GLRE Earnings Beat Expectations

Rating Upgrades: AM Best has upgraded the Financial Strength Rating of Greenlight Reinsurance, Ltd. and Greenlight Reinsurance Ireland to A (Excellent) and the Long-Term Issuer Credit Ratings to "a" (Excellent), while also upgrading Greenlight Capital Re, Ltd. to "bbb" (Good).

Performance Improvement: The upgrades reflect GLRE's improved operating performance, stabilized investment results, and profitable underwriting results, with 2025 showing some of the strongest results in the company's history.

Business Profile and Risk Management: AM Best assesses GLRE's business profile as neutral, noting its long tenure in the reinsurance market and appropriate enterprise risk management practices that align with its business complexity.

Company Overview: Greenlight Reinsurance, incorporated in the Cayman Islands in 2004, provides global property/casualty reinsurance and has diversified its operations, including launching the Greenlight Re Innovations Syndicate 3456 at Lloyd's in 2022.

AM Best Ratings Upgrade: Greenlight Capital Re, Ltd. received an upgrade from AM Best, raising its Financial Strength Rating to "A" and Long-Term Issuer Credit Rating to "a" for its subsidiaries, reflecting a strong balance sheet and improved return metrics.

CEO's Statement: CEO Greg Richardson expressed pride in the upgraded rating, attributing it to the company's strategic efforts and record quarterly underwriting performance, positioning Greenlight Re for future market opportunities.

Forward-Looking Statements: The release includes forward-looking statements that involve risks and uncertainties, such as potential rating downgrades and investment performance, which could affect actual results.

Company Overview: Greenlight Re provides multiline property and casualty insurance and reinsurance, complemented by a non-traditional investment approach and an innovations unit that supports technology in the (re)insurance sector.

Record Underwriting Income: Greenlight Capital Re reported a record net underwriting income of $22.3 million for Q3 2025, with a combined ratio of 86.6%, the lowest in the company's history, reflecting strong margins and effective risk selection.

Premium Growth: The company experienced a 9.5% increase in gross premiums written, totaling $184.4 million for the third quarter, and a 10.3% increase for the nine months ended September 30, 2025, reaching $612.0 million.

Investment Losses: Despite strong underwriting results, Greenlight Re faced a total investment loss of $17.4 million in Q3 2025, contrasting with a total investment income of $30.3 million in the same quarter of the previous year.

Share Buybacks and Book Value: The company repurchased $2.0 million of shares at an average cost of $12.88 per share, with a slight decrease in fully diluted book value per share to $18.90 from $18.97 at the end of June 2025.

Greenlight Capital's Q2 2025 Trades: The hedge fund, led by David Einhorn, has initiated new positions in Fluor Corp. and Victoria’s Secret & Co., while exiting its stake in Varex Imaging Corp. It also adjusted existing holdings, increasing stakes in Albireo Pharma and Amgen, and reducing investments in Activision Blizzard and Bristol Myers Squibb.

Investment Strategy Insights: These trades reflect Greenlight Capital's dynamic investment strategy, indicating confidence in the future performance of Fluor and Victoria’s Secret, while suggesting a cautious outlook on Varex Imaging and other reduced holdings.

Earnings Call Overview: Greenlight Capital Re, Ltd. held its Q2 2025 earnings call on August 5, 2025, featuring key participants including CEO Greg Richardson and Chairman David Einhorn, discussing the company's performance and future outlook.

Forward-Looking Statements: The company emphasized that forward-looking statements made during the call are subject to risks and uncertainties, and actual results may differ from expectations; investors are encouraged to review SEC filings for more information.

Earnings Performance: Greenlight Capital Re reported a second quarter EPS of $0.01, exceeding analyst expectations by $0.36, despite a $7.8 million investment loss; net underwriting income rose significantly to $8.1 million with an improved combined ratio of 95.0%.

Growth Strategy and Challenges: The company is focusing on expanding its Innovations segment, which saw gross premiums written increase, but faced profitability challenges; overall, investment performance was a setback, contrasting with strong reinsurance results.