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Greenlight Capital Re (GLRE)
NASDAQ:GLRE
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Greenlight Capital Re
(NASDAQ:GLRE)
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Rating:63Neutral
Price Target:
$15.00
▲(13.98% Upside)
The score is driven primarily by strong balance-sheet resilience and improved recent cash generation, partially offset by weakened TTM profitability and earnings volatility. Technicals are mildly supportive (positive MACD and price above key longer-term averages), while valuation is penalized by a deeply negative P/E and no stated dividend yield. The latest earnings call was mixed: strong underwriting and rising year-to-date book value were outweighed by significant investment losses and an innovation impairment.
Positive Factors
Strong Underwriting Performance
The strong underwriting performance with a low combined ratio indicates effective risk management and profitability in core operations, which is crucial for long-term sustainability in the reinsurance industry.
Financial Flexibility
The new credit facility enhances financial flexibility, allowing Greenlight Capital Re to better manage cash flow and support strategic initiatives, strengthening its market position over the long term.
Growth in Open Market Segment
The growth in the Open Market segment reflects successful market penetration and demand for Greenlight's reinsurance solutions, supporting revenue growth and competitive positioning.
Negative Factors
Investment Losses
Significant investment losses can impact overall profitability and capital reserves, posing a risk to financial stability and limiting growth opportunities in the long run.
Negative Operating Cash Flow
Negative operating cash flow highlights difficulties in cash generation, which can strain liquidity and hinder the company's ability to invest in growth or weather economic downturns.
Net Loss in Q3 2025
The net loss in Q3 2025 suggests ongoing financial challenges that could undermine investor confidence and affect the company's ability to sustain operations without strategic adjustments.
Greenlight Capital Re (GLRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$453.52M
Dividend YieldN/A
Average Volume (3M)163.85K
Price to Earnings (P/E)―
Beta (1Y)0.43
Revenue Growth5.83%
EPS Growth-101.38%
CountryUS
Employees75
SectorFinancial
Sector Strength70
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)-0.13
Shares Outstanding34,099,228
10 Day Avg. Volume274,013
30 Day Avg. Volume163,847
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)0.75
Price to Sales (P/S)0.71
P/FCF Ratio4.28
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue0.71
Enterprise Value/Gross Profit11.28
Enterprise Value/Ebitda93.05
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Greenlight Capital Re Business Overview & Revenue Model
Company DescriptionGreenlight Capital Re (GLRE) is a reinsurance and investment management company that specializes in providing property and casualty reinsurance products. Headquartered in the Cayman Islands, GLRE operates in the insurance sector, focusing on a range of reinsurance solutions for various risks, including those associated with natural disasters and other catastrophic events. The company is known for its unique approach by integrating investment management with its reinsurance operations, allowing it to leverage its capital effectively.
How the Company Makes MoneyGreenlight Capital Re generates revenue primarily through reinsurance premiums collected from insurance companies seeking to transfer risk. The company underwrites reinsurance contracts, earning income from the premiums paid by clients. Additionally, GLRE manages an investment portfolio, which contributes to its earnings through investment income and capital gains. The firm's investment strategy is closely linked to its reinsurance operations, with a focus on generating returns that exceed the cost of capital. Significant partnerships with various insurance firms and a disciplined underwriting process also play a crucial role in enhancing its profitability.
Greenlight Capital Re Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong underwriting results and growth in the open market segment. However, this was offset by significant investment losses and a net loss for the quarter. The company's strategic initiatives show promise, but current investment challenges weigh heavily on the overall performance.Q3-2025 Updates
Positive Updates
Exceptional Underwriting Results
Greenlight Re reported a record $22.3 million of underwriting income in Q3 2025, with a combined ratio of 86.6%, driven by strong underlying profitability and a benign catastrophe quarter.
Growth in Open Market Segment
The Open Market segment grew net written premiums by 9.5% to $140.4 million, with a combined ratio improvement of 10 points to 84.5% compared to the previous year.
Increase in Fully Diluted Book Value
Fully diluted book value per share increased 5.3% for the first 9 months of 2025, despite a 0.4% decrease in Q3.
Strong Performance in Gold Investments
Gold was the largest positive contributor to the Solasglas fund's performance, with its price rising 17% over the quarter.
Negative Updates
Net Loss in Q3 2025
Greenlight Re reported a net loss of $4.4 million in Q3 2025, compared to net income of $35.2 million in the same period of 2024.
Investment Losses
The company suffered a $17.4 million loss in investment performance, with the Solasglas portfolio down 3.2% and a $16.4 million write-down on their highest valued innovation investment.
Challenges in Innovation Segment
The Innovation segment experienced a net loss of $11.3 million for the quarter, primarily due to investment impairments.
