Greenlight Reports $2.1 Million Q3 Loss

Cayman Islands-based Greenlight Capital Re, Ltd. reported a net loss of $2.1 million for the third quarter of 2007 compared to a profit of $17.5 million for the same period in 2006. On a fully diluted per share basis, the net loss was $0.06, compared to net income of $0.82 for the third quarter of 2006.

For the nine months ended September 30, 2007, net income was $6.1 million compared to $39.6 million for the same period in 2006. On a fully diluted per share basis, net income was $0.21, compared to $1.85 for the nine months ended September 30, 2006.

“Fully diluted book value per share is $15.78 at September 30, 2007, a 17.1 percent increase over $13.48 at September 30, 2006,” the bulletin noted. “The 2006 diluted book value is adjusted for a related party promissory note receivable that was outstanding at the time.

Operating highlights for the third quarter and nine months ended September 30, 2007 include the following:
— Gross written premiums were $19.8 million compared to $24.6 million in the third quarter of 2006 while net earned premiums were $30.7 million compared to $10.0 million. For the first nine months, gross written premiums were $123.3 million compared to $36.2 million for the first nine months of 2006 while net earned premiums were $76.6 million compared to $12.5 million.
— The combined ratio for the nine months ended September 30, 2007 was 93.1 percent.
— A net investment loss of $4.8 million was reported in the third quarter, a 0.8 percent loss, compared to a net investment gain of $16.6 million in the third quarter of 2006, a 6.2 percent gain. For the first nine months of 2007, net investment income was $0.7 million compared to $41.0 million in the nine months ended September 30, 2006.

Chairman David Einhorn commented: “We continued to build our team and infrastructure in the third quarter and are now fully ramped up for our first full year as a public company in 2008. In a turbulent market, we were able to preserve capital and further advance our strategy to deliver superior growth in book value per share over the long term.”

CEO Len Goldberg added: “We are focused on expanding our underwriting portfolio, and writing business that we believe will deliver superior risk-adjusted returns. The additional capital from our IPO allows us to pursue more opportunities and sets the stage for future success. Greenlight Re will remain disciplined in a softening reinsurance environment, and in combination with our value-oriented investment approach, continue to drive value from both sides of the balance sheet.”

The full report, additional details may be obtained on the Company’s web site at: www.greenlightre.ky. Until Nov. 21, a replay of the earnings conference call can be accessed at: (800) 642-1687 (domestic) or (706) 645-9291 (international), access code 21871519.

Source: Greenlight Re