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Greenlight Re Announces Fourth Quarter and Year-End 2024 Financial Results

1. GLRE's fully diluted book value rose 7.2%, showing consistent growth. 2. Gross premiums written increased 28%, but net underwriting loss reached $18 million. 3. Combined ratio for Q4 was high at 112.1%, indicating profitability challenges. 4. Significant losses attributed to the Russia-Ukraine conflict and natural disasters. 5. Management emphasizes commitment to shareholder value despite recent challenges.

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$13.2803/11 10:51 PM EDTLatest Updated
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Why Bearish?

GLRE's increased underwriting losses and high combined ratio suggest financial stress. Historical data shows similar patterns led to price declines for insurers.

How important is it?

The report on GLRE’s earnings and operational challenges is highly relevant, indicating volatility.

Why Short Term?

Immediate reactions may come from lower earnings and growing losses in next quarters. Analysts often reassess valuations quickly after underwhelming reports.

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Grows Fully Diluted Book Value by 7.2% in 2024, Marking Fifth Consecutive Year of Book Value Growth; Increases Transparency with New Reporting Segments March 10, 2025 16:15 ET  | Source: Greenlight Capital Re GRAND CAYMAN, Cayman Islands, March 10, 2025 (GLOBE NEWSWIRE) -- Greenlight Capital Re, Ltd. (NASDAQ: GLRE) (“Greenlight Re” or the “Company”) today reported its financial results for the fourth quarter and year ended December 31, 2024. Effective December 31, 2024, the Company restructured its reportable segments to better align with its multi-pillar strategy. Moving forward, the Company will report financial results under two segments, Open Market and Innovations. Additionally, prior-period results have been revised to ensure consistency with the new reporting structure. Fourth Quarter 2024 Highlights (all comparisons are to fourth quarter 2023 unless noted otherwise): Gross premiums written increased 28.0% to $143.8 million;Net premiums earned increased 7.8% to $148.1 million;Net underwriting loss of $18.0 million, compared to net underwriting income of $11.8 million;Combined ratio of 112.1%, compared to 91.4%;Total investment income of $2.6 million, compared to $14.1 million; andNet loss of $27.4 million, or $(0.81) per diluted ordinary share, compared to net income of $17.6 million, or $0.50 per diluted ordinary share. The Company’s underwriting loss of $18.0 million in the fourth quarter of 2024 was driven primarily by (i) strengthening of Open Market specialty reserves related to aviation losses from the 2022 Russia-Ukraine conflict, and (ii) catastrophe losses including Hurricane Milton, the Jeju Air plane crash, and other marine and energy related events. The combined ratio for the fourth quarter of 2024 included 10.1% related to Russia-Ukraine conflict, and 11.9% related to catastrophes. Full Year 2024 Highlights (all comparisons are to full year 2023): Gross premiums written increased 9.7% to $698.3 million;Net premiums earned increased 6.3% to $620.0 million;Net underwriting loss of $8.2 million compared to a net underwriting income of $32.0 million;Combined ratio of 101.4%, compared to 94.5%;Total investment income of $79.6 million, compared to $72.1 million;Net income of $42.8 million, or $1.24 per diluted ordinary share, compared to $86.8 million, or $2.50 per diluted ordinary share; andFully diluted book value per share increased 7.2% to $17.95, from $16.74 at December 31, 2023. The Company’s underwriting loss for 2024 was driven primarily by (i) strengthening of Open Market specialty reserves related to aviation losses from the 2022 Russia-Ukraine conflict, and (ii) catastrophe losses including the Baltimore Bridge collapse, Hurricanes Helene and Milton, the Jeju Air plane crash, and other marine and energy related events. The combined ratio for 2024 included 2.4% related to Russia-Ukraine conflict, and 9.3% related to catastrophes. Greg Richardson, Chief Executive Officer of Greenlight Re, stated, “While our financial results for the fourth quarter and full year 2024 fell short of our expectations, we are proud of what we have accomplished during the year in terms of strengthening our organization, processes, and balance sheet. We are well positioned to deliver shareholder value in 2025 and beyond.” David Einhorn, Chairman of the Board of Directors, said, “The fourth quarter was challenging for our investment program post U.S. election results. However, Solasglas’ 9.8% return for the full-year 2024 was solid in light of our conservative positioning, with a year-ending net exposure of 33%.” Greenlight Capital Re, Ltd. Fourth Quarter and Year-End 2024 Earnings Call Greenlight Re will host a live conference call to discuss its financial results on Tuesday, March 11, 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=1703379&tp_key=8d103d18f7 A telephone replay will be available following the call through March 18, 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 13750849. 