Global Indemnity Group has suspended its exploration to sell or merge itself or its insurance group and Penn-America Group at this time.
This decision builds on merger and acquisition market information obtained by the company.
Global Indemnity chairman Saul Fox said: “Our merger and acquisition market information that suggested we pursue a transaction at this time was not realised.”
The initial exploration for merger or sale of Penn-America, Global Indemnity and its insurance group was announced in June this year, after several parties showed their preliminary interest in such a deal.
However, at the time of the initial announcement, Global Indemnity did not assure that the potential interest will result in an acceptable transaction.
Global Indemnity CEO Jay Brown added: “Given the company’s debt-free balance sheet and strong reserve base, coupled with our enviable decades-long profitability, outstanding management team, and extensive national agent and broker network, Penn-America is well-positioned to achieve exceptional financial results for our owners.”
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Simultaneously, Global Indemnity has also decided to increase the size of its board of directors to seven members.
The Pennsylvania, US-based company has added Fred Karlinsky, who is Greenberg Traurig global insurance practice co-chair, as the new board member.
“Fred has broad experience advising highly profitable, growth-oriented insurance industry participants,” Saul Fox added.
In another development, Global Indemnity has confirmed its plans to continue buying back shares pursuant to its $135m authorisation.
As of now, the company has a remaining capacity of $100m.
Global Indemnity said that the timing and exact number of shares repurchased, if any, will be based on several factors, such as general business and market conditions, price, as well as alternative investment opportunities.
This share repurchase programme, which can be suspended or discontinued at any time, will not oblige the company to acquire any of its common shares, Global Indemnity added.
In August 2022, Global Indemnity agreed to sell its subsidiary, American Reliable Insurance Company, to Everett Cash Mutual.