Greenlight Re(GLRE)

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Greenlight Re(GLRE) - 2023 Q4 - Annual Report
2024-03-05 22:09
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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 Capital Re, Ltd. (Exact Name of Registrant as Specified in Its Charter) Cayman Islands N/A (State or other jurisdiction of inco ...
Greenlight Re(GLRE) - 2023 Q4 - Annual Results
2024-03-05 21:30
Premiums and Underwriting Performance - Gross premiums written decreased 11.8% to $112.3 million in Q4 2023, while net premiums earned increased 23.4% to $137.4 million[5]. - Full year gross premiums written increased 13.1% to $636.8 million, with net premiums earned rising 24.2% to $583.1 million[10]. - The increase in gross premiums written for the full year was driven by a 32.8% increase in Property premiums, an 8.0% increase in Casualty premiums, and a 12.9% increase in Specialty premiums[10]. - Net underwriting income for Q4 2023 was $11,755,000, compared to $6,519,000 in Q4 2022, reflecting an increase of 80.5%[22]. - The loss ratio for property insurance in Q4 2023 was 44.8%, a significant improvement from 82.6% in Q4 2022[24]. - Underwriting income for the full year 2023 was $32.0 million, compared to an underwriting loss of $10.7 million in 2022, resulting in a combined ratio improvement from 102.3% to 94.5%[11]. - The combined ratio for Q4 2023 improved to 91.4%, down from 94.2% in Q4 2022, driven by better pricing on the in-force underwriting book[7]. Financial Performance - Net income for Q4 2023 was $17.6 million, or $0.50 per diluted ordinary share, down from $34.8 million, or $0.91 per diluted ordinary share in Q4 2022[5]. - Net income for the year ended December 31, 2023, was $86,830,000, significantly higher than $25,342,000 in 2022[22]. - Basic earnings per share for the year ended December 31, 2023, was $2.55, compared to $0.75 in 2022, representing a 240% increase[22]. Investment Income - Total investment income for Q4 2023 was $13.6 million, down from $32.5 million in Q4 2022, while full year investment income was $66.1 million compared to $69.0 million in 2022[12]. - Total investment income for the year ended December 31, 2023, was $66,063,000, slightly down from $68,983,000 in 2022[22]. Shareholder Value - Fully diluted book value per share increased by $2.41, or 16.8%, to $16.74 at December 31, 2023, compared to $14.33 at the end of 2022[13]. - Fully diluted book value per share as of December 31, 2023, was $16.74, up from $14.33 in 2022, indicating growth in shareholder value[33]. Management and Future Outlook - The company successfully executed several executive management transitions and is well positioned for growth in 2024[4]. - Acquisition costs for the year increased to $168,877,000 from $143,148,000 in 2022, reflecting a rise of 18%[22]. Foreign Exchange Impact - The company reported foreign exchange gains of $3.9 million in Q4 2023, primarily due to the strengthening of the pound sterling[8].
