Greenlight Capital Re (GLRE) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $35.2 million, up $21.8 million year-over-year, with EPS of $1.01 versus $0.39 last year, driven by strong investment performance from Solasglas.

• Gross written premiums were $168.3 million, down 8% due to non-renewed contracts, but up 3.3% excluding those contracts; net premiums earned fell 6.9% to $151.9 million.

• Fully diluted book value per share grew 6.1% in Q3 and 11.8% year-to-date, reaching $18.72.

• A.M. Best affirmed the A- rating and upgraded outlook to positive in October 2024.

• Underwriting income declined by $8.3 million due to higher loss and expense ratios.

Financial highlights

• Combined ratio of 95.9% for Q3, marking the eighth consecutive quarter of underwriting profit, but up from 91.2% last year.

• Total revenues for Q3 2024 were $188.0 million, up from $166.9 million in Q3 2023.

• CAT losses totaled $14.1 million in Q3, contributing 9.3% to the combined ratio, including $7.5 million from Hurricane Helene.

• Favorable prior year loss development improved the combined ratio by 3.1 percentage points.

• $82 million in cash generated from operations in the first three quarters of 2024.

Outlook and guidance

• Market conditions for reinsurance remain attractive with strong discipline and no material increase in capacity; management expects continued restructuring and repricing in property reinsurance.

• Confident in positioning for the critical 1/1 renewal season.

• Anticipates further rate increases and tightening terms in US casualty; interest rate cuts could lower interest expense but also reduce interest income.

• Monitoring geopolitical risks and macroeconomic developments, including US elections and central bank actions.