Greenlight Capital Re, LtdGLRE incurred fourth-quarter 2017 loss of $1.02 per share, wider than the Zacks Consensus Estimate of a loss of 55 cents. Also, the bottom line compared unfavorably with $1.31 per share earned in the year-ago period.
Greenlight Reinsurance, Ltd. Price, Consensus and EPS Surprise
Reserve strengthening, investment loss and losses from the California wildfires weighed on fourth-quarter results.
Shares of the company lost about 6% in the last two trading sessions reflecting its underperformance.
Quarter in Detail
Operating revenues of $125 million missed the Zacks Consensus Estimate by 20.93%. Moreover, the top line declined 33.7% year over year.
Gross written premiums of $139 million decreased 6.6% year over year. Net earned premiums increased 3.3% year over year to $141.1 million.
Net investment loss was $16.2 million, comparing unfavorably with income of $52.9 million in the year-ago quarter.
Underwriting loss of $19.7 million compared unfavorably with underwriting income of $1.4 million in the prior-year quarter, attributable to $4.7 million loss, net of reinstatement premiums, stemming from the California wildfires.
For 2017, Greenlight Capital reported loss per share of $1.21 versus income of $1.20 earned in 2016.
Revenues of $645.7 million improved 9.7% over 2016 owing to higher premiums earned.
Total expenses of $690.5 million increased 27.6% over 2016 on higher loss and loss adjustment expenses, acquisition costs and general and administrative expenses.
Combined ratio of 108.6% deteriorated 500 basis points year over year.
Cash and cash equivalents were $1.5 billion as of Dec 31, 2017, improved from $1.2 billion as of Dec 31, 2016.
Total assets of $3.4 billion as of Dec 31, 2017 increased from $2.7 billion as of Dec 31, 2016.
Total liabilities of $2.5 billion deteriorated from $1.8 billion at 2016-end.
Shareholders' equity at 2017-end totaled $831.3 million, lowered from $874.2 million as of Dec 31, 2016.
Adjusted book value per share was $22.22 as of Dec 31, 2017, declining 5% from $23.38 as of Dec 31, 2016.
Greenlight Capital carries a Zacks Rank #5 (Strong Sell).
Performance of Other Insurers
Among other players from the insurance industry that have reported fourth-quarter earnings so far, the bottom line of The Progressive Corp. PGR , The Travelers Companies, Inc. TRV and RLI Corp. RLI beat the respective Zacks Consensus Estimate.
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