GRAND CAYMAN, Cayman Islands, Feb. 22, 2011 (GLOBE NEWSWIRE) -- Greenlight Capital Re, Ltd. (Nasdaq:GLRE) today announced financial results for the fourth quarter and year ended December 31, 2010. Greenlight Re reported net income of $56.4 million for the fourth quarter of 2010 compared to net income of $57.3 million for the same period in 2009. For the fourth quarter of 2010, net income per share was $1.51, on a fully diluted basis compared to $1.55 for the same period in 2009.
Fully diluted adjusted book value per share as of December 31, 2010 was $21.39, a 12.9% increase from $18.95 per share as of December 31, 2009.
For the year ended December 31, 2010, net income was $90.6 million compared to net income of $209.5 million for the year ended December 31, 2009. The net income per share for 2010 was $2.44, on a fully diluted basis, compared to net income per share of $5.71 for 2009.
"Both the underwriting result and the investment result were adequate in 2010," said David Einhorn, Chairman of the Board of Directors of Greenlight Re. "The full year increase in gross written premium should carry forward into growth in earned premium in 2011, even as we have reduced our catastrophe exposure. We have added significantly to staff, complementing our service oriented model with additional senior professionals who will help us continue to develop deeper client relationships."
Financial and operating highlights for Greenlight Re in the fourth quarter and year ended December 31, 2010 include:
- Gross written premiums in the fourth quarter of 2010 were $107.8 million compared to $50.9 million in the fourth quarter of 2009, while net earned premiums were $103.6 million, an increase from $62.5 million reported in the fourth quarter of last year. For the full year 2010, gross written premiums were $414.9 million compared to $258.8 million in 2009, while net earned premiums were $287.7 million compared to $214.7 million in 2009.
- The combined ratio for 2010 was 102.8% an increase from a combined ratio of 96.5% in 2009.
- Net investment income reported in the fourth quarter was $64.3 million, a gain of 6.5% on the investment portfolio, compared to net investment income of $51.2 million, a 6.4% gain in the fourth quarter of 2009. For the full year 2010, net investment income was $104.0 million, an 11.0% gain, compared to net investment income of $199.9 million, a 32.1% gain in 2009.
"In 2010 Greenlight Re was able to expand our frequency-oriented portfolio and develop a presence in the European Union through our new subsidiary in Ireland," said Len Goldberg, Chief Executive Officer of Greenlight Re. "We continue to grow in a soft reinsurance market by finding niche opportunities and providing customized solutions for our clients. While we experienced adverse development on a discontinued motor contract, we did not suffer any catastrophe losses during the year. We believe that over time the performance of our underwriting portfolio will demonstrate key comparative advantages of our underwriting strategy."
Conference Call Details
Greenlight Re will hold a live conference call to discuss its financial results for the fourth quarter and year ended December 31, 2010 on Wednesday, February 23, 2011 at 9:00 a.m. Eastern time. The conference call title is Greenlight Capital Re, Ltd. Fourth Quarter and Year End 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 February 23, 2011 until 9:00 a.m. Eastern time on March 10, 2011. 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 448223. An audio file of the call will also be available on the Company's website, .
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.
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