Greenlight Re has reported that net income in Q2 was $49.9 million, up from $14.8 million in the same quarter last year, while gross premiums written increased 15% to $154.9 million.
According to Greenlight Re, the $20.2 million increase in GWP relates primarily to new opportunities, improved property and general liability business pricing, and several new specialty contracts bound during the quarter.
Meanwhile, net premiums earned in Q2 increased to $139.9 million, marking a 27% increase from the same quarter last year.
The firm also recognised a net underwriting income of $5.4 million in the quarter, down from $9.3 million in Q2 2022.
The combined ratio for Q2 was 96.2%, compared to 91.6% for the equivalent period in 2022.
Greenlight Re explained that the current period combined ratio included $10.2 million, or 7.3 percentage points, of losses related to catastrophe events primarily relating to the U.S. severe storms that occurred during Q2. The storm losses stemmed from a homeowners’ insurance program.
Elsewhere, Greenlight Re’s total investment income during Q2 was $42.2 million, much improved compared to total investment income of $17.2 million in the same period of 2022.
Outlined, the firm said its investment in the Solasglas fund, managed by DME Advisors, returned 10.9%, representing a net income of $32.8 million.
Greenlight Re reported $9.4 million of other investment income, primarily from interest earned on its restricted cash and cash equivalents.
The firm also reported other non-underwriting income of $7.6 million during Q2, due primarily to investment income on the funds withheld by the Lloyd’s syndicates and foreign exchange gains driven by the strengthening of the pound sterling.
Simon Burton, Chief Executive Officer of Greenlight Re, commented, “Book value growth of 9.9% in the second quarter was very strong, and it is a demonstration of our multi-faceted strategy to build shareholder value.
“I’m pleased with the positioning of the underwriting book in favourable market conditions, although the combined ratio of 96.2% was impacted by 7.3 points from an unusually active quarter of severe storms in the U.S.”
David Einhorn, Chairman of the Board of Directors, said, “We had good results in the second quarter despite unusually bad weather in the U.S.
“The Solasglas fund generated a solid 10.9% return for the quarter, as gains in Green Brick Partners more than compensated for the return of a challenging environment for value investment strategies.”
