrease in prior accident year loss reserves related to Reinsurance Operations were based on a review of the experience reported from cedants. There was a $3.4 million decrease in the property lines primarily in the 2009 through 2010 and 2012 through 2017 accident years, partially offset by an increase in the 2019 accident year. In addition, there was a reduction of $1.7 million in the professional lines in the 2014 and 2015 accident years.

During the first nine months of 2019, the Company reduced its prior accident year loss reserves by $23.0 million, which consisted of a $12.1 million decrease related to Commercial Specialty, $10.5 million decrease related to Specialty Property, $4.0 million decrease related to Farm, Ranch, & Stable, and a $3.5 million increase related to Reinsurance Operations.

~~The $12.1~~$0.3 million reduction of prior accident year loss reserves related to ~~Commercial Specialty primarily consisted~~Reinsurance Operations was from the property lines. Based on a review of the ~~following:~~experience reported from cedants, decreases were in the 2012 through 2017 accident years, partially offset by increases in the 2011, 2018 and 2019 accident years.

The ~~$10.5 million reduction~~Company determines if an arrangement is a lease at inception. Leases with a term of ~~prior accident year loss reserves related to Specialty Property primarily consisted~~12 months or less are not recorded on the consolidated balance sheets. For leases with a term of greater than 12 months, lease right-of-use assets (“ROU”) and lease liabilities are included on the consolidated balance sheets.

Lease ROU assets and lease liabilities are recognized based on the present value of the ~~following:~~future minimum lease payments over the lease term at the commencement date. The Company’s leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate at the commencement date in determining the present value of future payments. The ROU assets are calculated using the initial lease liability amount, plus any lease payments made at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred.

~~The $4.0 million reduction of prior accident year loss reserves related to Farm, Ranch, & Stable primarily consisted of the following:~~

~~The $3.5 million increase in prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:~~

The Company leases office space and equipment under various operating lease arrangements. The Company’s leases have remaining lease terms ranging from 4 months to 9 years. Some building leases have options to extend, terminate, or retract the leased area. In June, 2021, the Company exercised the contraction clause of 1 of its leases. The Company incurred a $0.4 million contraction fee in conjunction with exercising the contraction clause. The related ROU asset and lease liability were revalued at June 30, 2021. The Company did not factor in any other term extension, terminations, or space retractions into the lease terms used to calculate the right-of-use assets and lease liabilities since it was uncertain as to whether these options would be executed.

Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term.

There was 0 sublease income for the quarters and six months ended June 30, 2021 and 2020.

The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheets.

~~The Company’s outstanding debt consisted of the following at September 30, 2020 and December 31, 2019:~~

The Company has available a margin borrowing facility. The borrowing rate for this facility is tied to the Fed Funds Effective rate and was approximately 0.8% and 1.9% at September 30, 2020 and December 31, 2019, respectively. This facility is due on demand. The borrowings are subject to maintenance margin, which is a minimum account balance that must be maintained. A decline in market conditions could require an additional deposit of collateral. As of December 31, 2019, approximately $88.2 million in securities were deposited as collateral to support borrowings. The Company did 0t have any securities that were deposited as collateral at September 30, 2020. The amount borrowed against the margin account may fluctuate as routine investment transactions, such as dividends received, investment income received, maturities and pay-downs, impact cash balances. The margin facility contains customary events of default, including, without limitation, insolvency, failure to make required payments, failure to comply with any representations or warranties, failure to adequately assure future performance, and failure of a guarantor to perform under its guarantee. The amount outstanding on the Company’s margin borrowing facility was $73.6 million as of December 31, 2019. The Company did 0t have any amounts outstanding on the margin borrowing facility as of September 30, 2020.

The Company recorded interest expense related to the Margin Borrowing Facility of approximately $0.1 million and $0.5 million for the quarters ended September 30, 2020 and 2019, respectively, and $0.5 million and $1.4 million for the nine months ended September 30, 2020 and 2019, respectively.

The Company redeemed the entire $100 million in aggregate principal amount of the outstanding 7.75% Subordinated Notes due 2045 (“2045 Notes”) plus accrued and unpaid interest on the 2045 Notes redeemed to, but not including, the Redemption Date of August 15, 2020. In connection with the redemption, the Company wrote off deferred issuance costs of $3.1 million which is recognized as a loss on extinguishment of debt in its consolidated statements of operations for the quarter and nine months ended September 30, 2020.

Interest expense, including amortization of deferred issuance costs through the date of redemption, recognized on the 2045 Notes was $1.0 million and $2.0 million for the quarters ended September 30, 2020 and 2019, respectively, and $4.9 million and $5.9 million for the nine months ended September 30, 2020 and 2019, respectively.

On March 23, 2017, Global Indemnity Limited issued Subordinated Notes due in 2047 in the aggregate principal amount of $120.0 million through an underwritten public offering (the “2047 Notes”). Pursuant to the underwriting agreement, Global Indemnity Limited granted the underwriters a 30 day option to purchase up to an additional $18 million aggregate principal amount of the 2047 Notes solely to cover over-allotments, if any. On March 30, 2017, the underwriters exercised their over-allotment option in the amount of $10 million principal amount of the 2047 Notes. As a result, the aggregate principal amount of the 2047 Notes increased to $130.0 million. The sale of the 2047 Notes pursuant to the over-allotment option closed on March 30, 2017.

The 2047 Notes bear interest at an annual rate equal to 7.875%, payable quarterly in arrears on January 15, April 15, July 15, and October 15 of each year, commencing July 15, 2017. The 2047 Notes mature on April 15, 2047. The Company has the

At June 30, 2021, future minimum lease payments under non-cancelable operating leases were as follows:

~~right to redeem~~(1)Excludes the 2047 Notes in $25 increments, in whole or in part, on and after April 15, 2022, or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the 2047 Notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption. If the Company redeems only a portion of the 2047 Notes on any date of redemption, the Company may subsequently redeem additional 2047 Notes.

The 2047 Notes are subordinated unsecured obligations and rank (i) senior to the Company’s existing and future capital stock, (ii) senior in right of payment to future junior subordinated debt, (iii) equally in right of payment with any existing unsecured, subordinated debt that the Company has issued or may issue in the future that ranks equally with the 2047 Notes, and (iv) subordinate in right of payment to any of the Company’s future senior debt. In addition, the 2047 Notes are structurally subordinated to all existing and future indebtedness, liabilities and other obligations of the Company’s subsidiaries including the Company’s margin borrowing facility.

The 2047 Notes do not require the maintenance of any financial ratios or specified levels of net worth or liquidity, and do not contain provisions that would afford holders of the 2047 Notes protection in the event of a sudden and dramatic decline in the Company’s credit quality resulting from any highly leveraged transaction, reorganization, restructuring, merger or similar transaction involving the Company that may adversely affect holders. The 2047 Notes do not restrict the Company in any way, now or in the future, from incurring additional indebtedness, including senior indebtedness that would rank senior in right of payment to the 2047 Notes. There is no right of acceleration of maturity of the 2047 Notes in the case of default in the payment of principal, premium, if any, or interest on the 2047 Notes or in the performance of any other obligation of the Company under the notes or if the Company defaults on any other debt securities. Holders may accelerate payment of indebtedness on the 2047 Notes only upon the Company’s bankruptcy, insolvency or reorganization.

The Company incurred $4.2 million in deferred issuance costs associated with the 2047 Notes, which is being amortized over the term of the 2047 Notes. Interest expense, including amortization of deferred issuance costs, recognized on the 2047 Notes was $2.6 million for each of the quarters ended September 30, 2020 and 2019 and $7.8 million for each of the ninesix months ended ~~September~~June 30, ~~2020 and 2019.~~

~~The following table represents the amounts recorded for the subordinated notes as of September 30, 2020 and December 31, 2019:~~

On August 28, 2020, in connection with the merger of Global Indemnity Limited with and into New Cayco, each of Global Indemnity Limited, as successor to Global Indemnity plc, an Irish public limited company, GBLI Holdings, LLC, a Delaware limited liability company, as co-obligor (the "Co-Obligor"), New CayCo, Wells Fargo Bank, National Association, as trustee (the "Original Trustee"), and U.S. Bank National Association, as series trustee of the 7.875% Subordinated Notes due 2047 (the "Series Trustee" and, together with the Original Trustee, the "Trustees") entered into a Fourth Supplemental Indenture, dated as of August 28, 2020 (the "Fourth Supplemental Indenture"), to the base indenture, dated as of August 12, 2015 (as supplemented, the "Indenture").

Pursuant to the Fourth Supplemental Indenture, New CayCo expressly assumed the obligations of Global Indemnity Limited under the Indenture, including the obligations of Global Indemnity Limited under the outstanding 2047 Notes issued pursuant to such Indenture.2021

On August 28, 2020, in connection with the merger of New Cayco with and into Global Indemnity Group, LLC, each of New CayCo, the Co-Obligor, Global Indemnity Group, LLC and the Trustees entered into a Fifth Supplemental Indenture, dated as of August 28, 2020 (the "Fifth Supplemental Indenture"), to the Indenture.

Pursuant to the Fifth Supplemental Indenture, Global Indemnity Group, LLC expressly assumed the obligations of New CayCo under the Indenture, including the obligations of New CayCo under the outstanding 2047 Notes issued pursuant to such Indenture.

On April 25, 2018, GBLI Holdings, LLC, an indirect wholly owned subsidiary of the Company, became a subordinated co-obligor with respect to the 2045 Notes, which were fully redeemed in August 2020, and the 2047 Notes with the same obligations and duties as the Company under the Indenture (including the due and punctual performance and observance of all of the covenants and conditions to be performed by the Company, including, without limitation, the obligation to pay the principal of, and interest on, the 2047 Notes when due whether at maturity, by acceleration, redemption or otherwise), and with the same rights, benefits and privileges of the Company thereunder. Notwithstanding the foregoing, GBLI Holdings, LLC's obligations (including the obligation to pay the principal of and interest in respect of the 2047 Notes) are subject to subordination to all monetary obligations or liabilities of GBLI Holdings, LLC owing to any regulated reinsurance or insurance company that is a direct or indirect subsidiary of the Company, in addition to indebtedness of GBLI Holdings, LLC for borrowed money. If the Company pays any amount with respect to the subordinated note obligations, the Company is entitled to be reimbursed by GBLI Holdings, LLC within 10 business days after a demand is made to GBLI Holding, LLC by the Company. In consideration for becoming a subordinated co-obligor on the subordinated notes, GBLI Holdings, LLC received a promissory note from Global Indemnity Limited with a principal amount of $230 million due April 15, 2047 that has since been assigned to an affiliate. This promissory note was settled in August 2020.

~~On August 28, 2020, Global Indemnity Limited completed~~There were 7,100 A ordinary shares that were surrendered or repurchased during the ~~previously disclosed scheme~~quarter ended June 30, 2021 with an average price paid per share of arrangement and amalgamation that effected certain transactions (the "Redomestication") that resulted in the shareholders of Global Indemnity Limited becoming the holders of all of the issued and outstanding$27.64. There were 0 class A common shares ofthat were surrendered or repurchased during the ~~Company. Please see Note 2 for details on the redomestication.~~

The treasury shares of Global Indemnity Limited were not subject to the scheme of arrangement. The carrying value of the Global Indemnity Limited treasury shares, $4.1 million, were offset against the Additional Paid-in Capital account of Global Indemnity Limited, according to the Company’s policy regarding the treatment of treasury shares. Please see Note 2 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2019 Annual Report on Form 10-K for more information on the Company’s policy regarding the treatment of treasury shares.

On August 27, 2020, the Company issued and sold to Wyncote LLC (“Wyncote”), an affiliate of Fox Paine & Company, LLC, 4,000 Series A Preferred Interests at a price of $1,000 per Series A Preferred Interest, for the aggregate purchase price of $4,000,000. The issuance of Series A Preferred Interests to Wyncote was made pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act. The Series A Preferred Interests are not convertible into or exchangeable for any other securities or property of the Company. The shares are redeemable at the discretion of the Company after five years or at the discretion of the holders upon the occurrence of a change in control of the Company. While the preferred shares are non-voting, the preferred shareholders are entitled to appoint 2 additional members to the Company’s Board of Directors whenever the “Unpaid Targeted Priority Return” (as defined in the applicable Share Designation) with respect to the preferred shares exceed zero immediately following six or more “Distribution Dates” (as defined in the applicable Share Designation), whether or not such Distribution Dates occur consecutively.

Following the Effective Time, all of the issued and outstanding Series A Preferred Interests sold to Wyncote remain outstanding as "Series A Cumulative Fixed Rate Preferred Shares", unaffected by the Scheme of Arrangement and subject to the terms of the Second Amended and Restated Limited Liability Company Agreement of the Company (the “LLC Agreement”) and that certain Share Designation, effective as of the Effective Time, that sets forth the designation, rights, preferences, powers, duties, restrictions, limitations and obligations of the Series A Cumulative Fixed Rate Preferred Shares from and after the Effective Time.quarters ended June 30, 2020.

The following table provides information with respect to the class A common shares that were surrendered or repurchased during the ~~quarter~~six months ended ~~September~~June 30, ~~2020:~~2021:

~~(2)~~ ~~Surrendered by employees as payment of taxes withheld on the vesting of restricted stock.~~

~~There were 0 class A commons shares that were surrendered or repurchased during the quarter ended September 30, 2019.~~

~~The following table provides information with respect to the class A common shares that were surrendered or repurchased during the nine months ended September 30, 2020:~~

~~(2)~~ ~~Surrendered by employees as payment of taxes withheld on the vesting of restricted stock.~~

~~The following table provides information with respect to the class A common shares that were surrendered or repurchased during the nine months ended September 30, 2019:~~

Period (1)	Total Number of Shares Purchased			Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	Total Number of Shares Purchased			Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
January 1-31, 2019		7,945	(2)	$	36.23	0	0
February 1-28, 2019		19,083	(2)	$	34.59	0	0
January 1-31, 2021									6,720	(2)	$	28.59		0		0
March 1-31, 2021									3,095	(2)	$	29.40		0		0
June 1-30, 2021									7,100	(2)	$	27.64		0		0
Total		27,028		$	35.07	0			16,915		$	28.34		0		0

The following table provides information with respect to the class A common shares that were surrendered or repurchased during the six months ended June 30, 2020:

On April 5, 2021, Global Indemnity Group, LLC converted 186,160 of class B common shares to class A common shares. There were 0 other class B common shares that were surrendered or repurchased during the quarters and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 or ~~2019.~~2020.

As of ~~September~~June 30, ~~2020, the Company’s~~2021, Global Indemnity Group, LLC’s class A common shares were held by approximately ~~190~~180 shareholders of record. There were 4 holders of record of ~~the Company’s~~Global Indemnity Group, LLC’s class B common shares, all of whom are affiliated investment funds of Fox Paine & Company, LLC, as of ~~September~~June 30, ~~2020. The Company’s~~2021. Global Indemnity Group, LLC’s preferred shares were held by 1 holder of record, an affiliate of Fox Paine & Company, LLC, as of ~~September~~June 30, ~~2020.~~2021.

Please see Note 1214 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s ~~2019~~2020 Annual Report on Form 10-K for more information on the Company’s repurchase program.

~~Dividend & distribution~~Distribution payments of $0.25 per common share were declared during the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 as follows:

Dividend payments of $0.25 per common share were declared during the ~~nine~~six months ended ~~September~~June 30, ~~2019~~2020 as follows:

Approval Date

Record Date

Payment Date

Total Dividends Declared

(Dollars in thousands)

Record Date

Payment Date

Total Dividends Declared

(Dollars in thousands)

February 10, 2019

March 22, 2019

March 29, 2019

3,521

June 2, 2019

June 21, 2019

June 28, 2019

3,525

September 15, 2019

September 26, 2019

October 2, 2019

3,528

February 9, 2020

March 24, 2020

March 31, 2020

3,539

June 7, 2020

June 23, 2020

June 30, 2020

3,545

Various (1)

Various

191

Various

215

Total

10,765

7,299

As of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, accrued distributions on unvested shares, which were included in other liabilities on the consolidated balance sheets, were ~~$0.6~~$0.9 million and ~~$0.3~~$0.7 million, respectively. Accrued preferred distributions were less than $0.1 million as of ~~September~~both June 30, 2021 and December 31, 2020 and were included in other liabilities on the consolidated balance sheets.

~~As of September 30, 2020,~~Pursuant to Global Indemnity Group, LLC’s Limited Liability Company Agreement (“LLCA”), Fox Paine Capital Fund II International, L.P. and certain of its affiliates ~~(collectively, the~~(the “Fox Paine Funds”), ~~which are managed by Fox Paine & Company, LLC, beneficially own approximately 77.5% of the Company’s total voting power. As of September 30, 2020,~~together with Fox Mercury Investments, L.P. and certain of its affiliates (the “FM Entities”), and Fox Paine & Company LLC (collectively, the ~~“FM~~“Fox Paine Entities”) ~~separately beneficially own approximately 4.8% of~~currently constitute a Class B Majority Shareholder (as defined in the ~~Company’s total voting power. The Fox Paine Funds~~LLCA) and, as such, have the right to appoint a number of ~~the Company’s Directors~~Global Indemnity Group, LLC’s directors equal in aggregate to the pro rata percentage of the voting power in ~~the Company~~Global Indemnity Group, LLC beneficially held by the Fox Paine ~~Funds, FM~~ Entities, ~~and Fox Paine & Company, LLC (collectively, “Fox Paine Entities”) so long as~~rounded up to the nearest whole number of directors. The Fox Paine Entities beneficially own ~~a majority~~shares representing approximately 82.9% of the ~~outstanding class B common shares of the Company and shares representing an aggregate 25% or more of the total~~ voting power ~~in the Company.~~of Global Indemnity Group, LLC as of June 30, 2021. The Fox Paine ~~Funds~~Entities control the appointment or election of all of ~~the Company’s~~Global Indemnity Group, LLC’s Directors due to the LLCA and their controlling share ownership. ~~The Company’s~~Global Indemnity Group, LLC’s Chairman is the chief executive and founder of Fox Paine & Company, LLC.

On August 27, 2020, ~~the Company~~Global Indemnity Group, LLC issued and sold to Wyncote LLC, an affiliate of Fox Paine & Company, LLC, 4,000 Series A Cumulative Fixed Rate Preferred Interests at a price of $1,000 per Series A Preferred Interest, for the aggregate purchase price of $4,000,000. While ~~the~~these preferred ~~shares~~interests are non-voting, the preferred shareholders are entitled to appoint two additional members to ~~the Company’s~~Global Indemnity Group, LLC’s Board of Directors whenever the “Unpaid Targeted Priority Return” with respect to the preferred ~~shares~~interests exceed zero immediately following six or more “Distribution Dates”, whether or not such Distribution Dates occur consecutively. ~~See Note 10 for additional information on the Series A Cumulative Fixed Rate Preferred Interests.~~

The Company relies on Fox Paine & Company, LLC to provide management services and other services related to the operations of the Company. Starting in 2014, the management fee is adjusted annually to reflect the percentage change in the CPI-U. On May 6, 2020, Global Indemnity ~~Limited~~Group, LLC’s Board of Directors is obligated to take, and ~~Fox Paine & Company, LLC entered into~~cause Global Indemnity Group, LLC’s officers to take, any necessary actions to effectuate such appointments, including expanding the Second Amended and Restated Management Agreement, effective as of September 5, 2019 (the “Management Agreement”), to: (i) eliminate the Company’s obligation to reimburse Fox Paine & Company, LLC for its travel, lodging, meals, and other items relating to attendance at regularly scheduled meetingssize of the Board of Directors, ~~which have averaged approximately $550,000 per year (since execution of the Management Agreement in 2013), and (ii) increase Fox Paine & Company, LLC’s base Annual Service Fee by $550,000 per year.~~ ~~On August 28, 2020,~~ in connection with the Redomestication, the Company and Fox Paine & Company, LLC entered into the Third Amended and Restated Management Agreement effective as of August 28, 2020 (the “Management Agreement”). The Management Agreement amends and restates the Second Amended and Restated Management Agreement, dated as of May 6, 2020, between Fox Paine & Company, LLC and Global Indemnity Limited, to reflect the assumption by Global Indemnity Group, LLCany exercise of the ~~obligations under the Management Agreement and to make related conforming changes and immaterial modifications to the Management Agreement.~~foregoing provisions.

