GLRE Greenlight Capital Re Ltd

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; and
• Net 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; and
• Fully 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, 2023
Assets
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 Consolidated
Gross 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 Consolidated
Gross 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 Consolidated
Gross 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 Consolidated
Gross 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, 2023
Numerator 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		$	596,095
Denominator 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			35,336,732
Add: In-the-money stock options(1)and all outstanding RSUs		590,001			602,013			594,612			585,334			264,870
Denominator 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		$	16.87
Fully diluted book value per share	$	17.95		$	18.72		$	17.65		$	17.39		$	16.74
(1)Assuming net exercise by the grantee.