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GREENLIGHT CAPITAL RE, LTD.

GLRE
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Business Summary

Greenlight Capital Re, Ltd. (GLRE) operates as a global specialty property and casualty (P&C) reinsurer, headquartered in the Cayman Islands and listed on NASDAQ . The company's business model is differentiated by its reinsurance and investment strategy, aiming to build long-term shareholder value by providing risk management products and services while complementing underwriting activities with a non-traditional investment approach . GLRE generates revenue primarily from premiums on assumed property and casualty business (net of ceded premiums) and income from investments, which includes income from its investment in Solasglas, gains/losses from other investments (including Innovations-related investments), and interest income on cash, fixed maturities, and Funds at Lloyd's (FAL) . The company also derives other income from foreign exchange gains/losses, net investment income from Lloyd's syndicates, advisory fees, and override/profit commissions .

GLRE's operations are conducted through two wholly-owned licensed and regulated subsidiaries: Greenlight Re in Grand Cayman, Cayman Islands, and Greenlight Reinsurance Ireland, Designated Activity Company (GRIL) in Dublin, Ireland, along with its Lloyd's platform, Syndicate 3456 . Greenlight Re provides multi-line property and casualty reinsurance globally, while GRIL focuses mainly on specialty business . The company's Innovations business unit, established in 2018, supports innovative, technology-driven insurance partners through seed capital and reinsurance capacity . In 2020, Greenlight Re UK was established to increase London market presence, and on January 1, 2023, GLRE acquired GCM, a Lloyd's corporate member, to provide underwriting capacity for various syndicates, including Syndicate 3456 .

The company has two reportable segments: Open Market and Innovations . The Open Market segment, led by the Group CUO, provides treaty reinsurance globally on a proportional or non-proportional basis across lines such as Casualty, Financial, Health, Multiline (predominantly FAL business), Property, and Specialty . The majority of this business is produced through reinsurance brokers, with Aon plc, Marsh & McLennan, Howden Group Holdings, and Arthur J. Gallagher & Co collectively accounting for approximately 70.5% of the segment's gross premiums written in 2025 . The FAL business, generated through GCM, represented approximately 36% of Open Market gross premiums written in 2025 . The Innovations segment, led by the Head of Innovations and Innovations Chief Underwriting Officer, makes strategic capital investments in startup companies and Managing General Agents (MGAs) and provides underwriting capacity to these program partners . Its lines of business include Casualty, Financial, Health, Multiline (including Syndicate 3456 business), and Specialty . In 2025, six customers accounted for 53.6% of the Innovations segment's gross premiums written .

For the fiscal year ended December 31, 2025, GLRE reported total revenues of $729.777 million and net income of $74.832 million , an increase of $32.016 million or 74.8% compared to the prior year . Gross premiums written increased by 10.7% to $773.261 million , while net premiums earned grew by 6.6% to $661.144 million . The company achieved a net underwriting income of $35.651 million , a significant improvement from a net underwriting loss of $8.175 million in the prior year . Total investment income decreased by 24.4% to $60.168 million . Diluted EPS was $2.17 , up 75.0% from $1.24 in 2024 . The fully diluted book value per share increased by 13.8% to $20.43 . Cash and cash equivalents stood at $111.756 million , restricted cash and cash equivalents at $531.976 million , and total debt was $4.724 million . Total assets were $2.169.783 billion and total shareholders' equity was $707.977 million .

Comparing 2025 to 2024, gross premiums written increased by $74.926 million . Net underwriting income improved by $43.826 million , driven by a 6.8 percentage point improvement in the combined ratio to 94.6% , primarily due to an improved current year loss ratio and lower adverse prior year reserve development ratio . The Open Market segment's gross premiums written increased by 8% to $652.229 million , mainly due to a $71.1 million or 39% increase in Multiline business and a $13.8 million or 22% increase in Financial business . The Innovations segment's gross premiums written increased by 28% to $121.598 million , with all lines contributing, particularly Multiline business . Net investment income decreased by $19.391 million , largely due to lower yields on collateralized cash balances, losses on Innovations investments, and lower returns on funds withheld by third-party Lloyd's syndicates . Foreign exchange gains were $8.465 million in 2025, compared to losses of $5.606 million in 2024 . Interest expense decreased by $1.470 million due to lower average outstanding debt . Corporate and other expenses increased by $5.230 million due to higher non-underwriting personnel costs and incentive compensation .

