StockNews.AI
GLRE
StockNews.AI
15 days

Greenlight Re Announces Financial Results for Second Quarter and Six Months Ended June 30, 2025

1. GLRE reports Q2 2025 net income of $0.3 million. 2. Gross premiums written increased by 6.3% in Q2. 3. The combined ratio improved to 95.0%, indicating better profitability. 4. Total investment loss of $7.8 million is reported for the quarter. 5. Share buybacks totaled $5 million, highlighting a commitment to shareholders.

20m saved
Insight
Article

FAQ

Why Bullish?

Despite investment losses, GLRE's improved underwriting results and share buybacks signal strength. Historical data shows similar trends positively influencing stock performance.

How important is it?

Improved combined ratio and strategic buybacks indicate long-term confidence, elevating short-term interest.

Why Short Term?

Recent financial results and share buybacks can lead to immediate investor confidence. Past earnings reports with positive premiums also resulted in brief spikes in stock prices.

Related Companies

BRK.BTRVAIG
Delivers 95.0% Combined Ratio and Returns $5 million to Shareholders Through Buybacks GRAND CAYMAN, Cayman Islands, Aug. 04, 2025 (GLOBE NEWSWIRE) -- Greenlight Capital Re, Ltd. (NASDAQ: GLRE) (“Greenlight Re” or the “Company”) today reported its financial results for the second quarter and six months ended June 30, 2025. Second Quarter 2025 Highlights (all comparisons are to second quarter 2024 unless noted otherwise): Gross premiums written increased 6.3% to $179.6 million;Net premiums earned increased 2.0% to $161.6 million;Net underwriting income of $8.1 million, compared to $0.3 million;Combined ratio of 95.0%, compared to 99.9%;Total investment loss of $7.8 million, compared to total investment income of $15.3 million;Net income of $0.3 million, or $0.01 per diluted ordinary share, compared to $8.0 million, or $0.23 per diluted ordinary share;Repurchased $5.0 million of shares at an average cost of $13.99 per share; andFully diluted book value per share increased 0.5% to $18.97, from $18.87 at March 31, 2025. Six Months Ended June 30, 2025 Highlights (all comparisons are to same period in 2024): Gross premiums written increased 10.7% to $427.6 million;Net premiums earned increased 3.2% to $330.1 million;Net underwriting income of $0.3 million compared to $3.7 million;Combined ratio of 99.9%, compared to 98.9%;Total investment income of $32.7 million, compared to $46.7 million;Net income of $30.0 million, or $0.87 per diluted ordinary share, compared to $35.0 million, or $1.01 per diluted ordinary share; andFully diluted book value per share increased 5.7% to $18.97, from $17.65 at December 31, 2024. Greg Richardson, Chief Executive Officer of Greenlight Re, stated, “We are pleased with our second quarter 2025 underwriting results, which reflect the strength and discipline of our portfolio, and we believe our book is well positioned for a strong second half of the year. We remain committed to creating long-term value for shareholders, as demonstrated by our ongoing capital management strategy and focus on operational performance.” David Einhorn, Chairman of the Board of Directors, said, “The Solasglas investment portfolio lost 4.0% during a difficult quarter. We continue to have a defensive stance, with a nearly flat net exposure, and our long investments failed to keep up with a strongly rising market. Despite this, our strong underwriting result and share buyback allowed us to increase our fully diluted book value per share.” Greenlight Capital Re, Ltd. Second Quarter 2025 Earnings Call Greenlight Re will host a live conference call to discuss its financial results on Tuesday, August 5, 2025, at 9:00 a.m. Eastern Time. Dial-in details:        U.S. toll free: 1-877-407-9753 International: 1-201-493-6739 The conference call can also be accessed via webcast at: https://event.webcasts.com/starthere.jsp?ei=1727215&tp_key=d849de3f16 A telephone replay will be available following the call through August 11, 2025. The replay of the call may be accessed by dialing 1-877-660-6853 (U.S. toll free) or 1-201-612-7415 (international), access code 13754849. 