Hedge fund-backed reinsurer Greenlight Re has announced a net loss for the third quarter of 2021 of $13.9 million, compared to a $2.2 million income in the prior year quarter.
An underwriting loss of $12.6 million was driven by costs of $25.9 million associated with Hurricane Ida, the European floods and hailstorms, and the South African riots.
As a result, the company’s combined ratio climbed to 109.3%, up from 100.4% a year ago.
David Einhorn, Chairman of the Board of Directors, affirms that the company’s third quarter results do not reflect significant progress made in 2021.
“With our revamped underwriting, reaffirmation of our rating, progress on Innovations and new board members, we are excited about our near-term prospects,” Einhorn noted.
Gross premiums written in the third quarter of 2021 were $128.7 million, compared to $135.6 million in the third quarter of 2020.
This decrease relates primarily to motor and workers’ compensation contracts where the company elected to reduce its exposure or non-renew. These reductions were partially offset by increases in Lloyd’s syndicate and financial lines business.
Total investment income of $4.1 million, compared to total investment income of $6.9 million in the third quarter of 2020.
Net premiums earned were $135.5 million during the third quarter of 2021, an increase from $115.5 million.
Simon Burton, Chief Executive Officer of Greenlight Re, added, “The high level of catastrophes in the quarter led to an underwriting loss with a combined ratio of 109.3%.
“Adjusted for this impact, the underlying combined ratio for the quarter was 90.3% which is a significant improvement compared to 93.6% a year ago.
“The underwriting loss was partly offset by a positive investment return led by our Innovations unit, which continues to deliver both strategic and economic value.”
