Greenlight Capital Re (GLRE) 9 May 242024 Q1 Earnings call transcript

Thank you for joining the Greenlight Capital Re Ltd First Quarter 2024 Earnings Conference. [Operator Instructions]. And as a reminder, this conference is being recorded. It is now my pleasure to turn the call over to David Sigmon, Greenlight Re's General Counsel.

You may begin.

morning. good and you, Thank I would is replay this call you the to recorded and remind being event. for of that will conclusion conference the like be following available under audio the website An www.greenlightre.com. also will be at Investors of the replay section company's available

us Financial will our Officer, Officer, call Faramarz Chief Board; David today of Richardson, Romer. Chairman the the Einhorn; on Executive Joining be Greg and Chief

uncertainties. and made securities are of remind of to you like that and during future and the this the may statements the forward-looking predictions behalf by call On covered results estimates reflect to are be intended provisions be current and the laws. company, forward-looking harbor to expectations, subject company's about statements I'd safe These federal risks

results materially or result, differ a those from As implied. actual expressed may

information on reports the review may with the time and investors other SEC by company risks periodic performance, future the the factors from impact time. For that should that filed are more to

certain measures. statements. recently XX, filed company's company for to SEC, obligation The company's filings the refer the update no may quarter revise publicly ended including or the non-GAAP to with in undertakes to management The these Form forward-looking can found financial XXXX. Additionally, the be measures any March reconciliations XX-Q

With over pleasure that, it to is now call Greg. to my turn the

a an profitability. growth quarter quarter a first first with our the gross for quarter quarter morning, during Thanks, annualized X.X% up of sixth XX% XXXX. underwriting today. consecutive Greenlight We compared diluted $XX share reported the David. the ratio and of net everyone, income to thank which value strong XX.X% Good in Re book fully combined written you us We for quarter, equates on had per million, joining XX.X% delivered premium of basis. or to of

for ratio $XX.X equates collapse in the X.X% loss combined Scott result net premiums the underwriting a quarter. includes of to Bridge Baltimore. the and recoveries tragic This points reinstatement Our of Francis million from Key

cedents this cover we Our the our of a industry group. driven this billion, assumed book, international to to estimate have we provide is loss predominantly an by specialty limit to of cover. to loss loss on $X approximately where exposure number a reinsure full Based

position still benefits with reserve from if loss outwards estimate the Our loss loss Accordingly, event. reinsurance limited our net protection excess additional from variability of available loss deteriorates. we expect protection in this industry

to marine favors Baltimore despite within such marine, falls expectations small absorb portfolio underwriting so while it loss to Moreover, of the perhaps our during shorter-tail delivering harden expect Our event. a bridge history. able a specialty marine still significant We the of a classes rates of we this loss range in quarter the largest loss as result were the as this being underwriting market magnitude profit.

growth written premium business our the rate specialty quarter gross were in casualty growth of XX.X% an primarily classes environment. driven advantage signings The of as where books and first pleased in strong by grow environment was these to we were in competitive. We took

storm convective a we its U.S. quarter, homeowner's non-renewed due quota contract exposure risk. first to the share to During

believe Excluding our pricing contract, since quarter grew to this continues book also attractive. we property we the during property be cat

Japanese strong. doubt environment We strengthening supply-demand in general, Moving at renewals The affects property conditions, nearly small down, were for but XX% the pressure growth balance overall discipline X, XXXX XXXX. Japanese of on points, trends catastrophe We signings. there dollar flat modestly April X, but beginning cat Consistent versus X with overall similar few the was a of since U.S. the with significant yen rates reinsurance. renewal is to a some the The January saw book write market down very no XXXX, to year-on-year. April premium to rating market season. remains broadly

to been with has meet companies. A innovations key portfolio our focus personal

Our Brian a to their the and for profitable of having our with companies their during unique growth. I potential understand a met of quarter, Head of leaders Innovations, number portfolio chance value O'Reilly, the propositions and

of team and opportunities nurturing the performs and excellent these selecting, with new work guiding identifying, our the in impressed these businesses. quality I'm innovative

Finally, March of that to that is initial I call, noted has Greenlight good Greenlight Re in and our some would Re I like provided in prospects. and shape reiterate impressions exciting impression.

call the Einhorn. David over turn to I'll Now

X.X% Great. the Thanks, The fund Solasglas morning, everyone. good quarter. in returned Greg, and first

flat was loan Our added short X.X%. X.X%. The portfolio and added portfolio macro

the investments an gold. in the Healthcare, name short interest were were and and Index positive Entertainment long XXX The position. positions advanced contributors quarter, position largest XX.X%. detractors Energy The and PENN a rate-related Partners Green S&P Tenet long During in and largest Brick CONSOL single

and the XX% continues at results. premium Partners additional the Tenet after positioned Brick XX%, care Healthcare multiples. advanced its The announced and company quarter health utilization appears strong strong markets hospitals in to of ongoing strength well another core fourth perform in from Green sale rose well year XXXX. for in benefiting company

point as around market XXXX. We Early position with new cut the came and to Reserve the profits. priced in market The a macro of selling year. the quarter short-term Xx our XX Federal benefited rates some only by about this interest to view end time, X futures. we December SOFR quarter, cut the position the position X.XX the established to trimmed expected again the At between by the take basis X for