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 fully diluted book value per share as a financial measure that is not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). This measure is referred to as a non-GAAP measure. The non-GAAP measure may be defined or calculated differently by other companies. Management believes the measure allows for a more thorough understanding of the Company’s performance. The non-GAAP measure may not be comparable to similarly titled measures reported by other companies and should be used to monitor our results and should be considered in addition to, and not viewed as a substitute for those measures determined in accordance with GAAP. Reconciliation of the measure to the most comparable GAAP figures is included in the attached financial information in accordance with Regulation G. Forward-Looking Statements This news release contains forward-looking statements concerning Greenlight Capital Re, Ltd. and/or its subsidiaries (the “Company”) 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 a downgrade or withdrawal of our A.M. Best ratings; any suspension or revocation of any of our licenses; losses from catastrophes; the loss of significant brokers; the performance of Solasglas Investments, LP; the carry values of our investments made under our Greenlight Re Innovations segment may differ significantly from those that would be used if we carried these investments at fair value; and other factors described in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as those factors may be updated from time to time in our periodic and other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, which speak only as to the date of this release, 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 insurance and reinsurance through its licensed and regulated reinsurance entities in the Cayman Islands and Ireland, and its Lloyd’s platform, Greenlight Innovation Syndicate 3456. 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. The Company’s innovations unit, Greenlight Re Innovations, supports technology innovators in the (re)insurance space by providing investment capital, risk capacity, and access to a broad insurance network. Investor Relations ContactKarin DalyVice President, The Equity Group Inc. (212) 836-9623IR@greenlightre.ky GREENLIGHT CAPITAL RE, LTD.CONDENSED CONSOLIDATEDBALANCE SHEETS(expressed in thousands of U.S. dollars, except per share and share amounts)  June 30, 2025 December 31, 2024 (Unaudited)  Assets   Investments   Investment in related party investment fund, at fair value$461,265 $387,144Other investments 76,036  73,160Total investments 537,301  460,304Cash and cash equivalents 82,362  64,685Restricted cash and cash equivalents 576,698  584,402Reinsurance balances receivable (net of allowance for expected credit losses) 755,296  704,483Loss and loss adjustment expenses recoverable (net of allowance for expected credit losses) 93,971  85,790Deferred acquisition costs 98,816  82,249Unearned premiums ceded 36,623  29,545Other assets 6,957  4,765Total assets$2,188,024 $2,016,223Liabilities and equity   Liabilities   Loss and loss adjustment expense reserves$944,985 $860,969Unearned premium reserves 383,424  324,551Reinsurance balances payable 106,103  105,892Funds withheld 22,577  21,878Other liabilities 8,728  6,305Debt 58,889  60,749Total liabilities 1,524,706  1,380,344Shareholders' equity   Ordinary share capital (par value $0.10; issued and outstanding, 34,198,153) (2024: par value $0.10; issued and outstanding, 34,831,324)$3,420 $3,483Additional paid-in capital 479,097  481,551Retained earnings 180,801  150,845Total shareholders' equity 663,318  635,879Total liabilities and equity$2,188,024 $2,016,223 GREENLIGHT CAPITAL RE, LTD.CONDENSED CONSOLIDATEDRESULTS OF OPERATIONS (Unaudited)(expressed in thousands of U.S. dollars, except percentages and per share amounts)   Three months ended June 30 Six months ended June 30   2025   2024   2025   2024 Underwriting results:        Gross premiums written $179,628  $168,975  $427,573  $386,233 Gross premiums ceded  (15,101)  (14,832)  (43,649)  (38,013)Net premiums written  164,527   154,143   383,924   348,220 Change in net unearned premium reserves  (2,886)  4,255   (53,820)  (28,286)Net premiums earned $161,641  $158,398  $330,104  $319,934 Net loss and LAE incurred:        Current year $(97,032) $(102,722) $(215,698) $(206,647)Prior year  (3,047)  689   (7,265)  (4,712)Net loss and LAE incurred  (100,079)  (102,033)  (222,963)  (211,359)Acquisition costs  (46,848)  (50,454)  (93,714)  (92,064)Underwriting expenses  (6,481)  (5,811)  (12,839)  (12,150)Deposit interest income (expense), net  (124)  233   (273)  (643)Net underwriting