Cayman Islands-domiciled reinsurer Greenlight Capital Re, Ltd. has reported a 28% increase in gross premiums written (GPW) for the fourth quarter of 2024 to $143.8 million, as the firm fell to an underwriting loss in the quarter due to the strengthening of reserves related to aviation losses from Russia’s invasion of Ukraine, and catastrophe losses.
The $18 million underwriting loss was driven by the strengthening of “Open Market” specialty reserves related to aviation losses from the ongoing conflict, and catastrophe losses including Hurricane Milton, the Jeju Air plane crash, and other marine and energy related events.
It compares to an underwriting gain of $11.8 million in Q4 2023, as the combined ratio deteriorated from 91.4% to 112.1%. The Q4 2024 combined ratio included 10.1% related to the Russia-Ukraine conflict, and 11.9% related to catastrophe events.
During the quarter, net premiums earned (NPE) increased by 7.8% to $148.1 million compared to Q4 2023’s $137.4 million.
The reinsurer’s total investment income for Q4 2024 was $2.6 million compared to Q4 2023’s $14.1 million.
All in all, Greenlight Re has reported a net loss of $27.4 million for Q4 2024, compared to net income of $17.6 million in Q4 2023.
Taking a look at the full year 2024 results, Greenlight Re reported GPW increase of 9.7% to $698.3 million compared to FY’23’s $636.8 million. NPE increased by 6.3% to $620 million from $583.1 million in FY’23.
The net underwriting loss reported for FY’24 was $8.2 million, compared to a net underwriting income of $32 million in 2023, driven again by the strengthening of the aforementioned reserves, catastrophe losses including the Baltimore Bridge collapse, Hurricanes Helene and Milton, the Jeju Air plane crash, and other marine events.
The combined ratio for 2024 included 2.4% related to the Russia-Ukraine conflict, and 9.3% related to catastrophes, reported at 101.4%, compared to 94.5% in FY’23.
Total investment income for FY’24 hit $79.6 million, compared to $72.1 million in FY’23.
Meanwhile, net income for 2024 was reported at $42.8 million, down on the $86.8 million reported in 2023.
Greg Richardson, Chief Executive Officer of Greenlight Re, stated, “While our financial results for the fourth quarter and full year 2024 fell short of our expectations, we are proud of what we have accomplished during the year in terms of strengthening our organization, processes, and balance sheet. We are well positioned to deliver shareholder value in 2025 and beyond.”
David Einhorn, Chairman of the Board of Directors, said, “The fourth quarter was challenging for our investment program post U.S. election results. However, Solasglas’ 9.8% return for the full-year 2024 was solid in light of our conservative positioning, with a year-ending net exposure of 33%.”
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