Management fee expense of ~~$0.6~~$0.7 million and ~~$0.5~~$0.8 million was incurred during the quarters ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and management fee expense of ~~$2.0~~$1.3 million and ~~$1.5~~$1.4 million was incurred during the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. Prepaid management fees, which were included in other assets on the consolidated balance sheets, were ~~$2.5~~$0.5 million and ~~$1.4~~$1.8 million as of ~~September~~June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively.

In addition, Fox Paine & Company, LLC may also propose and negotiate transaction fees with the Company subject to the provisions of the Company’s related party transaction and conflict matter policies, including approval of ~~the Company’s~~Global Indemnity Group, LLC’s Conflicts Committee of the Board of Directors or Global Indemnity Limited’s Audit Committee of the Board of Directors, for those services from time to time. Each of the Company’s transactions with Fox Paine & Company, LLC ~~described below was~~are reviewed and approved by ~~the Company’s~~either Global Indemnity Group, LLC’s Conflicts Committee or Audit Committee, which is composed of independent directors, and the Board of Directors (other than Saul A. Fox, Chairman of the Board of Directors of ~~the Company~~Global Indemnity Group, LLC and Chief Executive of Fox Paine & Company, LLC, who is not a member of the Conflicts Committee and was not a member of Global Indemnity Limited’s Audit Committee and recused himself from the Board of Directors’ ~~deliberations).~~

~~On December 21, 2018, GBLI Holdings, LLC exited an investment in a private credit fund pursuant~~deliberations related to a sale of GBLI Holdings, LLC’s investment to third parties at par plus accrued interest. Fox Paine & Company, LLC provided services to GBLI Holdings, LLC in connection with the sale, including conducting due diligence to evaluate the private fund, recommending that GBLI Holdings, LLC withdraw from the private fund, and conducting extended negotiations with the private fund to secure GBLI Holdings, LLC’s withdrawal from the private fund on favorable terms. Fox Paine & Company, LLC’s services for GBLI Holdings, LLC in connection with the sale were performed during the second, third, and fourth quarters of 2018. The total fee for these services was $2.0 million which was accrued in the 4^th ~~quarter of 2018, which is the period in which the transaction was completed, and was~~fees paid ~~in May 2019.~~

Pursuant to the Management Agreement, Fox Paine & Company, LLC performed extensive financial advisory services for the Company in connection with the conceptualization, design, structuring and implementation of the redomestication plan. In accordance with the Management Agreement, Fox Paine & Company, LLC may propose and negotiate advisory fees for such services with the Company, subject to the provisions of the Company’s related party transaction policies. The Company agreed to pay an advisory fee to Fox Paine & Company, LLC ~~for such services in an amount of $10.0 million, which was accrued at September 30, 2020, and will be paid in a subsequent period. The $10.0 million fee was approved by the Conflicts Committee.~~

The Company is, from time to time, involved in various legal proceedings in the ordinary course of business. The Company maintains insurance and reinsurance coverage for such risks in amounts that it considers adequate. However, there can be no assurance that the insurance and reinsurance coverage that the Company maintains is sufficient or will be available in adequate amounts or at a reasonable cost. The Company does not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material adverse effect on its business, results of operations, cash flows, or financial condition.

There is a greater potential for disputes with reinsurers who are in runoff. Some of the Company’s reinsurers’ have operations that are in runoff, and therefore, the Company closely monitors those relationships. The Company anticipates that, similar to the rest of the insurance and reinsurance industry, it will continue to be subject to litigation and arbitration proceedings in the ordinary course of business.

In 2014, the Company entered into a $50 million commitment to purchase an alternative investment vehicle which is comprised of European non-performing loans. As of ~~September~~June 30, ~~2020,~~2021, the Company has funded $35.8 million of this commitment leaving $14.2 million as unfunded. Since the investment period has concluded, the Company expects minimal capital calls will be made prospectively.

In 2017, the Company entered into a $50 million commitment to purchase an alternative investment vehicle comprised of stressed and distressed securities and structured products. As of ~~September~~June 30, ~~2020,~~2021, the Company has funded $33.0 million of this commitment leaving $17.0 million as unfunded. Since the investment period has concluded, the Company expects minimal capital calls will be made prospectively.

In ~~2019,~~2021, the Company entered into a ~~$10~~$25 million commitment to purchase an alternative investment vehicle ~~which is~~ comprised of ~~mortgage~~performing, stressed or distressed securities and loans ~~and other real-estate related investments.~~across the global fixed income markets. As of ~~September~~June 30, ~~2020,~~2021, the Company has fully funded this commitment.

The Company is party to a Management Agreement, as amended, with Fox Paine & Company, LLC, whereby in connection with certain management services provided to it by Fox Paine & Company, LLC, the Company agreed to pay an annual

management fee to Fox Paine & Company, LLC. See Note 1110 above for additional information pertaining to this management agreement.

There is 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.

In connection with the Redomestication, the 2018 Share Incentive Plan was amended and restated to reflect Global Indemnity Group, LLC’s assumption of the sponsorship of the plan and other changes deemed necessary and appropriate to reflect the completion of the Redomestication.

During the first quarter of 2021, the Company granted 140,000 Performance-Based Options under the Plan. The Performance-Based Options vest in 33% increments over a three-year period subject to the achievement of certain underwriting results and expire ten years after the grant date or the occurrence of certain events specified in the agreement, whichever is earlier. NaN stock options were awarded during the ~~quarters~~quarter ended June 30, 2021 or the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020 and 2019.~~2020. NaN unvested options were forfeited during the quarter ended June 30, 2021. 300,000 unvested options were forfeited during the six months ended June 30, 2021. NaN unvested stock options were forfeited during the ~~quarters~~quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020 or 2019.~~2020.

There were 0 restricted class A common shares granted to key employees during the quarters and six months ended ~~September~~June 30, 2021 and 2020 and ~~2019 or the nine months ended September 30, 2020.~~

During the nine months ended September 30, 2019, the Company granted 36,180 restricted class A common shares, with a weighted average grant date value of $35.82 per share, to key employees under the Plan. 9,063 of these shares vested immediately. 27,117 of these shares will vest as follows:

~~There~~there were 0 restricted stock units granted to key employees during the ~~quarter~~quarters ended ~~September~~June 30, 2021 and 2020 ~~and 2019.~~or the six months ended June 30, 2021.

During the ~~nine~~six months ended ~~September~~June 30, 2020, the Company granted 161,238 restricted stock units, with a weighted average grant date value of $30.32 per share, to key employees under the Plan. 3,375 of these restricted stock units will vest evenly over the next three years on January 1, 2021, January 1, 2022 and January 1, 2023.

39During the quarter and six months ended June 30, 2021, there were 22,540 and 42,977 restricted stock units, respectively, that became fully vested. Upon vesting, the restricted stock units converted to restricted class A common shares. During the quarter and six months ended June 30, 2020, there were 0 restricted stock units that vested.

During the ~~nine months~~quarters ended ~~September~~June 30, ~~2019,~~2021 and 2020, the Company granted ~~175,498 restricted stock units, with a weighted average grant date value of $30.18 per unit, to key employees under the Plan. These restricted stock units will vest as follows:~~

~~During the quarters ended September 30, 2020~~19,738 and ~~2019, the Company granted 29,893 and 19,275~~28,482 class A common shares, respectively, at a weighted average grant date value of ~~$22.58~~$28.71 and ~~$24.97~~$23.70 per share, respectively, to non-employee directors of the Company under the Plan. Of the shares granted during the quarters ended June 30, 2021 and 2020, the vesting of 4,838 shares and 7,912 shares, respectively, is deferred until January 1, 2024 or a change of control, whichever is earlier. The remaining shares granted to non-employee directors of the Company in 2021 and 2020 were fully vested but are subject to certain restrictions.

During the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, the Company granted ~~81,502~~39,744 and ~~50,661~~51,609 class A common shares, respectively, at a weighted average grant date value of ~~$24.85~~$28.51 and ~~$28.50~~$26.16 per share, respectively, to non-employee directors of the Company under the Plan. ~~All~~Of the shares granted during the six months ended June 30, 2021 and 2020, the vesting of ~~these~~9,741 shares and 14,334 shares, respectively, is deferred until January 1, 2024 or a change of control, whichever is earlier. The remaining shares granted to non-employee directors of the Company in ~~2020~~2021 and ~~2019~~2020 were fully vested but are subject to certain restrictions.

During the second quarter of 2021, the Company granted 2,500,000 Penn-Patriot BVARs with an aggregate initial notional value equal to approximately 5% of Penn-Patriot’s book value, which entitles the holder to a payment based on the value of the per-BVAR appreciation in Penn-Patriot’s book value over the initial notional value. The BVARs will vest by December 31, 2026, subject to the achievement of certain performance goals and ~~nine months ended September 30, 2020,~~continued employment as of the vesting date, with half of the applicable appreciation value of the BVARs payable on April 1, 2027 and an additional amount payable on April 1, 2030 following a true-up of underwriting results for the applicable performance period. The BVARs will vest in full in the event of a “change in control” of Penn-Patriot and a specified portion may vest in the event the holder is terminated by Penn-Patriot without cause.

During the second quarter of 2021, the Company also granted ~~41,667 restricted stock units~~400,000 Penn-Patriot BVARS with an aggregate initial notional value equal to approximately 0.8% of Penn-Patriot’s book value, which entitles the holder to a ~~non-employee director that~~payment based on the value of the per-BVAR appreciation in Penn-Patriot’s book value over the initial notional value. The BVARs will vest ~~ratably over~~by December 31, 2026, subject to the achievement of certain performance goals and continued employment as of the vesting date, with half of the applicable appreciation value of the BVARs payable on April 1, 2027 and an additional amount payable on April 1, 2030 following a true-up of underwriting results for the applicable performance period. The BVARs will vest in full in the event of a “Change in Control” of Penn-Patriot and a specified portion may vest in the event the holder is terminated by Penn-Patriot without cause.

There were 0 BVARs granted during the quarter and six months ended June 30, 2020.

10,000 shares of Penn-Patriot Virtual Stock with an initial notional value of $100,000 was granted during the second quarter of 2021. These shares have a three ~~years on January 1, 2022, January 1, 2023,~~year cliff vesting period and ~~January 1, 2024.~~are payable in either cash or Global Indemnity Group, LLC’s class A common shares at the discretion of Global Indemnity Group, LLC’s Board of Directors. There were 0 virtual shares issued during the quarter and six months ended June 30, 2020.

Earnings per share have been computed using the weighted average number of common shares and common share equivalents outstanding during the period.

The following table sets forth the computation of basic and diluted earnings per share:

	Quarters Ended September 30,					Nine Months Ended September 30,					Quarters Ended June 30,				Six Months Ended June 30,
(Dollars in thousands, except share and per share data)	2020			2019		2020			2019		2021		2020		2021		2020
Numerator:
Net income (loss)	$	(15,170	)	$	6,721	$	(22,197	)	$	40,984	$	6,375	$	37,551	$	11,892	$	(7,027	)
Less: preferred stock distributions		42			—		42			—		110		0		220		0
Net income (loss) available to common shareholders	$	(15,212	)	$	6,721	$	(22,239	)	$	40,984	$	6,265	$	37,551	$	11,672	$	(7,027	)

Denominator:
Weighted average shares for basic earnings per share		14,304,426			14,202,859		14,276,594			14,181,530		14,412,446		14,275,500		14,396,523		14,262,525
Non-vested restricted stock		—			23,059		—			19,201		12,310		14,112		11,254		0
Non-vested restricted stock units		—			0		—			2,954		140,785		24,293		129,035		0
Options		—			101,839		—			125,176		116,190		75,495		114,312		0
Weighted average shares for diluted earnings per share (1)		14,304,426			14,327,757		14,276,594			14,328,861		14,681,731		14,389,400		14,651,124		14,262,525

Earnings per share - Basic	$	(1.06	)	$	0.47	$	(1.56	)	$	2.89	$	0.43	$	2.63	$	0.81	$	(0.49	)
Earnings per share - Diluted	$	(1.06	)	$	0.47	$	(1.56	)	$	2.86	$	0.43	$	2.61	$	0.80	$	(0.49	)

If the Company had not incurred a loss in the ~~quarter~~six months ended ~~September~~June 30, 2020, ~~14,444,326~~14,408,907 weighted average shares would have been used to compute the diluted loss per share calculation. In addition to the basic shares, weighted average shares for the diluted calculation for the six months ended June 30, 2020 would have included ~~18,218~~15,195 shares of non-vested restricted stock, ~~48,846~~29,691 shares of non-vested restricted stock units, and ~~72,836~~101,496 share equivalents for options.

If the Company had not incurred a loss in the nine months ended September 30, 2020, 14,421,393 weighted average shares would have been used to compute the diluted loss per share calculation. In addition to the basic shares, weighted average shares for the diluted calculation would have included 15,366 shares of non-vested restricted stock, 36,796 shares of non-vested restricted stock units, and 92,637 share equivalents for options.

The weighted average shares outstanding used to determine dilutive earnings per share does not include ~~572,957~~540,000 shares and 570,332 shares for the ~~quarter~~quarters ended June 30, 2021 and ~~nine months ended September 30,~~ 2020, respectively, and ~~500,000~~540,000 shares and 566,957 shares for the ~~quarter and nine~~six months ended ~~September~~June 30, ~~2019~~2021 and 2020, respectively, which were deemed to be anti-dilutive.

The ~~Company manages its business~~insurance companies are managed through 4 business segments. Commercial Specialty offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs. Specialty Property offers specialty personal lines property and casualty insurance products. Farm, Ranch & Stable offers specialized property and casualty coverage including Commercial Farm Auto and Excess/Umbrella Coverage for the agriculture industry as well as specialized insurance products for the equine mortality and equine major medical industry. Reinsurance Operations provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies.

The following are tabulations of business segment information for the quarters and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019:~~2020:

Quarter Ended September 30, 2020 (Dollars in thousands)	Commercial Specialty		(1)	Specialty Property			(1)	Farm, Ranch, & Stable			(1)	Reinsurance Operations		(2)	Total
Quarter Ended June 30, 2021 (Dollars in thousands)																		Commercial Specialty			Specialty Property		Farm, Ranch & Stable			Reinsurance Operations		(1)	Total
Revenues:
Gross written premiums	$	74,971		$	34,730			$	19,443			$	14,605		$	143,749		$	96,680		$	33,013	$	20,851		$	24,692		$	175,236
Net written premiums	$	69,074		$	29,971			$	16,961			$	14,605		$	130,611		$	88,332		$	29,749	$	17,880		$	24,692		$	160,653
Net earned premiums	$	73,887		$	31,388			$	19,978			$	15,049		$	140,302		$	80,146		$	29,892	$	17,960		$	21,410		$	149,408
Other income		0			450				35				112			597			0			458		40			14			512
Total revenues		73,887			31,838				20,013				15,161			140,899			80,146			30,350		18,000			21,424			149,920
Losses and Expenses:
Net losses and loss adjustment expenses		42,879			34,430				14,649				5,190			97,148			51,818			15,302		11,161			12,657			90,938
Acquisition costs and other underwriting expenses		26,943			13,364				7,443				5,518			53,268			29,633			12,579		7,187			7,814			57,213
Income (loss) from segments	$	4,065		$	(15,956	)		$	(2,079	)		$	4,453		$	(9,517	)	$	(1,305	)	$	2,469	$	(348	)	$	953		$	1,769
Unallocated Items:
Net investment income																11,746														10,633
Net realized investment gains																7,323														3,833
Other loss																(55	)
Other income																														9
Corporate and other operating expenses																(21,196	)													(6,329	)
Interest expense																(3,620	)													(2,696	)
Loss on extinguishment of debt																(3,060	)
Loss before income taxes																(18,379	)
Income tax benefit																3,209
Net loss																(15,170	)
Income before income taxes																														7,219
Income tax expense																														(844	)
Net income																													$	6,375

Segment assets	$	752,002		$	207,831			$	137,697			$	269,771		$	1,367,301		$	881,795		$	210,362	$	141,009		$	292,078		$	1,525,244
Corporate assets																572,456													$	412,073
Total assets															$	1,939,757													$	1,937,317

Quarter Ended September 30, 2019 (Dollars in thousands)	Commercial Specialty		(1)	Specialty Property			(1)	Farm, Ranch, & Stable			(1)	Reinsurance Operations			(2)	Total
Quarter Ended June 30, 2020 (Dollars in thousands)																			Commercial Specialty		Specialty Property		Farm, Ranch & Stable			Reinsurance Operations		(1)	Total
Revenues:
Gross written premiums	$	73,175		$	42,611			$	21,410			$	19,981			$	157,177		$	87,297	$	37,978	$	23,222		$	16,052		$	164,549
Net written premiums	$	62,925		$	37,628			$	18,294			$	19,989			$	138,836		$	77,880	$	33,075	$	20,257		$	16,052		$	147,264
Net earned premiums	$	60,869		$	34,554			$	18,377			$	19,512			$	133,312		$	69,728	$	33,543	$	19,030		$	19,546		$	141,847
Other income (loss)		0			465				34				(235	)			264
Other income																				0		429		36			279			744
Total revenues		60,869			35,019				18,411				19,277				133,576			69,728		33,972		19,066			19,825			142,591
Losses and Expenses:
Net losses and loss adjustment expenses		27,389			25,997				10,939				9,258				73,583			28,877		13,691		13,439			11,290			67,297
Acquisition costs and other underwriting expenses		24,820			14,571				7,776				6,199				53,366			26,516		13,761		7,606			5,695			53,578
Income (loss) from segments	$	8,660		$	(5,549	)		$	(304	)		$	3,820			$	6,627		$	14,335	$	6,520	$	(1,979	)	$	2,840		$	21,716
Unallocated Items:
Net investment income																	11,348
Net realized investment loss																	(2,690	)
Net investment loss																														(2,359	)
Net realized investment gains																														38,507
Other income																														22
Corporate and other operating expenses																	(3,858	)												(8,618	)
Interest expense																	(5,023	)												(4,712	)
Income before income taxes																	6,404													44,556
Income tax benefit																	317
Income tax expense																														(7,005	)
Net income																	6,721												$	37,551

Segment assets	$	705,260		$	246,080			$	136,420			$	346,137			$	1,433,897		$	753,310	$	203,561	$	140,658		$	277,242		$	1,374,771
Corporate assets																	650,259													738,377
Total assets																$	2,084,156												$	2,113,148

Six Months Ended June 30, 2021 (Dollars in thousands)	Commercial Specialty			Specialty Property		Farm, Ranch & Stable			Reinsurance Operations			(1)	Total
Revenues:
Gross written premiums	$	184,012		$	66,371	$	41,853		$	46,558			$	338,794
Net written premiums	$	166,847		$	59,448	$	35,483		$	46,558			$	308,336
Net earned premiums	$	156,296		$	60,483	$	36,101		$	40,228			$	293,108
Other income (loss)		0			888		74			(42	)			920
Total revenues		156,296			61,371		36,175			40,186				294,028
Losses and Expenses:
Net losses and loss adjustment expenses		105,053			29,780		22,962			23,926				181,721
Acquisition costs and other underwriting expenses		57,810			25,618		14,173			14,376				111,977
Income (loss) from segments	$	(6,567	)	$	5,973	$	(960	)	$	1,884			$	330
Unallocated Items:
Net investment income														20,469
Net realized investment gains														7,652
Other loss														(22	)
Corporate and other operating expenses														(10,605	)
Interest expense														(5,291	)
Income before income taxes														12,533
Income tax expense														(641	)
Net income													$	11,892

Segment assets	$	881,795		$	210,362	$	141,009		$	292,078			$	1,525,244
Corporate assets														412,073
Total assets													$	1,937,317

