Greenlight reverts to profit as property leads growth & margin recovery

Greenlight Re returned to profits for the 2023 full-year accounting, leveraging increased property rates for growth and margin while avoiding the types of nat cat losses that had dogged the prior year. 

Gross written premiums of $636.8 million were up 13.1% year on year, including 32.8% growth in property, 12.9% growth in specialty and a milder 8.0% gain in casualty. The FY gain came despite an 11.8% y/y decrease in Q4 which management put to timing-related premium adjustments. 

Underwriting income swung to a $32 million gain versus the prior year loss, with the group combined ratio down 7.8 points to 94.5%. 

Management credited “lower catastrophe losses and favourable pricing in 2023, partially offset by strengthened reserves relating to prior years.” 

Performance ratios showed property underwriting, benefitting from the rate gain and reduced nat cat,  offsetting continued weak underwriting earnings in casualty. 

Casualty ended 2023 with a modest underwriting profit on a combined ratio of 98.5%, a 1.5 point improvement to 2022 that had been undercut by a fractional technical loss in Q4. 

The property line, in turn, took 9.5 points off its combined ratio to 90.7%, including a nearly 40 point reduction in the fourth quarter. 

Prior year development proved unfavourable to the tune of 1.9 ratio points for the full-year measure, including a fractional sum in Q4. Management did not attribute the new reserving by line, although ratio development and broader market trends hint casualty. 

Following a fractional decline in total investment income to $66.1 million, including a slashing in earnings at the group's own Solasglas fund, plus a boost to other income, FY2023 net profits for the group more than tripled to $86.8 million.   

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