OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to "a†(Excellent) from "a-†(Excellent) of Greenlight Reinsurance, Ltd. (Cayman Islands) and Greenlight Reinsurance Ireland, Designated Activity Company (Ireland). Concurrently, AM Best has upgraded the Long-Term ICR to "bbb†(Good) from "bbb-†(Good) of Greenlight Capital Re, Ltd. (Cayman Islands) (GLRE) [NASDAQ: GLRE],. ...

Core Insights - Greenlight Capital Re, Ltd. has received an upgrade in its Financial Strength Rating to "A" from "A-" and the Long-Term Issuer Credit Rating to "a" from "a-" for its subsidiaries, reflecting strong financial health and operational performance [1][2] - The ratings upgrade is attributed to the company's strong balance sheet, adequate operating performance, neutral business profile, and effective enterprise risk management [2] - The company's CEO highlighted the achievement as a recognition of the progress made in transforming the underwriting portfolio and the strength of the long-term strategy, alongside record quarterly underwriting performance [2] Financial Ratings - AM Best upgraded the Financial Strength Rating of Greenlight Reinsurance, Ltd. and Greenlight Reinsurance Ireland, DAC to "A" (Excellent) from "A-" (Excellent) [1] - The Long-Term Issuer Credit Rating for the company was upgraded to "a" (Excellent) from "a-" (Excellent) [1] - The Long-Term Issuer Credit Rating for the company was also upgraded to "bbb" (Good) from "bbb-" (Good) [1] Company Overview - Greenlight Re provides multiline property and casualty insurance and reinsurance through its licensed entities in the Cayman Islands and Ireland, as well as its Lloyd's platform [4] - The company employs a non-traditional investment approach aimed at achieving higher long-term returns compared to traditional reinsurance investment strategies [4] - The Greenlight Re Innovations unit supports technology innovators in the (re)insurance sector by providing investment capital, risk capacity, and access to a broad insurance network [4]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported a net loss of $4.4 million, compared to a net income of $35.2 million in Q3 2024, resulting in a negative $0.13 per diluted share [15] - The fully diluted book value per share decreased by 0.4% in the quarter to $18.90 but increased by 5.3% year-to-date [4][20] - The combined ratio improved to 86.6%, which is 9.3 points better than the same period last year, driven by a lack of catastrophic losses and improvements in the current-year attritional loss ratio [15] Business Line Data and Key Metrics Changes - The open market segment reported a pre-tax income of $27.9 million, with net written premiums growing by 9.5% to $140.4 million and net earned premiums increasing by 14.1% [16] - The open market combined ratio improved by 10 points to 84.5% compared to 94.5% in Q3 2024, with a significant improvement in the current-year loss ratio [17] - The innovation segment grew net written premiums by 57.5% to $22.3 million, although the combined ratio increased to 96.7% from 93.6% in the previous year [18][19] Market Data and Key Metrics Changes - The investment performance for the quarter resulted in a loss of $17.4 million, primarily due to the Solasglas portfolio and unrealized losses in the innovations investment portfolio [6][15] - The Solasglas fund returned negative 3.2% in Q3, while the S&P 500 index advanced 8.1% during the same period [9] Company Strategy and Development Direction - The company is focused on one-to-one renewals in the open market reinsurance business, expecting to renew most of its non-cash business and potentially grow [8] - The innovation segment is anticipated to continue strong organic growth from existing clients and new