Greenlight Capital Re Reports $42.8 Million Net Income for Fiscal Year 2024, Down 51%

Greenlight Capital Re, Ltd. reported a net income of $42.8 million for the fiscal year ending December 31, 2024, a decrease of 51% from the previous year’s net income of $86.8 million. This decline was primarily attributed to increased losses from catastrophic events and unfavorable foreign exchange movements. The company’s gross premiums written rose by 9.7% to $698.3 million, while net premiums earned increased by 6.3% to $620.0 million. However, the net underwriting loss was $8.2 million, a significant drop from the net underwriting income of $32.0 million reported in 2023.

In terms of operational changes, Greenlight Capital Re has restructured its reporting segments into Open Market and Innovations, reflecting a strategic shift in its business operations. The Open Market segment saw gross premiums written increase to $603.8 million, driven by improved pricing in casualty and property lines, while the Innovations segment reported gross premiums of $94.7 million, up from $88.6 million in 2023. The company also made a strategic acquisition in January 2023, acquiring a Lloyd’s corporate member, which has enhanced its underwriting capacity and control over its Funds at Lloyd’s business.

The company’s total assets reached $2.0 billion, with shareholders’ equity at $635.9 million, reflecting a debt-to-capital ratio of 9.5%. Greenlight Capital Re maintained a strong liquidity position, with cash and cash equivalents totaling $649.1 million at year-end. The company’s investment strategy, primarily managed through Solasglas, yielded a net return of 9.8% for 2024, contributing to a total investment income of $79.6 million, an increase of 10.3% from the previous year.

Looking ahead, Greenlight Capital Re anticipates continued growth in its reinsurance business, despite increased competition in the market. The company plans to focus on writing business that meets its risk appetite and profitability requirements, while also managing the impact of inflation on its underwriting portfolio. The outlook for 2025 remains cautiously optimistic, with expectations of stable market conditions and ongoing efforts to enhance operational efficiency and capitalize on emerging opportunities in the reinsurance sector.