Greenlight Re has 2nd quarter loss
(CNS Business): Greenlight Capital Re experienced its second straight quarterly loss for 2015 due to faltered investments, company leaders stated. The Cayman Islands based company announced its financial results this week, with a net loss of $39.6 million, compared to a net income of $109.6 million for the same period in 2014. An underwriting loss of $8.9 million more than reversed the underwriting profits of $5.6 million in Q2 2014, reportedly due to negative development on a contract in run-off.
On a per-share basis, Greenlight Re, once rated as a top leader in the captive insurance industry, experienced a loss of $1.06 for the second-quarter, compared to fully diluted net income per share of $2.89 for the same period last year. The property and casualty reinsurance service provider shares have declined 17% since the beginning of the year. Figures show the first-quarter loss was $24 million.
“We are pleased with the new business and relationships we have developed this year,” CEO Bart Hedges said. “Unfortunately, our second quarter results were impacted by a small loss in our investment portfolio and adverse development in a contract in run-off that negatively impacted our combined ratio.”
“Our investment portfolio continues to be defensively positioned as we remain cautious due to an uncertain investment environment,” added Chairman of the Board of Directors, David Einhorn in a statement. “While we are disappointed with the underwriting loss from legacy business this quarter, we remain encouraged by the current portfolio and new relationships.”
In the final minutes of trading on Monday, a release by the company stated that shares hit $27.15, a decline of 17% in the last 12 months, after slipping 3.1% in 2014. Greenlight Re had a trading volume of 299,278 shares.
The company opened its headquarters here in Cayman in 2004 and provides a variety of custom-tailored reinsurance solutions to the insurance, risk retention group, captive and financial marketplaces.
Category: Finance, Financial Services
