Greenlight Capital Re, Ltd. (GLRE) Bundle
A Brief History of Greenlight Capital Re, Ltd.
Company Overview
Greenlight Capital Re, Ltd. operates as a reinsurance company, focusing on property and casualty reinsurance. The firm is publicly traded on the NASDAQ under the ticker symbol GLRE. As of September 30, 2024, the company reported a total shareholders' equity of $663.4 million, a significant increase from $596.1 million at the end of 2023.
Financial Performance (2024)
For the third quarter of 2024, Greenlight Capital Re achieved a net income of $35.2 million, up from $13.5 million during the same period in 2023. This result was driven primarily by a substantial increase in investment income, which rose by $23.0 million to $28.1 million. The company’s gross premiums written for Q3 2024 amounted to $168.3 million, reflecting a decrease of 8.0% compared to the previous year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income | $35.2 million | $13.5 million | $70.2 million | $69.2 million |
| Gross Premiums Written | $168.3 million | $183.1 million | $554.6 million | $524.5 million |
| Net Premiums Earned | $151.9 million | $163.1 million | $471.8 million | $445.7 million |
| Investment Income | $28.1 million | $5.1 million | $67.0 million | $52.5 million |
| Fully Diluted Book Value per Share | $18.72 | $17.65 | $18.72 | $16.74 |
Operational Highlights
As of September 30, 2024, the company's total gross loss and loss adjustment expense reserves increased by $149.6 million to $811.2 million, reflecting an increase in premiums and a higher loss ratio. The company’s combined ratio for Q3 2024 was reported at 95.5%, up from 91.2% in Q3 2023, indicating a decline in underwriting profitability.
Investment Performance
Greenlight Capital Re’s investment in Solasglas reported a net gain of $19.8 million in Q3 2024, with a net investment return of 5.2%, compared to a loss of $1.9 million in Q3 2023. The company’s overall investment strategy has shown resilience, contributing positively to its financial performance amid challenging market conditions.
Market Conditions and Challenges
The reinsurance market in 2024 has been characterized by increased rates and tightening terms, particularly in property reinsurance. The active North Atlantic hurricane season has prompted a reassessment of risk and pricing strategies. The company has noted challenges in certain segments, particularly with rising loss ratios attributed to catastrophe events like Hurricane Helene.
Shareholder Activity
As of September 30, 2024, Greenlight Capital Re had 34,832,493 ordinary shares outstanding, reflecting a decrease due to share repurchases. The company executed repurchases totaling $7.5 million during the year, indicating a commitment to returning capital to shareholders.
Future Outlook
Looking ahead, Greenlight Capital Re is poised to navigate the evolving reinsurance landscape by leveraging its capital position and investment strategies. The company’s management remains focused on optimizing underwriting performance and enhancing investment returns while adapting to market dynamics.
A Who Owns Greenlight Capital Re, Ltd. (GLRE)
Ownership Structure
As of September 30, 2024, Greenlight Capital Re, Ltd. (GLRE) had 34,832,493 outstanding ordinary shares. This reflects a decrease of 504,239 shares since December 31, 2023, primarily due to share repurchases totaling 547,402 shares, offset by new issuances related to restricted stock units (RSUs) and ordinary shares for vested RSUs.
| Ownership Category | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Outstanding Ordinary Shares | 34,832,493 | 100% |
| Repurchased Shares | 547,402 | 1.57% |
| Shares Issued from RSUs | 43,163 | 0.12% |
Major Shareholders
The major shareholders of Greenlight Capital Re include its investment in Solasglas Investments, LP, which is a related party and significantly influences the company’s capital structure. As of September 30, 2024, GLRE's share of Partners' capital in Solasglas was $397.9 million, constituting approximately 77.2% of Solasglas' total net assets.
| Shareholder | Investment ($ million) | Percentage of Total Assets |
|---|---|---|
| Greenlight Capital Re, Ltd. | 397.9 | 77.2% |
| DME Advisors II, LLC | 117.3 | 22.8% |
Financial Performance and Capital Allocation
For the nine months ended September 30, 2024, GLRE reported a net income of $70.2 million, compared to $69.2 million for the same period in 2023. The company's total shareholders' equity increased to $663.4 million, reflecting an increase of $67.3 million from $596.1 million at the end of 2023.
