Greenlight Re reports combined ratio improvement

Specialist property and casualty reinsurer Greenlight Re has reported net income attributable to common shareholders of $5.1 million for the third quarter of 2019, compared to a net loss attributable to common shareholders of $89.1 million for the same period in 2018. The combined ratio for the quarter was 98.0 percent, compared to 103.5 percent for the prior-year period.

The fully diluted net income per share for the third quarter of 2019 was $0.14, compared to a net loss per share of $2.48 for the same period in 2018. The company said the prior year period loss was primarily driven by a net investment loss during the period as well as an underwriting loss as a result of estimated losses from Hurricane Florence.

Fully diluted adjusted book value per share was $13.67 as of September 30, 2019, compared to $15.29 per share as of September 30, 2018 and $13.58 as of June 30, 2019.

Simon Burton, CEO of Greenlight Re, said: “We performed well in the third quarter,

achieving a combined ratio of 98.0 percent and growing book value by 1.2 percent. While we were not unaffected by the significant loss activity in the quarter, our positive underwriting contribution reflects the ongoing efforts to diversify our portfolio. As previously announced, our strategic review of the Company is ongoing as we work diligently to maximize value for our shareholders.”

David Einhorn, chairman of the board of directors, added: “Overall we are pleased with our investment portfolio’s performance as Solasglas posted a positive return of 10.4 percent for the first nine months of the year. The underwriting portfolio continues to benefit from increased diversification.”

Q3 highlights include gross written premiums of $110.6 million, compared to $115.2 million in the third quarter of 2018. The company said the quarterly decrease was largely due to the reduction in auto business, offset by additional new business written in several different markets.

Net written premiums increased 6.9 percent to $106.6 million, compared to $99.7 million reported in the prior-year period. Ceded premiums were $4.0 million compared to $15.5 million in the prior year period.

Net earned premiums were $129.2 million, an increase from $114.1 million reported in the prior-year period.

The company reported net underwriting income of $2.6 million, compared to a net underwriting loss of $4.0 million reported in the third quarter of 2018. The quarterly loss reserve review resulted in negligible prior-period development booked in the quarter.

A composite ratio for the quarter of 96.0 percent, compared to 100.9 percent for the prior-year period largely reflected improvements in the loss ratio and acquisition cost ratio.

Total net investment income was $9.9 million, compared to a net investment loss of $80.9 million in the third quarter of 2018. Included in total net investment income is a gain of $6.6 million on the Solasglas fund.

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