Greenlight Re(GLRE) - 2023 Q3 - Quarterly Report
2023-11-08 21:22
PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the nine months ended September 30, 2023, show total assets of $1.74 billion, shareholders' equity of $575.9 million, and a net income of $69.2 million, marking a significant turnaround [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2023, total assets increased to **$1.74 billion**, total liabilities to **$1.16 billion**, and shareholders' equity to **$575.9 million**, reflecting overall balance sheet growth Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$1,739,629** | **$1,580,381** | **+10.1%** | | Total Investments | $296,639 | $248,476 | +19.4% | | Reinsurance balances receivable | $640,391 | $505,555 | +26.7% | | **Total Liabilities** | **$1,163,764** | **$1,077,261** | **+8.0%** | | Loss and loss adjustment expense reserves | $658,234 | $555,468 | +18.5% | | **Total Shareholders' Equity** | **$575,865** | **$503,120** | **+14.5%** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the nine months ended September 30, 2023, the company reported a net income of **$69.2 million**, a substantial improvement from the prior year's loss, driven by increased net premiums earned and total revenues Key Operating Results (in thousands, except EPS) | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Gross Premiums Written | $524,472 | $435,812 | | Net Premiums Earned | $445,702 | $358,092 | | Total Revenues | $511,597 | $381,170 | | Net Loss and LAE Incurred | $284,072 | $252,789 | | **Net Income (Loss)** | **$69,224** | **($9,408)** | | **Diluted EPS** | **$1.99** | **($0.28)** | Q3 Operating Results (in thousands, except EPS) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net Premiums Earned | $163,110 | $121,948 | | Total Revenues | $166,922 | $126,723 | | **Net Income (Loss)** | **$13,477** | **($18,469)** | | **Diluted EPS** | **$0.39** | **($0.56)** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2023, net cash used in operating activities improved to **$14.6 million**, while overall cash, cash equivalents, and restricted cash decreased by **$42.6 million** Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net Cash from Operating Activities | ($14,630) | ($27,424) | | Net Cash from Investing Activities | ($22,548) | $4,239 | | Net Cash from Financing Activities | ($5,292) | ($6,419) | | **Net (Decrease) in Cash** | **($42,622)** | **($29,926)** | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the company's significant investment in a related party fund, loss reserve development including **$29.5 million** in catastrophe losses, and the refinancing of **$79.6 million** in convertible notes with a new **$75.0 million** term loan - The company's investment in the related party fund, Solasglas Investments, LP (SILP), was valued at **$229.0 million** as of September 30, 2023, representing **70.3%** of SILP's total net assets[40](index=40&type=chunk) - For the nine months ended September 30, 2023, the company recognized net catastrophe losses of **$29.5 million**, driven by events including the Turkey earthquake, Cyclone Gabrielle, U.S. severe storms, and a Mexican oil platform fire[59](index=59&type=chunk) - Prior year loss reserves saw adverse development of **$10.5 million** in the first nine months of 2023, primarily from legacy motor, homeowners, and workers' compensation contracts, partially offset by favorable development in property catastrophe and marine lines[60](index=60&type=chunk)[61](index=61&type=chunk) - In June 2023, the company entered into a new **$75.0 million** term loan facility, using the proceeds to repay all outstanding Convertible Senior Notes that matured on August 1, 2023[68](index=68&type=chunk)[69](index=69&type=chunk)[72](index=72&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong performance to successful underwriting and investment strategies, with fully diluted book value per share increasing **13.6%** to **$16.58** and the combined ratio improving to **95.5%** [Consolidated Results of Operations](index=28&type=section&id=Consolidated%20Results%20of%20Operations) For the nine months ended September 30, 2023, the company achieved a net income of **$69.2 million** and an underwriting income of **$20.2 million**, with the combined ratio improving to **95.5%** Performance Summary (Nine Months Ended Sep 30) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net Underwriting Income (Loss) | $20,237 | ($17,205) | | Total Investment Income | $52,496 | $36,452 | | **Net Income (Loss)** | **$69,224** | **($9,408)** | | Loss Ratio | 63.8% | 70.6% | | Combined Ratio | 95.5% | 104.8% | - The improvement in the combined ratio for the nine-month period was primarily due to the loss ratio improving by **6.8 points**, driven by lower catastrophe losses compared to 2022[132](index=132&type=chunk) - Gross premiums written for the nine months increased by **20.3%** to **$524.5 million**, with significant growth in the Property line (up **60.9%**) and Casualty line (up **14.6%**)[135](index=135&type=chunk)[138](index=138&type=chunk) [Investment Results](index=38&type=section&id=Investment%20Results) Total investment income