Business Context and Reporting Period
Company: GREENLIGHT CAPITAL RE, LTD.
Filing Type: Form 8-K (Current Report)
Date of Report: December 27, 2019
Reporting Period: Event date December 27, 2019; Agreement effective period June 1, 2019 to June 30, 2020.
Key Financial Metrics
This filing does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity metrics. The document reports on a contractual agreement regarding fee structures and asset allocation rather than financial performance results.
Material Changes and Agreements
On December 27, 2019, the registrant's wholly-owned subsidiaries, Greenlight Reinsurance, Ltd. and Greenlight Reinsurance Ireland, entered into an Amended and Restated Letter Agreement with Solasglas Investments, LP. Key terms include:
- Asset Allocation Requirement: Not less than 50% of the Investment Portfolio for each subsidiary must be held in cash and cash equivalents.
- Fee Exemption: The portion of the Investment Portfolio held in cash or cash equivalents is exempt from Management Fees and Performance Allocations.
- Duration: These terms apply from June 1, 2019, through June 30, 2020.
- Amendment: This agreement amends and restates a prior letter agreement dated June 18, 2019.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future performance, or specific risk factors beyond the terms of the agreement. The agreement modifies the fee structure based on liquidity holdings, which may impact future expense ratios depending on market conditions and investment strategy.
Investor Verification Checklist
- Verify the total value of the Investment Portfolio to assess the impact of the 50% cash holding requirement.
- Review the full text of the Amended and Restated Letter Agreement (Exhibit 10.1) for definitions of "Management Fee" and "Performance Allocation."
- Confirm the impact of this fee exemption on the company's net income and expense ratios for the period ending June 30, 2020.
- Check subsequent filings to determine if the agreement was extended or terminated after June 30, 2020.