Harbor as collapse early do the in terminal for its years of prevent this relevance near occurrence. note risk not believe is price a on moderately in have both Energy we the Gold CONSOL local this sides XX% the sheet, the CONSOL long-term from was The from which the to term, to Key collapse fell advanced than investment. where later of due exporting rare will first during the quarter. but the many I in coal this bridge quarter time pricing Francis we aggregation balance the saw a is in will also coal shares a and X% the lower in Bridge quarter. more significant Baltimore contributor Scott

CONSOL and other recoup for of the interruption able to hand, much On has its be insurance loss. should the

marketing ESPN casinos declined company million guided quarter earlier and be ESPN its to XX% while appears the launching launch believe the We PENN Bet. operator and customers gaming about position year previous We long X as undertook guidance. market first land-based was in less shares acquire to online Bet, established spend the a an customers acquired the a the during concerned The amount X of than the successful new months in business. and to profitability of company Entertainment, than

Belgian an investment Bicar early as in we Last April. quarter, we conference company position large an materials After a unveiled division well Solvay, company. are chemicals formulations new at in a the to building new out referred We were as undisclosed spun Solvay's restructuring, this corporate undergoing a which of silicas, position products ash Chemicals and key soda flooring, earth and peroxide, as as solvents. Specialty SYENSQO,

in the an earn X per share company our per investment. and pay for nearly all plans near to to Xx Solvay acquired expect annual our year EUR dividend position of us We than XX% XXXX, less earnings we while those on

addition April meeting Global. smooth. at positions as months a in very macro with and energized established in A prices Inc. been of The just has portfolio of just Greg long well new and transition in XX. Net a portfolio X we long as has Class manager shared long In XX% a number position small over for leader, higher Liberty X% and medium He's management and with to Roivant April Solasglas the returned shares had exposure has vision. while productive We the the Cayman in Sciences April. investment been from HP a found quarter and observing we and X.X% and fantastic Gold in and returned a copper end a position a benefit of was medium-sized team and -- board a prolific year-to-date strategy investments. other promising had Solvay, us as the to of approximately the now PENN

like over I'd the to to Now discuss financial Faramarz the to turn results. call

you, everyone. morning, Thank and David, good

During expenses, The mainly combined accounted or diluted million catastrophe as generated a underwriting satellite million G&A Baltimore to incident $XX.X million diluted per from earnings share after $X.X book per share $X.XX $X.XX we bridge a underwriting-related in generated or period of of XX.X%. million the losses first Current XXXX. points, the $XX.X losses QX X.X% of failures. equates compared to to as quarter combined $X.X or which related profit well ratio ratio XXXX, for

excessive XXXX Greg As on the loss at of strengthening booked The the the have oil events, matured bridge U.S. to ERF international adverse and liability underlying XXXX offset loss to the reserve by and specialty account development loss stated, Adverse our storms a of FAL XXXX reserve was partially development quarter as we XXXX an on platform as Hurricane Otis including program related releases years. full to primarily share cover. relating convective the in general the group fire, contracts. well limit

we adverse rest adverse in-force of with to quarter the during tend While none The lean wait XXXX. the on and $X.X were net of our significant, these generally of accounted ratio into developments. first points information line million more X.X book development expectations. for favorable clarity combined for of quicker The individually performed current in

to or and same quarter increase net net growth premiums million our was XXXX. premiums quarter $XX.X same by in between the of our some increased first to the increases. in million, XX.X% $XXX.X while book compared During casualty The million property books, million $XXX.X specialty offset the of written XX.X% the split an were quarter, the compared $XX.X The XXXX. to or earned

primarily our mostly compared business. XX% book. business or XXX.X% is XX.X% comparable ratio quarter, for first casualty to increased contracts, the composite casualty improved related Turning the the of in during the quarter during million period $XX.X the first in to multiline Lloyd's written to syndicate which XXXX. to by The composed Net premiums

other The to XX.X% ratio specialty premiums the specialty $XX.X within the first first period the classes. in Moving XX.X% quarter our comparable million the to for or written book. quarter, marine in XXX.X% business the increased Net specialty during compared by XXXX. during and increased mainly to composite

of to incident explosion quarter. to Baltimore XXXX oil this the the accounted the composite contributed higher platform development much the bridge While ratio adverse related increase, for also

property decreased nonrenewed our million book, premiums during by a $X homeowners Within the that by or driven written quarter, primarily XX% mentioned Greg first earlier. contract net

first the book written for that convective U.S. the contract, quarter quarter XXX% in partially the the by this premiums losses $X.X ratio was driven comparable The million XXXX. was book compared XX% composite during the our XXXX. improvement XX%. impacted Excluding period of increased to storm contract by property The had property or homeowners for for the business in fewer net first

by $XX.X Total million of expenses during the compared first XXXX. million first administrative the $X.X million to increased $X.X quarter general in quarter and to

million $XX.X across jurisdictions We quarter in of grow reported we We we compared in during have as $X.X net of first organization X million been successful the operate. all in to XXXX which recruiting the investment total talented individuals XXXX. in income

Our fund and reported book in cash the fully investment restricted increase our $X.X innovations earned from $XX.X cash Solasglas million a while quarter. on first loss and the gain quarter, first at the the X.X% $XX.XX, share of Lloyd's. equivalents per deposited small investments or XXXX. of We reported our was of end in an our At income December interest million funds our X.X%, on of XX, diluted value a

I back operator to it questions. will the hand now up open call to the for

today's the end reached teleconference session. question-and-answer conclude And does We Instructions] and of webcast. that [Operator our

time, at today. and Are wonderful you We participation You lines there day. a your thank may this your any closing further for disconnect comments? have