for the nine months ended September 30, 2023, reached **$52.5 million**, with the related-party investment fund (SILP) contributing **$27.8 million** in gains Investment Income Breakdown (Nine Months Ended Sep 30, in thousands) | Component | 2023 | 2022 | | :--- | :--- | :--- | | Income from SILP | $27,791 | $24,474 | | Net Investment-Related Income | $24,705 | $11,978 | | **Total Investment Income** | **$52,496** | **$36,452** | - For the nine months ended September 30, 2023, the SILP investment portfolio reported a net return of **9.1%**, driven by gains in its long portfolio (**22.8%**) and macro positions (**2.6%**), which offset losses in the short portfolio (**-12.8%**)[161](index=161&type=chunk)[162](index=162&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=39&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company's financial condition strengthened with shareholders' equity growing to **$575.9 million**, maintaining sufficient liquidity, and simplifying its capital structure by eliminating the dual-class share structure - Total shareholders' equity increased by **$72.7 million** to **$575.9 million** at September 30, 2023, primarily due to the net income of **$69.2 million** reported for the period[176](index=176&type=chunk) - The company's estimated largest probable maximum loss (net of retrocession) at a 1-in-250 year return period for a single event was **$80.3 million**, related to a North Atlantic Hurricane[172](index=172&type=chunk) - The company's dual-class share structure was eliminated, with all Class A and Class B shares being reclassified as a single class of "Ordinary shares"[186](index=186&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks including equity price, commodity price, and interest rate risk, with a **10%** equity decline potentially resulting in a **$10.5 million** loss to its investment portfolio Market Risk Sensitivity Analysis | Risk Factor | Scenario | Impact on Investment Portfolio | | :--- | :--- | :--- | | Equity Price | 10% decline | ($10.5 million) | | Commodity Prices | 10% increase/decrease | +/ - $4.5 million | | Interest Rates | 100 bps increase | +$12.0 million | | Interest Rates | 100 bps decrease | ($11.9 million) | [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures are effective as of September 30, 2023, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures are effective as of the end of the period covered by the report[197](index=197&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[200](index=200&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company does not anticipate any current legal disputes to have a material adverse effect on its financial condition or operating results - The company states that it does not expect any current legal disputes to have a material adverse effect on its business[202](index=202&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - As of September 30, 2023, no material changes have been made to the risk factors disclosed in the 2022 Form 10-K[204](index=204&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a share repurchase plan authorizing up to **$25.0 million** in repurchases, with no shares repurchased during the third quarter of 2023 - The Board of Directors re-approved a share repurchase plan authorizing up to **$25.0 million** of ordinary shares, effective until June 30, 2024[205](index=205&type=chunk) - No shares were repurchased during the third quarter of 2023[206](index=206&type=chunk)
Greenlight Re(GLRE) - 2023 Q2 - Earnings Call Transcript
2023-08-06 13:00
Greenlight Capital Re, Ltd. (NASDAQ:GLRE) Q2 2023 Earnings Conference Call August 3, 2023 9:00 AM ET Company Participants David Sigmon - General Counsel Simon Burton - Chief Executive Officer David Einhorn - Chairman of the Board Faramarz Romer - Chief Financial Officer Conference Call Participants Operator Thank you for joining the Greenlight Capital Re's Second Quarter Earnings Conference. [Operator Instructions] I would like to remind you that this conference call is being recorded and will be available ...
Greenlight Re(GLRE) - 2023 Q2 - Quarterly Report
2023-08-02 21:13
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 June 30, 2023 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(GLRE) - 2023 Q1 - Quarterly Report
2023-05-09 20:54
[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company achieved a **net income** in Q1 2023, reversing prior losses, with **total assets** increasing and cash flow improving [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) - **Total assets** increased to **$1.64 billion** as of March 31, 2023, from **$1.58 billion** at the end of 2022, primarily due to growth in **total investments** and **reinsurance balances receivable**[12](index=12&type=chunk) - **Total liabilities** grew to **$1.13 billion** from **$1.08 billion**, mainly driven by an increase in **loss and loss adjustment expense reserves**. **Convertible senior notes payable** decreased due to repurchases[12](index=12&type=chunk) Balance Sheet Summary (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$1,644,516** | **$1,580,381** | | Total investments | $267,222 | $248,476 | | Restricted cash and cash equivalents | $626,236 | $668,310 | | Reinsurance balances receivable | $581,641 | $505,555 | | **Total Liabilities** | **$1,134,475** | **$1,077,261** | | Loss and loss adjustment expense reserves | $595,799 | $555,468 | | Convertible senior notes payable | $62,381 | $80,534 | | **Total Shareholders' Equity** | **$510,041** | **$503,120** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) - The company achieved a **net income** of **$5.9 million** in Q1 2023, reversing a **net loss** of **$5.7 million** in Q1 2022. This was driven by higher **net premiums earned** and **net investment income**, despite a loss from the related party investment fund[13](index=13&type=chunk) Q1 2023 vs Q1 2022 Performance (in thousands, except EPS) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Gross premiums written | $186,455 | $145,886 | | Net premiums earned | $142,649 | $125,925 | | Total revenues | $154,986 | $133,029 | | Net loss and loss adjustment expenses | $96,725 | $97,407 | | Total expenses | $149,045 | $138,772 | | **Net income (loss)** | **$5,887** | **$(5,727)** | | **Diluted EPS** | **$0.17** | **$(0.17)** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (in thousands) | Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(1,259) | $(11,618) | | Net cash provided by (used in) investing activities | $(22,076) | $33,256 | | Net cash provided by (used in) financing activities | $(17,085) | $— | | **Net decrease in cash** | **$(40,288)** | **$21,638** | - **Cash used in investing activities** was primarily due to a net contribution of **$21.0 million** to the related party investment fund, contrasting with a net redemption of **$36.7 million** in the prior-year period[18](index=18&type=chunk)[165](index=165&type=chunk) - **Financing activities** used **$17.1 million** in cash for the repurchase of **convertible senior notes payable**[18](index=18&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the company's structure, SILP investment, increased loss reserves, catastrophe losses, and convertible note repurchases - The company operates through several subsidiaries, including Greenlight Re in the Cayman Islands, GRIL in Ireland, and provides **underwriting** capacity for Lloyd's syndicates, including its own Greenlight Innovation Syndicate 3456[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - The **investment** in Solasglas Investments, LP (SILP) is treated as a Variable Interest Entity (VIE), with the company concluding it is not the primary beneficiary. The company's **investment** in SILP was **$196.1 million** at March 31, 2023, representing **71.6%** of SILP's **total net assets**[33](index=33&type=chunk)[34](index=34&type=chunk) - For Q1 2023, the company recognized **$10.3 million** in catastrophe and weather-related losses, net of reinsurance, primarily from the Turkey earthquake, New Zealand Cyclone Gabrielle, U.S. convective storms, and 2022's Winter Storm Elliott[54](index=54&type=chunk) - Prior accident year loss estimates increased by **$12.0 million** in Q1 2023, mainly due to **$4.1 million** for Winter Storm Elliott and **$9.8 million** in attritional losses on casualty and property contracts[55](index=55&type=chunk)[57](index=57&type=chunk) - During Q1 2023, the company repurchased and canceled **$17.5 million** of its **4.0%** senior convertible notes due 2023, resulting in a realized gain of **$0.3 million**. The remaining carrying value was **$62.4 million**[63](index=63&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported increased **book value per share**, a shift to **net income**, and improved **underwriting**, offsetting **investment portfolio** losses [Outlook and Trends](index=23&type=section&id=Outlook%20and%20Trends) - Market conditions are considered more favorable than in over a decade due to recent loss events, inflation, and rising interest rates, which have reduced reinsurance capital and led to widespread pricing improvements, especially in property catastrophe, aviation, war, and marine classes[112](index=112&type=chunk) - The company is managing inflation risk by focusing on short-tailed business (estimated reserve payout duration of less than three years), incorporating inflation assumptions into pricing, and minimizing exposure to classes with severe supply-chain inflation[110](index=110&type=chunk) - Premiums from the Greenlight Re Innovations unit, including Syndicate 3456, grew by **57.2%** year-over-year and accounted for **14.9%** of **net premiums written** in Q1 2023, with potential for continued growth[113](index=113&type=chunk) [Key Financial Measures and Non-GAAP Measures](index=24&type=section&id=Key%20Financial%20Measures%20and%20Non-GAAP%20Measures) Book Value Per Share Performance | Metric | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Basic book value per share | $14.82 | $14.66 | | Fully diluted book value per share | $14.75 | $14.59 | | Increase in fully diluted BVPS (%) | 1.1% | N/A | Net Underwriting Income (Loss) Reconciliation (in thousands) | Line Item | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Income (loss) before income tax (GAAP) | $5,941 | $(5,743) | | Total