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1. Company Snapshot

1.a. Company Description

Greenlight Capital Re, Ltd., through its subsidiaries, operates as a property and casualty reinsurance company worldwide.The company offers various property reinsurance products and services, including automobile physical damage, personal lines, and commercial lines.It also provides casualty reinsurance products and services comprising general liability, motor liability, professional liability, and worker's compensation; and accident and health, transactional liability, mortgage insurance, surety, trade credit, marine, energy, aviation, crop, cyber, political, and terrorism products.


The company markets its products through reinsurance brokers.Greenlight Capital Re, Ltd.was incorporated in 2004 and is headquartered in Grand Cayman, the Cayman Islands.

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1.b. Last Insights on GLRE

Greenlight Capital Re, Ltd.'s recent performance was driven by record quarterly underwriting income, achieving a combined ratio of 86.6% in Q3 2025. The company's solid operational performance was highlighted by a 95% combined ratio in Q2 2025. Additionally, AM Best upgraded the Financial Strength Rating to "A" (Excellent) from "A-" (Excellent). The company also announced a $5 million share repurchase at $13.99 per share, signaling management's confidence in the stock's undervaluation. These factors contributed to the company's positive momentum.

1.c. Company Highlights

2. Greenlight Capital Re's Q3 2025 Earnings: A Mixed Bag

Greenlight Capital Re reported a net loss of $4.4 million in Q3 2025, resulting in a fully diluted book value per share decrease of 0.4% to $18.90. The company's earnings per share (EPS) came in at -$0.13, missing estimates of $0.1005. Despite the net loss, the company reported a record $22.3 million of underwriting income, driven by a combined ratio of 86.6%, its best quarterly combined ratio. Revenue growth is expected to be 9.4% next year, according to analyst estimates.

Publication Date: Nov -26

📋 Highlights
  • Q3 Net Loss:: Reported a $4.4M net loss, but year-to-date net income increased to $25.6M.
  • Underwriting Result:: Achieved a record $22.3M underwriting income with a best-ever 86.6% combined ratio.
  • Solasglas Fund Performance:: Returned -3.2% in Q3; short portfolio (-8.1%) underperformed long/macro positions (+1.7%, +3.3%).
  • Open Market Segment:: Generated $27.9M pretax income, improving combined ratio to 84.5% (vs. 94.5% in Q3 2024).
  • Debt Management:: Reduced debt leverage ratio to 5.3% from 9.5% year-to-date, including term loan refinancing.

Segment Performance

The Open Market segment reported a pretax income of $27.9 million, composed of underwriting income of $22.2 million and investment income of $5.6 million. The combined ratio for the Open Market segment improved by 10 points to 84.5% compared to 94.5% for the same period in 2024. In contrast, the Innovation segment grew net written premiums by 57.5% to $22.3 million but reported a net loss of $11.3 million due to an investment impairment.

Investment Performance and Macro Views

The Solasglas fund returned negative 3.2% in the third quarter, with the long portfolio and macro contributing 1.7% and 3.3%, respectively, while the short portfolio detracted 8.1%. David Einhorn mentioned that the company has been cautious on the broader housing market and has maintained a nearly fully hedged position by shorting a basket of national homebuilders. The company also maintains a core position in gold, is long SOFR futures out into 2026, and holds inflation swaps.

Valuation and Outlook

With a Price-to-Book Ratio (P/B) of 0.67, the stock appears to be undervalued. David Einhorn expressed his long-term view on the company's future, stating that he believes the company has made enough structural improvement to earn a return on equity greater than its cost of equity and that the shares should trade at or above book value. The company's ROE is currently -0.28%, and the ROIC is 7.68%. The current valuation metrics suggest that the market is pricing in a challenging environment, but the company's efforts to improve its underwriting profitability and manage its capital and debt are positive signs.

3. NewsRoom

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AM Best Upgrades Credit Ratings of Greenlight Capital Re, Ltd. and Its Subsidiaries

Nov -13

Source: businesswire.com

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AM Best Upgrades Financial Strength Rating of Greenlight Reinsurance, Ltd. and Greenlight Reinsurance Ireland, DAC to “A” (Excellent)

Nov -13

Source: globenewswire.com

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Greenlight Capital Re, Ltd. (GLRE) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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Greenlight Re Announces Financial Results for Third Quarter and Nine Months Ended September 30, 2025

Nov -03

Source: globenewswire.com

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Greenlight Capital Re, Ltd. Schedules Third Quarter 2025 Financial Results and Conference Call

Oct -28

Source: globenewswire.com

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Greenlight Capital Re: Transparency Improves, But Execution Still Matters

Aug -27

Source: seekingalpha.com

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Greenlight Capital Re, Ltd. (GLRE) Q2 2025 Earnings Conference Call Transcript

Aug -05

Source: seekingalpha.com

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GLRE Earnings Beat Expectations

Aug -05

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.77%)

6. Segments

Casualty - Multi-line

Expected Growth: 9%

Greenlight Capital Re's Casualty - Multi-line segment growth of 9% is driven by increasing demand for specialty insurance products, expansion into new markets, and a strong underwriting discipline. Additionally, the company's ability to offer customized coverage solutions and its focus on risk management also contribute to its growth.

Casualty - General Liability

Expected Growth: 11%

Strong underwriting discipline, favorable reserve development, and a diversified portfolio of casualty and general liability risks contribute to the 11% growth. Additionally, Greenlight Capital Re's expertise in identifying and capitalizing on niche opportunities, combined with a robust risk management framework, drive premium expansion and profitability.

Other - Other Specialty

Expected Growth: 8%

Greenlight Capital Re's Other Specialty segment growth is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic partnerships. The 8% growth rate is also attributed to the company's ability to underwrite niche risks and provide customized solutions, resulting in higher premiums and revenue growth.

