Greenlight Re(GLRE)

Search documents
Greenlight Re(GLRE) - 2025 Q1 - Quarterly Results
2025-05-07 21:18
Financial Performance - Net income for Q1 2025 increased to $29.6 million, or $0.86 per diluted share, compared to $27.0 million, or $0.78 per diluted share in Q1 2024[3] - Gross premiums written rose by 14.1% to $247.9 million, while net premiums earned increased by 4.3% to $168.5 million[3] - The combined ratio for Q1 2025 was 104.6%, up from 97.9% in Q1 2024, indicating a net underwriting loss of $7.8 million compared to net underwriting income of $3.4 million[3] - Total investment income for the quarter was $40.5 million, an increase from $31.4 million in the same period last year[3] - The company reported a net loss and LAE incurred of $122.9 million, compared to $109.3 million in Q1 2024[11] - The net loss and LAE incurred was $109,326 million, resulting in an underwriting income of $3,385 million[15] - Corporate and other expenses totaled $4,375 million, impacting overall profitability[15] Investment Performance - Investment income from Solasglas was $32.2 million, significantly higher than $18.2 million in the previous year[11] - Net investment income reached $13,178 million, contributing to an income before income taxes of $27,538 million[15] Asset and Equity Position - Total assets increased to $2.15 billion, up from $2.02 billion at the end of 2024[10] - Fully diluted book value per share grew by 5.1% to $18.87, up from $17.95 at the end of 2024[3] - Fully diluted book value per share increased to $18.87, compared to $17.95 in the previous quarter[22] - Total equity reported under U.S. GAAP was $666,804 million as of March 31, 2025[22] - The number of ordinary shares issued and outstanding was 34,557,449, with an additional 773,938 in-the-money stock options and RSUs[22] - The company aims to increase fully diluted book value per share as a key financial goal[19] Loss Ratios and Financial Impact - The current year loss ratio was 70.4%, compared to 64.3% in the prior year, contributing to a total loss ratio of 72.9%[11] - Foreign exchange losses amounted to $1,649 million, affecting the financial results[15] - The combined ratio for the consolidated segment was 97.9%, with a loss ratio of 67.6% and an acquisition cost ratio of 25.8%[15] Cash Position - Cash and cash equivalents decreased to $47.5 million from $64.7 million at the end of 2024[10]
Greenlight Re(GLRE) - 2025 Q1 - Quarterly Report
2025-05-07 20:52
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________ FORM 10-Q __________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-33493 ____________________________________________________________________ ...
Greenlight Re Announces First Quarter 2025 Financial Results
Globenewswire· 2025-05-07 20:15
Net Income Expands to $29.6 million Despite California Wildfire Losses, Leading to Fully Diluted Book Value Per Share Growth of 5.1% GRAND CAYMAN, Cayman Islands, May 07, 2025 (GLOBE NEWSWIRE) -- Greenlight Capital Re, Ltd. (NASDAQ: GLRE) (“Greenlight Re” or the “Company”) today reported its financial results for the first quarter ended March 31, 2025. First Quarter 2025 Highlights (all comparisons are to first quarter 2024 unless noted otherwise): Gross premiums written increased 14.1% to $247.9 million;N ...
Greenlight Capital Re, Ltd. Schedules First Quarter 2025 Financial Results and Conference Call
Globenewswire· 2025-05-02 20:05
Core Viewpoint - Greenlight Capital Re, Ltd. is set to release its financial results for the first quarter of 2025 on May 7, 2025, with a conference call scheduled for May 8, 2025, to discuss these results [1]. Group 1: Financial Results Announcement - The company will announce its first quarter financial results after market close on May 7, 2025 [1]. - A live conference call to discuss the financial results will take place on May 8, 2025, at 9:00 a.m. Eastern Time [1]. Group 2: Conference Call Details - Participants can join the conference call by dialing U.S. toll-free 1-877-407-9753 or international 1-201-493-6739 [2]. - The conference call will also be available via webcast [2]. - A telephone replay of the call will be accessible until May 13, 2025 [2]. Group 3: Company Overview - Greenlight Re provides multiline property and casualty insurance and reinsurance through its licensed entities in the Cayman Islands and Ireland [3]. - The company employs a non-traditional investment approach aimed at achieving higher long-term returns compared to traditional reinsurance investment strategies [3]. - Greenlight Re Innovations supports technology innovators in the (re)insurance sector by offering investment capital and risk capacity [3].