investment (income) loss | $(5,240) | $(7,737) | | Other non-underwriting (income) expense | $(7,097) | $633 | | Corporate expenses | $5,997 | $4,011 | | Interest expense | $776 | $1,154 | | **Net underwriting income (loss) (Non-GAAP)** | **$377** | **$(7,682)** | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Financial performance improved in Q1 2023, driven by **net income**, positive **underwriting**, and increased **gross premiums**, despite **investment income** decline Underwriting Ratio Summary | Ratio | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Loss ratio | 67.8% | 77.4% | | Acquisition cost ratio | 29.1% | 26.2% | | Underwriting expense ratio | 2.9% | 2.6% | | **Combined ratio** | **99.8%** | **106.2%** | - **Gross premiums written** increased by **$40.6 million** (**27.8%**) in Q1 2023, with significant growth in Property (**+63.9%**), Casualty (**+21.6%**), and Other (**+24.0%**) lines, driven by favorable pricing and new contracts[130](index=130&type=chunk) - The **investment portfolio** managed by DME Advisors (SILP) reported a loss of **1.1%** in Q1 2023, compared to a **1.7%** gain in Q1 2022. The loss was driven by the short portfolio (**-9.0%**) and macro positions (**-0.3%**), which offset gains in the long portfolio (**+8.9%**)[144](index=144&type=chunk)[146](index=146&type=chunk) - Other income was **$7.1 million**, a significant positive swing from a **$0.6 million** expense in Q1 2022, primarily due to **$4.9 million** in foreign exchange gains and higher **investment income** from Funds at Lloyd's business[128](index=128&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=35&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) - **Total investments** increased by **$18.7 million** to **$267.2 million** at March 31, 2023, mainly due to a net contribution into the SILP fund resulting from the release of **restricted cash**[149](index=149&type=chunk) - **Restricted cash and cash equivalents** decreased by **$42.1 million** to **$626.2 million**, primarily due to the release of collateral from cedents for legacy contracts in run-off[153](index=153&type=chunk) - **Gross loss and loss adjustment expense reserves** increased by **7.3%** to **$595.8 million** during the quarter[156](index=156&type=chunk) - The company is arranging to refinance its **convertible senior notes** that mature in August 2023. If unsuccessful, it may use alternative financing, cash on hand, or withdrawals from SILP to fund the settlement[171](index=171&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's market risk profile saw changes in Q1 2023, with hypothetical impacts on its **investment portfolio** from equity, commodity, and interest rate movements Market Risk Sensitivity Analysis (as of March 31, 2023) | Risk Factor | Scenario | Impact on Investment Portfolio | | :--- | :--- | :--- | | Equity Price | -10% price decline | $(12.0) million | | Commodity Price | +10% price increase | $4.9 million | | Interest Rate | +100 bps rate increase | $7.5 million | | Interest Rate | -100 bps rate decrease | $(5.8) million | - The company's net exposure to foreign currency risk from reinsurance liabilities is relatively small, with a hypothetical **10%** adverse movement in GBP and Euro rates resulting in a **net loss** of **$0.3 million**[178](index=178&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[180](index=180&type=chunk) - No material changes were made to the company's internal control over financial reporting during the fiscal quarter ended March 31, 2023[183](index=183&type=chunk) [PART II — OTHER INFORMATION](index=40&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal disputes, none of which are expected to materially adversely affect its financial condition or operations - The company states that while it is involved in routine legal disputes and arbitrations, none are expected to have a material adverse effect on its business or financial condition[185](index=185&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2022 Form 10-K - As of March 31, 2023, no material changes have occurred to the risk factors previously disclosed in the company's 2022 Form 10-K[187](index=187&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No Class A ordinary shares were repurchased in Q1 2023, but the Board re-approved a **$25.0 million** share repurchase plan - No Class A ordinary shares were repurchased during Q1 2023[189](index=189&type=chunk) - The Board re-approved the **$25.0 million** share repurchase plan, extending it from July 1, 2023, to June 30, 2024[188](index=188&type=chunk)
Greenlight Re(GLRE) - 2022 Q4 - Earnings Call Transcript
2023-03-09 15:23
Greenlight Capital Re, Ltd. (NASDAQ:GLRE) Q4 2022 Results Conference Call March 9, 2023 9:00 AM ET Company Participants Karin Daly - Investor Relations Simon Burton - Chief Executive Officer David Einhorn - Chairman of the Board Neil Greenspan - Chief Financial Officer Faramarz Romer - Chief Accounting Officer Operator Thank you for joining the Greenlight Capital Re Limited Fourth Quarter and Year-End December 31, 2022, Earnings Conference Call. [Operator Instructions] It is now my pleasure to turn the call ...
