Greenlight Capital Re Reports $35.2 Million Net Income in Q3 2024
- The company reported gross premiums written of $168.3 million in Q3 2024, down from $183.1 million in Q3 2023.
- Total investment income rose significantly to $28.1 million, contributing to a net income of $35.2 million for the third quarter.
- Despite the increase in net income, the combined ratio worsened to 95.9%, indicating challenges in underwriting performance.
Greenlight Capital Re, Ltd. disclosed its financial performance for the third quarter ended September 30, 2024, revealing significant changes compared to the previous year. The company's gross premiums written decreased to $168.3 million, down from $183.1 million, while net underwriting income also dropped to $6.1 million from $14.4 million in the same period last year. Despite these declines, total investment income surged to $28.1 million, marking an impressive increase compared to $5.1 million in the preceding year. The net income for the third quarter reached $35.2 million, translating to $1.01 per diluted share, a substantial rise from the prior year’s $13.5 million or $0.39 per diluted share. The fully diluted book value per share increased by 6.1% to $18.72, reflecting a growth from $17.65 at the end of the second quarter of 2024. However, the company’s combined ratio worsened, moving to 95.9% from 91.2% in the same quarter of 2023. The change in underwriting performance indicates challenges in maintaining premium levels and controlling costs, evident from the uptick in acquisition cost and underwriting expense ratios. Greenlight Re’s performance is analyzed using key financial metrics essential for evaluating its underwriting operations and shareholder value growth. Overall, the results portray a conflicting picture of falling premiums and underwriting income against a backdrop of strong investment performance and net income growth, indicating the firm's ongoing efforts to manage its financial health even amidst market pressures.