Breaking Down Greenlight Capital Re, Ltd. (GLRE) Financial Health: Key Insights for Investors

Are you keeping a close watch on Greenlight Capital Re, Ltd. (GLRE) and wondering about its financial stability? After a challenging Q4, how will GLRE navigate the financial landscape in 2025? Let’s delve into the key insights from 2024, where, despite a net underwriting loss of $8.2 million, the company saw gross premiums written increase by 9.7% to $698.3 million and a 7.2% growth in fully diluted book value per share, reaching $17.95.

Greenlight Capital Re, Ltd. (GLRE) Revenue Analysis

Understanding Greenlight Capital Re, Ltd.'s (GLRE) revenue streams is crucial for investors seeking insights into the company's financial health and future prospects. A comprehensive analysis involves examining the primary sources of revenue, tracking year-over-year growth, and assessing the contributions of different business segments.

Effective December 31, 2024, Greenlight Capital Re, Ltd. (GLRE) restructured its reportable segments to better align with its multi-pillar strategy. Moving forward, the company reports financial results under two segments: Open Market and Innovations.

• Open Market: Likely represents traditional reinsurance.
• Innovations: Encompasses their strategic investments in InsurTech and specialty program business.

Here's a breakdown of Greenlight Capital Re, Ltd.'s (GLRE) revenue streams:

Primary Revenue Sources:

• Gross Premiums Written: For the full year 2024, gross premiums written increased by 9.7% to $698.3 million.
• Net Premiums Earned: Net premiums earned increased by 6.3% to $620.0 million.

Year-Over-Year Revenue Growth Rate:

• The annual revenue for 2024 was $701.63 million, reflecting a 7.08% growth.
• However, WallStreetZen reports $696.03M for the trailing 12 months ending Dec 31, 2024, with 4.3% growth year over year.
• Greenlight Capital Re's revenue growth for fiscal years ending December 2020 to 2024 averaged 6.3%.

Historical Trends:

Reviewing the past revenue growth provides context:

• In 2023, revenue growth peaked at 23.1%.
• The lowest revenue growth was in 2020 at -10.5%.

Contribution of Business Segments:

After restructuring, the company reports financial results under two segments: Open Market and Innovations. Previously, Greenlight Capital Re Innovations supported technology innovators in the (re)insurance space by providing investment capital, risk capacity, and access to a broad insurance network.

Significant Changes in Revenue Streams:

Factors impacting revenue streams in 2024 included:

• Strengthening of Open Market specialty reserves related to aviation losses from the 2022 Russia-Ukraine conflict.
• Catastrophe losses including Hurricane Milton, the Jeju Air plane crash, and other marine and energy related events.

The combined ratio for 2024 included 2.4% related to the Russia-Ukraine conflict and 9.3% related to catastrophes.

While the company did not provide specific guidance for the next reporting period, the management's comments suggest a focus on leveraging the strengthened organization and balance sheet to drive shareholder value in the coming year.

For more insights, read this comprehensive analysis: Breaking Down Greenlight Capital Re, Ltd. (GLRE) Financial Health: Key Insights for Investors

Greenlight Capital Re, Ltd. (GLRE) Profitability Metrics

Analyzing the profitability of Greenlight Capital Re, Ltd. (GLRE) involves examining various metrics that provide insights into the company's financial health and operational efficiency. Here's a detailed breakdown:

For the full year 2024, Greenlight Capital Re, Ltd. (GLRE) reported a net income of $42.8 million, or $1.24 per diluted ordinary share, a decrease compared to 2023 when the net income was $86.8 million, or $2.50 per diluted ordinary share.

In Q4 2024, Greenlight Capital Re Ltd (GLRE) reported a net loss of $27.4 million, or a loss of $0.81 per diluted share, compared to net income of $17.6 million, or $0.50 per diluted share during the fourth quarter of 2023.

Here's an overview of Greenlight Capital Re, Ltd. (GLRE)'s profitability metrics for the full year 2024:

• Gross Premiums Written: Increased by 9.7% to $698.3 million.
• Net Premiums Earned: Increased by 6.3% to $620.0 million.
• Net Underwriting Loss: $8.2 million compared to a net underwriting income of $32.0 million in the previous year.
• Combined Ratio: 101.4%, compared to 94.5% in the previous year.
• Total Investment Income: $79.6 million, compared to $72.1 million.
• Net Income: $42.8 million, or $1.24 per diluted ordinary share, compared to $86.8 million, or $2.50 per diluted ordinary share.

The underwriting loss of $8.2 million for FY 2024 was notably different from the net underwriting income of $32 million in 2023, influenced by reserve strengthening and catastrophe losses, including events like the Baltimore Bridge collapse and Hurricanes Helene and Milton.

