Greenlight Capital Re, Ltd. has recently released its 10-K report, providing an in-depth look at its financial performance and operational overview. Greenlight Capital Re, Ltd. is a global specialty property and casualty reinsurer headquartered in the Cayman Islands, offering various property reinsurance products and services, including automobile physical damage, personal lines, commercial lines, and casualty reinsurance products such as general liability, motor liability, professional liability, and worker's compensation, among others. The company markets its products through reinsurance brokers.
In the 10-K report's ITEM 7, MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Greenlight Capital Re, Ltd. provided a detailed overview of its financial performance for the year ended December 31, 2023, compared to the prior year. The company reported a net income of $86.8 million for the year ended December 31, 2023, representing a significant increase of $61.5 million, or 243%, over the prior year. This increase was attributed to favorable reinsurance pricing conditions, lower losses from catastrophe and weather-related events, and a favorable rising interest rate environment for its cash and fixed maturity investments.
Key financial highlights for the year ended December 31, 2023, compared to the prior year, include: Gross premiums written of $636.8 million, marking a 13.1% increase Net premiums earned of $583.1 million, reflecting a 24.2% increase Net underwriting income of $32.0 million, compared to an underwriting loss of $10.7 million Total investment income of $66.1 million, a decrease of 4.2% Diluted earnings per share of $2.50, representing a 242% increase Fully diluted book value per share of $16.74, marking a 16.8% increase
The report also discussed the outlook and trends for the company, highlighting strong pricing improvements at the January 1, 2023 renewal season and throughout 2023, particularly in property catastrophe, aviation, war and terror, and marine markets. Additionally, the company addressed the impact of the global inflationary pressures on the (re)insurance industry and its strategies to manage these concerns and risks.
As a result of these announcements, the company's shares have moved 2.7% on the market, and are now trading at a price of $12.28. Check out the company's full 10-K submission here.
