Greenlight Capital Re Ltd. (GLRE, Financial) filed Quarterly Report for the period ended 2010-03-31.
Greenlight Capital Re Ltd. has a market cap of $769.34 million; its shares were traded at around $25.59 with a P/E ratio of 4.48 and P/S ratio of 1.84. GLRE is in the portfolios of Daniel Loeb of Third Point, LLC, Bill Ackman of Pershing Square Capital Management, L.P., John Griffin of Blue Ridge Capital, Murray Stahl of Horizon Asset Management, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC.
During the three months ended March 31, 2010, the basic adjusted book value per share decreased by $0.37 per share, or 1.9%, to $18.87 per share from $19.24 per share at December 31, 2009. During the three months ended March 31, 2010, fully diluted adjusted book value decreased by $0.35 per share, or 1.9%, to $18.60 per share from $18.95 per share at December 31, 2009.
We expect quarterly reporting of premiums written to remain volatile as our underwriting portfolio continues to develop. The composition of premiums written between frequency and severity business will vary from quarter to quarter depending on the specific market opportunities that we pursue. The volatility in premiums is reflected in the premiums written for both frequency business and severity business when comparing the three month periods ended March 31, 2010 and 2009. In the first quarter of 2010, we identified a new opportunity relating to credit and surety markets (which we have classified as “Specialty – Financial” in our line of business analysis) which accounted for $4.1 million of the increase in frequency premiums written for the three months ended March 31, 2010. The remaining $1.6 million of increase in frequency premiums written was the net impact of increases in our personal lines, health, and general liability lines partially offset by decreases in motor liability and workers' compensation lines. The decrease in motor liability premiums resulted from the termination of a poorly performing contract and a deteriorating motor liability market, while the decrease in workers compensation lines was mainly a result of decreases in the underlying insured policies due to the current economic slowdown.
For the three months ended March 31, 2010, our ceded premiums were $0.6 million compared to $1.2 million of ceded premiums for same period in 2009. The decrease in ceded premiums was primarily the result of decreases in health and workers compensation lines which were partially offset by an increase in our general liability line. While the health premiums written increased for the three months ended March 31, 2010, the health premiums ceded decreased. This was due to one of our ceding insurers retaining the excess layer of coverage which in turn no longer required us to obtain retrocession coverage of the excess layer on those health contracts.
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Greenlight Capital Re Ltd. has a market cap of $769.34 million; its shares were traded at around $25.59 with a P/E ratio of 4.48 and P/S ratio of 1.84. GLRE is in the portfolios of Daniel Loeb of Third Point, LLC, Bill Ackman of Pershing Square Capital Management, L.P., John Griffin of Blue Ridge Capital, Murray Stahl of Horizon Asset Management, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC.
Highlight of Business Operations:
For the three months ended March 31, 2010, we reported a net loss of $12.4 million, as compared to a net income of $27.8 million reported for the same period in 2009. The net loss is principally due to our investment portfolio reporting a net loss of $16.8 million, or a loss of 1.9%, for the first quarter of 2010 as compared to a net investment income of $27.7 million, or a return of 4.6%, for the same period in 2009. The underwriting income for the three months ended March 31, 2010 was $9.3 million compared to $2.8 million for the same period in 2009. The increase in the underwriting income for the three months ended March 31, 2010 was principally due to no major catastrophe losses being reported during the period as compared to the same period in 2009, as well as a gain reported on commutation of a severity contract during the first quarter of 2010.During the three months ended March 31, 2010, the basic adjusted book value per share decreased by $0.37 per share, or 1.9%, to $18.87 per share from $19.24 per share at December 31, 2009. During the three months ended March 31, 2010, fully diluted adjusted book value decreased by $0.35 per share, or 1.9%, to $18.60 per share from $18.95 per share at December 31, 2009.
We expect quarterly reporting of premiums written to remain volatile as our underwriting portfolio continues to develop. The composition of premiums written between frequency and severity business will vary from quarter to quarter depending on the specific market opportunities that we pursue. The volatility in premiums is reflected in the premiums written for both frequency business and severity business when comparing the three month periods ended March 31, 2010 and 2009. In the first quarter of 2010, we identified a new opportunity relating to credit and surety markets (which we have classified as “Specialty – Financial” in our line of business analysis) which accounted for $4.1 million of the increase in frequency premiums written for the three months ended March 31, 2010. The remaining $1.6 million of increase in frequency premiums written was the net impact of increases in our personal lines, health, and general liability lines partially offset by decreases in motor liability and workers' compensation lines. The decrease in motor liability premiums resulted from the termination of a poorly performing contract and a deteriorating motor liability market, while the decrease in workers compensation lines was mainly a result of decreases in the underlying insured policies due to the current economic slowdown.
For the three months ended March 31, 2010, our ceded premiums were $0.6 million compared to $1.2 million of ceded premiums for same period in 2009. The decrease in ceded premiums was primarily the result of decreases in health and workers compensation lines which were partially offset by an increase in our general liability line. While the health premiums written increased for the three months ended March 31, 2010, the health premiums ceded decreased. This was due to one of our ceding insurers retaining the excess layer of coverage which in turn no longer required us to obtain retrocession coverage of the excess layer on those health contracts.
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