Greenlight Capital Re Ltd (GLRE) 2023 Q4 法說會逐字稿

Hello and welcome to the Greenlight Capital Re Limited 2023 fourth quarter and full year financial results conference call and webcast. (Operator Instructions)

您好，歡迎來到 Greenlight Capital Re Limited 2023 年第四季和全年財務業績電話會議和網路廣播。（操作員說明）

At this time, I'd like to turn the call over to David Sigmon, Greenlight Re General Counsel. You may begin.

此時，我想將電話轉給 Greenlight Re 總法律顧問 David Sigmon。你可以開始了。

Thank you, [Kevin] and good morning. I would like to remind you that this conference call is being recorded and will be available 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.

謝謝你，[凱文]，早安。我想提醒您，本次電話會議正在錄音，並將在活動結束後重播。音訊重播也將在公司網站 www.greenlightre.com 的投資者部分提供。

Joining us on the call today will be our Chief Executive Officer, Greg Richardson; Chairman of the Board, David Einhorn; Chief Financial Officer, Faramarz Romer; and Chief Executive Officer of Greenlight Re, Ireland, Pat O'Brien.

我們的執行長格雷格·理查森 (Greg Richardson) 今天將加入我們的電話會議。董事會主席大衛·艾因霍恩；財務長 Faramarz Romer；以及愛爾蘭 Greenlight Re 執行長 Pat O'Brien。

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.

我謹代表本公司提醒您，本次電話會議期間可能會做出前瞻性陳述，這些陳述將受到聯邦證券法安全港條款的涵蓋。這些前瞻性陳述反映了公司目前對未來業績的預期、估計和預測，並受到風險和不確定性的影響。因此，實際結果可能與明示或暗示的結果有重大差異。

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 recently filed Form 10-K for the year ended December 31, 2023. The company undertakes no obligation to publicly update or revise any forward-looking statements.

有關可能影響未來業績的風險和其他因素的更多信息，投資者應查看公司不時向 SEC 提交的定期報告。此外，管理階層可能會參考某些非公認會計準則財務指標。這些措施的調節可以在該公司向 SEC 提交的文件中找到，包括該公司最近提交的截至 2023 年 12 月 31 日的年度的 10-K 表格。該公司不承擔公開更新或修改任何前瞻性陳述的義務。

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

現在，我很高興將電話轉給格雷格。

Thanks, David. Good morning, everyone, and thank you for joining us today. This is my first earnings call since appointment as CEO of Greenlight Re, effective January 1 of this year. I'm delighted to have the opportunity to engage with our investors, and I look forward to meeting you in time. My first eight weeks have been busy. I'd like to share some of my initial impressions.

謝謝，大衛。大家早安，感謝您今天加入我們。這是我自今年 1 月 1 日起擔任 Greenlight Re 執行長以來的第一次財報電話會議。我很高興有機會與我們的投資者接觸，並期待及時與您見面。我的前八週很忙。我想分享一些我的初步印象。

First, Greenlight Re is in good shape and with exciting prospects. Our 2023 financial results are strong, and we will talk more about those later. I'm based full-time at our home office in Grand Cayman, and I've been able to visit our offices in Dublin and London. So, I've had the chance to meet everyone in the company and to get to know most of them.

首先，Greenlight Re 狀況良好，前景令人興奮。我們 2023 年的財務業績表現強勁，我們稍後將詳細討論這些內容。我在大開曼島的總部全職工作，並且能夠參觀我們在都柏林和倫敦的辦公室。因此，我有機會見到公司的每個人並了解他們中的大多數人。

Greenlight Re has a high-quality team that is very engaged and motivated. Together with senior colleagues in January and February, we met with senior brokers and key clients in London and Bermuda. There's a positive perception of Greenlight Re and its role in the reinsurance marketplace. Our underwriting portfolio is highly diversified with a focus on short-tail exposures. Over the recent years, we have been underweight in both property catastrophe and longer-tail casualty lines. This has served us well by avoiding some of the challenges our peers have encountered with large cat losses over several years and material deterioration in industry casualty reserves during 2023.

