Greenlight Re Announces Second Quarter 2024 Financial Results
Greenlight Capital Re, (NASDAQ: GLRE) reported its Q2 2024 financial results, showing 9.1% growth in gross premiums written to $169.0 million and a 13.2% increase in net premiums earned to $158.4 million. The company achieved net income of $8.0 million, or $0.23 per diluted ordinary share, compared to $49.9 million in Q2 2023. The combined ratio rose to 99.8% from 96.2% year-over-year, impacted by U.S. severe convective storm losses. Total investment income was $12.6 million, down from $42.2 million in Q2 2023. Fully diluted book value per share increased by 1.5% to $17.65. The company will host its 2024 Investor Day on November 19, 2024, in New York City.
Greenlight Capital Re, (NASDAQ: GLRE) ha riportato i risultati finanziari per il secondo trimestre del 2024, evidenziando una crescita del 9,1% nei premi lordi scritti fino a 169,0 milioni di dollari e un aumento del 13,2% nei premi netti guadagnati fino a 158,4 milioni di dollari. L'azienda ha raggiunto un utile netto di 8,0 milioni di dollari, ovvero 0,23 dollari per azione ordinaria diluita, rispetto ai 49,9 milioni di dollari nel Q2 2023. Il rapporto combinato è aumentato al 99,8% rispetto al 96,2% dell'anno precedente, influenzato dalle perdite causate da tempeste convettive severe negli Stati Uniti. L’utile totale degli investimenti è stato di 12,6 milioni di dollari, in calo rispetto ai 42,2 milioni di dollari nel Q2 2023. Il valore contabile per azione completamente diluito è aumentato dell'1,5% a 17,65 dollari. L'azienda ospiterà il proprio Investor Day 2024 il 19 novembre 2024 a New York City.
Greenlight Capital Re, (NASDAQ: GLRE) reportó sus resultados financieros del segundo trimestre de 2024, mostrando un crecimiento del 9,1% en las primas brutas suscritas hasta 169,0 millones de dólares y un aumento del 13,2% en las primas netas ganadas hasta 158,4 millones de dólares. La empresa logró un ingreso neto de 8,0 millones de dólares, o 0,23 dólares por acción ordinaria diluida, en comparación con 49,9 millones de dólares en el Q2 2023. El ratio combinado subió al 99,8% desde el 96,2% del año anterior, afectado por las pérdidas de tormentas convectivas severas en EE. UU. El ingreso total por inversiones fue de 12,6 millones de dólares, en caída respecto a los 42,2 millones de dólares en el Q2 2023. El valor contable total por acción diluida aumentó un 1,5% a 17,65 dólares. La empresa llevará a cabo su Investor Day 2024 el 19 de noviembre de 2024 en la ciudad de Nueva York.
그린라이트 캐피탈 리(Greenlight Capital Re) (NASDAQ: GLRE)는 2024년 2분기 재무 결과를 발표하며 총 서면 보험료 9.1% 증가를 기록하여 1억 6,900만 달러에 도달하고, 순 보험료 수익 13.2% 증가를 기록하여 1억 5,840만 달러에 도달했다고 밝혔습니다. 회사는 순이익 800만 달러, 즉 희석된 보통주 1주당 0.23 달러를 달성했으며, 이는 2023년 2분기 4,990만 달러와 비교됩니다. 경비 비율은 전년 대비 96.2%에서 99.8%로 상승하였으며, 이는 미국의 심각한 대기 흐름 폭풍으로 인한 손실의 영향을 받았습니다. 총 투자 수익은 1,260만 달러로, 2023년 2분기 4,220만 달러에서 하락했습니다. 희석된 주당 장부 가치는 1.5% 증가하여 17.65달러에 도달했습니다. 회사는 2024년 11월 19일 뉴욕시에서 Investor Day 2024를 개최할 예정입니다.