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.CONSOLIDATEDBALANCE SHEETS(expressed in thousands of U.S. dollars, except per share and share amounts)     December 31, 2024 December 31, 2023Assets   Investments   Investment in related party investment fund, at fair value$387,144  $258,890 Other investments 73,160   73,293 Total investments 460,304   332,183 Cash and cash equivalents 64,685   51,082 Restricted cash and cash equivalents 584,402   604,648 Reinsurance balances receivable (net of allowance for expected credit losses) 704,483   619,401 Loss and loss adjustment expenses recoverable (net of allowance for expected credit losses) 85,790   25,687 Deferred acquisition costs 82,249   79,956 Unearned premiums ceded 29,545   17,261 Other assets 4,765   5,089 Total assets$2,016,223  $1,735,307 Liabilities and equity   Liabilities   Loss and loss adjustment expense reserves$860,969  $661,554 Unearned premium reserves 324,551   306,310 Reinsurance balances payable 105,892   68,983 Funds withheld 21,878   17,289 Other liabilities 6,305   11,795 Debt 60,749   73,281 Total liabilities 1,380,344   1,139,212 Shareholders' equity   Ordinary share capital (par value $0.10; issued and outstanding, 34,831,324) (2023: par value $0.10; issued and outstanding, 35,336,732)$3,483  $3,534 Additional paid-in capital 481,551   484,532 Retained earnings 150,845   108,029 Total shareholders' equity 635,879   596,095 Total liabilities and equity$2,016,223  $1,735,307          GREENLIGHT CAPITAL RE, LTD.CONSOLIDATEDRESULTS OF OPERATIONS(expressed in thousands of U.S. dollars, except percentages and per share amounts)     Three months ended December 31 Year ended December 31 (Unaudited)      2024   2023   2024   2023 Underwriting revenue       Gross premiums written$143,756  $112,338  $698,335  $636,810 Gross premiums ceded (12,459)  (7,022)  (77,070)  (42,762)Net premiums written 131,297   105,316   621,265   594,048 Change in net unearned premium reserves 16,839   32,129   (1,311)  (10,901)Net premiums earned$148,136  $137,445  $619,954  $583,147 Underwriting related expenses       Net loss and LAE incurred:       Current year$(100,998) $(75,228) $(406,465) $(348,798)Prior year (21,747)  (704)  (20,804)  (11,206)Net loss and LAE incurred (122,745)  (75,932)  (427,269)  (360,004)Acquisition costs (38,549)  (42,175)  (176,775)  (168,877)Underwriting expenses (4,634)  (5,541)  (22,857)  (19,587)Deposit interest expense, net (208)  (2,042)  (1,228)  (2,687)Net underwriting income (loss)$(18,000) $11,755  $(8,175) $31,992         Income (loss) from investment in Solasglas$(8,817) $905  $33,605  $28,696 Net investment income 11,374   13,230   45,954   43,408 Total investment income$2,557  $14,135  $79,559  $72,104         Corporate and other expenses$(3,043) $(9,833) $(16,377) $(23,653)Foreign exchange gains (losses) (8,851)  3,905   (5,606)  11,566 Other income, net —   —   —   265 Interest expense (1,009)  (2,367)  (5,836)  (5,344)Income tax recovery (expense) 928   11   (749)  (100)Net income$(27,418) $17,606  $42,816  $86,830         Earnings per share       Basic$(0.81) $0.52  $1.26  $2.55 Diluted$(0.81) $0.50  $1.24  $2.50         Underwriting ratios:       Current year loss ratio 68.1%  54.7%  65.6%  59.8%Prior year reserve development ratio 14.7%  0.5%  3.4%  1.9%Loss ratio 82.8%  55.2%  69.0%  61.7%Acquisition cost ratio 26.0%  30.7%  28.5%  29.0%Composite ratio 108.8%  85.9%  97.5%  90.7%Underwriting expense ratio 3.3%  5.5%  3.9%  3.8%Combined ratio 112.1%  91.4%  101.4%  94.5%                 The following tables present the Company’s results by segment and on a consolidated basis: Segment results for three months ended December 31, 2024        Three months ended December 31, 2024:Open Market Innovations Corporate Total ConsolidatedGross premiums written$123,094  $20,663  $(1) $143,756 Net premiums written$113,907  $17,391  $(1) $131,297 Net premiums earned 127,783   19,014   1,339   148,136 Net loss and LAE incurred (105,307)  (12,955)  (4,483)  (122,745)Acquisition costs (32,539)  (5,729)  (281)  (38,549)Other underwriting expenses (3,901)  (733)  —   (4,634)Deposit interest expense, net (208)  —   —   (208)Underwriting income (loss) (14,172)  (403)  (3,425)  (18,000)Net investment income (loss) 10,959   (208)  623   11,374 Corporate and other expenses —   (429)  (2,614)  (3,043)Income (loss) from investment in Solasglas     (8,817)  (8,817)Foreign exchange losses     (8,851)  (8,851)Interest expense     (1,009)  (1,009)Income (loss) before income taxes (3,213)  (1,040)  (24,093)  (28,346)        Underwriting ratios:       Loss ratio 82.4%  68.1%  334.8%  82.8%Acquisition cost ratio 25.5%  30.1%  21.0%  26.0%Composite ratio 107.9%  98.2%  355.8%  108.8%Underwriting expenses ratio 3.2%  3.9%  —%  3.3%Combined ratio 111.1%  102.1%  355.8%  112.1%                 Segment results for three months ended December 31, 2023        Three months ended December 31, 2023:Open Market Innovations Corporate Total ConsolidatedGross premiums written$77,505  $22,618  $12,215  $112,338 Net premiums written$72,094  $20,995  $12,227  $105,316 Net premiums earned 101,889   23,223   12,333   137,445 Net loss and LAE incurred (53,006)  (14,160)  (8,766)  (75,932)Acquisition costs (32,789)  (6,823)  (2,563)  (42,175)Other underwriting expenses (4,835)  (706)  —   (5,541)Deposit interest expense, net (2,042)  —   —   (2,042)Underwriting income (loss) 9,217   1,534   1,004   11,755 Net investment income 8,230   4,333   667   13,230 Corporate and other expenses —   (812)  (9,021)  (9,833)Income from investment in Solasglas     905   905 Foreign exchange gains     3,905   3,905 Interest expense     (2,367)  (2,367)Income (loss) before income taxes$17,447  $5,055  $(4,907) $17,595         Underwriting ratios:       Loss ratio 52.0%  61.0%  71.1%  55.2%Acquisition cost ratio 32.2%  29.4%  20.8%  30.7%Composite ratio 84.2%  90.4%  91.9%  85.9%Underwriting expenses ratio 6.7%  3.0%  —%  5.5%Combined ratio 90.9%  93.4%  91.9%  91.4%                 Segment results for year ended December 31, 2024        Year ended December 31, 2024:Open Market Innovations Corporate Total ConsolidatedGross premiums written$603,798  $94,725  $(188) $698,335 Net premiums written 541,446   80,016   (197) $621,265 Net premiums earned 511,922   86,352   21,680  $619,954 Net loss and LAE incurred (341,586)  (51,939)  (33,744) $(427,269)Acquisition costs (144,852)  (27,151)  (4,772) $(176,775)Other underwriting expenses (19,175)  (3,682)  —  $(22,857)Deposit interest expense, net(1) (1,228)  —   —  $(1,228)Underwriting income (loss) 5,081   3,580   (16,836) $(8,175)Net investment income 42,629   702   2,623  $45,954 Corporate and other expenses —   (2,445)  (13,932) $(16,377)Income from investment in Solasglas     33,605   33,605 Foreign exchange losses     (5,606)  (5,606)Interest expense     (5,836)  (5,836)Income (loss) before income taxes$47,710  $1,837  $(5,982) $43,565         Underwriting ratios:       Loss ratio 66.7%  60.1%  155.6%  69.0%Acquisition cost ratio 28.3%  31.4%  22.0%  28.5%Composite ratio 95.0%  91.5%  177.6%  97.5%Underwriting expenses ratio 4.0%  4.3%  —%  3.9%Combined ratio 99.0%  95.8%  177.6%  101.4%         Segment results for year ended December 31, 2023        Year ended December 31, 2023:Open Market Innovations Corporate Total ConsolidatedGross premiums written$504,435  $88,602  $43,773  $636,810 Net premiums written 466,544   83,608   43,896  $594,048 Net premiums earned 466,751   71,769   44,627  $583,147 Net loss and LAE incurred (262,290)  (44,855)  (52,859) $(360,004)Acquisition costs (136,356)  (22,381)  (10,140) $(168,877)Other underwriting expenses (16,827)  (2,760)  —  $(19,587)Deposit interest expense, net (2,687)  —   —  $(2,687)Underwriting income (loss) 48,591   1,773   (18,372) $31,992 Net investment income 37,351   2,732   3,325  $43,408 Corporate and other expenses —   (3,080)  (20,573) $(23,653)Income from investment in Solasglas     28,696   28,696 Foreign exchange gains     11,566   11,566 Other income, net     265   265 Interest expense     (5,344)  (5,344)Income (loss) before income taxes$85,942  $1,425  $(437) $86,930         Underwriting ratios:       Loss ratio 56.2%  62.5%  118.4%  61.7%Acquisition cost ratio 29.2%  31.2%  22.7%  29.0%Composite ratio 85.4%  93.7%  141.1%  90.7%Underwriting expenses ratio 4.2%  3.8%  —%  3.8%Combined ratio 89.6%  97.5%  141.1%  94.5%                 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):  December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023Numerator for basic and fully diluted book value per share:         Total equity as reported under U.S. GAAP$635,879 $663,418 $634,020 $624,458 $596,095Denominator for basic and fully diluted book value per share:         Ordinary shares issued and outstanding as reported and denominator for basic book value per share 34,831,324  34,832,493  35,321,144  35,321,144  35,336,732Add: In-the-money stock options(1)and all outstanding RSUs 590,001  602,013  594,612  585,334  264,870Denominator for fully diluted book value per share 35,421,325  35,434,506  35,915,756  35,906,478  35,601,602          Basic book value per share$18.26 $19.05 $17.95 $17.68 $16.87Fully diluted book value per share$17.95 $18.72 $17.65 $17.39 $16.74               (1)Assuming net exercise by the grantee.                             

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