Greenlight Capital Re Reports 2024 Q3 Results, Net Income Surges to $35.2 Million

As of September 30, 2024, Greenlight Capital Re, Ltd. reported total assets of $2.0 billion, an increase from $1.7 billion at the end of 2023. Total investments rose significantly to $471.4 million, up from $332.2 million, while cash and cash equivalents increased slightly to $54.6 million from $51.1 million. Reinsurance balances receivable also saw a rise to $718.7 million, compared to $619.4 million at the end of the previous year. However, total liabilities increased to $1.3 billion from $1.1 billion, leading to a rise in shareholders' equity to $663.4 million, up from $596.1 million.

For the third quarter of 2024, total revenues reached $188.0 million, compared to $166.9 million in the same period of 2023. Net income for the quarter was $35.2 million, a substantial increase from $13.5 million year-over-year. Basic earnings per share (EPS) improved to $1.03 from $0.40 in the prior year. For the nine months ended September 30, 2024, net income was $70.2 million, slightly up from $69.2 million in 2023.

The company experienced a decrease in gross premiums written for the third quarter, totaling $168.3 million, down 8.0% from $183.1 million in Q3 2023. The property segment saw a significant decline of 58.6%, attributed to the non-renewal of a U.S. homeowners’ property treaty. Conversely, the other segment increased by 52.0%, driven by new business in Marine and Energy classes. For the nine months, gross premiums written increased to $554.6 million from $524.5 million in the previous year.

Investment income for the third quarter surged to $28.1 million, a notable increase from $5.1 million in Q3 2023, primarily due to a gain from the investment in Solasglas. The company’s share of Solasglas’ net income for the quarter was $19.8 million, compared to a loss of $1.9 million in the same period last year.

The company reported a total loss and loss adjustment expense (LAE) reserve of $811.2 million, up from $661.6 million at the end of 2023, driven by new business and an increase in loss ratios. Current year catastrophe losses for the nine months ended September 30, 2024, were $48.9 million, significantly higher than $20.2 million in the same period of 2023.

In terms of strategic developments, the company revised its investment cap with Solasglas from 60% to 70% effective August 1, 2024. Additionally, a share repurchase plan was re-approved, allowing for the repurchase of up to $25 million of ordinary shares, with $7.5 million already executed in the current fiscal year.