Greenlight Re 擁有一支高度敬業、積極進取的高素質團隊。一月和二月，我們與高級同事一起會見了倫敦和百慕達的高級經紀人和主要客戶。人們對 Greenlight Re 及其在再保險市場中的作用持正面看法。我們的承保投資組合高度多元化，並專注於短尾風險。近年來，我們在房地產災難和長尾傷亡險方面一直處於減持狀態。這對我們很有幫助，避免了我們的同行所遇到的一些挑戰，例如幾年來的巨額損失以及 2023 年行業傷亡準備金的實質惡化。

Finally, I've spent time getting to know our innovations team. Greenlight Re innovations is a key part of our overall strategy. We have built a strong position in early-stage insurtech space. Our model of capital and capacity, along with a dedicated team of experts, is truly differentiating us in this space.

最後，我花了時間了解我們的創新團隊。Greenlight Re 創新是我們整體策略的關鍵部分。我們在早期保險科技領域建立了強大的地位。我們的資本和能力模型以及專門的專家團隊使我們在這個領域中真正脫穎而出。

Turning to our results, Greenlight Re performed well in 2023, and Q4 in particular. We reported a combined ratio of 91.4% for the quarter, our fifth consecutive quarter of underwriting profitability. We reported a 94.5% combined ratio for the full year, our best performance since 2009, and we delivered a strong 16.8% growth in book value per share.

就我們的業績而言，Greenlight Re 在 2023 年尤其是第四季表現良好。我們公佈的本季綜合成本率為 91.4%，這是我們連續第五個季度實現承保盈利。我們公佈的全年綜合成本率為 94.5%，這是自 2009 年以來的最佳業績，每股帳面價值強勁增長 16.8%。

Now I'd like to turn the call over to David Einhorn.

現在我想把電話轉給大衛艾因霍恩。

Thanks, Greg. Good morning, everyone. The Solasglas fund returned 3/10 of a percent in the fourth quarter. Our long portfolio added 8.6%, our short portfolio detracted 9%, and our macro added 1.3%. During the quarter, the S&P 500 index returned 11.7% as a new consensus emerged that inflation has been brought under control without triggering a recession.

謝謝，格雷格。大家，早安。Solasglas 基金第四季的回報率為 3/10%。我們的多頭投資組合增加了 8.6%，我們的空頭投資組合減少了 9%，而我們的宏觀投資組合增加了 1.3%。本季度，標準普爾 500 指數上漲 11.7%，因為人們出現了新的共識，通膨已得到控制，沒有引發經濟衰退。

The largest positive contributors in the fourth quarter were our long position in Green Brick Partners, a macro position tied to higher interest rates and lower stock prices that paid off in October, and our long position in Kyndryl Holdings. Three short positions were the largest detractors.

第四季最大的正面貢獻是我們在 Green Brick Partners 的多頭頭寸，這是一種與利率上升和股價下跌相關的宏觀頭寸，並在 10 月份得到了回報，以及我們在 Kyndryl Holdings 的多頭頭寸。三個空頭部位是最大的批評者。

Green Brick Partners advanced 25% during the quarter, recouping most of its third quarter decline. The company released another strong quarterly update, showcasing, again, the highest gross margin in the industry, as well as faster growth in new home orders than its peers. The company appears poised for another strong year in 2024.

Green Brick Partners 本季股價上漲 25%，彌補了第三季大部分跌幅。該公司發布了另一份強勁的季度報告，再次展示了業界最高的毛利率，以及新房訂單成長速度快於同業。該公司似乎準備在 2024 年迎來另一個強勁的一年。

Our dual binary derivatives position, which benefited from both a lower S&P 500 level and higher 30-year interest rates, was the second largest contributor. This position expired in mid-October, just before the strong rally for stocks and a material move lower for rates into year end.

我們的雙重二元衍生性商品部位受益於較低的標準普爾 500 指數水準和較高的 30 年期利率，是第二大貢獻者。這一部位於 10 月中旬到期，就在股市強勁反彈和年底利率大幅下跌之前。

Kyndryl Holdings advanced 38% over the quarter. The company announced improved margins and a smaller loss than expectations. Loss estimates for 2024 ended the year at $0.47 per share, down from $1.80, which was expected at the start of the year. Gold was also a positive contributor, advancing 11.7% during the quarter.

