8-K
GREENLIGHT CAPITAL RE, LTD. (GLRE)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
March 8, 2022
Date of report (Date of earliest event reported)
GREENLIGHT CAPITAL RE, LTD.
(Exact name of registrant as specified in charter)
| Cayman Islands | 001-33493 | N/A |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission file number) | (IRS employer identification no.) |
| 65 Market Street | ||
| Suite 1207, Jasmine Court | ||
| P.O. Box 31110 | ||
| Camana Bay | ||
| Grand Cayman | ||
| Cayman Islands | KY1-1205 | |
| (Address of principal executive offices) | (Zip code) |
(345) 943-4573
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Class A Ordinary Shares | GLRE | Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On March 8, 2022, Greenlight Capital Re, Ltd. (the "Registrant") issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2021. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and incorporated herein by reference.
In accordance with general instruction B.2 to Form 8-K, the information set forth in this Item 2.02 (including Exhibit 99.1) shall be deemed “furnished” and not “filed” with the Securities and Exchange Commission for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| 99.1 | Earnings press release, "GREENLIGHT RE ANNOUNCES FOURTH QUARTER AND YEAR END 2021 FINANCIAL RESULTS", dated March 8, 2022, issued by the Registrant |
|---|
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| GREENLIGHT CAPITAL RE, LTD. | |
|---|---|
| (Registrant) | |
| By: | /s/ Neil Greenspan |
| Name: | Neil Greenspan |
| Title: | Chief Financial Officer |
| Date: | March 8, 2022 |
Document
GREENLIGHT RE ANNOUNCES
FOURTH QUARTER AND YEAR END 2021 FINANCIAL RESULTS
Net income for the quarter of $24.3 million
Fully diluted book value per share increased 5.6% in the quarter to $13.99
GRAND CAYMAN, Cayman Islands - March 8, 2022 - Greenlight Capital Re, Ltd. (NASDAQ: GLRE) (“Greenlight Re” or the “Company”) today reported its financial results for the quarter and year ended December 31, 2021. The results included:
•Net income of $24.3 million, or $0.71 per share, compared to net income of $42.0 million, or $1.20 per share, in the fourth quarter of 2020;
•Combined ratio of 96.4%, compared to a combined ratio of 101.0% in the fourth quarter of 2020;
•Total investment income of $25.3 million, compared to total investment income of $48.4 million in the fourth quarter of 2020; and
•An increase in fully diluted book value per share of $0.74, or 5.6%, to $13.99.
The following summarizes the Company’s underwriting results for the fourth quarter of 2021 and 2020:
| Three months ended December 31 | |||
|---|---|---|---|
| 2021 | 2020 | ||
| ( in thousands) | |||
| Gross premiums written | 125,144 | 117,719 | |
| Net premiums earned | 135,880 | 120,457 | |
| Underwriting income (loss) | 4,810 | (1,142) | |
| Combined ratio | 96.4 | 101.0 | % |
All values are in US Dollars.
Simon Burton, Chief Executive Officer of Greenlight Re, stated, “Our fourth quarter 2021 performance was strong, with gains posted from each of underwriting, Solasglas and Innovations investments, producing an increase in book value per share of 5.6%.”
David Einhorn, Chairman of the Board of Directors, stated, “We are pleased with our strong underwriting and investment results in the quarter. After facing strong headwinds for a number of years, we now believe the investment environment has turned favorable for our strategy.”
Underwriting and Investment Results
Fourth Quarter of 2021
Gross premiums written in the fourth quarter of 2021 were $125.1 million, compared to $117.7 million in the fourth quarter of 2020. This increase relates primarily to growth in our Lloyd’s and financial lines businesses. These increases were partially offset by reductions in our auto business, as well as premium associated with certain multiline, workers’ compensation, and health contracts.
Net premiums earned were $135.9 million during the fourth quarter of 2021, an increase from $120.5 million in the comparable 2020 period.
The Company recognized net underwriting income of $4.8 million in the fourth quarter of 2021, compared to an underwriting loss of $1.1 million in the comparable 2020 period. The Company recognized favorable prior-year loss development in the fourth quarter of 2021, with a net financial impact of $11.5 million, which reduced the Company’s combined ratio by 8.5 percentage points. Partially offsetting this favorable development was $8.7 million of expense recognized on deposit-accounted contracts, as the Company increased its estimate of the ultimate cash flows associated with these transactions. These adjustments contributed an additional 6.4 percentage points to the Company’s combined ratio. The primary drivers of the underwriting loss in the fourth quarter of 2020 were Hurricane Laura and the North American wildfires.
