Greenlight Re(US:GLRE)2020-08-09 10:09Financial Data and Key Metrics Changes - The company reported a small net loss of $63,000 for Q2 2020, compared to a net income of $15.3 million for the same period in 2019 [23] - For the first six months of 2020, the net loss was $40.3 million, compared to a net income of $21.2 million for the first half of 2019 [23] - The net loss per share was $1.12, compared to net income of $0.58 per fully diluted share for the same period in 2019 [23] - Book value per share increased by 1.5% to $11.81 as of June 30, 2020, from $11.63 at March 31, 2020, but decreased by 13% from $13.58 at June 30, 2019 [29] Business Line Data and Key Metrics Changes - Net premiums earned were $219.4 million for the first six months of 2020, an 11% decrease from the prior year period, primarily due to the non-renewal of certain auto business [24] - The company reported a small underwriting loss of $1.3 million during the quarter, resulting in a combined ratio of 101.2% [24] - COVID-19 net loss estimates of $6 million contributed 5.5 percentage points to the total combined ratio [25] Market Data and Key Metrics Changes - The company has seen improvements in market conditions, with risk placements in specialty classes showing significantly improved terms [7] - The pandemic's impact on the company's exposure has been manageable, with minimal exposure to highly affected lines of business [8] Company Strategy and Development Direction - The company has expanded its lines of business and increased participation in higher-margin contracts, replacing lower-performing quota share contracts [6] - The strategy includes a focus on share repurchases, with approximately 1.16 million shares repurchased at an average cost of $6.69 per share [28] - The company plans to increase its investment portfolio from roughly one-third to 50% of surplus while diversifying its composition [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the hardening reinsurance market and the potential for improved market conditions [21] - The company is focused on executing plans to build shareholder value as market conditions improve [13] Other Important Information - General and administrative expenses decreased by approximately 12% to $12.9 million for the first half of 2020, primarily due to lower personnel costs [26] - AM Best affirmed the company's A- rating, amidst a trend of ratings downgrades in the industry [13] Q&A Session Summary Question: Buyback Authorization Intentions - The company acknowledged the opportunity to buy back shares at the current discount and indicated that the buyback will continue while evaluating market conditions [34]