Greenlight Re(GLRE)

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Greenlight Re(GLRE) - 2022 Q1 - Earnings Call Transcript
2022-05-05 01:10
Greenlight Capital Re, Ltd. (NASDAQ:GLRE) Q1 2022 Earnings Conference Call April 4, 2022 9:00 AM ET Company Participants Simon Burton - CEO David Einhorn - Chairman Neil Greenspan - CFO Conference Call Participants Operator Thank you for joining the Greenlight Re Conference Call for the First Quarter of 2022 Earnings. The company reminds you that forward-looking statements may be made on this call are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 19 ...
Greenlight Re(GLRE) - 2022 Q1 - Quarterly Report
2022-05-03 21:09
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, 2022 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) - 2021 Q4 - Earnings Call Transcript
2022-03-09 18:28
Greenlight Capital Re, Ltd. (NASDAQ:GLRE) Q4 2021 Earnings Conference Call March 9, 2022 9:00 AM ET Company Participants David Einhorn - Chairman Simon Burton - CEO Neil Greenspan - CFO Conference Call Participants David Bell - Bell Brands Desmond Kinch - OAM Operator Good day, and thank you for joining the Greenlight Re Conference Call for the Fourth Quarter of 2021 Earnings. All participants will be in a listen-only mode. [Operator instructions]. Please note, this event is being recorded. The Company remi ...
Greenlight Re(GLRE) - 2021 Q3 - Earnings Call Transcript
2021-11-06 21:29
Financial Data and Key Metrics Changes - The company reported a net loss of $13.9 million or $0.42 per share for the third quarter, with a reduction in fully diluted book value per share to $13.25, a 2.6% decrease from June 30 [23][24]. - The underwriting loss for the quarter was $12.6 million, resulting in a combined ratio of 109.3%, which included $26 million of catastrophe losses contributing 19.1 percentage points to the combined ratio [24][7]. - Gross premiums written were $128.7 million, down 5% from the third quarter of 2020, primarily due to reduced participation in motor contracts [25]. Business Line Data and Key Metrics Changes - The company observed a reduction in motor liability premiums due to increased accident frequency and claims severity, with plans to further reduce auto exposure in 2022 [8]. - In the financial class, written premiums increased due to a rebound in demand for reps and warranty insurance from M&A activity [9]. - The innovations unit reported an investment gain of $9.6 million, a 31% increase from the prior quarter, representing approximately 6% of total written premium year-to-date [11]. Market Data and Key Metrics Changes - The reinsurance industry faced challenges from high incidences of large losses related to catastrophic events, impacting overall market conditions [7]. - The company expressed skepticism about the market's response to another loss-making year in the property catastrophe class, indicating that rate increases were disappointing due to new capital replenishing supply [10]. Company Strategy and Development Direction - The company aims to enhance underwriting products and quality of return through proprietary strategic partnerships, particularly in the innovations unit [11]. - Management indicated a moderate approach to catastrophe exposure, suggesting that while current exposure is reasonable, they do not expect to take an outsized position in the catastrophe business [39][40]. - The company is focused on repositioning its portfolio away from auto insurance while maintaining a balanced approach to catastrophe risks [40][71]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of economic inflation on the auto segment, noting proactive measures taken to reduce exposure [62]. - The company remains optimistic about the underlying reinsurance trends despite recent underwriting losses, emphasizing improvements in business quality [19][72]. - Management is closely monitoring the potential implications of global minimum tax regulations but does not view it as a significant concern at this time [66][67]. Other Important Information - The company completed its annual review with A.M. Best, resulting in the reaffirmation of its A rating and an uplift in outlook to stable [12]. - Total general and administrative expenses increased by 18% year-over-year, driven by the growth of the innovations unit and higher professional fees [26]. Q&A Session Summary Question: Clarification on the $9.6 million innovation gain - Management clarified that the gain was not realized but marked up based on a new valuation from a capital raise [30]. Question: Future growth expectations for innovations - Management indicated that innovations represent 6% of written premiums and expect significant growth potential, though specific guidance was withheld [36]. Question: Portfolio repositioning details - Management confirmed a focus on reducing auto exposure while maintaining a reasonable level of catastrophe risk [40][71]. Question: Breakdown of catastrophe losses - The largest loss was attributed to Hurricane Ida at approximately $18 million, with additional losses from European floods and South African riots [64]. Question: Discussion on winding down the insurance operation - Management emphasized that the core operational objective remains reinsurance, and while alternatives were considered, the current strategy is deemed the best for shareholders [73][74].