Property - Personal

Expected Growth: 7%

Greenlight Capital Re's 7% growth in Personal Property segment is driven by increasing demand for homeowners and renters insurance, favorable regulatory environment, and strategic partnerships. Additionally, the company's focus on digitalization and data analytics has improved underwriting efficiency, leading to higher premiums and revenue growth.

Other - Financial

Expected Growth: 6%

Greenlight Capital Re's 6% growth in 'Other - Financial' is driven by increasing demand for reinsurance products, expansion into new markets, and a growing investment portfolio. Additionally, the company's focus on niche markets and its ability to capitalize on market dislocations have contributed to its growth.

Property - Commercial

Expected Growth: 12%

Greenlight Capital Re's Commercial Property segment growth of 12% is driven by increasing demand for commercial real estate, rising property values, and growing rental yields. Additionally, the company's strategic expansion into new markets, improved underwriting practices, and favorable regulatory environment contribute to its growth momentum.

Other - Marine

Expected Growth: 5%

Greenlight Capital Re's 'Other - Marine' segment growth is driven by increasing global trade, rising ship values, and growing demand for marine insurance. Additionally, the company's expansion into new markets, improved underwriting capabilities, and strategic partnerships contribute to its 5% growth.

Casualty - Motor Liability

Expected Growth: 10%

Casualty - Motor Liability growth driven by increasing vehicle sales, rising claims frequency and severity, and favorable regulatory environment. Additionally, Greenlight Capital Re's expertise in underwriting and risk selection, as well as its ability to capitalize on market dislocations, contribute to the 10% growth.

Casualty - Professional Liability

Expected Growth: 9%

Greenlight Capital Re's 9% growth in Casualty - Professional Liability is driven by increasing demand for liability coverage from professionals, expansion into new markets, and a favorable regulatory environment. Additionally, the company's strong underwriting discipline, diversified portfolio, and effective risk management strategies contribute to its growth.

Casualty - Worker's Compensation

Expected Growth: 8%

Strong underwriting discipline, favorable regulatory environment, and increasing demand for workers' compensation insurance drive growth. Greenlight Capital Re's expertise in casualty lines and strategic partnerships also contribute to the 8% growth. Additionally, a low combined ratio and effective claims management enable the company to maintain profitability while expanding its market share.

Other - Accident & Health

Expected Growth: 7%

Strong underwriting discipline, favorable reserve development, and strategic partnerships drive the 7% growth in Accident & Health segment. Additionally, expansion into new markets, increased demand for specialty health products, and effective risk management practices contribute to the segment's growth.

Property - Motor

Expected Growth: 11%

Greenlight Capital Re's Motor Property segment growth of 11% is driven by increasing vehicle sales, rising premium rates, and expansion into new markets. Additionally, favorable regulatory environments, improved underwriting practices, and a growing demand for motor insurance products also contribute to this growth.

7. Detailed Products

Reinsurance

Greenlight Capital Re provides reinsurance products to insurance companies, helping them to manage their risk and increase their capacity to write new business.

Insurance-Linked Securities (ILS)

Greenlight Capital Re offers ILS products, which allow investors to invest in insurance-related risks and returns.

Retrocession

Greenlight Capital Re provides retrocession products to other reinsurers, helping them to manage their risk and increase their capacity to write new business.

Specialty Insurance

Greenlight Capital Re offers specialty insurance products, including aviation, marine, and energy insurance.

8. Greenlight Capital Re, Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Greenlight Capital Re, Ltd. operates in the reinsurance industry, which has a moderate threat of substitutes. While there are alternative risk management strategies, reinsurance remains a crucial component of the industry.

Bargaining Power Of Customers

Greenlight Capital Re, Ltd.'s customers, primarily insurance companies, have limited bargaining power due to the company's specialized services and expertise in the reinsurance market.

Bargaining Power Of Suppliers

Greenlight Capital Re, Ltd. has a diversified portfolio of investments, reducing its dependence on any single supplier, thereby limiting the bargaining power of its suppliers.

Threat Of New Entrants

The reinsurance industry has a high barrier to entry due to regulatory requirements and capital requirements, but new entrants can still disrupt the market, posing a significant threat to Greenlight Capital Re, Ltd.'s market share.

Intensity Of Rivalry

The reinsurance industry is highly competitive, with many established players, leading to a high intensity of rivalry. Greenlight Capital Re, Ltd. must differentiate itself through its investment strategy and underwriting expertise to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.03%
Debt Cost 7.95%
Equity Weight 88.97%
Equity Cost 7.95%
WACC 7.95%
Leverage 12.40%

11. Quality Control: Greenlight Capital Re, Ltd. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Barings

A-Score: 7.3/10

Value: 2.6

Growth: 4.6

Quality: 8.8

Yield: 10.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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General American Investors Company

A-Score: 7.2/10

Value: 5.3

Growth: 2.8

Quality: 8.9

Yield: 9.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Crescent Capital BDC

A-Score: 6.8/10

Value: 6.3

Growth: 7.4

Quality: 6.3

Yield: 10.0

Momentum: 1.5

Volatility: 9.3

1-Year Total Return ->

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Conduit Holdings

A-Score: 6.5/10

Value: 6.8

Growth: 10.0

Quality: 6.6

Yield: 9.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Greenlight Capital Re

A-Score: 5.6/10

Value: 8.8

Growth: 5.4

Quality: 6.6

Yield: 0.0

Momentum: 3.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Maiden Holdings

A-Score: 3.2/10

Value: 7.8

Growth: 3.0

Quality: 3.3

Yield: 0.0

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.92$

Current Price

13.92$

Potential

-0.00%

Expected Cash-Flows