Greenlight Capital Re, Ltd. has reported a Q4 2023 combined ratio of 91.4% compared to 94.2% in the prior year quarter, as the current-year loss ratio improved by 3.8% to 54.7% driven by improved pricing on the in-force underwriting book.
The reinsurer’s net underwriting income hit $11.8 million in Q4 2023 compared year-over-year to $6.5 million.
At the same time, the company saw a decrease of 11.8% in gross premiums written (GPW) in Q4 2023 to $112.3 million from $127.4 million in Q4 2022, driven by premium adjustments recorded in the fourth quarter based on revised premium estimates and updated reporting received from cedents.
Earned premiums increased by $26.1 million, or 23.4%, to $137.4 million as the growth in premiums written throughout 2023 continued to earn out for the firm.
While the underwriting performance improved, total net investment income for the quarter was $13.6 million, down from the $32.5 million in Q4 2022.
Net income for Q4 2023 amounted to $17.6 billion, down from the $34.8 million reported a year earlier. Although, for the full year 2023, net income rose to $86.8 million from $25.3 million in 2022.
The full year 2023 combined ratio strengthened to 94.5% from 102.3% in the prior year, as underwriting income of $32 million improved significantly from the loss of $10.7 million in 2022. The underwriting income for 2023 was driven primarily by lower catastrophe losses and favorable pricing in the year, partially offset by strengthened reserves relating to prior years.
2023 GPW increased 13.1% to $636.8 million as a result of growth in all three categories as Property, Casualty, and Specialty premiums written increased by 32.8%, 8%, and 12.9%, respectively. Net premiums earned increased 24.2% to $583.1 million in 2023.
On the asset side of the balance sheet, Greenlight Re has reported total investment income of $66.1 million for 2023 compared to $69 million in 2022.
Greg Richardson, Chief Executive Officer of Greenlight Re, commented, “The Company ended the year with robust growth in fully diluted book value per share, driven by strong performance on both sides of the balance sheet.”
David Einhorn, Chairman of the Board of Directors, added, “2023 was a milestone year for the company with solid returns on both our underwriting and investing activities. We successfully executed several executive management transitions and believe we are well positioned going into 2024.”