Greenlight Capital Re, (NASDAQ: GLRE) a annoncé ses résultats financiers du 2e trimestre 2024, montrant une augmentation de 9,1 % des primes brutes souscrites atteignant 169,0 millions de dollars et une augmentation de 13,2 % des primes nettes acquises atteignant 158,4 millions de dollars. L’entreprise a réalisé un bénéfice net de 8,0 millions de dollars, soit 0,23 dollar par action ordinaire diluée, contre 49,9 millions de dollars au T2 2023. Le taux combiné a augmenté à 99,8 % contre 96,2 % l’année précédente, impacté par des pertes dues à de fortes tempêtes convectives aux États-Unis. Le revenu total des investissements a été de 12,6 millions de dollars, en baisse par rapport à 42,2 millions de dollars au T2 2023. La valeur comptable par action entièrement diluée a augmenté de 1,5 % pour atteindre 17,65 dollars. L’entreprise organisera son Investor Day 2024 le 19 novembre 2024 à New York.
Greenlight Capital Re, (NASDAQ: GLRE) berichtete über die Finanzergebnisse für das 2. Quartal 2024 und zeigte ein Wachstum der brutto geschriebenen Prämien um 9,1% auf 169,0 Millionen US-Dollar sowie einen Anstieg der netto verdienten Prämien um 13,2% auf 158,4 Millionen US-Dollar. Das Unternehmen erzielte einen Nettoertrag von 8,0 Millionen US-Dollar, oder 0,23 US-Dollar pro verwässerter Stammaktie, im Vergleich zu 49,9 Millionen US-Dollar im 2. Quartal 2023. Die Kombinationsquote stieg im Jahresvergleich auf 99,8% von 96,2%, beeinflusst durch Verluste durch schwere konvektive Stürme in den USA. Das gesamte Anlageergebnis betrug 12,6 Millionen US-Dollar, ein Rückgang von 42,2 Millionen US-Dollar im 2. Quartal 2023. Der vollständig verwässerte Buchwert pro Aktie stieg um 1,5% auf 17,65 US-Dollar. Das Unternehmen wird am 19. November 2024 seinen Investor Day 2024 in New York City veranstalten.
- Gross premiums written increased 9.1% to $169.0 million
- Net premiums earned increased 13.2% to $158.4 million
- Net income of $8.0 million, or $0.23 per diluted ordinary share
- Fully diluted book value per share increased 1.5% to $17.65
- Combined ratio increased to 99.8% from 96.2% year-over-year
- Total investment income decreased to $12.6 million from $42.2 million in Q2 2023
- Underwriting income decreased to $0.3 million from $5.4 million in Q2 2023
- Current-period catastrophe losses added 8.4% to the combined ratio
Insights
Greenlight Re's Q2 2024 results show a mixed performance. The
Total investment income declined sharply from
The Q2 results reveal Greenlight Re's exposure to catastrophic events, particularly U.S. severe convective storms, which added
The growth in financial, general liability and specialty lines suggests a strategic shift towards potentially more profitable or less volatile segments. However, the near-100% combined ratio indicates slim underwriting margins, leaving little room for error. The slight improvement in the loss ratio and reduction in the underwriting expense ratio show some positive trends in operational efficiency, but these were offset by the higher acquisition costs. The company's ability to navigate these challenges while maintaining growth will be important for its long-term success in the reinsurance market.
Greenlight Re's investment performance in Q2 2024 was subdued compared to the previous year. The Solasglas fund, managed by DME Advisors, returned a modest
The company's investment strategy appears to be balanced but conservative, with gains in short and macro positions offsetting small losses in long positions. This approach may provide stability but could limit upside potential in bullish markets. The focus on earning interest from restricted cash suggests a prioritization of liquidity and capital preservation. For investors, this conservative stance might be reassuring given the volatility in the reinsurance market, but it also means that significant returns may rely more heavily on underwriting performance rather than investment gains in the current environment.
