What does Greenlight Capital Re do and what are its main business segments?

Did Greenlight Capital Re beat or miss consensus estimates last quarter?

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What is Greenlight Capital Re's gross profit margin?

What guidance did Greenlight Capital Re's management provide for the next earnings period?

What is Greenlight Capital Re's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for Greenlight Capital Re year over year?

What factors drove the changes in Greenlight Capital Re's revenue and profit?

- **Underwriting Strength**: 86.6% combined ratio (vs. 95.9% last year), with Open Market segment up 84.5%.
- **Investment Volatility**: $17.4 million loss from Solasglas and innovations write-downs.
- **Strategic Focus**: Scaling Innovation segment with 57.5% premium growth despite near-term losses.
- **Capital Efficiency**: Debt reduced 60% to $20 million, book value +5.3% YTD to $18.90/share.
- **Macro Bet**: Long gold, SOFR futures, and inflation swaps reflect contrarian macro positioning.

**CEO Summary Section**
- **Q3 2025 Results**: Reported a net loss of $4.4 million, driven by a 86.6% combined ratio (vs. 95.9% in Q3 2024). Underwriting income of $22.3 million offset a $17.4 million investment loss.
- **Open Market Segment**: 9.5% premium growth to $140.4 million, with a 84.5% combined ratio (vs. 94.5% in Q3 2024). Casualty book reduced by 25%.
- **Innovation Segment**: 57.5% growth in written premiums to $22.3 million, but 96.7% combined ratio (vs. 93.6% in Q3 2024) due to $11.3 million unrealized loss on an AI-related investment.
- **Investment Performance**: Solasglas fund down 3.2%, while innovations portfolio saw a $16.4 million write-down due to a failed debt refinancing.
- **Hurricane Melissa Impact**: Minimal expected loss as storm missed U.S. coastal property exposure.

**CFO Financial Commentary**
- **Open Market Segment**: 11.8pt improvement in loss ratio (8.3pt attritional, 3.5pt event), 2.5pt lower acquisition costs, and 0.3pt lower expenses.
- **Innovation Segment**: 3.1pt favorable reserve development, but 9.6% expense ratio (vs. 5.5% in Q3 2024) due to scaling investments.
- **Capital Management**: Reduced debt to $20 million (from $50 million), and $60.7 million cash release from Lloyd's letter of credit.
- **Book Value**: $18.90 per share, +5.3% YTD, with $7 million share buybacks.

**Q&A Highlights**
- **Macro Strategy**: Long gold (physical + binary call options), long SOFR futures (2026 rate cut bet), and inflation swaps.
- **Company Future**: CEO reaffirmed commitment to earning >cost of equity, despite 25% discount to book value.
- **Leadership Tenure**: Founder David Einhorn (56) expects to lead for "substantial additional time" despite frustration with valuation gap.

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

- **Q2 Financial Performance**: Net income $0.3 million, book value up 5.7% YTD to $18.97.
- **Underwriting Strength**: Combined ratio 95%, underwriting income $8.1 million.
- **Investment Challenges**: Solasglas down 4% Q2, share repurchase of $5 million.
- **Segment Risks**: Innovations segment adverse reserve dev $2.5 million.
- **Market Positioning**: Casualty book non-renewals offset by FAL and specialty growth.

**【CEO Summary Section】**
- Q2 net income of $0.3 million, with year-to-date net income of $30 million.
- Fully diluted book value per share increased 0.5% Q2 and 5.7% YTD to $18.97.
- Combined ratio of 95.0%, generating $8.1 million underwriting income.
- Solasglas portfolio down 4% Q2, reversing Q1 outperformance.
- $5 million share repurchase at $13.99 per share.

**【Investment Portfolio Update】**
- Solasglas fund returned -4% Q2, year-to-date -1.2%.
- Long portfolio (+1.2%) outperformed shorts (-8.9%), with gold and Kyndryl as top contributors.
- Net exposure reduced to 2% Q2 end, 7% as of July.
- Market front-running ahead of tariffs reversed post-Aug 1.

**【CFO Financial Commentary】**
- Q2 net income $0.3 million vs $8 million in Q2 2024.
- Underwriting income $8.1 million, combined ratio 95% (4.9 pts better).
- Open Market segment: +8% premiums to $142.1 million, combined ratio 92% (2.1 pts better).
- Innovations segment: +2.3% premiums to $22.7 million, combined ratio 107% (16.1 pts worse) due to $2.5 million adverse reserve dev.
- Adverse loss dev $2.6 million (1.6 pts) from prior year.

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

- **Q1 Strong Investment Growth**: Solasglas portfolio returned 7.2%, driving 5.1% increase in book value per share.
- **Underwriting Headwinds**: $23.6 million California wildfire loss inflated combined ratio to 104.6%, offset by $19 million in favorable reserve adjustments.
- **Strategic Shift to Innovations Channel**: Transitioning casualty MGA business for better risk control, despite short-term premium contraction.
- **Bear Market Positioning**: Reduced net exposure to 20%, with added short positions in consumer discretionary stocks and inflation protection.