The combined ratio for 2024 was 101.4%, which included 2.4% related to the Russia-Ukraine conflict and 9.3% related to catastrophes. The investment portfolio, Solasglas, achieved a 9.8% return for 2024.

The company's underwriting loss of $18.0 million in Q4 2024 was primarily driven by:

• Strengthening of Open Market specialty reserves related to aviation losses from the 2022 Russia-Ukraine conflict.
• 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 the Russia-Ukraine conflict and 11.9% related to catastrophes.

Here is a table summarizing key financial figures for Greenlight Capital Re, Ltd. (GLRE) in 2024:

Greenlight Capital Re, Ltd. (GLRE)'s operating margin as of April 2025 (TTM) is 6.72%. At the end of 2024, the company had an operating margin of 6.72%. In 2023, the operating margin was 13.75%.

Relevant insight: Mission Statement, Vision, & Core Values of Greenlight Capital Re, Ltd. (GLRE).

Greenlight Capital Re, Ltd. (GLRE) Debt vs. Equity Structure

Understanding how Greenlight Capital Re, Ltd. (GLRE) finances its operations and growth is crucial for investors. This involves analyzing its debt levels, debt-to-equity ratio, and overall approach to balancing debt and equity.

As of the fiscal year 2024, Greenlight Capital Re, Ltd. (GLRE) showcases a financial structure with particular attention to debt management. While specific figures for long-term and short-term debt for 2024 were not available in the immediate search results, analyzing the company's approach to debt in comparison to its equity provides valuable insights.

The debt-to-equity ratio is a key metric in assessing a company's financial leverage. It indicates the proportion of equity and debt a company uses to finance its assets. Unfortunately, specific debt-to-equity ratio for Greenlight Capital Re, Ltd. (GLRE) in 2024 was not found in the provided search results. For context, a high ratio signals that a company relies more on debt, which can amplify both gains and losses, whereas a lower ratio suggests a more conservative approach. It's important to compare this ratio against industry standards to gauge whether Greenlight Capital Re, Ltd. (GLRE)'s leverage is typical for its sector.

Recent activities such as debt issuances, credit ratings, or refinancing can significantly impact a company's financial health. Without specific information on these activities for Greenlight Capital Re, Ltd. (GLRE) in 2024 from the search results, it's challenging to provide a detailed analysis. Monitoring these activities is essential because they can affect the company’s interest expenses, cash flow, and overall financial stability.

The balance between debt and equity is a strategic decision that reflects a company's risk tolerance and growth strategy. Here are some general considerations:

• Debt Financing: Can provide capital for growth without diluting ownership. However, it comes with fixed repayment obligations and interest expenses.
• Equity Funding: Does not require repayment but dilutes existing shareholders' ownership. It provides a cushion during financial downturns.

Without up-to-date figures for 2024, a comprehensive assessment of Greenlight Capital Re, Ltd. (GLRE)'s debt versus equity structure is limited. Investors should seek the latest financial reports and filings for a complete picture.

Explore more about Greenlight Capital Re, Ltd. (GLRE): Exploring Greenlight Capital Re, Ltd. (GLRE) Investor Profile: Who’s Buying and Why?

Greenlight Capital Re, Ltd. (GLRE) Liquidity and Solvency

When evaluating the financial health of Greenlight Capital Re, Ltd. (GLRE), understanding its liquidity and solvency is crucial. These metrics provide insights into the company's ability to meet its short-term obligations and long-term financial stability.

Assessing Greenlight Capital Re, Ltd.'s Liquidity:

Liquidity ratios measure a company's ability to cover its short-term liabilities with its short-term assets. Key ratios to consider include:

• Current Ratio: This ratio is calculated by dividing current assets by current liabilities. It indicates whether a company has enough short-term assets to cover its short-term liabilities.
• Quick Ratio: Also known as the acid-test ratio, this is calculated by subtracting inventories from current assets and dividing by current liabilities. It's a more conservative measure than the current ratio because it excludes inventories, which may not be easily convertible to cash.

Analysis of working capital trends is also vital. Working capital, which is the difference between current assets and current liabilities, indicates the company's operational liquidity. Monitoring changes in working capital can reveal whether the company's short-term financial health is improving or deteriorating.

Cash Flow Statements Overview:

An overview of cash flow statements is essential to understanding Greenlight Capital Re, Ltd.'s liquidity. The cash flow statement is divided into three main sections:

• Operating Activities: This section reflects the cash generated or used from the company's core business operations.
• Investing Activities: This includes cash flow from the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This section involves cash flow from debt, equity, and dividends.

By examining these trends, investors can gain a better understanding of Greenlight Capital Re, Ltd.'s ability to generate cash and manage its financial obligations. Consistent positive cash flow from operating activities generally indicates strong financial health, while negative trends may raise concerns.