Premium Growth of
GRAND CAYMAN, Cayman Islands, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Greenlight Capital Re, Ltd. (NASDAQ: GLRE) (“Greenlight Re” or the “Company”) today reported its financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Highlights (all comparisons are to second quarter 2023 unless noted otherwise):
- Gross premiums written increased
9.1% to$169.0 million ; - Net premiums earned increased
13.2% to$158.4 million ; - Underwriting income of
$0.3 million , compared to$5.4 million ; - Total investment income of
$12.6 million , compared to$42.2 million ; - Net income of
$8.0 million , or$0.23 per diluted ordinary share, compared to$49.9 million , or$1.32 per diluted ordinary share; - Combined ratio of
99.8% , compared to96.2% ; and - Fully diluted book value per share increased
$0.26 , or1.5% , to$17.65 , from$17.39 at March 31, 2024.
Greg Richardson, Chief Executive Officer of Greenlight Re, stated, “This quarter Greenlight Re continued its measured growth by taking advantage of attractive opportunities. While our underwriting results were negatively impacted by U.S. severe convective storm losses from a single run-off contract, we are pleased with the performance of our overall book of business.”
David Einhorn, Chairman of the Board of Directors, said, “Solasglas had a positive result in a relatively uneventful quarter, with small gains in short and macro positions offset by a small loss in our long positions.”
Second Quarter 2024 Results
Gross premiums written in the second quarter of 2024 were
The Company recognized net underwriting income of
The Company’s total investment income during the second quarter of 2024 was
The net income of
The following table summarizes the components of the Company’s combined ratio.
| Second Quarter | ||||||||
| Underwriting ratios | 2024 | 2023 | ||||||
| Loss ratio - current year | 64.8 | % | 63.4 | % | ||||
| Loss ratio - prior year | (0.4 | )% | 1.3 | % | ||||
| Loss ratio | 64.4 | % | 64.7 | % | ||||
| Acquisition cost ratio | 31.9 | % | 27.4 | % | ||||
| Composite ratio | 96.3 | % | 92.1 | % | ||||
| Underwriting expense ratio | 3.5 | % | 4.1 | % | ||||
| Combined ratio | 99.8 | % | 96.2 | % | ||||
Greenlight Capital Re, Ltd. Second Quarter 2024 Earnings Call
Greenlight Re will host a live conference call to discuss its financial results on Wednesday, August 7, 2024, at 9:00 a.m. Eastern Time. Dial-in details:
| U.S. toll free | 1-877-407-9753 |
| International | 1-201-493-6739 |
The conference call can also be accessed via webcast at:
https://event.webcasts.com/starthere.jsp?ei=1681118&tp_key=126229da94
A telephone replay will be available following the call through August 12, 2024. The replay of the call may be accessed by dialing 1-877-660-6853 (U.S. toll free) or 1-201-612-7415 (international), access code 13748042. An audio file of the call will also be available on the Company’s website, www.greenlightre.com.
2024 Investor Day
The Company is set to host its 2024 Investor Day in New York City on Tuesday, November 19, 2024, at 12:00 noon Eastern Time. The event will include a luncheon, detailed presentation from members of the executive management team, and opportunities for live interaction during the Q&A segment.
Attendees must register in advance. To register, please contact Karin Daly, Greenlight Capital Re’s investor relations representative at IR@greenlightre.ky.
The 2024 Investor Day will be held exclusively in-person. An archived webcast will become available on the Company’s website following the event.
Non-GAAP Financial Measures
In presenting the Company’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). Such measures, including fully diluted book value per share and net underwriting income (loss), are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. Management believes these measures allow for a more thorough understanding of the underlying business. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies and should be used to monitor our results and should be considered in addition to, and not viewed as a substitute for those measures determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included in the attached financial information in accordance with Regulation G.
Forward-Looking Statements
This news release contains forward-looking statements concerning Greenlight Capital Re, Ltd. and/or its subsidiaries (the “Company”) within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on the Company’s behalf. These risks and uncertainties include a downgrade or withdrawal of our A.M. Best ratings; any suspension or revocation of any of our licenses; losses from catastrophes; the loss of significant brokers; the performance of Solasglas Investments, LP; the carry values of our investments made under our Greenlight Re Innovations pillar may differ significantly from those that would be used if we carried these investments at fair value; and other factors described in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 5, 2024, as those factors may be updated from time to time in our periodic and other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, which speak only as to the date of this release, whether as a result of new information, future events, or otherwise, except as provided by law.
