綠光資本再保險 (GLRE) 2026 年第三季法說會：綜合成本率達 90.5%

重點摘要

• Greenlight Capital Re (NASDAQ: GLRE) 公布 2026 年第三季淨利為 320 萬美元，或每股稀釋盈餘 0.10 美元。年初至今淨利達 940 萬美元，或每股稀釋盈餘 0.28 美元。
• 承保利潤為 1,460 萬美元，綜合成本率為 90.5%。該結果反映出良好的底層獲利能力、無新增巨災或重大損失，以及與特定中東事件相關的準備金減少 600 萬美元。
• 公開市場 (Open Markets) 仍是較強勁的承保貢獻來源，綜合成本率為 87.9%，承保利潤為 1,520 萬美元。由於公司因應市場環境走軟，淨簽單保費下降 19% 至 1.142 億美元。
• 創新 (Innovations) 業務總簽單保費年增 46% 至 4,300 萬美元，而淨已賺保費成長 34% 至 2,810 萬美元。其綜合成本率上升至 98.2%，其中包括 7.6 個百分點的前年度不利準備金發展。
• Solasglas 投資組合在本季回報率為負 3.3%，部分被 1,050 萬美元的其他投資收益所抵銷。Solasglas 隨後在 10 月回報率為 2.3%，使其 2026 年年初至今的回報率拉平。
• 自 2026 年初至 10 月，GLRE 以 3,050 萬美元買回 5.4% 的流通股。該公司在授權買回計畫下仍剩餘 2,480 萬美元額度。

關鍵財務數據

業務與營運表現

公開市場 (Open Markets)

公開市場 (Open Markets) 產生 1,950 萬美元的稅前利潤，其中包括 1,520 萬美元的承保利潤和 430 萬美元的投資收益。該部門的綜合成本率為 87.9%，前一年同期則為 84.5%。

淨簽單保費下降 19% 至 1.142 億美元，而淨已賺保費下降 13%。管理層將此下降歸因於特種險與財產比例再保險合約的保費預估值下調，以及未續約意外險業務的曝險減少。隨著 GLRE 在價格軟化的環境下維持週期紀律，公開市場總簽單保費下降了 10.4%。

受惠於前年度有利的準備金發展以及與中東衝突相關的準備金釋出，損失率改善了 1.9 個百分點。這被特種險業務較高的日常損耗損失率部分抵銷。承保費用率上升 4.1 個百分點，主因是可變動佣金結算調整，而營業費用率則上升 1.1 個百分點至 4.9%。

創新 (Innovations)

創新 (Innovations) 部門報告稅前利潤為 580 萬美元，其中包括 50 萬美元的承保利潤和 600 萬美元的投資收益，部分被 60 萬美元的其他費用抵銷。

在新業務以及現有綜合險與金融線再保險合約曝險增加的推動下，總簽單保費成長 46% 至 4,300 萬美元。隨著各業務線全面擴展，淨已賺保費成長 34% 至 2,810 萬美元。

綜合成本率從 96.8% 上升至 98.2%。損失率上升了 13.5 個百分點，主要歸因於前年度 7.6 個百分點的不利準備金發展。得益於可變動佣金調整，承保費用率改善了 10.1 個百分點；同時，由於保費成長速度超過費用成長，營業費用率改善了 2 個百分點。

GLRE 還宣布與 Hippo Holdings 建立戰略合作夥伴關係。Hippo 可能與創新部門共同投資初創階段的管理總代理 (MGA) 投資項目，而 Spinnaker Insurance Company 將擔任 GLRE 符合條件的共同投資專案在美國的首選持照代承保公司。勞合社 (Lloyd's) 也已批准 Syndicate 3456 轉型為完整辛迪加。

投資組合與資本管理

Solasglas 投資組合在第三季下降 3.3%。最大的負面因素是 SOFR 期貨的總體經濟部位，該部位反映出美國短期利率降幅或升幅將低於市場預期的觀點。GLRE 減少了該部位以控管風險，剩餘曝險將延續至明年夏季。

Green Brick Partners 與 Brighthouse Financial 頁是主要拖累項。正面貢獻者包括 AI 相關公司和住宅建造商的空頭部位，以及 DHT Holdings 的多頭部位。新增的多頭部位包括 Century Aluminum、ADI Global Distribution 和 Canal+。

