GRAND CAYMAN, Cayman Islands, Nov. 2, 2010 (GLOBE NEWSWIRE) -- Greenlight Capital Re, Ltd. (Nasdaq:GLRE) today announced financial results for the third quarter ending September 30, 2010. Greenlight Re reported a net income of $29.0 million for the third quarter of 2010 compared to net income of $32.3 million for the same period in 2009. The fully diluted earnings per share were $0.78 for the third quarter of 2010, compared to $0.88 for the same period in 2009.
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."
Highlights of Greenlight Re's performance for the third quarter and nine months ended September 30, 2010 include:
- 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 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."
Conference Call Details
Greenlight Re will hold a live conference call to discuss its financial results for the third quarter of 2010 on Wednesday, November 3, 2010 at 9:00 a.m. Eastern time. The conference call title is Greenlight Capital Re, Ltd. Third Quarter 2010 Earnings Call.
To participate, please dial in to the conference call at:
The conference call can also be accessed via webcast at:
A telephone replay of the call will be available from 11:00 a.m. Eastern time on November 3, 2010 until 9:00 a.m. Eastern time on November 17, 2010. The replay of the call may be accessed by dialing 1-877-344-7529 (U.S. toll free) or 1-412-317-0088 (international), access code 445483. An audio file of the call will also be available on the Company's website, www.greenlightre.ky.
Fully diluted adjusted book value per share is a non-GAAP measure and represents basic adjusted book value per share combined with the impact from dilution of share based compensation including in-the-money stock options as of any period end. Book value is adjusted by subtracting the amount of the non-controlling interest in joint venture from total shareholders' equity to calculate adjusted book value. We believe that long term growth in fully diluted adjusted book value per share is the most relevant measure of our financial performance. In addition, fully diluted adjusted book value per share may be of benefit to our investors, shareholders and other interested parties to form a basis of comparison with other companies within the reinsurance industry.
This news release contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of the Company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market fluctuations, trends in insured and paid losses, catastrophes, regulatory and legal uncertainties and other factors described in our annual report on Form 10-K filed with the Securities Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Greenlight Capital Re, Ltd.
Greenlight Re ( www.greenlightre.ky ) is a NASDAQ listed company with A.M. Best "A-" (Excellent) rated specialist property and casualty reinsurance companies based in the Cayman Islands and Ireland. Greenlight Re provides a variety of custom-tailored reinsurance solutions to the insurance, risk retention group, captive and financial marketplaces. Established in 2004, Greenlight Re selectively offers customized reinsurance solutions in markets where capacity and alternatives are limited. With a focus on deriving superior returns from both sides of the balance sheet, Greenlight Re's assets are managed according to a value-oriented equity-focused strategy that complements the Company's business goal of long-term growth in book value per share.
The Greenlight Capital Re logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5571
The following table provides the ratios for the nine months ended September 30, 2010 and 2009:
CONTACT: Stanton Public Relations & Marketing Alex Stanton (212) 780-0701 email@example.com