Kyndryl Holdings 本季上漲 38%。該公司宣布利潤率提高，虧損也低於預期。2024 年底的虧損預期為每股 0.47 美元，低於年初預期的 1.80 美元。黃金也做出了積極貢獻，本季上漲 11.7%。

Losses in the short portfolio were concentrated in three positions, including our innovation basket and two unprofitable tech companies. In November and December, we saw bubble-like conditions return for the most speculative stocks, and these shorts went parabolic. We don't believe there was any material fundamental improvement for either of these companies during the period. We established four new long positions during the quarter. These included medium-sized positions in Alight, a software-based benefits provider, and Viatris, a manufacturer of generic and off-patent branded drugs.

空頭投資組合的損失集中在三個頭寸，包括我們的創新籃子和兩家未獲利的科技公司。在 11 月和 12 月，我們看到最具投機性的股票再次出現泡沫狀狀況，而這些空頭則呈現拋物線狀。我們認為在此期間這兩家公司都沒有任何重大的根本性改善。我們在本季度建立了四個新的多頭部位。其中包括基於軟體的福利提供者 Alight 和仿製藥和非專利品牌藥物製造商 Viatris 的中型職位。

We initiated a small position in Syensqo, a Belgian chemicals company spun off from Solvay. We were building a new large position in an undisclosed materials company. We've maintained neutral net exposure of late. On one hand, wages and employment remain strong, while inflation is well off its recent peak. On the other hand, we entered election year with the market disregarding heightened geopolitical risks and with corporations and commercial real estate staring down the growing wall of debt maturities to refinance, which were arranged when rates were near zero.

我們在 Syensqo 設立了一個小職位，這是一家從索爾維分拆出來的比利時化學品公司。我們正在一家未公開的材料公司建立一個新的大型職位。我們最近維持中性淨敞口。一方面，薪資和就業依然強勁，而通膨也遠低於近期的高峰。另一方面，我們進入了選舉年，市場無視日益加劇的地緣政治風險，企業和商業房地產盯著不斷增長的債務到期期限進行再融資，而再融資是在利率接近於零時安排的。

The Solasglas fund returned 9.4% in 2023, compared to a 26.3% return for the S&P 500. It returned 2.9% in January and negative 1.4% in February, bringing the 2024 year-to-date return to 1.4%. Net exposure in the investment portfolio was approximately 39% at the end of the fourth quarter and 43% at the end of February.

Solasglas 基金 2023 年的報酬率為 9.4%，而標準普爾 500 指數的報酬率為 26.3%。1 月份的回報率為 2.9%，2 月份的回報率為負 1.4%，使 2024 年年初至今的回報率達到 1.4%。第四季末投資組合的淨敞口約為 39%，二月底約為 43%。

It is a pleasure to welcome Greg to the team as our Chief Executive Officer. You just heard what he's accomplished in his first eight weeks. I just came back from Cayman from our Board meeting, and what Greg didn't tell you is that he and the team also had to prepare for that meeting during the transition. Greg brings enthusiasm and significant experience and has energized the team in a few short months. I look forward to partnering with Greg for many years to come.

很高興歡迎格雷格加入我們的團隊，擔任我們的執行長。您剛剛聽說了他在前八週內所取得的成就。我剛從開曼參加董事會會議回來，格雷格沒有告訴你的是，他和團隊還必須在過渡期間為該會議做好準備。格雷格帶來了熱情和豐富的經驗，並在短短幾個月內為團隊注入了活力。我期待著與格雷格合作多年。

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

現在我想將電話轉給 Faramarz，討論財務表現。

Thank you, David, and good morning, everyone. 2023 was one of the best years for Greenlight Re as we posted the largest full year underwriting income in our history and delivered the best growth in book value per share in a decade. As Greg mentioned, we rounded the year with the fifth consecutive quarter of underwriting profits. Our net income for the fourth quarter of 2023 was $17.6 million or $0.50 per diluted share compared to $34.8 million or $0.91 per diluted share in the comparable period.

謝謝大衛，大家早安。 2023 年是 Greenlight Re 業績最好的一年之一，我們公佈了歷史上最大的全年承保收入，並實現了十年來最好的每股帳面價值成長。正如格雷格所提到的，我們連續第五個季度實現承保利潤。我們 2023 年第四季的淨利潤為 1,760 萬美元，即稀釋後每股收益 0.50 美元，而同期淨利潤為 3,480 萬美元，即稀釋後每股收益 0.91 美元。

For the full year 2023, we earned net income of $86.8 million or $2.50 per diluted share compared to $25.3 million or $0.73 per diluted share in 2022. We reported an underwriting income of $11.8 million during the fourth quarter and a combined ratio of 91.4% compared to $6.5 million and a combined ratio of 94.2% during the equivalent 2022 period. The fourth quarter of 2023 combined ratio included 2.5 percentage points related to increase in reserves on casualty and workers' compensation contracts that I will discuss later.