business opportunities, despite a softening market [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underwriting portfolio's ability to deliver strong returns, despite the investment losses in Q3 [5] - The company believes it should earn a return on equity greater than its cost of equity, and the shares should trade at or above book value [29] Other Important Information - The company repurchased 512,000 shares for $7 million during the first nine months of 2025, which has been accretive to book value per share [20] - The debt leverage ratio was reduced to 5.3% from 9.5% at the beginning of the year, with additional repayments made in October [21] Q&A Session Summary Question: Update on the macro part of the Solasglas Fund - Management maintains a core position in gold and is long SOFR futures, expecting the Fed to reduce interest rates more than the market anticipates [25] Question: Long-term future of the company - Management believes the company has made structural improvements and should earn a return on equity greater than its cost of equity, expressing no intention to liquidate the company [29]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported a net loss of $4.4 million, bringing year-to-date net income to $25.6 million [5][21] - Fully diluted book value per share decreased by 0.4% in the quarter to $18.9, but increased by 5.3% year-to-date [5][27] - The company achieved a record quarterly combined ratio of 86.6%, resulting in $22.3 million of underwriting income, which was 9.3 points better than the same period last year [5][21] Business Line Data and Key Metrics Changes - The Open Market segment reported a pretax income of $27.9 million, with net written premiums growing by 9.5% to $140.4 million and net earned premiums increasing by 14.1% [22][23] - The Open Market combined ratio improved by 10 points to 84.5% compared to 94.5% in Q3 2024, driven by a lower loss ratio and acquisition costs [23] - The Innovation segment grew net written premiums by 57.5% to $22.3 million, although net earned premiums decreased by $800,000 due to increased retroceded premiums [24][25] Market Data and Key Metrics Changes - The investment performance for the quarter resulted in a loss of $17.4 million, primarily due to the SolasGlass portfolio and unrealized losses in the Innovations investment portfolio [9][21] - The SolasGlass Fund returned negative 3.2% in Q3, while the S&P 500 Index advanced 8.1% [14] Company Strategy and Development Direction - The company is focused on one-on-one renewals, expecting to renew most of its non-casualty business and potentially grow [12] - The company anticipates continued strong organic growth from existing Innovations clients and attractive new business opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underwriting portfolio's ability to deliver strong returns, despite a softening market [12] - The company believes it has made structural improvements that should allow it to earn a return on equity greater than its cost of equity [36] Other Important Information - The company repurchased 512,000 shares for $7 million during the first nine months of 2025, which has been accretive to book value per share [26] - The company reduced its debt leverage ratio to 5.3% from 9.5% at the beginning of the year [27] Q&A Session Summary Question: Update on the macro part of the SolasGlass Fund - Management maintains a core position in gold and is long SOFR futures, expecting the Fed to reduce interest rates more than the market anticipates [30][32] Question: Long-term future of the company - Management believes the company has made enough structural improvements to justify trading at or above book value and does not see liquidation as a solution [36]

