Greenlight Re’s Q2’24 underwriting profit declines on US SCS losses

Greenlight Capital Re, Ltd. has reported a dip in its combined ratio to 99.8% for the second quarter of 2024 compared to 96.2% a year earlier, as underwriting income decreased by $5.1 million year-on-year amid elevated losses from severe convective storms (SCS) in the US.

The Cayman Islands domiciled reinsurer notes that current-period catastrophe losses, primarily related to the US severe convective storms, added 8.4% to the combined ratio during Q2 2024.

Heightened losses from catastrophes saw the underwriting result fall from $5.4 million in Q2 2023 to $0.3 million in Q2 2024.

However, top line growth did occur for the firm, with gross premiums written increasing 9.1% to $169 million in Q2 2024 compared to $154 million in the comparative quarter. The increase was primarily due to growth in financial, general liability, and specialty lines.

At the same time, net premiums earned increased 13.2%, or $18.5 million to $158.4 million compared to Q2 2023’s $139 million, as the growth in premiums written during 2023 and 2024 continued to earn out, explains Greenlight Re.

Greenlight Re’s total investment income reported for Q2 2024 also fell year-on-year, to $12.6 million from $42.2 million last year. The firm explains that its investment in the Solasglas fund, managed by DME Advisors, returned 1.2%, representing net income of $4.3 million, while other investment income hit $8.2 million.

All in all, the reinsurer has posted Q2’24 net income of $8 million for Q2’24, down 84% on Q2 2023’s $49.9 million of reported net income.

Greg Richardson, Chief Executive Officer of Greenlight Re, stated, “This quarter Greenlight Re continued its measured growth by taking advantage of attractive opportunities. While our underwriting results were negatively impacted by U.S. severe convective storm losses from a single run-off contract, we are pleased with the performance of our overall book of business.”

David Einhorn, Chairman of the Board of Directors, said, “Solasglas had a positive result in a relatively uneventful quarter, with small gains in short and macro positions offset by a small loss in our long positions.”

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