Source: insurancebusinessmag.com

Greenlight Capital Re has released its financial results for the first quarter ending March 31, 2025, reporting year-over-year increases in gross premiums written and investment income, while also posting a net underwriting loss impacted by catastrophe exposure.

Gross premiums written rose 14.1% to US$247.9 million compared to the first quarter of 2024. Net premiums earned increased 4.3% to US$168.5 million. The company reported a net underwriting loss of US$7.8 million, reversing an underwriting income of US$3.4 million recorded in the prior-year period. The combined ratio for the quarter was 104.6%, up from 97.9% in Q1 2024.

Total investment income reached US$40.5 million, compared to US$31.4 million in the first quarter last year. Net income for the quarter was US$29.6 million, or US$0.86 per diluted ordinary share, up from US$27.0 million, or US$0.78 per diluted share, in Q1 2024. Greenlight Re’s fully diluted book value per share increased 5.1% to US$18.87, up from US$17.95 at year-end 2024.

Comparatively, the company saw a net underwriting loss of US$18 million in Q4 2024, compared to net underwriting income of US$11.8 million in the same period last year. The underwriting loss for the quarter was primarily attributed to reserve strengthening in the open market specialty segment due to aviation losses from the 2022 Russia-Ukraine conflict, as well as catastrophe losses from Hurricane Milton, the Jeju Air plane crash, and other marine and energy-related events. The combined ratio included 10.1% related to the Russia-Ukraine conflict and 11.9% from catastrophe losses.

“These results more than offset the financial impact of the California wildfires, which contributed 14 combined ratio points for the quarter, in line with the preliminary loss estimates we previously disclosed,” CEO Greg Richardson said.

David Einhorn, chairman of the board of directors, also commented on the investment outlook for Q1 2025, noting that the portfolio performed well during what appears to be the early stages of a bear market. “We are positioning Solasglas to have low gross and net exposure as we ride out what should be a period of high volatility ahead of what we expect will be an improved investment opportunity set.” Einhorn said.