In a recent filing with the Securities and Exchange Commission, Greenlight Capital Re, Ltd., a specialty property and casualty reinsurance company, disclosed the outcomes of its Annual General Meeting of Shareholders held on Thursday. Shareholders voted on several key issues, including the election of directors and the appointment of an independent auditor for the upcoming fiscal year.
The company, which is listed on the Nasdaq Global Select Market under the ticker GLRE, confirmed the election of all nominated directors to serve until the 2025 Annual General Meeting. Among the elected directors is David Einhorn, a well-known hedge fund manager. Votes against director nominees ranged from 354,266 to 2,487,473, with abstentions remaining low across the board.
Moreover, shareholders ratified the appointment of Deloitte Ltd. as the company's independent auditors for the fiscal year ending December 31, 2024. The decision was nearly unanimous, with 28,207,464 votes in favor, 3,271 against, and 5,580 abstentions.
The company's executive compensation plan also received approval, with 21,713,901 votes for, 630,589 against, and 269,183 abstentions. This non-binding advisory vote reflects shareholder support for the compensation of the company's named executive officers as outlined by SEC disclosure rules.
The results of the Annual General Meeting, as detailed in the 8-K filing, provide shareholders and the market with insights into Greenlight Capital Re's governance and oversight for the coming year. The company's business address and contact information remain unchanged, as specified in the filing.
This article is based on a press release statement.
In other recent news, Greenlight Capital Re Ltd reported a strong first quarter for 2024, with gross written premium increasing by 16.5% compared to the same period last year. The company also posted net income of $27 million, marking a 3.9% growth in fully diluted book value per share over the quarter, or an annualized rate of 16.5%. Despite a significant loss from the Francis Scott Key Bridge collapse in Baltimore, Greenlight Re maintained underwriting profitability with a combined ratio of 98%.
These developments indicate the company's resilience in the face of adversity. The bridge incident, while causing a significant loss, did not deter the company from achieving a sixth consecutive quarter of underwriting profitability. Greenlight Re also expects marine market rates to harden following the bridge incident.
In addition to these highlights, the company saw growth in the recent renewal season, with market discipline remaining strong. However, it is important to note that Greenlight Re decided not to renew a homeowner's quota share contract due to U.S. convective storm risk. This decision is part of the company's strategic approach to manage risk and ensure sustained growth.
InvestingPro Insights
As Greenlight Capital Re, Ltd. (GLRE) solidifies its governance structure following the Annual General Meeting, investors may find additional context in the company's current financial metrics and market performance. According to InvestingPro data, Greenlight Capital Re boasts a market capitalization of $473.83 million and is trading at an attractive earnings multiple, with a P/E ratio of 4.23 for the last twelve months as of Q1 2024. This low earnings multiple could signal a potential undervaluation of the company's stock relative to its earnings power.
InvestingPro Tips highlight that while the company is trading near its 52-week high, at 98.24% of its peak value, it also suffers from weak gross profit margins, at 22.42%. Despite this, the company has been profitable over the last twelve months, with a robust revenue growth of 27.4% in the same period. However, it is worth noting that GLRE does not pay a dividend to shareholders, which might influence investment strategies focused on income generation.
For those looking to delve deeper into Greenlight Capital Re's financial health and future prospects, InvestingPro offers additional tips and a fair value estimate of $16.14 USD per share, suggesting potential upside from the previous close price of $13.52 USD. Interested readers can access more insights with an exclusive offer: use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With a total of five InvestingPro Tips available, investors can gain a more nuanced understanding of GLRE's financial landscape.
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