Greenlight Reinsurance, Ltd.

Thank you for joining the Greenlight Capital Rees Second Quarter Earnings Conference. At this time, participants are in a listen-only mode. A question and answer session will follow the formal remarks. You may press star 1 at any time during the call to be placed in the question queue. I would like to remind you that this conference call is being recorded and will be available for replay following the conclusion of the event. An audio replay will also be available under the investor section of the company's website at www.greenlightree.com. It is now my pleasure to turn the call over to David Sigman, General Counsel at Greenlight Re. You may begin.

Thank you, Diego. Joining us on the call today will be Chief Executive Officer Simon Burton, Chairman of the Board David Einhorn, and Chief Financial Officer Barmarz Romer. On behalf of the company, I'd like to remind you that forward-looking statements may be made during this call and are intended to be covered by the safe harbor provisions of the federal securities laws. These forward-looking statements reflect the company's current expectations, estimates, and predictions about future results and are subject to risks and uncertainties. As a result, actual results may differ materially from those expressed or implied. For more information on the risks and other factors that may impact future performance, investors should review the periodic reports that are filed by the company with the SEC from time to time. Additionally, management may refer to certain non-GAAP financial measures. The reconciliations to these measures can be found in the company's filings with the SEC, including the company's Form 10-Q for the second quarter ended June 30, 2023. The company undertakes no obligation to publicly update or revise any forward-looking statements. With that, it is now my pleasure to turn the call over to Simon.

Thanks, David. Good morning, everyone. Thank you for joining us. For the second quarter of 2023, we reported strong growth in book value per share of 9.9%, a net income of $49.9 million. This result was led by our performance in the SILPE fund, along with contributions from our underwriting operations and other investment income. Starting with the underwriting result, the combined ratio of 96.2% was impacted by 7.3 points of catastrophe losses. primarily severe storm losses in the US. Individually, these storms aren't large enough to attach to catastrophe layers. Instead, as we mentioned on our Q1 call, we are seeing these claims through our exposure to a single homeowner's property program. The severe storm activity in the US has been extraordinarily high since late December of 2022, Although we expect to see a rapid performance improvement in this class as rate increases accelerate and severe storm frequency abates in the second half of the year. Severe storms aside, our performance is exactly as I would expect. We have taken full advantage of the hard market conditions, and we are starting to see the improvement in rates reflected in our combined ratio, excluding catastrophes. We expect to see continued improvements as business written in 2023 earns through over the next few quarters. Turning to our top line production, we grew net written premium in the second quarter to $145.2 million, an increase of 13.8% compared to the second quarter of 2022. Important to note, however, is that the growth is not spread evenly across all classes. We have identified exceptional margin opportunities in specific areas such as commercial property, which includes property catastrophe, and in marine and other specialty lines. In these classes, we grew net written premium by an average of 67% compared to the second quarter of 2022. Conversely, our net written premium reduced materially in two areas. First, in workers' compensation, we are more cautious about future inflationary risk than the market clearing price seems to imply. And second, the reduction in the financial class is driven more by our timing in mortgage business, which can be lumpy from a top-line perspective, as we periodically replace maturing tranches of exposure. We are still generally positive about the mortgage class and expect to add new exposure over the coming year. As we consider our underwriting outlook, it is excellent overall. We have not seen a significant increase in the supply of rated or ILS capital, which appears to be constrained by historic performance concerns. And we believe that there is latent demand for catastrophe reinsurance due to affordability issues. which should unlock as property insurance rates increase. This demand will be bolstered by upwards revisions in vendor cap model assumptions. Turning to a brief update on our innovations business, we made three new investments during the quarter, each characterized by a vision for differentiated insurance products that we believe could ultimately strengthen our underwriting business. Our investment carried values did not change materially during the quarter as there were few measurement events. although our partners continue to execute their business plans. Our innovations platform is an attractive and differentiating driver of our business model, and it is a key element of our long-term strategy. Finally, I'd like to thank our shareholders for the vote of confidence reflected in all of our annual general meeting proposals passing last week. This included re-election of all directors, approval of a new stock incentive plan that will continue to promote the interests of the company and our shareholders, by directly linking compensation with company performance for years to come, and elimination of the company's previous dual-class share structure, which simplifies and improves our capital structure. We also welcome Daniel Reutemann, who brings decades of financial services and senior leadership experience as a valuable addition to our board. Dan is, of course, already intimately familiar with our company, thanks to his years of service as an alternate director, as well as a director of our Irish subsidiary. I congratulate Dan and look forward to working with him in this new capacity. Now I'd like to turn the call over to David.