By Chris Munro

March 11 - (The Insurer) - Greenlight Re’s Q4 2024 combined ratio deteriorated by 20.7 points year on year to 112.1% as its results were impacted by aviation loss prior-year reserve strengthening related to the Russia-Ukraine conflict, catastrophe losses including Hurricane Milton, the Jeju Air plane crash, and other marine- and energy- related events.

• CR deteriorates 20.7 points YoY to 112.1%

• Includes 10.1 points related to Russia-Ukraine conflict

• Also includes 11.9 points of other catastrophe losses

• GPW up 28.0% YoY to $143.8 million

The Cayman Islands-based (re)insurer's combined ratio for the fourth quarter of 2024 included 10.1 points related to the Russia-Ukraine conflict, and 11.9 points of catastrophe losses.

Its Q4 2024 current year loss ratio increased 13.4 points to 68.1 percent in Q4 2024.

The company’s prior-year reserve development ratio totalled 14.7% for the final three months of 2024, compared with 0.5% in the final quarter of 2023.

Greenlight Re fell to a net underwriting loss of $18.0 million in 2024’s fourth quarter, compared with underwriting income of $11.8 million in the prior-year period.

The company wrote gross premiums of $143.8 million in 2024’s fourth quarter, up 28.0% year on year.

Greenlight Re’s net premiums written totalled $131.3 million in Q4 2024, up from the prior-year period’s $105.3 million.

Its net premiums earned for the final three months of 2024 increased 7.8% compared with Q4 2023 to $148.1 million.

Net investment income totalled $11.4 million in Q4 2024, down from the prior year period’s $13.2 million.

The company fell to a net loss of $27.4 million for the final three months of 2024, compared with net profit of $17.6 million in Q4 2023.

Since the end of 2024, Greenlight Re has restructured its reportable segments into two distinct units: open market and innovations.

Its open market business posted a combined ratio of 111.1% in Q4 2024, compared with 90.9% in the prior-year period.

The unit’s underwriting income swung from $9.2 million in Q4 2023 to an underwriting loss of $14.2 million in 2024’s fourth quarter.

Open market GPW totalled $123.1 million in 2024’s fourth quarter, up from $77.5 million in Q4 2023, while the unit’s NPW grew from $72.1 million in Q4 2023 to $113.9 million in last three months of 2024.

The innovations combined ratio increased 8.7 points year on year to 102.1% in Q4 2024, while the unit’s underwriting income went from $1.5 million in 2023’s fourth quarter to a deficit of $0.4 million for the final three months of 2024.

Innovations GPW dipped to $20.7 million in Q4 2024, compared with the prior-year period’s $22.6 million.

The unit’s NPW totalled $17.4 million for the final three months of 2024, down from Q4 2023’s $21.0 million.

Greenlight Re CEO Greg Richardson said that while the company’s results for the fourth quarter of 2024 fell short of its expectations, the firm was proud of what it accomplished during the year in terms of strengthening its organization, processes, and balance sheet.

“We are well positioned to deliver shareholder value in 2025 and beyond,” Richardson declared.

David Einhorn, chairman of Greenlight Re’s board of directors, said: “The fourth quarter was challenging for our investment program post-U.S. election results.

“However, Solasglas’ 9.8% return for the full-year 2024 was solid in light of our conservative positioning, with a year-ending net exposure of 33%.”