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Greenlight Capital Re (GLRE)
NASDAQ:GLRE
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Greenlight Capital Re
(NASDAQ:GLRE)
Rating:62Neutral
Price Target:
$14.00
▲(10.58% Upside)
Greenlight Capital Re (GLRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$437.39M
Dividend YieldN/A
Average Volume (3M)115.93K
Price to Earnings (P/E)11.6
Beta (1Y)0.53
Revenue Growth2.18%
EPS Growth-41.11%
CountryUS
Employees75
SectorFinancial
Sector Strength72
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)0.01
Shares Outstanding34,198,154
10 Day Avg. Volume109,285
30 Day Avg. Volume115,928
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit1.27
Enterprise Value/Ebitda13.68
Forecast
1Y Price Target
$14.00Price Target Upside10.58% Upside
Rating ConsensusHold
Number of Analyst Covering1
Greenlight Capital Re Business Overview & Revenue Model
Company DescriptionGreenlight 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.
How the Company Makes MoneyGreenlight Capital Re generates revenue primarily through its reinsurance operations, where it assumes risk from insurance companies in exchange for premium payments. The company collects premiums from clients for the coverage it provides, and it earns additional income by investing the collected premiums in various financial instruments, such as equities and fixed-income securities. Key revenue streams include the premiums from property and casualty reinsurance contracts and investment income from its investment portfolio. Additionally, GLRE may engage in strategic partnerships with other insurers or financial institutions to enhance its risk management capabilities and expand its client base, further contributing to its overall earnings.
Greenlight Capital Re Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: -1.33%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in net income growth, book value increase, and favorable performance in the Open Market segment. However, these were offset by significant challenges in the Innovations segment and investment losses in the Solasglas fund.Q2-2025 Updates
Positive Updates
Positive Net Income for the Quarter
Greenlight Re reported net income of $0.3 million in Q2 2025, contributing to year-to-date net income of $30 million.
Increase in Book Value
The fully diluted book value per share increased by 0.5% in the quarter and 5.7% for the first half of the year.
Improved Combined Ratio
The company reported a combined ratio of 95.0% for the quarter, which was 4.9 points better than the second quarter last year.
Significant Growth in Open Market Segment
Net written premiums in the Open Market segment grew by 8% to $142.1 million, driven by growth in the FAL business.
Successful Share Repurchase
The company repurchased $5 million worth of stock at an average cost of $13.99 per share.
Favorable Loss Development in Specialty Reserves
A net favorable loss development of $0.9 million in the Open Market segment resulted from a $9.7 million release of specialty reserves.
Positive Contributions from Long Investments
Long investments in gold and Kyndryl Holdings contributed positively, with Kyndryl Holdings shares advancing 34% during the quarter.
Negative Updates
Investment Loss in Solasglas Fund
The Solasglas fund returned negative 4% in Q2 2025, with the short portfolio detracting 8.9%.
Challenges in Innovations Segment
The Innovations segment had a combined ratio of 107% due to adverse reserve development and increased expense ratio.
Adverse Reserve Development in Runoff Homeowners
The runoff homeowners property contracts suffered adverse development of $1.5 million during the second quarter.
Decline in Casualty Premiums
Casualty premiums decreased due to nonrenewals, impacting the top line despite growth in other areas.
Lost Opportunities in Long Portfolio
The largest detractors were short positions in profitless tech companies, and the long portfolio underperformed due to a lack of winners.
