Greenlight Capital Re reported a net loss of US$5.7 million in the first quarter of 2022. This compared to net income of $6.5 million during the same period last year.
Chief executive officer Simon Burton said the “first quarter results were impacted by exposure to the Russian-Ukrainian conflict from our growing short-tailed specialty book that is otherwise well-positioned in the improving underwriting environment.”
The reinsurer’s underwriting results for the quarter included $13.6 million of losses attributed to Russia’s war in Ukraine. “If this conflict is prolonged, we may incur additional losses in future periods,” Greenlight Re said.
The losses related mainly to marine, energy, political violence, and terrorism (MEPVT) policies and whole account contracts. Greenlight Re said it has purchased excess of loss reinsurance to reduce its net MEPVT exposure.
The company’s first-quarter investment income of $7.7 million was down from $18.7 million year on year.
“We generated a 1.7% investment return from the Solasglas fund in the first quarter and are well-positioned for the inflationary headwinds affecting the economy,” said David Einhorn, chairman of the board of directors. “We are maintaining a cautious view to the equity markets, as it appears likely that the 13-year-old bull market has come to an end.”
Greenlight Re’s fully diluted book value per share decreased by $0.34, or 2.4%, to $13.65.
Burton said in April the reinsurer “continued to make progress in growing our operations with the launch of Greenlight Innovation Syndicate 3456”.
The syndicate received Lloyds’ approval to commence underwriting on 1 April and will provide insurance capacity to insurtechs within Greenlight Re’s portfolio of partnerships.
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