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Mar 31, 2022

Greenlight Capital Re Q1 2022 Earnings Report

Reported a net loss impacted by exposure to the Russian-Ukrainian conflict.

Key Takeaways

Greenlight Capital Re reported a net loss of $5.7 million for the first quarter of 2022, impacted by the Russian-Ukrainian conflict. The investment portfolio managed by DME Advisors returned 1.7%.

Net loss for the quarter was $5.7 million.

Fully diluted book value per share decreased 2.4% to $13.65.

Combined ratio was 106.2%, compared to 101.5% in the first quarter of 2021.

Total investment income was $7.7 million, compared to $18.7 million in the first quarter of 2021.

Total Revenue
$133M
Previous year: $148M
-10.1%
EPS
-$0.17
Previous year: $0.19
-189.5%
Combined Ratio
106.2%
Previous year: 101.5%
+4.6%
Gross Profit
-$7.68M
Previous year: $146M
-105.2%
Cash and Equivalents
$31.3M
Previous year: $33.5M
-6.6%
Total Assets
$1.47B
Previous year: $1.42B
+3.3%

Greenlight Capital Re

Greenlight Capital Re

Forward Guidance

Greenlight Re is making progress in growing operations with the launch of Greenlight Innovation Syndicate 3456 and is well-positioned for inflationary headwinds while maintaining a cautious view of the equity markets.

Positive Outlook

  • Continued progress in growing operations.
  • Launch of Greenlight Innovation Syndicate 3456.
  • Well-positioned in the improving underwriting environment.
  • Generated a 1.7% investment return from the Solasglas fund.
  • Well-positioned for the inflationary headwinds affecting the economy.

Challenges Ahead

  • First quarter results were impacted by exposure to the Russian-Ukrainian conflict.
  • Maintaining a cautious view to the equity markets.
  • Appears likely that the 13 year-old bull market has come to an end.
  • Net underwriting loss of $7.7 million driven primarily by the Russian-Ukrainian conflict.
  • Decrease in fully diluted book value per share of $0.34, or 2.4%, to $13.65.