Greenlight Re(US:GLRE)2025-11-04 15:00Financial Data and Key Metrics Changes - In Q3 2025, the company reported a net loss of $4.4 million, compared to a net income of $35.2 million in Q3 2024, resulting in a negative $0.13 per diluted share [15] - The fully diluted book value per share decreased by 0.4% in the quarter to $18.90 but increased by 5.3% year-to-date [4][20] - The combined ratio improved to 86.6%, which is 9.3 points better than the same period last year, driven by a lack of catastrophic losses and improvements in the current-year attritional loss ratio [15] Business Line Data and Key Metrics Changes - The open market segment reported a pre-tax income of $27.9 million, with net written premiums growing by 9.5% to $140.4 million and net earned premiums increasing by 14.1% [16] - The open market combined ratio improved by 10 points to 84.5% compared to 94.5% in Q3 2024, with a significant improvement in the current-year loss ratio [17] - The innovation segment grew net written premiums by 57.5% to $22.3 million, although the combined ratio increased to 96.7% from 93.6% in the previous year [18][19] Market Data and Key Metrics Changes - The investment performance for the quarter resulted in a loss of $17.4 million, primarily due to the Solasglas portfolio and unrealized losses in the innovations investment portfolio [6][15] - The Solasglas fund returned negative 3.2% in Q3, while the S&P 500 index advanced 8.1% during the same period [9] Company Strategy and Development Direction - The company is focused on one-to-one renewals in the open market reinsurance business, expecting to renew most of its non-cash business and potentially grow [8] - The innovation segment is anticipated to continue strong organic growth from existing clients and new business opportunities, despite a softening market [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underwriting portfolio's ability to deliver strong returns, despite the investment losses in Q3 [5] - The company believes it should earn a return on equity greater than its cost of equity, and the shares should trade at or above book value [29] Other Important Information - The company repurchased 512,000 shares for $7 million during the first nine months of 2025, which has been accretive to book value per share [20] - The debt leverage ratio was reduced to 5.3% from 9.5% at the beginning of the year, with additional repayments made in October [21] Q&A Session Summary Question: Update on the macro part of the Solasglas Fund - Management maintains a core position in gold and is long SOFR futures, expecting the Fed to reduce interest rates more than the market anticipates [25] Question: Long-term future of the company - Management believes the company has made structural improvements and should earn a return on equity greater than its cost of equity, expressing no intention to liquidate the company [29]