Company Guidance
During the Greenlight Capital Re Limited Third Quarter 2025 Earnings Conference Call, the company reported a net loss of $4.4 million for Q3 2025, bringing the year-to-date net income to $25.6 million. The fully diluted book value per share decreased by 0.4% to $18.90, while it increased by 5.3% over the first nine months of the year. The company's underwriting performance was strong with a combined ratio of 86.6%, resulting in $22.3 million in underwriting income. This success was attributed to a benign catastrophe quarter and strong underwriting portfolio positioning. However, the investment portfolio faced a $17.4 million loss, driven by a 3.2% decline in the Solasglas portfolio and a $16.4 million write-down in the innovations investment portfolio. Despite these investment challenges, the company remains focused on 1:1 renewals in a softening market and anticipates continued growth in its innovations segment. The company also improved its leverage ratio to 5.3% and increased its flexibility in cash management through refinancing efforts.Greenlight Capital Re Financial Statement Overview
Summary
Greenlight Capital Re's financial performance is mixed. The company has a strong balance sheet with no debt and high return on equity, but faces challenges in income and cash flow statements. The high net income in 2024 contrasts with low revenue, indicating potential one-time gains. Cash flow issues need addressing for sustainable growth.Income Statement
Greenlight Capital Re showed a mixed performance in its income statement. The company experienced strong revenue growth of 33% from 2022 to 2023, but revenue declined significantly in 2024. The net profit margin for 2024 was exceptionally high due to a drop in revenue yet an increase in net income. However, EBIT and EBITDA margins were not applicable due to zero EBIT and EBITDA, indicating potential volatility and operational challenges.54
Neutral
Balance Sheet
The balance sheet of Greenlight Capital Re reflects a strong financial position. The company has no debt as of 2024, leading to a debt-to-equity ratio of 0. The equity ratio stands at a solid 31.5%, indicating a healthy balance between assets and equity. The return on equity was notably high at 67.3% in 2024, driven by a substantial net income, suggesting efficient use of equity capital. However, the fluctuations in stockholders' equity and total assets over the years indicate potential instability.82
Very Positive
Cash Flow
Cash flow analysis reveals some concerns for Greenlight Capital Re. The company showed a negative operating cash flow in 2024, indicating challenges in generating cash from operations. The free cash flow has fluctuated significantly over the years, showing negative growth in 2024. The free cash flow to net income ratio was negative in 2024, suggesting inconsistencies in cash generation relative to net income.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 654.63M | 647.97M | 632.35M | 477.63M | 570.46M | 478.82M |
| Gross Profit | 41.11M | 43.93M | 103.46M | 18.00M | 50.52M | 31.70M |
| EBITDA | 4.98M | 52.75M | 94.96M | 35.52M | 39.26M | 12.87M |
| Net Income | -1.87M | 42.82M | 86.83M | 25.34M | 17.58M | 3.87M |
Balance Sheet | ||||||
| Total Assets | 2.13B | 2.02B | 1.74B | 1.58B | 1.43B | 1.36B |
| Cash, Cash Equivalents and Short-Term Investments | 655.23M | 64.69M | 51.08M | 38.24M | 76.31M | 8.94M |
| Total Debt | 0.00 | 60.75M | 73.28M | 80.53M | 98.06M | 95.79M |
| Total Liabilities | 1.48B | 1.38B | 1.14B | 1.08B | 951.83M | 892.79M |
| Stockholders Equity | 658.89M | 635.88M | 596.10M | 503.12M | 475.66M | 464.86M |
Cash Flow | ||||||
| Free Cash Flow | 139.53M | 111.50M | 7.51M | -139.05M | -57.53M | -91.32M |
| Operating Cash Flow | 139.53M | 111.50M | 7.51M | -31.80M | -56.30M | -91.32M |
| Investing Cash Flow | -71.55M | -96.56M | -53.13M | 47.02M | 23.09M | 95.63M |
| Financing Cash Flow | -34.19M | -21.24M | -5.29M | -19.83M | -10.00M | -17.78M |
Greenlight Capital Re Technical Analysis
Negative
13.16
Price Trends
13.69
Negative
13.12
Positive
13.34
Negative
Market Momentum
-0.10
Positive
36.35
Neutral
4.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLRE, the sentiment is Negative. The current price of 13.16 is below the 20-day moving average (MA) of 14.15, below the 50-day MA of 13.69, and below the 200-day MA of 13.34, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 36.35 is Neutral, neither overbought nor oversold. The STOCH value of 4.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLRE.
Greenlight Capital Re Risk Analysis
Greenlight Capital Re disclosed 2 risk factors in its most recent earnings report. Greenlight Capital Re reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Greenlight Capital Re Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.34B | 12.65 | 8.09% | ― | 7.87% | -4.68% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $453.52M | -281.18 | -0.28% | ― | 5.83% | -101.38% | |
63 Neutral | $323.00M | 13.19 | 6.95% | 3.59% | -0.09% | 83.67% | |
60 Neutral | $303.83M | -3.18 | -6.97% | 0.63% | -19.08% | 56.21% | |
45 Neutral | $9.63M | -3.38 | -50.32% | ― | ― | 55.30% | |
40 Underperform | $76.49M | -0.52 | -57.00% | ― | -66.75% | -50.53% |
* Financial Sector Average
GLRE
Greenlight Capital Re
13.30
-0.83
-5.87%
KG
Kestrel Group
9.88
-12.92
-56.67%
WSBF
Waterstone Financial
17.50
4.84
38.24%
SPNT
SiriusPoint
20.00
4.79
31.49%
JRVR
James River Group
6.61
1.82
38.00%
OXBR
Oxbridge Re Holdings
1.26
-3.11
-71.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.