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GreenLight Capital's (GLRE) Q4 Loss Widens, Premiums Down

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Greenlight Capital Re, Ltd .'s GLRE fourth-quarter 2018 operating loss per share of $2.25 was wider than the Zacks Consensus Estimate by 0.9%. The reported figure also deteriorated from the year-ago quarter's loss of $1.02. This downside was mainly due to Hurricane Michael and the California wildfires.

Quarterly Operational Update

Gross written premiums for the reported quarter dipped 2.8% to $135.1 million from the prior-year quarter's level due to exposure to multi-line casualty contract.

In the quarter under review, net premiums earned were $119.6 million, down 15.2% year over year.

The company's net realized investment losses were $56.4 million, wider than the prior-year quarter's figure by 248%.

Full-Year Update

As of Dec 31, 2018, gross written premiums were $567.5 million, up 18.1% year over year.

Net earned premiums totaled $508.4 million, down 18.8% year over year.

The company incurred a new investment loss of $323.1 million against the prior-year quarter's net investment income of $20.2 million.

Net loss was $9.74 per share, worse than 2017's figure by 705% year over year.

Financial Position

As of Dec 31, 2018, the company's total investments plunged 79.2% year over year to $283 million.

At fourth-quarter end, the company's total assets were $1.4 billion, down 57.2% from the tally at 2017 end.

Cash and cash equivalents decreased 33.2% year over year as of Dec 31, 2018.

Total equity in 2018 dropped 43.4% year over year.

Full-Year Highlights

For 2018, consolidated gross premiums written summed $957.3 million, up 9.4% year over year. Net premiums earned were $818.9 million, up 10.9% year over year.

For the full year, net realized investment losses were $43.5 million versus the net realized investment gains of $16.4 million, which in turn, reflects market volatility.

Zacks Rank

Greenlight Capital carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Performance of Other Insurers

Among other players from the insurance industry, having already posted fourth-quarter earnings, the bottom-line results of RLI Corp. RLI , Arch Capital Group Ltd. ACGL and Cincinnati Financial Corporation CINF surpassed the respective Zacks Consensus Estimate.

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


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

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