Greenlight Re(GLRE) - 2022 Q4 - Annual Report
2023-03-08 21:34
PART I [Business](index=5&type=section&id=Item%201.%20BUSINESS) The company is a global specialty property and casualty reinsurer with a dual strategy of traditional underwriting and a value-oriented investment approach - The company employs a two-pillar strategy: 1) Traditional property and casualty reinsurance, and 2) Risk innovation and strategic partnerships through its Greenlight Re Innovations unit[23](index=23&type=chunk)[24](index=24&type=chunk) - The investment strategy is non-traditional, managed by value-oriented advisor DME Advisors, focusing on long and short positions in publicly-traded securities to achieve **higher long-term returns** than typical reinsurance investment portfolios[21](index=21&type=chunk)[24](index=24&type=chunk) - The company has a high concentration of business from a small number of brokers, with **five brokerage firms accounting for 69.4%** of gross premiums written in 2022[33](index=33&type=chunk) Gross Premiums Written by Line of Business (2020-2022) | Line of Business | 2022 ($ in millions) | 2021 ($ in millions) | 2020 ($ in millions) | | :--- | :--- | :--- | :--- | | **Property** | **85.3** | **52.9** | **58.5** | | Commercial | 14.8 | 10.9 | 11.2 | | Motor | 2.3 | 30.0 | 33.1 | | Personal | 68.2 | 12.1 | 14.2 | | **Casualty** | **325.1** | **379.1** | **302.2** | | General Liability | 60.3 | 18.0 | 4.2 | | Motor Liability | 8.6 | 118.3 | 127.4 | | Professional Liability | 1.9 | 0.3 | 0.2 | | Workers' Compensation | 28.4 | 62.2 | 82.2 | | Multi-line | 225.9 | 180.3 | 88.2 | | **Other** | **152.7** | **133.3** | **119.1** | | **Total** | **$563.2** | **$565.4** | **$479.8** | Gross Premiums Written by Geographic Area (2020-2022) | Geographic Area | 2022 ($ in millions) | 2021 ($ in millions) | 2020 ($ in millions) | | :--- | :--- | :--- | :--- | | U.S. and Caribbean | 295.4 | 316.0 | 390.0 | | Worldwide | 242.6 | 240.3 | 84.2 | | Asia | 20.3 | 4.6 | 5.6 | | Europe | 4.8 | 4.5 | 0.0 | | **Total** | **$563.2** | **$565.4** | **$479.8** | [Glossary of Selected Reinsurance Terms](index=20&type=section&id=GLOSSARY%20OF%20SELECTED%20REINSURANCE%20TERMS) This section defines key reinsurance and insurance terms used in the report, covering premiums, losses, contract types, and financial metrics [Risk Factors](index=24&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces material risks from underwriting and investment volatility, potential rating downgrades, uncertain loss reserves, and its non-traditional investment strategy - A downgrade or withdrawal of the company's **"A- (Excellent)" A.M. Best rating** would severely limit its ability to write new reinsurance contracts[124](index=124&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - The company's investment performance is highly dependent on the Solasglas Investments, LP (SILP) fund, which employs a **volatile, value-oriented strategy** that may be concentrated in a few large positions[186](index=186&type=chunk)[189](index=189&type=chunk) - There is a significant risk that the company could be classified as a **Passive Foreign Investment Company (PFIC)**, which would have adverse tax consequences for U.S. shareholders[261](index=261&type=chunk)[262](index=262&type=chunk)[270](index=270&type=chunk) - The company is vulnerable to losses from unpredictable catastrophic events, and **climate change may increase the frequency and severity** of these events[149](index=149&type=chunk)[150](index=150&type=chunk) [Unresolved Staff Comments](index=49&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reports no unresolved staff comments from the SEC - None[282](index=282&type=chunk) [Properties](index=50&type=section&id=ITEM%202.