Nine Months Ended September 30, 2020 (Dollars in thousands)	Commercial Specialty		(1)	Specialty Property			(1)	Farm, Ranch, & Stable			(1)	Reinsurance Operations		(2)	Total
Six Months Ended June 30, 2020 (Dollars in thousands)																		Commercial Specialty		Specialty Property		Farm, Ranch & Stable			Reinsurance Operations			(1)	Total
Revenues:
Gross written premiums	$	243,099		$	107,951			$	64,798			$	48,174		$	464,022		$	168,128	$	73,221	$	45,355		$	33,569			$	320,273
Net written premiums	$	219,437		$	93,053			$	56,323			$	48,174		$	416,987		$	150,363	$	63,082	$	39,362		$	33,569			$	286,376
Net earned premiums	$	211,329		$	99,147			$	57,691			$	58,450		$	426,617		$	137,442	$	67,759	$	37,713		$	43,401			$	286,315
Other income		0			1,306				107				96			1,509
Other income (loss)																			0		856		72			(16	)			912
Total revenues		211,329			100,453				57,798				58,546			428,126			137,442		68,615		37,785			43,385				287,227
Losses and Expenses:
Net losses and loss adjustment expenses		109,191			65,619				37,698				29,584			242,092			66,312		31,189		23,049			24,394				144,944
Acquisition costs and other underwriting expenses		79,452			41,357				22,687				19,762			163,258			52,509		27,993		15,244			14,244				109,990
Income (loss) from segments	$	22,686		$	(6,523	)		$	(2,587	)		$	9,200		$	22,776		$	18,621	$	9,433	$	(508	)	$	4,747			$	32,293
Unallocated Items:
Net investment income																19,516														7,770
Net realized investment loss																(22,332	)													(29,655	)
Other loss																(36	)
Other income																														19
Corporate and other operating expenses																(34,037	)													(12,841	)
Interest expense																(13,197	)													(9,577	)
Loss on extinguishment of debt																(3,060	)
Loss before income taxes																(30,370	)													(11,991	)
Income tax benefit																8,173														4,964
Net loss																(22,197	)												$	(7,027	)

Segment assets	$	752,002		$	207,831			$	137,697			$	269,771		$	1,367,301		$	753,310	$	203,561	$	140,658		$	277,242			$	1,374,771
Corporate assets																572,456														738,377
Total assets															$	1,939,757													$	2,113,148

Nine Months Ended September 30, 2019
(Dollars in thousands)

Commercial
Specialty

(1)
Specialty Property

(1)
Farm, Ranch, & Stable

(1)
Reinsurance
Operations

(2)
Total

Revenues:

Gross written premiums

$
214,467

$
128,771

$
65,872

$
69,589

$
478,699

Net written premiums

$
185,202

$
110,668

$
55,861

$
69,590

$
421,321

Net earned premiums

$
173,215

$
104,740

$
52,849

$
52,798

$
383,602

Other income (loss)

0

1,406

96

(228
)

1,274

Total revenues

173,215

106,146

52,945

52,570

384,876

Losses and Expenses:

Net losses and loss adjustment expenses

81,731

57,611

32,203

30,434

201,979

Acquisition costs and other underwriting expenses

70,522

44,163

22,403

16,555

153,643

Income (loss) from segments

$
20,962

$
4,372

$
(1,661
)

$
5,581

$
29,254

Unallocated Items:

Net investment income

32,393

Net realized investment gain

11,290

Corporate and other operating expenses

(11,702
)
Interest expense

(15,088
)
Income before income taxes

46,147

Income tax expense

(5,163
)
Net income

40,984

Segment assets

$
705,260

$
246,080

$
136,420

$
346,137

$
1,433,897

Corporate assets

650,259

Total assets

$
2,084,156

16.~~Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries~~

The following tables present condensed consolidating balance sheets at September 30, 2020 and December 31, 2019, condensed consolidating statements of operations and condensed consolidating statements of comprehensive income for the quarters and nine months ended September 30, 2020 and 2019 and condensed consolidating statements of cash flows for the nine months ended September 30, 2020 and 2019. GBLI Holdings, LLC is a 100% owned subsidiary of the Company. See Note 9 for information on the Company’s debt obligations.

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

$
0

$
1,417,465

Cash and cash equivalents

13,765

2,575

20,871

0

37,211

Investments in subsidiaries

491,851

387,913

339,384

(1,219,148
)

0

Due from subsidiaries and affiliates

(3,999
)

(7,522
)

11,521

0

0

Notes receivable – affiliate

11,283

0

0

(11,283
)

0

Interest receivable – affiliate

16

0

0

(16
)

0

Premiums receivable, net

0

0

109,820

0

109,820

Reinsurance receivables, net

0

0

112,633

0

112,633

Funds held by ceding insurers

0

0

46,894

0

46,894

Federal income taxes receivable

0

2,892

(2,892
)

0

0

Deferred federal income taxes

0

38,805

(3,505
)

0

35,300

Deferred acquisition costs

0

0

67,470

0

67,470

Intangible assets

0

0

21,094

0

21,094

Goodwill

0

0

6,521

0

6,521

Prepaid reinsurance premiums

0

0

15,558

0

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

$
0

$
0

$
669,930

$
0

$
669,930

Unearned premiums

0

0

304,074

0

304,074

Ceded balances payable

0

0

9,576

0

9,576

Payable for Securities

2,207

0

3,423

0

5,630

Contingent commissions

0

0

11,329

0

11,329

Debt

0

130,000

0

(3,747
)

126,253

Notes payable – affiliates

0

0

11,283

(11,283
)

0

Accrued interest payable – affiliates

0

0

16

(16
)

0

Other liabilities

15,286

23,663

53,303

0

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

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

$
0

$
1,563,542

Cash and cash equivalents

977

2,663

40,631

0

44,271

Investments in subsidiaries

1,218,491

355,777

434,278

(2,008,546
)

0

Due from subsidiaries and affiliates

(3,612
)

(3,965
)

7,577

0

0

Notes receivable – affiliate

0

80,049

445,498

(525,547
)

0

Interest receivable – affiliate

0

5,014

17,258

(22,272
)

0

Premiums receivable, net

0

0

118,035

0

118,035

Reinsurance receivables, net

0

0

83,938

0

83,938

Funds held by ceding insurers

0

0

48,580

0

48,580

Federal income taxes receivable

0

14,197

(3,208
)

0

10,989

Deferred federal income taxes

0

31,833

(756
)

0

31,077

Deferred acquisition costs

0

0

70,677

0

70,677

Intangible assets

0

0

21,491

0

21,491

Goodwill

0

0

6,521

0

6,521

Prepaid reinsurance premiums

0

0

16,716

0

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

$
0

$
0

$
630,181

$
0

$
630,181

Unearned premiums

0

0

314,861

0

314,861

Ceded balances payable

0

0

20,404

0

20,404

Payable for securities purchased

0

0

850

0

850

Contingent commissions

0

0

11,928

0

11,928

Debt

0

303,629

0

(6,989
)

296,640

Notes payable – affiliates

520,498

0

5,049

(525,547
)

0

Accrued interest payable – affiliates

20,343

0

1,929

(22,272
)

0

Other liabilities

2,068

17,600

54,544

0

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

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

$
0

$
0

$
140,302

$
0

$
140,302

Net investment income

1,300

4,642

5,976

(172
)

11,746

Net realized investment gains

451

4,107

2,765

0

7,323

Other income (loss)

(1
)

0

543

0

542

Total revenues

1,750

8,749

149,586

(172
)

159,913

Losses and Expenses:

Net losses and loss adjustment expenses

0

0

97,148

0

97,148

Acquisition costs and other underwriting expenses

0

0

53,268

0

53,268

Corporate and other operating expenses

17,324

3,662

210

0

21,196

Interest expense

179

3,569

44

(172
)

3,620

Loss on extinguishment of debt

3,060

0

0

0

3,060

Income (loss) before equity in net income (loss) of subsidiaries and income taxes

(18,813
)

1,518

(1,084
)

0

(18,379
)
Equity in net income (loss) of subsidiaries

3,643

(10,312
)

(5,784
)

12,453

0

Loss before income taxes

(15,170
)

(8,794
)

(6,868
)

12,453

(18,379
)
Income tax benefit

0

(3,010
)

(199
)

0

(3,209
)
Net loss

$
(15,170
)

$
(5,784
)

$
(6,669
)

$
12,453

$
(15,170
)

~~(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 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

$
0

$
0

$
426,617

$
0

$
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

0

(22,332
)
Other income (loss)

(1
)

19

1,455

0

1,473

Total revenues

(398
)

(40,451
)

466,838

(715
)

425,274

Losses and Expenses:

Net losses and loss adjustment expenses

0

0

242,092

0

242,092

Acquisition costs and other underwriting expenses

0

0

163,258

0

163,258

Corporate and other operating expenses

23,466

10,143

428

0

34,037

Interest expense

732
��

13,005

175

(715
)

13,197

Loss on extinguishment of debt

3,060

0

0

0

3,060

Income (loss) before equity in net income (loss) of subsidiaries and income taxes

(27,656
)

(63,599
)

60,885

0

(30,370
)
Equity in net income (loss) of subsidiaries

5,459

22,509

(25,649
)

(2,319
)

0

Income (loss) before income taxes

(22,197
)

(41,090
)

35,236

(2,319
)

(30,370
)
Income tax expense (benefit)

0

(15,441
)

7,268

0

(8,173
)
Net income (loss)

$
(22,197
)

$
(25,649
)

$
27,968

$
(2,319
)

$
(22,197
)

~~(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

$
0

$
0

$
383,602

$
0

$
383,602

Net investment income

1,764

5,743

25,747

(861
)

32,393

Net realized investment gains

298

7,969

3,023

0

11,290

Other income

0

30

1,244

0

1,274

Total revenues

2,062

13,742

413,616

(861
)

428,559

Losses and Expenses:

Net losses and loss adjustment expenses

0

0

201,979

0

201,979

Acquisition costs and other underwriting expenses

0

0

153,643

0

153,643

Corporate and other operating expenses

4,306

6,406

990

0

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

0

46,147

Equity in net income of subsidiaries

44,057

16,597

10,903

(71,557
)

0

Income before income taxes

40,984

9,058

67,662

(71,557
)

46,147

Income tax expense (benefit)

0

(1,845
)

7,008

0

5,163

Net income

$
40,984

$
10,903

$
60,654

$
(71,557
)

$
40,984

~~(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~~

~~(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
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

0

563,926

Proceeds from maturity of fixed maturities

280

0

89,595

89,875

Proceeds from other invested assets

1,700

123

0

1,823

Amounts paid in connection with derivatives

0

(20,130
)

0

(20,130
)
Purchases of fixed maturities

(185,692
)

(50,283
)

(466,752
)

(702,727
)
Purchases of equity securities

(107,228
)

(286,735
)

0

(393,963
)
Purchases of other invested assets

0

(297
)

0

(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

0

(73,629
)

0

(73,629
)
Proceeds (repayment) of note to affiliates

0

5,049

(5,049
)

0

Dividends paid to shareholders

(10,683
)

0

0

(10,683
)
Issuance of series A cumulative fixed rate preferred shares

4,000

—

0

4,000

Dividends from subsidiaries

226,000

—

(226,000
)

0

Capital contribution

(26,466
)

26,466

0

0

Purchase of class A common shares

(153
)

0

0

(153
)
Redemption of subordinated notes

0

(100,000
)

0

(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

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

0

206,212

Proceeds from maturity of fixed maturities

0

0

113,480

113,480

Proceeds from other invested assets

3,161

11,040

0

14,201

Amounts paid in connection with derivatives

0

(12,516
)

0

(12,516
)
Purchases of fixed maturities

(10,548
)

(24,280
)

(666,856
)

(701,684
)
Purchases of equity securities

(40,564
)

(285,408
)

0

(325,972
)
Purchases of other invested assets

0

(3,500
)

0

(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

0

8,561

0

8,561

Dividends paid to shareholders

(7,130
)

0

0

(7,130
)
Purchase of class A common shares

(947
)

0

0

(947
)
Net cash provided by (used for) financing activities

(8,077
)

8,561

0

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

In ~~March, 2020,~~December, 2019, the FASB issued ~~new~~updated guidance related to the accounting for income taxes. The updated guidance ~~that affected a variety of topics~~is intended to simplify the accounting for income taxes by removing several exceptions contained in ~~the Codification.~~existing guidance and amending other existing guidance to simplify several other income tax accounting matters. The ~~amendments in this update are meant to make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarification. This~~updated guidance is effective for ~~all~~ fiscal years beginning after December 15, ~~2019 including~~2020 and interim periods within those fiscal years. The Company adopted this guidance on January 1, ~~2020.~~2021. The adoption of this new accounting guidance did not have a material impact on the Company’s financial condition, results of operations, or cash flows.

In August, 2018, the FASB issued new accounting guidance which removed, modified, and added certain disclosures related to Topic 820, Fair Value. The affected disclosures are related to transfers between fair value levels, level 3 assets, and investments in certain entities that calculate net asset value. This guidance is effective for all fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. The Company adopted this guidance on January 1, 2020. The adoption of this new accounting guidance did not have a material impact on the Company’s financial condition, results of operations, or cash flows.

In January, 2017, the FASB issued updated guidance that simplifies how an entity is required to test goodwill for impairment by eliminating the requirement to calculate the implied fair value of goodwill (i.e. Step 2 of the current goodwill impairment test). Under the new amendments, an entity may still first assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized, if any. A goodwill impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. This guidance is effective for public business entities’ annual or interim goodwill impairment testing in fiscal years beginning after December 15, 2019. The Company adopted this guidance on January 1, 2020. The adoption of this new accounting guidance did not have a material impact on the Company’s financial condition, results of operations, or cash flows.

In June, 2016, the FASB issued new accounting guidance addressing the measurement of credit losses on financial instruments. The new guidance requires financial assets measured at amortized cost, which includes but are not limited to premiums receivable and reinsurance receivables, to be presented at the net amount expected to be collected over the life of the asset using an allowance for credit losses. Changes in the allowance are charged to earnings. The measurement of expected credit losses should consider relevant information about past events, including historical experience, current information, as well as reasonable and supportable forecasts that affect the collectability of the financial assets. For available for sale debt securities, credit losses should be measured similar to the old guidance; however, the new guidance requires that credit losses be presented as an allowance rather than as a write-down of the amortized cost basis of the impaired securities and allows for the reversal of credit losses in the current period net income. In addition, the Company made certain accounting policy elections related to accrued interest receivables which are described in Note 3. The Company adopted this new accounting guidance on January 1, 2020 using a modified-retrospective approach. The adoption of this new accounting guidance and the impact on the Company’s financial condition, results of operations, and cash flows is described primarily within Note 3 and Note 6.

Please see Note 22 of the notes to the consolidated financial statements in Item 8 Part II of the Company’s 2019 Annual Report on Form 10-K for more information on accounting pronouncements issued but not yet adopted.

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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 ~~Global Indemnity~~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, ~~2019.~~2020.

On April 19, 2021, the Company announced that David S. Charlton was named chief executive of the Company’s insurance operations and was appointed to serve as the principal executive officer of the Company. Furthermore, in connection with Mr. Charlton’s appointment, the board of directors of Global Indemnity Group, LLC (the “Board”) has increased the size of the Board from six to seven directors and appointed Mr. Charlton to fill the newly-created directorship, in each case, with effect as of execution of the CEO Agreement.

On May 17, 2021, the Company announced that Reiner R. Mauer was named Chief Operations Officer of the Company’s insurance business and will serve as the principal operating officer of the Company.

The global outbreak of COVID-19 ~~presents~~continues to present significant risks to the ~~Company which the Company is not able to fully evaluate at the current time.~~Company. The COVID-19 pandemic may affect the Company’s operations ~~in the fourth quarter and may continue to do so indefinitely, thereafter.~~indefinitely. The Company may experience reductions in premium volume, delays in the collection of premiums, and increases in COVID-19 related claims. ~~The~~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.

~~On August 28, 2020, the Company completed its plan to redomesticate to the United States.~~ ~~Please see Note 2 of the notes to the consolidated financial statements in Item 1 of Part I of this report for additional information on the redomestication.~~

In August 2020, the Company redeemed the entire $100 million in aggregate principal amount of the outstanding 2045 Notes plus accrued and unpaid interest on the 2045 Notes redeemed to, but not including, the Redemption Date of August 15, 2020.

During ~~2020,~~2021, the Board of Directors ~~approved a dividend payment of $0.25 per common share to all shareholders of record on the close of business on March 24, 2020 and June 23, 2020 and~~ approved a distribution payment of $0.25 per common share to all shareholders of record on the close of business on ~~September 25, 2020. Dividends / distributions~~March 22, 2021 and June 21, 2021. Distributions paid to common shareholders were ~~$10.7~~$7.2 million during the ~~nine~~six months ended ~~September~~June 30, ~~2020.~~ 2021. In addition, distributions of $0.2 million were paid to Global Indemnity Group, LLC’s preferred shareholder during the six months ended June 30, 2021.

~~A.M.~~AM Best has seven Rating Categories in the ~~A.M.~~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 ~~September 23, 2020, A.M.~~April 21, 2021, AM Best ~~assigned~~affirmed the ~~companies in the Insurance Operations and Reinsurance Operations a~~ financial strength rating of "A" (Excellent). for the U.S. operating subsidiaries of Global Indemnity Group, LLC.

The Company’s Commercial Specialty segment sells its property and casualty insurance products through a group of approximately ~~185~~195 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. 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’s Specialty Property segment, primarily via American Reliable, offers specialty personal lines property and casualty insurance products through a group of approximately ~~225~~205 agents, primarily comprised of wholesale general agents, with specific binding authority.

The Company’s Farm, Ranch & Stable segment, primarily via American Reliable, provides specialized property and casualty coverage including Commercial Farm Auto and Excess/Umbrella Coverage for the agriculture industry as well as specialized insurance products for the equine mortality and equine major medical industry. These insurance products are sold through a group of approximately ~~220~~215 agents, primarily comprised of wholesalers and retail agents, with a selected number having specific binding authority.

The Company’s Reinsurance Operations provides reinsurance solutions through brokers and on a direct basis. It uses its capital capacity to write niche and specialty-focused treaties and business which meet the Company’s risk tolerance and return thresholds. Prior to the redomestication, the Company’s Reinsurance Operations consisted solely of the operations of Global Indemnity Reinsurance. In connection with the redomestication, Global Indemnity Reinsurance merged into ~~Penn Patriot~~Penn-Patriot Insurance Company and all of its business was assumed by the Company’s existing insurance company subsidiaries.

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.

The Company’s consolidated financial statements are prepared in conformity with GAAP, which require it to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions.

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, please see the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. There have been no significant changes to any of these policies or underlying methodologies during the current year except for the ~~following.~~following:

~~Effective January 1, 2020,~~The receipt of results for investments in limited partnerships and limited liability companies may vary. If results are received on a timely basis, they are included in current results. If they are not received on a timely basis, they are recorded on a one quarter lag. The recording of such results is applied consistently for each investment once the ~~Company adopted new accounting guidance related to~~timing of receiving the ~~measurement of credit losses on financial instruments.~~ In conjunction with implementing this new guidance, the Company modified its impairment process as well as made certain accounting policy elections related to accrued interest receivables. Please see Note 3 of the notes to the consolidated financial statements in Item 1 of Part I of this report for a discussion on the Company’s impairment process and accounting policy elections related to accrued interest receivable. Please see Note 6 for a discussion on the Company’s policies related to the evaluation process when estimating expected credit losses for premiums receivable and reinsurance receivables.results has been established.