Financial Performance - Greenlight Capital Re's gross premiums written reached $756 million[10] - The company's shareholders' equity stands at $659 million[10] - Cumulative book value growth from 2020 to 2024 was 33.8%[10] - Shares repurchased over the past five quarters amounted to $14.5 million[10], representing 3% of outstanding shares[38] - In Q3 2025, 155,249 ordinary shares were repurchased at a cost of $2 million[12], with $23 million remaining for share purchases[12] - Debt leverage decreased from 16% at the end of 2022 to 5% as of Q3 2025[12] Underwriting Performance - Gross premiums written for Q3 2025 were $184.4 million[21], compared to $168.3 million in Q3 2024[21] - The combined ratio for Q3 2025 was 86.6%[21], the lowest in the company's history[21] - Net underwriting income for Q3 2025 was $22.3 million[21], compared to $6.1 million in Q3 2024[21] Solasglas Investments - Solasglas Investments, LP's annual average returns since 2020 are 9.3%[32] - Solasglas Investments, LP's annual average returns since inception are 5.3%[32] - Solasglas Investments, LP's 2025 YTD returns (through October) are 1.2%[32] - Solasglas Investments, LP return in Q3 2025 was (3.2)%[33]

Financial Performance - For Q3 2025, the company reported a net loss of $4.4 million, a significant decline from a net income of $35.2 million in Q3 2024[121] - Net underwriting income for Q3 2025 was $22.3 million, compared to $6.1 million in Q3 2024[126] - Total investment loss was $17.4 million, contrasting with total investment income of $30.3 million in the previous year[126] - For the nine months ended September 30, 2025, net income decreased by $44.7 million to $25.6 million compared to the same period in 2024, primarily due to adverse loss development[135] - The Innovations segment reported a net investment loss of $11.3 million in Q3 2025, compared to net investment income of $0.3 million in Q3 2024, primarily due to an impairment charge[178] - The loss before income taxes for the Innovations segment was $11.3 million in Q3 2025, compared to income before income taxes of $1.1 million in Q3 2024, largely due to net investment losses[180] Premiums and Underwriting - Gross premiums written increased by 9.5% to $184.4 million, while net premiums earned rose by 8.9% to $165.4 million[126] - Gross premiums written for the Open Market segment increased by 3.1% to $154.994 million in Q3 2025, compared to $150.331 million in Q3 2024, while net premiums written rose by 9.5% to $140.372 million[139] - Net premiums written in Q3 2025 were $140.4 million, a significant increase from $128.2 million in Q3 2024, driven by a 33.8% decrease in ceded premiums written[142] - Net premiums earned in Q3 2025 increased by $17.9 million or 14.1% compared to Q3 2024, influenced by the timing of net premiums written and business mix[145] - The net loss and LAE incurred for the Open Market segment was $76.590 million in Q3 2025, compared to $76.177 million in Q3 2024[139] Ratios and Performance Metrics - The combined ratio improved to 86.6% in Q3 2025, down from 95.9% in Q3 2024, reflecting a 9.3 percentage point decrease driven by a better current year loss ratio[133] - The attritional loss ratio improved to 49.6% in Q3 2025 from 55.6% in Q3 2024, indicating better underwriting performance[133] - The current year loss ratio for Q3 2025 decreased by 11.8 percentage points to 52.5%, primarily due to improved attritional loss ratios and no CAT event losses[147] - The loss ratio for Q3 2025 was 54.3%, a decrease of 1.7 percentage points from 56.1% in Q3 2024, influenced by changes in business mix and attritional loss ratios[169] - The acquisition cost ratio improved to 28.4% in Q3 2025 from 30.4% in Q3 2024, reflecting cost management efforts[133] Investment and Capital Management - Total investments increased by $59.7 million, or 13.0%, to $520.0 million from December 31, 2024, primarily driven by $70.2 million of net contributions into Solasglas[190] - Total shareholders' equity increased by $23.0 million to $658.9 million, primarily due to net income of $25.6 million reported for the period[202] - Total debt decreased by $26.0 million, or 42.8%, to $34.7 million from December 31, 2024, due to loan repayments from cash generated by underwriting operations[201] - Cash provided by operating activities increased by $28.0 million in YTD 2025 compared to YTD 2024, driven mainly by underwriting activities[205] Market Conditions and Risks - The company continues to face increased competition in the reinsurance market, particularly in the Open Market segment[123] - The economic outlook remains uncertain due to inflationary trends and aggressive trade policies enacted by the U.S. Administration[125] - The company continues to monitor market risks, including equity price risk, commodity price risk, and foreign currency risk, with no material changes since December 31, 2024[217] Accounting and Estimates - The company has not adopted any recent accounting pronouncements that could materially impact its financial results as of September 30, 2025[216] - Significant accounting estimates include premium revenues, loss reserves, and investment impairments, which could materially affect financial results if actual events differ from assumptions[214]

