Greenlight Re Announces Third Quarter 2016 Financial Results

GRAND CAYMAN, Cayman Islands, Nov. 03, 2016 (GLOBE NEWSWIRE) -- Greenlight Capital Re, Ltd. (NASDAQ:GLRE) today announced financial results for the third quarter ended September 30, 2016.  Greenlight Re reported net income of $30.0 million for the third quarter of 2016, compared to a net loss of $219.7 million for the same period in 2015.  The net income per share for the third quarter of 2016 was $0.80, compared to a net loss per share of $5.98 for the same period in 2015.

Fully diluted adjusted book value per share was $22.04 as of September 30, 2016, a 5.4% decrease from $23.29 per share as of September 30, 2015. 

"We are pleased to report positive performance from both our underwriting and investment operations during the third quarter," said Bart Hedges, Chief Executive Officer of Greenlight Re. "While we saw a slight reduction in our reported premiums written, primarily due to our non-renewal of certain Florida home-owners business, we continue to find attractive opportunities to grow profitably."

Financial and operating highlights for Greenlight Re for the third quarter and nine months ended September 30, 2016 include:
  • Gross written premiums of $128.2 million, a decrease from $134.6 million in the third quarter of 2015; net earned premiums were $112.8 million, an increase from $102.0 million reported in the prior-year period. 
  • Underwriting income of $0.6 million, compared to an underwriting loss of $31.7 million in the third quarter of 2015. 
  • A composite ratio for the nine months ended September 30, 2016 of 101.9% compared to 111.0% for the prior year period.  The combined ratio for the nine months ended September 30, 2016 was 105.3% compared to 115.5% for the prior year period.
  • A net investment gain of 3.1% on Greenlight Re's investment portfolio, compared to a net investment loss of 14.2% in the third quarter of 2015. For the first nine months of 2016 net investment income was $23.3 million, representing a gain of 2.1%, compared to a net investment loss of $236.5 million during the comparable period in 2015 when Greenlight Re reported a 16.9% loss.

On November 3, 2016 A.M. Best revised Greenlight Re's rating from "A" (Excellent) with a negative outlook to "A-" (Excellent) stable.   A.M. Best has indicated that the lower rating is the result of Greenlight Re's underwriting results falling short of A.M. Best's expectations but notes that the Company's risk-adjusted capital position remains robust.

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