In addition, on August 26, 2020, GI Bermuda merged with Penn-Patriot Insurance Company (“Penn-Patriot”), a subsidiary of the Virginia-based company, with surviving Penn-Patriot. This merger resulted in the acquisition of GI Bermuda’s operations through the existing subsidiaries of Global’s U.S. insurance company Indemnity.
Redistribution and similar transactions simplify and streamline Global Indemnity’s organizational, legal and regulatory design and are expected to result in business-to-business power gains and long-term administrative charge savings. Four subsidiaries that were part of the previous component of Global Indemnity’s organizational design were eliminated and almost all foreign subsidiaries were eliminated. Transactions also reduced the number of countries governing overall compensation from four to 1 and reduced the number of countries where overall compensation is subject to a significant tax of 3 to 1. The United States is now the only country that governs and regulates and enforces the Indemnity.
As a component of redomestication, Global Indemnity eliminated approximately $1 billion in intercorporative debt, eliminating the $174 million external debt index (57%) (reducing the company’s debt index from 29% to 15%) and the parent company with approximately $250 million in money and investments that can be used through the corporation for general corporate purposes.
The re-redomestiction was approved through shareholders at an ordinary meeting held on August 25, 2020. Shareholders who reimbursed 87% of the notable shares voted at the ordinary meeting and 92% of the shares voted at the special assembly voted in favour of redomestiction. In addition, 92% of individual shareholders provided or re-ordered through power and voting at the special meeting voted in favor of reomestiction.
Prior to the special shareholder meeting, Global Indemnity obtained mandatory approvals for relocation and similar transactions from the Arizona Department of Insurance, the Indiana Department of Insurance, the Pennsylvania Insurance Department, the Virginia Insurance Office, and the Bermuda Monetary Authority. On 26 August 2020, the Grand Court of the Cayman Islands sanctioned the settlement and merger plan under which the reomesticulation took place. A copy of the penalty order can be obtained in www.global-indemnity.com.
Non-unusual Class A shares of Global Indemnity Group, LLC are registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, and Global Indemnity Group, LLC is subject to the SEC’s reporting needs applicable to national registered entities. Non-unusual Class A shares of Global Indemnity Group, LLC begin trading on the NASDAQ.
Fox Paine – Company, LLC has global compensation in the conceptualization, design, structuring and execution of redomesticization and similar transactions.
Global Indemnity Group, LLC (NASDAQ: GBLI), its several wholly owned direct and oblique insurance subsidiaries, provides admitted and unsupported specialized damages insurance policies and policies for individual policyholders in the United States, as well as reinsurance worldwide. The 4 main segments of Global Indemnity Group, LLC are:
For more information, visit the Company’s website at www.global-indemnity.com.
Prospective information
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements contained in this press release [1] do not relate to a number of hazards and uncertainties, adding COVID-19 and hazards and uncertainties similar to rheomestication. The forward-looking statements contained in this press release include, but are not limited to, statements similar to our statements regarding the company’s rheomestiction and the Company’s long-term effects or expectations. These statements are based on the expectations existing at the time of this press release and involve a number of hazards, uncertainties and assumptions, in addition to those described in the Company’s submissions to the Securities and Exchange Commission. Investors are cautioned that it is not imaginable that the Company expects all the dangers, nor can we assess the effect on all points in their business or to what extent a factor, or a combination of points, would possibly cause real effects. differ materially from the contents of the forward-looking statements we would possibly make. Given these dangers, uncertainties and assumptions, the forward-looking occasions and cases discussed in this press release may not occur and the actual effects may differ materially and unfavorably from those expected or implied in forward-looking statements. All forward-looking statements contained in this press release are based on the company’s data to date. Please refer to the Company’s submissions to the Securities and Exchange Commission for a discussion of the dangers and uncertainties that may also have an effect on the Company and for a more detailed explanation of the forward-looking statements. The Company assumes no legal responsibility to update the forward-looking statements provided to reflect occasions that occur or cases that occur after the date they were made.
[1] Published in accordance with the “safe harbor” provisions of Section 21E of the Security Exchange Act of 1934.