Greenlight Re(US:GLRE)2024-03-06 16:23Financial Data and Key Metrics Changes - The net income for Q4 2023 was $17.6 million or $0.50 per diluted share, down from $34.8 million or $0.91 per diluted share in the same period of 2022 [9] - For the full year 2023, net income was $86.8 million or $2.50 per diluted share, compared to $25.3 million or $0.73 per diluted share in 2022 [10] - The combined ratio for Q4 2023 was 91.4%, an improvement from 94.2% in Q4 2022 [10] - The full year combined ratio was 94.5%, the best performance since 2009, compared to a loss of $11 million or a 102.3% combined ratio in 2022 [28] Business Line Data and Key Metrics Changes - Net premiums written decreased by $10.6 million or 9.1% in Q4 2023, primarily due to timing related premium adjustments [29] - The casualty book saw a decrease in net premiums written by $12 million or 16.4% in Q4, but increased by 6.7% for the full year [30] - The specialty book increased net premiums written by $3.4 million or 14.5% in Q4, mainly within marine and accident and health classes [31] - The property net written premiums grew by 32.8% for the full year, driven by new commercial property contracts [42] Market Data and Key Metrics Changes - The North Atlantic hurricane exposure on a 1 in 250 occurrence basis increased by 11% to $89.7 million [49] - The overall premium volume is estimated to be slightly up year-on-year, despite the non-renewal of a homeowner's account [37] Company Strategy and Development Direction - The company is focused on maintaining a diversified underwriting portfolio with a focus on short-tail exposures, avoiding challenges faced by peers in property catastrophe and longer-tail casualty lines [18] - The innovations team is a key part of the overall strategy, with a strong position in the early-stage insurtech space [19] - The company is enthusiastic about the positioning of its portfolio for 2024, indicating a likely close to the peak of the hard market [37] Management's Comments on Operating Environment and Future Outlook - Management noted strong wages and employment, with inflation well off its recent peak, but also highlighted geopolitical risks and corporate debt maturities as concerns [4] - The company ended the year with strong financial performance and is well-positioned for continued growth in 2024 [47] Other Important Information - Total general and administrative expenses increased by $6.5 million in Q4 2023, primarily due to non-recurring costs related to management transition [33] - The fully diluted book value per share increased by 3.7% from September 30, 2023, and by 16.8% from December 31, 2022 [46] Q&A Session Summary Question: Changes in the innovations business strategy and unrealized gains - Management indicated that there are no anticipated changes to the innovations strategy, which combines technology with experienced veterans [60] - The $4 million unrealized gain in Q4 relates to four investments, marked based on new financing rounds [60]