Greenlight Re Reports Q2 Net Loss of $39.6M on Investments, Legacy Business

August 5, 2015

Cayman Islands-based Greenlight Re reported a net loss of $39.6 million for the second quarter of 2015, compared to net income of $109.6 million for the same period in 2014.

The net loss per share for the second quarter of 2015 was $1.06, compared to fully diluted net income per share of $2.89 for the same period in 2014.

Fully diluted adjusted book value per share was $29.07 as of June 30, 2015, a 4.6 percent decrease from $30.47 per share as of June 30, 2014.

“We are pleased with the new business and relationships we have developed this year,” said Bart Hedges, chief executive officer of Greenlight Re. “Unfortunately, our second quarter results were impacted by a small loss in our investment portfolio and adverse development in a contract in run-off that negatively impacted our combined ratio.”

Financial and operating highlights for Greenlight Re for the second quarter and six months ended June 30, 2015 include:

  • Gross written premiums of $93.0 million, an increase from $33.7 million in the second quarter of 2014; net earned premiums were $91.7 million, an increase from $87.9 million reported in the prior year period.
  • An underwriting loss of $8.9 million, compared to underwriting income of $5.6 million in the second quarter of 2014.
  • A composite ratio for the six months ended June 30, 2015 of 102.2 percent, compared to 93.9 percent for the prior year period. The combined ratio for the six months ended June 30, 2015 was 109.2 percent, compared to 99.8 percent for the prior year period.
  • A net investment loss of 1.5 percent on Greenlight Re’s investment portfolio managed by DME Advisors, LP compared to a net investment gain of 8.1 percent in the second quarter of 2014. For the first six months of 2015, the net investment loss was $45.1 million, representing a loss of 3.2 percent, compared to net investment income of $103.8 million during the comparable period in 2014 when Greenlight Re reported a 7.3 percent return.
  • During the second quarter and in July 2015, Greenlight Re repurchased 500,000 Class A ordinary shares at an average price of $29.32. Greenlight Re can repurchase up to an additional 1,500,000 Class A ordinary shares or securities convertible into Class A ordinary shares in the open market under its current share repurchase plan, which expires on June 30, 2016.

“Our investment portfolio continues to be defensively positioned as we remain cautious due to an uncertain investment environment,” stated David Einhorn, chairman of the board of directors. “While we are disappointed with the underwriting loss from legacy business this quarter, we remain encouraged by the current portfolio and new relationships.”

Source: Greenlight Capital Re

Was this article valuable?

Here are more articles you may enjoy.