In its Q1 2023 results, Greenlight Re has reported that gross written premiums (GWP) increased 27.8% to $186.5 million, which the firm attributed to new opportunities and improved pricing on property and general liability business, as well as several new specialty contracts bound during the quarter.
Greenlight Re’s net income in Q1 increased to $5.9 million, a substantial rise when compared to the net loss of $5.7 million recorded in the same quarter of 2022.
The firm’s net premiums earned jumped 13.3% to $142.6 million, while Q1 underwriting income was $0.4 million, up considerably compared to a loss of $7.7 million in Q1 of 2022.
Meanwhile, Greenlight Re’s combined ratio for Q1 of 2023 levelled out at 99.8%, compared to a combined ratio of 106.2% in Q1 of 2022.
Total investment income stood at $5.2 million, down slightly compared to the $7.7 million reported in the Q1 of 2022. Greenlight Re suggests that its investment in the Solasglas fund, managed by DME Advisors, returned (1.1)%, representing a loss of $3.1 million.
The firm reported $8.4 million of other investment income, primarily from interest earned on its restricted cash and cash equivalents.
Greenlight Re also saw other non-underwriting income of $7.1 million during Q1 of 2023, due primarily to foreign exchange gains driven by the strengthening of the pound sterling and investment income on the funds withheld by the Lloyd’s syndicates.
The current period loss ratio (59.4%) included 6.2 million, or 4.3 percentage points, of losses related to the Turkey earthquake, the New Zealand Cyclone Gabrielle and U.S. convective storms that occurred during Q1 of 2023.
Simon Burton, Chief Executive Officer of Greenlight Re, commented, “During the first quarter we executed our strategy of expanding our portfolio into exceptional market conditions, with an increase in net written premium of 25%.
“Although our combined ratio improved more than 6% compared to last year, adverse prior year development prevented the impacts of the favorable market from flowing through this quarter.
“We expect the impact of our underwriting strategy and rate increases to flow through as improved combined ratios as 2023 progresses.”
David Einhorn, Chairman of the Board of Directors, said, “The first quarter was a challenging investment environment, as many investments that performed well in 2022, reversed in early 2023.
“The Solasglas investment portfolio had a (1.1)% return during the quarter. We repositioned the portfolio from bearish to neutral in response to the banking bailouts and likely shift in Fed policy from fighting inflation to financial stability.”