During 2025, GLRE grew its reinsurance business by 10.7% in gross premiums written . The company established a whole-account retrocession program, ceding 28.5% of Innovations-related contracts in 2025, which will increase to 33% for 2026 . In late 2025, GLRE began investing restricted cash and cash equivalents held in regulatory trusts for U.S. cedents in a fixed maturity investment portfolio managed by a third-party, and also transferred cash held by Syndicate 3456 into a Lloyd's approved liquidity fund . The company repaid most of its outstanding debt in 2025, driven by strong net cash flows from operating activities . A.M. Best upgraded GLRE's Financial Strength Rating to A (Excellent) from A- (Excellent) with a stable outlook in November 2025 .

Business Outlook

At the January 1, 2026 renewals, GLRE observed greater opportunities due to its stronger balance sheet and the upgrade of its A.M. Best Rating to A (Excellent), despite facing a more competitive market . Rate changes for Open Market business varied, with property and specialty rates experiencing downward pressure, while casualty rates increased . Attachment points and other terms and conditions largely remained firm . For the Innovations portfolio, January 1st is not a historically significant renewal date, but the company noted more opportunities with rates holding up well . GLRE intends to leverage retrocession coverage where it enhances economics and risk profile, given increasing opportunities in current market conditions .

The company anticipates increasing opportunities to scale its Syndicate 3456 . Starting in 2026, GLRE has secured 22.5% of third-party capital to support Syndicate 3456's projected business growth, which is expected to generate fee income . Furthermore, the company established Viridis Re in late 2023 as an exempted segregated portfolio company in the Cayman Islands, offering a "captive-as-a-service" alternative for strategic partners to provide more cost-effective insurance and reinsurance solutions, quicker market entry, and shared risk-taking and resources . The company's Innovations business grew its pipeline opportunities in 2025, positioning it for further growth in the foreseeable future . The retrocession program for Innovations-related contracts has been increased to 33% for 2026, up from 28.5% in 2025, enabling GLRE to grow its share in promising businesses while efficiently deploying capital and providing greater reinsurance capacity to startup companies and MGAs .

GLRE's underwriting expense ratio increased by 4.5 percentage points to 8.8% in 2025 for the Innovations segment, as the company invested in additional underwriters and infrastructure to drive business growth . This increase in personnel costs also included higher incentive compensation due to the overall company's strong underwriting performance . On the investment side, DME Advisors regularly monitors and re-positions Solasglas' investment portfolio to manage the impact of inflation on its underlying investments and holds macro positions to benefit from a rising inflationary environment . DME Advisors remains conservatively positioned as it believes equity markets are very expensive .

GLRE has a $200.0 million shelf registration (Form S-3 registration statement) filed with the SEC, which became effective on July 5, 2024, and will expire on July 1, 2027, to provide flexibility and timely access to public capital markets for additional capital if required for working capital, capital expenditures, acquisitions, or other general corporate purposes .

The company believes that inflationary trends of recent years could persist and continues to consider the potential impact of relevant economic factors on its underwriting portfolio . GLRE also believes trade policies will continue to cause uncertainty and volatility, noting the U.S. Supreme Court striking down tariffs enacted under the IEEPA in February 2026, and the Administration's stated intent to enact new tariffs under other legislative acts . The ongoing conflict between Russia and Ukraine and the resulting responses have led to disruption, instability, and volatility in global markets and industries, which is likely to indirectly impact the markets in which GLRE operates .

Risk Factors

GLRE faces several material risks, including the inherent fluctuation of its operating results due to factors like reinsurance contract pricing, loss experience, and the volume and mix of products underwritten . A significant risk is that actual losses and loss adjustment expenses (LAE) could greatly exceed loss reserves, materially and adversely affecting financial condition . The company's property and casualty reinsurance operations are vulnerable to unpredictable catastrophic events, including severe weather and man-made disasters, with climate change adding to this unpredictability and potentially increasing the frequency and severity of events . GLRE is exposed to concentration risk, with its four largest Open Market brokers accounting for approximately 70.5% of that segment's gross premiums written in 2025, and six Innovations customers accounting for 53.6% of that segment's gross premiums written in 2025 . The company is subject to the credit risk of its brokers, cedents, agents, and other counterparties, with reinsurance balances receivable totaling $664.4 million at December 31, 2025, a majority of which are not collateralized . A downgrade or withdrawal of GLRE's A.M. Best ratings, currently "A (Excellent)" with a stable outlook, would severely limit or prevent the company from writing new reinsurance contracts . Modeling risks are inherent in the business, as models used for pricing, reserving, and risk management may not accurately address emerging matters, potentially understating exposures . Technology breaches or failures, including cyber-attacks, could disrupt operations, harm reputation, and lead to fines . The company's Innovations investments, particularly in privately held early-stage companies, carry higher risks due to illiquidity, limited financial resources, and dependence on a small group of management, with the top five holdings accounting for 53% of the total carrying value at December 31, 2025 . The investment performance depends on Solasglas, which may be concentrated in a few large positions, and its value-oriented strategy carries greater risks than traditional fixed-income approaches . Furthermore, GLRE is a holding company dependent on dividends from subsidiaries, which are subject to regulatory restrictions and capital requirements . The company's debt level, which was $4.7 million outstanding at December 31, 2025, but with the ability to borrow up to $50 million under the Revolving Credit Facility, could impact liquidity and restrict operations . GLRE may also be subject to United States federal income taxation if it is deemed to be engaged in a trade or business within the U.S., or if it is classified as a Passive Foreign Investment Company (PFIC) or Controlled Foreign Corporation (CFC) .