The Company’s total investment income during the fourth quarter of 2021 was $25.3 million. The Company’s Investment Portfolio, managed by DME Advisors, returned 9.9%, representing a $22.3 million gain from the Solasglas fund. The Company reported $3.1 million of other investment income, primarily from its Innovations investments.
Year ended December 31, 2021
The Company earned net income of $17.6 million, or $0.51 per share, for the year ended December 31, 2021. It grew diluted book value per share by 4.2% during 2021.
Gross written premiums were $565.4 million for the year ended December 31, 2021, an increase of $85.6 million, or 17.8%, compared to the comparable 2020 period. This growth was driven by an increase in Lloyd’s multiline quota share contracts written during 2021.
Net premiums earned were $539.3 million for the year ended December 31, 2021, an increase of $83.9 million, or 18.4%, compared to the equivalent 2020 period.
The Company incurred an underwriting loss for the year ended December 31, 2021, of $5.2 million, corresponding to a combined ratio of 100.9%. The underwriting loss for the equivalent 2020 period was $1.6 million, representing a combined ratio of 100.4%. Hurricane Ida, winter storm Uri, European floods and hailstorms, U.S. tornados, and South African riots contributed $32.7 million to the underwriting loss for the year ended December 31, 2021. In total, these events contributed 6.1 percentage points to the Company’s combined ratio during the period. By comparison, the catastrophe events during 2020, including hurricanes Laura, Isaias, and Sally, the Midwest derecho storms, and North American wildfires, contributed $9.0 million to the underwriting loss for the year ended December 31, 2020. Additionally, COVID-19 contributed $7.1 million to the underwriting loss for the year ended December 31, 2020.
Total investment income for the year ended December 31, 2021, was $50.2 million, compared to investment income of $25.5 million incurred during the equivalent 2020 period. The investment income for the year ended December 31, 2021, was due primarily to gains recognized in connection with the Company’s strategic investments. The Company’s investment in the Solasglas fund generated income of $18.1 million for the year ended December 31, 2021, compared to a gain of $4.4 million during the equivalent 2020 period.
Greenlight Capital Re, Ltd. Fourth Quarter and Year End 2021 Earnings Call
Greenlight Re will host a live conference call to discuss its financial results on Wednesday, March 9, 2022, at 9:00 a.m. Eastern Time. Dial-in details:
U.S. toll free 1-844-274-4096
International 1-412-317-5608
Telephone participants may avoid any delays by pre-registering for the call using the following link to receive a unique dial-in number and PIN.
Conference Call registration link: https://dpregister.com/sreg/10163112/f0c3255c78
The conference call can also be accessed via webcast at:
https://services.choruscall.com/links/glre220309.html
A telephone replay of the call will be available from 11:00 a.m. Eastern time on March 9, 2022, until 9:00 a.m. Eastern time on March 16, 2022. 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 1172157. An audio file of the call will also be available on the Company’s website, www.greenlightre.com.
Non-GAAP Financial Measures
In presenting the Company’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). Such measures, including adjusted combined ratio, and net underwriting income (loss), are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. Management believes these measures allow for a more thorough understanding of the underlying business. These measures are used to monitor our results and should not be viewed as a substitute for those determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included in the attached financial information in accordance with Regulation G.
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 the Company’s behalf. 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 Form 10-K filed with the Securities Exchange Commission on March 8, 2022. 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, except as provided by law.
About Greenlight Capital Re, Ltd.
Greenlight Re (www.greenlightre.com) provides multiline property and casualty reinsurance through its licensed and regulated reinsurance entities in the Cayman Islands and Ireland. The Company complements its underwriting activities with a non-traditional investment approach designed to achieve higher rates of return over the long term than reinsurance companies that exclusively employ more traditional investment strategies. In 2018, the Company launched its Greenlight Re Innovations unit, which supports technology innovators in the (re)insurance space by providing investment, risk capacity, and access to a broad insurance network.
Contact:
Investor Relations:
Karin Daly
The Equity Group Inc.
(212) 836-9623
IR@greenlightre.ky
GREENLIGHT CAPITAL RE, LTD.
