Greenlight Capital Re (GLRE) Q2 2024 earnings summary

Executive summary

• Gross written premiums rose 9.1% year-over-year to $169 million in Q2 2024, with net income of $8 million ($0.23 per diluted share), down from $49.9 million ($1.32 per share) in Q2 2023.

• Net underwriting income declined to $0.3 million from $5.4 million, impacted by U.S. convective storm losses on a run-off contract.

• Fully diluted book value per share increased 1.5% sequentially and 5.4% since year-end to $17.65.

• Combined ratio was 99.8%, impacted by U.S. convective storm losses, which added 8.4 percentage points.

• Portfolio excluding storm losses performed in line with expectations, and market conditions remain favorable, especially in property and specialty lines.

Financial highlights

• Net written premiums increased 6.2% to $154.1 million; net premiums earned rose 13.2% to $158.4 million year-over-year.

• Total net investment income was $12.6 million, compared to $42.2 million in Q2 2023; Solasglas fund returned 1.2%.

• Combined ratio deteriorated to 99.8% from 96.2% year-over-year, mainly due to higher acquisition costs and catastrophe losses.

• Shareholders' equity increased to $634.0 million from $596.1 million at year-end.

• Net income margin was 5.0% in Q2 2024, down from 35.7% in Q2 2023.

Outlook and guidance

• Ongoing exposure to U.S. convective storms is rapidly declining, and the renewal season was in line with expectations.

• Attractive growth opportunities are seen in property and specialty classes, while caution is exercised in casualty lines.

• Industry focus is on North Atlantic hurricane season and potential reserve strengthening in casualty classes.

• Terms and conditions expected to depend on hurricane activity and reserve developments through 2024.

• Management remains focused on measured growth and capitalizing on attractive market opportunities.