**【CEO Summary Section】**
- **Q1 2025 Financial Highlights**: Reported net income of $29.6 million, with fully diluted book value per share increasing 5.1% due to strong investment performance (Solasglas portfolio +7.2%).
- **Underwriting Challenges**: Underwriting loss of $7.8 million driven by $23.6 million California wildfire provision, resulting in a combined ratio of 104.6%. 
- **Strategic Shifts**: Transitioning casualty MGA business to the Innovations channel for better data access; short-term premium contraction expected but long-term replacement anticipated.
- **Reserve Adjustments**: Strengthened historical casualty reserves by $22 million, offset by $19 million in favorable prior year reserve development.
- **Innovations Segment Performance**: Combined ratio of 94.3%, in line with expectations, despite 8.7% premium decline due to underperforming program exits.

**【CFO Financial Commentary】**
- **Investment Income**: $32.2 million from Solasglas, $8.3 million from other investments (primarily interest on restricted cash).
- **Segment Breakdown**: 
  - **Open Market Segment**: 16.6% premium growth but 106% combined ratio due to wildfire losses. 
  - **Innovations Segment**: 94.3% combined ratio, with expense ratio rising to 8.2% due to personnel and indirect cost increases.
- **Book Value Growth**: Fully diluted book value per share reached $18.87, up 8.5% year-over-year.

**【David Einhorn's Investment Insights】**
- **Portfolio Performance**: Solasglas +7.2% Q1 return, driven by long positions in Gold (+19%), Brighthouse Financial (+21%), and Lanxess (+18%).
- **Risk Management**: Reduced net exposure to 20% amid bear market pivot, adding short positions in consumer discretionary stocks and tail protection against currency depreciation.
- **Macro Outlook**: Expecting Fed rate cuts and economic slowdown, with long SOFR position and increased inflation swap exposure.


Greenlight Capital Re, Ltd. (GLRE) Q1 2025 Earnings Call Transcript

- **Q4 2024 Results**: Net loss $27.4M driven by $17.6M cat losses and $15M Russia-Ukraine aviation reserve. Full year book value +7.2% to $17.95.
- **1/1 2025 Growth**: FAL +25%, property +10% despite rate softening. Innovation segment 2024 combined ratio 95.8%.
- **Investment Success**: Solasglas 2024 return 9.8% vs. S&P 500 25%, 2025 YTD +4.2%.
- **Key Risks**: Russia-Ukraine aviation losses booked at ultimate estimate, 28% retrocession coverage remaining. Casualty legacy exposure limited to 2015-2017 vintages.

**【CEO Summary Section】**
- Q4 2024 net underwriting loss of $18M (combined ratio 112.1%) due to cat losses ($17.6M, incl. Hurricane Milton) and Russia-Ukraine aviation reserve increase ($15M). Full year 2024 underwriting loss of $8.2M (combined ratio 101.4%), with book value per share growing 7.2% to $17.95.
- 1/1 2025 renewals: FAL book +25%, specialty modest growth, property +10% despite 5-7.5% rate softening. North Atlantic hurricane exposure up 16% to $116.3M.
- New segment reporting: Open Market (99% 2024 combined ratio, $511.9M net earned prem) and Innovation (95.8% 2024 combined ratio, $86.4M net earned prem).

**【CFO Financial Commentary】**
- Q4 2024 net loss $27.4M ($0.81/diluted share) vs. $17.6M profit in 2023. Open Market Q4 combined ratio 111.1% (vs. 90.9% 2023), driven by aviation ($11.7 pts) and cat ($13.8 pts). Innovation Q4 combined ratio 102.1% (vs. 93.4% 2023) due to adverse loss dev.
- Full year 2024 total investment income $79.6M, driving $42.8M net income. Fully diluted book value per share +7.2% to $17.95, 5-year CAGR 6.9%.

**【Investment Performance】**
- Solasglas Fund Q4 2024 -1.9% (S&P 500 +2.4%). Top contributors: Peloton (+86%), Kyndryl (+51%), MicroStrategy arbitrage. 2024 return 9.8% vs. S&P 500 25%. 2025 YTD +4.2% through Feb.

**【Q&A Highlights】**
- Russia-Ukraine aviation losses: Booked ultimate estimate ($15M+ in Q4), 28% retrocession coverage remaining. Industry settling activity suggests limited upside risk.
- Casualty trends: Legacy Open Market exposure (2015-2017), offset by specialty favorable dev. Innovation casualty underwriting focused on smaller, frequency-severity risks.
- Capital allocation: SIP strategy attractive, open to reallocating Open Market capital to Innovation or buybacks if rates soften further. Innovation quota share retrocession freed capital for growth.

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