Greenlight Capital Re Ltd (GLRE) 2025 Q1 法說會逐字稿

Thank you for joining the Greenlight Capital Re Ltd first quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the prepared comments. You may press 1 at any time to be placed in the question queue.

感謝您參加 Greenlight Capital Re Ltd 2025 年第一季財報電話會議。此時，所有參與者都處於只聽模式。準備好的評論之後將進行問答環節。您可以隨時按 1 加入問題佇列。

It is now my pleasure to turn the call over to David Sigmon.

現在我很高興將電話轉給 David Sigmon。

Greenlight Capital Re's General Counsel.

Greenlight Capital Re 的總法律顧問。

Thank you. Please go ahead.

謝謝。請繼續。

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

謝謝，早安。我想提醒您，本次電話會議正在錄音，會議結束後可以重播，音訊重播也可在公司網站 www.greenlightre.com 的投資者專區找到。

Joining us on the call today will be our Chief Executive Officer, Greg Richardson, 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.

今天參加電話會議的有我們的執行長 Greg Richardson、董事會主席 David Einhorn 和財務長 Faramarz Romer。我謹代表公司提醒您，本次電話會議中可能會做出前瞻性陳述，這些陳述應受到聯邦證券法安全港條款的保護。

hese 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.

這些前瞻性陳述反映了公司目前對未來結果的預期、估計和預測，並受風險和不確定性的影響。因此，實際結果可能會有重大差異。

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.

無論明示或暗示，要了解更多可能影響未來業績的風險和其他因素的信息，投資者應查看公司不時向美國證券交易委員會提交的定期報告。

Additionally, management may refer to certain non-gap 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 10K for the year ended December 30, 2024. 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 Greg.

此外，管理階層可能會參考某些非差距財務措施。這些措施的對帳可以在公司向美國證券交易委員會提交的文件中找到，包括公司最近提交的截至 2024 年 12 月 30 日的年度 10K 表格。該公司不承擔公開更新或修改任何前瞻性聲明的義務。現在我很高興將電話轉給格雷格。

Thank you, David.

謝謝你，大衛。

Good morning, everyone, and thank you for joining us.

大家早安，感謝大家的收看。

We reported net income of $29.6 million in Q1 2025, which equates to an increase in fully diluted book value per share of 5.1% in the quarter.

我們報告 2025 年第一季的淨收入為 2,960 萬美元，相當於本季每股完全稀釋帳面價值增加 5.1%。

Our net income was driven by strong investment performance, with the solace class portfolio returning 7.2% in the quarter, tremendous outperformance during a volatile market downturn.

我們的淨收入是由強勁的投資業績推動的，其中安慰級投資組合在本季度回報率為 7.2%，在動蕩的市場低迷時期表現出色。

We recorded an underwriting loss, however, of $7.8 million in the quarter, which equates to a combined ratio of 104.6%. Our underwriting result in the 1st quarter was dominated by our provision for the California wildfires in January.

然而，本季我們記錄了 780 萬美元的承保損失，相當於綜合比率為 104.6%。我們第一季的承保業績主要受到一月份加州野火損失的撥備影響。

We booked a net wildfire loss of $23.6 million, which equates to 14 combined ratio points.

我們記錄了 2360 萬美元的淨野火損失，相當於 14 個綜合比率點。

Our provision is based on an industry ultimate loss estimate of $50 billion and is consistent with the $15 million to $30 million dollar range we disclosed on our fourth quarter, 2024 earnings call.

我們的撥備是基於 500 億美元的產業最終損失估計，與我們在 2024 年第四季財報電話會議上揭露的 1,500 萬至 3,000 萬美元的範圍一致。

Our industry loss estimate is at the higher end of the industry range in part because tariffs could drive higher reconstruction costs.

我們對產業損失的估計處於產業範圍的較高端，部分原因是關稅可能導致重建成本上升。

Overall, we don't anticipate tariffs will cause a significant impact on our underwriting profitability in the near term.