2023 年全年，我們的淨利潤為 8,680 萬美元，即稀釋後每股收益 2.50 美元，而 2022 年淨利潤為 2,530 萬美元，即稀釋後每股收益 0.73 美元。我們報告第四季的承保收入為 1,180 萬美元，綜合成本率為 91.4%，而 2022 年同期的承保收入為 650 萬美元，綜合成本率為 94.2%。2023 年第四季的綜合比率包括 2.5 個百分點，與傷亡和工人賠償合約準備金的增加有關，我將在稍後討論。

For the 2023 year, our underwriting income was a record $32 million or 94.5% combined ratio compared to a loss of $11 million or 102.3% combined ratio. The 7.8% improvement in combined ratio was partially related to lower catastrophe losses during 2023 and partially related to improved pricing on the in-force book. Adjusting for casualty event losses, our current year loss ratio for 2023 improved by 4 percentage points to 54.9% compared to 58.9% during the comparable period in 2022.

2023 年，我們的核保收入達到創紀錄的 3,200 萬美元，綜合成本率為 94.5%，而虧損為 1,100 萬美元，綜合成本率為 102.3%。綜合成本率提高 7.8%，部分與 2023 年巨災損失減少有關，部分與有效帳簿定價的改善有關。在調整傷亡事件損失後，我們 2023 年的損失率比 2022 年同期的 58.9% 提高了 4 個百分點，達到 54.9%。

During the fourth quarter, our net premiums written decreased by $10.6 million or 9.1% to $105.3 million compared to the same quarter in 2022. The decrease is timing related primarily due to premium adjustments based on updated reporting received from cedents on our FAL and transactional liability business. Net premiums earned was $137 million, an increase of $26.1 million, or 23.4% compared to the same quarter in 2022.

與 2022 年同季相比，第四季我們的淨承保保費減少了 1,060 萬美元，即 9.1%，至 1.053 億美元。這一下降主要是由於根據從分出公司收到的關於我們的 FAL 和交易負債業務的最新報告進行的保費調整。淨保費收入為 1.37 億美元，較 2022 年同季增加 2,610 萬美元，成長 23.4%。

For the full year, our net premiums written increased 13.1% to $637 million, with the growth spread across property, casualty, and specialty books. Within our specialty book, we saw a small decrease in net premiums written of $1.9 million, or 10% during the fourth quarter, mainly driven by a smaller participation on a homeowner's contract renewed in 2023.

全年，我們的淨承保保費增加了 13.1%，達到 6.37 億美元，成長分佈在財產險、意外險和專業險種。在我們的專業帳簿中，我們看到第四季度的淨保費小幅下降了 190 萬美元，即 10%，這主要是由於 2023 年續約的房主合約的參與人數減少所致。

On a full-year basis, the property net written premiums grew by 32.8%, mainly from new commercial property contracts and new business generated from our innovations portfolio. The composite ratio for the property business was 64.1% for the fourth quarter, compared to 103.9% during the comparable period in 2022. The improvement was partially driven by reserve releases on a motor contract and partially due to an increase in earned premiums at better margins.

全年物業淨保費成長32.8%，主要來自新商業物業合約和創新組合產生的新業務。第四季房地產業務的綜合成本率為64.1%，而2022年同期為103.9%。這一改善部分是由於汽車合約準備金的釋放，部分是由於利潤率提高所賺取的保費增加。

Moving to our casualty book, net premiums written decreased by $12 million or 16.4% during the fourth quarter, primarily relating to the FAL 2022 year of account due to premium adjustments booked during the quarter. On a full-year basis, the net written premiums increased 6.7%, driven by new and renewed general liability, professional liability, and, to a lesser extent, motor liability business. This increase was partially offset by the workers' compensation class, where we continue to move away from proportional business and are finding pockets of attractive excessive loss business.

