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 ...

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Greenlight Capital Re, Ltd.'s unaudited condensed consolidated financial statements, reporting **$9.1 million net income** for the first six months of 2022 and **$1.49 billion in total assets** [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$1,493,123** | **$1,427,494** | | Total Investments | $255,065 | $230,975 | | Cash and cash equivalents | $28,000 | $76,307 | | Restricted cash and cash equivalents | $669,603 | $634,794 | | **Total Liabilities** | **$1,008,830** | **$951,831** | | Loss and loss adjustment expense reserves | $526,445 | $524,010 | | Unearned premium reserves | $268,254 | $227,584 | | **Total Shareholders' Equity** | **$484,293** | **$475,663** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Gross Premiums Written | $134,780 | $141,579 | $280,666 | $311,514 | | Net Premiums Earned | $110,219 | $132,479 | $236,144 | $267,875 | | Total Revenues | $121,418 | $134,516 | $254,447 | $287,855 | | Total Expenses | $106,621 | $133,889 | $245,393 | $276,995 | | **Net Income (Loss)** | **$14,788** | **$628** | **$9,061** | **$7,127** | | **Diluted EPS** | **$0.37** | **$0.02** | **$0.23** | **$0.21** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(14,014) | $(19,835) | | Net cash provided by (used in) investing activities | $636 | $17,153 | | Net cash provided by (used in) financing activities | $0 | $(6,748) | | **Net increase (decrease) in cash** | **$(13,498)** | **$(9,430)** | | Cash, cash equivalents and restricted cash at end of period | $697,603 | $744,876 | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, financial instruments, loss reserves including **$13.6 million for the Russia-Ukraine conflict**, and share capital structure - The company's investment in the related party investment fund, Solasglas Investments, LP (SILP), had a net asset value of **$189.3 million** as of June 30, 2022, representing **76.0%** of SILP's total net assets[59](index=59&type=chunk) - Loss and loss adjustment expense reserves as of June 30, 2022, included an estimated **$13.6 million** related to the Russian-Ukrainian conflict[77](index=77&type=chunk) - The company adopted ASU 2020-06 for convertible instruments in Q1 2022, resulting in a **$2.5 million decrease** in opening shareholders' equity and a corresponding increase in the carrying value of senior convertible notes[55](index=55&type=chunk) - The company has a share repurchase plan authorizing up to **$25.0 million** of Class A ordinary shares, expiring on June 30, 2023, with no shares repurchased in the six months ended June 30, 2022[95](index=95&type=chunk)[96](index=96&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, highlighting **$9.1 million net income** for the first six months, **$14.10 fully diluted book value per share**, and strategic shifts in underwriting to mitigate inflation and grow specialty lines Key Financial Performance (Six Months Ended June 30) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net Income | $9.1 million | $7.1 million | | Fully Diluted Book Value Per Share | $14.10 | $13.60 (at June 30, 2021) | | Combined Ratio | 99.3% | 99.0% | | Total Investment Income | $24.9 million | $20.7 million | - Underwriting results for the first half of 2022 include **$13.6 million** of losses from the Russian-Ukrainian conflict, contributing **5.8 percentage points** to the combined ratio[154](index=154&type=chunk)[180](index=180&type=chunk) - Management addresses inflation by focusing on short-tailed business, incorporating inflation assumptions in pricing, and minimizing exposure to supply-chain-driven inflation classes[156](index=156&type=chunk) - The Innovations unit continues to grow, with related premiums accounting for approximately **13%** of net premiums written in the first half of 2022, alongside the launch of its insurtech-focused Lloyd's syndicate (Syndicate 3456)[158](index=158&type=chunk)[159](index=159&type=chunk) Investment Portfolio Performance (Managed by DME Advisors) | Period | 2022 Return | 2021 Return | | :--- | :--- | :--- | | Three months ended June 30 | 4.9% | (0.9)% | | Six months ended June 30 | 6.7% | 0.5% | [Quantitative and Qualitative Disclosures about Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the company's exposure to market risks, including equity price, commodity price, foreign currency, and interest rate fluctuations, quantifying potential impacts on the investment portfolio - A **10% decline** in underlying listed equity securities and derivatives would result in a **$3.4 million loss** to the company's Investment Portfolio[253](index=253&type=chunk) - A **10% increase** in gold prices would result in a **$3.7 million gain**, while a **10% decrease** would result in a **$3.7 million loss** to the Investment Portfolio[257](index=257&type=chunk) - A **10% adverse move** in the GBP/USD rate would result in a **$1.7 million loss**, and a **10% adverse move** in the EUR/USD rate would result in a **$0.6 million loss**[260](index=260&type=chunk) - A **100 basis point increase** in interest rates would result in an estimated **$1.3 million loss** on funds held by cedents and a **$0.2 million loss** to the SILP investment portfolio[264](index=264&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting during the quarter - 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[270](index=270&type=chunk) - No material changes in internal control over financial reporting occurred during the fiscal quarter ended June 30, 2022[273](index=273&type=chunk) [PART II — OTHER INFORMATION](index=53&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal disputes, but management does not anticipate any material adverse effects on its financial condition or results - The company is involved in various dispute resolution procedures in the ordinary course of business but does not expect any existing disputes to have a material adverse effect on its financial condition or results[275](index=275&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2021 Form 10-K and Q1 2022 Form 10-Q were reported as of June 30, 2022 - There have been no material changes to the risk factors disclosed in the company's 2021 Form 10-K and Q1 2022 Form 10-Q as of June 30, 2022[278](index=278&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Board re-approved a share repurchase plan for up to **$25.0 million** of Class A ordinary shares, effective until June 30, 2023, with no repurchases made in Q2 2022 - The Board of Directors re-approved a share repurchase plan authorizing up to **$25.0 million** of Class A ordinary shares, effective until June 30, 2023[279](index=279&type=chunk) - No share repurchases were made during the three months ended June 30, 2022[281](index=281&type=chunk) [Defaults Upon Senior Securities](index=54&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - None[282](index=282&type=chunk) [Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the company's operations - Not applicable[283](index=283&type=chunk) [Other Information](index=54&type=section&id=Item%205.%20Other%20Information) No other material information was reported in this section - None[283](index=283&type=chunk) [Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL financial data - Exhibits filed include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, and financial statements formatted in Inline XBRL[286](index=286&type=chunk)

