Greenlight Capital Re, Ltd. reported fourth-quarter 2013 net earnings per share of $2.22, missing the Zacks Consensus Estimate by a couple of cents. However, earnings rebounded from the year-ago loss of $1.65 per share.
The underwriting portfolio’s return to profit and growth in investing operations mainly contributed to the year over year upside.
During fourth-quarter 2013, gross written premiums increased to $124.8 million from $124 million in the year-ago period. Greenlight’s net premiums earned stood at $141.5 million, up from $118.6 million in the fourth-quarter of 2012.
Underwriting income of Greenlight came in at $7.9 million, rebounding from an underwriting loss of $5.8 million in the prior-year period. The improvement was driven by profitable performance in the core operations including Florida homeowners, non-standard auto liability and employer stop-loss, and catastrophe retro.
Greenlight reported net investment gains of 6.6% in the reported quarter, rebounding from a net investment loss of 4.4% in the year-ago period.
Full Year Highlights
Greenlight reported full-year 2013 net earnings per share of $6.01, up from the year-ago earnings of 39 cents per share.
Total revenue for full-year 2013 came in at $765.1 million, up from $545.4 million in 2012.
Gross premiums written for full-year 2013 increased to $535.7 million from $427.8 million in 2012. Net earned premiums stood at $547.9 million compared with $466.7 million in the year-ago quarter.
Underwriting income came in at $37.5 million, rebounding from an underwriting loss of $42.6 million in 2012. As a result, combined ratio for full-year 2013 improved 1580 basis points year over year to 97.1%.
At the end of Dec 31, 2013, cash and cash equivalents stood at $1.3 billion, up from $1.2 billion as of Dec 31, 2012. Greenlight exited 2013 with total assets worth $3.1 billion, an improvement from $2.7 billion as of Dec 31, 2012. Shareholder equity totaled $1.1 billion against $821.7 million at the end of 2012.
As of Dec 31, 2013, book value per share stood at $27.91 versus $22.01 as of Dec 31, 2012.
Performance of Other Insurers
Old Republic International Corporation (ORI - Snapshot Report) reported fourth-quarter 2013 operating net income of 33 cents per share, which outpaced the Zacks Consensus Estimate of 18 cents by 83.3%.
The Travelers Companies Inc. (TRV - Analyst Report) reported operating net earnings of $2.68 per share in the fourth quarter of 2013, surpassing the Zacks Consensus Estimate by 23.5%.
ACE Limited reported operating net earnings of $2.39 per share in the fourth quarter of 2013, surpassing the Zacks Consensus Estimate by 19.5%.
Greenlight currently carries a Zacks Rank #1 (Strong Buy).