Hedge fund-backed reinsurer Greenlight Re has reported a net income of $14.8 million for the first quarter of 2022, a huge increase compared to net income of $0.6 million from the second quarter of 2021.
Gross premiums written (GPW) in the quarter were $134.8 million, a 4.8% decrease compared to $141.6 million in the same period last year. The decrease relates primarily to the company’s decision to reduce its exposure to personal motor and workers’ compensation risks.
At the same time, net premiums earned were $110.2 million during Q2 22, a decrease from $132.5 million from Q2 21.
However, Greenlight Re’s net underwriting income for the second quarter of 2022 more than doubled to $9.3 million, compared to $4.6 million from the prior year quarter.
The company’s total investment income for the quarter increased more than eight-fold to $17.2 million, compared to total investment income of $2.0 million in the same period last year.
Additionally, the reinsurer’s combined ratio improved to 91.6% for the second quarter of 2022, compared to a combined ratio of 96.5% from last years second quarter.
For H1 2022, total investment income came in at $24.9 million, compared to income of $20.7 million equivalent incurred in the 2021 period. The investment income included $9.2 million of gains recognised in connection with the company’s Innovations-related investments.
Simon Burton, Chief Executive Officer of Greenlight Re, said: “We reported a strong quarter, with underwriting and investments each contributing to the overall 3.3% growth in book value per share. Our underwriting combined ratio of 91.6% is a solid result, and we are confident that our repositioned underwriting business will benefit from market conditions that continue to improve.”
David Einhorn, Chairman of the Board of Directors, added: “We had a successful quarter in both underwriting and investing despite the significant headwinds facing the industry. We generated a positive investment result in the first half of the year despite the worst start for equity markets in over 50 years.”
