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GRAND CAYMAN, Cayman Islands, Feb. 22, 2011 (GLOBE NEWSWIRE) -- Greenlight Capital Re, Ltd. (Nasdaq:GLRE) today announced financial results for the fourth quarter and year ended December 31, 2010. Greenlight Re reported net income of $56.4 million for the fourth quarter of 2010 compared to net income of $57.3 million for the same period in 2009. For the fourth quarter of 2010, net income per share was $1.51, on a fully diluted basis compared to $1.55 for the same period in 2009.
Fully diluted adjusted book value per share as of December 31, 2010 was $21.39, a 12.9% increase from $18.95 per share as of December 31, 2009.
For the year ended December 31, 2010, net income was $90.6 million compared to net income of $209.5 million for the year ended December 31, 2009. The net income per share for 2010 was $2.44, on a fully diluted basis, compared to net income per share of $5.71 for 2009.
"Both the underwriting result and the investment result were adequate in 2010," said David Einhorn, Chairman of the Board of Directors of Greenlight Re. "The full year increase in gross written premium should carry forward into growth in earned premium in 2011, even as we have reduced our catastrophe exposure. We have added significantly to staff, complementing our service oriented model with additional senior professionals who will help us continue to develop deeper client relationships."
Financial and operating highlights for Greenlight Re in the fourth quarter and year ended December 31, 2010 include:
Gross written premiums in the fourth quarter of 2010 were $107.8 million compared to $50.9 million in the fourth quarter of 2009, while net earned premiums were $103.6 million, an increase from $62.5 million reported in the fourth quarter of last year. For the full year 2010, gross written premiums were $414.9 million compared to $258.8 million in 2009, while net earned premiums were $287.7 million compared to $214.7 million in 2009.
The combined ratio for 2010 was 102.8% an increase from a combined ratio of 96.5% in 2009.
Net investment income reported in the fourth quarter was $64.3 million, a gain of 6.5% on the investment portfolio, compared to net investment income of $51.2 million, a 6.4% gain in the fourth quarter of 2009. For the full year 2010, net investment income was $104.0 million, an 11.0% gain, compared to net investment income of $199.9 million, a 32.1% gain in 2009.
"In 2010 Greenlight Re was able to expand our frequency-oriented portfolio and develop a presence in the European Union through our new subsidiary in Ireland," said Len Goldberg, Chief Executive Officer of Greenlight Re. "We continue to grow in a soft reinsurance market by finding niche opportunities and providing customized solutions for our clients. While we experienced adverse development on a discontinued motor contract, we did not suffer any catastrophe losses during the year. We believe that over time the performance of our underwriting portfolio will demonstrate key comparative advantages of our underwriting strategy."