Greenlight Re. Rethinking Reinsurance

Transcription

1 Greenlight Re Rethinking Reinsurance

2 Forward Looking Statements This presentation contains forward-looking statements 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 behalf of the Company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market fluctuations, trends in insured and paid losses, catastrophes, regulatory and legal uncertainties and other factors described in our most recent annual report on Form 10-K and quarterly report on Form 10-Q filed subsequent thereto and other documents on file with the Securities Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Page 2

3 Who We Are Specialist Property and Casualty Reinsurer with operations in the Cayman Islands and Dublin, Ireland Cayman operating company is rated A by A.M. Best and our Irish operating subsidiary is rated A- We use a client-centric underwriting approach to develop long term reinsurance partnerships We seek to partner with specialists in their fields and we aim to align our interests with our partners Our underwriting portfolio is heavily weighted toward frequency business > 96% of our total gross premium as of 12/31/2012 We selectively write severity transactions when we believe we are earning above-average risk adjusted returns Page 3

4 Our Corporate Structure Greenlight Capital Re, Ltd. Holding Company NASDAQ: GLRE Greenlight Reinsurance, Ltd. Cayman Based Reinsurance Company Greenlight Reinsurance Ireland, Ltd. Ireland Based Reinsurance Company Page 4

5 Our History We Are Here For The Long-Term Company founded in 2004 with approximately $210M in capital Identified Senior Management Team Achieved A- (Excellent) rating from AM Best Underwriting initiated. First deal bound. Building the team Raised additional $250M in Initial Public Offering (Listed on NASDAQ ticker: GLRE) Building the platform Started the year with nearly $600M in capital. Stress Tested the model First strategic relationship formed Establishing presence in the market Looking toward future growth Building the portfolio Managing the soft market Continue to expand the team Upgraded to A (Excellent) rating from AM Best Remaining disciplined while seeking opportunity in a changing market Written Premium $74M $127M $162M $259M $415M $397M Looking to expand and strengthen partner relationships $428M Surplus and Written premium are for Greenlight Capital Re, Ltd. (Holding Company) Page 5

6 Our Value Proposition Our value proposition is our client centricity. We want to foster long-term relationships with our clients and brokers by offering creative solutions, an elevated level of customer service and a partnership approach. Page 6

7 Current Portfolio Premium by Business Line Year End % 3.97% 3.53% 0.52% 7.91% 5.25% 19.08% 41.63% Motor Liability Motor Physical Damage Homeowners Medical Stop Loss General Liability Professional Liability Workers' Compensation Commercial Property Marine 14.08% Page 7

8 Current Business Appetite U.S. Risks Target Business Property, with controlled Cat exposure Auto, focused on non-standard Workers Comp Retro Property Cat Medical Stop Loss Preferred Structure Property, Auto, and Work Comp Pro-rata deal structures attaching within the first $1 million of exposure For WC business, will consider XOL working layers for larger programs Property Retro XOL on a per event, 2 nd /3 rd event or aggregate basis; will consider pro-rata Target mid/higher attachments, though aggregates target 2 nd and subsequent event attachment Single and multi-year deals Typical line size from $10M - $25M Medical Stop Loss $20m - $50m ceded premium Preferred Deal Size For pro-rata deals, looking for ceded premium of $15-$20 million Page 8

9 Current Business Appetite E.U. Risks Target Business Property, with controlled Cat exposure General Liability Personal Accident Niche Motor Geographic Focus Interested in risks worldwide, but currently focused on: United Kingdom Lloyd s of London France Germany Scandinavia Preferred Structure and Deal Size Aggregate Pillar Whole Account Covers Mid-Level Product: 3-5+ pillars by business class or event type; e.g. property treaty, D&F, treaty marine, US/Non-US Event Cat or non-cat driven or combination Retention Coverage: Multiple sections sitting under market program Multi-class/whole account potential to include longer tail lines Pro-Rata Structures Pro-rata deal structures attaching within the first $1 million of exposure Minimum ceded premium of $15-$20 million Property Retro XOL on a per event, 2 nd /3 rd event or aggregate basis; will consider pro-rata Target mid/higher attachments, though aggregates target 2 nd and subsequent event attachment Single and multi-year deals Typical line size from $10M - $25M Page 9

10 Investment Approach Our business model combines underwriting economics and cash flows with a differentiated investment approach Achieve higher rates of return over the long term than traditional, fixed-income strategies Maximize total risk-adjusted return with a focus on capital preservation Value-oriented philosophy drives the investment portfolio Take long positions in perceived undervalued securities and short positions in securities we believe are overvalued and fundamentally challenged Investment portfolio managed by DME Advisors, an affiliate of Greenlight Capital Page 10

11 Key Contacts Bart Hedges, Chief Executive Officer Direct Dial: Brendan Barry, Chief Underwriting Officer Direct Dial: Caryl Traynor, General Manager, GRIL Direct Dial: +353 (0) John Drake, Business Development Direct Dial: Page 11