Greenlight Capital Re has released its financial results for the third quarter ending Sept. 30, 2024, reporting gross premiums written of $168.3 million, down from $183.1 million in the same quarter last year.
This 8% decrease, equating to a $14.7 million decline, was primarily attributed to non-renewals in a personal property contract and a Lloyd’s casualty contract. Growth in specialty business partially offset these reductions. Earned premiums also saw a decline, falling by 6.9% to $151.9 million.
The company reported net underwriting income of $6.1 million for the quarter, a decrease from $14.4 million in the third quarter of 2023. The combined ratio rose to 95.9% from 91.2% year-over-year, with catastrophe events, including Hurricane Helene, Central European floods, and severe convective storms in the U.S., adding 9.3% to the ratio.
Greenlight Re’s total investment income for the quarter amounted to $28.1 million. The company’s investment in the Solasglas fund, managed by DME Advisors, generated a 5.2% return, contributing $19.8 million in net income. Additionally, other investment income, largely from interest on restricted cash and equivalents, contributed $8.2 million.
For the quarter, Greenlight Re’s net income was $35.2 million, resulting in a 6.1% increase in fully diluted book value per share, which rose to $18.72 as of Sept. 30, up from $17.65 as of June 30, 2024. The company also repurchased 547,402 ordinary shares for $7.5 million under its share repurchase program during the quarter.
Greg Richardson (pictured above), CEO of Greenlight Re, said that the third quarter results reflect a disciplined approach in underwriting, marking eight consecutive quarters of profitable performance.
“Alongside strong investment returns, Greenlight Re recorded a notably strong quarter,” Richardson said.
David Einhorn, chairman of the board, said that the Solasglas fund achieved a 5.2% net return in the third quarter with limited exposure to equity markets.
“Despite significant natural catastrophe events during the quarter, Greenlight Re performed well, with positive performance on both our underwriting and investment activities,” Einhorn said.
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