Greenlight Re Reports Q4 Net Income of $60.7 Million; $109.6 Million for Year

February 19, 2015

Greenlight Capital Re Ltd., which is based in the Cayman Islands, reported net income of $60.7 million for the fourth quarter of 2014, compared to net income of $83.9 million for the same period in 2013. Net income for the full year came to $109.6 million, compared with $225.7 million for 2013.

Fully diluted net income per share for the fourth quarter of 2014 was $1.60, compared to fully diluted net income per share of $2.22 for the same period in 2013. Fully diluted adjusted book value per share was $30.76 as of December 31, 2014, a 10.2 percent increase from $27.91 per share as of December 31, 2013.

“We are pleased with our progress and ability to attract new business in this competitive reinsurance market,” said Bart Hedges, chief executive officer of Greenlight Re.

“Overall, our 2014 premium numbers decreased due to the impact of not renewing certain business, which we believe was inadequately priced. Our combined ratio was modestly impacted by the effect of adverse development on prior years’ contracts and the deleveraging effect of flat costs on reduced premiums.”

Financial and operating highlights for Greenlight Re for the fourth quarter ended December 31, 2014 include:

  • Gross written premiums of $74.3 million, compared to $124.8 million in the fourth quarter of 2013; net earned premiums were $75.2 million, a decrease from $141.5 million reported in the prior-year period.
  • An underwriting loss of $(4.6) million, compared to underwriting income of $7.9 million in the fourth quarter of 2013.
  • A net investment gain of 5.3 percent on Greenlight Re’s investment portfolio managed by DME Advisors, LP compared to a net investment gain of 6.6 percent in the fourth quarter of 2013.

“In a persistently challenging reinsurance market, we have made progress finding new opportunities that we believe will bear favorable results,” stated David Einhorn, chairman of the board of directors. “The company remains focused on generating income and preserving capital while we continue to enhance our infrastructure and seek new business.”

Financial and operating highlights for Greenlight Re for the year ended December 31, 2014 include:

  • Gross written premiums in 2014 of $324.0 million, compared to $535.7 million in 2013; net earned premiums were $354.2 million, a decrease from $547.9 million reported for the prior year.
  • Underwriting income of $11.6 million, compared to underwriting income of $37.5 million for 2013.
  • The combined ratio for the year ended December 31, 2014 was 102.9 percent compared to 97.1 percent for the year ended December 31, 2013.
  • Net investment income was $122.6 million, representing a return of 8.7 percent, compared to net investment income of $218.1 million during 2013 when Greenlight Re reported a 19.6 percent return.

Source: Greenlight Capital Re

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