Greenlight Capital Re, Ltd. reported a net income of US$29.6 million for the first quarter ended 31 March.
This was up from $27 million in the same period last year, despite a quarterly underwriting loss.
The Cayman Islands-based reinsurer saw its gross premiums written rise 14.1% to $247.9 million, while net premiums earned increased 4.3% to $168.5 million.
However, it reported a net underwriting loss of $7.8 million, compared to net underwriting income of $3.4 million in Q1 2024.
The combined ratio for the quarter climbed to 104.6%, up from 97.9% a year earlier.
Chief executive officer Greg Richardson said: “We delivered strong book value per share growth of 5.1% this quarter, driven by an outstanding return of 7.2% from our Solasglas investment portfolio despite challenging market conditions.
“These results more than offset the financial impact of the California wildfires, which contributed 14 combined ratio points for the quarter, in line with the preliminary loss estimates we previously disclosed.”
Total investment income rose to $40.5 million, up from $31.4 million in Q1 2024. Fully diluted book value per share increased 5.1% to $18.87.
David Einhorn, chairman of the board of directors, said: “Our investment portfolio performed well during what appears to be the beginning of a bear market.
“We are positioning Solasglas to have low gross and net exposure as we ride out what should be a period of high volatility ahead of what we expect will be an improved investment opportunity set.”
Greenlight Capital Re will host a live earnings call to discuss its results on 8 May at 9am Eastern Time.