About Greenlight Capital Re, Ltd.
Greenlight Re (www.greenlightre.com) provides multiline property and casualty insurance and reinsurance through its licensed and regulated reinsurance entities in the Cayman Islands and Ireland, and its Lloyd’s platform, Greenlight Innovation Syndicate 3456. The Company complements its underwriting activities with a non-traditional investment approach designed to achieve higher rates of return over the long term than reinsurance companies that exclusively employ more traditional investment strategies. The Company’s innovations unit, Greenlight Re Innovations, supports technology innovators in the (re)insurance space by providing investment capital, risk capacity, and access to a broad insurance network.
Investor Relations Contact
Karin Daly
Vice President, The Equity Group Inc.
(212) 836-9623
IR@greenlightre.ky
| GREENLIGHT CAPITAL RE, LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (expressed in thousands of U.S. dollars, except per share and share amounts) | |||||||
| June 30, 2024 | December 31, 2023 | ||||||
| (UNAUDITED) | |||||||
| Assets | |||||||
| Investments | |||||||
| Investment in related party investment fund, at fair value | $ | 351,468 | $ | 258,890 | |||
| Other investments | 73,159 | 73,293 | |||||
| Total investments | 424,627 | 332,183 | |||||
| Cash and cash equivalents | 52,240 | 51,082 | |||||
| Restricted cash and cash equivalents | 561,930 | 604,648 | |||||
| Reinsurance balances receivable (net of allowance for expected credit losses) | 686,743 | 619,401 | |||||
| Loss and loss adjustment expenses recoverable (net of allowance for expected credit losses) | 58,647 | 25,687 | |||||
| Deferred acquisition costs | 83,305 | 79,956 | |||||
| Unearned premiums ceded | 28,184 | 17,261 | |||||
| Other assets | 4,272 | 5,089 | |||||
| Total assets | $ | 1,899,948 | $ | 1,735,307 | |||
| Liabilities and equity | |||||||
| Liabilities | |||||||
| Loss and loss adjustment expense reserves | $ | 752,757 | $ | 661,554 | |||
| Unearned premium reserves | 349,015 | 306,310 | |||||
| Reinsurance balances payable | 76,253 | 68,983 | |||||
| Funds withheld | 18,266 | 17,289 | |||||
| Other liabilities | 8,042 | 11,795 | |||||
| Debt | 61,595 | 73,281 | |||||
| Total liabilities | 1,265,928 | 1,139,212 | |||||
| Shareholders' equity | |||||||
| Ordinary share capital (par value | $ | 3,532 | $ | 3,534 | |||
| Additional paid-in capital | 487,462 | 484,532 | |||||
| Retained earnings | 143,026 | 108,029 | |||||
| Total shareholders' equity | 634,020 | 596,095 | |||||
| Total liabilities and equity | $ | 1,899,948 | $ | 1,735,307 | |||
| GREENLIGHT CAPITAL RE, LTD. CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (UNAUDITED) (expressed in thousands of U.S. dollars, except percentages and per share amounts) | |||||||||||||||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Underwriting revenue | |||||||||||||||
| Gross premiums written | $ | 168,975 | $ | 154,943 | $ | 386,233 | $ | 341,398 | |||||||
| Gross premiums ceded | (14,832 | ) | (9,739 | ) | (38,013 | ) | (20,951 | ) | |||||||
| Net premiums written | 154,143 | 145,204 | 348,220 | 320,447 | |||||||||||
| Change in net unearned premium reserves | 4,255 | (5,261 | ) | (28,286 | ) | (37,855 | ) | ||||||||
| Net premiums earned | $ | 158,398 | $ | 139,943 | $ | 319,934 | $ | 282,592 | |||||||
| Underwriting related expenses | |||||||||||||||