| Financial Metric | Amount ($ million) |
|---|---|
| Net Income (YTD 2024) | 70.2 |
| Total Shareholders' Equity | 663.4 |
| Book Value per Share | 18.72 |
Debt and Capital Structure
As of September 30, 2024, GLRE reported total debt obligations of $62.6 million, a decrease from $73.3 million at the end of 2023. The ratio of debt to shareholders’ equity stood at 9.4%, indicating a conservative leverage position.
| Debt Metric | Amount ($ million) |
|---|---|
| Total Debt | 62.6 |
| Shareholders' Equity | 663.4 |
| Debt to Equity Ratio | 9.4% |
Liquidity and Cash Flow
For the nine months ended September 30, 2024, GLRE generated cash flows from operating activities amounting to $81.97 million. The company ended the period with $621.73 million in cash and cash equivalents.
| Cash Flow Metric | Amount ($ million) |
|---|---|
| Operating Cash Flow | 81.97 |
| Cash and Cash Equivalents | 621.73 |
Greenlight Capital Re, Ltd. (GLRE) Mission Statement
Core Mission
Greenlight Capital Re, Ltd. aims to build long-term shareholder value by providing innovative risk management solutions to the insurance, reinsurance, and other risk marketplaces. The company focuses on precision underwriting and disciplined investment strategies to achieve sustainable growth.
Financial Performance Overview
As of the third quarter of 2024, Greenlight Capital Re reported significant financial metrics that demonstrate its operational effectiveness:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $35.2 million | $13.5 million | +160.5% |
| Gross Premiums Written | $168.3 million | $183.1 million | -8.0% |
| Net Premiums Earned | $151.9 million | $163.1 million | -6.9% |
| Net Underwriting Income | $6.1 million | $14.4 million | -57.7% |
| Total Investment Income | $28.1 million | $5.1 million | +450.9% |
| Diluted EPS | $1.01 | $0.39 | +158.9% |
Investment Strategy
The company’s investment strategy heavily relies on its partnership with Solasglas, which has shown remarkable performance:
| Investment Return Analysis | Q3 2024 | Q3 2023 |
|---|---|---|
| Long Portfolio Gains (Losses) | 9.9% | (4.1%) |
| Short Portfolio Gains (Losses) | (5.0%) | 1.7% |
| Gross Investment Return | 5.7% | (0.6%) | Net Investment Return | 5.2% | (0.6%) |
Capital Structure and Shareholder Equity
As of September 30, 2024, Greenlight Capital Re's capital structure shows a solid equity position:
| Capital Structure | Amount (in millions) |
|---|---|
| Total Shareholders' Equity | $663.4 million |
| Total Debt | $62.6 million |
| Debt to Equity Ratio | 9.4% |
| Fully Diluted Book Value per Share | $18.72 |
Risk Management Approach
The company employs a robust risk management strategy to mitigate potential losses from catastrophic events:
| Probable Maximum Loss (PML) | Single Event Loss | Aggregate Loss |
|---|---|---|
| North Atlantic Hurricane | $99.8 million | $109.7 million |
| California Earthquake | $84.2 million | $87.9 million |
| Japan Earthquake | $37.9 million | $38.5 million |
Recent Developments
The company has experienced a significant increase in total investments, amounting to:
| Investment Breakdown | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Investment in Solasglas | $397.9 million (84.4%) | $258.9 million (78.0%) |
| Private Investments and Unlisted Equities | $72.3 million (15.3%) | $71.2 million (21.4%) |
| Total Investments | $471.4 million | $332.2 million |
How Greenlight Capital Re, Ltd. (GLRE) Works
Company Overview
Greenlight Capital Re, Ltd. (GLRE) is a global reinsurance company that offers property and casualty reinsurance products. The company is focused on underwriting and investment performance, leveraging its expertise to manage risks and generate returns.