Premiums and Underwriting - Gross premiums written increased by 9.5% to $184.4 million in Q3 2025, compared to Q3 2024[6] - Net underwriting income for Q3 2025 was $22.3 million, a significant increase from $6.1 million in Q3 2024[6] - For the nine months ended September 30, 2025, gross premiums written increased by 10.3% to $612.0 million compared to the same period in 2024[6] - Gross premiums written totaled $611,950,000, a decrease from $628,377,000 in the previous period[16] - Net premiums written were $546,606,000, reflecting a decline from $562,682,000[16] - Net premiums earned reached $495,523,000, compared to $515,419,000 previously[16] - Underwriting income was $22,613,000, down from $24,298,000[16] - The combined ratio improved to 86.6% in Q3 2025, down from 95.9% in Q3 2024, marking the lowest in the company's history[5] - The combined ratio improved to 95.4%, down from 96.7%[16] - The loss ratio was 62.8%, compared to 61.3% in the previous period[16] Investment Performance - Total investment loss for Q3 2025 was $17.4 million, compared to total investment income of $30.3 million in Q3 2024[6] - The investment portfolio, Solasglas, experienced a loss of 3.2% during Q3 2025[7] - Net investment income totaled $15,807,000, compared to a loss of $2,950,000 in the prior period[16] Financial Results - Net loss for Q3 2025 was $4.4 million, or -$0.13 per diluted ordinary share, compared to a net income of $35.2 million, or $1.01 per diluted ordinary share in Q3 2024[6] - Income before income taxes was $27,705,000, a decrease from $35,960,000[16] - Net loss and LAE incurred amounted to $311,556,000, an increase from $288,593,000[16] Equity and Book Value - The fully diluted book value per share decreased by 0.4% to $18.90 as of September 30, 2025, from $18.97 at June 30, 2025[6] - Basic book value per share is $19.32 as of September 30, 2025, compared to $19.40 on June 30, 2025[29] - Fully diluted book value per share is $18.90 as of September 30, 2025, compared to $18.97 on June 30, 2025[29] - Total equity reported under U.S. GAAP as of September 30, 2025, is $658.889 million[29] - Total equity reported under U.S. GAAP was $663.418 million as of September 30, 2024[29] - Basic book value per share was $18.26 as of December 31, 2024[29] - Fully diluted book value per share was $17.95 as of December 31, 2024[29] - The number of ordinary shares outstanding decreased from 34,831,324 on December 31, 2024, to 34,099,226 on September 30, 2025[29] - Ordinary shares issued and outstanding as of September 30, 2025, is 34,099,226[29] - In-the-money stock options and all outstanding RSUs total 757,505 as of September 30, 2025[29] - Denominator for fully diluted book value per share is 34,856,731 as of September 30, 2025[29] Assets - The total assets of the company increased to $2.134 billion as of September 30, 2025, compared to $2.016 billion at December 31, 2024[13]

Core Insights - Greenlight Capital Re achieved record quarterly underwriting income with a combined ratio of 86.6%, the lowest in the company's history, indicating strong margins and effective risk selection [3][5][11] - The investment environment remains challenging, with the Solasglas investment portfolio experiencing a loss of 3.2% during the third quarter, which negatively impacted overall results despite strong underwriting performance [3][5] Financial Performance - Gross premiums written increased by 9.5% to $184.4 million in Q3 2025, while net premiums earned rose by 8.9% to $165.4 million [5][11] - Net underwriting income for Q3 2025 was $22.3 million, a significant increase from $6.1 million in Q3 2024 [5][11] - The total investment loss for Q3 2025 was $17.4 million, compared to total investment income of $30.3 million in the same period last year [5][11] - The net loss for Q3 2025 was $4.4 million, or -$0.13 per diluted ordinary share, compared to a net income of $35.2 million, or $1.01 per diluted ordinary share in Q3 2024 [5][11] Underwriting Metrics - The combined ratio for the nine months ended September 30, 2025, was 95.4%, an improvement from 97.9% in the same period of 2024 [5][11] - The current year loss ratio for Q3 2025 was 53.1%, down from 65.0% in Q3 2024, indicating improved underwriting efficiency [12][11] - The acquisition cost ratio for Q3 2025 was 28.4%, compared to 30.4% in Q3 2024, reflecting better cost management [12][11] Shareholder Actions - The company repurchased $2.0 million of shares at an average cost of $12.88 per share during the quarter [5][11] - Fully diluted book value per share decreased by 0.4% to $18.90 from $18.97 at June 30, 2025 [5][11]

Core Insights - Greenlight Capital Re, Ltd. is set to release its financial results for Q3 and the nine months ending September 30, 2025, after market close on November 3, 2025 [1] - A live conference call to discuss these results will take place on November 4, 2025, at 9:00 a.m. Eastern Time [1] Company Overview - Greenlight Re operates as a multiline property and casualty insurer and reinsurer, with licensed entities in the Cayman Islands and Ireland, as well as a Lloyd's platform [3] - The company employs a non-traditional investment strategy aimed at achieving higher long-term returns compared to traditional reinsurance investment approaches [3] - Greenlight Re Innovations, the company's innovation unit, provides investment capital and risk capacity to technology innovators in the (re)insurance sector [3] Conference Call Details - Participants can join the earnings call by dialing U.S. toll-free 1-877-407-9753 or international 1-201-493-6739 [2] - The call will also be available via webcast [2] - A telephone replay will be accessible until November 9, 2025, with specific dial-in numbers provided for U.S. and international callers [2]

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