CONSOLIDATED BALANCE SHEETS
(expressed in thousands of U.S. dollars, except per share and share amounts)
| December 31, 2021 | December 31, 2020 | |||
|---|---|---|---|---|
| Assets | ||||
| Investments | ||||
| Investment in related party investment fund | $ | 183,591 | $ | 166,735 |
| Other investments | 47,384 | 29,418 | ||
| Total investments | 230,975 | 196,153 | ||
| Cash and cash equivalents | 76,307 | 8,935 | ||
| Restricted cash and cash equivalents | 634,794 | 745,371 | ||
| Reinsurance balances receivable (net of allowance for expected credit losses) | 405,365 | 330,232 | ||
| Loss and loss adjustment expenses recoverable (net of allowance for expected credit losses) | 11,100 | 16,851 | ||
| Deferred acquisition costs | 63,026 | 51,014 | ||
| Unearned premiums ceded | 42 | — | ||
| Notes receivable | — | 6,101 | ||
| Other assets | 5,885 | 2,993 | ||
| Total assets | $ | 1,427,494 | $ | 1,357,650 |
| Liabilities and equity | ||||
| Liabilities | ||||
| Loss and loss adjustment expense reserves | $ | 524,010 | $ | 494,179 |
| Unearned premium reserves | 227,584 | 201,089 | ||
| Reinsurance balances payable | 91,224 | 92,247 | ||
| Funds withheld | 3,792 | 4,475 | ||
| Other liabilities | 7,164 | 5,009 | ||
| Convertible senior notes payable | 98,057 | 95,794 | ||
| Total liabilities | 951,831 | 892,793 | ||
| Shareholders' equity | ||||
| Ordinary share capital (Class A: par value $0.10; authorized, 100,000,000; issued and outstanding, 27,589,731 (2020: 28,260,075): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,715 (2020: 6,254,715)) | $ | 3,384 | $ | 3,452 |
| Additional paid-in capital | 481,784 | 488,488 | ||
| Retained earnings (deficit) | (9,505) | (27,083) | ||
| Total shareholders' equity | 475,663 | 464,857 | ||
| Total liabilities and equity | $ | 1,427,494 | $ | 1,357,650 |
GREENLIGHT CAPITAL RE, LTD.
CONSOLIDATED RESULTS OF OPERATIONS
(expressed in thousands of U.S. dollars, except percentages and per share amounts)
| Three months ended December 31 | Year ended December 31 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Underwriting revenue | ||||||||||||
| Gross premiums written | $ | 125,144 | $ | 117,719 | $ | 565,393 | $ | 479,791 | ||||
| Gross premiums ceded | (35) | 6 | (41) | (2,268) | ||||||||
| Net premiums written | 125,109 | 117,725 | 565,352 | 477,523 | ||||||||
| Change in net unearned premium reserves | 10,771 | 2,732 | (26,073) | (22,112) | ||||||||
| Net premiums earned | $ | 135,880 | $ | 120,457 | $ | 539,279 | $ | 455,411 | ||||
| Underwriting related expenses | ||||||||||||
| Net loss and loss adjustment expenses incurred | ||||||||||||
| Current year | $ | 92,753 | $ | 85,537 | $ | 389,080 | $ | 333,096 | ||||
| Prior year | (12,851) | (648) | (14,100) | 4,737 | ||||||||
| Net loss and loss adjustment expenses incurred | 79,902 | 84,889 | 374,980 | 337,833 | ||||||||
| Acquisition costs | 38,900 | 32,628 | 144,960 | 109,288 | ||||||||
| Underwriting expenses | 3,570 | 3,981 | 12,880 | 12,365 | ||||||||
| Deposit accounting and other reinsurance expense (income) | 8,698 | 101 | 11,655 | (2,463) | ||||||||
| Net underwriting income (loss) | $ | 4,810 | $ | (1,142) | $ | (5,196) | $ | (1,612) | ||||
| Income (loss) from investment in related party investment fund | $ | 22,283 | $ | 38,517 | $ | 18,087 | $ | 4,431 | ||||
| Net investment income (loss) | 3,066 | 9,864 | 32,065 | 21,101 | ||||||||
| Total investment income (loss) | $ | 25,349 | $ | 48,381 | $ | 50,152 | $ | 25,532 | ||||
| Net underwriting and investment income (loss) | $ | 30,159 | $ | 47,239 | $ | 44,956 | $ | 23,920 | ||||
| Corporate expenses | $ | 4,459 | $ | 4,325 | $ | 16,489 | $ | 14,036 | ||||
| Other (income) expense, net | (196) | (680) | 880 | (686) | ||||||||
| Interest expense | 1,579 | 1,578 | 6,263 | 6,280 | ||||||||
| Income tax expense (benefit) | 13 | — | 3,746 | 424 | ||||||||
| Net income (loss) | $ | 24,304 | $ | 42,016 | $ | 17,578 | $ | 3,866 | ||||
