Greenlight Re has reported a net income of $13.5mn for the third quarter of 2023, compared to the $18.5mn net loss seen in the same quarter last year; gross premiums written (GPW) increased to $183.1mn, and combined ratio improved to 91.2% from 115.4%.
The 18% GPW increase in Q3 2023 relates primarily to new contracts bounds during 2023 related to property, general liability, and specialty business, the reinsurer explained.
Greenlight Re also reported a net underwriting income of $14.4mn in this year’s Q3 which compares to the net underwriting loss of $18.9mn reported in Q3 2022.
Total investment income of $5.1mn in Q3 2023, an improvement compared to total investment income of $11.6mn in Q3 2022. The company’s investment in the Solasglas fund, managed by DME Advisors, returned (0.6)%, representing a net loss of $1.9mn.
The company reported $7.0mn of other investment income, primarily from interest earned on its restricted cash and cash equivalents.
Non-underwriting loss for Q3 2023 was $1.3mn, due primarily to foreign exchange losses driven by the weakening of the pound sterling, partially offset by investment income on the funds withheld by the Lloyd’s syndicates, Greenlight Re explained.
Simon Burton, Chief Executive Officer of Greenlight Re, stated: “The underwriting result of 91.2% combined ratio led our performance in the third quarter as we grew book value by 2.3%.
“This result was impacted by approximately 4 combined ratio points of legacy reserve development, as inflationary pressure has persisted in discontinued areas of our business.”
David Einhorn, Chairman of the Board of Directors, commented: “The third quarter was challenging period in the equity markets. A partial reversal of our gains in Green Brick Partners slightly more than offset good performance throughout the balance of the portfolio. Year-to-date through September 30, the Solasglas fund was up 9.1%.”
