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: | October 23, 2015 |
• | Gross written premiums of $134.6 million, an increase from $97.2 million in the third quarter of 2014; net earned premiums were $102.0 million, an increase from $79.5 million reported in the prior-year period. |
• | An underwriting loss of $27.6 million, compared to underwriting income of $4.0 million in the third quarter of 2014. |
• | A composite ratio for the nine months ended September 30, 2015 of 111.0% compared to 94.2% for the prior year period. The combined ratio for the nine months ended September 30, 2015 was 117.4% compared to 100.6% for the prior year period. |
• | A net investment loss of 14.2% on Greenlight Re's investment portfolio managed by DME Advisors, LP compared to a net investment loss of 3.7% in the third quarter of 2014. For the first nine months of 2015, the net investment loss was $236.5 million, representing a loss of 16.9%, compared to net investment income of $49.8 million during the comparable period in 2014 when Greenlight Re reported a 3.2% gain. |
• | During the third quarter 2015, Greenlight Re repurchased 473,540 Class A ordinary shares at an average price of $28.41. Greenlight Re can repurchase up to an additional 1,386,460 Class A ordinary |
September 30, 2015 | December 31, 2014 | ||||||
(unaudited) | (audited) | ||||||
Assets | |||||||
Investments | |||||||
Debt instruments, trading, at fair value | $ | 28,657 | $ | 49,212 | |||
Equity securities, trading, at fair value | 966,755 | 1,266,175 | |||||
Other investments, at fair value | 108,125 | 115,591 | |||||
Total investments | 1,103,537 | 1,430,978 | |||||
Cash and cash equivalents | 99,351 | 12,030 | |||||
Restricted cash and cash equivalents | 1,046,157 | 1,296,914 | |||||
Financial contracts receivable, at fair value | 14,872 | 47,171 | |||||
Reinsurance balances receivable | 156,952 | 151,185 | |||||
Loss and loss adjustment expenses recoverable | 3,253 | 11,523 | |||||
Deferred acquisition costs, net | 54,023 | 34,420 | |||||
Unearned premiums ceded | 2,680 | 4,027 | |||||
Notes receivable | 27,546 | 1,566 | |||||
Other assets | 6,008 | 5,478 | |||||
Total assets | $ | 2,514,379 | $ | 2,995,292 | |||
Liabilities and equity | |||||||
Liabilities | |||||||
Securities sold, not yet purchased, at fair value | $ | 800,105 | $ | 1,090,731 | |||
Financial contracts payable, at fair value | 25,864 | 44,592 | |||||
Due to prime brokers | 266,975 | 211,070 | |||||
Loss and loss adjustment expense reserves | 302,165 | 264,243 | |||||
Unearned premium reserves | 189,945 | 128,736 | |||||
Reinsurance balances payable | 18,652 | 40,372 | |||||
Funds withheld | 6,428 | 6,558 | |||||
Other liabilities | 12,629 | 14,949 | |||||
Total liabilities | 1,622,763 | 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, 30,772,572 (2014: 31,129,648): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,895 (2014: 6,254,895)) | 3,703 | 3,738 | |||||
Additional paid-in capital | 495,258 | 500,553 | |||||
Retained earnings | 368,392 | 660,860 | |||||
Shareholders’ equity attributable to shareholders | 867,353 | 1,165,151 | |||||
Non-controlling interest in joint venture | 24,263 | 28,890 | |||||
Total equity | 891,616 | 1,194,041 | |||||
Total liabilities and equity | $ | 2,514,379 | $ | 2,995,292 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | |||||||||||||||
Gross premiums written | $ | 134,568 | $ | 97,200 | $ | 357,240 | $ | 249,755 | |||||||
Gross premiums ceded | (2,288 | ) | (2,706 | ) | (5,782 | ) | (11,405 | ) | |||||||
Net premiums written | 132,280 | 94,494 | 351,458 | 238,350 | |||||||||||
Change in net unearned premium reserves | (30,286 | ) | (15,003 | ) | (62,986 | ) | 40,685 | ||||||||
Net premiums earned | 101,994 | 79,491 | 288,472 | 279,035 | |||||||||||
Net investment income (loss) | (191,322 | ) | (54,027 | ) | (236,456 | ) | 49,755 | ||||||||
Other income (expense), net | (542 | ) | 2,664 | (2,714 | ) | 1,445 | |||||||||
Total revenues | (89,870 | ) | 28,128 | 49,302 | 330,235 | ||||||||||
Expenses | |||||||||||||||
Loss and loss adjustment expenses incurred, net | 97,421 | 53,028 | 237,281 | 177,035 | |||||||||||
Acquisition costs, net | 32,146 | 22,478 | 82,926 | 85,844 | |||||||||||
General and administrative expenses | 5,382 | 6,013 | 18,436 | 17,771 | |||||||||||
Total expenses | 134,949 | 81,519 | 338,643 | 280,650 | |||||||||||
Income (loss) before income tax expense | (224,819 | ) | (53,391 | ) | (289,341 | ) | 49,585 | ||||||||
Income tax benefit | 1,233 | 254 | 1,394 | 828 | |||||||||||
Net income (loss) including non-controlling interest | (223,586 | ) | (53,137 | ) | (287,947 | ) | 50,413 | ||||||||
Loss (income) attributable to non-controlling interest in joint venture | 3,909 | 1,369 | 4,627 | (1,509 | ) | ||||||||||
Net income (loss) | $ | (219,677 | ) | $ | (51,768 | ) | $ | (283,320 | ) | $ | 48,904 | ||||
Earnings (loss) per share | |||||||||||||||
Basic | $ | (5.98 | ) | $ | (1.40 | ) | $ | (7.73 | ) | $ | 1.31 | ||||
Diluted | $ | (5.98 | ) | $ | (1.40 | ) | $ | (7.73 | ) | $ | 1.29 | ||||
Weighted average number of ordinary shares used in the determination of earnings and loss per share | |||||||||||||||
Basic | 36,710,216 | 36,984,650 | 36,636,464 | 37,214,809 | |||||||||||
Diluted | 36,710,216 | 36,984,650 | 36,636,464 | 37,874,627 |
Nine months ended September 30 | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Frequency | Severity | Total | Frequency | Severity | Total | ||||||||||||
Loss ratio | 87.4 | % | 5.4 | % | 82.3 | % | 66.8 | % | 14.5 | % | 63.4 | % | |||||
Acquisition cost ratio | 27.9 | % | 41.3 | % | 28.7 | % | 31.5 | % | 19.3 | % | 30.8 | % | |||||
Composite ratio | 115.3 | % | 46.7 | % | 111.0 | % | 98.3 | % | 33.8 | % | 94.2 | % | |||||
Internal expense ratio | 4.9 | % | 5.5 | % | |||||||||||||
Corporate expense ratio | 1.5 | % | 0.9 | % | |||||||||||||
Combined ratio | 117.4 | % | 100.6 | % |