| Earnings (loss) per share | ||||||||||||
| Basic | $ | 0.72 | $ | 1.20 | $ | 0.51 | $ | 0.11 | ||||
| Diluted | $ | 0.71 | $ | 1.20 | $ | 0.51 | $ | 0.11 | ||||
| Underwriting ratios | ||||||||||||
| Loss ratio - current year | 68.3 | % | 71.0 | % | 72.1 | % | 73.1 | % | ||||
| Loss ratio - prior year | (9.4) | % | (0.6) | % | (2.6) | % | 1.1 | % | ||||
| Loss ratio | 58.8 | % | 70.5 | % | 69.5 | % | 74.2 | % | ||||
| Acquisition cost ratio | 28.6 | % | 27.1 | % | 26.9 | % | 24.0 | % | ||||
| Composite ratio | 87.4 | % | 97.6 | % | 96.4 | % | 98.2 | % | ||||
| Underwriting expense ratio | 9.0 | % | 3.4 | % | 4.5 | % | 2.2 | % | ||||
| Combined ratio | 96.4 | % | 101.0 | % | 100.9 | % | 100.4 | % |
The following tables present the Company’s underwriting ratios by line of business:
| Three months ended December 31 | Three months ended December 31 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||||||||||||
| Property | Casualty | Other | Total | Property | Casualty | Other | Total | |||||||||
| Loss ratio | 99.2 | % | 63.1 | % | 31.7 | % | 58.8 | % | 46.2 | % | 72.9 | % | 75.7 | % | 70.5 | % |
| Acquisition cost ratio | 21.6 | 28.7 | 31.2 | 28.6 | 20.4 | 26.6 | 31.5 | 27.1 | ||||||||
| Composite ratio | 120.8 | % | 91.8 | % | 62.9 | % | 87.4 | % | 66.6 | % | 99.5 | % | 107.2 | % | 97.6 | % |
| Underwriting expense ratio | 9.0 | 3.4 | ||||||||||||||
| Combined ratio | 96.4 | % | 101.0 | % | ||||||||||||
| Year ended December 31 | Year ended December 31 | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2021 | 2020 | |||||||||||||||
| Property | Casualty | Other | Total | Property | Casualty | Other | Total | |||||||||
| Loss ratio | 82.0 | % | 73.1 | % | 54.7 | % | 69.5 | % | 69.7 | % | 71.7 | % | 83.4 | % | 74.2 | % |
| Acquisition cost ratio | 21.3 | 26.6 | 30.0 | 26.9 | 20.4 | 27.2 | 17.4 | 24.0 | ||||||||
| Composite ratio | 103.3 | % | 99.7 | % | 84.7 | % | 96.4 | % | 90.1 | % | 98.9 | % | 100.8 | % | 98.2 | % |
| Underwriting expense ratio | 4.5 | 2.2 | ||||||||||||||
| Combined ratio | 100.9 | % | 100.4 | % |
GREENLIGHT CAPITAL RE, LTD.
NON-GAAP MEASURES AND RECONCILIATION
Management also uses certain key financial measures, some of which are not prescribed under U.S. GAAP rules and standards (“non-GAAP financial measures”), to evaluate our financial performance, financial position, and the change in shareholder value. Generally, a non-GAAP financial measure, as defined in SEC Regulation G, is a numerical measure of a company’s historical or future financial performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented under U.S. GAAP. We believe that these measures, which may be calculated or defined differently by other companies, provide consistent and comparable metrics of our business performance to help shareholders understand performance trends and allow for a more thorough understanding of the Company’s business. Non-GAAP financial measures should not be viewed as a substitute for those determined under U.S. GAAP.
Adjusted combined ratio
“Combined ratio” is a commonly used measure in the property and casualty insurance industry and is calculated using U.S. GAAP components. We use the combined ratio, along with an analysis of significant drivers, to evaluate our underwriting performance. During 2020, in an effort to further evaluate our underwriting performance, we introduced the “adjusted combined ratio,” a non-GAAP measure that excludes the effects of underwriting losses attributable to (i) prior accident-year reserve development, (ii) catastrophe losses, and (iii) certain significant, infrequent loss events. we have since determined that the use of this measure does not significantly enhance our or investors’ understanding of the underlying trends or variability in our underwriting results. Accordingly, we do not intend to use or disclose our adjusted combined ratio in future periods.
