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Greenlight Re(GLRE) - 2025 Q1 - Earnings Call Transcript
Greenlight ReGreenlight Re(US:GLRE)2025-05-08 14:00

Financial Data and Key Metrics Changes - The company reported a net income of $29.6 million in Q1 2025, an increase from $27 million in Q1 2024, resulting in a fully diluted book value per share increase of 5.1% in the quarter [5][19] - The underwriting loss for the quarter was $7.8 million, leading to a combined ratio of 104.6% [5][19] - Catastrophe losses from the California wildfires added 14 percentage points to the combined ratio [19] Business Line Data and Key Metrics Changes - The open market segment grew net written premiums by 16.6%, but suffered a pretax loss of $3.2 million primarily due to the California wildfires [20] - The open market combined ratio was 106% compared to 96.2% for the same period in 2024, with the current year attritional loss ratio improving by 1.3 percentage points to 54% [21] - The innovation segment reported a pretax income of $900,000 with a combined ratio improving to 94.3% from 99.3% year-over-year [22] Market Data and Key Metrics Changes - The Solace Glass Fund returned 7.2% in Q1 2025, outperforming the S&P 500 Index, which declined by 4.3% [12] - The largest positive contributors to the fund were investments in Gold, Brighthouse Financial, and LANXESS, while Core Natural Resources and Penn Entertainment were the largest detractors [12][15] Company Strategy and Development Direction - The company is shifting its approach to accessing casualty MGA business, focusing on the innovations channel for better data access and control, which may lead to a short-term contraction in the casualty book [8] - The company is overhauling its portfolio mix to advance its dual-engine strategy [17] Management's Comments on Operating Environment and Future Outlook - Management noted that inflationary pressures could increase loss costs, while an economic slowdown might reduce exposure [6] - There is a concern about a significant economic slowdown in the U.S. due to reduced consumer spending, prompting a pivot from conservative to bearish positioning [16] Other Important Information - The company strengthened its historical casualty reserves by $22 million during the quarter, mainly related to underwriting years 2014 to 2019 [10] - The company ended Q1 2025 with a fully diluted book value per share of $18.87, an increase of 8.5% from Q1 2024 [23] Q&A Session Summary Question: No questions were raised during the Q&A session - The operator noted that there were no questions at this time and provided contact information for follow-up inquiries [24]