Greenlight Capital Re, Ltd. (NASDAQ:GLRE) Q3 2023 Earnings Conference Call November 9, 2023 9:00 AM ET

Company Participants

David Sigmon - General Counsel

Simon Burton - CEO

David Einhorn - Chairman

Faramarz Romer - CFO

Conference Call Participants

Anthony Mottolese - Dowling & Partners

Ben Billiard - Pergam

Operator

Thank you for joining the Greenlight Capital Re Limited Third Quarter 2023 Earnings Conference. At this time, participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]

It is now my pleasure to turn the call over to David Sigmon, Greenlight Re's General Counsel. You may begin.

David Sigmon

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

Joining us on the call today will be executive Officer, Simon Burton, Chairman of the Board, David Einhorn and Chief Financial Officer, Faramarz Romer.

On behalf of the company, I'd like to remind you that forward-looking statements may be made during this call and are intended to be covered by the safe harbor provisions of the Federal Securities laws.

These forward-looking statements reflect the company's current expectations, estimates and predictions about future results and are subject to risks and uncertainties.

As a result, actual results may differ materially from those expressed or implied. For more information on the risks and other factors that may impact future performance, investors should review the periodic reports that are filed by the company with the SEC from time-to-time.

Additionally, management may refer to certain non-GAAP financial measures. The reconciliations to these measures can be found in the company's filings with the SEC, including the company's Form 10-Q for the third quarter ended September 30, 2023. The company undertakes no obligation to publicly update or revise any forward-looking statements.

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

Simon Burton

Thanks David. Good morning everyone. Thank you for joining us. For the third quarter of 2023, we reported net income of $13.5 million and growth in book value per share of 2.3%. This brings our year-to-date performance to net income of $69.2 million and growth in book value per share of 13.7%.

Third quarter net income was primarily driven by strong underwriting performance, with a combined ratio of 91.2% and an underwriting profit of $14.4 million. This result includes a strengthening of reserves that relate to our legacy business, of approximately four combined ratio points, which indicates that the ongoing book performed around an 87% combined ratio. This result can be further broken down into an open market book performing around the mid-80s combined ratio and an innovations book performing around mid-90s.