整體而言，我們預期關稅不會在短期內對我們的承保獲利能力造成重大影響。

On the one hand, inflationary pressures tend to increase loss costs.

一方面，通膨壓力往往會增加損失成本。

On the other hand, an economic slowdown, for example, reduced shipping activity, could reduce exposure.

另一方面，經濟放緩（例如航運活動減少）可能會降低風險敞口。

In the longer term, if tariffs trigger a major economic downturn, we believe our investment portfolio is well positioned.

從長遠來看，如果關稅引發嚴重的經濟衰退，我們相信我們的投資組合將處於有利地位。

David Einhorn will touch on this later.

David Einhorn 稍後會談到這一點。

The other material underwriting topic in the quarter is a change in our approach to open market casualty business.

本季的另一個重要承保主題是我們對公開市場傷亡業務的態度的改變。

Historically, we access casualty MGA business through both our open market channel and our innovations channel.

從歷史上看，我們透過公開市場管道和創新管道進入意外險 MGA 業務。

We have decided that going forward we will access casualty MGA business primarily through our innovations channel where we have better access to underlying data, a clear line of sight to the underlying economics of the business, and therefore more control.

我們決定，未來我們將主要透過創新管道進入意外險 MGA 業務，透過該管道我們可以更好地獲取基礎數據，清楚地了解業務的基礎經濟狀況，從而擁有更多的控制權。

In the short term this will lead to some contraction of our casualty book as we non-renew some open market casualty business.

短期內，這將導致我們的傷亡險帳簿縮減，因為我們不再續簽一些公開市場傷亡險業務。

In time, however, we expect to replace some of this volume with innovation's business.

然而，隨著時間的推移，我們希望用創新業務來取代其中的一部分。

It is also worth noting that we indirectly write casualty business through our fell participations.

另外值得注意的是，我們透過我們的參與間接地承保意外險業務。

As part of our review of casualty business, we strengthened our historical casualty reserves by $22 million in the quarter.

作為對傷亡業務審查的一部分，我們在本季度將歷史傷亡準備金增加了 2,200 萬美元。

Mainly relating to underwriting years 2014 to 2019.

主要涉及2014年至2019年的承保年度。

During our quarterly reserve review, we also released $11 million of specialty and $8 million of property reserves in the quarter.

在我們的季度儲備審查中，我們還在本季釋放了 1,100 萬美元的專業儲備和 800 萬美元的財產儲備。

Therefore, our first quarter prior year development impact across all lines was $3.5 million or 2.1 combined ratio points.

因此，我們第一季所有產品線對去年同期發展的影響為 350 萬美元或 2.1 個綜合比率點。

While underwriting performance in the quarter was disappointing, excluding the 14 points related to California wildfires, our first quarter combined ratio was strong and consistent with expectations.

雖然本季的承保業績令人失望，但不包括與加州野火相關的 14 個點，我們的第一季綜合比率強勁且符合預期。

In March, we highlighted a change to our financial statement disclosures where we broke out our innovation segment for the first time.

今年 3 月，我們強調了財務報表揭露的一項變化，首次將創新部分單獨列出。

The performance of our innovations book in the first quarter was in line with expectations, and we reported a combined ratio of 94.3% in that segment.

我們第一季的創新帳簿表現符合預期，該部門的綜合比率為 94.3%。

On our Q4 2024 call, I provided an update on our 11 renewal season and the market environment at that time.

在我們 2024 年第四季的電話會議上，我提供了有關我們的第 11 個續約季節和當時的市場環境的最新情況。

Well, April 1 renewals are considerably less material than January 1.

嗯，4 月 1 日的續約內容比 1 月 1 日的續約內容少很多。

Overall market conditions remain attractive and similar to one.

整體市場狀況依然具有吸引力，且與一成相似。

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

現在我想把電話轉給大衛。

Thanks, Greg, and good morning everyone.

