Greenlight Reinsurance, Ltd.

Thank you for joining the Greenlight Capital RE Limited Third Quarter 2023 Earnings Conference. At this time, participants are in a listen-only mode. A question and answer session will follow the formal presentation. You may press star 1 at any time to be placed in the question queue. It is now my pleasure to turn the call over to David Sigman, Greenlight RE's General Counsel. You may begin.

Thank you, Alicia, and good morning. I would like to remind you that this conference call is being recorded and will be available for replay following conclusion of the event. An audio replay will also be available under the investor section of the company's website at www.greenlightree.com. Joining us on the call today will be chief executive officer, Simon Burton, chairman of the board, David Einhorn, and chief financial officer, Farmers 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 third quarter ended September 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 third quarter of 2023, we reported net income of $13.5 million and growth in book value per share of 2.3%. This brings our year-to-date performance to net income of $69.2 million and and growth in book value per share of 13.7%. Third quarter net income was primarily driven by strong underwriting performance with a combined ratio of 91.2% and an underwriting profit of $14.4 million. This result includes a strengthening of reserves that relate to our legacy business of approximately four combined ratio points, which indicates that the ongoing book performed around an 87% combined ratio. This result can be further broken down into an open market book performing around the mid-80s combined ratio and an innovations book performing around mid-90s. Recall that we've identified our innovations business as strategically important to the company in the long term, although it has come with a lower margin underwriting trade-off in the short term as we execute on that strategy. The work we have done over the last few years has repositioned the overall underwriting business to be both more balanced and to contain higher margin potential, and the results of that work are now evident. We grew net written premium in the third quarter to $168.3 million, an increase of 15% compared to the third quarter of 2022, as we take advantage of the attractive market conditions. As we are now in early November, our underwriting focus is turning to the important January 2024 renewals. We believe the underwriting outlook for 2024 is excellent. We have not seen a material increase in reinsurance capacity, and demand for our core products remains strong. In recent weeks, we met with many of our clients and brokers in Monte Carlo and Baden-Baden, and we are encouraged by their feedback in support of the upcoming January renewals. Turning to innovations, we made two new investments in the third quarter to bring our total portfolio to over 35 positions. While the market is challenging, with many insurtechs struggling to raise capital, our positioning as a market leader in the early stage insurtech space means we see a wide variety of opportunities that allows us a selective approach to growing the portfolio. During the first quarter of 2024 and subject to regulatory approval, We intend to establish a separately licensed segregated portfolio company, which will provide access to our InsureTech partners, enabling them to retain more of their own risk. This enhancement to our existing InsureTech ecosystem will bolster our position as a leader in this important and growing area for the industry. Now I'd like to turn the call over to David.