Greenlight Capital Re NASDAQ:GLRE, a company with dedicated casualty and property reinsurance companies based in the Cayman Islands and Ireland reported somewhat subdued results for the quarter.
The Cayman Islands-based reinsurer posted a net income of $60.7 million for the fourth quarter of 2017 with its fully diluted net income per share for the quarter standing at $1.60. The corresponding figures for the previous year 2013 were $83.9 million and $2.22.
A loss of $(4.6) million due to underwriting has been witnessed in this quarter whereas the income that was underwritten comes out to as $7.9 million in the fourth quarter of 2013.
The company witnessed a boom in the net investment as well with the gain of 5.3% on the Greenlight Re’s investment portfolio which is managed by DME AdvisorS.
The book value per share, fully diluted and adjusted, for the fourth quarter of December 2017 improved by 10.2% year on year to $30.76.
Greenlight Re continued to perform decently in the highly competitive reinsurance market. However, on the whole 2017 premium numbers saw a decline. This was on account of non-renewal of certain businesses, which the Company believes were inadequately priced. The gross written premiums for the quarter ended 31 December 2017 stood at $74.3 million, as against $124.8 million reported in the fourth quarter of 2013 while net earned premiums were at $75.2 million, down from $141.5 million earned in the corresponding period a year ago. Underwriting income too declined from $37.5 million reported in the year 2013 to $11.6 million, reported in 2017.
The combined ratio for the year ended December 31, 2014 was 102.9% compared to 97.1% for the year ended December 31, 2013. This ratio was moderately affected due to the adversative effect of improvement on the contacts affecting to prior years as also the effect of deleveraging of flat costs on lower premiums.
Net investment income for the year was $122.6 million, translating into a return of 8.7%, compared to a 19.6% return reported by Greenlight PE in 2014 resulting from a net investment income of $218.1 million.
Greenlight Re’s assets are managed in conformance with an equity-focused strategy that is not only value-oriented but also complements the Reinsurer’s long-term business goal and focus on growth in book value per share.
The NASDAQ listed company continues to maintain its focus on two aspects – preserving the Company’s assets and generating income from the same. At the same time the insurer continues to expand its infrastructure and enhance its business expanse. The Company, which offers an array of customized reinsurance solutions, to suit the needs of insurance, risk retention group, captive and financial marketplaces, has moved a step closer in identifying new opportunities that are expected to yield favorable results in the future.