轉向我們的意外險帳簿，第四季度淨承保保費減少了 1,200 萬美元，即 16.4%，主要與 FAL 2022 帳戶年度相關，原因是該季度登記的保費調整。全年淨承保保費增長了 6.7%，主要受到新的和更新的一般責任、專業責任以及較小程度上的汽車責任業務的推動。這一增長部分被工人賠償類別所抵消，我們繼續遠離比例業務，並發現了一些有吸引力的過度損失業務。

The composite ratio for the casualty business improved marginally to 100.1% in the fourth quarter, compared to 101% during 2022. During the quarter, we bolstered our reserves on certain casualty contracts ranging between 2015 and 2017 treaty years, and on workers' compensation contracts relating to 2020 and 2021.

第四季意外險業務的綜合成本率小幅提高至 100.1%，而 2022 年為 101%。本季度，我們增加了 2015 年至 2017 年條約年度的某些傷亡合約以及 2020 年至 2021 年工傷賠償合約的準備​​金。

Turning now to our specialty book, net premiums written increased by $3.4 million or 14.5% during the fourth quarter, mainly within the marine and accident and health classes. This was partially offset by a decrease in the financial class resulting from premium adjustments on transactional liability business.

現在轉向我們的專業書籍，第四季度淨承保保費增加了 340 萬美元，即 14.5%，主要是在海事、事故和健康類別。這被交易負債業務保費調整導致的金融類別下降所部分抵消。

For the full year 2023, net premiums written increased 11.1% as we took advantage of the hard market conditions, primarily growing our marine, energy, aviation, and cyber books. The composite ratio for the specialty business increased to 73.6% in the fourth quarter, compared to 63% during the comparable period in 2022. The increase relates to losses on a 2022 energy contract, partially offset by reserve releases on the transactional liability business.

2023 年全年，淨承保保費成長了 11.1%，因為我們利用了嚴峻的市場條件，主要增加了我們的海洋、能源、航空和網路保費。第四季特種業務的綜合比率增至 73.6%，而 2022 年同期為 63%。這一增長與 2022 年能源合約的虧損有關，部分被交易負債業務的準備金釋放所抵消。

Our underwriting expense ratio for the fourth quarter increased to 5.5% from 3.7% in the same period in 2022. The expense ratio for this quarter included 1.5 percentage points of deposit interest expense. The deposit interest expense arose from a deposit-accounted retroceded motor contract, which experienced favorable development during the quarter. Excluding the deposit interest expense, the underwriting expense ratio increased marginally related to personnel expenses.

我們第四季的承保費用率從 2022 年同期的 3.7% 上升至 5.5%。本季費用率包含存款利息費用1.5個百分點。存款利息支出來自存款帳戶的追溯汽車合同，該合約在本季度​​經歷了良好的發展。剔除存款利息費用後，承保費用率與人員費用相關，略有上升。

Total general and administrative expenses increased by $6.5 million during the fourth quarter to $15.4 million, compared to $8.9 million in the fourth quarter of 2022. Approximately $4.4 million of the increase related to non-recurring costs of the management transition, and the remaining increase was due primarily to higher headcount compared to the same period in 2022. We reported total net investment income of $13.6 million during the fourth quarter of 2023, compared to $32.5 million in 2022. We earned $8.6 million of interest income on our restricted cash and cash equivalents and on our funds at Lloyd's.

第四季的一般和管理費用總額增加了 650 萬美元，達到 1,540 萬美元，而 2022 年第四季為 890 萬美元。其中約 440 萬美元的成長與管理層過渡的非經常性費用有關，其餘成長主要是由於與 2022 年同期相比員工人數增加。我們報告 2023 年第四季的總淨投資收入為 1,360 萬美元，而 2022 年為 3,250 萬美元。我們透過受限制的現金和現金等價物以及勞合社的資金賺取了 860 萬美元的利息收入。

Our investment in the Solasglas fund reported a gain of $0.9 million or 0.3% and our innovations investments reported a net unrealized gain of $4 million in the fourth quarter.

