Insiders Bet Big on Global Indemnity After Wildfire Setback & Reorg

Global Indemnity Group (GBLI:US), a Wilmington-based specialty insurance provider, currently holds a market capitalization of approximately $440 million. Despite posting a net loss in Q1 2025, the company has caught attention—not just for its financials, but for a recent surge in insider buying that raises intriguing questions about what the company’s leadership sees ahead.

A Surge in Confidence With Insider Buying

Over just one week in May 2025, multiple large purchases were made by two key insiders: Founder Saul A. Fox and CEO Joseph W. Brown.

• Saul A. Fox, the company’s founder, acquired 53,800 shares across four separate transactions between May 13 and May 20, spending over $1.64 million. His purchase prices ranged from $29.19 to $31.78 per share.

• Joseph W. Brown, the CEO, bought 10,000 shares over two days, spending just under $292,000.

These aren’t token buys. These are meaningful, open-market purchases—typically seen as strong signals of insider conviction.

What Do the Insiders Know?

When high-ranking insiders commit large sums of their own capital, it's often based on insights unavailable to the average investor, especially in insurance, where future risk and earnings are tied to nuanced underwriting decisions and asset yields.

The timing of these purchases, right after Q1 earnings, adds to the intrigue. The earnings release on May 7 revealed a net loss of $4.1 million, or ($0.30) per share, primarily due to $12.2 million in after-tax losses from the January California wildfires. Strip out that catastrophe, though, and the picture changes: net income jumps to $8.1 million, or $0.58 per share.

The insiders may be betting that this adjusted performance better reflects the company’s true trajectory.

A Quarter of Transition and Realignment

Beyond the numbers, Global Indemnity is undergoing significant change. The company recently executed a major internal reorganization, segmenting operations under two new holding companies: Penn-America Underwriters, LLC and Belmont Holdings GX, Inc. This move is designed to improve operational efficiency, boost statutory capital, and enhance long-term capital management.

Meanwhile, operating segments like InsurTech and Assumed Reinsurance are seeing substantial growth. Even traditional segments like Wholesale Commercial grew steadily, up 6% year-over-year.

It’s not just insiders showing confidence—Boston Partners, Cannell Capital, and Huber Capital Management have all increased their positions, signaling growing institutional interest in a potentially undervalued insurance company undergoing strategic transformation.

Final Thoughts

Global Indemnity Group may be flying under the radar for most investors, but not for its founder and CEO. Their aggressive stock purchases amid a volatile quarter suggest they believe the company is poised for better days, possibly bolstered by operational restructuring, growing premium segments, and improved investment yields.

With catastrophic events like wildfires impacting near-term results, GBLI may appear troubled on the surface. But as insiders double down, it may just be the kind of misunderstood value play worth a closer look.