Investments make Greenlight Re swing to Q1 loss
Hedge fund-backed Greenlight Capital Re reported a loss for the first quarter of 2018 driven by investments.
Cayman Islands-based Greenlight Re reported a net loss of $142.8 million for the first quarter of 2018, compared to net income of $8.4 million for the same period in 2017. The reinsurer was impacted by net investment losses of $145.2 million compared to net investment income of $11.6 million in the first quarter of 2017.
Greenlight Re’s investments are managed by David Einhorn's Greenlight Capital hedge fund. The funds are invested with an emphasis on deriving “superior returns from both sides of the balance sheet” while assets are managed according to a “value-oriented equity-focused strategy”.
“The investment loss this quarter overshadowed our improved underwriting performance and a quarter combined ratio of 98.3 percent,” said Greenlight Re CEO Simon Burton. “Our reserve position showed favourable prior year reserve development and the ongoing business is performing well under difficult market conditions,” Burton added.
Overall, Greenlight Re reported underwriting income of $2.5 million, compared to an underwriting loss of $0.2 million in the first quarter of 2017.
David Einhorn, chairman of the board of directors, said: “I am pleased to see that the steps management has taken in our underwriting business are beginning to materialize in a positive manner. We experienced a difficult quarter in our investment portfolio, reporting a loss of 11.8 percent. Notwithstanding the quarterly loss, we remain confident that our disciplined, value-oriented style and patience will be rewarded.”
Greenlight Re’s gross written premiums declined to $175.1 million in the first quarter of 2017 from $197.2 million in the first quarter of 2017.
Make sure you are GDPR compliant and confirm your email address to keep getting our daily emails
More of today's news
Universal chief risk officer expects flat reinsurance cost in 2018
Profits and premiums plummet at Blue Capital despite rate hikes
Swiss Re appoints UK/Ireland corporate solutions head from Zurich
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze