Greenlight reports fall in net income in Q3 2010

(CNS): Local reinsurance firm Greenlight Capital Re, Ltd. has announced a net income of $29 million for the third quarter of 2010 compared to net income of $32.3 million for the same period in 2009 in its latest financial results. Despite the decline in comparative income the firm said it was pleased with the continued “growth” in a “challenging pricing environment”. The Cayman Islands based firm reported fully diluted earnings per share were $0.78 for the third quarter of 2010, compared to $0.88 for the same period in 2009. The fully diluted adjusted book value per share was $19.87 as of September 30, 2010, a 14.1% increase from $17.41 per share as of September 30, 2009.

For the nine months ended September 30, 2010, net income was $34.3 million, compared to $152.3 million for the same period in 2009. On a fully diluted basis, net income per share was $0.92 for the nine months ended September 30, 2010, compared to $4.16 for the same period in 2009.
"We are pleased that our growth continues to come from focused opportunities identified by our underwriting team despite a challenging pricing environment," said David Einhorn, Chairman of the Board of Directors of Greenlight Re. "At the same time, our investment portfolio generated a reasonable return in the quarter."

Gross written premiums in the third quarter of 2010 were $151.2 million compared to $66.0 million in the same prior year period, while net earned premiums were $79.4 million during the third quarter of 2010 compared to $56.7 million in the comparable period in 2009., the firm revealed. The combined ratio for the nine months ended September 30, 2010 was 101.4% compared to 97.8% for the same period last year.

Net investment income in the third quarter of 2010 was $33.9 million, a return of 3.6% on the investment portfolio. This compares to $32.6 million in the third quarter of 2009, when the Company reported a 4.3% return on its investment portfolio. For the first nine months of 2010, net investment income was $39.7 million compared to $148.7 million during the comparable period in 2009.
"Our team continues to target attractive opportunities in select markets and has demonstrated success in attracting top tier clients and brokers," said Len Goldberg, Chief Executive Officer of Greenlight Re. "Looking at the broader market, we do not anticipate a turn in general pricing in the near future. We believe we are focused on the right sectors and are pleased with the quality of our underwriting portfolio."