Greenlight Capital Re Ltd. Q1 FY2025 earnings call

• Net income in Q1 2025 was $29.6 million, with fully diluted book value per share increasing by 5.1%. • Strong investment performance with Solasglas portfolio returning 7.2% in the quarter. • Underwriting loss of $7.8 million in the quarter, combined ratio 104.6%, dominated by California wildfires provision of $23.6 million. • Change in approach to open market casualty business, will access primarily through innovations channel leading to short-term contraction of casualty book. • Strengthened historical casualty reserves by $22 million in the quarter, released $11 million of specialty and $8 million of property reserves. • First quarter prior year development impact across all lines was $3.5 million or $2.1 million combined ratio points. • Broke out Innovation segment in financial statement disclosures first in March, performance in line with expectations, combined ratio 94.3%.

For the open market segment: Net written premiums grew by 16.6% in the quarter. It suffered a pretax loss of $3.2 million, mainly due to California wildfires, with an underwriting loss of $8.9 million, partly offset by investment income of $5.8 million. The open market combined ratio was 106% in the first quarter. For the Innovation segment: Reported a pretax income of $0.9 million with underwriting income contributing $1.1 million. The combined ratio improved to 94.3%. Net written premiums were $24 million, lower by 8.7%.

• April 1 renewals are considerably less material than January 1, overall market conditions remain attractive and similar to 1/1.

• Tariffs could drive higher reconstruction costs, though not anticipating significant near-term impact on underwriting profitability. • Economic slowdown could reduce exposure but inflationary pressures increase loss costs. • Market turbulence could derail Brighthouse Financial's sale deal. • Slower consumer spending could impact Gaming stocks like PENN Entertainment.

Q: Are there any follow-up questions?

A: Should you have any follow-up questions, you may direct them to Karin Daly of The Equity Group Inc. at ir@greenlightre.ky, and she'll be happy to assist you.