David Einhorn - Chairman Bart Hedges - CEO Tim Courtis - CFO Brendan Barry - Chief Underwriting Officer Claude Wagner - Chief Actuary

Thank you for joining the Greenlight Re Conference Call for the First Quarter 2013 Earnings. Joining us on the call this morning are David Einhorn, Chairman; Bart Hedges, Chief Executive Officer; Tim Courtis, Chief Financial Officer; Brendan Barry, Chief Underwriting Officer; and Claude Wagner, Chief Actuary. The Company reminds you that forward-looking statements that may be made in this call are intended to be covered by the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but rather reflect the Company's current expectations, estimates and predictions about future results and events and are subject to risks, uncertainties and assumptions, including those enumerated in the Company's Form 10-K dated February 19th, 2013, and other documents filed by the Company with the SEC. If one or more risks or uncertainties materialize or if the Company's underlying assumptions prove to be incorrect, actual results may vary materially from what the Company projects. The Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being record. I'd now like to turn the conference over to Bart Hedges. Please go ahead sir.

Good morning. I'm Bart Hedges, Chief Executive Officer of Greenlight Re. Thank you for taking the time to join us today. During the first quarter of 2013, we increased our fully diluted adjusted book value per share by 6.5% from $22.01 to $23.45 per share. Our investment portfolio performed well and generated a gain of $61.1 million. Our underwriting operations, net of all expenses, produced a combined ratio of 101.7% or a loss of $1.9 million. During the quarter, we took reserve actions, which resulted in adverse development of $1.6 million. The most significant reserve adjustments related to our general liability reserves. In total, we increased loss reserves for our general liability line of business by $16.8 million. Majority of our general liability business was produced through two significant relationships, and covered small contractors during the period from 2008 to 2013. The last remaining exposure will expire in August 2013. Our analysis of the experience included claims, reviews, by both in-house and external resources, to verify proper claims handling procedures are in place, and actual review of the claims data to-date, and a review of results for other carriers that we believe were similar books of business. We believe that the worst than expected results are mainly attributable to the downturn in the economy, which led to a higher incident of bankruptcy of small contractors and higher than expected frequency of small claims. Moving on to commercial automobile. We made some adjustments to individual accounts this quarter, but the overall net impact was no change to the reserves, as the business continues to mature. Last quarter, we established a reserve for losses relating to super-storm Sandy. The entire reserve of $15 million related to a single property catastrophe retro contract. That contract renewed April 1st, and during the renewal process,…

Thanks, Bart, and good morning everyone. The Greenlight Re investment portfolio managed by DME Advisors, returned 5.8% in the first quarter, led by the gains in Marvel and Vodafone, and continued weakening again. Marvel reversed much of its 2012 decline in the first quarter, as investors shifted their focus to Marvel's robust product pipeline, and aggressive stock buyback plan. Vodafone shares appreciated as it is now clear that Horizon is interested in buying Vodafone's 45% stake in Horizon Wireless. Our biggest loss in the first quarter came from Apple, which declined about 17%. The biggest problems for Apple investment are disappointing earnings and a diminished forecast. Our thesis remains that Apple has a terrific operating platform and is loyalty in growing customer base will make repeated purchases of a growing portfolio of Apple products. Apple took a major step forward by issuing debt and announcing it will return $100 billion to shareholders over the next three years. This is a vastly more shareholder firmly capital allocation policy, then where Apple stood a few months ago. We've added to our Apple position. Now, we just wait for the release of Apple's next blockbuster product. Our short portfolio mostly detracted from our performance, as our shorts rose less than half as much as the market. About a quarter of the first quarter results came from our macro portfolio lead by gains in the net long. Through April, our net long position has reversed all of the losses from 2010 and 2011, a portfolio's biggest losing position in each of those years. These gains have more than offset the gold price decline in the first quarter and April. We were somewhat surprised by the swift decline in the price of gold in April. With Governor Kuruda's appointment, the Bank of Japan officially joined…

Thanks, David. For the first quarter of 2013, Greenlight Re reported net income of $56.7 million compared to net income of $55.1 million for the comparable period in 2012. Net income per share on fully diluted basis was $1.52 for the first quarter 2013 compared to net income of $1.75 per share for the same period in 2012. Gross premiums written were $127 million during the first quarter of 2013, a decrease of 16.6% from gross premiums written of $152.2 million in the first quarter of 2012. This decrease is primarily a result of lower premiums written on Florida homeowners contracts, resulting from an ovation during 2012 of certain contracts, as well as a decrease in general liability premiums due to certain contracts being cancelled during the fourth quarter 2012. Our net earned premiums of $109.5 million increased by 7.8% from $101.6 million reported in the first quarter of last year. The increase in net premiums earned is primarily, attributable to our non-standard automobile contracts, which were written during 2012. This increase was partially offset by decreases in previously cancelled commercial motor contracts. The composite ratio for the first quarter of 2013 was 98.2%, compared to the composite ratio of 97.8% during the comparable period in 2012. For frequency business, our composite ratio was a 108.8%, which reflects the increase in loss reserves on general liability business during the quarter. Offsetting this, our severity business reported positive development during the quarter as loss reserves on super-storm Sandy were taken down. This quarter we've broken out our general and administrative expenses into internal expenses and corporate expenses. Since many other reinsures calculate their combined ratios excluding corporate expenses, we believe the additional disclosure will help you make an apples-to-apples comparison. However, we will continue to report our combined ratio, including both…

Thanks Tim. Overall we had a good quarter increasing fully diluted book value per share by 6.5%. Our reported underwriting performance during the quarter continues to be below our expectations. We're working diligently to find new underwriting opportunities to profitably deploy capital, but market conditions remain quite competitive. If we cannot find opportunities to deploy our capital with adequate risk adjusted returns, we will continue to manage our renewal relationships, and remain prepared for a better underwriting environment. Our goal is unchanged. We aim to build long-term shareholder value by writing a concentrated underwriting portfolio with the best risk adjusted returns we can find, and to utilize the funds generated from these contracts to invest in our deep value long, short investment program. This investment approach has historically generated superior returns with less volatility than the overall equity markets. We will continue to execute on this strategy and remained focused on driving our key yardsticks, increased fully diluted book value per share. We appreciate your continued confidence in Greenlight Re. Thank you again for your time and now we'd like to open up the call for questions.

We will now begin the question-and-answer session. (Operator Instructions) Seeing that there are no questions, I'd like to mention that should you have any follow-up questions, please direct them to Garrett Edson of ICR at (203) 682-8331 and he will be happy to assist you. We also remind you that a replay of this call and other pertinent information about Greenlight Re is available on our website at www.greenlightre.ky. The conference has ended. You may disconnect your lines.