Financial Performance as of 2024
As of September 30, 2024, GLRE reported significant financial metrics:
| Metric | Value |
|---|---|
| Net Income (Q3 2024) | $35.2 million |
| Net Income (YTD 2024) | $70.2 million |
| Fully Diluted Book Value per Share | $18.72 |
| Basic Book Value per Share | $19.05 |
| Gross Premiums Written (Q3 2024) | $168.3 million |
| Net Premiums Earned (Q3 2024) | $151.9 million |
| Combined Ratio (Q3 2024) | 95.9% |
| Investment Income (Q3 2024) | $28.1 million |
| Shareholders' Equity | $663.4 million |
Underwriting Results
For the three months ended September 30, 2024, the underwriting results indicated a decline in premiums:
| Segment | Gross Premiums Written (2024) | Gross Premiums Written (2023) | Change (%) |
|---|---|---|---|
| Property | $13,625 million | $32,940 million | -58.6% |
| Casualty | $92,124 million | $108,964 million | -15.5% |
| Other | $62,597 million | $41,170 million | 52.0% |
| Total | $168,346 million | $183,074 million | -8.0% |
Investment Performance
GLRE's investment performance is critical to its overall success. Key investment figures for YTD 2024 include:
| Investment Category | Value |
|---|---|
| Total Investment Income | $67.0 million |
| Share of Solasglas' Net Income | $42.4 million |
| Net Realized Gains | $86.7 million |
| Net Unrealized Losses | ($24.6 million) |
Operational Metrics
Operational metrics provide insight into GLRE's efficiency and effectiveness:
| Metric | Value |
|---|---|
| Loss Ratio (YTD 2024) | 64.5% |
| Acquisition Cost Ratio (YTD 2024) | 29.3% |
| Underwriting Expense Ratio (YTD 2024) | 4.1% |
| Combined Ratio (YTD 2024) | 97.9% |
Liquidity and Capital Resources
Liquidity metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Cash, End of Period | $621.7 million |
| Total Debt | $62.6 million |
| Cash Provided by Operating Activities | $81.97 million |
| Cash Used in Investing Activities | ($97.22 million) |
Conclusion of Financial Metrics
Greenlight Capital Re, Ltd. continues to adapt its underwriting and investment strategies to navigate the evolving market landscape, reflecting a strong focus on operational efficiency and profitability.
How Greenlight Capital Re, Ltd. (GLRE) Makes Money
Revenue Streams
Greenlight Capital Re, Ltd. (GLRE) generates revenue primarily through the following sources:
- Net Premiums Earned: For the nine months ended September 30, 2024, GLRE reported net premiums earned of $471.8 million, compared to $445.7 million for the same period in 2023.
- Investment Income: GLRE earned $24.6 million in net investment income for the nine months ended September 30, 2024.
- Income from Related Party Investment Fund: The company reported $42.4 million from this source for the nine months ended September 30, 2024, compared to $27.8 million in the previous year.
- Other Income: This included $12.1 million for the nine months ended September 30, 2024, up from $5.7 million in 2023.
Financial Performance Overview
In the third quarter of 2024, GLRE's financial performance showed the following:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Premiums Written | $168.3 million | $183.1 million |
| Net Premiums Written | $141.7 million | $168.3 million |
| Net Underwriting Income | $6.1 million | $14.4 million |
| Total Investment Income | $28.1 million | $5.1 million |
| Net Income | $35.2 million | $13.5 million |
| Diluted EPS | $1.01 | $0.39 |
Underwriting and Investment Strategy
GLRE's business model combines underwriting and investment strategies to mitigate risk and enhance returns:
- Underwriting: The company focuses on specialty property and casualty reinsurance, managing risk through careful selection and pricing of insurance products.
- Investment Portfolio: GLRE maintains a diverse investment portfolio including public equity, private investments, and fixed income securities. As of September 30, 2024, total investments amounted to $471.4 million.
Recent Developments
As of September 30, 2024, GLRE reported the following financial metrics:
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $2,001.7 million | $1,735.3 million |
| Total Liabilities | $1,338.3 million | $1,139.2 million |
| Total Shareholders' Equity | $663.4 million | $596.1 million |
Losses and Reserves
As of September 30, 2024, GLRE reported the following regarding its loss reserves:
- Loss and Loss Adjustment Expense Reserves: $811.2 million, up from $661.6 million at the end of 2023.
- Unearned Premium Reserves: $347.1 million, an increase from $306.3 million.
Investment in Solasglas
GLRE's investment in Solasglas Investments, LP is a significant part of its strategy:
- Share of Partners' Capital: $397.9 million as of September 30, 2024, up from $258.9 million at the end of 2023.
- Income from Investment in Solasglas: $19.8 million in Q3 2024, compared to a loss of $1.9 million in Q3 2023.
Risk Management
GLRE employs various risk management techniques, including:
- Diversification: Across geographical areas and types of insurance.
- Reinsurance: To protect against catastrophic losses and stabilize earnings.
Conclusion of Financial Metrics
GLRE's financial health as of September 30, 2024, is reflected in its rising net income and strong investment performance, alongside managing its underwriting risks effectively.
Greenlight Capital Re, Ltd. (GLRE) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Greenlight Capital Re, Ltd. (GLRE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Greenlight Capital Re, Ltd. (GLRE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Greenlight Capital Re, Ltd. (GLRE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.