income $8,109  $333  $315  $3,718          Income from investment in Solasglas $(18,276) $4,330  $13,921  $22,578 Net investment income  10,470   10,948   18,757   24,126 Total investment income (loss) $(7,806) $15,278  $32,678  $46,704          Corporate and other expenses $(4,755) $(4,706) $(9,427) $(9,081)Foreign exchange gains (losses)  6,271   (932)  10,626   (2,581)Interest expense  (1,144)  (1,560)  (2,608)  (2,809)Income before income tax  675   8,413   31,584   35,951 Income tax expense  (346)  (435)  (1,628)  (954)Net income $329  $7,978  $29,956  $34,997          Earnings per share        Basic $0.01  $0.23  $0.88  $1.02 Diluted $0.01  $0.23  $0.87  $1.01          Underwriting ratios:        Current year loss ratio  60.0%  64.9%  65.3%  64.6%Prior year reserve development ratio  1.9%  (0.4)%  2.2%  1.5%Loss ratio  61.9%  64.5%  67.5%  66.1%Acquisition cost ratio  29.0%  31.9%  28.4%  28.8%Composite ratio  90.9%  96.4%  95.9%  94.9%Underwriting expense ratio  4.1%  3.5%  4.0%  4.0%Combined ratio  95.0%  99.9%  99.9%  98.9% The following tables present the Company’s results by segment and on a consolidated basis: GREENLIGHT CAPITAL RE, LTD.SEGMENT RESULTS OF OPERATIONS (unaudited)(expressed in thousands of U.S. dollars)Three months ended June 30, 2025  Open Market Innovations Corporate Total ConsolidatedGross premiums written$152,333  $27,596  $(301) $179,628 Net premiums written$142,111  $22,716  $(300) $164,527 Net premiums earned$140,554  $21,386  $(299) $161,641 Net loss and LAE incurred (83,475)  (15,244)  (1,360)  (100,079)Acquisition costs (40,900)  (6,012)  64   (46,848)Other underwriting expenses (4,861)  (1,620)  —   (6,481)Deposit interest expense, net (124)  —   —   (124)Underwriting income (loss) 11,194   (1,490)  (1,595)  8,109 Net investment income 5,629   431   4,410   10,470 Corporate and other expenses —   (602)  (4,153)  (4,755)Income (loss) from investment in Solasglas     (18,276)  (18,276)Foreign exchange gains (losses)     6,271   6,271 Interest expense     (1,144)  (1,144)Income (loss) before income taxes$16,823  $(1,661) $(14,487) $675         Underwriting ratios:       Loss ratio 59.4%  71.3%  -454.8%  61.9%Acquisition cost ratio 29.1%  28.1%  21.4%  29.0%Composite ratio 88.5%  99.4%  -433.4%  90.9%Underwriting expenses ratio 3.5%  7.6%  —%  4.1%Combined ratio 92.0%  107.0%  -433.4%  95.0% GREENLIGHT CAPITAL RE, LTD.SEGMENT RESULTS OF OPERATIONS (unaudited)(expressed in thousands of U.S. dollars)Three months ended June 30, 2024  Open Market Innovations Corporate Total ConsolidatedGross premiums written$143,311  $25,319  $345  $168,975 Net premiums written$131,585  $22,212  $346  $154,143 Net premiums earned$125,865  $25,348  $7,185  $158,398 Net loss and LAE incurred (73,403)  (13,634)  (14,996)  (102,033)Acquisition costs (40,511)  (8,406)  (1,537)  (50,454)Other underwriting expenses (4,816)  (995)  —   (5,811)Deposit interest income, net 233   —   —   233 Underwriting income (loss) 7,368   2,313   (9,348)  333 Net investment income 9,782   366   800   10,948 Corporate and other expenses —   (810)  (3,896)  (4,706)Income from investment in Solasglas     4,330   4,330 Foreign exchange gains (losses)     (932)  (932)Interest expense     (1,560)  (1,560)Income (loss) before income taxes$17,150  $1,869  $(10,606) $8,413         Underwriting ratios:       Loss ratio 58.3%  53.8%  208.7%  64.5%Acquisition cost ratio 32.2%  33.2%  21.4%  31.9%Composite ratio 90.5%  87.0%  230.1%  96.4%Underwriting expenses ratio 3.6%  3.9%  —%  3.5%Combined ratio 94.1%  90.9%  230.1%  99.9% GREENLIGHT CAPITAL RE, LTD.SEGMENT RESULTS OF OPERATIONS (unaudited)(expressed in thousands of U.S. dollars)Six months ended June 30, 2025 Six months ended June 30, 2025:Open Market Innovations Corporate Total ConsolidatedGross premiums written$373,042  $55,062  $(531) $427,573 Net premiums written$337,720  $46,687  $(483) $383,924 Net premiums earned$290,195  $40,391  $(482) $330,104 Net loss and LAE incurred (196,238)  (25,590)  (1,135)  (222,963)Acquisition costs (81,781)  (12,045)  112   (93,714)Other underwriting expenses (9,658)  (3,181)  —   (12,839)Deposit interest expense, net (273)  —   —   (273)Underwriting income (loss) 2,245   (425)  (1,505)  315 Net investment income 11,400   879   6,478   18,757 Corporate and other expenses —   (1,174)  (8,253)  (9,427)Income from investment in Solasglas     13,921   13,921 Foreign exchange gains (losses)     10,626   