Greenlight Capital Re, Ltd. Sees Increase in Gross Premiums Written Despite Underwriting Losses
Greenlight Capital Re, Ltd., a reinsurer based in the Cayman Islands, has announced a 28% rise in gross premiums written (GPW) for the fourth quarter of 2024, totaling $143.8 million. This growth is contrasted by a notable underwriting loss during the quarter, primarily due to increased reserves related to aviation losses emerging from Russia’s ongoing invasion of Ukraine and significant catastrophe-related losses.
The reinsurer reported an underwriting loss of $18 million, driven by reserve strengthening for aviation losses and catastrophes, including Hurricane Milton, the Jeju Air plane crash, and other marine and energy-related incidents. This is a stark contrast to the underwriting gain of $11.8 million seen in the same quarter of the previous year. The combined ratio worsened from 91.4% to 112.1% in Q4 2024, with 10.1% attributed to the Russia-Ukraine conflict and 11.9% due to catastrophe events.
Despite these challenges, Greenlight Re achieved a 7.8% increase in net premiums earned (NPE), reaching $148.1 million compared to $137.4 million in Q4 2023. The company’s total investment income for the quarter was $2.6 million, a decrease from the previous year’s $14.1 million.
Overall, Greenlight Re recorded a net loss of $27.4 million for Q4 2024, a considerable shift from the net income of $17.6 million reported in Q4 of the previous year.
For the full year 2024, GPW rose by 9.7% to $698.3 million from $636.8 million in 2023. NPE also increased by 6.3% to $620 million, compared to the $583.1 million in the prior year.
The year-end results show a net underwriting loss of $8.2 million for 2024, down from a net underwriting income of $32 million in 2023. This outcome was again influenced by reserve strengthening and catastrophe losses, including the Baltimore Bridge collapse, Hurricanes Helene and Milton, the Jeju Air incident, and other marine events. The combined ratio for 2024, which included 2.4% due to the Russia-Ukraine conflict and 9.3% due to catastrophes, was 101.4%, compared to 94.5% in the previous year.
Total investment income for the year was $79.6 million, up from $72.1 million in 2023. However, net income for 2024 was reported at $42.8 million, a decrease from the $86.8 million reported in the previous year.
Greg Richardson, CEO of Greenlight Re, expressed, “Although our financial results for the fourth quarter and full year of 2024 did not meet our expectations, we are pleased with the progress we made in strengthening our organization, processes, and balance sheet. We are well-positioned to deliver value to our shareholders in 2025 and beyond.”
David Einhorn, Chairman of the Board of Directors, remarked, “The fourth quarter posed challenges for our investment strategy following the U.S. election results. Nonetheless, Solasglas achieved a 9.8% return for the full year 2024, which is commendable given our conservative approach, ending the year with a net exposure of 33%.”