我們對 Solasglas 基金的投資報告了 90 萬美元的收益，即 0.3%，我們的創新投資報告第四季度的未實現淨收益為 400 萬美元。

At the end of the fourth quarter, our fully diluted book value per share was $16.74, an increase of 3.7% from September 30, 2023, and an increase of 16.8% from December 31, 2022. I should mention that we have revised our calculation for basic and fully diluted book values per share. In prior years, we calculated the basic book value per share by adjusting the denominator to exclude certain unearned performance-based restricted shares. The revised calculation uses the total outstanding ordinary shares when calculating the denominator for basic book value per share. We then add all unvested restricted stock units and any in the money options to the denominator to calculate the fully diluted book value per share. We believe this better reflects the ultimate dilution to our shareholders. Please refer to our earnings press release and Form 10-K filed yesterday for the revised calculations.

截至第四季末，我們的每股完全攤薄帳面價值為16.74美元，較2023年9月30日成長3.7%，較2022年12月31日成長16.8%。我應該要提到的是，我們已經修改了基本每股帳面價值和完全稀釋每股帳面價值的計算。往年，我們透過調整分母來計算每股基本帳面價值，以排除某些未實現的績效限制性股票。修訂後的計算方法在計算每股基本帳面價值的分母時使用已發行普通股總數。然後，我們將所有未歸屬的限制性股票單位和任何價內選擇權加到分母上，以計算完全稀釋的每股帳面價值。我們相信這更好地反映了我們股東的最終稀釋。請參閱我們的收益新聞稿和昨天提交的 10-K 表，以了解修訂後的計算結果。

Our shareholders' equity at December 31, 2023, increased by $93 million to $596 million, reaching the highest level since 2017.

截至2023年12月31日，我們的股東權益增加了9,300萬美元，達到5.96億美元，達到2017年以來的最高水準。

In conclusion, the company ended the year with a very strong performance from both a financial and capital perspective, and we are well positioned going into 2024 to continue delivering on our financial metrics and growing the book value for our shareholders.

總而言之，從財務和資本的角度來看，公司在今年結束時都取得了非常強勁的業績，我們處於有利位置，可以在 2024 年繼續實現我們的財務指標並為股東增加賬面價值。

Pat will now discuss the January 1 renewal season.

帕特現在將討論 1 月 1 日的續約賽季。

Thank you, Faramarz. Good morning, everyone. The January 1 renewal season is key for Greenlight Re as over 60% of our business incepts on January 1. We are very pleased with how January 1, 2024, progressed. Market conditions remained very attractive, and we took advantage of those conditions to grow our business in key segments. I will provide an overview of our January 1, 2024, book in key areas.

謝謝你，法拉瑪茲。大家，早安。1 月 1 日續約季節對於 Greenlight Re 來說至關重要，因為我們超過 60% 的業務是在 1 月 1 日開始營業的。我們對 2024 年 1 月 1 日的進展感到非常滿意。市場條件仍然非常有吸引力，我們利用這些條件來發展我們在關鍵領域的業務。我將對 2024 年 1 月 1 日出版的這本書的關鍵領域進行概述。

Generally, our funds of Lloyd's book incept on January 1. We have been a material player in this market for a few years, and we were optimistic for the prospects of Lloyd's in 2024 after several years of material rate increases in the Lloyd's market. This year, we found an increase in the volume of capital interested in the funds of Lloyd's market, but we leveraged our deep and ongoing relationships to continue supporting the Lloyd's syndicates where we see attractive opportunities.

一般來說，我們的勞合社帳簿資金於 1 月 1 日開始生效。我們多年來一直是這個市場的材料參與者，經過幾年勞合社市場材料費率的上漲，我們對勞合社 2024 年的前景感到樂觀。今年，我們發現對勞合社市場基金感興趣的資本量有所增加，但我們利用我們深厚且持續的關係，繼續支持勞合社集團，我們看到了有吸引力的機會。

A material element of our specialty book also renews on January 1. In general, the specialty market maintained pricing discipline, but rates up low single digits. It was very competitive on signings as many of our competitors wanted to grow in this space. We anticipated this trend, and as a result, we offered lines early on target accounts. This strategy worked well. We grew our specialty book on January 1 significantly through a combination of increased signings and some new account wins.

我們的專業書籍的一個材料元素也將於 1 月 1 日更新。整體而言，專業市場維持定價紀律，但價格上漲幅度較低。簽約方面的競爭非常激烈，因為我們的許多競爭對手都希望在這個領域發展。我們預見了這一趨勢，因此，我們很早就為目標客戶提供了線路。這個策略很有效。透過增加簽約和贏得一些新客戶，我們在 1 月 1 日的專業圖書數量顯著增長。

The third element of our book with a strong January 1 focus is our property book. We saw some weakening in this space with more capacity entering the market, which enables modest softening and seeding commissions and profit commissions over January 1, 2023. Despite this, the market remains very attractive, and we grew this portfolio meaningfully over 2023 through a combination of new clients and improved signings.

