Greenlight Capital Re reported net income of US$14.8 million in the second quarter compared to $0.6 million during the same period last year.
The specialty property and casualty reinsurer improved its underwriting performance with underwriting income rising from $4.6 million to $9.3 million year on year. The reinsurer’s combined ratio improved by 4.9 points to 91.6%.
Greenlight Re’s investment income jumped from $2 million in the second quarter of 2021 to $17.2 million this year.
Simon Burton, chief executive officer of Greenlight Re, said in a press release, “We reported a strong quarter, with underwriting and investments each contributing to the overall 3.3% growth in book value per share.
“Our underwriting combined ratio of 91.6% is a solid result, and we are confident that our repositioned underwriting business will benefit from market conditions that continue to improve.”
Gross premiums written in the second quarter of 2022 were $134.8 million, compared to $141.6 million in the second quarter of 2021.
This $6.8 million, or 4.8%, decrease relates primarily to the company’s decision to reduce its exposure to personal motor and workers’ compensation risks. Partially offsetting this reduction was growth in personal property, general liability, and financial and other specialty business, including premium generated by the company’s innovations partners.
Net premiums earned were $110.2 million during the second quarter of 2022, a decrease from $132.5 million in the comparable 2021 period.
However, the shift in business mix to higher-margin lines of business improved the underwriting income, Greenlight Re said.
The company’s investment portfolio, managed by DME Advisors, returned 4.9%, representing income of $11.9 million from the Solasglas fund. Greenlight generated $5.3 million of other investment income, primarily from its innovations business investments, which supports technology innovators and their applications to insurance and reinsurance.
During the quarter, the reinsurer incurred other non-underwriting expenses of $6 million as a result of foreign exchange losses driven by the weakening of the pound sterling and investment losses incurred by Lloyd’s syndicates in which the company participates.
David Einhorn, chairman of the board of directors, said, “We had a successful quarter in both underwriting and investing despite the significant headwinds facing the industry.
“We generated a positive investment result in the first half of the year despite the worst start for equity markets in over 50 years,” he added.
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