Greenlight Capital Re has reported financial results for the fourth quarter and full year ending Dec. 31, 2024, reflecting an increase in gross premiums written but a decline in net income compared to the previous year.
For the fourth quarter of 2024, gross premiums written rose 28.0% to US$143.8 million, while net premiums earned increased 7.8% to US$148.1 million. The company reported a net underwriting loss of US$18 million, compared to net underwriting income of US$11.8 million in the same period last year.
The combined ratio stood at 112.1%, up from 91.4% in the fourth quarter of 2023. Total investment income was US$2.6 million, compared to US$14.1 million in the prior-year quarter. The company posted a net loss of US$27.4 million, or US$(0.81) per diluted ordinary share, compared to net income of US$17.6 million, or US$0.50 per diluted ordinary share, a year earlier.
The underwriting loss for the quarter was primarily attributed to reserve strengthening in the open market specialty segment due to aviation losses from the 2022 Russia-Ukraine conflict, as well as catastrophe losses from Hurricane Milton, the Jeju Air plane crash, and other marine and energy-related events. The combined ratio included 10.1% related to the Russia-Ukraine conflict and 11.9% from catastrophe losses.
Greg Richardson (pictured above), CEO of Greenlight Re, said the company’s financial results for the quarter and full year did not meet expectations.
He noted, however, that despite the shortfall, the company has strengthened its organization, processes, and balance sheet and is positioned to deliver shareholder value in 2025 and beyond.
Greenlight Capital Re’s Q4 2024 continued a downward trend, with the company reporting a lower gross premiums written of US$168.3 million in Q3, down from US$183.1 million in the same quarter last year.
For the full year, gross premiums written rose 9.7% to US$698.3 million, and net premiums earned increased 6.3% to US$620 million.
The company reported a net underwriting loss of US$8.2 million, compared to a net underwriting income of US$32 million in 2023. The combined ratio was 101.4%, compared to 94.5% the previous year. Total investment income for 2024 was US$79.6 million, up from US$72.1 million in 2023.
Net income for the year was US$42.8 million, or US$1.24 per diluted ordinary share, compared to US$86.8 million, or US$2.50 per diluted ordinary share, in 2023. Fully diluted book value per share increased 7.2% to US$17.95, from US$16.74 at the end of 2023.
The underwriting loss for 2024 was largely driven by reserve strengthening in the open market specialty segment due to aviation losses from the 2022 Russia-Ukraine conflict, as well as catastrophe losses from the Baltimore Bridge collapse, Hurricanes Helene and Milton, the Jeju Air plane crash, and other marine and energy-related events. The combined ratio for the year included 2.4% related to the Russia-Ukraine conflict and 9.3% from catastrophe losses.
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