Cayman Islands (State or other jurisdiction of incorporation) | 001-33493 (Commission file number) | N/A (IRS employer identification no.) |
65 Market Street, Suite 1207, Jasmine Court, Camana Bay, P.O. Box 31110 Grand Cayman, Cayman Islands (Address of principal executive offices) | KY1-1205 (Zip code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
GREENLIGHT CAPITAL RE, LTD. | ||
(Registrant) | ||
By: | /s/ Tim Courtis | |
Name: | Tim Courtis | |
Title: | Chief Financial Officer | |
Date: | August 3, 2015 |
• | Gross written premiums of $93.0 million, an increase from $33.7 million in the second quarter of 2014; net earned premiums were $91.7 million, an increase from $87.9 million reported in the prior-year period. |
• | An underwriting loss of $8.9 million, compared to underwriting income of $5.6 million in the second quarter of 2014. |
• | A composite ratio for the six months ended June 30, 2015 of 102.2% compared to 93.9% for the prior year period. The combined ratio for the six months ended June 30, 2015 was 109.2% compared to 99.8% for the prior year period. |
• | A net investment loss of 1.5% on Greenlight Re's investment portfolio managed by DME Advisors, LP compared to a net investment gain of 8.1% in the second quarter of 2014. For the first six months of 2015, the net investment loss was $45.1 million, representing a loss of 3.2%, compared to net investment income of $103.8 million during the comparable period in 2014 when Greenlight Re reported a 7.3% return. |
• | During the second quarter and in July 2015, Greenlight Re repurchased 500,000 Class A ordinary shares at an average price of $29.32. Greenlight Re can repurchase up to an additional 1,500,000 Class A ordinary shares or securities convertible into Class A ordinary shares in the open market under its current share repurchase plan, which expires on June 30, 2016. |
June 30, 2015 | December 31, 2014 | ||||||
(unaudited) | (audited) | ||||||
Assets | |||||||
Investments | |||||||
Debt instruments, trading, at fair value | $ | 43,482 | $ | 49,212 | |||
Equity securities, trading, at fair value | 1,217,462 | 1,266,175 | |||||
Other investments, at fair value | 157,629 | 115,591 | |||||
Total investments | 1,418,573 | 1,430,978 | |||||
Cash and cash equivalents | 90,955 | 12,030 | |||||
Restricted cash and cash equivalents | 1,649,016 | 1,296,914 | |||||
Financial contracts receivable, at fair value | 38,031 | 47,171 | |||||
Reinsurance balances receivable | 141,010 | 151,185 | |||||
Loss and loss adjustment expenses recoverable | 2,906 | 11,523 | |||||
Deferred acquisition costs, net | 43,055 | 34,420 | |||||
Unearned premiums ceded | 2,683 | 4,027 | |||||
Notes receivable | 29,857 | 1,566 | |||||
Other assets | 8,742 | 5,478 | |||||
Total assets | $ | 3,424,828 | $ | 2,995,292 | |||
Liabilities and equity | |||||||
Liabilities | |||||||
Securities sold, not yet purchased, at fair value | $ | 1,285,354 | $ | 1,090,731 | |||
Financial contracts payable, at fair value | 28,035 | 44,592 | |||||
Due to prime brokers | 515,063 | 211,070 | |||||
Loss and loss adjustment expense reserves | 270,435 | 264,243 | |||||
Unearned premium reserves | 160,172 | 128,736 | |||||
Reinsurance balances payable | 16,642 | 40,372 | |||||
Funds withheld | 6,861 | 6,558 | |||||
Other liabilities | 14,770 | 14,949 | |||||
