This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Greenlight Capital Re's CEO Discusses Q3 2011 Results - Earnings Call Transcript

We continue to focus on frequency oriented business. Our existing underwriting portfolio reflects this with a split of gross premium written of 96% in frequency business and 4% in severity business. We recently wrote two new significant nonstandard automobile contracts with private passenger automobile writers in the United States. The typical nonstandard automobile policyholder purchases very low limits of liability in order to meet state financial responsibility requirements and typically does not purchase physical damage protections for their own vehicle. These opportunities put our underwriter model of supporting these specialists who are experts in their field and finding areas of the market that are experiencing some dislocation.

One of the contracts is for a Florida provider. The Florida private passenger automobile market has suffered losses in the recent past and as a result significant price increases are now being implemented. We believe this new partner is well positioned to take advantage of these market dislocations. Our other new partner is a regional writer with the concentration in Louisiana and several other states.

Our property cash retro portfolio did not change during the third quarter. US hurricane season is traditionally a less active quarter for new property cat retro accounts. We do not believe we suffered any losses from the US storm season to date nor have we experienced any adverse developments from earthquake losses reported in prior periods.

Our maximum catastrophe exposure is $66 million for any one event and $94 million for our maximum aggregate exposures to all events. These exposures are unchanged from the second quarter of 2011. As a reminder, we always state our catastrophe aggregates as the absolute amount of limit we have at risk, plus any reinstatement premiums.

We are continuing to pursue appropriate opportunities to grow our European business through our Greenlight Reinsurance Ireland subsidiary and have a number of productive conversations underway. We are seeking to build partnerships with small and medium-sized insurance enterprises that need a reliable capital partner. These are typically specialist insurers who recognize that when Sovereignty II regulations are implemented introducing a new approach to risk-based capital, they want to have a partner who can provide quick access to capital. While we are only one year into the process of building our presence in Europe, we are encouraged by the acceptance of our model and the identified need in the marketplace.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
TSLA $211.53 -4.96%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs