Greenlight Re has announced a net loss of $18.5 million for the third quarter of 2022, stating that Hurricane Ian loss, while manageable, overshadowed the significant progress the company has made in its underwriting operations.
This has widened somewhat compared to a net loss of $13.9 million in Q3 of 2021. Greenlight Re also posted a combined ratio of 115.4%, compared to 109.3% in Q3 of 2021.
The company reported a total investment income of $11.6 million, compared to $4.1 million in Q3 of 2021; and a decrease in fully diluted book value per share of $0.55, or 3.9%, to $13.55.
Gross premiums written in Q3 of 2022 were $155.1 million, compared to $128.7 million in Q3 of 2021.
Greenlight notes that this $26.4 million, or 20.5% increase relates primarily to growth in personal property, general liability, and financial and other specialty business, including premiums underwritten by the company’s Innovations partners.
The company suggests that its decision to reduce its exposure to personal motor and workers’ compensation risks partially offset this increase. Meanwhile, net premiums earned were $121.9 million in Q3 of 2022, a decrease from $135.5 million in the comparable 2021 period.
Greenlight incurred a net underwriting loss of $18.9 million for the quarter, including $19.5 million of losses estimated from Hurricane Ian and $3.2 million from Typhoons Nanmadol and Hinnamnor.
By comparison, the equivalent period in 2021 reported an underwriting loss of $12.6 million, which included $25.9 million of catastrophe losses from Hurricane Ida, the European floods and hailstorms, and South African riots.
Greenlight adds that underwriting loss for Q3 2022 also included $6.1 million of expense relating to deposit-accounted contracts.
Simon Burton, Chief Executive Officer of Greenlight Re, commented, “The combined impact of natural catastrophes, continued inflation, and rising interest rates have taken a considerable toll on reinsurers’ balance sheets.
“Our relatively modest book value per share decline of 3.9% in the quarter is a testament to the strength of our investment platform and risk management approach. Looking ahead, we are well-positioned to benefit from a market that continues to move in our favour.”
David Einhorn, Chairman of the Board of Directors, added, “We are pleased with the 3.6% return from the Solasglas fund despite most equity markets posting negative returns during the quarter. The Hurricane Ian loss, while manageable, overshadows the significant progress we have made in our underwriting operations.”