我們書中將重點放在 1 月 1 日的第三個要素是我們的房產手冊。我們看到，隨著更多產能進入市場，這一領域出現了一些疲軟，這使得 2023 年 1 月 1 日期間的種子佣金和利潤佣金略有下降。儘管如此，市場仍然非常有吸引力，我們透過新客戶和簽約數量的增加，在 2023 年顯著擴大了這一投資組合。

Our North Atlantic hurricane exposure on a 1 in 250 occurrence basis increased by 11% to $89.7 million, reflecting this increased volume. Relative to our surplus, the 1 in 250 exposure has decreased marginally. We now renewed one large homeowner's account that had caused us some pain in 2023 with the heavy convective storm season. The non-renewal of this account improves the overall balance of the portfolio.

我們的北大西洋颶風風險（以每 250 次發生 1 次計算）增加了 11%，達到 8,970 萬美元，反映了數量的增加。相對於我們的盈餘，250 分之一的風險敞口略有下降。我們現在續簽了一位大型房主的帳戶，該帳戶在 2023 年的強烈對流風暴季節給我們帶來了一些痛苦。該帳戶的不續約改善了投資組合的整體平衡。

In total, we estimate our overall premium volume to be slightly up year-on-year. Despite the non-renewal of the homeowner's account, our overall portfolio is now better balanced with increased margin potential. We are enthusiastic about the positioning of our portfolio for 2024. We are seeing indications that we are likely close to the peak of the hard market. We are focused on taking full advantage of the current market opportunity. 2024 is off to a strong start.

總的來說，我們預計我們的整體保費金額將比去年同期略有上升。儘管房主帳戶沒有更新，但我們的整體投資組合現在更加平衡，利潤潛力增加。我們對 2024 年投資組合的定位充滿熱情。我們看到有跡象表明我們可能已經接近硬市場的頂峰。我們專注於充分利用當前的市場機會。 2024 年有一個好的開始。

Now I'll turn the call back to the operator who will open it up for questions.

現在我會將電話轉回給接線員，接線員會打開電話詢問問題。

(Operator Instructions) Daniel DeYoung, Columbia Management.

（操作員說明）Daniel DeYoung，哥倫比亞管理公司。

Hi. I'm not from Columbia Management, but I have a few questions regarding the innovations business. Do you expect any change in strategy there? Can it be compared to venture capital investing, which I would perceive is quite risky? And then I note the $4 million unrealized gain in the fourth quarter. If I can ask what the source of that was and if there have been any realized gains in the past from the innovations business. Thank you.

你好。我不是來自哥倫比亞管理公司，但我有一些關於創新業務的問題。您預計那裡的策略會有任何改變嗎？它可以與我認為風險很大的創投相比嗎？然後我注意到第四季有 400 萬美元的未實現收益。我能否問一下，其來源是什麼，以及過去是否從創新業務中獲得了任何已實現的收益。謝謝。

Hi, this is Greg. Thanks for your question. I'll start with the first part and then I'll pass it on to Faramarz, our CFO, for the financial questions. I'm still getting my arms around the innovations business. I tell you what I've seen impresses me, especially given some of my experience in that space over the years. First of all, it has sort of an insurtech flavor to it. But what I like about it is our strategy is also coupled -- we always look for experienced veterans. So I believe in the insurtech space, a combination of technology with experience, that blend is really the winning combination.

嗨，這是格雷格。謝謝你的提問。我將從第一部分開始，然後將其轉交給我們的財務長 Faramarz，以解決財務問題。我仍然致力於創新業務。我告訴你我所看到的讓我印象深刻的事情，特別是考慮到我多年來在該領域的一些經驗。首先，它有某種保險科技的味道。但我喜歡的是我們的策略也是耦合的——我們總是尋找經驗豐富的退伍軍人。因此，我相信在保險科技領域，技術與經驗的結合，這種融合確實是成功的組合。

The other thing I like is it's very niche oriented. We get into these investments and these opportunities in pretty early stage. It's something where Greenlight, with our smaller size, we carry a bigger stick than we might if we were competing head-to-head, say, with Munich Re or Hanover Re. So I think I like that aspect of it. We put a dedicated team of experts in it. They know what they're doing. We focus a lot of resources. We're not just dabbling in it. We really invest in it.

