Greenlight Re Announces Third Quarter 2024 Financial Results
GRAND CAYMAN, Cayman Islands, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Greenlight Capital Re, Ltd. (NASDAQ:GLRE) ("Greenlight Re" or the "Company") today reported its financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Highlights (all comparisons are to third quarter 2023 unless noted otherwise):
Gross premiums written of $168.3 million compared to $183.1 million;
Net premiums earned of $151.9 million, compared to $163.1 million;
Net underwriting income of $6.1 million, compared to $14.4 million;
Total investment income of $28.1 million, compared to $5.1 million;
Net income of $35.2 million, or $1.01 per diluted ordinary share, compared to $13.5 million, or $0.39 per diluted ordinary share;
Combined ratio of 95.9%, compared to 91.2%; and
Fully diluted book value per share increased $1.07, or 6.1%, to $18.72, from $17.65 at June 30, 2024.
Greg Richardson, Chief Executive Officer of Greenlight Re, stated, "Our third quarter results demonstrated Greenlight Re's disciplined and resilient underwriting approach, achieving profitable performance for the eighth consecutive quarter. Alongside strong investment returns, Greenlight Re recorded a notably strong quarter."
David Einhorn, Chairman of the Board of Directors, said, "Solasglas generated a net return of 5.2% in the third quarter, while maintaining a conservative 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."
Third Quarter 2024 Results
Gross premiums written in the third quarter of 2024 were $168.3 million, compared to $183.1 million in the third quarter of 2023. The $14.7 million decrease, or 8.0%, was primarily due to a personal property contract and a Lloyd's casualty contract that the Company non-renewed during 2024, and was partially offset by growth in the specialty business. Similarly, earned premiums decreased by $11.2 million, or 6.9%, to $151.9 million.
The Company recognized net underwriting income of $6.1 million in the third quarter of 2024, compared to net underwriting income of $14.4 million during the equivalent period in 2023. The combined ratio for the third quarter of 2024 was 95.9%, compared to 91.2% for the equivalent period in 2023. Catastrophe losses, including Hurricane Helene, Central European floods and US severe convective storms, added 9.3% to the combined ratio during the third quarter of 2024.
The Company's total investment income during the third quarter of 2024 was $28.1 million. The Company's investment in the Solasglas fund, managed by DME Advisors, returned 5.2%, representing net income of $19.8 million. The Company reported $8.2 million of other investment income, primarily from interest earned on its restricted cash and cash equivalents.
The net income of $35.2 million contributed to the 6.1% increase in fully diluted book value per share for the quarter, which increased to $18.72 per share at September 30, 2024 from $17.65 at June 30, 2024.
During the third quarter of 2024, the Company repurchased 547,402 ordinary shares for $7.5 million under its share repurchase plan.
The following table summarizes the components of the Company's combined ratio.
Third Quarter
Underwriting ratios
2024
2023
Loss ratio - current year
65.0
%
61.4
%
Loss ratio - prior year
(3.7)%
(2.0)%
Loss ratio
61.3
%
59.4
%
Acquisition cost ratio
30.4
%
28.8
%
Composite ratio
91.7
%
88.2
%
Underwriting expense ratio
4.2
%
3.0
%
Combined ratio
95.9
%
91.2
%
Greenlight Capital Re, Ltd. Third Quarter 2024 Earnings Call
Greenlight Re will host a live conference call to discuss its financial results on Tuesday, November 5, 2024, at 9:00 a.m. Eastern Time. Dial-in details:
U.S. toll free 1-877-407-9753 International 1-201-493-6739
The conference call can also be accessed via webcast at:
https://event.webcasts.com/starthere.jsp?ei=1692074&tp_key=a944f284f8
A telephone replay will be available following the call through November 11, 2024. The replay of the call may be accessed by dialing 1-877-660-6853 (U.S. toll free) or 1-201-612-7415 (international), access code 13749374. An audio file of the call will also be available on the Company's website, www.greenlightre.com.
2024 Investor Day
As previously announced, the Company will host its 2024 Investor Day in New York City on Tuesday, November 19, 2024, at 12:00 noon Eastern Time. The event will include a luncheon, detailed presentation from members of the executive management team, and opportunities for live interaction during the Q&A segment.
Attendees must register in advance. To register, please contact Karin Daly, Greenlight Capital Re's investor relations representative at
The 2024 Investor Day will be held exclusively in-person. An archived webcast will become available on the Company's website following the event.