Total liabilities | 2,297,332 | 1,801,251 | |||||
Equity | |||||||
Preferred share capital (par value $0.10; authorized, 50,000,000; none issued) | — | — | |||||
Ordinary share capital (Class A: par value $0.10; authorized, 100,000,000; issued and outstanding, 31,209,651 (2014: 31,129,648): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,895 (2014: 6,254,895)) | 3,746 | 3,738 | |||||
Additional paid-in capital | 500,641 | 500,553 | |||||
Retained earnings | 594,937 | 660,860 | |||||
Shareholders’ equity attributable to shareholders | 1,099,324 | 1,165,151 | |||||
Non-controlling interest in joint venture | 28,172 | 28,890 | |||||
Total equity | 1,127,496 | 1,194,041 | |||||
Total liabilities and equity | $ | 3,424,828 | $ | 2,995,292 |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | |||||||||||||||
Gross premiums written | $ | 92,990 | $ | 33,654 | $ | 222,672 | $ | 152,555 | |||||||
Gross premiums ceded | (1,868 | ) | (2,759 | ) | (3,494 | ) | (8,699 | ) | |||||||
Net premiums written | 91,122 | 30,895 | 219,178 | 143,856 | |||||||||||
Change in net unearned premium reserves | 563 | 56,960 | (32,700 | ) | 55,688 | ||||||||||
Net premiums earned | 91,685 | 87,855 | 186,478 | 199,544 | |||||||||||
Net investment income (loss) | (20,305 | ) | 113,932 | (45,134 | ) | 103,782 | |||||||||
Other income (expense), net | (3,760 | ) | (1,400 | ) | (2,172 | ) | (1,218 | ) | |||||||
Total revenues | 67,620 | 200,387 | 139,172 | 302,108 | |||||||||||
Expenses | |||||||||||||||
Loss and loss adjustment expenses incurred, net | 76,653 | 56,644 | 139,860 | 124,007 | |||||||||||
Acquisition costs, net | 23,939 | 25,570 | 50,780 | 63,366 | |||||||||||
General and administrative expenses | 6,894 | 5,559 | 13,054 | 11,759 | |||||||||||
Total expenses | 107,486 | 87,773 | 203,694 | 199,132 | |||||||||||
Income (loss) before income tax expense | (39,866 | ) | 112,614 | (64,522 | ) | 102,976 | |||||||||
Income tax (expense) benefit | (54 | ) | 14 | 161 | 574 | ||||||||||
Net income (loss) including non-controlling interest | (39,920 | ) | 112,628 | (64,361 | ) | 103,550 | |||||||||
Income (loss) attributable to non-controlling interest in joint venture | 324 | (3,075 | ) | 718 | (2,878 | ) | |||||||||
Net income (loss) | $ | (39,596 | ) | $ | 109,553 | $ | (63,643 | ) | $ | 100,672 | |||||
Earnings (loss) per share | |||||||||||||||
Basic | $ | (1.06 | ) | $ | 2.94 | $ | (1.71 | ) | $ | 2.71 | |||||
Diluted | $ | (1.06 | ) | $ | 2.89 | $ | (1.71 | ) | $ | 2.66 | |||||
Weighted average number of ordinary shares used in the determination of earnings and loss per share | |||||||||||||||
Basic | 37,303,265 | 37,246,922 | 37,168,279 | 37,161,818 | |||||||||||
Diluted | 37,303,265 | 37,902,106 | 37,168,279 | 37,843,013 |
Six months ended June 30 | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Frequency | Severity | Total | Frequency | Severity | Total | ||||||||||||
Loss ratio | 78.7 | % | 37.8 | % | 75.0 | % | 65.4 | % | 10.5 | % | 62.1 | % | |||||
Acquisition cost ratio | 27.6 | % | 23.5 | % | 27.2 | % | 32.6 | % | 18.8 | % | 31.8 | % | |||||
Composite ratio | 106.3 | % | 61.3 | % | 102.2 | % | 98.0 | % | 29.3 | % | 93.9 | % | |||||
Internal expense ratio | 5.2 | % | 5.1 | % | |||||||||||||
Corporate expense ratio | 1.8 | % | 0.8 | % | |||||||||||||
Combined ratio | 109.2 | % | 99.8 | % |