{"id":669,"date":"2025-05-08T12:00:40","date_gmt":"2025-05-08T12:00:40","guid":{"rendered":"http:\/\/www.vsdia.com\/?p=669"},"modified":"2025-05-08T18:41:00","modified_gmt":"2025-05-08T18:41:00","slug":"greenlight-res-q125-net-income-rises-despite-catastrophes-driving-underwriting-loss","status":"publish","type":"post","link":"http:\/\/www.vsdia.com\/index.php\/2025\/05\/08\/greenlight-res-q125-net-income-rises-despite-catastrophes-driving-underwriting-loss\/","title":{"rendered":"Greenlight Re\u2019s Q1\u201925 net income rises despite catastrophes driving underwriting loss"},"content":{"rendered":"

Reinsurer Greenlight Re’s net income increased to $29.6 million in the first quarter of 2025, as a stronger investment result more than offset a $7.8 million underwriting loss amid elevated losses from catastrophes.<\/p>\n

\"Greenlight-Re\"Greenlight Re\u2019s underwriting performance weakened compared to the prior year, swinging from a $3.4 million underwriting profit in Q1 2024 to a $7.8 million loss this quarter.<\/p>\n

This deterioration was reflected in a higher combined ratio of 104.6%, up from 97.9% a year ago.<\/p>\n

Net losses and loss adjustment expenses (LAE) for the current year totalled $118.7 million, up from $103.9 million in Q1 2024.<\/p>\n

Additionally, prior year loss development added another $4.2 million, resulting in total net loss and LAE incurred of $122.9 million\u2014a year-over-year increase of nearly $13 million. This rise in loss activity, particularly from catastrophes, significantly eroded underwriting results.<\/p>\n

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Despite this, Greenlight Re remained profitable, driven by $40.5 million in total investment income, up from $31.4 million last year. The key contributor was the Solasglas investment portfolio, which generated $32.2 million on its own and delivered a 7.2% return for the quarter.<\/p>\n

On the premium side, gross premiums written rose 14.1% to $247.9 million, reflecting continued growth in underwriting activity. However, ceded premiums also increased to $28.5 million. After accounting for this, net premiums written stood at $219.4 million, up from $194.1 million in Q1 2024, a gain of $25.3 million.<\/p>\n

Greg Richardson, Chief Executive Officer of Greenlight Re, commented: “We delivered strong book value per share growth of 5.1% this quarter, driven by an outstanding return of 7.2% from our Solasglas investment portfolio despite challenging market conditions. These results more than offset the financial impact of the California wildfires, which contributed 14 combined ratio points for the quarter, in line with the preliminary loss estimates we previously disclosed.”<\/p>\n

David Einhorn, Chairman of the Board of Directors, said: “Our investment portfolio performed well during what appears to be the beginning of a bear market. We are positioning Solasglas to have low gross and net exposure as we ride out what should be a period of high volatility ahead of what we expect will be an improved investment opportunity set.”<\/p>\n

The post Greenlight Re’s Q1’25 net income rises despite catastrophes driving underwriting loss<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Reinsurer Greenlight Re’s net income increased to $29.6 million in the first quarter of 2025, as a stronger investment result more than offset a $7.8 million underwriting loss amid elevated losses from catastrophes. Greenlight Re\u2019s underwriting performance weakened compared to the prior year, swinging from a $3.4 million underwriting profit in Q1 2024 to a…<\/p>\n","protected":false},"author":1,"featured_media":671,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[9],"tags":[],"_links":{"self":[{"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/posts\/669"}],"collection":[{"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/comments?post=669"}],"version-history":[{"count":3,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/posts\/669\/revisions"}],"predecessor-version":[{"id":673,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/posts\/669\/revisions\/673"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/media\/671"}],"wp:attachment":[{"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/media?parent=669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/categories?post=669"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/tags?post=669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}