In calculating the adjusted combined ratio, we exclude underwriting income and losses attributable to (i) prior accident-year reserve development, (ii) catastrophe events, and (iii) other significant infrequent adjustments.
Prior accident-year reserve development, which can be favorable or unfavorable, represents changes in our estimates of losses and loss adjustment expenses associated with loss events that occurred in prior years.
By their nature, catastrophe events and other significant infrequent adjustments are not representative of the type of loss activity that we would expect to occur in every period.
The following table reconciles the combined ratio to the adjusted combined ratio:
| Three months ended December 31 | Year ended December 31 | |||||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||
| Combined ratio | 96.4 | % | 101.0 | % | 100.9 | % | 100.4 | % |
| Impact on combined ratio of selected items: | ||||||||
| Prior-year development | (8.5) | % | — | % | (1.5) | % | 0.8 | % |
| Catastrophes (current year) | 0.8 | % | 7.5 | % | 6.1 | % | 2.0 | % |
| Other adjustments | 6.4 | % | 0.9 | % | 2.2 | % | 1.6 | % |
| Adjusted combined ratio | 97.7 | % | 92.6 | % | 94.1 | % | 96.0 | % |
•The caption “Catastrophes (current year)” includes events that occur during a given period, as well as current-period development on catastrophe events occurring earlier in the fiscal year.
•The caption “Other adjustments” represents, for the three and twelve-month periods ended December 31, 2021, interest income and expense on deposit-accounted contracts due to changes in the associated estimated ultimate cash flows and, for the equivalent 2020 periods, losses relating to the COVID-19 pandemic.
Net Underwriting Income (Loss)
One way that we evaluate the Company’s underwriting performance is by measuring net underwriting income (loss). We do not use premiums written as a measure of performance. Net underwriting income (loss) is a performance measure used by management to evaluate the fundamentals underlying the Company’s underwriting operations. We believe that the use of net underwriting income (loss) enables investors and other users of the Company’s financial information to analyze our
performance in a manner similar to how management analyzes performance. Management also believes that this measure follows industry practice and allows the users of financial information to compare the Company’s performance with that of our industry peer group.
Net underwriting income (loss) is considered a non-GAAP financial measure because it excludes items used to calculate net income before taxes under U.S. GAAP. We calculate net underwriting income (loss) as net premiums earned, plus other income relating to reinsurance and deposit-accounted contracts, less deposit interest expense, less net loss and loss adjustment expenses, acquisition costs, and underwriting expenses. The measure excludes, on a recurring basis: (1) investment income (loss); (2) other income (expense) not related to underwriting, including foreign exchange gains or losses and adjustments to the allowance for expected credit losses; (3) corporate general and administrative expenses; and (4) interest expense. We exclude total investment income or loss, foreign exchange gains or losses, and expected credit losses as we believe these items are influenced by market conditions and other factors not related to underwriting decisions. We exclude corporate and interest expenses because these costs are generally fixed and not incremental to or directly related to our underwriting operations. We believe all of these amounts are largely independent of our underwriting process, and including them could hinder the analysis of trends in our underwriting operations. Net underwriting income (loss) should not be viewed as a substitute for U.S. GAAP net income before income taxes.
The reconciliations of net underwriting income (loss) to income (loss) before income taxes (the most directly comparable U.S. GAAP financial measure) on a consolidated basis are shown below:
| Three months ended December 31 | Year ended December 31 | ||||||
|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||||
| ( in thousands) | |||||||
| Income (loss) before income tax | $ | 42,016 | $ | 21,324 | $ | 4,290 | |
| Add (subtract): | |||||||
| Total investment (income) loss | (25,349) | (48,381) | (50,152) | (25,532) | |||
| Other non-underwriting (income) expense | (196) | (680) | 880 | (686) | |||
| Corporate expenses | 4,459 | 4,325 | 16,489 | 14,036 | |||
| Interest expense | 1,579 | 1,578 | 6,263 | 6,280 | |||
| Net underwriting income (loss) | $ | (1,142) | $ | (5,196) | $ | (1,612) |
All values are in US Dollars.