The following table summarizes the Company’s results for the quarters and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019:~~2020:

	Quarters Ended September 30,						%			Nine Months Ended September 30,						%			Quarters Ended June 30,						%			Six Months Ended June 30,						%
(Dollars in thousands)	2020			2019			Change			2020			2019			Change			2021			2020			Change			2021			2020			Change
Gross written premiums	$	143,749		$	157,177			(8.5	%)	$	464,022		$	478,699			(3.1	%)	$	175,236		$	164,549			6.5	%	$	338,794		$	320,273			5.8	%

Net written premiums	$	130,611		$	138,836			(5.9	%)	$	416,987		$	421,321			(1.0	%)	$	160,653		$	147,264			9.1	%	$	308,336		$	286,376			7.7	%

Net earned premiums	$	140,302		$	133,312			5.2	%	$	426,617		$	383,602			11.2	%	$	149,408		$	141,847			5.3	%	$	293,108		$	286,315			2.4	%
Other income		597			264			126.1	%		1,509			1,274			18.4	%		512			744			(31.2	%)		920			912			0.9	%
Total revenues		140,899			133,576			5.5	%		428,126			384,876			11.2	%		149,920			142,591			5.1	%		294,028			287,227			2.4	%

Losses and expenses:
Net losses and loss adjustment expenses		97,148			73,583			32.0	%		242,092			201,979			19.9	%		90,938			67,297			35.1	%		181,721			144,944			25.4	%
Acquisition costs and other underwriting expenses		53,268			53,366			(0.2	%)		163,258			153,643			6.3	%		57,213			53,578			6.8	%		111,977			109,990			1.8	%
Underwriting income (loss)		(9,517	)		6,627		NM				22,776			29,254			(22.1	%)
Underwriting income																				1,769			21,716			(91.9	%)		330			32,293			(99.0	%)

Net investment income		11,746			11,348			3.5	%		19,516			32,393			(39.8	%)
Net investment income (loss)																				10,633			(2,359	)	NM				20,469			7,770			163.4	%
Net realized investment gains (losses)		7,323			(2,690	)	NM				(22,332	)		11,290		NM				3,833			38,507			(90.0	%)		7,652			(29,655	)		125.8	%
Other loss		(55	)		—			100.0	%		(36	)		—			100.0	%
Other income (loss)																				9			22			(59.1	%)		(22	)		19		NM
Corporate and other operating expenses		(21,196	)		(3,858	)	NM				(34,037	)		(11,702	)		190.9	%		(6,329	)		(8,618	)		(26.6	%)		(10,605	)		(12,841	)		(17.4	%)
Interest expense		(3,620	)		(5,023	)		(27.9	%)		(13,197	)		(15,088	)		(12.5	%)		(2,696	)		(4,712	)		(42.8	%)		(5,291	)		(9,577	)		(44.8	%)
Loss on extinguishment of debt		(3,060	)		—		NM				(3,060	)		—		NM
Income (loss) before income taxes		(18,379	)		6,404		NM				(30,370	)		46,147			(165.8	%)		7,219			44,556			(83.8	%)		12,533			(11,991	)	NM

Income tax expense (benefit)		(3,209	)		(317	)	NM				(8,173	)		5,163		NM				844			7,005			(88.0	%)		641			(4,964	)		(112.9	%)
Net income (loss)	$	(15,170	)	$	6,721		NM			$	(22,197	)	$	40,984			(154.2	%)	$	6,375		$	37,551			(83.0	%)	$	11,892		$	(7,027	)	NM

Underwriting Ratios:
Loss ratio (1):		69.2	%		55.2	%					56.7	%		52.7	%
Loss ratio ₍₁₎:																				60.9	%		47.4	%					62.0	%		50.6	%
Expense ratio (2)		38.0	%		40.0	%					38.3	%		40.1	%					38.3	%		37.8	%					38.2	%		38.4	%
Combined ratio (3)		107.2	%		95.2	%					95.0	%		92.8	%					99.2	%		85.2	%					100.2	%		89.0	%

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

	Quarters Ended September 30,								Nine Months Ended September 30,								Quarters Ended June 30,							Six Months Ended June 30,
(Dollars in thousands)	2020		2019			% Change			2020		2019			% Change			2021		2020		% Change			2021		��	2020		% Change
Gross written premiums (1)
Commercial Specialty	$	74,971	$	73,175			2.5	%	$	243,099	$	214,467			13.4	%	$	96,680	$	87,297		10.7	%	$	184,012		$	168,128		9.4	%
Specialty Property		34,730		42,611			(18.5	%)		107,951		128,771			(16.2	%)		33,013		37,978		(13.1	%)		66,371			73,221		(9.4	%)
Farm, Ranch, & Stable		19,443		21,410			(9.2	%)		64,798		65,872			(1.6	%)
Farm, Ranch & Stable																		20,851		23,222		(10.2	%)		41,853			45,355		(7.7	%)
Reinsurance (3)		14,605		19,981			(26.9	%)		48,174		69,589			(30.8	%)		24,692		16,052		53.8	%		46,558			33,569		38.7	%
Total gross written premiums	$	143,749	$	157,177			(8.5	%)	$	464,022	$	478,699			(3.1	%)	$	175,236	$	164,549		6.5	%	$	338,794		$	320,273		5.8	%

Ceded written premiums
Commercial Specialty	$	5,897	$	10,250			(42.5	%)	$	23,662	$	29,265			(19.1	%)	$	8,348	$	9,417		(11.4	%)	$	17,165		$	17,765		(3.4	%)
Specialty Property		4,759		4,983			(4.5	%)		14,898		18,103			(17.7	%)		3,264		4,903		(33.4	%)		6,923			10,139		(31.7	%)
Farm, Ranch, & Stable		2,482		3,116			(20.3	%)		8,475		10,011			(15.3	%)
Farm, Ranch & Stable																		2,971		2,965		0.2	%		6,370			5,993		6.3	%
Reinsurance (3)		—		(8	)		(100.0	%)		—		(1	)		(100.0	%)		—		—		—			—			—		—
Total ceded written premiums	$	13,138	$	18,341			(28.4	%)	$	47,035	$	57,378			(18.0	%)	$	14,583	$	17,285		(15.6	%)	$	30,458		$	33,897		(10.1	%)

Net written premiums (2)
Commercial Specialty	$	69,074	$	62,925			9.8	%	$	219,437	$	185,202			18.5	%	$	88,332	$	77,880		13.4	%	$	166,847		$	150,363		11.0	%
Specialty Property		29,971		37,628			(20.3	%)		93,053		110,668			(15.9	%)		29,749		33,075		(10.1	%)		59,448			63,082		(5.8	%)
Farm, Ranch, & Stable		16,961		18,294			(7.3	%)		56,323		55,861			0.8	%
Farm, Ranch & Stable																		17,880		20,257		(11.7	%)		35,483			39,362		(9.9	%)
Reinsurance (3)		14,605		19,989			(26.9	%)		48,174		69,590			(30.8	%)		24,692		16,052		53.8	%		46,558			33,569		38.7	%
Total net written premiums	$	130,611	$	138,836			(5.9	%)	$	416,987	$	421,321			(1.0	%)	$	160,653	$	147,264		9.1	%	$	308,336		$	286,376		7.7	%

Net earned premiums
Commercial Specialty	$	73,887	$	60,869			21.4	%	$	211,329	$	173,215			22.0	%	$	80,146	$	69,728		14.9	%	$	156,296		$	137,442		13.7	%
Specialty Property		31,388		34,554			(9.2	%)		99,147		104,740			(5.3	%)		29,892		33,543		(10.9	%)		60,483			67,759		(10.7	%)
Farm, Ranch, & Stable		19,978		18,377			8.7	%		57,691		52,849			9.2	%
Farm, Ranch & Stable																		17,960		19,030		(5.6	%)		36,101			37,713		(4.3	%)
Reinsurance (3)		15,049		19,512			(22.9	%)		58,450		52,798			10.7	%		21,410		19,546		9.5	%		40,228			43,401		(7.3	%)
Total net earned premiums	$	140,302	$	133,312			5.2	%	$	426,617	$	383,602			11.2	%	$	149,408	$	141,847		5.3	%	$	293,108		$	286,315		2.4	%

Gross written premiums ~~decreased~~increased by ~~8.5%~~6.5% and ~~3.1%~~5.8% for the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021, respectively, as compared to same ~~period~~periods in ~~2019. The decrease~~2020. This increase is mainly due to the continued growth of existing programs, increased pricing, and several new programs within Commercial Specialty as well as the organic growth of an existing casualty treaty and the assumption of three new smaller casualty treaties within Reinsurance Operations. This growth in premiums was partially offset by the continued reduction of catastrophe exposed business within both Specialty Property and Farm, Ranch & Stable, the continued reduction in business not providing an adequate return on capital within Specialty Property, ~~and Reinsurance Operations’~~the non-renewal of its property catastrophe ~~treaties. In addition, non-renewals of several small business classes was higher~~treaties within Reinsurance Operations, and ~~new business growth slowed within~~actions taken by Commercial Specialty ~~which was likely the result~~to reduce risk and increase profitability of Covid-19. These reductions in premiums were partially offset by organic growth from existing agents, increased pricing, and several new programs within Commercial Specialty and growth of the new casualty treaty entered into by Reinsurance Operations in 2019.Property Brokerage.

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

	Quarters Ended September 30,						Point			Nine Months Ended September 30,						Point		Quarters Ended June 30,						Point			Six Months Ended June 30,						Point
(Dollars in thousands)	2020			2019			Change			2020			2019			Change		2021			2020			Change			2021			2020			Change
Commercial Specialty		92.1	%		86.0	%		6.1			90.3	%		86.4	%		3.9		91.4	%		89.2	%		2.2			90.7	%		89.4	%		1.3
Specialty Property		86.3	%		88.3	%		(2.0	)		86.2	%		85.9	%		0.3		90.1	%		87.1	%		3.0			89.6	%		86.2	%		3.4
Farm, Ranch, & Stable		87.2	%		85.4	%		1.8			86.9	%		84.8	%		2.1
Farm, Ranch & Stable																			85.8	%		87.2	%		(1.4	)		84.8	%		86.8	%		(2.0	)
Reinsurance		100.0	%		100.0	%		—			100.0	%		100.0	%		—		100.0	%		100.0	%		—			100.0	%		100.0	%		—
Total		90.9	%		88.3	%		2.6			89.9	%		88.0	%		1.9		91.7	%		89.5	%		2.2			91.0	%		89.4	%		1.6

The net premium retention for the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 increased by ~~2.6~~2.2 points and ~~1.9~~1.6 points, respectively, as compared to the same ~~period~~periods in ~~2019.~~2020. This increase in retention is primarily driven by the restructuring of the Company’s catastrophe reinsurance treaties which occurred on June 1, 2020 as well as a change in the mix of business.

Net earned premiums within the Commercial Specialty segment increased by ~~21.4%~~14.9% and ~~22.0%~~13.7% for the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020,~~2021, respectively, as compared to the same ~~period~~periods in ~~2019.~~2020. 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.~~programs partially offset by a reduction in Property Brokerage’s net earned premiums as a result of actions taken to reduce risk and increase profitability. Property net earned premiums were ~~$34.8~~$33.0 million and ~~$28.1~~$31.9 million for the quarters ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and ~~$97.2~~$67.5 million and ~~$82.1~~$62.4 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. Casualty net earned premiums were ~~$39.1~~$47.1 million and ~~$32.8~~$37.8 million for the quarters ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and ~~$114.1~~$88.8 million and ~~$91.1~~$75.0 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively.

Net earned premiums within the Specialty Property segment decreased by ~~9.2%~~10.9% and ~~5.3%~~10.7% for the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020,~~2021, respectively, as compared to the same ~~period~~periods in ~~2019~~2020 primarily due to a continued reduction of catastrophe exposed business and a reduction in business not providing an adequate return on capital. Property net earned premiums were ~~$29.3~~$28.1 million and ~~$31.9~~$31.2 million for the quarters ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and ~~$92.2~~$56.9 million and ~~$96.7~~$62.8 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. Casualty net earned premiums were ~~$2.1~~$1.8 million and ~~$2.6~~$2.4 million for the quarters ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and ~~$7.0~~$3.6 million and ~~$8.1~~$4.9 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively.

Net earned premiums within the Farm, Ranch & Stable segment ~~increased~~decreased by ~~8.7%~~5.6% and ~~9.2%~~4.3% for the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020,~~2021, respectively, as compared to the same ~~period~~periods in ~~2019.~~2020. The ~~increase~~decrease in net earned premiums was primarily due to ~~a growth in premiums written in prior periods as a result~~the continued reduction of ~~rate increases and new agent appointments.~~catastrophe exposed business. Property net earned premiums were ~~$15.0~~$13.4 million and ~~$13.1~~$13.7 million for the quarters ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and ~~$42.1~~$27.0 million and ~~$37.7~~$27.1 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. Casualty net earned premiums were ~~$5.0~~$4.6 million and $5.3 million for the quarters ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and ~~$15.6~~$9.1 million and ~~$15.2~~$10.6 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively.

Net earned premiums within the Reinsurance Operations segment ~~decreased~~increased by ~~22.9%~~9.5% for the quarter ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019~~2020 primarily due to organic growth of an existing casualty treaty partially offset by a reduction in premiums written due to the non-renewal of its property catastrophe treaties. Net earned premiums decreased by 7.3% for the six months ended June 30, 2021 as compared to the same period in 2020 primarily due to a reduction in premiums written due to the non-renewal of its property catastrophe treaties partially offset by the ~~new~~organic growth of an existing casualty treaty entered into during 2019. Net earned premiums within the Reinsurance Operations segment increased by 10.7% for the nine months ended September 30, 2020 as compared to the same period in 2019 primarily due to the new casualty treaty entered into during 2019 partially offset by the non-renewal of its property catastrophe treaties.treaty. Property net earned premiums were ~~$5.5~~$3.4 million and ~~$13.8~~$9.1 million for the quarters ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and ~~$24.5~~$5.4 million and ~~$40.6~~$19.0 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. Casualty net earned premiums were ~~$9.6~~$18.1 million and ~~$5.7~~$10.5 million for the quarters ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and ~~$33.9~~$34.9 million and ~~$12.2~~$24.4 million for the ~~nine~~six months ended ~~September~~June 30, 2021 and 2020, ~~and 2019,~~ respectively.

Management’s best estimate at ~~September~~June 30, ~~2020~~2021 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 ~~$669.9~~$697.6 million and ~~$571.3~~$610.5 million, respectively, as of ~~September~~June 30, ~~2020.~~2021. A breakout of the Company’s gross and net reserves, as of ~~September~~June 30, ~~2020,~~2021, is as follows:

	Gross Reserves						Gross Reserves
(Dollars in thousands)	Case		IBNR (1)		Total		Case		IBNR ₍₁₎		Total
Commercial Specialty	$	139,513	$	275,802	$	415,315	$	178,475	$	279,116	$	457,591
Specialty Property		22,738		35,307		58,045		13,117		25,280		38,397
Farm, Ranch, & Stable		16,812		33,987		50,799
Farm, Ranch & Stable								12,614		32,412		45,026
Reinsurance Operations		56,627		89,144		145,771		44,185		112,419		156,604
Total	$	235,690	$	434,240	$	669,930	$	248,391	$	449,227	$	697,618

	Net Reserves (2)						Net Reserves ₍₂₎
(Dollars in thousands)	Case		IBNR (1)		Total		Case		IBNR₍₁₎		Total
Commercial Specialty	$	113,322	$	234,304	$	347,626	$	142,426	$	241,976	$	384,402
Specialty Property		11,536		25,806		37,342		10,904		21,906		32,810
Farm, Ranch, & Stable		12,608		27,927		40,535
Farm, Ranch & Stable								11,613		25,038		36,651
Reinsurance Operations		56,627		89,144		145,771		44,185		112,419		156,604
Total	$	194,093	$	377,181	$	571,274	$	209,128	$	401,339	$	610,467

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 impact of changes (which could be favorable or unfavorable) in frequency and severity on the Company’s current accident year net loss estimate of ~~$273.7~~$179.6 million for claims occurring during the ~~nine~~six months ended ~~September~~June 30, ~~2020:~~2021:

			Severity Change																Severity Change
(Dollars in thousands)	(Dollars in thousands)		-10%			-5%			0%			5%			10%		(Dollars in thousands)		-10%			-5%			0%			5%			10%
Frequency Change		-5%		(39,687	)		(26,686	)		(13,685	)		(684	)		12,317		-5%		(26,042	)		(17,511	)		(8,980	)		(449	)		8,082
		-3%		(34,760	)		(21,485	)		(8,211	)		5,063			18,338		-3%		(22,809	)		(14,099	)		(5,388	)		3,323			12,033
		-2%		(32,297	)		(18,885	)		(5,474	)		7,937			21,349		-2%		(21,193	)		(12,392	)		(3,592	)		5,208			14,009
		-1%		(29,833	)		(16,285	)		(2,737	)		10,811			24,359		-1%		(19,576	)		(10,686	)		(1,796	)		7,094			15,984
		0%		(27,370	)		(13,685	)		—			13,685			27,370		0%		(17,960	)		(8,980	)		—			8,980			17,960
		1%		(24,907	)		(11,085	)		2,737			16,559			30,381		1%		(16,344	)		(7,274	)		1,796			10,866			19,936
		2%		(22,443	)		(8,485	)		5,474			19,433			33,391		2%		(14,727	)		(5,568	)		3,592			12,752			21,911
		3%		(19,980	)		(5,885	)		8,211			22,307			36,402		3%		(13,111	)		(3,861	)		5,388			14,637			23,887
		5%		(15,054	)		(684	)		13,685			28,054			42,424		5%		(9,878	)		(449	)		8,980			18,409			27,838

The Company’s net reserves for losses and loss adjustment expenses of ~~$571.3~~$610.5 million as of ~~September~~June 30, ~~2020~~2021 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.

The components of income and loss from the Company’s Commercial Specialty segment and corresponding underwriting ratios are as follows:

	Quarters Ended September 30,				%			Nine Months Ended September 30,				%			Quarters Ended June 30,					%			Six Months Ended June 30,					%
(Dollars in thousands)	2020 (1)		2019 (1)		Change			2020 (1)		2019 (1)		Change			2021			2020		Change			2021			2020		Change
Gross written premiums	$	74,971	$	73,175		2.5	%	$	243,099	$	214,467		13.4	%	$	96,680		$	87,297		10.7	%	$	184,012		$	168,128		9.4	%

Net written premiums	$	69,074	$	62,925		9.8	%	$	219,437	$	185,202		18.5	%	$	88,332		$	77,880		13.4	%	$	166,847		$	150,363		11.0	%

Net earned premiums	$	73,887	$	60,869		21.4	%	$	211,329	$	173,215		22.0	%	$	80,146		$	69,728		14.9	%	$	156,296		$	137,442		13.7	%
Total revenues		73,887		60,869		21.4	%		211,329		173,215		22.0	%		80,146			69,728		14.9	%		156,296			137,442		13.7	%

Losses and expenses:
Net losses and loss adjustment expenses		42,879		27,389		56.6	%		109,191		81,731		33.6	%		51,818			28,877		79.4	%		105,053			66,312		58.4	%
Acquisition costs and other underwriting expenses		26,943		24,820		8.6	%		79,452		70,522		12.7	%		29,633			26,516		11.8	%		57,810			52,509		10.1	%
Underwriting income	$	4,065	$	8,660		(53.1	%)	$	22,686	$	20,962		8.2	%
Underwriting income (loss)															$	(1,305	)	$	14,335		(109.1	%)	$	(6,567	)	$	18,621		(135.3	%)

	Quarters Ended September 30,						Point			Nine Months Ended September 30,						Point			Quarters Ended June 30,						Point			Six Months Ended June 30,						Point
	2020			2019			Change			2020			2019			Change			2021			2020			Change			2021			2020			Change
Underwriting Ratios:
Loss ratio:
Current accident year		62.8	%		53.5	%		9.3			60.1	%		54.2	%		5.9			57.2	%		61.8	%		(4.6	)		63.7	%		58.6	%		5.1
Prior accident year		(4.8	%)		(8.5	%)		3.7			(8.4	%)		(7.0	%)		(1.4	)		7.4	%		(20.4	%)		27.8			3.6	%		(10.4	%)		14.0
Calendar year loss ratio		58.0	%		45.0	%		13.0			51.7	%		47.2	%		4.5			64.6	%		41.4	%		23.2			67.3	%		48.2	%		19.1
Expense ratio		36.5	%		40.8	%		(4.3	)		37.6	%		40.7	%		(3.1	)		37.0	%		38.0	%		(1.0	)		37.0	%		38.2	%		(1.2	)
Combined ratio		94.5	%		85.8	%		8.7			89.3	%		87.9	%		1.4			101.6	%		79.4	%		22.2			104.3	%		86.4	%		17.9

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,
	Quarters Ended September 30,												Nine Months Ended September 30,												2021						2020						2021						2020
(Dollars in thousands)	2020						2019						2020						2019						Losses			Loss Ratio			Losses			Loss Ratio			Losses			Loss Ratio			Losses			Loss Ratio
	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)	$	14,769			42.4	%	$	13,641			48.5	%	$	41,581			42.8	%	$	35,694			43.5	%	$	16,093			48.8	%	$	14,563			45.6	%	$	36,385			53.9	%	$	26,812			42.9	%
Effect of prior accident year		(568	)		(1.6	%)		16			0.1	%		(238	)		(0.2	%)		(959	)		(1.2	%)		224			0.7	%		689			2.2	%		(1,339	)		(2.0	%)		330			0.5	%
Non catastrophe property losses and ratio (2)	$	14,201			40.8	%	$	13,657			48.6	%	$	41,343			42.6	%	$	34,735			42.3	%	$	16,317			49.5	%	$	15,252			47.8	%	$	35,046			51.9	%	$	27,142			43.4	%

