On a call with analysts, the executive said: “The lack of growth was all driven by just one of our three divisions.
“This division targets specific agents with concentrated books of single-class business or substantial re-underwriting, and pricing actions resulted in a loss of significant amount of premium of $15mn.”
However, Brown noted that other divisions reported top-line growth during the quarter.
“In sharp contrast, our core packaged specialty business grew 13%,” the executive said, adding that the firm’s retail-focused operation grew by 14% in the quarter.
The executive was speaking after the company reported that its continuing lines CoR rose 5.6 points to 100% in Q2, impacted by “loss reserve strengthening” mainly driven by the restaurant book of business that was not renewed, as well as other non-renewed business, partially offset by increased pricing.
Penn-America buyout
CEO Brown said the firm is still engaged in conversations to sell a portion of its insurance operations or the entire company.
“These conversations are continuing, and ... we do not intend to make any further comments unless or until it has been completed or suspended,” he said on the call.
Two months ago, the Pennsylvania-based firm said multiple parties expressed preliminary interest in an acquisition or merger with Global Indemnity, as well as its excess and surplus lines (E&S) arm Penn-America.
In May, Inside P&C reported that the insurer was exploring the sale of its SME-focused E&S platform.
“The conversations are continuing. That's all we're going to say at this time,” Brown added on the call.