Here's a comprehensive overview of how to understand the significance of cash flows:

• Operating Cash Flow: A positive trend here suggests the company is effectively generating cash from its core operations. Declining operating cash flow might indicate operational inefficiencies or market challenges.
• Investing Cash Flow: Significant cash outflows in this category could mean the company is making substantial investments for future growth. Conversely, inflows might indicate the company is divesting assets.
• Financing Cash Flow: This area shows how the company is managing its capital structure. Raising debt or equity can provide financial flexibility, while consistent dividend payments reflect a commitment to shareholder returns.

Potential liquidity concerns or strengths can be identified by analyzing these factors. For example, a high current ratio coupled with positive cash flow from operating activities would suggest a strong liquidity position. Conversely, a declining current ratio and negative cash flow could indicate potential liquidity problems.

Explore further insights on Greenlight Capital Re, Ltd. (GLRE) financial health: Breaking Down Greenlight Capital Re, Ltd. (GLRE) Financial Health: Key Insights for Investors

Greenlight Capital Re, Ltd. (GLRE) Valuation Analysis

Determining whether Greenlight Capital Re, Ltd. (GLRE) is overvalued or undervalued requires a look at several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, and analyst consensus.

Currently, comprehensive real-time data for these specific ratios for Greenlight Capital Re, Ltd. is not available. Typically, these ratios are compared against industry averages and historical data to assess valuation. For instance, a high P/E ratio compared to its peers might suggest overvaluation, while a low P/B ratio could indicate undervaluation. Keep in mind that data from the 2024 fiscal year is most relevant for current analysis.

Analyzing stock price trends provides insight into market sentiment and historical performance. Over the past 12 months, fluctuations in the stock price can reflect broader market trends, company-specific news, and investor confidence. Significant price increases might suggest growing optimism, while declines could indicate concerns about the company's future prospects.

Dividend yield and payout ratios are crucial for investors seeking income. If Greenlight Capital Re, Ltd. offers dividends, the yield (annual dividend per share divided by the stock price) indicates the return on investment from dividends alone. The payout ratio (percentage of earnings paid out as dividends) shows the sustainability of these dividends. A high yield with a sustainable payout ratio is generally attractive.

Analyst consensus provides a summarized view of professional opinions on the stock. Ratings such as 'buy,' 'hold,' or 'sell' reflect analysts' expectations for the stock's future performance. A consensus of 'buy' suggests analysts believe the stock is undervalued and likely to increase in price, while a 'sell' rating indicates the opposite.

For a deeper dive into the investors behind Greenlight Capital Re, Ltd., consider reading: Exploring Greenlight Capital Re, Ltd. (GLRE) Investor Profile: Who’s Buying and Why?

Greenlight Capital Re, Ltd. (GLRE) Risk Factors

Greenlight Capital Re, Ltd. (GLRE) faces a variety of internal and external risks that could significantly impact its financial health. These risks span across industry competition, regulatory changes, and market conditions. Understanding these potential challenges is crucial for investors. You can also learn more about the company's goals at Mission Statement, Vision, & Core Values of Greenlight Capital Re, Ltd. (GLRE).

Industry Competition: The reinsurance industry is highly competitive. Consolidation among competitors, customers, and brokers could lead to enhanced market power for larger entities, potentially squeezing margins and reducing opportunities for Greenlight Capital Re. GLRE operates as a specialist property and casualty reinsurer, competing with larger, more established companies. Intense competition may affect GLRE's ability to secure favorable reinsurance contracts and maintain profitability.

Regulatory Changes: As a reinsurer with operations in the Cayman Islands, Ireland, and through its Lloyd's platform, Greenlight Capital Re is subject to extensive regulatory oversight. Changes in regulations, including those related to minimum capital requirements, could impose further restrictions on its operations and impact its financial condition. Any suspension or revocation of licenses in these jurisdictions could severely impact its ability to conduct business. It's also subject to the risk of possibly becoming an investment company under U.S. federal securities law.

Market Conditions:

• Catastrophic Events: Property and casualty reinsurance operations make Greenlight Capital Re vulnerable to losses from catastrophes such as hurricanes, earthquakes, and other natural disasters.
• Investment Performance: Investment performance depends on the performance of Solasglas Investments, LP. Fluctuations in the fair values of its investments, particularly those made under the Greenlight Re Innovations segment, can lead to significant differences between carrying values and fair values.
• Geopolitical Risks: Events such as the Russia-Ukraine conflict can introduce geopolitical risks impacting the reinsurance market.

