Greenlight Misses on Q4 Earnings, Grows Y/Y - Analyst Blog

By
A A A


Greenlight Capital Re, Ltd. ( GLRE ) reported fourth-quarter 2013 net earnings per share of $2.22, missing the Zacks Consensus Estimate by a couple of cents. However, earnings rebounded from the year-ago loss of $1.65 per share.

The underwriting portfolio's return to profit and growth in investing operations mainly contributed to the year over year upside.

During fourth-quarter 2013, gross written premiums increased to $124.8 million from $124 million in the year-ago period. Greenlight's net premiums earned stood at $141.5 million, up from $118.6 million in the fourth-quarter of 2012.

Underwriting income of Greenlight came in at $7.9 million, rebounding from an underwriting loss of $5.8 million in the prior-year period. The improvement was driven by profitable performance in the core operations including Florida homeowners, non-standard auto liability and employer stop-loss, and catastrophe retro.

Greenlight reported net investment gains of 6.6% in the reported quarter, rebounding from a net investment loss of 4.4% in the year-ago period.

Full Year Highlights

Greenlight reported full-year 2013 net earnings per share of $6.01, up from the year-ago earnings of 39 cents per share.

Total revenue for full-year 2013 came in at $765.1 million, up from $545.4 million in 2012.

Gross premiums written for full-year 2013 increased to $535.7 million from $427.8 million in 2012. Net earned premiums stood at $547.9 million compared with $466.7 million in the year-ago quarter.

Underwriting income came in at $37.5 million, rebounding from an underwriting loss of $42.6 million in 2012. As a result, combined ratio for full-year 2013 improved 1580 basis points year over year to 97.1%.

Financial Position

At the end of Dec 31, 2013, cash and cash equivalents stood at $1.3 billion, up from $1.2 billion as of Dec 31, 2012. Greenlight exited 2013 with total assets worth $3.1 billion, an improvement from $2.7 billion as of Dec 31, 2012. Shareholder equity totaled $1.1 billion against $821.7 million at the end of 2012.

As of Dec 31, 2013, book value per share stood at $27.91 versus $22.01 as of Dec 31, 2012.

Performance of Other Insurers

Old Republic International Corporation ( ORI ) reported fourth-quarter 2013 operating net income of 33 cents per share, which outpaced the Zacks Consensus Estimate of 18 cents by 83.3%.

The Travelers Companies Inc. ( TRV ) reported operating net earnings of $2.68 per share in the fourth quarter of 2013, surpassing the Zacks Consensus Estimate by 23.5%.

ACE Limited ( ACE ) reported operating net earnings of $2.39 per share in the fourth quarter of 2013, surpassing the Zacks Consensus Estimate by 19.5%.

Zacks Rank

Greenlight currently carries a Zacks Rank #1 (Strong Buy).



ACE LIMITED (ACE): Free Stock Analysis Report

GREENLIGHT CAP (GLRE): Free Stock Analysis Report

OLD REP INTL (ORI): Free Stock Analysis Report

TRAVELERS COS (TRV): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: ACE , GLRE , ORI , TRV

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

13,435,477
  • $15.54 ▲ 1.04%
12,854,421
  • $14.955 ▲ 5.09%
11,949,632
  • $96.33 ▲ 1.17%
10,688,588
  • $4.49 ▲ 2.75%
9,874,266
  • $67.612 ▲ 1.92%
9,723,848
  • $48.4729 ▲ 3.13%
8,400,246
  • $54.53 ▼ 0.78%
7,411,244
  • $15.995 ▲ 0.16%
As of 7/14/2014, 10:20 AM