We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Greenlight Capital (GLRE) Incurs Wider-Than-Expected Q4 Loss
Read MoreHide Full Article
Greenlight Capital Re, Ltd (GLRE - Free Report) incurred fourth-quarter 2017 loss of $1.02 per share, wider than the Zacks Consensus Estimate of a loss of 55 cents. Also, the bottom line compared unfavorably with $1.31 per share earned in the year-ago period.
Greenlight Reinsurance, Ltd. Price, Consensus and EPS Surprise
Reserve strengthening, investment loss and losses from the California wildfires weighed on fourth-quarter results.
Shares of the company lost about 6% in the last two trading sessions reflecting its underperformance.
Quarter in Detail
Operating revenues of $125 million missed the Zacks Consensus Estimate by 20.93%. Moreover, the top line declined 33.7% year over year.
Gross written premiums of $139 million decreased 6.6% year over year. Net earned premiums increased 3.3% year over year to $141.1 million.
Net investment loss was $16.2 million, comparing unfavorably with income of $52.9 million in the year-ago quarter.
Underwriting loss of $19.7 million compared unfavorably with underwriting income of $1.4 million in the prior-year quarter, attributable to $4.7 million loss, net of reinstatement premiums, stemming from the California wildfires.
Full-Year Highlights
For 2017, Greenlight Capital reported loss per share of $1.21 versus income of $1.20 earned in 2016.
Revenues of $645.7 million improved 9.7% over 2016 owing to higher premiums earned.
Total expenses of $690.5 million increased 27.6% over 2016 on higher loss and loss adjustment expenses, acquisition costs and general and administrative expenses.
Combined ratio of 108.6% deteriorated 500 basis points year over year.
Financial Update
Cash and cash equivalents were $1.5 billion as of Dec 31, 2017, improved from $1.2 billion as of Dec 31, 2016.
Total assets of $3.4 billion as of Dec 31, 2017 increased from $2.7 billion as of Dec 31, 2016.
Total liabilities of $2.5 billion deteriorated from $1.8 billion at 2016-end.
Shareholders’ equity at 2017-end totaled $831.3 million, lowered from $874.2 million as of Dec 31, 2016.
Adjusted book value per share was $22.22 as of Dec 31, 2017, declining 5% from $23.38 as of Dec 31, 2016.
Zacks Rank
Greenlight Capital carries a Zacks Rank #5 (Strong Sell).
Among other players from the insurance industry that have reported fourth-quarter earnings so far, the bottom line of The Progressive Corp. (PGR - Free Report) , The Travelers Companies, Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Greenlight Capital (GLRE) Incurs Wider-Than-Expected Q4 Loss
Greenlight Capital Re, Ltd (GLRE - Free Report) incurred fourth-quarter 2017 loss of $1.02 per share, wider than the Zacks Consensus Estimate of a loss of 55 cents. Also, the bottom line compared unfavorably with $1.31 per share earned in the year-ago period.
Greenlight Reinsurance, Ltd. Price, Consensus and EPS Surprise
Greenlight Reinsurance, Ltd. Price, Consensus and EPS Surprise | Greenlight Reinsurance, Ltd. Quote
Reserve strengthening, investment loss and losses from the California wildfires weighed on fourth-quarter results.
Shares of the company lost about 6% in the last two trading sessions reflecting its underperformance.
Quarter in Detail
Operating revenues of $125 million missed the Zacks Consensus Estimate by 20.93%. Moreover, the top line declined 33.7% year over year.
Gross written premiums of $139 million decreased 6.6% year over year. Net earned premiums increased 3.3% year over year to $141.1 million.
Net investment loss was $16.2 million, comparing unfavorably with income of $52.9 million in the year-ago quarter.
Underwriting loss of $19.7 million compared unfavorably with underwriting income of $1.4 million in the prior-year quarter, attributable to $4.7 million loss, net of reinstatement premiums, stemming from the California wildfires.
Full-Year Highlights
For 2017, Greenlight Capital reported loss per share of $1.21 versus income of $1.20 earned in 2016.
Revenues of $645.7 million improved 9.7% over 2016 owing to higher premiums earned.
Total expenses of $690.5 million increased 27.6% over 2016 on higher loss and loss adjustment expenses, acquisition costs and general and administrative expenses.
Combined ratio of 108.6% deteriorated 500 basis points year over year.
Financial Update
Cash and cash equivalents were $1.5 billion as of Dec 31, 2017, improved from $1.2 billion as of Dec 31, 2016.
Total assets of $3.4 billion as of Dec 31, 2017 increased from $2.7 billion as of Dec 31, 2016.
Total liabilities of $2.5 billion deteriorated from $1.8 billion at 2016-end.
Shareholders’ equity at 2017-end totaled $831.3 million, lowered from $874.2 million as of Dec 31, 2016.
Adjusted book value per share was $22.22 as of Dec 31, 2017, declining 5% from $23.38 as of Dec 31, 2016.
Zacks Rank
Greenlight Capital carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among other players from the insurance industry that have reported fourth-quarter earnings so far, the bottom line of The Progressive Corp. (PGR - Free Report) , The Travelers Companies, Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>