Catastrophe losses and ratio excluding the effect of prior accident year (1)	$	9,537			27.4	%	$	1,731			6.2	%	$	23,116			23.8	%	$	7,088			8.6	%	$	2,666			8.1	%	$	9,866			30.9	%	$	12,970			19.2	%	$	13,579			21.8	%
Effect of prior accident year		626			1.8	%		(14	)		(0.1	%)		6,063			6.2	%		34			0.1	%		6,779			20.5	%		5,099			16.0	%		8,102			12.0	%		5,437			8.7	%
Catastrophe losses and ratio (2)	$	10,163			29.2	%	$	1,717			6.1	%	$	29,179			30.0	%	$	7,122			8.7	%	$	9,445			28.6	%	$	14,965			46.9	%	$	21,072			31.2	%	$	19,016			30.5	%

Total property losses and ratio excluding the effect of prior accident year (1)	$	24,306			69.8	%	$	15,372			54.7	%	$	64,697			66.6	%	$	42,782			52.1	%	$	18,759			56.9	%	$	24,429			76.5	%	$	49,355			73.1	%	$	40,391			64.7	%
Effect of prior accident year		58			0.2	%		2			—	%		5,825			6.0	%		(925	)		(1.1	%)		7,003			21.2	%		5,788			18.2	%		6,763			10.0	%		5,767			9.2	%
Total property losses and ratio (2)	$	24,364			70.0	%	$	15,374			54.7	%	$	70,522			72.6	%	$	41,857			51.0	%	$	25,762			78.1	%	$	30,217			94.7	%	$	56,118			83.1	%	$	46,158			73.9	%

Casualty
Total Casualty losses and ratio excluding the effect of prior accident year (1)	$	22,119			56.6	%	$	17,205			52.5	%	$	62,289			54.6	%	$	51,023			56.0	%
Total casualty losses and ratio excluding the effect of prior accident year ₍₁₎																									$	27,097			57.5	%	$	18,697			49.4	%	$	50,146			56.5	%	$	40,170			53.6	%
Effect of prior accident year		(3,604	)		(9.2	%)		(5,190	)		(15.8	%)		(23,620	)		(20.7	%)		(11,149	)		(12.2	%)		(1,041	)		(2.2	%)		(20,037	)		(53.0	%)		(1,211	)		(1.4	%)		(20,016	)		(26.7	%)
Total Casualty losses and ratio (2)	$	18,515			47.4	%	$	12,015			36.7	%	$	38,669			33.9	%	$	39,874			43.8	%
Total casualty losses and ratio₍₂₎																									$	26,056			55.3	%	$	(1,340	)		(3.6	%)	$	48,935			55.1	%	$	20,154			26.9	%

Total																																				��
Total net losses and loss adjustment expense and total loss ratio excluding the effect of prior accident year (1)	$	46,425			62.8	%	$	32,577			53.5	%	$	126,986			60.1	%	$	93,805			54.2	%	$	45,856			57.2	%	$	43,126			61.8	%	$	99,501			63.7	%	$	80,561			58.6	%
Effect of prior accident year		(3,546	)		(4.8	%)		(5,188	)		(8.5	%)		(17,795	)		(8.4	%)		(12,074	)		(7.0	%)		5,962			7.4	%		(14,249	)		(20.4	%)		5,552			3.6	%		(14,249	)		(10.4	%)
Total net losses and loss adjustment expense and total loss ratio (2)	$	42,879			58.0	%	$	27,389			45.0	%	$	109,191			51.7	%	$	81,731			47.2	%	$	51,818			64.6	%	$	28,877			41.4	%	$	105,053			67.3	%	$	66,312			48.2	%

	Quarters Ended September 30,				%			Nine Months Ended September 30,				%			Quarters Ended June 30,				%			Six Months Ended June 30,				%
(Dollars in thousands)	2020		2019		Change			2020		2019		Change			2021		2020		Change			2021		2020		Change
Property losses
Non-catastrophe	$	14,769	$	13,641		8.3	%	$	41,581	$	35,694		16.5	%	$	16,093	$	14,563		10.5	%	$	36,385	$	26,812		35.7	%
Catastrophe		9,537		1,731	NM				23,116		7,088	NM				2,666		9,866		(73.0	%)		12,970		13,579		(4.5	%)
Property losses		24,306		15,372		58.1	%		64,697		42,782		51.2	%		18,759		24,429		(23.2	%)		49,355		40,391		22.2	%
Casualty losses		22,119		17,205		28.6	%		62,289		51,023		22.1	%		27,097		18,697		44.9	%		50,146		40,170		24.8	%
Total accident year losses	$	46,425	$	32,577		42.5	%	$	126,986	$	93,805		35.4	%	$	45,856	$	43,126		6.3	%	$	99,501	$	80,561		23.5	%

	Quarters Ended September 30,						Point			Nine Months Ended September 30,						Point			Quarters Ended June 30,						Point			Six Months Ended June 30,						Point
	2020			2019			Change			2020			2019			Change			2021			2020			Change			2021			2020			Change
Current accident year loss ratio:
Property
Non-catastrophe		42.4	%		48.5	%		(6.1	)		42.8	%		43.5	%		(0.7	)		48.8	%		45.6	%		3.2			53.9	%		42.9	%		11.0
Catastrophe		27.4	%		6.2	%		21.2			23.8	%		8.6	%		15.2			8.1	%		30.9	%		(22.8	)		19.2	%		21.8	%		(2.6	)
Property loss ratio		69.8	%		54.7	%		15.1			66.6	%		52.1	%		14.5			56.9	%		76.5	%		(19.6	)		73.1	%		64.7	%		8.4
Casualty loss ratio		56.6	%		52.5	%		4.1			54.6	%		56.0	%		(1.4	)		57.5	%		49.4	%		8.1			56.5	%		53.6	%		2.9
Total accident year loss ratio		62.8	%		53.5	%		9.3			60.1	%		54.2	%		5.9			57.2	%		61.8	%		(4.6	)		63.7	%		58.6	%		5.1

The current accident year non-catastrophe property loss ratio ~~improved~~increased by ~~6.1~~3.2 points during the quarter ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019~~2020 reflecting ~~a lower~~higher claims severity in the ~~third~~second accident ~~quarter and calendar~~ quarter compared to last year.

The current accident year non-catastrophe property loss ratio ~~improved~~increased by ~~0.7~~11.0 points during the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019 reflecting a lower~~2020 due to higher claims severity for the first ~~nine~~six months compared to last year.

The current accident year catastrophe loss ratio ~~increased~~improved by ~~21.2~~22.8 points during the quarter ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019 due to a higher~~2020 recognizing lower claims frequency and severity ~~for~~in the ~~third~~second accident ~~quarter and calendar~~ quarter compared to last year.

The current accident year catastrophe loss ratio ~~increased~~improved by ~~15.2~~2.6 points during the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019~~2020 due to ~~a higher~~lower claims frequency ~~and severity for the first nine~~through six months compared to last year.

The current accident year casualty loss ratio increased by ~~4.1~~8.1 points during the quarter ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019 due to a slightly~~2020 reflecting higher claims frequency ~~for the third accident quarter and higher claims severity~~ in the ~~calendar~~second accident quarter compared to last year.

The current accident year casualty loss ratio ~~improved~~increased by ~~1.4~~2.9 points during the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019~~2020 due to ~~a lower~~higher claims frequency through ~~the first nine~~six months compared to last year.

The calendar year loss ratio for the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 includes ~~a decrease~~an increase of ~~$3.5~~$6.0 million, or ~~4.8~~7.4 percentage points, and ~~a decrease~~an increase of ~~$17.8~~$5.6 million, or ~~8.4~~3.6 percentage points, respectively, related to reserve development on prior accident years. The calendar year loss ratio for the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2019~~2020 includes a decrease of ~~$5.2~~$14.2 million, or ~~8.5~~20.4 percentage points, and a decrease of ~~$12.1~~$14.2 million, or ~~7.0~~10.4 percentage points, respectively, related to reserve development on prior accident years. Please see Note 8 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.

The expense ratio for the Company’s Commercial Specialty segment improved by ~~4.3~~1.0 points from ~~40.8%~~38.0% for the quarter ended ~~September~~June 30, ~~2019~~2020 to ~~36.5%~~37.0% for the quarter ended ~~September~~June 30, ~~2020~~2021 and improved by ~~3.1~~1.2 points from ~~40.7%~~38.2% for the ~~nine~~six months ended ~~September~~June 30, ~~2019~~2020 to ~~37.6%~~37.0% for the ~~nine~~six months ended ~~September~~June 30, ~~2020.~~2021. The improvement in the expense ratio is primarily due to higher earned premiums.

~~COVID-19~~COVID-19’s lasting impacts could result in declines in business, non-payment of premiums, and increases in claims that could adversely affect Commercial Specialty’s business, financial condition, and results of operation.

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.

The components of income ~~and loss~~ from the Company’s Specialty Property segment and corresponding underwriting ratios are as follows:

	Quarters Ended September 30,						%			Nine Months Ended September 30,					%			Quarters Ended June 30,				%			Six Months Ended June 30,				%
(Dollars in thousands)	2020 (1)			2019 (1)			Change			2020 (1)			2019 (1)		Change			2021		2020		Change			2021		2020		Change
Gross written premiums	$	34,730		$	42,611			(18.5	%)	$	107,951		$	128,771		(16.2	%)	$	33,013	$	37,978		(13.1	%)	$	66,371	$	73,221		(9.4	%)

Net written premiums	$	29,971		$	37,628			(20.3	%)	$	93,053		$	110,668		(15.9	%)	$	29,749	$	33,075		(10.1	%)	$	59,448	$	63,082		(5.8	%)

Net earned premiums	$	31,388		$	34,554			(9.2	%)	$	99,147		$	104,740		(5.3	%)	$	29,892	$	33,543		(10.9	%)	$	60,483	$	67,759		(10.7	%)
Other income		450			465			(3.2	%)		1,306			1,406		(7.1	%)		458		429		6.8	%		888		856		3.7	%
Total revenues		31,838			35,019			(9.1	%)		100,453			106,146		(5.4	%)		30,350		33,972		(10.7	%)		61,371		68,615		(10.6	%)

Losses and expenses:
Net losses and loss adjustment expenses		34,430			25,997			32.4	%		65,619			57,611		13.9	%		15,302		13,691		11.8	%		29,780		31,189		(4.5	%)
Acquisition costs and other underwriting expenses		13,364			14,571			(8.3	%)		41,357			44,163		(6.4	%)		12,579		13,761		(8.6	%)		25,618		27,993		(8.5	%)
Underwriting income (loss)	$	(15,956	)	$	(5,549	)		187.5	%	$	(6,523	)	$	4,372	NM
Underwriting income																		$	2,469	$	6,520		(62.1	%)	$	5,973	$	9,433		(36.7	%)

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 Specialty Property 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,
	Quarters Ended September 30,												Nine Months Ended September 30,												2021						2020						2021						2020
(Dollars in thousands)	2020						2019						2020						2019						Losses			Loss Ratio			Losses			Loss Ratio			Losses			Loss Ratio			Losses			Loss Ratio
	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)	$	15,264			52.0	%	$	19,388			60.7	%	$	40,689			44.2	%	$	53,401			55.2	%	$	10,692			38.0	%	$	11,032			35.4	%	$	23,386			41.1	%	$	25,425			40.5	%
Effect of prior accident year		66			0.2	%		368			1.2	%		(2,979	)		(3.2	%)		188			0.2	%		(55	)		(0.2	%)		(3,383	)		(10.9	%)		(340	)		(0.6	%)		(3,045	)		(4.8	%)
Non catastrophe property losses and ratio (2)	$	15,330			52.2	%	$	19,756			61.9	%	$	37,710			41.0	%	$	53,589			55.4	%	$	10,637			37.8	%	$	7,649			24.5	%	$	23,046			40.5	%	$	22,380			35.7	%

Catastrophe losses and ratio excluding the effect of prior accident year (1)	$	20,060			68.4	%	$	5,996			18.8	%	$	28,367			30.8	%	$	10,080			10.4	%	$	3,651			13.0	%	$	6,228			20.0	%	$	6,075			10.7	%	$	8,307			13.2	%
Effect of prior accident year		(1,828	)		(6.2	%)		(1,297	)		(4.1	%)		(1,619	)		(1.8	%)		(10,286	)		(10.6	%)		69			0.2	%		178			0.6	%		(57	)		(0.1	%)		209			0.3	%
Catastrophe losses and ratio (2)	$	18,232			62.2	%	$	4,699			14.7	%	$	26,748			29.0	%	$	(206	)		(0.2	%)	$	3,720			13.2	%	$	6,406			20.6	%	$	6,018			10.6	%	$	8,516			13.5	%

Total property losses and ratio excluding the effect of prior accident year (1)	$	35,324			120.4	%	$	25,384			79.5	%	$	69,056			75.0	%	$	63,481			65.6	%	$	14,343			51.0	%	$	17,260			55.4	%	$	29,461			51.8	%	$	33,732			53.7	%
Effect of prior accident year		(1,762	)		(6.0	%)		(929	)		(2.9	%)		(4,598	)		(5.0	%)		(10,098	)		(10.4	%)		14			—	%		(3,205	)		(10.3	%)		(397	)		(0.7	%)		(2,836	)		(4.5	%)
Total property losses and ratio (2)	$	33,562			114.4	%	$	24,455			76.6	%	$	64,458			70.0	%	$	53,383			55.2	%	$	14,357			51.0	%	$	14,055			45.1	%	$	29,064			51.1	%	$	30,896			49.2	%

Casualty
Total Casualty losses and ratio excluding the effect of prior accident year (1)	$	1,109			53.9	%	$	1,895			72.4	%	$	3,154			45.1	%	$	4,656			57.6	%
Total casualty losses and ratio excluding the effect of prior accident year ₍₁₎																									$	947			54.0	%	$	1,019			43.1	%	$	1,944			54.0	%	$	2,045			41.5	%
Effect of prior accident year		(241	)		(11.7	%)		(353	)		(13.5	%)		(1,993	)		(28.5	%)		(428	)		(5.3	%)		(2	)		(0.1	%)		(1,383	)		(58.5	%)		(1,228	)		(34.1	%)		(1,752	)		(35.6	%)
Total Casualty losses and ratio (2)	$	868			42.2	%	$	1,542			58.9	%	$	1,161			16.6	%	$	4,228			52.3	%
Total casualty losses and ratio ₍₂₎																									$	945			53.9	%	$	(364	)		(15.4	%)	$	716			19.9	%	$	293			5.9	%

Total
Total net losses and loss adjustment expense and total loss ratio excluding the effect of prior accident year (1)	$	36,433			116.1	%	$	27,279			78.9	%	$	72,210			72.8	%	$	68,137			65.1	%	$	15,290			51.2	%	$	18,279			54.5	%	$	31,405			51.9	%	$	35,777			52.8	%
Effect of prior accident year		(2,003	)		(6.4	%)		(1,282	)		(3.7	%)		(6,591	)		(6.6	%)		(10,526	)		(10.0	%)		12			—	%		(4,588	)		(13.7	%)		(1,625	)		(2.7	%)		(4,588	)		(6.8	%)
Total net losses and loss adjustment expense and total loss ratio (2)	$	34,430			109.7	%	$	25,997			75.2	%	$	65,619			66.2	%	$	57,611			55.1	%	$	15,302			51.2	%	$	13,691			40.8	%	$	29,780			49.2	%	$	31,189			46.0	%

Other income was $0.5 million and $0.4 million for ~~each of~~ the quarters ended ~~September~~June 30, 2021 and 2020, respectively, and ~~2019 and $1.3 million and $1.4~~$0.9 million for both the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019, respectively.~~2020. Other income is primarily comprised of fee income.

	Quarters Ended September 30,				%			Nine Months Ended September 30,				%			Quarters Ended June 30,				%			Six Months Ended June 30,				%
(Dollars in thousands)	2020		2019		Change			2020		2019		Change			2021		2020		Change			2021		2020		Change
Property losses
Non-catastrophe	$	15,264	$	19,388		(21.3	%)	$	40,689	$	53,401		(23.8	%)	$	10,692	$	11,032		(3.1	%)	$	23,386	$	25,425		(8.0	%)
Catastrophe		20,060		5,996	NM				28,367		10,080		181.4	%		3,651		6,228		(41.4	%)		6,075		8,307		(26.9	%)
Property losses		35,324		25,384		39.2	%		69,056		63,481		8.8	%		14,343		17,260		(16.9	%)		29,461		33,732		(12.7	%)
Casualty losses		1,109		1,895		(41.5	%)		3,154		4,656		(32.3	%)		947		1,019		(7.1	%)		1,944		2,045		(4.9	%)
Total accident year losses	$	36,433	$	27,279		33.6	%	$	72,210	$	68,137		6.0	%	$	15,290	$	18,279		(16.4	%)	$	31,405	$	35,777		(12.2	%)

	Quarters Ended September 30,						Point			Nine Months Ended September 30,						Point			Quarters Ended June 30,						Point			Six Months Ended June 30,						Point
	2020			2019			Change			2020			2019			Change			2021			2020			Change			2021			2020			Change
Current accident year loss ratio:
Property
Non-catastrophe		52.0	%		60.7	%		(8.7	)		44.2	%		55.2	%		(11.0	)		38.0	%		35.4	%		2.6			41.1	%		40.5	%		0.6
Catastrophe		68.4	%		18.8	%		49.6			30.8	%		10.4	%		20.4			13.0	%		20.0	%		(7.0	)		10.7	%		13.2	%		(2.5	)
Property loss ratio		120.4	%		79.5	%		40.9			75.0	%		65.6	%		9.4			51.0	%		55.4	%		(4.4	)		51.8	%		53.7	%		(1.9	)
Casualty loss ratio		53.9	%		72.4	%		(18.5	)		45.1	%		57.6	%		(12.5	)		54.0	%		43.1	%		10.9			54.0	%		41.5	%		12.5
Total accident year loss ratio		116.1	%		78.9	%		37.2			72.8	%		65.1	%		7.7			51.2	%		54.5	%		(3.3	)		51.9	%		52.8	%		(0.9	)

The current accident year non-catastrophe property loss ratio ~~improved~~increased by ~~8.7~~2.6 points during the quarter ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019~~2020 reflecting ~~a lower~~higher claims severity in the ~~third~~second accident ~~quarter and calendar~~ quarter compared to last year.

The current accident year non-catastrophe property loss ratio ~~improved~~increased by ~~11.0~~0.6 points during the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019~~2020 due to ~~a lower~~higher claims ~~frequency and~~ severity ~~through nine~~for the first six months compared to last year.

The current accident year catastrophe loss ratio ~~increased~~improved by ~~49.6~~7.0 points during the quarter ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019 due to a higher~~2020 recognizing lower claims frequency ~~and severity for~~in the ~~third~~second accident ~~quarter and calendar~~ quarter compared to last year. ~~The impact from Hurricane Laura on the third calendar quarter loss ratio was 36.2 points which was the main driver of the higher loss ratio in the quarter.~~

The current accident year catastrophe loss ratio ~~increased~~improved by ~~20.4~~2.5 points during the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019~~2020 due to ~~a higher claims frequency and severity for the first nine months compared to last year. The impact from Hurricane Laura on the nine month loss ratio was 11.5 points.~~

~~The current accident year casualty loss ratio improved by 18.5 points during the quarter ended September 30, 2020 as compared to the same period in 2019 reflecting a~~ lower claims frequency and severity ~~in the third accident quarter and lower claims severity in the calendar quarter~~through six months compared to last year.

The current accident year casualty loss ratio ~~improved~~increased by ~~12.5~~10.9 points during the ~~nine months~~quarter ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019~~2020 reflecting higher claims frequency in the second accident quarter compared to last year.

The current accident year casualty loss ratio increased by 12.5 points during the six months ended June 30, 2021 as compared to the same period in 2020 due to ~~a lower~~higher claims ~~severity~~frequency through ~~nine~~six months compared to last year.