季末投資組合淨曝險為 32%，低於第二季末的 33%，至 10 月底約為 28%。

GLRE 在第三季以 800 萬美元買回 50.5 萬股，並於 10 月以 330 萬美元再買回 22 萬股。管理層表示，將在既有授權下繼續視時機買回庫藏股。

管理層展望

管理層表示再保險市場環境持續走軟，但認為公開市場業務的費率與條款仍具吸引力。公司預期到 2027 年前將持續擁有具獲利能力的新機會，同時在 1 月 1 日的續約週期中維持承保紀律。

對於創新業務，管理層預計在價格穩定的情況下持續成長。公司亦預期該部門的營業費用率將隨著規模擴大而下降，這得益於包括與 Hippo 的合作以及 Syndicate 3456 轉型為勞合社完整辛迪加等舉措。

風險與關注事項

• 持續進行的中東衝突仍具不確定性。GLRE 就特定事件減少了 600 萬美元的個案準備金，但維持了已發生但未報案 (IBNR) 的準備金。
• 第三季前年度不利準備金發展為 1.6 個百分點，主要集中在數個創新業務合約中。
• 再保險市場環境走軟對保費規模造成壓力，特別是在公開市場業務中。
• Solasglas 的投資波動抵銷了本季大部分的承保利潤。SOFR 期貨部位年初至今代價高昂，儘管已降低曝險。
• 對主管機關可能阻撓或延後 Aquarian Capital 對 Brighthouse Financial 進行中收購案的疑慮，導致 Brighthouse 股價在本季下跌了 21%。

分析師問答重點

分析師唯一提出的問題涉及公司與 David Einhorn 的庫藏股買回安排。管理層解釋稱，若不採取此安排，隨著流通在外股數減少，公開市場買回將會增加 Einhorn 的持股比例。

為將其總持股比例維持在適用門檻以下，GLRE 與 Einhorn 達成協議，向其買回相當於公開市場買回股數 33% 的股份。管理層表示，該安排旨在保留公司繼續買回股票的能力，並已延長至 2027 年 3 月。

完整法說會逐字稿

完整財報電話會議逐字稿

管理層陳述

Operator

Greetings. Thank you for joining the Greenlight Capital Re Third Quarter 2026 Earnings Conference Call. [Operator Instructions] It is now my pleasure to turn the call over to David Sigmon, Greenlight Re's General Counsel. Thank you. You may begin.

David Sigmon

Thank you, and good morning. I'd 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 Investors section of the company's website at www.greenlightre.com. Joining us on the call today will be our CEO, Greg Richardson; Chairman of the Board, David Einhorn; and our Chief Financial Officer, Faramarz 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. 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 Greg.

Greg Richardson

Thank you, David. Good morning, everyone, and thank you for joining us. The third quarter of 2026 was mixed with a strong underwriting result offset by investment losses. Overall, we reported a net profit of $3.2 million, which brings our year-to-date net income to $9.4 million. Fully diluted book value per share increased 0.8% in the quarter to $20.78 per share. We reported a combined ratio of 90.5% in the quarter, translating to $14.6 million of underwriting income. This result was driven by a combination of the strong underlying profitability of the book assisted by a benign cat quarter. Our open market book delivered an 87.9% combined ratio, while our innovations book delivered a 98.2% combined ratio.

Shifting to our top line. Our open market gross written premium contracted 10.4% in the quarter compared to prior year as we respond to the softening market conditions and exercise prudent cycle management. In contrast, our innovations book grew by 46% in the quarter, reflecting stable pricing and strong organic growth of the companies we support in this segment. During 2026, we have also expanded our use of outward reinsurance and third-party capital with overall gross written premium for the quarter down just 1.4%, while net written premium was down 12.3%. During our August earnings call, we noted a $25 million provision linked to the Middle East conflict. This provision reduced by $6 million in the third quarter as more information became available on specific individual losses.

While the Middle East conflict is still ongoing, it is noteworthy that we have not reported any new large losses this quarter. Our investment in the Solasglas portfolio was down 3.3% in the quarter. David will provide more color on this in his remarks. The Solasglas loss was offset by $10.5 million of other investment income. Included in other investment income was $4.1 million of realized gains on the partial sale of two innovations investments. As our innovations book matures, we are seeing opportunities to monetize gains on some of our investments. We will recycle this capital into new investment opportunities.