| Net loss and loss adjustment expenses incurred: | |||||||||||||||
| Current year | $ | 102,722 | $ | 88,740 | $ | 206,647 | $ | 173,428 | |||||||
| Prior year | (689 | ) | 1,764 | 4,712 | 13,801 | ||||||||||
| Net loss and loss adjustment expenses incurred | 102,033 | 90,504 | 211,359 | 187,229 | |||||||||||
| Acquisition costs | 50,454 | 38,293 | 92,064 | 79,769 | |||||||||||
| Underwriting expenses | 5,811 | 5,468 | 12,150 | 9,407 | |||||||||||
| Deposit interest expense (income), net | (233 | ) | 235 | 643 | 367 | ||||||||||
| Net underwriting income(1) | $ | 333 | $ | 5,443 | $ | 3,718 | $ | 5,820 | |||||||
| Income (loss) from investment in Solasglas | $ | 4,330 | $ | 32,782 | $ | 22,578 | $ | 29,644 | |||||||
| Net investment income | 8,224 | 9,369 | 16,367 | 17,747 | |||||||||||
| Total investment income | $ | 12,554 | $ | 42,151 | $ | 38,945 | $ | 47,391 | |||||||
| Corporate expenses | $ | 4,706 | $ | 4,557 | $ | 9,081 | $ | 10,554 | |||||||
| Foreign exchange losses (gains) | 932 | (4,729 | ) | 2,581 | (9,660 | ) | |||||||||
| Other income, net | (2,724 | ) | (2,866 | ) | (7,759 | ) | (5,032 | ) | |||||||
| Interest expense | 1,560 | 744 | 2,809 | 1,520 | |||||||||||
| Income tax expense | 435 | 28 | 954 | 82 | |||||||||||
| Net income | $ | 7,978 | $ | 49,860 | $ | 34,997 | $ | 55,747 | |||||||
| Earnings per share | |||||||||||||||
| Basic | $ | 0.23 | $ | 1.46 | $ | 1.02 | $ | 1.64 | |||||||
| Diluted | $ | 0.23 | $ | 1.32 | $ | 1.01 | $ | 1.49 | |||||||
| Underwriting ratios: | |||||||||||||||
| Loss ratio - current year | 64.8 | % | 63.4 | % | 64.6 | % | 61.4 | % | |||||||
| Loss ratio - prior year | (0.4 | )% | 1.3 | % | 1.5 | % | 4.9 | % | |||||||
| Loss ratio | 64.4 | % | 64.7 | % | 66.1 | % | 66.3 | % | |||||||
| Acquisition cost ratio | 31.9 | % | 27.4 | % | 28.8 | % | 28.2 | % | |||||||
| Composite ratio | 96.3 | % | 92.1 | % | 94.9 | % | 94.5 | % | |||||||
| Underwriting expense ratio | 3.5 | % | 4.1 | % | 4.0 | % | 3.5 | % | |||||||
| Combined ratio | 99.8 | % | 96.2 | % | 98.9 | % | 98.0 | % | |||||||
| 1 Net underwriting income is a non-GAAP financial measure. See “Key Financial Measures and Non-GAAP Measures” below for discussion and reconciliation of non-GAAP financial measures. | |||||||||||||||
The following tables present the Company’s net premiums earned and underwriting ratios by line of business:
| Three months ended June 30 | Three months ended June 30 | ||||||||||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||||||||||
| Property | Casualty | Other | Total | Property | Casualty | Other | Total | ||||||||||||||||||||||||
| ($ in thousands except percentage) | |||||||||||||||||||||||||||||||
| Net premiums earned | $ | 18,119 | $ | 86,155 | $ | 54,124 | $ | 158,398 | $ | 20,749 | $ | 81,446 | $ | 37,748 | $ | 139,943 | |||||||||||||||
| Underwriting ratios: | |||||||||||||||||||||||||||||||
| Loss ratio | 116.8 | % | 68.0 | % | 41.2 | % | 64.4 | % | 103.1 | % | 60.9 | % | 51.6 | % | 64.7 | % | |||||||||||||||
| Acquisition cost ratio | 10.7 | 36.9 | 31.0 | 31.9 | 19.1 | 30.5 | 25.1 | 27.4 | |||||||||||||||||||||||
| Composite ratio | 127.5 | % | 104.9 | % | 72.2 | % | 96.3 | % | 122.2 | % | 91.4 | % | 76.7 | % | 92.1 | % | |||||||||||||||
| Underwriting expense ratio | 3.5 | 4.1 | |||||||||||||||||||||||||||||
| Combined ratio | 99.8 | % | 96.2 | % | |||||||||||||||||||||||||||
