Business
Greenlight Re Announces Fourth Quarter and Year-End 2020 Financial Results
Net income for the quarter of $42.0 millionFully diluted book value per share increased 11.6% in the quarter to $13.42 at December 31, 2020 GRAND CAYMAN,
About this update from Greenlight Reinsurance, Ltd.
[{"type":"text","content":"Net income for the quarter of $42.0 millionFully diluted book value per share increased 11.6% in the quarter to $13.42 at December 31, 2020 GRAND CAYMAN, Cayman Islands, March 10, 2021 (GLOBE NEWSWIRE) -- Greenlight Capital Re, Ltd. (NASDAQ: GLRE) (“Greenlight Re” or the “Company”) today reported its 2020 fourth quarter and year-end financial results. The results included: Net income of $42.0 million, or $1.20 per share, compared to a net loss of $30.3 million, or $0.84 per share, in the fourth quarter of 2019.Combined ratio of 101.0%, compared to a combined ratio of 114.5% in the fourth quarter of 2019.Total investment income of $48.4 million, including $38.5 million of investment gains from the Solasglas fund.An increase in fully diluted book value per share of $1.39, or 11.6%, to $13.42. The following table summarizes the Company’s underwriting results for the fourth quarter of 2020 and 2019: Three months ended December 31 2020 2019 ($ in thousands)Net premiums written$117,725 $98,380 Net premiums earned120,457 108,623 Underwriting loss(1,142) (15,766)Combined ratio101.0% 114.5% Simon Burton, Chief Executive Officer of Greenlight Re, stated, “We had a strong overall quarter and grew book value per share by 11.6%. This growth was led by $38.5 million of gains generated by our investment in Solasglas, and we recognized a further $9.9 million of other investment income, driven primarily by our strategic and Innovations partnerships. The underwriting combined ratio of 101% includes a small loss from COVID, and caps a year during which our underwriting business showed tremendous resilience to the pressures of the pandemic and numerous natural catastrophes.” David Einhorn, Chairman of the Board of Directors, stated, “We reported an 8.4% investment gain in the Solasglas fund during the fourth quarter, driven primarily by strong performance in our long positions. We expect a global economic recovery as the pandemic subsides and are positioned for higher inflation, a strong housing market and rising interest rates.” Underwriting and investment results Fourth Quarter 2020 Gross written premiums in the fourth quarter of 2020 were $117.7 million, compared to $98.5 million in the fourth quarter of 2019. This increase was due primarily to increases in workers’ compensation and specialty business, as well as health premiums associated with ...