Greenlight Re sinks to $43mn Q1 net loss

Hedge fund-backed reinsurer Greenlight Re expects to incur a net loss of between $38 million and $43 million for the first quarter of 2020.

This loss is driven by an investment loss in the Solasglas Investments, LP fund of $42.2 million, representing a loss of 8.1% for the quarter as previously reported.

Net premiums written for the quarter have been estimated at between $107 million and $112 million. Net premiums earned for the quarter stand at between $109 million and $114 million.

Greenlight Re has also estimated an underwriting loss of $1 million to an underwriting gain of $4 million for the quarter. A composite ratio of between 96% and 100% and a combined ratio of between 97% and 101% are expected.

Greenlight Re announced a fourth quarter net loss of $30.3 million for 2019, driven by a $14.2 million catastrophe loss related to typhoons Hagibis and Faxai. The company recently determined that the best course of action is to continue with its existing business plan.

After ratings agency A.M. Best turned negative on Greenlight Re in the summer of 2019, driven by consistently poor underwriting results, the hedge fund-backed reinsurer commenced a strategic review.

Source: Reinsurance News