| Six months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||||||||||
| Property | Casualty | Other | Total | Property | Casualty | Other | Total | ||||||||||||||||||||||||
| ($ in thousands except percentage) | |||||||||||||||||||||||||||||||
| Net premiums earned | 41,476 | 180,793 | 97,665 | 319,934 | 39,492 | 165,561 | 77,539 | 282,592 | |||||||||||||||||||||||
| Underwriting ratios: | |||||||||||||||||||||||||||||||
| Loss ratio | 79.9 | % | 65.6 | % | 61.1 | % | 66.1 | % | 98.6 | % | 66.8 | % | 48.6 | % | 66.3 | % | |||||||||||||||
| Acquisition cost ratio | 15.8 | 32.0 | 28.3 | 28.8 | 19.1 | 30.5 | 28.1 | 28.2 | |||||||||||||||||||||||
| Composite ratio | 95.7 | % | 97.6 | % | 89.4 | % | 94.9 | % | 117.7 | % | 97.3 | % | 76.7 | % | 94.5 | % | |||||||||||||||
| Underwriting expense ratio | 4.0 | 3.5 | |||||||||||||||||||||||||||||
| Combined ratio | 98.9 | % | 98.0 | % | |||||||||||||||||||||||||||
GREENLIGHT CAPITAL RE, LTD.
KEY FINANCIAL MEASURES AND NON-GAAP MEASURES
Management uses certain key financial measures, some of which are not prescribed under U.S. GAAP rules and standards (“non-GAAP financial measures”), to evaluate our financial performance, financial position, and the change in shareholder value. Generally, a non-GAAP financial measure, as defined in SEC Regulation G, is a numerical measure of a company’s historical or future financial performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented under U.S. GAAP. We believe that these measures, which may be calculated or defined differently by other companies, provide consistent and comparable metrics of our business performance to help shareholders understand performance trends and facilitate a more thorough understanding of the Company’s business. Non-GAAP financial measures should not be viewed as substitutes for those determined under U.S. GAAP.
The key non-GAAP financial measures used in this news release are:
- Fully diluted book value per share; and
- Net underwriting income (loss).
These non-GAAP financial measures are described below.
Fully Diluted Book Value Per Share
Our primary financial goal is to increase fully diluted book value per share over the long term. We use fully diluted book value as a financial measure in our incentive compensation plan.
We believe that long-term growth in fully diluted book value per share is the most relevant measure of our financial performance because it provides management and investors a yardstick to monitor the shareholder value generated. Fully diluted book value per share may also help our investors, shareholders, and other interested parties form a basis of comparison with other companies within the property and casualty reinsurance industry. Fully diluted book value per share should not be viewed as a substitute for the most comparable U.S. GAAP measure, which in our view is the basic book value per share.
We calculate basic book value per share as (a) ending shareholders' equity, divided by (b) the total ordinary shares issued and outstanding, as reported in the consolidated financial statements. Fully diluted book value per share represents basic book value per share combined with any dilutive impact of in-the-money stock options (assuming net exercise) and all outstanding restricted stock units “RSUs”. We believe these adjustments better reflect the ultimate dilution to our shareholders.
