Greenlight Re(US:GLRE)2022-05-05 01:10Financial 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]