GREENLIGHT CAPITAL RE LTD
For the period ended Dec 31, 2024. Filed Mar 10, 2025.
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FY2024 · Filed Mar 10, 2025
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Consolidated Results of Operations
The table below summarizes our consolidated operating results.
| 2024 | 2023 | Change | |
|---|---|---|---|
| Underwriting results: | |||
| Gross premiums written | $698,335 | $636,810 | $61,525 |
| Net premiums written | $621,265 | $594,048 | $27,217 |
| Net premiums earned | $619,954 | $583,147 | $36,807 |
| Net loss and LAE incurred: | |||
| Current year | (406,465) | (348,798) | (57,667) |
| Prior year (1) | (20,804) | (11,206) | (9,598) |
| Net loss and LAE incurred | (427,269) | (360,004) | (67,265) |
| Acquisition costs | (176,775) | (168,877) | (7,898) |
| Underwriting expenses | (22,857) | (19,587) | (3,270) |
| Deposit interest income (expense), net | (1,228) | (2,687) | 1,459 |
| Net underwriting income (loss) | (8,175) | 31,992 | (40,167) |
| Investment results: | |||
| Income from investment in Solasglas | 33,605 | 28,696 | 4,909 |
| Net investment income | 45,954 | 43,408 | 2,546 |
| Total investment income | 79,559 | 72,104 | 7,455 |
| Corporate and other expenses | (16,377) | (23,653) | 7,276 |
| Foreign exchange gains (losses) | (5,606) | 11,566 | (17,172) |
| Other income, net | — | 265 | (265) |
| Interest expense | (5,836) | (5,344) | (492) |
| Income tax expense | (749) | (100) | (649) |
| Net income | $42,816 | $86,830 | $(44,014) |
| Diluted earnings per share | $1.24 | $2.50 | $(1.26) |
| Underwriting ratios: | |||
| Current year attritional loss ratio | 56.3% | 54.9% | 1.4% |
| CAT loss ratio | 9.3% | 4.9% | 4.4% |
| Current year loss ratio | 65.6% | 59.8% | 5.8% |
| Prior year reserve development ratio | 3.4% | 1.9% | 1.5% |
| Loss ratio | 69.0% | 61.7% | 7.3% |
| Acquisition cost ratio | 28.5% | 29.0% | (0.5)% |
| Composite ratio | 97.5% | 90.7% | 6.8% |
| Underwriting expense ratio | 3.9% | 3.8% | 0.1% |
| Combined ratio | 101.4% | 94.5% | 6.9% |
1 The net financial impact associated with changes in the estimate of losses incurred in prior years, which incorporates earned reinstatement premiums assumed and ceded, adjustments to assumed and ceded acquisition costs, and deposit interest income and expense, was a loss of $21.8 million in 2024 (2023: $15.7 million).
Consolidated Results of Operations for 2024 compared to 2023
Basic book value per share increased by $1.39 per share, or 8.2%, to $18.26 per share from $16.87 per share at December 31, 2023. Fully diluted book value per share increased by $1.21 per share, or 7.2%, to $17.95 per share from $16.74 per share at December 31, 2023.
For the year ended December 31, 2024, net income decreased by $44.0 million to $42.8 million, driven mainly by the following:
Underwriting income: Decreased by $40.2 million due to 6.9 percentage points increase in our combined ratio, driven predominantly by an increase in current year attritional and CAT loss ratios. Refer to the “Results by Segment” section of the MD&A for further discussion and analysis.
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Investment income: Increased by $7.5 million primarily driven by an increase in income from our investment in Solasglas, which reported a gain of $33.6 million in 2024, compared to $28.7 million in 2023. Solasglas generated a net return of 9.8% for the year ended December 31, 2024, compared to a net return of 9.4% for the same period in 2023. Additionally, we earned additional investment income on funds withheld by third party Lloyd’s syndicates. The Lloyd’s syndicates invest a portion of these funds in fixed maturity securities, equities, and investment funds. We record our share of the investment income and fair value adjustments on these securities when the syndicates report them to us, generally on a quarter in arrears. See Note 13 “Net Investment Income” of the consolidated financial financial statements for further details.
Corporate and other expenses: Decreased by $7.3 million mainly due to non-recurring severance costs included in 2023, including $4.3 million relating to the separation agreement entered with our former CEO, and lower incentive compensation costs in light of the Company’s weaker performance in 2024. This was partially offset by the increase in other non-underwriting personnel and overhead costs in addition to technology investment to support the business growth.
Foreign exchange gains (losses): $5.6 million foreign exchange losses for 2024, compared to $11.6 million foreign exchange gains for 2023, driven mainly by a weaker pound sterling movement against the U.S. dollar in 2024.
Interest expense: Increased by $0.5 million primarily due to unfavorable fair value movement on the interest rate swaps used to partially hedge the Term Loans; offset partially by lower interest expense driven by a decrease in the average outstanding Term Loans balance in 2024.
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