Financial Data and Key Metrics Changes - The fully diluted book value per share decreased by 2.4% to $13.65 from December 31, 2021 [18] - The net loss for the quarter was $5.7 million, equating to $0.17 per share [18] - The underwriting loss for the quarter was $7.7 million, resulting in a combined ratio of 106.2% [18] Business Line Data and Key Metrics Changes - Gross premiums written were $145.9 million, a decrease of 14% from Q1 2021, primarily due to reduced participation in motor and worker's compensation contracts [19] - Growth was noted in specialty, general liability, and multiline business, including premiums generated by the company's innovation partners [19] Market Data and Key Metrics Changes - The Russian-Ukrainian conflict contributed $13.6 million or 10.8 percentage points to the combined ratio [6][18] - Market studies indicated that rates have improved in each of the last 17 quarters, with ongoing support from the Russian-Ukrainian conflict and reduced underwriting capital [8] Company Strategy and Development Direction - The company launched the Greenlight Innovation Syndicate 3456 under the Lloyd's syndicates-in-a-box initiative, which is central to its strategy [9] - The focus is on growing the insurtech portfolio and supporting existing partnerships [10] Management's Comments on Operating Environment and Future Outlook - The management noted the withdrawal of reinsurance capacity due to poor profitability in the industry over recent years, but market conditions are improving [8] - The company expects to see better business mix and continued rate improvement as lower margin business runs off [9] - Management is monitoring the ongoing situation in Ukraine closely, with no specific data on emerging losses since March 31 [47] Other Important Information - The company reported total net investment income of $7.7 million for the quarter, with $4.1 million from the Solasglas fund and $3.7 million from other investments [21] - General and administrative expenses were $7.2 million, slightly down from $7.5 million in Q1 2021 [21] Q&A Session Summary Question: Growth of insurtech and future expectations - Management indicated that the insurtech innovations unit is growing steadily and is a substantial part of the organization, but specific forecasts were not provided [25][28] Question: Bond debt refinancing plans - Management acknowledged awareness of the bond maturing in August and stated that they are considering options in an orderly manner [30] Question: Understanding net position and assets - Management clarified that they are investing about 50% of the surplus and discussed the relationship between surplus and profit [32][34] Question: Surplus in the Solasglas fund and share buybacks - Management confirmed that there has been no change regarding the percentage managed in the Solasglas fund and that the lack of share buybacks is not related to this [41] Question: Return on allocated capital in insurance - Management emphasized the importance of capital allocation and the balance achieved, noting the shorter tail nature of their insurance portfolio [44][46] Question: Future IPOs of partners - Management stated that while liquidity options are always considered, there are no definitive plans for IPOs from their partners at this time [49]

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 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbol(s) | Name of exchange | | --- | --- | --- | | Class A ordinary shares | GLRE | The Nasdaq Stock Market LLC | ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...

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].

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, 2021 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. (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 ...

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]