謝謝，格雷格，大家早安。

The solacela fund returns 7.2% in the first quarter. Our short and macro portfolios contributed 5.0 and 4.6% respectively, and our long portfolio detracted 1.4%. During the quarter, the S&P 500 index declined 4.3%. The largest positive contributors were long investments in gold, Brighthouse Financial, and Lanxis.

索拉塞拉基金第一季回報率為7.2%。我們的短期和宏觀投資組合分別貢獻了 5.0% 和 4.6%，而我們的長期投資組合則減少了 1.4%。本季度，標普 500 指數下跌 4.3%。對黃金、Brighthouse Financial 和 Lanxis 的長期投資貢獻最大。

The largest detractors were long investments in core natural resources and Penn entertainment and a short position in a direct to consumer healthcare company.

最大的負面影響是對核心自然資源和賓州娛樂公司的長期投資，以及對直接面向消費者的醫療保健公司的空頭部位。

Gold was the largest positive contributor as it appreciated 19% over the quarter. White House financial shares advanced 21% during the quarter. This followed news that the company is looking to sell itself and has hired Goldman Sachs and Wells Fargo as advisors. There appears to be significant interest from large asset managers who are particularly interested in managing Bright House's large general account.

黃金是最大的積極貢獻者，在本季度上漲了 19%。本季白宮金融股上漲了 21%。此前有消息稱，該公司正在尋求出售自己，並已聘請高盛和富國銀行擔任顧問。大型資產管理公司似乎對此表現出濃厚興趣，他們尤其對管理 Bright House 的大型一般帳戶感興趣。

While there is a risk the current market turbulence could derail a deal, we expect the company will be successful in selling itself at a healthy premium.

儘管當前的市場動盪可能會破壞交易，但我們預計該公司將成功以合理的溢價出售。

Laxa's shares advanced 18% during the quarter.

本季度，Laxa 的股價上漲了 18%。

More natural resources shares fell 28% over the quarter. It is the company that was created with the merger of Consol Energy and Arch Resources in January. In 2025, the combined company has suffered from falling coal prices and reduced production due to a fire in one of its mines.

本季度，更多自然資源股下跌了 28%。該公司是由 Consol Energy 和 Arch Resources 於今年 1 月合併而成。2025年，合併後的公司遭遇煤炭價格下跌，並因一座礦坑發生火災而導致產量下降。

However, it has a conservative balance sheet and the capacity to repurchase a lot of stock this year. In fact, shortly after completing the merger, the company announced it had authorized a $1 billion share repurchase program, which is about a quarter of the current market value.

然而，其資產負債表較保守，今年有能力回購大量股票。事實上，在完成合併後不久，該公司宣布已批准一項 10 億美元的股票回購計劃，約佔當前市值的四分之一。

And entertainment shares declined 18% over the quarter as gaming stocks broadly fell on fears of slower consumer spending. Also, investors have become more pessimistic on the viability of Penn's online sports betting business ESPN bet.

由於擔心消費者支出放緩，遊戲類股普遍下跌，娛樂股本季下跌 18%。此外，投資者對賓州大學的線上運動博彩業務 ESPN bet 的可行性也變得更加悲觀。

In the United States, we're concerned that a significant economic slowdown is underway, led by reduced consumer spending. We've pivoted from conservative to bearish positioning and added several new short positions in consumer discretionary companies.

在美國，我們擔心由於消費支出減少，經濟正在大幅放緩。我們已經從保守立場轉向看跌立場，並在非必需消費品公司中增加了幾個新的空頭部位。

We also believe that the slowdown will require the Fed to lower interest rates more than the market expects and establish a long sofur position consistent with this view.

我們也認為，經濟放緩將需要聯準會以超越市場預期的幅度降息，並建立與此觀點一致的多頭部位。

After the liberation day trade announcements, we also added to our position in long duration inflation swaps and established tail protection for potential further depreciation of the dollar against the EUR and the JPY.

