Cites the combined impact of natural catastrophes, continued inflation and rising interest rate
Greenlight Capital Re has reported a net loss of $18.9m for the third quarter of 2022 and a combined ratio of 115.4%, compared to a combined ratio of 109.3% in the third quarter of 2021.
|Three months ended September 30|
|($ in thousands)|
|Gross premiums written||155,146||128,735|
|Net premiums earned||121,948||135,524|
|Underwriting income (loss)||(18,865||)||(12,578||)|
Simon Burton, chief executive officer of Greenlight Re, stated, “The combined impact of natural catastrophes, continued inflation, and rising interest rates has taken a considerable toll on reinsurers’ balance sheets.
“Our relatively modest book value per share decline of 3.9% in the quarter is a testament to the strength of our investment platform and risk management approach. Looking ahead, we are well-positioned to benefit from a market that continues to move in our favour.”
David Einhorn, chairman of the Board of Directors, said, “We are pleased with the 3.6% return from the Solasglas fund despite most equity markets posting negative returns during the quarter.
”The Hurricane Ian loss, while manageable, overshadows the significant progress we have made in our underwriting operations.”
Quarter marked by hurricanes and typhoons
The company incurred a net underwriting loss of $18.9m in the third quarter of 2022, including $19.5m of losses estimated from Hurricane Ian and $3.2m from Typhoons Nanmadol and Hinnamnor.
By comparison, the equivalent period in 2021 reported an underwriting loss of $12.6m, which included $25.9m of catastrophe losses from Hurricane Ida, the European floods and hailstorms, and South African riots.
The underwriting loss for the quarter also included $6m of expense relating to deposit-accounted contracts.