Greenlight Re profits dive in 2014
Cayman Islands-based reinsurer Greenlight Re’s profits dived in 2014 as it declined to renew business it felt was inadequately priced.
Its profits fell to $109.6 million for the year ended December 31, 2014, compared with $225.7 million in 2013.
The reinsurer’s gross written premiums fell to $324 million in 2014, compared with $535.7 million in 2013, while its net earned premiums fell to $354.2 million, a decrease from $547.9 million reported for the prior year.
Greenlight Re’s combined ratio also deteriorated to 102.9 percent in 2014, compared with 97.1 percent for 2013, as it was impacted by the adverse development on prior years' contracts. Its underwriting income fell to $11.6 million, compared with $37.5 million for 2013.
"We are pleased with our progress and ability to attract new business in this competitive reinsurance market," said Bart Hedges, chief executive officer of Greenlight Re. "Overall, our 2014 premium numbers decreased due to the impact of not renewing certain business, which we believe was inadequately priced.
“Our combined ratio was modestly impacted by the effect of adverse development on prior years' contracts and the deleveraging effect of flat costs on reduced premiums."
David Einhorn, chairman of the board of directors, added: “In a persistently challenging reinsurance market, we have made progress finding new opportunities that we believe will bear favourable results. The company remains focused on generating income and preserving capital while we continue to enhance our infrastructure and seek new business."
