Greenlight Capital Re reported a net loss of $31.3m for Q4 08 compared to a net income of $29.2m for Q4 07

Greenlight Capital Re has reported a net loss of $31.3 million, or $0.87 per diluted share, for the fourth quarter ended December 31, 2008, compared to net income of $29.2 million, or $0.80 per diluted share, for the same period in 2007.

Gross written premiums in the fourth quarter of 2008 were $28.6 million, compared to $3.9 million in the fourth quarter of 2007, while net earned premiums were $34.2 million, compared to $21.4 million. Net investment loss reported in the fourth quarter of 2008 was $33.3 million, compared to net investment income of $26.9 million in the fourth quarter of 2007.

For the year ended December 31, 2008, net loss was $120.9 million, or $3.36 per diluted share, compared to net income of $35.3 million, or $1.15 per diluted share, for the full year 2007. For the full year 2008, gross premiums written were $162.4 million, compared to $127.1 million in 2007, while net earned premiums were $114.9 million, compared to $98 million in 2007. For the full year 2008, net investment loss was $126.1 million, compared to net investment income of $27.6 million in 2007.

David Einhorn, chairman of the board of directors of Greenlight, said: 2008 presented a soft reinsurance market and a challenging investment environment. While we were disappointed with the investment result, our underwriting portfolio performed well. Our conservative balance sheet affords us a good opportunity to take advantage of the dislocations that are now occurring in a hardening reinsurance market and in the capital markets.