The calendar year loss ratio for the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 includes ~~a decrease~~an increase of ~~$2.0~~less than $0.1 million, or ~~6.4~~0.0 percentage points, and a decrease of ~~$6.6~~$1.6 million, or ~~6.6~~2.7 percentage points, respectively, related to reserve development on prior accident years. The calendar year loss ratio for the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2019~~2020 includes a decrease of ~~$1.3~~$4.6 million, or ~~3.7~~13.7 percentage points, and a decrease of ~~$10.5~~$4.6 million, or ~~10.0~~6.8 percentage points, respectively, related to reserve development on prior accident years. Please see Note 8 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.

The expense ratio for the Company’s Specialty Property segment increased ~~0.4~~1.1 points from ~~42.2%~~41.0% for the quarter ended ~~September~~June 30, ~~2019~~2020 to ~~42.6%~~42.1% for the quarter ended ~~September~~June 30, 2021 and increased by 1.1 points from 41.3% for the six months ended June 30, 2020 to 42.4% for the six months ended June 30, 2021. The increase in the expense ratio is primarily due to a reduction in earned premiums. The expense ratio improved by 0.5 points from 42.2% for the nine months ended September 30, 2019 to 41.7% for the nine months ended September 30, 2020 primarily due to a reduction in compensation and travel cost partially offset by the impact of lower earned premiums.

~~COVID-19~~COVID-19’s lasting impacts could result in declines in business and non-payment of premiums that could adversely affect Specialty Property’s business, financial condition, and results of operation.

The components of ~~income and~~ loss from the Company’s Farm, Ranch & Stable segment and corresponding underwriting ratios are as follows:

	Quarters Ended September 30,						%			Nine Months Ended September 30,						%			Quarters Ended June 30,						%			Six Months Ended June 30,						%
(Dollars in thousands)	2020 (1)			2019 (1)			Change			2020 (1)			2019 (1)			Change			2021			2020			Change			2021			2020			Change
Gross written premiums	$	19,443		$	21,410			(9.2	%)	$	64,798		$	65,872			(1.6	%)	$	20,851		$	23,222			(10.2	%)	$	41,853		$	45,355			(7.7	%)

Net written premiums	$	16,961		$	18,294			(7.3	%)	$	56,323		$	55,861			0.8	%	$	17,880		$	20,257			(11.7	%)	$	35,483		$	39,362			(9.9	%)

Net earned premiums	$	19,978		$	18,377			8.7	%	$	57,691		$	52,849			9.2	%	$	17,960		$	19,030			(5.6	%)	$	36,101		$	37,713			(4.3	%)
Other income		35			34			2.9	%		107			96			11.5	%		40			36			11.1	%		74			72			2.8	%
Total revenues		20,013			18,411			8.7	%		57,798			52,945			9.2	%		18,000			19,066			(5.6	%)		36,175			37,785			(4.3	%)

Losses and expenses:
Net losses and loss adjustment expenses		14,649			10,939			33.9	%		37,698			32,203			17.1	%		11,161			13,439			(17.0	%)		22,962			23,049			(0.4	%)
Acquisition costs and other underwriting expenses		7,443			7,776			(4.3	%)		22,687			22,403			1.3	%		7,187			7,606			(5.5	%)		14,173			15,244			(7.0	%)
Underwriting loss	$	(2,079	)	$	(304	)	NM			$	(2,587	)	$	(1,661	)		(55.7	%)	$	(348	)	$	(1,979	)		(82.4	%)	$	(960	)	$	(508	)		89.0	%

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 Farm, Ranch & Stable 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,
	Quarters Ended September 30,												Nine Months Ended September 30,												2021						2020						2021						2020
(Dollars in thousands)	2020						2019						2020						2019						Losses			Loss Ratio			Losses			Loss Ratio			Losses			Loss Ratio			Losses			Loss Ratio
	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)	$	6,292			41.9	%	$	7,542			57.6	%	$	16,106			38.2	%	$	21,943			58.2	%	$	7,457			55.7	%	$	4,737			34.6	%	$	13,424			49.8	%	$	9,814			36.2	%
Effect of prior accident year		(850	)		(5.7	%)		(17	)		(0.1	%)		(2,115	)		(5.0	%)		(448	)		(1.2	%)		(14	)		(0.1	%)		(707	)		(5.2	%)		301			1.1	%		(1,265	)		(4.7	%)
Non catastrophe property losses and ratio (2)	$	5,442			36.2	%	$	7,525			57.5	%	$	13,991			33.2	%	$	21,495			57.0	%	$	7,443			55.6	%	$	4,030			29.4	%	$	13,725			50.9	%	$	8,549			31.5	%

Catastrophe losses and ratio excluding the effect of prior accident year (1)	$	6,970			46.4	%	$	2,044			15.6	%	$	15,488			36.8	%	$	6,769			18.0	%	$	1,372			10.2	%	$	7,117			52.0	%	$	5,499			20.4	%	$	8,518			31.4	%
Effect of prior accident year		(472	)		(3.1	%)		(1,089	)		(8.3	%)		89			0.2	%		(1,784	)		(4.7	%)		10			0.1	%		11			0.1	%		(1,035	)		(3.8	%)		561			2.1	%
Catastrophe losses and ratio (2)	$	6,498			43.3	%	$	955			7.3	%	$	15,577			37.0	%	$	4,985			13.3	%	$	1,382			10.3	%	$	7,128			52.1	%	$	4,464			16.6	%	$	9,079			33.5	%

Total property losses and ratio excluding the effect of prior accident year (1)	$	13,262			88.3	%	$	9,586			73.2	%	$	31,594			75.0	%	$	28,712			76.2	%	$	8,829			65.9	%	$	11,854			86.6	%	$	18,923			70.2	%	$	18,332			67.6	%
Effect of prior accident year		(1,322	)		(8.8	%)		(1,106	)		(8.4	%)		(2,026	)		(4.8	%)		(2,232	)		(5.9	%)		(4	)		—			(696	)		(5.1	%)		(734	)		(2.7	%)		(704	)		(2.6	%)
Total property losses and ratio (2)	$	11,940			79.5	%	$	8,480			64.8	%	$	29,568			70.2	%	$	26,480			70.3	%	$	8,825			65.9	%	$	11,158			81.5	%	$	18,189			67.5	%	$	17,628			65.0	%

Casualty
Total Casualty losses and ratio excluding the effect of prior accident year (1)	$	2,693			54.4	%	$	2,503			47.4	%	$	8,213			52.7	%	$	7,462			49.2	%
Total casualty losses and ratio excluding the effect of prior accident year ₍₁₎																									$	2,439			53.4	%	$	2,388			44.7	%	$	4,891			53.5	%	$	5,520			52.0	%
Effect of prior accident year		16			0.3	%		(44	)		(0.8	%)		(83	)		(0.5	%)		(1,739	)		(11.5	%)		(103	)		(2.3	%)		(107	)		(2.0	%)		(118	)		(1.3	%)		(99	)		(0.9	%)
Total Casualty losses and ratio (2)	$	2,709			54.7	%	$	2,459			46.6	%	$	8,130			52.2	%	$	5,723			37.7	%
Total casualty losses and ratio ₍₂₎																									$	2,336			51.1	%	$	2,281			42.7	%	$	4,773			52.2	%	$	5,421			51.1	%

Total
Total net losses and loss adjustment expense and total loss ratio excluding the effect of prior accident year (1)	$	15,955			79.9	%	$	12,089			65.8	%	$	39,807			69.0	%	$	36,174			68.4	%	$	11,268			62.7	%	$	14,242			74.8	%	$	23,814			66.0	%	$	23,852			63.2	%
Effect of prior accident year		(1,306	)		(6.5	%)		(1,150	)		(6.3	%)		(2,109	)		(3.7	%)		(3,971	)		(7.5	%)		(107	)		(0.6	%)		(803	)		(4.2	%)		(852	)		(2.4	%)		(803	)		(2.1	%)
Total net losses and loss adjustment expense and total loss ratio (2)	$	14,649			73.4	%	$	10,939			59.5	%	$	37,698			65.3	%	$	32,203			60.9	%	$	11,161			62.1	%	$	13,439			70.6	%	$	22,962			63.6	%	$	23,049			61.1	%

Other income was less than $0.1 million for each of the quarters ended ~~September~~June 30, ~~2020~~2021 and ~~2019~~2020 and $0.1 million for ~~each of~~both the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019.~~2020. Other income is primarily comprised of fee income.

	Quarters Ended September 30,				%			Nine Months Ended September 30,				%			Quarters Ended June 30,				%			Six Months Ended June 30,				%
(Dollars in thousands)	2020		2019		Change			2020		2019		Change			2021		2020		Change			2021		2020		Change
Property losses
Non-catastrophe	$	6,292	$	7,542		(16.6	%)	$	16,106	$	21,943		(26.6	%)	$	7,457	$	4,737		57.4	%	$	13,424	$	9,814		36.8	%
Catastrophe		6,970		2,044	NM				15,488		6,769		128.8	%		1,372		7,117		(80.7	%)		5,499		8,518		(35.4	%)
Property losses		13,262		9,586		38.3	%		31,594		28,712		10.0	%		8,829		11,854		(25.5	%)		18,923		18,332		3.2	%
Casualty losses		2,693		2,503		7.6	%		8,213		7,462		10.1	%		2,439		2,388		2.1	%		4,891		5,520		(11.4	%)
Total accident year losses	$	15,955	$	12,089		32.0	%	$	39,807	$	36,174		10.0	%	$	11,268	$	14,242		(20.9	%)	$	23,814	$	23,852		(0.2	%)

	Quarters Ended September 30,						Point			Nine Months Ended September 30,						Point			Quarters Ended June 30,						Point			Six Months Ended June 30,						Point
	2020			2019			Change			2020			2019			Change			2021			2020			Change			2021			2020			Change
Current accident year loss ratio:
Property
Non-catastrophe		41.9	%		57.6	%		(15.7	)		38.2	%		58.2	%		(20.0	)		55.7	%		34.6	%		21.1			49.8	%		36.2	%		13.6
Catastrophe		46.4	%		15.6	%		30.8			36.8	%		18.0	%		18.8			10.2	%		52.0	%		(41.8	)		20.4	%		31.4	%		(11.0	)
Property loss ratio		88.3	%		73.2	%		15.1			75.0	%		76.2	%		(1.2	)		65.9	%		86.6	%		(20.7	)		70.2	%		67.6	%		2.6
Casualty loss ratio		54.4	%		47.4	%		7.0			52.7	%		49.2	%		3.5			53.4	%		44.7	%		8.7			53.5	%		52.0	%		1.5
Total accident year loss ratio		79.9	%		65.8	%		14.1			69.0	%		68.4	%		0.6			62.7	%		74.8	%		(12.1	)		66.0	%		63.2	%		2.8

The current accident year non-catastrophe property loss ratio ~~improved~~increased by ~~15.7~~21.1 points during the quarter ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019 due to a lower claims frequency for the third accident quarter and lower~~2020 reflecting higher claims frequency and severity in the ~~calendar~~second accident quarter compared to last year.

The current accident year non-catastrophe property loss ratio ~~improved~~increased by ~~20.0~~13.6 points during the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019 reflecting a lower~~2020 due to higher claims frequency and severity ~~for the first nine~~through six months compared to last year.

The current accident year catastrophe loss ratio ~~increased~~improved by ~~30.8~~41.8 points during the quarter ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019 reflecting a higher~~2020 recognizing lower claims frequency and severity ~~for~~in the ~~third~~second accident quarter ~~and calendar quarter~~ compared to ~~last year. The impact from the Midwest Derecho on the third calendar quarter loss ratio was 30.1 points which accounted for almost the entire increase from~~ last year.

The current accident year catastrophe loss ratio ~~increased~~improved by ~~18.8~~11.0 points during the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019 reflecting a higher~~2020 due to lower claims frequency and severity through ~~nine~~six months compared to last year. ~~The impact from the Midwest Derecho on the nine month loss ratio was 10.7 points.~~

The current accident year casualty loss ratio increased by ~~7.0~~8.7 points during the quarter ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019 due to a~~2020 reflecting higher claims ~~severity for~~frequency in the ~~third~~second accident ~~quarter and calendar~~ quarter compared to last year.

The current accident year casualty loss ratio increased by ~~3.5~~1.5 points during the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019. The increase in the loss ratio reflects a~~2020 due to higher claims ~~severity~~frequency through ~~nine~~six months compared to last year.

The calendar year loss ratio for the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 includes a decrease of ~~$1.3~~$0.1 million, or ~~6.5~~0.6 percentage points, and a decrease of ~~$2.1~~$0.9 million, or ~~3.7~~2.4 percentage points, respectively, related to reserve development on prior accident years. The calendar year loss ratio for the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2019~~2020 includes a decrease of ~~$1.2~~$0.8 million, or ~~6.3~~4.2 percentage points, and a decrease of ~~$4.0~~$0.8 million, or ~~7.5~~2.1 percentage points, respectively,

related to reserve development on prior accident years. Please see Note 8 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.

The expense ratio for the Company’s Farm, Ranch & Stable Segment ~~improved 5.0 points from 42.3%~~was 40.0% for both the quarter ended ~~September~~June 30, ~~2019 to 37.3%~~2021 and June 30, 2020. The expense ratio improved 1.1 points from 40.4% for the ~~quarter~~six months ended ~~September~~June 30, 2020 to 39.3% for the six months ended June 30, 2021. The improvement in the expense ratio is primarily due to a reduction of commission rate partially driven by a change in ~~compensation and travel cost~~agent distribution as well as higher earned premiums. The expense ratio improved 3.1 points from 42.4% for the nine months ended September 30, 2019 to 39.3% for the nine months ended September 30, 2020 primarily due to higher earned premiums.a reduction in compensation, travel, and advertising expenses.

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 Farm, Ranch & Stable policies, or other conditions included in these policies that would otherwise preclude coverage.

~~COVID-19~~COVID-19’s lasting impacts could result in declines in business, non-payment of premiums, and increases in claims that could adversely affect Farm, Ranch & Stable’s business, financial condition, and results of operation.

The components of income from the Company’s Reinsurance Operations segment and corresponding underwriting ratios are as follows:

	Quarters Ended September 30,					%			Nine Months Ended September 30,					%			Quarters Ended June 30,				%			Six Months Ended June 30,						%
(Dollars in thousands)	2020 (1)		2019 (1)			Change			2020 (1)		2019 (1)			Change			2021 (1)		2020 (1)		Change			2021 (1)			2020 (1)			Change
Gross written premiums	$	14,605	$	19,981			(26.9	%)	$	48,174	$	69,589			(30.8	%)	$	24,692	$	16,052		53.8	%	$	46,558		$	33,569			38.7	%

Net written premiums	$	14,605	$	19,989			(26.9	%)	$	48,174	$	69,590			(30.8	%)	$	24,692	$	16,052		53.8	%	$	46,558		$	33,569			38.7	%

Net earned premiums	$	15,049	$	19,512			(22.9	%)	$	58,450	$	52,798			10.7	%	$	21,410	$	19,546		9.5	%	$	40,228		$	43,401			(7.3	%)
Other income (loss)		112		(235	)		(147.7	%)		96		(228	)		(142.1	%)		14		279		(95.0	%)		(42	)		(16	)		162.5	%
Total revenues		15,161		19,277			(21.4	%)		58,546		52,570			11.4	%		21,424		19,825		8.1	%		40,186			43,385			(7.4	%)

Losses and expenses:
Net losses and loss adjustment expenses		5,190		9,258			(43.9	%)		29,584		30,434			(2.8	%)		12,657		11,290		12.1	%		23,926			24,394			(1.9	%)
Acquisition costs and other underwriting expenses		5,518		6,199			(11.0	%)		19,762		16,555			19.4	%		7,814		5,695		37.2	%		14,376			14,244			0.9	%
Underwriting income	$	4,453	$	3,820			16.6	%	$	9,200	$	5,581			64.8	%	$	953	$	2,840		(66.4	%)	$	1,884		$	4,747			(60.3	%)

	Quarters Ended September 30,						Point			Nine Months Ended September 30,						Point			Quarters Ended June 30,						Point			Six Months Ended June 30,						Point
	2020			2019			Change			2020			2019			Change			2021			2020			Change			2021			2020			Change
Underwriting Ratios:
Loss ratio:
Current accident year (2)		66.8	%		44.0	%		22.8			59.4	%		51.0	%		8.4			60.7	%		56.1	%		4.6			61.9	%		56.8	%		5.1
Prior accident year		(32.3	%)		3.4	%		(35.7	)		(8.8	%)		6.7	%		(15.5	)		(1.6	%)		1.7	%		(3.3	)		(2.4	%)		(0.6	%)		(1.8	)
Calendar year loss ratio (3)		34.5	%		47.4	%		(12.9	)		50.6	%		57.7	%		(7.1	)		59.1	%		57.8	%		1.3			59.5	%		56.2	%		3.3
Expense ratio		36.7	%		31.8	%		4.9			33.8	%		31.4	%		2.4			36.5	%		29.1	%		7.4			35.7	%		32.8	%		2.9
Combined ratio		71.2	%		79.2	%		(8.0	)		84.4	%		89.1	%		(4.7	)		95.6	%		86.9	%		8.7			95.2	%		89.0	%		6.2

The table above includes a reconciliation of the current accident year loss ratio, which is a non-GAAP ratio, to its calendar year loss ratio, which is its most directly comparable GAAP ratio. The Company believes the non-GAAP ratio is useful to investors when evaluating the Company's underwriting performance as trends in the Company's Reinsurance Operations may be obscured by prior accident year adjustments. This non-GAAP ratio 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.

The Company recognized other income of less than $0.1 million ~~in both~~and $0.3 million during the ~~quarter~~quarters and ~~nine~~six months ended ~~September~~June 30, 2021 and 2020, respectively, and recognized a loss of ~~$0.2~~less than $0.1 million infor both the ~~quarter and nine~~six months ended ~~September~~June 30, ~~2019.~~2021 and 2020. Other ~~income~~loss is comprised of foreign exchange gains and losses.

The current accident year loss ratio increased by ~~22.8~~4.6 points during the quarter ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019.~~2020. The increase in the current accident year ~~loss ratio increased for property lines compared to the same period last year. Also, the increase in the total~~ loss ratio reflects a mix of business shift to more casualty premium which has a higher expected loss ratio than property. The casualty net earned premium was 84% of the total Reinsurance Operations earned premium compared to 54% in 2020.

The current accident year loss ratio increased by ~~8.4~~5.1 points during the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 as compared to the same period in ~~2019 due to an~~2020. The increase in the ~~property non-catastrophe~~current accident year loss ratio ~~and the change in~~reflects a mix of business ~~as there is~~shift to more casualty premium ~~being written~~ which has a higher expected loss ratio than property. The casualty net earned premium was 87% of the total Reinsurance Operations earned premium compared to 56% in 2020.

The calendar year loss ratio for the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 includes a decrease of ~~$4.9~~$0.3 million, or ~~32.3~~1.6 percentage points, and a decrease of ~~$5.1~~$1.0 million, or ~~8.8~~2.4 percentage points, respectively, related to reserve development on prior accident years. The calendar year loss ratio for the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2019~~2020 includes an increase of ~~$0.7~~$0.3 million, or ~~3.4~~1.7 percentage points, and ~~an increase~~a decrease of ~~$3.5~~$0.3 million, or ~~6.7~~0.6 percentage points, respectively, related to reserve development on prior accident years. Please see Note 8 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.

The expense ratio for the Company’s Reinsurance Operations increased by ~~4.9~~7.4 points from ~~31.8%~~29.1% for the quarter ended ~~September~~June 30, ~~2019~~2020 to ~~36.7%~~36.5% for the quarter ended ~~September~~June 30, ~~2020~~2021 and increased by ~~2.4~~2.9 points from ~~31.4%~~32.8% for the ~~nine~~six months ended ~~September~~June 30, ~~2019~~2020 to ~~33.8%~~35.7% for the ~~nine~~six months ended ~~September~~June 30, ~~2020.~~2021. The increase in the expense ratio is primarily due to ~~an increase in commission expense resulting from~~ a change in business ~~mix.~~mix as well as an increase in profit commissions.

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

The Company’s fixed income portfolio, excluding cash, continues to maintain high quality with an ~~AA-~~A+ average rating and a duration of ~~4.2~~4.5 years.