在解放日交易公告發布後，我們還增加了長期通膨掉期的頭寸，並為美元兌歐元和日圓可能進一步貶值建立了尾部保護。

We lowered our gross and net exposures based on our view. We've entered a bear market. Our net exposure ended the quarter at about 20%, down from 33% at the end of 2024, and we expressed mostly through net long investments in Europe.

根據我們的觀點，我們降低了總風險敞口和淨風險敞口。我們已經進入熊市。本季末，我們的淨敞口約為 20%，低於 2024 年底的 33%，主要透過在歐洲的淨多頭投資來體現。

[Salala] returned to 3.2% in April, bringing the 2025 year date return to 10.6%. Net exposure in the investment portfolio is approximately 22% at the end of April.

[Salala] 4 月回報率回升至 3.2%，使 2025 年的回報率達到 10.6%。4月底，投資組合的淨部位約為22%。

On the underwriting side, large loss from the California wildfires cloud with otherwise positive underlying trends in our underwriting portfolio. Greg and Tom Curnock, our group CEO, continue to overhaul our portfolio mix, which should advance Greenlight Capital Re's dual engine strategy. Now I'd like to turn the call over to Faramarz to discuss financial results in more detail.

在承保方面，加州野火造成的巨大損失給我們承保組合的積極潛在趨勢蒙上了陰影。我們的集團執行長 Greg 和 Tom Curnock 繼續改革我們的投資組合，這應該會推動 Greenlight Capital Re 的雙引擎策略。現在我想將電話轉給 Faramarz，更詳細地討論財務結果。

Thank you, David. Good morning everyone. During the first quarter of 2025, Green Light reported a net income of $29.6 million or $0.86 per diluted share compared to a net income of $27 million or $0.78 per diluted share during the first quarter of 2024.

謝謝你，大衛。大家早安。2025 年第一季度，Green Light 報告淨收入為 2,960 萬美元，即每股攤薄收益 0.86 美元，而 2024 年第一季淨收入為 2,700 萬美元，即每股攤薄收益 0.78 美元。

The underwriting loss of $7.8 million translated into a combined ratio of 104.6%. The first quarter cat losses added 14% points to our combined ratio, while the reserve development contributed 2.1% points to the combined ratio.

承保損失 780 萬美元，綜合成本率為 104.6%。第一季的巨災損失使我們的綜合成本率增加了 14 個百分點，而儲備金開發則為綜合成本率貢獻了 2.1 個百分點。

Our investments in the Solar class fund contributed $32.2 million of income.

我們對太陽能類基金的投資貢獻了 3,220 萬美元的收入。

Other investment income added an additional $8.3 million of income for the quarter, the majority of which related to interest on restricted cash and cash equivalents, collateralizing our obligations to the students.

其他投資收入為本季增加了 830 萬美元的收入，其中大部分與受限現金和現金等價物的利息有關，作為我們對學生義務的擔保。

I will now break down the underwriting results by our two segments.

我現在將按兩個部門細分承保結果。

For the quarter, the open market segment net ridden premiums by 16.6%. The increase was driven partly from growth in the foul business and partly from general liability contracts which were bound during 2024.

本季，公開市場部分淨保費上漲 16.6%。這一成長部分是由於污損業務的成長，部分是由於 2024 年生效的一般責任合約。

The segment suffered a pre-tax loss of $3.2 million mainly due to California wildfires, driving an underwriting loss of $8.9 million partly offset by investment income of $5.8 million for the segment.

該部門稅前虧損 320 萬美元，主要原因是加州野火，造成承保損失 890 萬美元，但該部門投資收益 580 萬美元部分抵銷了這一損失。

The open market combined ratio for the first quarter was 106% compared to 96.2% for the same period in 2024.