Greenlight Re(GLRE) - 2021 Q2 - Earnings Call Transcript
2021-08-04 17:28
Greenlight Capital Re, Ltd. (NASDAQ:GLRE) Q2 2021 Earnings Conference Call August 4, 2021 9:00 AM ET Company Representatives Simon Burton - Chief Executive Officer David Einhorn - Chairman Neil Greenspan - Chief Financial Officer Conference Call Participants Kyle LaBarre - Dowling & Partners Operator Thank you for joining the Greenlight Re Conference Call for the Second Quarter of 2021 Earnings. The company reminds you that forward-looking statements that may be made in this call are intended to be covered ...
Greenlight Re(GLRE) - 2021 Q1 - Earnings Call Transcript
2021-05-08 19:19
Financial Data and Key Metrics Changes - The company's book value per share grew by 0.5% in Q1 2021, ending at $13.49 per share [26] - Net income for the quarter was $6.5 million, or $0.19 per share, primarily driven by investment gains [26] - The underwriting loss for the quarter was $2.0 million, with a combined ratio of 101.5% [26] Business Line Data and Key Metrics Changes - Gross written premiums increased by 55% to $170 million compared to Q1 2020, largely due to multi-line quota share contracts covering several Lloyd's syndicates [4][27] - The property catastrophe class saw disappointing results at the January 1 renewals, with rates not increasing sufficiently to compensate for risks [6] - The company intends to reduce exposure in motor liability and workers' compensation classes as business renews over the coming year [5] Market Data and Key Metrics Changes - The reinsurance market showed improved conditions, particularly in marine and specialty classes, while the property catastrophe class faced challenges due to new capital influx [5][6] - The company observed a slight slowing of rate momentum in the Florida market, which may affect affordability for carriers [33] Company Strategy and Development Direction - The company is focused on growing and repositioning its underwriting business to capitalize on improved market conditions [4] - There is a strong emphasis on capital deployment across various strategies, including innovation and core reinsurance business [39] - The company has identified opportunities for investments in innovative companies, such as Nimbla and Player's Health [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underwriting portfolio's performance despite a small underwriting loss related to Storm Uri [15] - Concerns about social inflation were noted, but management believes their exposure is less than that of many peers [37] - The relationship with A.M. Best is strong, and management is optimistic about future ratings based on improved underwriting performance [41] Other Important Information - The company reported total general and administrative expenses of $7.5 million, an 11% increase over Q1 2020, primarily due to additional incentive compensation costs [28] - A new share repurchase plan has been approved, allowing the company to buy back up to $25 million of ordinary shares [29] - The company is committed to improving corporate governance following disappointing voting outcomes at the annual meeting [16][22] Q&A Session Summary Question: Insights on rate trends and loss cost trends - Management noted that while rates have moderated, they are observing similar trends to peers, with disappointment in the property catastrophe class [32] - There are concerns about affordability in the Florida market due to slowing rate momentum [33] Question: Capital deployment strategy - Management sees numerous opportunities for capital deployment across various strategies, including innovation and core reinsurance [39] Question: A.M. Best rating discussions - Management maintains a productive relationship with A.M. Best and is optimistic about future ratings based on improved underwriting performance [41]
Greenlight Re(GLRE) - 2020 Q4 - Earnings Call Transcript
2021-03-11 18:55
