Key Points – Greenlight Re posted a $29.6 million second-quarter net loss, or $0.89 per diluted share, as a $23.8 million investment loss and catastrophe provisions pushed the combined ratio to 100.1%. – Middle East conflict reserves reached $25 million cumulatively, including a…
0 million second-quarter provision, while a Qatar refinery explosion added $6.5 million; management said exposure is declining but loss estimates remain highly uncertain. – The innovation segment delivered a $2.6 million underwriting profit with an 89.7% combined ratio, while Greenlight Re repurchased $18.1 million of shares during and after the quarter and ended with $20.61 in diluted book value per share. Greenlight Capital Re (NASDAQ:GLRE) reported a second-quarter net loss of $29.6 million, or $0.89 per diluted share, as investment losses in its Solasglas portfolio and catastrophe and large-loss provisions weighed on results
Chief Executive Officer Greg Richardson described the quarter as challenging, citing a $20 million provision for losses related to the Middle East conflict and a $6.5 million provision tied to an oil refinery explosion in Qatar. The company said the Qatar facility fire was not believed to have resulted from a hostile act or attack connected to the conflict. The company’s underwriting loss was $0.2 million and its combined ratio was 100.1%, including 17.1 percentage points of catastrophe and large losses.
Chief Financial Officer Faramarz Romer said the comparable catastrophe and large-loss ratio was 4% in the prior-year quarter. Middle East Reserves Drive Specialty-Book Losses Greenlight Re booked an additional $20 million in reserves during the second quarter related to the Middle East war, following $5 million reserved in the first quarter. The $25 million total includes one known full-limit loss of $7.6 million, $9.9 million in other specific event losses and $7.5 million for estimated incurred-but-not-reported losses.