第一季公開市場綜合比率為 106%，而 2024 年同期為 96.2%。

The only weather related cat activity impacting us this quarter were the California wildfires, which added 18 combined ratio points to the segment.

本季對我們造成影響的唯一與天氣有關的貓科動物活動是加州的野火，這為該部分增加了 18 個綜合比率點。

By comparison, the cat activity during the same period last year was much lower at 9.4 combined ratio points.

相比之下，去年同期的貓活動率低得多，僅為 9.4 個綜合比率點。

The current year attritional loss ratio improved by 1.3% points to 54%. In prior year reserve development, primarily relating to the casualty book, added 2.9 points to the segment combined ratio.

本年度員工流動率改善了 1.3 個百分點，達到 54%。在上一年度的儲備金發展中，主要與傷亡險帳簿有關，為分部綜合比率增加了 2.9 個百分點。

Turning to our innovation segment, during the first quarter, we reported a pre-tax income of $0.9 million with underwriting income contributing $1.1 million.

談到我們的創新部門，在第一季度，我們報告的稅前收入為 90 萬美元，其中承銷收入貢獻了 110 萬美元。

The innovation segment combined ratio improved to 94.3% compared to 99.3% for the same period last year.

創新部門綜合成本率由去年同期的99.3%改善至94.3%。

Net ridden premiums of $24 million were lower by 8.7%, mainly related to the syndicate 3,456 and termination of underperforming programs.

淨附加保費為 2,400 萬美元，下降了 8.7%，主要與 3,456 個辛迪加和終止表現不佳的計劃有關。

There were no cat losses within the innovation segment.

創新部門沒有出現巨額損失。

The innovation loss ratio improved by 10.6 points, primarily driven by favorable reserve development and syndicate 3,456 underlying programs.

創新損失率改善了 10.6 個百分點，主要得益於有利的儲備發展和辛迪加 3,456 個基礎計畫。

The expense ratio for the innovation segments this quarter was 8.2% compared to 4.3% during the same quarter last year. Due to a combination of growth in personnel, an increase in indirect costs attributed to the segment, and lower earned premiums.

本季創新部門的費用率為 8.2%，去年同期為 4.3%。由於人員成長、部門間接成本增加以及保費收入下降等多種因素造成的。

We expect the expense ratio to normalize over time as the innovation's book of business grows.

我們預計，隨著創新業務的成長，費用率將逐漸正常化。

We ended the first quarter of 2025 with our fully diluted book value per share growing to $18.87 an increase of 8.5% from the first quarter of 2024.

截至 2025 年第一季度，我們的每股完全攤薄帳面價值成長至 18.87 美元，較 2024 年第一季成長 8.5%。

That concludes our prepared remarks. Operator, please open the lines for questions.

我們的準備好的演講到此結束。接線員，請打開熱線來回答問題。

Thank you. The floor is now open for questions. If you would like to ask a question, please press 1 on your telephone keypad at this time. A confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment please while we pull for questions.

謝謝。現在開始接受提問。如果您想提問，請此時按一下電話鍵盤上的 1。確認音將表示您的線路已進入問題佇列。如果您想從佇列中刪除您的問題，請按 2。對於使用揚聲器裝置的參與者，可能需要先拿起聽筒，然後按星號鍵。請稍等片刻，我們正在回答問題。

Thank you. As there are no questions at this time.

謝謝。因為現在沒有問題。

Should you have any follow up questions, you may direct them to Karen Day of the Equity Group Inc. At IR@ greenlightre.ky, and she'll be happy to assist you. This now concludes today's conference call for Green Light re's first quarter 2025.

如果您有任何後續問題，可以直接聯絡 Equity Group Inc. 的 Karen Day，電子郵件地址為 IR@greenlightre.ky，她會很樂意為您提供協助。今天的 Green Light re 2025 年第一季電話會議到此結束。

Thank you. You may now disconnect.

謝謝。您現在可以斷開連線。