	Quarters Ended September 30,						%			Nine Months Ended September 30,						%			Quarters Ended June 30,						%			Six Months Ended June 30,						%
(Dollars in thousands)	2020			2019			Change			2020			2019			Change			2021			2020			Change			2021			2020			Change
Gross investment income (loss) (1)	$	12,556		$	12,162			3.2	%	$	21,662		$	34,712			(37.6	%)	$	11,268		$	(2,012	)		660.0	%	$	21,817		$	9,106			139.6	%
Investment expenses		(810	)		(814	)		(0.5	%)		(2,146	)		(2,319	)		(7.5	%)		(635	)		(347	)		83.0	%		(1,348	)		(1,336	)		0.9	%
Net investment income	$	11,746		$	11,348			3.5	%	$	19,516		$	32,393			(39.8	%)	$	10,633		$	(2,359	)		550.7	%	$	20,469		$	7,770			163.4	%

Gross investment income (loss) increased by ~~3.2%~~660.0% and 139.6% for the quarter and ~~decreased 37.6% for the nine~~six months ended ~~September~~June 30, ~~2020,~~2021, respectively, as compared to the same period in ~~2019.~~2020. The increase ~~for the quarter~~ was primarily due to increased returns from alternative investments offset by a decrease in ~~income related to~~yield within the fixed maturities portfolio. The decrease for nine months ended was primarily due to poor returns from alternative investments during the early part of 2020. Alternative investments are booked on a one quarter lag due to the limited partnerships typically not reporting results until one to three months following the end of the reporting period.

Investment expenses ~~decreased~~increased by ~~0.5%~~83.0% and ~~7.5%~~0.9% for the quarter ~~ended~~ and ~~nine~~six months ended ~~September~~June 30, ~~2020,~~2021, respectively, as compared to the same period in ~~2019~~2020 due to including investment expenses related to mutual funds as a direct offset to investment ~~income.~~income during the prior year. The Company divested its investments in mutual funds during January 2021.

At ~~September~~June 30, ~~2020,~~2021, the Company held agency mortgage-backed securities with a market value of ~~$289.7~~$207.7 million. Excluding the agency mortgage-backed securities, the average duration of the Company’s fixed maturities portfolio was 4.7 years as of June 30, 2021, compared with 4.8 years as of ~~September~~June 30, ~~2020, compared with 3.8 years as of September 30, 2019.~~2020. Including cash and short-term investments, the average duration of the Company’s fixed maturities portfolio, excluding agency mortgage-backed securities, was ~~4.6~~4.5 years as of ~~September~~June 30, 2021, and June 30, 2020, ~~compared with 3.5 years as of September 30, 2019.~~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 ~~2.4%~~2.3% as of ~~September~~June 30, ~~2020,~~2021, compared to ~~3.0%~~2.5% as of ~~September~~June 30, ~~2019.~~2020. The embedded book yield on the ~~$62.0~~$64.5 million of taxable municipal bonds in the Company’s portfolio, was 3.0% at ~~September~~June 30, ~~2020,~~2021, compared to an embedded book yield of ~~3.3%~~3.1% on the Company’s taxable municipal bonds of ~~$55.6~~$63.8 million at ~~September~~June 30, ~~2019.~~2020.

The components of net realized investment gains (losses) for the quarters and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019~~2020 were as follows:

	Quarters Ended September 30,					Nine Months Ended September 30,						Quarters Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2020		2019			2020			2019			2021			2020			2021			2020
Equity securities	$	4,887	$	(1,465	)	$	(17,201	)	$	17,860		$	3,395		$	27,894		$	7,763		$	(22,088	)
Fixed maturities		2,276		946			17,028			4,731			453			12,820			(706	)		14,752
Derivatives		160		(2,171	)		(22,159	)		(9,404	)		(15	)		(2,207	)		595			(22,319	)
Other than temporary impairment losses		—		—			—			(1,897	)
Net realized investment gains (losses)	$	7,323	$	(2,690	)	$	(22,332	)	$	11,290		$	3,833		$	38,507		$	7,652		$	(29,655	)

Net realized investment gains (losses) for the quarter ended and nine months ended September 30, 2020 were primarily due to the impact of changes in fair value on equity securities and derivatives due to the recent disruption in the global financial markets as a result of COVID-19.

See Note 3 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 ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019.~~2020.

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 ~~$21.2~~$6.3 million and ~~$3.9~~$8.6 million during the quarters ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and ~~$34.0~~$10.6 million and ~~$11.7~~$12.8 million during the ~~nine~~six months ended ~~September~~June 30, 2021 and 2020, ~~and 2019,~~ respectively. ~~The increase~~Corporate expenses were higher in ~~corporate expenses is primarily~~2020 due to incurring ~~$10.0 million in advisory~~additional professional fees related to the ~~redomestication as well as an increase in legal and professional fees due to the~~ redomestication. ~~See Note 11 of the notes to the consolidated financial statements in Item 1 of Part I of this report for additional information on the redomestication fee.~~

Interest expense decreased ~~27.9%~~42.8% and ~~12.5%~~44.8% during the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020,~~2021, respectively, as compared to the same period in ~~2019~~2020 primarily due to ~~a reduction in the Fed Funds effective interest rate in March, 2020 as well as~~ the redemption of the ~~2045~~Company’s 7.75% Subordinated Notes due in 2045and the repayment of the margin borrowing facility ~~during the quarter ended September 30,~~in August, 2020.

Income tax ~~benefit~~expense was ~~$3.2~~$0.8 million for the quarter ended ~~September~~June 30, ~~2020~~2021 compared with an income tax expense of $7.0 million for the quarter ended June 30, 2020. The reduction is driven by lower pre-tax income for the Company’s U.S. Subsidiaries.

Income tax expense was $0.6 million for the six months ended June 30, 2021 compared with an income tax benefit of ~~$0.3~~$5.0 million for the ~~quarter~~six months ended ~~September~~June 30, ~~2019.~~2020. The increase in the income tax benefit ~~was~~is primarily due to ~~higher pre-tax loss for~~investment losses incurred by the Company’s U.S. subsidiaries ~~for~~during the ~~quarter ended September 30, 2020~~as compared to the same period in 2019 and the change in tax status which is the income tax benefit recognized on net insurance liabilities that were redomiciled from Bermuda at 0% tax rate to the United States at a 21% tax rate.

~~Income tax benefit was $8.2 million for the nine~~six months ended ~~September~~June 30, 2020 compared with an income tax expense of $5.2 million for the nine months ended September 30, 2019. The increase in income tax benefit was primarily due to a pre-tax loss for the Company’s U.S. subsidiaries for the nine months ended September 30, 2020as compared to a gain in the same period in 2019 and the change in tax status which is the income tax benefit recognized on net insurance liabilities that were redomiciled from Bermuda at 0% tax rate to the United States at a 21% tax rate.2020.

See Note 7 of the notes to the consolidated financial statements in Item 1 of Part I of this report for a comparison of income tax between periods.

The factors described above resulted in a net ~~loss~~income of ~~$15.2~~$6.4 million and net income of ~~$6.7~~$37.6 million for the quarters ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and a net ~~loss~~income of ~~$22.2~~$11.9 million and net ~~income~~loss of ~~$41.0~~$7.0 million for the ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively.

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’s~~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, ~~dividend payments~~distributions to shareholders, and share repurchases. In order to meet their short term and long term needs, ~~the Company’s~~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 ~~dividend~~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 ~~September~~June 30, ~~2020,~~2021, the Company also had future funding commitments of $31.2 million related to ~~investments. However, the related~~ 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’s~~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 ~~within the Insurance Operations~~ 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 ~~2019~~2020 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 1820 of the notes to the consolidated financial statements in Item 8 of Part II of the Company’s ~~2019~~2020 Annual Report on Form 10-K for further information on dividend limitations related to the Insurance Companies. The Insurance Companies did not declare or pay any dividends during the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020.~~

Global Indemnity Reinsurance was prohibited, without the approval of the Bermuda Monetary Authority (“BMA”), from reducing by 15% or more its total statutory capital or 25% or more of its total statutory capital and surplus as set out in its previous year’s statutory financial statements, and any application for such approval must include such information as the BMA may require. See “Regulation—Bermuda Insurance Regulation” in Item 1 of Part I of the Company’s 2019 Annual Report on Form 10-K. In June, 2020, the Board of Directors of Global Indemnity Reinsurance declared and paid a dividend of $226 million to its parent company, Global Indemnity Limited. On August 26, 2020, Global Indemnity Reinsurance merged into Penn Patriot Insurance Company.2021.

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 ~~dividend~~distribution policy, ~~established in 2017,~~ funds may also be used in the future to pay ~~dividends~~distributions to shareholders of the Company.

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

Net cash provided by operating activities was ~~$33.9~~$47.5 million and ~~$45.9~~$52.4 million for the ~~nine~~quarters and six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. The decrease in operating cash flows of approximately ~~$12.0~~$4.9 million from the prior year was primarily a net result of the following items:

	Nine Months Ended September 30,									Six Months Ended June 30,
(Dollars in thousands)	2020			2019			Change			2021			2020			Change
Net premiums collected	$	418,598		$	417,803		$	795		$	308,353		$	285,317		$	23,036
Net losses paid		(231,038	)		(220,924	)		(10,114	)		(148,453	)		(131,203	)		(17,250	)
Underwriting and corporate expenses		(183,883	)		(174,526	)		(9,357	)		(126,144	)		(120,897	)		(5,247	)
Net investment income		33,428			38,700			(5,272	)		18,952			23,138			(4,186	)
Net federal income taxes recovered (paid)		10,859			(235	)		11,094
Net federal income taxes recovered											—			5,478			(5,478	)
Interest paid		(14,028	)		(14,888	)		860			(5,220	)		(9,423	)		4,203
Net cash provided by (used for) operating activities	$	33,936		$	45,930		$	(11,994	)
Net cash provided by operating activities										$	47,488		$	52,410		$	(4,922	)

See the consolidated statements of cash flows in the consolidated financial statements in Item 1 of Part I of this report for details concerning the Company’s investing and financing activities.

The Company’s liquidity could be negatively impacted by the cancellation, delays, or non-payment of premiums related to the ongoing COVID-19 ~~pandemic.~~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 ~~the~~ 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.

During ~~2020,~~2021, the Board of Directors ~~approved a dividend payment of $0.25 per common share to all shareholders of record on the close of business on March 24, 2020 and June 23, 2020 and~~ approved a distribution payment of $0.25 per common share to all shareholders of record on the close of business on ~~September 25, 2020. Dividends/distributions~~March 22, 2021 and June 21, 2021. Distributions paid to common shareholders were ~~$10.7~~$7.2 million during the ~~nine~~six months ended ~~September~~June 30, ~~2020.~~

~~In August 2020,~~$0.2 million were paid to Global Indemnity Group, LLC’s preferred shareholder during the Company redeemed the entire $100 million in aggregate principal amount of the outstanding 2045 Notes plus accrued and unpaid interest on the 2045 Notes redeemed to, but not including, the Redemption Date of August 15, 2020.

~~The Company repaid all of the outstanding debt on the margin borrowing facility in August, 2020.~~ six months ended June 30, 2021.

Other than the items discussed in the preceding paragraphs, there have been no material changes to the Company’s liquidity during the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020.~~2021. Please see Item 7 of Part II in the Company’s ~~2019~~2020 Annual Report on Form 10-K for information regarding the Company’s liquidity.

In connection with the Company’s redomestication to the United States, actions were taken to simplify the Company’s current corporate structure. As a result, a series of intercompany capital contributions and distributions took place between many of the Company’s subsidiaries. Several of the Company’s subsidiaries merged into new or existing companies. This included, but was not limited to, the merger of Global Indemnity Reinsurance into Penn Patriot Insurance Company (“Penn Patriot”) with Penn Patriot surviving as well as the amalgamation of Global Indemnity Limited with a newly formed company, New Cayco. The surviving company, New Cayco, merged into the newly formed parent company, Global Indemnity Group, LLC. In addition, $541.4 million of intercompany debt between Global Indemnity Limited and Global Indemnity Reinsurance was cancelled. The cancellation of this debt had no impact to the consolidated results of the Company.

~~In June, 2020, Global Indemnity Reinsurance declared and paid a dividend of $226.0 million to its parent, Global Indemnity Limited.~~

On June 16, 2020, GBLI Holdings, LLC entered into a loan agreement with Global Indemnity Reinsurance. Under the terms of the loan agreement, GBLI Holdings, LLC agreed to lend $40.0 million to Global Indemnity Reinsurance by transferring cash and / or securities to Global Indemnity Reinsurance. This loan bears interest at a rate of 0.18% and is due on June 16, 2023. This loan was fully repaid at September 30, 2020.

On August 28, 2020, Global Indemnity Investments, Inc. entered into a promissory note with Global Indemnity Group, LLC for the principal amount of $11.3 million. This note was issued in conjunction with Global Indemnity Investment Inc.’s purchase of limited liability partnership interests from Global Indemnity Group, LLC. The note bears interest at a rate of 1.47% and is due on August 28, 2030. The outstanding balance on the note was $11.3 million at September 30, 2030.

~~Other than the items discussed in the preceding paragraphs, there~~There have been no material changes to the Company’s capital resources during the quarter and ~~nine~~six months ended ~~September~~June 30, ~~2020.~~2021. Please see Item 7 of Part II in the Company’s ~~2019~~2020 Annual Report on Form 10-K for information regarding the Company’s capital resources.

The Company is providing the following information in compliance with Rule 13-01 of Regulation S-X, “Financial Disclosures about Guarantors and Issuers of Guaranteed Securities” with respect to the Company’s 7.875% Subordinated Notes due in 2047 (“2047 Notes”). Global Indemnity Group, LLC (parent co-obligor) and GBLI Holdings, LLC (subsidiary co-obligor) are co-obligors of the 2047 Notes. GBLI Holdings, LLC is a wholly-owned indirect subsidiary of Global Indemnity Group, LLC. The 2047 Notes are subordinated unsecured obligations and rank (i) senior to the companies’ existing and future capital stock, (ii) senior in right of payment to the companies’ future junior subordinated debt, (iii) equally in right of payment with any existing unsecured, subordinated debt that the companies have issued or may issue in the future that ranks equally with the 2047 Notes, and (iv) subordinate in right of payment to any of the companies’ future senior debt. In addition, the 2047 Notes are structurally subordinated to all existing and future indebtedness, liabilities and other obligations of Global Indemnity Group, LLC’s subsidiaries, except for GBLI Holdings, LLC.

GBLI Holdings, LLC is a subordinated co-obligor with respect to the 2047 Notes with the same obligations and duties as Global Indemnity Group, LLC under the Indenture (including the due and punctual performance and observance of all of the covenants and conditions to be performed by Global Indemnity Group, LLC, including, without limitation, the obligation to pay the principal of, and interest on, the 2047 Notes when due whether at maturity, by acceleration, redemption or otherwise), and with the same rights, benefits and privileges of Global Indemnity Group, LLC thereunder. Notwithstanding the foregoing, GBLI Holdings, LLC's obligations (including the obligation to pay the principal of and interest in respect of the 2047 Notes) are subject to subordination to all monetary obligations or liabilities of GBLI Holdings, LLC owing to any regulated reinsurance or insurance company that is a direct or indirect subsidiary of Global Indemnity Group, LLC, in addition to indebtedness of GBLI Holdings, LLC for borrowed money. If Global Indemnity Group, LLC pays any amount with respect to the subordinated note obligations, Global Indemnity Group, LLC is entitled to be reimbursed by GBLI Holdings, LLC within 10 business days after a demand is made to GBLI Holding, LLC by Global Indemnity Group, LLC.

The following tables present summarized financial information for Global Indemnity Group, LLC (Parent co-obligor) and GBLI Holdings, LLC (Subsidiary co-obligor) on a combined basis after transactions and balances within the combined entities have been eliminated.

The following table presents the summarized balance sheet information as of June 30, 2021 and December 31, 2020.

The following table presents the summarized statement of operations information for the six months ended June 30, 2021.

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 consequences of identified transactions or natural disasters, and statements about the future performance, operations, products and services of the companies.

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 ~~2019~~2020 Annual Report on Form 10-K ~~as supplemented by the Company’s Quarterly Report on Form 10Q for the quarterly period ending March 31, 2020 and the Company’s definitive proxy statement on Schedule 14A filed July 23, 2020,~~ 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.

For the quarter ending ~~September~~June 30, ~~2020,~~2021, global equities rose approximately ~~8.3%~~7.6% with U.S. equities outperforming, returning ~~slightly more at~~ approximately ~~8.9%~~8.6%. USU.S. fixed income ~~rose~~returned approximately ~~0.6%~~2.9% as ~~spreads in all sectors compressed and~~10 year treasury rates declined during the ~~treasury curve modestly steepened. Economic releases~~quarter to end at 1.45%. Inflation ticked up globally, though the Federal Reserve continued to ~~be above expectations but~~emphasize the transitory nature of inflation. U.S. inflation in particular experienced a faster-than-expected acceleration over the quarter. Vaccinations continued to advance globally and case counts generally moved lower, ~~than during~~although the ~~summer, leaving overall~~spread of a new variant with higher infectiousness underscored a key risk for the economic activity below beginning-of-year levels. The market will continue to focus on the massive amount of fiscal stimulus and monetary policy actions, but will need to monitor the recent upturn in new COVID-19 infections and the volatility that may be introduced with upcoming U.S. elections.recovery.

The Company’s investment grade fixed income portfolio continues to maintain high quality with an ~~AA-~~A+ average rating and a duration of ~~4.2~~4.5 years. Portfolio purchases were focused within US Treasury, MBS, and ~~US Treasury~~investment grade credit securities. These purchases were funded primarily through cash inflows, sales of ~~CMBS, MBS, and~~ US Treasury and MBS securities, as well as maturities and paydowns. During the ~~third~~second quarter, the portfolio’s allocation to ~~ABS, MBS, and~~ investment grade credit increased, while the portfolio’s exposure to ~~CMO and~~ US Treasuries decreased. There have been no other material changes to the Company’s market risk since December 31, ~~2019.~~2020. Please see Item 7A of Part II in the Company’s ~~2019~~2020 Annual Report on Form 10-K for information regarding the Company’s market risk.

The Company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to ensure that information required to be disclosed in the Company’s reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of ~~September~~June 30, ~~2020.~~2021. Based upon that evaluation, and subject to the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of ~~September~~June 30, ~~2020,~~2021, the design and operation of the Company’s disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

There have been no changes in the Company’s internal controls over financial reporting that occurred during the quarter ended ~~September~~June 30, ~~2020~~2021 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

The Company is, from time to time, involved in various legal proceedings in the ordinary course of business. The Company maintains insurance and reinsurance coverage for risks in amounts that it considers adequate. However, there can be no assurance that the insurance and reinsurance coverage that the Company maintains is sufficient or will be available in adequate amounts or at a reasonable cost. The Company does not believe that the resolution of any currently pending legal proceedings, either individually or taken as a whole, will have a material adverse effect on its business, results of operations, cash flows, or financial condition.

The Company’s results of operations and financial condition are subject to numerous risks and uncertainties described in Item 1A of Part I in the Company’s ~~2019~~2020 Annual Report on Form 10-K, filed with the SEC on March 6, 2020, as supplemented by the Company’s Quarterly Report on Form 10Q for the quarterly period ending March 31, 2020 filed on May 8, 2020, and the Company’s definitive proxy statement on Schedule 14A filed July 23, 2020.12, 2021. The risk factors identified therein have not materially changed except as follows:

The Company may be subject to ~~U.S. federal income tax and state and local income~~adverse foreign taxes ~~on their share of the Company’s taxable income, regardless of whether they receive any cash dividends.~~related to its historic non-US subsidiaries.

Although the Company and its subsidiaries have eliminated most of their historic foreign subsidiaries, the statute of limitations remains open in certain foreign jurisdictions, and it is not required to register as an investment company under the Investment Company Act and 90% of the Company’s gross income for each taxable year constitutes “qualifying income” within the meaning of the Internal Revenue Code on a continuing basis,possible that the Company currently expects that it will be treated, for U.S. federal income tax purposes, as a partnership and not as an association or publicly traded partnership taxable as a corporation. Holders of the Company’s common shares willcould be subject to ~~U.S. federal, state, and local taxation on their allocable share~~materially adverse foreign taxes with respect to its historic operations. Such adverse foreign taxes could also potentially arise as a result of the Company’s items of income, gain, loss, deduction and credit, for each of the Company’s taxable years ending with or within their taxable year, regardless of whether they receive cash dividends. Such holders may not receive cash dividends equal to their allocable share of the Company’s net taxable income or even the tax liability that results from that income. The characterization of an item of our income, gain, loss, deduction or credit generally will be determined at the Company’s (rather than at the holder’s) level.

