Cayman reinsurer Greenlight Re reported a net loss of $36.1 million for the second quarter of 2012 compared to a net loss of $16.0 million for the same period in 2011. Gross written premiums in the second quarter of 2012 were $84.0 million compared to $113.3 million in the second quarter of 2011, while net earned premiums were $130.0 million, an increase from $107.2 million reported in the second quarter of last year.
“There are signs that conditions are improving in the underlying insurance market, but we have yet to experience this in the reinsurance market, which remains quite competitive,” said Bart Hedges, chief executive officer of Greenlight Re. “We are maintaining our underwriting discipline as we continually assess new business opportunities in the US and Europe,” he added.
The company experienced a net investment loss of $36.9 million in the second quarter of 2012, representing a loss of 3.3 per cent to the company’s investment portfolio. However, for the first six months of 2012, net investment income was $34.7 million compared to a net investment loss of $55.6 million during the comparable period in 2011.
“During the second quarter of 2012, our investment portfolio gave back some of the gains we generated in the first quarter of the year,” said David Einhorn, chairman of the board of directors of Greenlight Re. “The company remains focused on its prudent, opportunistic underwriting approach in what remains a challenging reinsurance market,” he said.
The combined ratio for the six months ended 30 June, 2012 was 100.8 per cent compared to 102.1 per cent for the six months ended 30 June, 2011.