I would like to highlight a strategic partnership we announced last week with Hippo Holdings. Under the partnership, Hippo will have the opportunity to co-invest alongside our innovations unit in early-stage MGA investments. Furthermore, Hippo's carrier, Spinnaker Insurance Company, will serve as Greenlight Re's preferred U.S. admitted fronting carrier for qualifying co-invested programs.

This partnership builds on existing relationships between Hippo and Greenlight Re, and we believe it will help accelerate disciplined profitable growth of our Innovation segment. We are now focused on 1/1 renewals. While the market is continuing to soften, we generally believe that rates and terms remain attractive for our open market reinsurance business, and we expect to see profitable new opportunities through next year. As noted above, innovations growth continues to be strong with stable rates. Now I'd like to turn the call over to David.

David Einhorn

Thanks, Greg, and good morning, everyone. The Solasglas fund returned negative 3.3% in the third quarter. The loan portfolio detracted 7.6%, the short portfolio contributed 7.3% and macro detracted 2.8%. During the quarter, the S&P 500 Index advanced 2.3%. While the market advanced, our long and short portfolios behaved as if they were in a bear market; many of our longs and shorts declined between 10% and 25%. The longs reversed gains and the shorts reverse losses from earlier in the year without a company-specific catalyst. The largest positive contributors were shorts of AI adjacent companies and homebuilder stocks and our long position in DHT Holdings, which benefited from much higher tanker charter rates. The largest detractors were our macro position in short-term U.S. interest rates and our long positions in Green Brick Partners and Brighthouse Financial.

The largest detractor in the quarter was our macro SOFR futures position, which reflects our view that short-term interest rates will decline or at least not increase as much as the market expects. The position has been costly year-to-date, and we've reduced it to manage risk. Our remaining exposure extends through next summer, and we continue to believe that the market is pricing in more Federal Reserve rate increases than are likely to occur. Green Brick Partners shares declined 17% and gave back most of their second quarter appreciation. Brighthouse Financial shares fell 21% amid increasing concern that regulators would block or delay its pending acquisition by Aquarian Capital. We added a few small long positions to the portfolio during the quarter.

Century Aluminum is the largest domestic producer of primary aluminum. The company is benefiting from tariffs in a tight global market and has an attractive growth opportunity to bring new smelter capacity online with government subsidies. We presented this idea last month at the Robin Hood Investors Conference in New York. The full presentation is available on our homepage at www.greenlightcapital.com. We also added positions in ADI Global Distribution, a leading distributor of low-voltage electrical products that recently spun out of Resideo, and Canal+, a London-listed global pay TV and content production company.

Our net exposure ended the third quarter at 32% compared to 33% at the end of the second quarter. Solasglas returned 2.3% in October, bringing the 2026 year-to-date return to flat. Net exposure in the investment portfolio was approximately 28% at the end of October.

Greenlight Re continues to perform well in a softening reinsurance environment. The team has been disciplined and has made prudent decisions over the last year. While the market continues to trade our stock at a significant discount to book value, we continue our share repurchase plan and have bought back over 5% of our outstanding shares in 2026. Joe Platt has been a Director of Greenlight Re since 2004. At our Board meeting last week, he announced he will retire from the Board at the end of the year. Joe has been a great friend and a guiding light for the company through good times and bad. His role as Lead Director and his wise advice have been invaluable to me and the company. I wish Joe the best, and we will miss him. Now I'd like to turn the call over to Faramarz to discuss the financial results in more detail.

Faramarz Romer

Thank you, David. Good morning, everyone. During the third quarter of 2026, Greenlight Re reported a net income of $3.2 million or $0.10 per diluted share, bringing our year-to-date earnings to $9.4 million or $0.28 per diluted share. The underwriting income of $14.6 million for the quarter resulted in a combined ratio of 90.5%, which benefited from no new cat or large losses during the quarter. While the Middle East conflict has continued, we received favorable information relating to specific events that were reserved in the first and second quarters. As Greg mentioned, we reduced our case reserves by $6 million on certain events, while we have maintained our IBNR reserves given the uncertainty in the region. Prior year adverse reserve development was 1.6 points during the third quarter compared to 0.5 points in the same period last year. Most of the reserve strengthening related to a handful of contracts within the Innovation segment.

Now let's look at this quarter's results at the segment level. The Open Markets segment reported a pre-tax income of $19.5 million, composed of underwriting income of $15.2 million and investment income of $4.3 million. For the third quarter, the Open Market segment net written premiums decreased by 19% to $114.2 million, while net earned premiums decreased by 13% -- the decrease in net earned premiums was driven by lowered premium estimates on specialty and property proportional contracts as well as decreased exposure on the non-renewed casualty book. The open market combined ratio for the third quarter was 87.9% compared to 84.5% for the third quarter last year.