Management Priorities

Management emphasizes its commitment to building long-term shareholder value by providing risk management solutions and complementing underwriting with a non-traditional investment approach. The company's primary financial goal is to increase fully diluted book value per share over the long term, which is also a key metric in its incentive compensation plan . For the year ended December 31, 2025, management reported a net income of $74.8 million and a 13.8% increase in fully diluted book value per share to $20.43 . Management noted that at the January 1, 2026 renewals, greater opportunities were experienced due to a stronger balance sheet and the A.M. Best Rating upgrade to A (Excellent) . Strategic priorities include growing the diverse book of business by responding to changing market conditions and prudently managing lines of business, continuing to make strategic capital investments in startup companies and MGAs to position for long-term access to attractive underwriting opportunities and new fee income, and maximizing returns over the long term through its value-oriented investment strategy managed by Solasglas . Management also highlighted the expansion of the Innovations business, with gross premiums written increasing 28% to $121.6 million in 2025, and the establishment of a whole-account retrocession program for Innovations-related contracts, ceding 28.5% in 2025 and increasing to 33% for 2026 .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Company Overview
  2. [2] Item 1, Business — Company Overview
  3. [3] Item 7, MD&A — Revenues and Expenses
  4. [4] Item 7, MD&A — Revenues and Expenses
  5. [5] Item 1, Business — Company Overview
  6. [6] Item 1, Business — Company Overview
  7. [7] Item 1, Business — Company Overview
  8. [8] Item 1, Business — Company Overview
  9. [9] Item 1, Business — Reportable Segments
  10. [10] Item 1, Business — Open Market Segment
  11. [11] Item 1, Business — Open Market Segment
  12. [12] Item 1, Business — Open Market Segment
  13. [13] Item 1, Business — Innovations Segment
  14. [14] Item 1, Business — Innovations Segment
  15. [15] Item 1, Business — Innovations Segment
  16. [16] Item 7, MD&A — Consolidated Results of Operations
  17. [17] Item 7, MD&A — Consolidated Results of Operations
  18. [18] Item 7, MD&A — Consolidated Results of Operations
  19. [19] Item 7, MD&A — Consolidated Results of Operations
  20. [20] Item 7, MD&A — Consolidated Results of Operations
  21. [21] Item 7, MD&A — Consolidated Results of Operations
  22. [22] Item 7, MD&A — Consolidated Results of Operations
  23. [23] Item 7, MD&A — Consolidated Results of Operations
  24. [24] Item 7, MD&A — Consolidated Results of Operations
  25. [25] Item 7, MD&A — Consolidated Results of Operations
  26. [26] Item 7, MD&A — Key Financial Measures and Non-GAAP Measures
  27. [27] Item 8, Consolidated Balance Sheets
  28. [28] Item 8, Consolidated Balance Sheets
  29. [29] Item 8, Consolidated Balance Sheets
  30. [30] Item 8, Consolidated Balance Sheets
  31. [31] Item 8, Consolidated Balance Sheets
  32. [32] Item 7, MD&A — Consolidated Results of Operations
  33. [33] Item 7, MD&A — Consolidated Results of Operations for 2025 compared to 2024
  34. [34] Item 7, MD&A — Consolidated Results of Operations
  35. [35] Item 7, MD&A — Consolidated Results of Operations for 2025 compared to 2024
  36. [36] Item 7, MD&A — Open Market Segment
  37. [37] Item 7, MD&A — Open Market Segment
  38. [38] Item 7, MD&A — Innovations Segment
  39. [39] Item 7, MD&A — Innovations Segment
  40. [40] Item 7, MD&A — Consolidated Results of Operations
  41. [41] Item 7, MD&A — Consolidated Results of Operations for 2025 compared to 2024
  42. [42] Item 7, MD&A — Consolidated Results of Operations
  43. [43] Item 7, MD&A — Consolidated Results of Operations
  44. [44] Item 7, MD&A — Consolidated Results of Operations for 2025 compared to 2024