The IRS Schedules K-1 the Company will provide holders of the Company’s common shares will be more complicated than the IRS Forms 1099 provided by corporations to their stockholders, and holders of the Company’s common shares may be required to request an extension of time to file their tax returns.

Holders of the Company’s common shares will be required to take into account their allocable share of the Company’s items of income, gain, loss, deduction and other items of the partnership for the Company’s taxable year ending within or with their taxable year, regardless of whether they received cash dividends. The Company has agreed to furnish holders of the common shares, as soon as reasonably practicable after the close of each calendar year, with tax information (including IRS Schedules K-1), which describes their allocable share of gross ordinary income for the Company’s preceding taxable year. However, it may require longer than 90 days after the end of the Company’s calendar year to obtain the requisite information so that IRS Schedules K-1 may be prepared by the Company. Consequently, holders of the Company’s common shares who are U.S. taxpayers should anticipate the need to file annually with the IRS (and certain states) a request for an extension past April 15 or the otherwise applicable due date of their income tax return for the taxable year.

In addition, each holder of the Company’s common shares will be required to report for all tax purposes consistently with the information provided by the Company for the taxable year. Because holders will be required to report their allocable share of gross ordinary income, tax reporting for holders of the Company’s common shares will be more complicated than for shareholders of a regular corporation.

Except as disclosed in the Company’s current report on Form 8-K filed with the SEC on August 28, 2020, there were no sales of unregistered equity securities during the quarter ended September 30, 2020.

The Company’s Share Incentive Plan allows employees to surrender the Company’s class A common shares as payment for the tax liability incurred upon the vesting of restricted stock. There were ~~396~~7,100 shares surrendered by the Company’s employees during the quarter ended ~~September~~June 30, ~~2020.~~2021. All class A common shares surrendered by the Company’s employees are held as treasury stock and recorded at cost until formally retired. ~~All treasury stock existing as of August 28, 2020 was retired as part of the redomestication transaction.~~

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Large accelerated filer	☐;	Accelerated filer	☒;

Non-accelerated filer	☐;	Smaller reporting company	☐;

Emerging growth company	☐

			Page
	PART I – FINANCIAL INFORMATION

Item 1.		Financial Statements:	3

		Consolidated Balance Sheets As of ~~September~~June 30, ~~2020~~2021 (Unaudited) and December 31, ~~2019~~2020	3

		Consolidated Statements of Operations Quarters and ~~Nine~~Six Months Ended ~~September~~June 30, ~~2020~~2021 (Unaudited) and ~~September~~June 30, ~~2019~~2020 (Unaudited)	4

		Consolidated Statements of Comprehensive Income (Loss) Quarters and ~~Nine~~Six Months Ended ~~September~~June 30, ~~2020~~2021 (Unaudited) and ~~September~~June 30, ~~2019~~2020 (Unaudited)	5

		Consolidated Statements of Changes in Shareholders’ Equity Quarters and ~~Nine~~Six Months Ended ~~September~~June 30, ~~2020~~2021 (Unaudited) and ~~September~~June 30, ~~2019~~2020 (Unaudited)	6

		Consolidated Statements of Cash Flows ~~Nine~~Six Months Ended ~~September~~June 30, ~~2020~~2021 (Unaudited) and ~~September~~June 30, ~~2019~~2020 (Unaudited)	7

		Notes to Consolidated Financial Statements (Unaudited)	8

Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations	5643

Item 3.		Quantitative and Qualitative Disclosures about Market Risk	7866

Item 4.		Controls and Procedures	7966

	PART II – OTHER INFORMATION

Item 1.		Legal Proceedings	8067

Item 1A.		Risk Factors	8067

Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds	8167

Item 3.		Defaults Upon Senior Securities	8167

Item 4.		Mine Safety Disclosures	8167

Item 5.		Other Information	8167

Item 6.		Exhibits	8268

Signature			8469

	Less than 12 months					12 months or longer					Total (1)
(Dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed maturities:
U.S. treasury and agency obligations	$	37,486	$	(215	)	$	0	$	0		$	37,486	$	(215	)
Obligations of states and political subdivisions		2,471		(188	)		0		0			2,471		(188	)
Mortgage-backed securities		97,405		(1,017	)		1,421		(103	)		98,826		(1,120	)
Asset-backed securities		31,769		(733	)		9,916		(268	)		41,685		(1,001	)
Commercial mortgage-backed securities		12,098		(689	)		1,026		(115	)		13,124		(804	)
Corporate bonds		28,337		(1,135	)		0		0			28,337		(1,135	)
Foreign corporate bonds		11,899		(204	)		0		0			11,899		(204	)
Total fixed maturities	$	221,465	$	(4,181	)	$	12,363	$	(486	)	$	233,828	$	(4,667	)

	Less than 12 months					12 months or longer					Total (1)
(Dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed maturities:
U.S. treasury and agency obligations	$	35,633	$	(797	)	$	0	$	0		$	35,633	$	(797	)
Obligations of states and political subdivisions		27,180		(271	)		0		0			27,180		(271	)
Mortgage-backed securities		93,579		(244	)		902		(7	)		94,481		(251	)
Asset-backed securities		43,402		(167	)		16,152		(253	)		59,554		(420	)
Commercial mortgage-backed securities		25,698		(196	)		1,945		(13	)		27,643		(209	)
Corporate bonds		19,407		(79	)		0		0			19,407		(79	)
Foreign corporate bonds		4,822		(20	)		2,035		(3	)		6,857		(23	)
Total fixed maturities	$	249,721	$	(1,774	)	$	21,034	$	(276	)	$	270,755	$	(2,050	)

	Less than 12 months					12 months or longer					Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed maturities:
U.S. treasuries	$	81,999	$	(1,089	)	$	0	$	0		$	81,999	$	(1,089	)
Obligations of states and political subdivisions		2,588		(67	)		0		0			2,588		(67	)
Mortgage-backed securities		57,350		(551	)		4		0			57,354		(551	)
Asset-backed securities		22,268		(389	)		13,354		(257	)		35,622		(646	)
Commercial mortgage-backed securities		10,294		(526	)		1,154		(118	)		11,448		(644	)
Corporate bonds		7,783		(373	)		0		0			7,783		(373	)
Foreign corporate bonds		885		(27	)		0		0			885		(27	)
Total fixed maturities	$	183,167	$	(3,022	)	$	14,512	$	(375	)	$	197,679	$	(3,397	)

Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Shares	GBLI	NASDAQ Global Select Market
7.875% Subordinated Notes due 2047	GBLIL	NASDAQ Global Select Market

	Quarter Ended September 30,		Nine Months Ended September 30,
(Dollars in thousands)	2019		2019
Fixed maturities:
OTTI losses, gross	$	0	$	(1,897	)
Portion of loss recognized in other comprehensive income (pre-tax)		0		0
Net impairment losses on fixed maturities recognized in earnings	$	0	$	(1,897	)

	Quarters Ended June 30,					For the Six Months Ended
(Dollars in thousands)	2021			2020		2021			2020
Beginning balance	$	2,203		$	0	$	0		$	0
Total gains (realized / unrealized):
Included in accumulated other comprehensive income	7				0	-32				0
Transfers into level 3		702			0		702		��	0
Transfers out of level 3		(1,720	)		0		(1,720	)		0
Amortization of bond premium and discount, net		0			0		0			0
Purchases		43			0		2,285			0
Sales		0			0		0			0
Ending balance	$	1,235			0	$	1,235			0

(Dollars in thousands)	Classification on the consolidated balance sheets	June 30, 2021			December 31, 2020
Assets:
Operating lease assets	Lease right of use assets	$	19,979		$	21,077

Liabilities:
Operating lease liabilities	Lease liabilities	$	21,566		$	22,950

Weighted-average remaining lease term:
Operating leases		8.3 years			8.8 years

Weighted-average discount rate:
Operating leases ₍₁₎			1.5	%		2.6	%

(Dollars in thousands)
2021 ₍₁₎	$	1,689
2022		2,621
2023		2,652
2024		2,613
2025		2,643
Thereafter		10,716
Total future minimum lease payments	$	22,934
Less: amount representing interest		1,368
Present value of minimum lease payments	$	21,566

	September 30, 2020
(Dollars in thousands)	Outstanding Principal		Unamortized Debt Issuance Costs			Net Carrying Amount
7.875% Subordinated Notes due 2047	$	130,000	$	(3,747	)	$	126,253
	$	130,000	$	(3,747	)	$	126,253

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		$	0		$	1,417,465
Cash and cash equivalents		13,765			2,575			20,871			0			37,211
Investments in subsidiaries		491,851			387,913			339,384			(1,219,148	)		0
Due from subsidiaries and affiliates		(3,999	)		(7,522	)		11,521			0			0
Notes receivable – affiliate		11,283			0			0			(11,283	)		0
Interest receivable – affiliate		16			0			0			(16	)		0
Premiums receivable, net		0			0			109,820			0			109,820
Reinsurance receivables, net		0			0			112,633			0			112,633
Funds held by ceding insurers		0			0			46,894			0			46,894
Federal income taxes receivable		0			2,892			(2,892	)		0			0
Deferred federal income taxes		0			38,805			(3,505	)		0			35,300
Deferred acquisition costs		0			0			67,470			0			67,470
Intangible assets		0			0			21,094			0			21,094
Goodwill		0			0			6,521			0			6,521
Prepaid reinsurance premiums		0			0			15,558			0			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	$	0		$	0		$	669,930		$	0		$	669,930
Unearned premiums		0			0			304,074			0			304,074
Ceded balances payable		0			0			9,576			0			9,576
Payable for Securities		2,207			0			3,423			0			5,630
Contingent commissions		0			0			11,329			0			11,329
Debt		0			130,000			0			(3,747	)		126,253
Notes payable – affiliates		0			0			11,283			(11,283	)		0
Accrued interest payable – affiliates		0			0			16			(16	)		0
Other liabilities		15,286			23,663			53,303			0			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

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		$	0		$	1,563,542
Cash and cash equivalents		977			2,663			40,631			0			44,271
Investments in subsidiaries		1,218,491			355,777			434,278			(2,008,546	)		0
Due from subsidiaries and affiliates		(3,612	)		(3,965	)		7,577			0			0
Notes receivable – affiliate		0			80,049			445,498			(525,547	)		0
Interest receivable – affiliate		0			5,014			17,258			(22,272	)		0
Premiums receivable, net		0			0			118,035			0			118,035
Reinsurance receivables, net		0			0			83,938			0			83,938
Funds held by ceding insurers		0			0			48,580			0			48,580
Federal income taxes receivable		0			14,197			(3,208	)		0			10,989
Deferred federal income taxes		0			31,833			(756	)		0			31,077
Deferred acquisition costs		0			0			70,677			0			70,677
Intangible assets		0			0			21,491			0			21,491
Goodwill		0			0			6,521			0			6,521
Prepaid reinsurance premiums		0			0			16,716			0			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	$	0		$	0		$	630,181		$	0		$	630,181
Unearned premiums		0			0			314,861			0			314,861
Ceded balances payable		0			0			20,404			0			20,404
Payable for securities purchased		0			0			850			0			850
Contingent commissions		0			0			11,928			0			11,928
Debt		0			303,629			0			(6,989	)		296,640
Notes payable – affiliates		520,498			0			5,049			(525,547	)		0
Accrued interest payable – affiliates		20,343			0			1,929			(22,272	)		0
Other liabilities		2,068			17,600			54,544			0			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

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	$	0		$	0		$	140,302		$	0		$	140,302
Net investment income		1,300			4,642			5,976			(172	)		11,746
Net realized investment gains		451			4,107			2,765			0			7,323
Other income (loss)		(1	)		0			543			0			542
Total revenues		1,750			8,749			149,586			(172	)		159,913
Losses and Expenses:
Net losses and loss adjustment expenses		0			0			97,148			0			97,148
Acquisition costs and other underwriting expenses		0			0			53,268			0			53,268
Corporate and other operating expenses		17,324			3,662			210			0			21,196
Interest expense		179			3,569			44			(172	)		3,620
Loss on extinguishment of debt		3,060			0			0			0			3,060
Income (loss) before equity in net income (loss) of subsidiaries and income taxes		(18,813	)		1,518			(1,084	)		0			(18,379	)
Equity in net income (loss) of subsidiaries		3,643			(10,312	)		(5,784	)		12,453			0
Loss before income taxes		(15,170	)		(8,794	)		(6,868	)		12,453			(18,379	)
Income tax benefit		0			(3,010	)		(199	)		0			(3,209	)
Net loss	$	(15,170	)	$	(5,784	)	$	(6,669	)	$	12,453		$	(15,170	)

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	$	0		$	0		$	426,617		$	0		$	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			0			(22,332	)
Other income (loss)		(1	)		19			1,455			0			1,473
Total revenues		(398	)		(40,451	)		466,838			(715	)		425,274
Losses and Expenses:
Net losses and loss adjustment expenses		0			0			242,092			0			242,092
Acquisition costs and other underwriting expenses		0			0			163,258			0			163,258
Corporate and other operating expenses		23,466			10,143			428			0			34,037
Interest expense		732	��		13,005			175			(715	)		13,197
Loss on extinguishment of debt		3,060			0			0			0			3,060
Income (loss) before equity in net income (loss) of subsidiaries and income taxes		(27,656	)		(63,599	)		60,885			0			(30,370	)
Equity in net income (loss) of subsidiaries		5,459			22,509			(25,649	)		(2,319	)		0
Income (loss) before income taxes		(22,197	)		(41,090	)		35,236			(2,319	)		(30,370	)
Income tax expense (benefit)		0			(15,441	)		7,268			0			(8,173	)
Net income (loss)	$	(22,197	)	$	(25,649	)	$	27,968		$	(2,319	)	$	(22,197	)

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	$	0		$	0		$	383,602	$	0		$	383,602
Net investment income		1,764			5,743			25,747		(861	)		32,393
Net realized investment gains		298			7,969			3,023		0			11,290
Other income		0			30			1,244		0			1,274
Total revenues		2,062			13,742			413,616		(861	)		428,559
Losses and Expenses:
Net losses and loss adjustment expenses		0			0			201,979		0			201,979
Acquisition costs and other underwriting expenses		0			0			153,643		0			153,643
Corporate and other operating expenses		4,306			6,406			990		0			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		0			46,147
Equity in net income of subsidiaries		44,057			16,597			10,903		(71,557	)		0
Income before income taxes		40,984			9,058			67,662		(71,557	)		46,147
Income tax expense (benefit)		0			(1,845	)		7,008		0			5,163
Net income	$	40,984		$	10,903		$	60,654	$	(71,557	)	$	40,984

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			0			(448	)
Equity in other comprehensive income of unconsolidated subsidiaries		(561	)		1,596			603			(1,638	)		0
Reclassification adjustment for gains included in net income		(102	)		56			(2,058	)		0			(2,104	)
Unrealized foreign currency translation gains		0			0			579			0			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	)

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			0			30,748
Equity in other comprehensive income (loss) of unconsolidated subsidiaries		17,891			8,643			8,405			(34,939	)		0
Reclassification adjustment for (gains) losses included in net income		(102	)		19			(13,122	)		0			(13,205	)
Unrealized foreign currency translation gains		0			0			568			0			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	)

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			0			206,212
Proceeds from maturity of fixed maturities		0			0			113,480			113,480
Proceeds from other invested assets		3,161			11,040			0			14,201
Amounts paid in connection with derivatives		0			(12,516	)		0			(12,516	)
Purchases of fixed maturities		(10,548	)		(24,280	)		(666,856	)		(701,684	)
Purchases of equity securities		(40,564	)		(285,408	)		0			(325,972	)
Purchases of other invested assets		0			(3,500	)		0			(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		0			8,561			0			8,561
Dividends paid to shareholders		(7,130	)		0			0			(7,130	)
Purchase of class A common shares		(947	)		0			0			(947	)
Net cash provided by (used for) financing activities		(8,077	)		8,561			0			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


(Dollars in thousands)
Total revenue	$	12,452
Intercompany interest income		57
Intercompany interest expense		—
Loss before income taxes ₍₁₎		(3,102	)
Net loss ₍₁₎		(434	)



~~3.1~~		~~Share Designation (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K12B dated August 28, 2020 (File no. 001-34809)).~~

~~3.2~~		Second Amended and Restated LLC Agreement of Global Indemnity Group, LLC (incorporated by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K12B dated August 28, 2020 (File no. 001-34809)).

~~4.1~~		Fourth Supplemental Indenture, dated as of August 28, 2020, among Global Indemnity Limited, GBLI Holdings, LLC, New CayCo, Wells Fargo Bank, National Association, as trustee and U.S. Bank, National Association, as trustee, to the Indenture dated as of August 12, 2015. (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K12B dated August 28, 2020 (File no. 001-34809)).

~~4.2~~		Fifth Supplemental Indenture, dated as of August 28, 2020, among New CayCo, GBLI Holdings, LLC, Global Indemnity Group, LLC, Wells Fargo Bank, National Association, as trustee and U.S. Bank, National Association, as trustee, to the Indenture dated as of August 12, 2015. (incorporated by reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K12B dated August 28, 2020 (File no. 001-34809)).

10.1		~~Preferred Interest Purchase~~Chief Operating Officer Agreement ~~dated as of August 27, 2020, by and between Global Indemnity Group, LLC and Wyncote LLC~~with Reiner R. Mauer effective May 14, 2021 (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form ~~8-K12B~~8-K dated ~~August 28, 2020~~May 17, 2021 (File ~~no.~~No. 001-34809)).

~~10.2~~22.1		~~Third Amended and Restated Management Agreement, dated as~~List of ~~August 28, 2020, by and between Global Indemnity Group, LLC and Fox Paine & Company, LLC~~Co-Issuer Subsidiaries (incorporated by reference to Exhibit ~~10.2~~22.1 of the Company’s ~~Current~~Annual Report on Form ~~8-K12B dated August 28,~~10-K for the fiscal year ended December 31, 2020 (File ~~no. 001-34809)).~~

~~10.3~~		Amendment to Executive Employment Agreement with Cynthia Y. Valko, dated as of August 28, 2020 (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K12B dated August 28, 2020 (File no. 001-34809)).

~~10.4~~		Executive Employment Term Sheet with Stephen Green, dated effective as of January 1, 2020 (incorporated by reference to Exhibit 10.4 of the Company’s Current Report on Form 8-K12B dated August 28, 2020 (File no. 001-34809)).

~~10.5~~		Amendment to Executive Employment Term Sheet with Stephen Green, dated as of August 28, 2020 (incorporated by reference to Exhibit 10.5 of the Company’s Current Report on Form 8-K12B dated August 28, 2020 (File no. 001-34809)).

~~10.6~~		Amendment to Executive Employment Agreement with Thomas M. McGeehan, dated as of August 28, 2020 (incorporated by reference to Exhibit 10.6 of the Company’s Current Report on Form 8-K12B dated August 28, 2020 (File no. 001-34809)).

~~10.7~~		Amended and Restated Global Indemnity Group, LLC 2018 Share Incentive Plan, dated as of August 28, 2020 (incorporated by reference to Exhibit 10.7 of the Company’s Current Report on Form 8-K12B dated August 28, 2020 (File no. 001-34809)).

~~10.8~~		Amended and Restated Global Indemnity Group, LLC Annual Incentive Awards Program, dated as of August 28, 2020 (incorporated by reference to Exhibit 10.8 of the Company’s Current Report on Form 8-K12B dated August 28, 2020 (File no.No. 001-34809)).

31.1+		Certification of ~~Chief~~Principal Executive Officer pursuant to Rule 13a-14 (a) / 15d-14 (a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2+		Certification of Chief Financial Officer pursuant to Rule 13a-14 (a) / 15d-14 (a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1+		Certification of ~~Chief~~Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2+		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

	GLOBAL INDEMNITY GROUP, LLC
	Registrant


~~November 9, 2020~~Dated: August 6, 2021	By:	/s/ Thomas M. McGeehan
~~Date: November 9, 2020~~		Thomas M. McGeehan
		Chief Financial Officer
		(Authorized Signatory and Principal Financial and Accounting Officer)