Greenlight Capital Re has disclosed its financial performance for the fourth quarter and the full year ending December 31, 2023, revealing its achievements and strategic movements.
In the fourth quarter of 2023, Greenlight Re reported gross premiums written of $112.3 million, marking an 11.8% decrease from the $127.4 million recorded in the same quarter of the previous year. This decline was attributed to timing-related factors, including adjustments based on revised premium estimates and updated reports from cedents.
Despite this, the company saw a 23.4% increase in earned premiums, reaching $137.4 million, thanks to the ongoing maturation of premiums written over the year.
The firm announced a net underwriting income of $11.8 million for the final quarter of 2023, an improvement over the $6.5 million reported in the corresponding period of 2022. The improved performance was reflected in a combined ratio of 91.4%, compared to 94.2% in the fourth quarter of 2022, driven by better pricing on its existing underwriting portfolio.
Investment income for the quarter stood at $13.6 million, with the Solasglas fund, managed by DME Advisors, contributing a 0.3% return, or net income of $0.9 million. The company also reported $12.7 million in other investment income, primarily from interest on its restricted cash and equivalents.
Greenlight Re also benefited from foreign exchange gains of $3.9 million during the fourth quarter, largely due to the strengthening of pound sterling. This contributed to a net income of $17.6 million and a 3.7% increase in fully diluted book value per share, which rose to $16.74 at the end of December 2023.
For the full year of 2023, gross premiums written surged to $636.8 million, a 13.1% increase from 2022, across property, casualty, and specialty lines. Net premiums earned rose by 24.2% to $583.1 million.
The year concluded with an underwriting income of $32.0 million, marking a significant turnaround from the $10.7 million underwriting loss in 2022, with a combined ratio improving to 94.5%. This was largely due to lower catastrophe losses an favorable pricing, and partially offset by adjustments to reserves from prior years.
Total investment income for the year amounted to $66.1 million, with the Solasglas fund generating $28.7 million, down from $54.8 million in the prior year. Foreign exchange gains for the year were reported at $11.6 million, aiding in a net income of $86.8 million and a 16.8% increase in fully diluted book value per share to $16.74.
Greg Richardson, CEO of Greenlight Re, commented on the year’s end, highlighting the company’s performance of the past year with robust growth.
“2023 was a milestone year for the company with solid returns on both our underwriting and investing activities. We successfully executed several executive management transitions and believe we are well positioned going into 2024,” board chairman David Einhorn said.
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