Greenlight Re Announces Appointment of Martin Vezina as Head of Underwriting Analytics
Globenewswire· 2025-05-01 13:00
GRAND CAYMAN, Cayman Islands, May 01, 2025 (GLOBE NEWSWIRE) -- Greenlight Reinsurance, Ltd. (“Greenlight Re” or the “Company”), a subsidiary of Greenlight Capital Re, Ltd. (NASDAQ: GLRE), today announced the appointment of Martin Vezina as Head of Underwriting Analytics with immediate effect. In this capacity, Vezina will play a pivotal role in overseeing Greenlight Re’s underwriting analytics and pricing function and will be based out of the Company’s headquarters in Grand Cayman. “I am excited to join Gre ...
Greenlight Re(GLRE) - 2024 Q4 - Earnings Call Transcript
2025-03-11 16:58
Greenlight Capital Re, Ltd. (NASDAQ:GLRE) Q4 2024 Earnings Conference Call March 11, 2025 9:00 AM ET Company Participants David Sigmon - General Counsel Greg Richardson - Executive Officer David Einhorn - Chairman of the Board Faramarz Romer - Chief Financial Officer Conference Call Participants Anthony Mottolese - Dowling & Partners Eric Hagen - BTIG Operator At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. It's now my pleasure to ...
Greenlight Re(GLRE) - 2024 Q4 - Earnings Call Transcript
2025-03-11 20:50
Financial Data and Key Metrics Changes - In Q4 2024, the company reported a net loss of $27.4 million, translating to a loss of $0.81 per diluted share, compared to net income of $17.6 million or $0.50 per diluted share in Q4 2023 [32] - The combined ratio for Q4 2024 was 112.1%, with a net underwriting loss of $18 million [8][33] - For the full year 2024, net income was $42.8 million, resulting in a 7.2% increase in fully diluted book value per share to $17.95 [12][43] Business Line Data and Key Metrics Changes - The open market segment's net earned premiums increased by 25% to $127.8 million in Q4 2024, while the combined ratio for this segment was 111.1% [37] - The innovation segment's net earned premiums decreased by 18.1% to $19 million in Q4 2024, with a combined ratio of 102.1% [40] - For the full year 2024, the open market segment's net earned premiums increased by 9.7% to $511.9 million, while the innovation segment's net earned premiums increased by 20.3% to $86.4 million [39][42] Market Data and Key Metrics Changes - The company experienced $17.6 million in catastrophe losses in Q4 2024, with Hurricane Milton being the most significant at $7.5 million [9] - The North Atlantic hurricane exposure increased by 16% to $116.3 million on a one-in-250th occurrence basis [18] Company Strategy and Development Direction - The company has split its financial results into two segments: open market and innovations, reflecting its growth strategy [12] - The company is optimistic about the prospects of its funded at Lloyd's (FAL) book, expecting it to grow by approximately 25% in 2025 [15] - The company aims to be strategic and targeted in its casualty underwriting, focusing on smaller programs while being cautious in the current loss environment [63][65] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in Q4 2024 but expressed optimism about future opportunities, emphasizing the importance of reinsurance and adequate rates [20][21] - The company anticipates claims related to the Russia-Ukraine conflict and has strengthened its reserves in anticipation of these claims [52] - Management believes the current in-force book can deliver double-digit growth in book value per share despite recent challenges [43] Other Important Information - The company reported a consolidated combined ratio of 101.4% for the full year 2024, resulting in a small underwriting loss of $8.2 million [42] - The Solus Glass Fund returned negative 1.9% in Q4 2024, with a full-year return of 9.8% compared to a 25% return in the S&P 500 [29] Q&A Session Summary Question: Can you provide more information on the Q4 charge related to Russia-Ukraine? - Management explained that the charge reflects their best estimate of ultimate losses, with some uncertainty but limited by the number of aircraft involved and retrocession coverage [48][49][52] Question: What are the adverse development trends in casualty books? - Management noted that while there are adverse developments, they are primarily from older years and not considered hugely problematic for the company [58][61] Question: How does casualty fit into the growth profile today? - Management expressed caution in the casualty market but indicated that there are opportunities in smaller programs [62][65] Question: How do you see capital allocation changing with upcoming renewals? - Management stated that while there may be incremental changes, they continue to find returns on their Silpe investment strategy attractive [70][72] Question: What is the target rate of return for the MicroStrategy arbitrage? - Management indicated that the return on the MicroStrategy position has been exceedingly high, likely annualizing nearly triple digits [78]
Greenlight Re(GLRE) - 2024 Q4 - Annual Results
2025-03-10 21:03
Financial Performance - Gross premiums written for 2024 increased by 28.0% to $143.8 million, while net premiums earned rose by 7.8% to $148.1 million[5]. - The net underwriting loss for 2024 was $18.0 million, compared to a net underwriting income of $11.8 million in 2023, resulting in a combined ratio of 112.1% versus 91.4%[5]. - The company reported a net loss of $27.4 million, or $(0.81) per diluted ordinary share, compared to net income of $17.6 million, or $0.50 per diluted ordinary share in 2023[5]. - The combined ratio for the fourth quarter of 2024 included 10.1% related to the Russia-Ukraine conflict and 11.9% related to catastrophes[3]. - The combined ratio for Q4 2024 was 112.1%, up from 91.4% in Q4 2023, indicating a deterioration in underwriting performance[18][20]. - The loss ratio for Q4 2024 was 82.8%, compared to 55.2% in Q4 2023, showing an increase of 27.6 percentage points[18][20]. - The underwriting income for the year ended December 31, 2024, was a loss of $8,175 million, compared to a profit of $31,992 million in 2023, indicating a significant decline[22][24]. - The income (loss) before income taxes for Q4 2024 was a loss of $28,346 million, compared to a profit of $17,595 million in Q4 2023, indicating a significant downturn in profitability[18][20]. Investment and Assets - Total investment income decreased to $2.6 million in 2024 from $14.1 million in 2023[5]. - The company's total assets increased to $2.016 billion as of December 31, 2024, up from $1.735 billion in 2023[15]. - Loss and loss adjustment expense reserves rose to $860.9 million in 2024 from $661.6 million in 2023[15]. - Net investment income for the year ended December 31, 2024, was $45,954 million, compared to $43,408 million in 2023, an increase of 5.9%[22][24]. Shareholder Value and Equity - Fully diluted book value per share increased by 7.2% to $17.95 from $16.74 at December 31, 2023[6]. - Total equity reported under U.S. GAAP as of December 31, 2024, is $635,879 million, an increase from $596,095 million in December 2023[31]. - Basic book value per share increased to $18.26 as of December 31, 2024, compared to $16.87 in December 2023, reflecting a growth of 8.2%[31]. - The number of ordinary shares issued and outstanding as of December 31, 2024, is 34,831,324, slightly down from 35,336,732 in December 2023[31]. - The denominator for fully diluted book value per share increased to 35,421,325 as of December 31, 2024, from 35,601,602 in December 2023[31]. - The basic book value per share for September 30, 2024, was $19.05, indicating a sequential increase from $17.95 in June 2024[31]. - The fully diluted book value per share for September 30, 2024, was $18.72, reflecting an increase from $17.65 in June 2024[31]. - The total equity reported for September 30, 2024, was $663,418 million, up from $634,020 million in June 2024[31]. Operational Changes - The company restructured its reportable segments into Open Market and Innovations effective December 31, 2024[3]. - The CEO expressed confidence in delivering shareholder value in 2025 despite the challenging financial results for 2024[8]. - The acquisition cost ratio for Q4 2024 was 26.0%, compared to 30.7% in Q4 2023, showing an improvement in cost management[18][20]. - The company reported foreign exchange losses of $8,851 million in Q4 2024, compared to gains of $3,905 million in Q4 2023, reflecting a negative impact from currency fluctuations[18][20]. Premiums and Growth - Gross premiums written for Q4 2024 totaled $143,756 million, a significant increase from $112,338 million in Q4 2023, representing a growth of 28.1%[18][20]. - Net premiums earned for Q4 2024 were $148,136 million, compared to $137,445 million in Q4 2023, reflecting an increase of 7.3%[18][20]. - For the year ended December 31, 2024, gross premiums written reached $698,335 million, up from $636,810 million in 2023, marking a growth of 9.7%[22][24].
