GREENLIGHT RE ANNOUNCES

THIRD QUARTER 2020 FINANCIAL RESULTS

Net income of $2.2 million

Fully diluted book value per share increased to $12.03 at quarter end

GRAND CAYMAN, Cayman Islands - November 4, 2020 - Greenlight Capital Re, Ltd. (NASDAQ: GLRE) ("Greenlight Re" or the "Company") today reported net income of $2.2 million, or $0.06 per share, in the third quarter of 2020, compared to net income of $5.1 million, or $0.14 per share, in the third quarter of 2019. Fully diluted book value per share increased $0.22, or 1.9%, to $12.03 in the third quarter of 2020. Fully diluted book value per share was $13.67 at the end of the third quarter of 2019.

Simon Burton, Chief Executive Officer of Greenlight Re, stated, "This was yet another challenging quarter for the reinsurance industry with elevated levels of natural catastrophes and continued accumulation of pandemic-related exposure. Against this backdrop our overall combined ratio of 100.4% is a result driven by discipline in both risk and expense management. Excluding the 7.0 percentage point impact of catastrophes, the underlying combined ratio reflects an underwriting business that is poised to generate significant value as market conditions improve."

David Einhorn, Chairman of the Board of Directors, stated, "We reported a 1.4% investment gain in the Solasglas fund during the third quarter, and believe our investment portfolio is well positioned for the current market uncertainty. We are cognizant that the financial markets remain volatile and as such we continue to be conservatively positioned."

Underwriting and investment results

Third Quarter 2020

Gross written premiums in the third quarter of 2020 were $135.6 million, compared to $110.6 million in the third quarter of 2019. This increase was due primarily to increases in workers' compensation and specialty business, as well as health premiums associated with the Company's strategic partnerships and innovations initiatives.

Net written premiums increased 25.9% to $134.1 million in the third quarter of 2020, compared to $106.6 million reported in the third quarter of 2019. The Company recognized ceded premiums of $1.5 million during the third quarter of 2020, compared to $4.0 million in the third quarter of 2019.

Net premiums earned were $115.5 million during the third quarter of 2020, a decrease from $129.2 million in the comparable 2019 period.

The Company incurred a net underwriting loss of $0.4 million in the third quarter of 2020, compared to a net underwriting gain of $2.6 million in the third quarter of 2019. Natural catastrophes during the third quarter of 2020 generated $8.1 million of losses, primarily from Hurricane Laura, the Midwest derecho storm and the North American wildfires.

The natural catastrophe losses contributed 7.0 percentage points to the combined ratio resulting in a combined ratio for the third quarter of 2020 of 100.4%. The combined ratio for the third quarter of 2019 was 98.0%.

The Company's total investment income during the third quarter of 2020 was $6.9 million. The Company's Investment Portfolio, which is managed by DME Advisors, earned 1.4%, representing $6.4 million of investment income from the Solasglas fund.

Nine Months Ended September 30, 2020

Gross written premiums were $362.1 million for the first nine months of 2020, a decrease of 14.9% from $425.5 million reported in the comparable 2019 period.

Net premiums earned were $335.0 million, for the first nine months of 2020, a decrease of 10.7% from $375.0 million reported in the comparable 2019 period.

The combined ratio for the first nine months of 2020 was 100.1% compared to 104.7% for the comparable 2019 period.

The Company incurred an investment loss of $22.8 million for the first nine months of 2020. The Company's Investment Portfolio incurred a loss of 6.5%, representing a loss of $34.1 million from the Company's investment in the Solasglas fund.

Other items

The Company repurchased 0.7 million shares during the third quarter of 2020 at an average price of $6.87 per share. As of September 30, 2020, 3.1 million shares remained available for repurchase under the existing plan.

Conference Call

Greenlight Re will hold a live conference call to discuss its financial results for the quarter ended September 30, 2020 on Thursday, November 5, 2020 at 9:00 a.m. Eastern time. The conference call title is Greenlight Capital Re, Ltd. Third Quarter 2020 Earnings Call.