The following table presents a reconciliation of the fully diluted book value per share to basic book value per share (the most directly comparable U.S. GAAP financial measure):
| June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||||||
| Numerator for basic and fully diluted book value per share: | |||||||||||||||||||
| Total equity as reported under U.S. GAAP | $ | 634,020 | $ | 624,458 | $ | 596,095 | $ | 575,865 | $ | 561,121 | |||||||||
| Denominator for basic and fully diluted book value per share: | |||||||||||||||||||
| Ordinary shares issued and outstanding as reported and denominator for basic book value per share | 35,321,144 | 35,321,144 | 35,336,732 | 35,337,407 | 35,272,013 | ||||||||||||||
| Add: In-the-money stock options(1)and all outstanding RSUs | 594,612 | 585,334 | 264,870 | 312,409 | 312,409 | ||||||||||||||
| Denominator for fully diluted book value per share | 35,915,756 | 35,906,478 | 35,601,602 | 35,649,816 | 35,584,422 | ||||||||||||||
| Basic book value per share | $ | 17.95 | $ | 17.68 | $ | 16.87 | $ | 16.30 | $ | 15.91 | |||||||||
| Fully diluted book value per share | $ | 17.65 | $ | 17.39 | $ | 16.74 | $ | 16.15 | $ | 15.77 | |||||||||
(1) Assuming net exercise by the grantee.
Net Underwriting Income (Loss)
One way that we evaluate the Company’s underwriting performance is by measuring net underwriting income (loss). We do not use premiums written as a measure of performance. Net underwriting income (loss) is a performance measure used by management to evaluate the fundamentals underlying the Company’s underwriting operations. We believe that the use of net underwriting income (loss) enables investors and other users of the Company’s financial information to analyze our performance in a manner similar to how management analyzes performance. Management also believes this measure follows industry practice and allows the users of financial information to compare the Company’s performance with that of our industry peer group.
Net underwriting income (loss) is considered a non-GAAP financial measure because it excludes items used to calculate net income before taxes under U.S. GAAP. We calculate net underwriting income (loss) as net premiums earned less net loss and loss adjustment expenses, acquisition costs, underwriting expenses (including related G&A expenses), and deposit interest expense, plus deposit interest income. The measure excludes, on a recurring basis: (1) investment income (loss); (2) other income (expense) not related to underwriting, including foreign exchange gains or losses, and Lloyd’s interest income and expense; (3) corporate G&A expenses; and (4) interest expense. We exclude total investment income or loss, foreign exchange gains or losses, and Lloyd’s interest income or expense as we believe these items are influenced by market conditions and other factors unrelated to underwriting decisions. Additionally, we exclude corporate G&A and interest expenses because these costs are generally fixed and not incremental to or directly related to our underwriting operations. We believe all of these amounts are largely independent of our underwriting process, and including them could hinder the analysis of trends in our underwriting operations. Net underwriting income (loss) should not be viewed as a substitute for U.S. GAAP net income before income taxes.
The reconciliations of net underwriting income to income before income taxes (the most directly comparable U.S. GAAP financial measure) on a consolidated basis are shown below:
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| ($ in thousands) | |||||||||||||||
| Income before income tax | $ | 8,413 | $ | 49,888 | $ | 35,951 | $ | 55,829 | |||||||
| Add (subtract): | |||||||||||||||
| Total investment income | (12,554 | ) | (42,151 | ) | (38,945 | ) | (47,391 | ) | |||||||
| Foreign exchange losses (gains) | 932 | (4,729 | ) | 2,581 | (9,660 | ) | |||||||||
| Other non-underwriting income | (2,724 | ) | (2,866 | ) | (7,759 | ) | (5,032 | ) | |||||||
| Corporate expenses | 4,706 | 4,557 | 9,081 | 10,554 | |||||||||||
| Interest expense | 1,560 | 744 | 2,809 | 1,520 | |||||||||||
| Net underwriting income | $ | 333 | $ | 5,443 | $ | 3,718 | $ | 5,820 | |||||||
FAQ
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