Financial Data and Key Metrics Changes - Fully diluted book value per share grew 11.6% in Q4 2020, ending at $13.42 per share [24] - Net income for Q4 2020 was $42 million or $1.20 per share, primarily driven by gains in the Solasglas investment [24] - The company reported an underwriting loss of $1.1 million during Q4 2020, with a combined ratio of 101% [24][28] - For the full year 2020, net income was $3.9 million or $0.11 per share, with a total underwriting loss of $1.6 million and a combined ratio of 100.4% [27][28] Business Line Data and Key Metrics Changes - Net written premiums for Q4 2020 were $117.7 million, up 20% from Q4 2019, largely due to new business written during 2020 [25] - Total general and administrative expenses for Q4 2020 were $8.3 million, a 13% increase from Q4 2019, mainly due to additional incentive compensation costs [26] - Total net investment income for Q4 2020 was $48.4 million, including $38.5 million from Solasglas [26] Market Data and Key Metrics Changes - The Solasglas fund returned 8.4% in Q4 2020, with longs contributing 14.1% and shorts detracting 4.9% [15] - The S&P 500 Index returned 12.1% during the same quarter [15] Company Strategy and Development Direction - The company has transformed its underwriting business over the past three years, focusing on higher margin business and minimizing systemic risk concentration [7][9] - The innovations business is growing and is seen as a source of attractive underwriting opportunities and investment gains [9][10] - The company is focused on cash efficiency and has made improvements in this area [62] Management's Comments on Operating Environment and Future Outlook - Management noted that 2020 was a challenging year for the reinsurance industry, but the company's performance was strong relative to the industry backdrop [5][22] - The underwriting environment is improving, and the company sees significant opportunities in various areas, including innovations and value investing [39][40] - Management emphasized the importance of focusing on margin expansion rather than just premium growth [41] Other Important Information - The company repurchased approximately 700,000 shares at an average cost of $7.60 per share during Q4 2020 [30] - The company established a service company in London to increase visibility and access to key markets [13] Q&A Session Summary Question: Impact of winter storms on exposure and rate environment - Management indicated that the company's exposure to the winter storms is limited, as they do not write much personal and commercial property directly in Texas [36] Question: Capital deployment strategy for 2021 - Management sees great opportunities in underwriting and innovations, with a focus on margin expansion rather than just premium growth [39][41] Question: COVID losses split between IBNR and actual case reserves - The majority of COVID losses are IBNR, with net financial impact being $7.1 million [42][43] Question: Changes in catastrophe load and combined ratio targets - Management stated that they are cautious about tail exposure and do not provide specific combined ratio targets [50][54] Question: AM Best rating and negative outlook - Management has a positive relationship with AM Best and is working towards removing the negative outlook, but specific criteria are not disclosed [57] Question: Use of restricted cash for traditional investments - Management noted that restricted cash is a common requirement for rated reinsurance companies, but they are focused on cash efficiency [62][65]
Greenlight Re(GLRE) - 2020 Q3 - Earnings Call Transcript
2020-11-08 08:36
Greenlight Capital Re Ltd (NASDAQ:GLRE) Q3 2020 Earnings Conference Call November 5, 2020 9:00 AM ET Company Participants Simon Burton - CEO, Chief Underwriting Officer & Director David Einhorn - Chairman Neil Greenspan - CFO Conference Call Participants Mikel Abasolo - Solo Capital Management Suleman Soorani - Tricap Investments Operator Thank you for joining the Greenlight Re Conference Call for the Third Quarter of 2020 Earnings. The company reminds you that forward-looking statements that may be made i ...
Greenlight Re(GLRE) - 2020 Q3 - Quarterly Report
2020-11-04 21:12
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 September 30, 2020 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) - 2020 Q2 - Earnings Call Transcript
2020-08-09 10:09
Greenlight Capital Re, Ltd. (NASDAQ:GLRE) Q2 2020 Earnings Conference Call August 6, 2020 9:00 AM ET Company Participants Simon Burton - Chief Executive Officer David Einhorn - Chairman Tim Courtis - Chief Financial Officer Conference Call Participants Mikel Abasolo - Solo Capital Management Operator Good day and thank you for joining the Greenlight Re Conference Call for the Second Quarter of 2020 Earnings. The company reminds you that forward-looking statements that may have been made in this call are int ...