Company Guidance
During the Greenlight Capital Re, Ltd. second quarter 2025 earnings call, the company reported net income of $0.3 million for Q2, bringing the year-to-date net income to $30 million. The fully diluted book value per share rose by 0.5% in the quarter and 5.7% for the first half of the year. The company achieved a combined ratio of 95.0%, translating into $8.1 million of underwriting income. However, the Solasglas portfolio saw a 4% decline, partially offsetting Q1 gains. The company repurchased $5 million of its stock at an average price of $13.99 per share. The Open Market segment saw an 8% growth in net written premiums, while the Innovations segment experienced a 2.3% increase. The Solasglas fund returned negative 4% in Q2, with the long and macro portfolios contributing positively, but the short portfolio detracting 8.9%. Despite some adverse developments in specific segments, the overall financial results showed improvement in certain areas such as lower acquisition costs and increased foreign exchange gains of $6.3 million.Greenlight Capital Re Financial Statement Overview
Summary
Greenlight Capital Re presents a mixed financial picture. Strong equity and no debt indicate financial stability, but income and cash flow statements reveal potential operational and cash management challenges. High net income in 2024 contrasts with low revenue, suggesting possible one-time gains or unusual income sources. Cash flow generation 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.65
Positive
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.75
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.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 587.18M | 32.42M | 624.28M | 414.63M | 571.34M | 479.66M |
| Gross Profit | 435.03M | 23.24M | 616.25M | 414.63M | 571.34M | 479.66M |
| EBITDA | 40.47M | 43.56M | 86.93M | 0.00 | 39.26M | 5.32M |
| Net Income | 37.77M | 42.82M | 86.83M | 25.34M | 17.58M | 3.87M |
Balance Sheet | ||||||
| Total Assets | 2.19B | 2.02B | 1.74B | 1.58B | 1.43B | 1.36B |
| Cash, Cash Equivalents and Short-Term Investments | 659.06M | 649.09M | 51.08M | 38.24M | 76.31M | 8.94M |
| Total Debt | 0.00 | 60.75M | 73.28M | 80.53M | 98.06M | 95.79M |
| Total Liabilities | 1.52B | 1.38B | 1.14B | 1.08B | 951.83M | 892.79M |
| Stockholders Equity | 663.32M | 635.88M | 596.10M | 503.12M | 475.66M | 464.86M |
Cash Flow | ||||||
| Free Cash Flow | 149.65M | 111.50M | 7.51M | -139.05M | -57.53M | -91.32M |
| Operating Cash Flow | 149.65M | 111.50M | 7.51M | -31.80M | -56.30M | -91.32M |
| Investing Cash Flow | -89.25M | -96.56M | -53.13M | 47.02M | 23.09M | 95.63M |
| Financing Cash Flow | -16.24M | -21.24M | -5.29M | -19.83M | -10.00M | -17.78M |
Greenlight Capital Re Technical Analysis
Negative
12.66
Price Trends
13.72
Negative
13.59
Negative
13.79
Negative
Market Momentum
-0.20
Negative
35.70
Neutral
31.59
Neutral
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 12.66 is below the 20-day moving average (MA) of 13.05, below the 50-day MA of 13.72, and below the 200-day MA of 13.79, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 35.70 is Neutral, neither overbought nor oversold. The STOCH value of 31.59 is Neutral, 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 1 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $17.53B | 11.77 | 10.43% | 3.83% | 9.84% | 1.31% | |
67 Neutral | $2.17B | 20.35 | 4.82% | ― | -4.56% | -55.48% | |
64 Neutral | $268.42M | 12.66 | 6.12% | 4.18% | 1.46% | 80.94% | |
62 Neutral | $437.39M | 11.56 | 5.82% | ― | 2.18% | -41.11% | |
53 Neutral | $229.70M | ― | -147.12% | ― | -57.85% | -731.42% | |
52 Neutral | $269.07M | ― | -13.01% | 1.40% | -20.88% | 1.34% | |
45 Neutral | $12.58M | ― | -58.30% | ― | ― | 82.83% |
* Financial Sector Average
Performance Comparison
GLRE
Greenlight Capital Re
12.66
-0.82
-6.08%
KG
Kestrel Group
27.47
-10.73
-28.09%
WSBF
Waterstone Financial
14.08
0.26
1.88%
SPNT
SiriusPoint
18.28
3.69
25.29%
JRVR
James River Group
5.72
-1.84
-24.34%
OXBR
Oxbridge Re Holdings
1.66
-0.44
-20.95%
Greenlight Capital Re Corporate Events
Shareholder MeetingsStock BuybackFinancial Disclosures
Greenlight Capital Re Holds Annual Shareholders Meeting
Neutral
Aug 5, 2025
On July 29, 2025, Greenlight Capital Re held its Annual General Meeting of Shareholders, where directors were elected, Deloitte Ltd. was ratified as the independent auditor, and executive compensation was approved. The company reported its financial results for the second quarter and six months ending June 30, 2025, showing a 6.3% increase in gross premiums written and a combined ratio of 95.0%. Despite a total investment loss of $7.8 million, Greenlight Re returned $5 million to shareholders through buybacks, highlighting its commitment to long-term shareholder value.
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.