Non-GAAP Financial Measures In presenting the Company's results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). Such measures, including fully diluted book value per share and net underwriting income (loss), are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. Management believes these measures allow for a more thorough understanding of the underlying business. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies and should be used to monitor our results and should be considered in addition to, and not viewed as a substitute for those measures determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included in the attached financial information in accordance with Regulation G.
Forward-Looking Statements This news release contains forward-looking statements concerning Greenlight Capital Re, Ltd. and/or its subsidiaries (the "Company") within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on the Company's behalf. These risks and uncertainties include a downgrade or withdrawal of our A.M. Best ratings; any suspension or revocation of any of our licenses; losses from catastrophes; the loss of significant brokers; the performance of Solasglas Investments, LP; the carry values of our investments made under our Greenlight Re Innovations pillar may differ significantly from those that would be used if we carried these investments at fair value; and other factors described in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 5, 2024, as those factors may be updated from time to time in our periodic and other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, which speak only as to the date of this release, whether as a result of new information, future events, or otherwise, except as provided by law.
About Greenlight Capital Re, Ltd.Greenlight Re (www.greenlightre.com) provides multiline property and casualty insurance and reinsurance through its licensed and regulated reinsurance entities in the Cayman Islands and Ireland, and its Lloyd's platform, Greenlight Innovation Syndicate 3456. The Company complements its underwriting activities with a non-traditional investment approach designed to achieve higher rates of return over the long term than reinsurance companies that exclusively employ more traditional investment strategies. The Company's innovations unit, Greenlight Re Innovations, supports technology innovators in the (re)insurance space by providing investment capital, risk capacity, and access to a broad insurance network.
Investor Relations ContactKarin DalyVice President, The Equity Group Inc. (212)
GREENLIGHT CAPITAL RE, LTD.CONDENSED CONSOLIDATED BALANCE SHEETS(expressed in thousands of U.S. dollars, except per share and share amounts)
September 30, 2024
December 31, 2023
(UNAUDITED)
Assets
Investments
Investment in related party investment fund, at fair value
$
397,888
$
258,890
Other investments
73,559
73,293
Total investments
471,447
332,183
Cash and cash equivalents
54,642
51,082
Restricted cash and cash equivalents
567,091
604,648
Reinsurance balances receivable (net of allowance for expected credit losses)
718,719
619,401
Loss and loss adjustment expenses recoverable (net of allowance for expected credit losses)
65,947
25,687
Deferred acquisition costs
82,206
79,956
Unearned premiums ceded
35,270
17,261
Other assets
6,364
5,089
Total assets
$
2,001,686
$
1,735,307
Liabilities and equity
Liabilities
Loss and loss adjustment expense reserves
$
811,152
$
661,554
Unearned premium reserves
347,103
306,310
Reinsurance balances payable
88,152
68,983
Funds withheld
20,788
17,289
Other liabilities
8,491
11,795
Debt
62,582
73,281
Total liabilities
1,338,268
1,139,212
Shareholders' equity
Ordinary share capital (par value $0.10; issued and outstanding, 34,832,493) (2023: par value $0.10; issued and outstanding, 35,336,732)
$
3,483
$
3,534
Additional paid-in capital
481,672
484,532
Retained earnings
178,263
108,029
Total shareholders' equity
663,418
596,095
Total liabilities and equity
$
2,001,686
$
1,735,307
GREENLIGHT CAPITAL RE, LTD.CONDENSED CONSOLIDATED RESULTS OF OPERATIONS(UNAUDITED) (expressed in thousands of U.S. dollars, except percentages and per share amounts)
Three months ended September 30
Nine months ended September 30
2024
2023
2024
2023
Underwriting revenue
Gross premiums written
$
168,346
$
183,074
$
554,579
$
524,472
Gross premiums ceded
(26,598
)
(14,789
)
(64,611
)
(35,740
)
Net premiums written
141,748
168,285
489,968
488,732
Change in net unearned premium reserves
10,136
(5,175
)
(18,150
)
(43,030
)
Net premiums earned
$
151,884
$
163,110
$
471,818
$
445,702
Underwriting related expenses
Net loss and loss adjustment expenses incurred:
Current year
$
98,820
$
100,143
$
305,467
$
273,570
Prior year
(5,654
)
(3,300
)
(943
)
10,502
Net loss and loss adjustment expenses incurred
93,165
