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Dec 31, 2024
Greenlight Capital Re Q4 2024 Earnings Report
Greenlight Re reported a net loss and a higher combined ratio in Q4 2024 due to reserve strengthening and catastrophe losses.
Key Takeaways
Greenlight Re's Q4 2024 revenue reached $148.1 million, reflecting a 7.8% increase in net premiums earned. However, the company reported a net loss of $27.4 million due to reserve strengthening related to the Russia-Ukraine conflict and catastrophe losses, including Hurricane Milton and the Jeju Air crash. The combined ratio rose to 112.1%, compared to 91.4% in the prior year. Investment income was significantly lower at $2.6 million compared to $14.1 million in Q4 2023.
Net premiums earned increased by 7.8% to $148.1 million.
Net loss of $27.4 million, compared to a net income of $17.6 million in Q4 2023.
Combined ratio worsened to 112.1%, up from 91.4% in the prior year.
Total investment income declined to $2.6 million from $14.1 million in Q4 2023.
Forward Guidance
Greenlight Re expects improved underwriting performance in 2025, focusing on portfolio optimization and investment returns.
Positive Outlook
- Strong premium growth expected in specialty reinsurance segments.
- Portfolio restructuring aimed at reducing volatility in underwriting results.
- Continued focus on expanding the Innovations segment.
- Investment strategy adjusted to improve returns in 2025.
- Improved expense discipline expected to lower cost ratios.
Challenges Ahead
- Continued exposure to catastrophe losses may impact results.
- Potential challenges in achieving profitable underwriting margins.
- Geopolitical risks could create additional reserve strengthening needs.
- Investment market volatility remains a key risk factor.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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