我喜歡的另一件事是它非常面向利基市場。我們在很早的階段就進入了這些投資和機會。在這一點上，綠光雖然規模較小，但與慕尼黑再保險公司或漢諾威再保險等公司正面競爭時，我們所持的棍子卻更大。所以我想我喜歡它的這一方面。我們在其中配備了專門的專家團隊。他們知道自己在做什麼。我們集中了很多資源。我們不只是涉足其中。我們確實對此進行了投資。

The other aspect being niche, we're avoiding segments where there's really strong, entrenched incumbents that have significant economies of scale. And frankly, we do have a pretty good track record in this space, and I think Faramarz can talk about it. So at this point, I don't envision any change to it. I think we've got a sizable play in it. I think we've got to make sure that we're managing well the portfolio that we have as we look for areas to grow or expand. But from what I've seen, I'm pleased with it. Faramarz?

另一方面是利基市場，我們正在避開那些真正強大、根深蒂固、具有顯著規模經濟的現有企業的細分市場。坦白說，我們在這個領域確實有相當好的記錄，我認為 Faramarz 可以談論這一點。所以在這一點上，我不認為會有任何改變。我認為我們有很大的發揮。我認為，在尋找成長或擴張領域時，我們必須確保妥善管理現有的投資組合。但從我所看到的情況來看，我對此感到滿意。法拉瑪茲？

Yes, so let me jump in on your second part, Daniel. In regard to the unrealized gains for the quarter, the $4 million relates to about four investments in total. As we've mentioned previously, the way we mark up our innovation investments is based on a new round of financing by the same investee. And once they have closed the round, that gives us an indication of a new observable price. And that's the price we apply to the securities that we're holding.

是的，所以讓我開始講你的第二部分，丹尼爾。至於本季的未實現收益，400 萬美元總共涉及約四項投資。正如我們之前提到的，我們對創新投資進行標記的方式是基於同一被投資者的新一輪融資。一旦他們結束了這輪融資，我們就會看到新的可觀察價格。這就是我們對我們所持有的證券所適用的價格。

In terms of the unrealized gains versus realized gains, we look for any impairment on a quarterly basis. And if we notice that there is any indication that triggers a valuation allowance or an impairment, we will take that right away. And to write it up, we'll delay until we actually see some evidence of an increase in valuation.

就未實現收益與已實現收益而言，我們按季度尋找任何減損情況。如果我們發現有任何跡象會觸發估值準備或減值，我們將立即採取行動。為了寫下來，我們會推遲，直到我們真正看到一些估值上升的證據。

To date, we've realized some losses from some of our older investments, but we haven't realized any gains, i.e., we haven't actually sold any of the investments in our portfolio. These are longer-term duration investments. We invest when they're in an initial start-up stage and seed investments. Generally, we would wait until they're fully matured until we are able to recognize any gains on them. But there are a number of positions in our portfolio that are moving in that direction. I hope that answers your question.

到目前為止，我們已經意識到一些舊投資的一些損失，但我們還沒有實現任何收益，也就是說，我們實際上還沒有出售投資組合中的任何投資。這些是長期投資。我們在他們處於初始啟動階段和種子投資時進行投資。一般來說，我們會等到它們完全成熟，直到我們能夠認識到它們的任何好處。但我們的投資組合中有許多部位正在朝這個方向發展。我希望這能回答你的問題。

Yes. Thank you very much.

是的。非常感謝。

(Operator Instructions)

（操作員說明）

Thank you. There are no additional questions at this time. Should you have any follow up questions, please direct them to Karin Daly of the Equity Group at ir@greenlightre.ky, and she'll be happy to assist you.

謝謝。目前沒有其他問題。如果您有任何後續問題，請直接聯絡 Equity Group 的 Karin Daly，電子郵件為 ir@greenlightre.ky，她將很樂意為您提供協助。

This now conclude Greenlight Re's fourth quarter and year-end 2023 earnings conference call. Thank you. You may now disconnect.

Greenlight Re 的第四季和 2023 年年底財報電話會議至此結束。謝謝。您現在可以斷開連線。