To participate in the Greenlight Capital Re, Ltd. Third Quarter 2020 Earnings Call, please dial in to the conference call at:

U.S. toll free

1-888-336-7152

International

1-412-902-4178

Telephone participants may avoid any delays by pre-registering for the call using the following link to receive a special dial-in number and PIN.

Conference Call registration link:https://dpregister.com/sreg/10148005/d92c76b217

The conference call can also be accessed via webcast at:

https://services.choruscall.com/links/glre201105.html

A telephone replay of the call will be available from 11:00 a.m. Eastern time on November 5, 2020 until 9:00 a.m. Eastern time on November 12, 2020. The replay of the call may be accessed by dialing 1-877-344-7529 (U.S. toll free) or 1-412-317-0088 (international), access code 10148005. An audio file of the call will also be available on the Company's website, www.greenlightre.com.

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Non-GAAP Financial Measures

In presenting the Company's results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). Such measures, including fully diluted book value per share and net underwriting income (loss), are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. Management believes these measures allow for a more complete understanding of the underlying business. These measures are used to monitor our results and should not be viewed as a substitute for those determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included in the attached financial information in accordance with Regulation G.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward- looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of the Company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market fluctuations, trends in insured and paid losses, catastrophes, regulatory and legal uncertainties and other factors described in our Form 10-K and Amendment No. 1 to Form 10-K filed with the Securities Exchange Commission on April 29, 2020. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as provided by law.

About Greenlight Capital Re, Ltd.

Established in 2004, Greenlight Re (www.greenlightre.com) is a NASDAQ listed company with specialist property and casualty reinsurance companies based in the Cayman Islands and Ireland. Greenlight Re provides risk management products and services to the insurance, reinsurance and other risk marketplaces. The Company focuses on delivering risk solutions to clients and brokers by whom Greenlight Re's expertise, analytics and customer service offerings are demanded. With an emphasis on deriving superior returns from both sides of the balance sheet, Greenlight Re manages its assets according to a value-oriented equity- focused strategy that supports the goal of long-term growth in book value per share.

Contact:

Investor Relations:

Adam Prior

The Equity Group Inc.

  1. 836-9606IR@greenlightre.ky

GREENLIGHT CAPITAL RE, LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

September 30, 2020 and December 31, 2019

(expressed in thousands of U.S. dollars, except per share and share amounts)

September 30, 2020

December 31, 2019

Assets

Investments

Investment in related party investment fund

$

184,956

$

240,056

Other investments

22,241

16,384

Total investments

207,197

256,440

Cash and cash equivalents

8,159

25,813

Restricted cash and cash equivalents

723,107

742,093

Reinsurance balances receivable (net of allowance for expected credit losses of

$89)

264,227

230,384

Loss and loss adjustment expenses recoverable (net of allowance for expected

credit losses of $47)

19,949

27,531

Deferred acquisition costs

51,696

49,665

Unearned premiums ceded

-

901

Notes receivable (net of allowance for expected credit losses of $1,000)

18,461

20,202

Other assets

3,264

2,164

Total assets

$

1,296,060

$

1,355,193

Liabilities and equity

Liabilities

Loss and loss adjustment expense reserves

$

481,770

$

470,588

Unearned premium reserves

203,855

179,460

Reinsurance balances payable

80,364

122,665

Funds withheld

5,232

4,958

Other liabilities

3,756

6,825

Convertible senior notes payable

94,216

93,514

Total liabilities

869,193

878,010

Shareholders' equity

Preferred share capital (par value $0.10; authorized, 50,000,000; none issued)

-

-

Ordinary share capital (Class A: par value $0.10; authorized, 100,000,000; issued

and outstanding, 29,113,702 (2019: 30,739,395): Class B: par value $0.10;

authorized, 25,000,000; issued and outstanding, 6,254,715 (2019: 6,254,715))

3,537

3,699

Additional paid-in capital

492,429

503,547

Retained earnings (deficit)

(69,099)

(30,063)

Total shareholders' equity

426,867

477,183

Total liabilities and equity

$

1,296,060

$

1,355,193

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Greenlight Capital Re Ltd. published this content on 04 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2020 22:15:03 UTC