- Insurer has been shifting bets after unprofitable underwriting
- Greenlight Re posted five quarterly losses in six periods
Greenlight Capital Re Ltd., the reinsurer that counts on hedge fund manager David Einhorn to oversee its investment portfolio, reached a deal to expand in Europe and Asia as the company seeks to improve underwriting.
The reinsurer’s Irish subsidiary is partnering with Kattan Associates Ltd. to seek new business, Greenlight Re said Thursday in a statement that didn’t disclose terms.
Greenlight Re has posted losses in five of the last six quarters, as Einhorn’s investments slumped and the company struggled to find profitable insurance contracts. The second-quarter net underwriting loss widened to $24.5 million from $13.3 million a year earlier.
“The extensive experience and relationships that Kattan Associates brings to the insurance industry will provide an excellent network for Greenlight Re to access attractive business,” Brendan Barry, chief underwriting officer of the Cayman Islands-based company, said in the statement. “We continue to expand our global footprint and further diversify our underwriting portfolio.”
Greenlight Re previously announced that it was pushing into the mortgage-guaranty market after being burned by costs tied commercial-vehicle contracts and fraudulent claims on property policies in Florida. Reinsurers offer coverage for primary carriers, and can provide a stable source of funds for money managers to invest.
Kattan Associates’ Habib Kattan previously was the group head of ceded reinsurance and credit control at Tokio Marine Kiln. In a career of about 40 years, he has had senior roles in underwriting and as a middleman between insurance buyers and sellers, according to the statement.
Greenlight Re slipped 3 cents to $21.74 at 1:26 p.m. in New York. It has advanced 16 percent this year after dropping 43 percent in 2015.