10,626 Interest expense     (2,608)  (2,608)Income (loss) before income taxes$13,645  $(720) $18,659  $31,584         Underwriting ratios:       Loss ratio 67.6%  63.4%  -235.5%  67.5%Acquisition cost ratio 28.2%  29.8%  23.2%  28.4%Composite ratio 95.8%  93.2%  -212.3%  95.9%Underwriting expenses ratio 3.4%  7.9%  —%  4.0%Combined ratio 99.2%  101.1%  -212.3%  99.9%         GREENLIGHT CAPITAL RE, LTD.SEGMENT RESULTS OF OPERATIONS (unaudited)(expressed in thousands of U.S. dollars)Six months ended June 30, 2024 Six months ended June 30, 2024:Open Market Innovations Corporate Total ConsolidatedGross premiums written$330,372  $55,387  $474  $386,233 Net premiums written$299,301  $48,456  $463  $348,220 Net premiums earned$257,475  $45,545  $16,914  $319,934 Net loss and LAE incurred (160,103)  (26,761)  (24,495)  (211,359)Acquisition costs (74,090)  (14,459)  (3,515)  (92,064)Other underwriting expenses (10,294)  (1,856)  —   (12,150)Deposit interest expense, net (643)  —   —   (643)Underwriting income (loss) 12,345   2,469   (11,096)  3,718 Net investment income 22,398   183   1,545   24,126 Corporate and other expenses —   (1,400)  (7,681)  (9,081)Income from investment in Solasglas     22,578   22,578 Foreign exchange gains (losses)     (2,581)  (2,581)Interest expense     (2,809)  (2,809)Income (loss) before income taxes$34,743  $1,252  $(44) $35,951         Underwriting ratios:       Loss ratio 62.2%  58.8%  144.8%  66.1%Acquisition cost ratio 28.8%  31.7%  20.8%  28.8%Composite ratio 91.0%  90.5%  165.6%  94.9%Underwriting expenses ratio 4.2%  4.1%  —%  4.0%Combined ratio 95.2%  94.6%  165.6%  98.9% GREENLIGHT CAPITAL RE, LTD.KEY FINANCIAL MEASURES AND NON-GAAP MEASURES Management 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 facilitate a more thorough understanding of the Company’s business. Non-GAAP financial measures should not be viewed as substitutes for those determined under U.S. GAAP. The key non-GAAP financial measure used in this news release is: Fully diluted book value per share This non-GAAP financial measure is described below. Fully Diluted Book Value Per Share Our primary financial goal is to increase fully diluted book value per share over the long term. We use fully diluted book value as a financial measure in our incentive compensation plan. We believe that long-term growth in fully diluted book value per share is the most relevant measure of our financial performance because it provides management and investors a yardstick to monitor the shareholder value generated. Fully diluted book value per share may also help our investors, shareholders, and other interested parties form a basis of comparison with other companies within the property and casualty reinsurance industry. Fully diluted book value per share should not be viewed as a substitute for the most comparable U.S. GAAP measure, which in our view is the basic book value per share. We calculate basic book value per share as (a) ending shareholders' equity, divided by (b) the total ordinary shares issued and outstanding, as reported in the consolidated financial statements. Fully diluted book value per share represents basic book value per share combined with any dilutive impact of in-the-money stock options (assuming net exercise) and all outstanding restricted stock units, “RSUs”. We believe these adjustments better reflect the ultimate dilution to our shareholders. The following table presents a reconciliation of the fully diluted book value per share to basic book value per share (the most directly comparable U.S. GAAP financial measure):  June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024Numerator for basic and fully diluted book value per share:         Total equity as reported under U.S. GAAP$663,318 $666,804 $635,879 $663,418 $634,020Denominator for basic and fully diluted book value per share:         Ordinary shares issued and outstanding as reported and denominator for basic book value per share 34,198,153  34,557,449  34,831,324  34,832,493  35,321,144Add: In-the-money stock options(1)and all outstanding RSUs 775,124  773,938  590,001  602,013  594,612Denominator for fully diluted book value per share 34,973,277  35,331,387  35,421,325  35,434,506  35,915,756          Basic book value per share$19.40 $19.30 $18.26 $19.05 $17.95Fully diluted book value per share$18.97 $18.87 $17.95 $18.72 $17.65 (1) Assuming net exercise by the grantee.

Related News