  45. [45] Item 7, MD&A — Consolidated Results of Operations
  46. [46] Item 7, MD&A — Consolidated Results of Operations for 2025 compared to 2024
  47. [47] Item 1, Business — Company Overview
  48. [48] Item 1, Business — Innovations Investments and Underwriting Strategy
  49. [49] Item 1, Business — Value-Oriented Investment Strategy
  50. [50] Item 1, Business — Company Overview
  51. [51] Item 1, Business — Company Overview
  52. [52] Item 7, MD&A — Outlook and Trends
  53. [53] Item 7, MD&A — Outlook and Trends
  54. [54] Item 7, MD&A — Outlook and Trends
  55. [55] Item 7, MD&A — Outlook and Trends
  56. [56] Item 7, MD&A — Outlook and Trends
  57. [57] Item 1, Business — Innovations Investments and Underwriting Strategy
  58. [58] Item 1, Business — Innovations Investments and Underwriting Strategy
  59. [59] Item 1, Business — Innovations Investments and Underwriting Strategy
  60. [60] Item 1, Business — Innovations Investments and Underwriting Strategy
  61. [61] Item 1, Business — Innovations Investments and Underwriting Strategy
  62. [62] Item 7, MD&A — Innovations Segment
  63. [63] Item 7, MD&A — Innovations Segment
  64. [64] Item 7, MD&A — Outlook and Trends
  65. [65] Item 7, MD&A — Outlook and Trends
  66. [66] Item 7, MD&A — Capital Resources
  67. [67] Item 7, MD&A — Outlook and Trends
  68. [68] Item 7, MD&A — Outlook and Trends
  69. [69] Item 1A, Risk Factors — Challenging economic or political conditions may adversely impact our results of operations or financial condition.
  70. [70] Item 1A, Risk Factors — Our results of operations fluctuate from period to period and may not be indicative of our long-term prospects.
  71. [71] Item 1A, Risk Factors — If our losses and LAE greatly exceed our loss reserves, our financial condition may be materially and adversely affected.
  72. [72] Item 1A, Risk Factors — Our property and casualty reinsurance operations make us vulnerable to losses from catastrophes and may cause our results of operations to vary significantly from period to period.
  73. [73] Item 1A, Risk Factors — The loss of significant brokers or customers, could materially and adversely affect our business, financial condition and results of operations.
  74. [74] Item 1A, Risk Factors — We are subject to the credit risk of our brokers, cedents, agents and other counterparties.
  75. [75] Item 1A, Risk Factors — A downgrade or withdrawal of our A.M. Best ratings would materially and adversely affect our ability to implement our business strategy.
  76. [76] Item 1A, Risk Factors — Modeling risks are inherent in our business.
  77. [77] Item 1A, Risk Factors — Technology breaches or failures, including those resulting from a malicious ransomware or cyber-attack on us or our business partners and service providers, could disrupt or otherwise negatively impact our business.
  78. [78] Item 1A, Risk Factors — Risks Relating to Our Innovations Strategy
  79. [79] Item 1A, Risk Factors — Risks Relating to Our Solasglas Investment Strategy
  80. [80] Item 1A, Risk Factors — We are a holding company that depends on the ability of our subsidiaries to pay dividends.
  81. [81] Item 1A, Risk Factors — Our level of debt may have an adverse impact on our liquidity, restrict our current and future operations, particularly our ability to respond to business opportunities, and increase our vulnerability to adverse economic and industry conditions.
  82. [82] Item 1A, Risk Factors — Risks Relating to Taxation
  83. [83] Item 1, Business — Business Strategy
  84. [84] Item 7, MD&A — Consolidated Results of Operations
  85. [85] Item 7, MD&A — Key Financial Measures and Non-GAAP Measures
  86. [86] Item 7, MD&A — Outlook and Trends
  87. [87] Item 1, Business — Business Strategy
  88. [88] Item 1, Business — Innovations Investments and Underwriting Strategy
  89. [89] Item 1, Business — Innovations Investments and Underwriting Strategy

Analysis on 5/22/2026