%20PROPERTIES) The company leases sufficient office space for its current operations in Grand Cayman and Dublin - The company leases office space in Grand Cayman (expiring 2026) and Dublin (expiring 2031, with a 2026 termination option)[283](index=283&type=chunk) [Legal Proceedings](index=50&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) Management believes no existing legal disputes will have a material adverse effect on the company's financial condition - The company is not currently involved in any legal proceedings that are expected to have a **material adverse effect** on its business[284](index=284&type=chunk) [Mine Safety Disclosures](index=50&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - Not applicable[285](index=285&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=50&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT'S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%2C%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's Class A shares trade on Nasdaq, no dividends have been paid, and a share repurchase plan is active - The company's Class A ordinary shares trade on the Nasdaq Global Select Market under the symbol **"GLRE"**[287](index=287&type=chunk) - The company has **not paid any cash dividends** since its inception and does not intend to in the foreseeable future[288](index=288&type=chunk)[290](index=290&type=chunk) - A share repurchase plan is authorized for up to **$25.0 million** of Class A ordinary shares, effective until June 30, 2023[293](index=293&type=chunk) - **No share repurchases** were made under the plan during the three months ended December 31, 2022[295](index=295&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=ITEM%207.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Strong investment performance drove net income growth in 2022, offsetting underwriting losses from catastrophes and the Russia-Ukraine conflict - The 2022 underwriting loss was primarily driven by **$13.6 million in losses** from the Russia-Ukraine conflict and **$25.7 million** from Hurricane Ian and other natural catastrophes[363](index=363&type=chunk) - The investment in SILP generated a **net return of 25.3%** in 2022, a significant driver of the company's overall net income[309](index=309&type=chunk)[385](index=385&type=chunk) - The company is addressing inflation by focusing on short-tailed business, with an estimated payout duration of existing reserves of **approximately two years**[306](index=306&type=chunk)[313](index=313&type=chunk) Key Financial Results (2022 vs. 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net Income | $25.3 million | $17.6 million | | Net Underwriting Loss | ($10.7 million) | ($5.2 million) | | Total Investment Income | $69.0 million | $50.2 million | | Combined Ratio | 102.3% | 100.9% | | Fully Diluted Book Value Per Share | $14.59 | $13.99 | [Quantitative and Qualitative Disclosures About Market Risk](index=75&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's principal market risks, primarily from its SILP investment, include equity price, commodity, currency, and interest rate exposures - A hypothetical **10% decline in equity prices** would result in an estimated **$8.1 million loss** to the Company's Investment Portfolio as of December 31, 2022[439](index=439&type=chunk) - As of December 31, 2022, a **100 basis point increase or decrease in interest rates** would result in a **$4.4 million gain or a $4.9 million loss**, respectively, to the Investment Portfolio in SILP[453](index=453&type=chunk) - The company has foreign currency risk from contracts denominated in GBP and EUR; a 10% adverse move in the GBP/USD and EUR/USD rates would cause a **$0.6 million loss** and **$1.1 million loss**, respectively[448](index=448&type=chunk) Impact of 10% Commodity Price Change on Investment Portfolio | Commodity | 10% Increase ($ in millions) | 10% Decrease ($ in millions) | | :--- | :--- | :--- | | Gold | $3.6 | ($3.6) | | Silver | $0.3 | ($0.3) | | Uranium | $0.3 | ($0.3) | | Crude oil | $0.2 | ($0.2) | | **Total** | **$4.4** | **($4.4)** | [Financial Statements and Supplementary Data](index=77&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents the company's audited consolidated financial statements and the independent auditor's unqualified opinion for the year ended December 31, 2022 Consolidated Balance Sheet Highlights (As of Dec 31) | Account | 2022 ($ in millions) | 2021 ($ in millions) | | :--- | :--- | :--- | | Total Investments | 248.5 | 231.0 | | Total Assets | 1,580.4 | 1,427.5 | | Loss and Loss Adjustment Expense Reserves | 555.5 | 524.0 | | Total Liabilities | 1,077.3 | 951.8 | | Total Shareholders' Equity | 503.1 | 475.7 | Consolidated Statement of Operations Highlights (Year Ended Dec 31) | Account | 2022 ($ in millions) | 2021 ($ in millions) | | :--- | :--- | :--- | | Net Premiums Earned | 469.5 | 539.3 | | Total Revenues | 526.7 | 588.6 | | Net Loss and LAE Incurred | 316.5 | 375.0 | | Total Expenses | 502.2 | 567.2 | | Net Income | 25.3 | 17.6 | | Diluted EPS | $0.73 | $0.51 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=77&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) This item is not applicable as there were no changes in or disagreements with accountants - Not applicable[458](index=458&type=chunk) [Controls and Procedures](index=77&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and internal control over financial reporting were effective as of year-end 2022 - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2022[459](index=459&type=chunk) - There were **no material changes** in internal control over financial reporting during the fourth quarter of 2022[462](index=462&type=chunk) - Management concluded that the system of internal control over financial reporting was **effective** as of December 31, 2022, which was audited by Deloitte Ltd., which issued an unqualified opinion[464](index=464&type=chunk)[466](index=466&type=chunk) [Other Information](index=79&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) The company reports no other information for this item - None[472](index=472&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=79&type=section&id=ITEM%209C.%20DISCLOSURE%20REGARDING%20FOREIGN%20JURISDICTIONS%20THAT%20PREVENT%20INSPECTIONS) This item is not applicable to the company - Not applicable[473](index=473&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=79&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Information for this item will be incorporated by reference from the company's definitive proxy statement [Executive Compensation](index=79&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) Information for this item will be incorporated by reference from the company's definitive proxy statement [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=79&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Information for this item will be incorporated by reference from the company's definitive proxy statement [Certain Relationships and Related Transactions, and Director Independence](index=80&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Information for this item will be incorporated by reference from the company's definitive proxy statement [Principal Accounting Fees and Services](index=80&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTING%20FEES%20AND%20SERVICES) Information for this item will be incorporated by reference from the company's definitive proxy statement PART IV [Exhibits and Financial Statement Schedules](index=81&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists all documents filed with the Form 10-K, including financial statements, schedules, and material contracts - This section lists all financial statements, schedules, and exhibits filed with the Form 10-K[481](index=481&type=chunk) - The audited financial statements of the related-party investment fund, **Solasglas Investments, LP**, are filed as Exhibit 99.1[481](index=481&type=chunk) [Form 10-K Summary](index=81&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY) The company has not provided a summary for this item - None[482](index=482&type=chunk)
Greenlight Re(GLRE) - 2022 Q3 - Earnings Call Transcript
2022-11-05 22:03
Greenlight Capital Re, Ltd. (NASDAQ:GLRE) Q3 2022 Results Conference Call November 3, 2022 9:00 AM ET Company Participants Simon Burton - Chief Executive Officer David Einhorn - Chairman Neil Greenspan - Chief Financial Officer Operator Thank you for joining the Greenlight Re Conference Call for the Third Quarter of 2022 Earnings. The Company reminds you that forward-looking statements that may be made in this call are intended to be covered by the safe harbor provisions of the Private Securities Litigation ...
Greenlight Re(GLRE) - 2022 Q2 - Earnings Call Transcript
2022-08-03 19:46
Greenlight Capital Re, Ltd. (NASDAQ:GLRE) Q2 2022 Earnings Conference Call August 3, 2022 9:00 AM ET Company Participants Simon Burton - Chief Executive Officer David Einhorn - Chairman Neil Greenspan - Chief Financial Officer Operator Good morning and thank you for joining the Greenlight Re Conference Call for the Second Quarter of 2022 Earnings. At this time, all participants are in a listen-only mode. The company reminds you that forward-looking statements that maybe made in this call are intended to be ...