Greenlight Re(GLRE) - 2024 Q4 - Annual Report
2025-03-10 20:40
Financial Performance - The company grew its reinsurance business by 9.7% in gross premiums written during 2024, maintaining a strong financial position and liquidity [30]. - Total assets reached $2.0 billion and shareholders' equity was $0.6 billion as of December 31, 2024, with a debt-to-capital ratio of 9.5% [31]. - The five-year compound annual growth for diluted book value per share was 8.2% at December 31, 2024 [33]. - Gross premiums written for the Open Market segment increased to $603.8 million (86.5% of total) in 2024, up from $504.4 million (79.2%) in 2023 [43]. - The Innovations segment saw gross premiums written rise from $50.7 million in 2022 to $94.7 million in 2024, representing a significant growth trajectory [39]. - A.M. Best revised the outlook for the company's principal operating subsidiaries to positive from stable in October 2024, maintaining an A- (Excellent) rating [31]. - A.M. Best reaffirmed the company's "A- (Excellent)" rating on October 18, 2024, with a positive outlook, reflecting strong financial strength and operating performance [80]. Underwriting and Risk Management - The company has implemented a whole-account retrocession program, ceding 28% of Innovations-related contracts in Q4 2024 to enhance capacity without capital constraints [39]. - The Open Market segment's FAL business represented approximately 40%, 35%, and 26% of gross premiums written for the years ended December 31, 2024, 2023, and 2022, respectively [50]. - The company has established underwriting operations in the Cayman Islands, Dublin, and London, providing access to key markets in the U.S., Europe, Middle East, and Asia [57]. - The underwriting platform is supported by experienced underwriters and actuaries, focusing on maximizing profitability while managing risk and volatility [58]. - The company collaborates with clients and brokers to understand risks and follows terms set by recognized market leaders for most of its business [61]. - The company engages an independent actuarial firm to review reserve estimates at least once a year, ensuring accuracy in claims reserves [74]. - The underwriting committee sets parameters for aggregate property catastrophic caps and limits for maximum loss potential under any individual contract [65]. - The company offers clients the ability to create segregated cells within Viridis Re starting in 2024, providing more flexible and cost-effective reinsurance solutions [54]. Investment Strategy - Total investments as of December 31, 2024, amounted to $460.3 million, with 84.1% allocated to Solasglas and 15.9% to Innovation-related investments [107]. - The maximum Investment Portfolio for Solasglas was increased from 50% to 60% of GLRE Surplus on January 1, 2023, and further raised to 70% on August 1, 2024 [109]. - DME Advisors manages the investment portfolio and receives a monthly management fee at an annual rate of 1.5% of each limited partner's Investment Portfolio [111]. - DME Advisors is entitled to a performance allocation of 20% of net profits calculated per annum, subject to a loss carryforward provision [111]. - DME II's performance allocation is reduced to 10% on net profits until Solasglas achieves additional investment returns of 88.3%, after which it will revert to 20% [112]. - Investment returns for Solasglas in 2024 were 9.8%, compared to 9.4% in 2023, and significantly lower than 25.3% in 2022 [120]. - The investment portfolio is now calculated based on 70% of GLRE Surplus effective August 1, 2024, up from 60% in 2023 [120]. - DME Advisors implements a value-oriented investment strategy focusing on long positions in undervalued securities and short positions in overvalued ones [117]. - The company aims to achieve higher long-term returns compared to traditional fixed-income portfolios, aligning with its reinsurance business [118]. Regulatory Compliance and Risks - Greenlight Re and Viridis Re must maintain capital and a margin of solvency in accordance with the capital and solvency requirements prescribed by the Act [92]. - The Cayman Islands Monetary Authority (CIMA) can impose fines for breaches of regulatory laws, ranging from $6,100 to $1,220,000 depending on the severity of the breach [91]. - CIMA may direct a licensee to cease unsafe business practices, with penalties including fines up to $600,000 or imprisonment for up to ten years for non-compliance [90]. - Greenlight Re and Viridis Re are required to submit annual returns, including financial statements audited by an independent auditor approved by CIMA [92]. - The financial security of the Lloyd's market is regularly assessed by four independent rating agencies, which is crucial for trading in certain classes of business [106]. - The underwriting capacity of a member of Lloyd's must be supported by a deposit, with premium levies on current members potentially assessed up to 5% of a member's underwriting capacity [106]. - Regulatory non-compliance could lead to restrictions on dividend payments, limitations on business activities, and potential financial penalties [196]. - The holding company relies on dividends from subsidiaries to meet cash requirements, and regulatory restrictions may limit these dividend payments [197]. - The company is licensed as a reinsurer in the Cayman Islands and the EEA, and any suspension or revocation of these licenses would materially affect its operations [191]. - Greenlight Re and Viridis Re were in compliance with their respective capital requirements as of December 31, 2024, with Greenlight Re maintaining a minimum capital of $50 million and Viridis Re at $0.2 million [194]. - GRIL's minimum capital requirement was approximately $9.9 million, and its solvency capital requirement was $39.8 million as of December 31, 2024, with compliance confirmed [195]. - The company is subject to oversight by the PRA and FCA, and failure to comply with their regulations could materially impact business strategy [212]. Market Conditions and Challenges - The reinsurance industry is highly competitive, with major competitors having greater financial and marketing resources, which could adversely affect the company's ability to market its products profitably [157]. - The company’s financial condition may be materially affected if actual losses significantly exceed its loss reserves, which are established based on estimates of future trends in claim severity [153]. - The ongoing conflict between Russia and Ukraine has led to economic uncertainty and volatility in global markets, which may indirectly impact the company's operations [162]. - The company faces challenges from emerging claims and coverage issues, particularly related to geopolitical instability and the impact of sanctions on its specialty lines of business [163]. - The property and casualty reinsurance market is subject to cyclical trends, which can lead to periods of intense price competition and affect the company's premium rates and terms [165]. - Increased supply of reinsurance may lead to fewer contracts written and lower premium rates, adversely impacting the company's financial condition and results of operations [167]. - The company utilizes modeling tools for pricing and risk management, but inherent uncertainties in these models may lead to underestimating exposures and negatively impacting financial results [168]. - Cybersecurity risks are evolving, and the company may face increased costs to comply with new regulatory requirements related to data protection and privacy [171]. - The company's reinsurance operations are vulnerable to catastrophic losses, which could lead to significant volatility in financial results due to unpredictable events such as severe weather and natural disasters [172]. - As of December 31, 2024, reinsurance balances receivable from brokers and cedents totaled $704.5 million, with a majority not collateralized, raising concerns about collectability [179]. - Total loss recoverables at December 31, 2024, amounted to $85.8 million, also with a majority not collateralized, which could adversely affect financial condition [180]. - The company is exposed to credit risk from brokers and cedents, which may not fulfill their obligations, potentially leading to downward adjustments in financial statements [178]. - The company faces risks from future strategic transactions, including acquisitions and mergers, which could adversely impact its reputation and financial condition [187]. - Non-compliance with international laws and regulations could materially affect the company's ability to conduct business globally [188]. - Currency fluctuations may result in exchange rate losses, negatively impacting the company's financial performance [189]. Employee and Diversity Metrics - As of December 31, 2024, 40% of the total global employees were female, and approximately 33% identified as racially or ethnically diverse [132]. - The company has 75 total employees worldwide as of March 7, 2025, with 35 in Grand Cayman, 25 in Dublin, and 15 in London [133]. Compensation and Governance - The company has a performance-driven compensation policy that includes base salary, annual cash bonuses, and long-term incentives like stock options [136]. - The Executive Risk Committee oversees the enterprise risk management function, ensuring compliance with risk appetite and monitoring measures [123]. - Potential conflicts of interest may arise from DME Advisors and its affiliates managing accounts with differing investment objectives, potentially affecting Solasglas' investment returns [221]. - Mr. Einhorn's role on the Boards of Directors of both Greenlight Capital Re and Greenlight Re may lead to conflicts of interest due to his influence over investment decisions [222]. - Solasglas may invest in securities with limited liquidity, which could hinder the execution of trade orders at desired prices and impact underwriting payment obligations [224].
Greenlight Re Announces Fourth Quarter and Year-End 2024 Financial Results
Globenewswire· 2025-03-10 20:15
Core Insights - Greenlight Capital Re, Ltd. reported a fully diluted book value per share increase of 7.2% in 2024, marking the fifth consecutive year of growth [1][9] - The company restructured its reportable segments into Open Market and Innovations to better align with its multi-pillar strategy [2] Financial Performance Highlights - For Q4 2024, gross premiums written increased by 28.0% to $143.8 million, while net premiums earned rose by 7.8% to $148.1 million [8] - The net underwriting loss for Q4 2024 was $18.0 million, compared to a net underwriting income of $11.8 million in Q4 2023 [8] - The combined ratio for Q4 2024 was 112.1%, up from 91.4% in Q4 2023 [8][18] - Total investment income for Q4 2024 was $2.6 million, a significant decrease from $14.1 million in Q4 2023 [8] Year-End Financial Results - For the full year 2024, gross premiums written increased by 9.7% to $698.3 million, and net premiums earned increased by 6.3% to $620.0 million [9] - The net underwriting loss for 2024 was $8.2 million, compared to a net underwriting income of $32.0 million in 2023 [9] - The combined ratio for 2024 was 101.4%, compared to 94.5% in 2023 [9][18] - Total investment income for 2024 was $79.6 million, an increase from $72.1 million in 2023 [9] Segment Performance - In Q4 2024, the Open Market segment generated gross premiums written of $123.1 million, while the Innovations segment contributed $20.7 million [20] - For the full year 2024, the Open Market segment's gross premiums written were $603.8 million, and the Innovations segment's were $94.7 million [25] Management Commentary - The CEO expressed pride in the company's accomplishments despite financial results falling short of expectations, emphasizing a strong position for delivering shareholder value in 2025 [7] - The Chairman noted challenges in the investment program post U.S. election results but highlighted a solid return of 9.8% for Solasglas in 2024 [7]