Loss ratio for open market decreased by 1.9 points, driven by favorable prior year reserve development of 0.6 points compared to adverse development of 0.6 points in the third quarter of last year. The favorable movement in the cat and large loss ratio from the release of reserves relating to the Middle East conflict was partially offset by higher attritional loss ratio mainly related to the specialty business compared to the same period last year. The acquisition cost ratio for the Open Market segment increased by 4.1 points compared to same period last year, mainly due to variable commission true-ups recorded in the quarter. Expense ratio increased by 1.1 points to 4.9% as a function of lower earned premiums and higher expenses related to personnel costs.

Moving to the Innovation segment. The Innovation segment reported a pretax income of $5.8 million, composed of underwriting income of $0.5 million and investment income of $6 million, partially offset by other expenses of $0.6 million. During the quarter, Innovations gross written premiums increased by $13.6 million or 46% compared to third quarter last year to $43 million, mainly driven by new business and exposure growth from existing treaties in multiline and financial lines. Net earned premiums in the third quarter increased by $7.1 million or 34% to $28.1 million as all lines within the Innovation segment grew compared to the same period last year. The combined ratio for Innovations was 98.2% during the third quarter compared to 96.8% for the same period last year.

The loss ratio in the third quarter increased by 13.5 points, primarily due to 7.6 points of adverse prior year reserve development, while during the same period last year, the segment reported a favorable reserve development of 3.1 points. The third quarter acquisition cost ratio for innovations improved by 10.1 points compared to the same period last year due to variable commission adjustments. In our 10-K filed yesterday, we noted that the Innovations underwriting expenses now include our share of Syndicate 3456 expenses, which were previously presented under acquisition costs. We have reclassified the comparatives to conform prior period figures to the new presentation as we believe it better reflects the nature of these expenses.

As we previously indicated, we expect the expense ratio for Innovations to decrease as the segment gains scale. We are starting to see evidence of this as the expense ratio improved by 2 points as the premium growth exceeded expense growth. We continue to invest in this segment to deliver profitable growth. Our new partnership with Hippo and the Lloyd's approval to transition Syndicate 3456 to a full syndicate are some of the initiatives that we expect will advance us towards this objective.

During the third quarter, we repurchased 505,000 shares for $8 million. Subsequently, in October, we repurchased an additional 220,000 shares for $3.3 million. Since the beginning of the year, we have repurchased 5.4% of our outstanding shares for $30.5 million. We have $24.8 million remaining under the current Board-approved repurchase plan, which will allow us to continue repurchasing shares opportunistically. At the end of the third quarter, our fully diluted book value per share was $20.78, an increase of 1.7% for the first 9 months of the year. That concludes our prepared remarks. The operator will now open the line for your questions.

Operator

[Operator Instructions] The first question comes from Dan DeYoung.

分析師問答

Daniel DeYoung

Could you give more explanation of the tax considerations that make you want to keep David Einhorn's ownership of the company, I guess, where it is or lower it slightly during the share buybacks, please?

Greg Richardson

David, do you want to take that? Or do you want Faramarz to speak on that?

David Sigmon

Yes. Look, we've entered into a number of -- this is, I think, the third one now where we have a share repurchase agreement with David. I'll let David talk about the details of it. But essentially, as the company is buying back shares, it reduces the number of outstanding shares of the company and increases the portion that David is owning as he keeps holding on to the shares. So in order to ensure that David doesn't exceed the thresholds required, we have entered into an agreement where we repurchased 33% of the shares that we repurchased on the open market, we will repurchase them from David. So as we enter into our open market repurchase agreements, we then and enter into a similar agreement with David. And I think we just recently filed a new one with our 8-K yesterday, where you'll see that that's continuing up to March of 2027.

Daniel DeYoung

It's not something where David wants to reduce his ownership at all. It's just for tax considerations and the threshold of his ownership.

David Sigmon

Correct. To maintain this overall ownership percentage. Yes. That's right. The alternative would be not to be able to buy back stock.

Operator

Thank you. At this time, ladies and gentlemen, we would like to thank you for your participation. This does conclude today's teleconference. Please disconnect your lines at this time, and have a great day.