Specialist property & casualty (P&C) insurer, Greenlight Re, has reported net income of $34.8 million for the fourth quarter of 2022, a substantial rise from $24.3 million from the fourth quarter of 2021.
Gross premiums written in Q4 were $127.4 million, compared to $125.1 million Q4 21. Greenlight Re states that the 1.8% increase, relates primarily to growth in personal property, general liability, and other specialty business, including premiums underwritten by the company’s Innovations partners.
However, net premiums earned saw a decrease from $135.9 million from the prior year period, to $111.4 million in Q4 22.
Elsewhere, Greenlight Re recognised net underwriting income of $6.5 million in the quarter, compared to $4.8 million from the prior year quarter.
The company also reported a combined ratio of 94.2% for Q4, compared to 96.4% in last years quarter.
For the full-year Greenlight Re reported net income of $25.3 million, compared to last years net income of $17.5 million.
Moreover, the company witnessed a $69.8 million decrease in net premiums earned for the full-year, as it fell from $539.2 million to $469.5 million.
The firm also reported a net underwriting loss for the full-year of $10.7 million, which equates to a combined ratio of 102.3%. The underwriting loss for the equivalent 2021 period was $5.2 million, representing a combined ratio of 100.9%.
Greenlight Re noted that the full-year underwriting loss was driven primarily by $13.6 million of losses related to the ongoing Ukraine & Russia conflict, as well as $25.7 million related to Hurricane Ian, Typhoon Nanmadol, and wildfires in Tennessee.
Simon Burton, Chief Executive Officer of Greenlight Re, said: “The past twelve months represent a watershed for Greenlight Re. We grew book value in 2022 amidst volatile investment and reinsurance markets, and in 2023 we are experiencing some of the best underwriting conditions we have ever seen. Our near to medium term prospects are excellent.”
David Einhorn, Chairman of the Board of Directors, commented: “Greenlight Re had a very strong fourth quarter, with gains in both underwriting and investing. The Solasglas fund returned 13.4% during the quarter and 25.3% in 2022, our second-best result ever. We are well-positioned going into 2023.”