Greenlight Capital Re
Greenlight Re Announces Fourth Quarter and Year End 2010 Financial Results
Greenlight Capital Re 22.02.2011 23:35 --------------------------------------------------------------------------- GRAND CAYMAN, Cayman Islands, 2011-02-22 23:35 CET (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: U.S. toll free 1-877-317-6789 International 1-412-317-6789 The conference call can also be accessed via webcast at: http://www.talkpoint.com/viewer/starthere.asp?Pres=134280 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, www.greenlightre.ky . Regulation G 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. Forward-Looking Statements 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 GREENLIGHT CAPITAL RE, LTD. CONSOLIDATED BALANCE SHEETS December 31, 2010 and 2009 (expressed in thousands of U.S. dollars, except per share and share amounts) 2010 2009 ----------------------- Assets Investments Debt instruments, trading, at fair value $15,610 $95,838 Equity securities, trading, at fair value 839,921 593,201 Other investments, at fair value 196,490 141,561 ----------------------- Total investments 1,052,021 830,600 Cash and cash equivalents 45,540 31,717 Restricted cash and cash equivalents 977,293 590,871 Financial contracts receivable, at fair value 28,701 30,117 Reinsurance balances receivable 109,567 82,748 Loss and loss adjustment expenses recoverable 11,976 7,270 Deferred acquisition costs, net 87,389 34,401 Unearned premiums ceded 7,424 6,478 Notes receivable 14,205 15,424 Other assets 3,886 4,754 ----------------------- Total assets $2,338,002 $1,634,380 ======================= Liabilities and shareholders' equity Liabilities Securities sold, not yet purchased, at fair value $726,737 $570,875 Financial contracts payable, at fair value 22,746 16,200 Due to prime brokers 273,071 ? Loss and loss adjustment expense reserves 186,467 137,360 Unearned premium reserves 234,983 118,899 Reinsurance balances payable 20,164 34,301 Funds withheld 22,887 14,711 Other liabilities 11,786 12,796 ----------------------- Total liabilities 1,498,841 905,142 ----------------------- Shareholders' equity Preferred share capital (par value $0.10; authorized, ? ? 50,000,000; none issued) Ordinary share capital (Class A: par value $0.10; 3,646 3,632 authorized, 100,000,000; issued and outstanding, 30,200,835 (2009: 30,063,893): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,949 (2009: 6,254,949) Additional paid-in capital 485,555 481,449 Non-controlling interest in joint venture 45,758 30,597 Retained earnings 304,202 213,560 ----------------------- Total shareholders' equity 839,161 729,238 ----------------------- Total liabilities and shareholders' equity $2,338,002 $1,634,380 ======================= GREENLIGHT CAPITAL RE, LTD. CONSOLIDATED STATEMENTS OF INCOME Years ended December 31, 2010, 2009 and 2008 (expressed in thousands of U.S. dollars, except per share and share amounts) 2010 2009 2008 ------------------------------------ Revenues Gross premiums written $414,850 $258,818 $162,395 Gross premiums ceded (12,011) (13,276) (16,396) ------------------------------------ Net premiums written 402,839 245,542 145,999 Change in net unearned premium reserves (115,138) (30,862) (31,050) ------------------------------------ Net premiums earned 287,701 214,680 114,949 Net investment income (loss) 104,006 199,861 (126,126) Other income (expense), net (1,079) 4,538 ? ------------------------------------ Total revenues 390,628 419,079 (11,177) ------------------------------------ Expenses Loss and loss adjustment expenses incurred, 177,018 119,045 55,485 net Acquisition costs, net 102,645 69,232 41,649 General and administrative expenses 16,187 18,994 13,756 ------------------------------------ Total expenses 295,850 207,271 110,890 ------------------------------------ Net income (loss) before non-controlling 94,778 211,808 (122,067) interest and income tax expense Non-controlling interest in (income) loss (3,740) (2,312) 1,163 of joint venture ------------------------------------ Net income (loss) before income tax expense 91,038 209,496 (120,904) Income tax (expense) benefit (396) 49 ? ------------------------------------ Net income (loss) $90,642 $209,545 $ (120,904) ==================================== Earnings (loss) per share Basic $2.49 $5.78 $(3.36) Diluted 2.44 5.71 (3.36) Weighted average number of ordinary shares used in the determination of: Basic 36,420,719 36,230,501 35,970,479 Diluted 37,224,173 36,723,552 35,970,479 The following table provides the ratios for the years ended December 31, 2010, 2009 and 2008. 2010 2009 2008 --------------------------------------------------------------------- Freque Severi Total Freque Severi Total Freque Severi Total ncy ty ncy ty ncy ty --------------------------------------------------------------------- Loss ratio 68.9% (4.3)% 61.5% 56.6% 51.2% 55.4% 44.4% 57.7% 48.3% Acquisitio 36.7% 26.3% 35.7% 38.6% 8.3% 32.3% 46.8% 10.8% 36.2% n cost ratio --------------------------------------------------------------------- Composite 105.6% 21.1% 97.2% 95.2% 59.5% 87.7% 91.2% 68.5% 84.5% ratio Internal 5.6% 8.8% 12.0% expense ratio -------- ------- ------ Combined 102.8% 96.5% 96.5% ratio ======== ======= ====== CONTACT: Alex Stanton Stanton Public Relations & Marketing (212) 780-0701 astanton@stantonprm.com News Source: NASDAQ OMX 22.02.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Greenlight Capital Re US Phone: Fax: E-mail: Internet: ISIN: KYG4095J1094 WKN: End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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