According to the 10-K report filed in 2025, several risk factors could adversely affect Greenlight Capital Re's business, operations, and financial results:

• Fluctuations in operating results from period to period.
• Potential for losses and loss adjustment expenses exceeding loss reserves.
• Possible downgrade or withdrawal of A.M. Best ratings.
• Vulnerability to losses from catastrophes.
• Risk of losing significant brokers or customers.

The company's underwriting loss of $18.0 million in the fourth quarter of 2024 was significantly impacted by:

• Strengthening of Open Market specialty reserves related to aviation losses from the 2022 Russia-Ukraine conflict.
• Catastrophe losses including Hurricane Milton and the Jeju Air plane crash.

The combined ratio for the fourth quarter of 2024 included 10.1% related to the Russia-Ukraine conflict and 11.9% related to catastrophes. For the full year 2024, the underwriting loss was primarily driven by:

• Strengthening of Open Market specialty reserves tied to the Russia-Ukraine conflict.
• Catastrophe losses, including the Baltimore Bridge collapse and Hurricanes Helene and Milton.

The combined ratio for 2024 included 2.4% related to the Russia-Ukraine conflict and 9.3% related to catastrophes. These events highlight the company's exposure to unpredictable and potentially severe losses.

Mitigation Strategies: While specific mitigation strategies aren't detailed, Greenlight Capital Re employs an enterprise risk management (ERM) framework deemed appropriate for its business complexity and overall risk profile by AM Best. The company also actively diversifies its business, including investments in innovation-related operations like the Greenlight Re Innovations Syndicate 3456 at Lloyd's, launched in 2022.

Greenlight Capital Re's financial performance is also subject to investment-related risks. At December 31, 2024, the company's investments consisted primarily of an investment in Solasglas. Equity securities held by Solasglas are subject to equity price risk, and their values may fluctuate based on market conditions. Moreover, changes to the SILP LPA increased the maximum Investment Portfolio to 60% of GLRE Surplus which can amplify both gains and losses.

Here is a summary of key financial figures for Greenlight Capital Re, Ltd. based on recent reports:

These figures show a mixed performance, with premium growth offset by underwriting losses, particularly due to specific events like the Russia-Ukraine conflict and various catastrophe losses.

Greenlight Capital Re, Ltd. (GLRE) Growth Opportunities

Identifying future growth prospects for Greenlight Capital Re, Ltd. (GLRE) involves analyzing several key factors, including strategic initiatives, market dynamics, and competitive positioning. The company's ability to capitalize on emerging opportunities within the reinsurance sector will be crucial for sustained growth.

Analysis of key growth drivers:

• Product Innovations: Greenlight Capital Re, Ltd. (GLRE) may focus on developing innovative reinsurance products that cater to evolving market needs, such as specialized coverage for emerging risks or customized solutions for specific client segments.
• Market Expansions: Exploring opportunities to expand into new geographic markets or niche segments within existing markets could drive growth. This might involve targeting regions with increasing insurance penetration or underserved areas with specific reinsurance needs.
• Acquisitions: Strategic acquisitions of smaller reinsurance companies or related businesses could provide Greenlight Capital Re, Ltd. (GLRE) with access to new markets, technologies, or expertise, accelerating its growth trajectory.

Future revenue growth projections and earnings estimates for Greenlight Capital Re, Ltd. (GLRE) would typically be based on detailed financial modeling, incorporating factors such as premium growth rates, investment income, and expense management. These projections are contingent upon various assumptions about market conditions, regulatory changes, and the company's ability to execute its strategic plans.

Strategic initiatives or partnerships that may drive future growth:

• Technological advancements: Investing in technology to improve underwriting processes, enhance risk assessment, and streamline operations could lead to greater efficiency and profitability.
• Partnerships: Forming strategic alliances with other insurance companies, technology providers, or distribution partners could expand Greenlight Capital Re, Ltd. (GLRE)'s reach and access to new markets.
• Diversification: Diversifying its reinsurance portfolio across different lines of business and geographic regions could reduce concentration risk and enhance stability.

Competitive advantages that position the company for growth might include:

• Underwriting Expertise: A strong track record of underwriting profitability and risk management could differentiate Greenlight Capital Re, Ltd. (GLRE) from its competitors and attract clients seeking reliable reinsurance coverage.
• Capital Strength: Maintaining a robust capital base provides Greenlight Capital Re, Ltd. (GLRE) with the financial flexibility to pursue growth opportunities, withstand market volatility, and meet its obligations to policyholders.
• Client Relationships: Building strong, long-term relationships with clients based on trust, transparency, and responsive service could foster loyalty and generate repeat business.

For more insights into Greenlight Capital Re, Ltd. (GLRE)'s financial health, check out: Breaking Down Greenlight Capital Re, Ltd. (GLRE) Financial Health: Key Insights for Investors