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Greenlight Capital Re (GLRE)
NASDAQ:GLRE
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Greenlight Capital Re
(NASDAQ:GLRE)
68Neutral
Greenlight Capital Re (GLRE) vs. S&P 500 (SPY)
Market Cap
$455.56M
Dividend YieldN/A
Average Volume (3M)117.73K
Price to Earnings (P/E)10.7
Beta (1Y)0.55
Revenue Growth7.75%
EPS Growth-49.93%
CountryUS
Employees75
SectorFinancial
Sector Strength83
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)1.23
Shares Outstanding34,564,175
10 Day Avg. Volume139,687
30 Day Avg. Volume117,730
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.66
Price to Cash Flow (P/CF)3.90
P/FCF Ratio3.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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 through the premiums it collects from its reinsurance contracts. These contracts are agreements where Greenlight Capital Re takes on a portion of the risk associated with insurance policies underwritten by its clients, in exchange for premium payments. The company also seeks to generate investment income by investing the premiums it receives in a diversified portfolio, including equities and fixed income securities. This investment strategy aims to optimize returns, thereby supplementing the company's underwriting income. Key factors contributing to its earnings include effective risk management, strategic investment decisions, and maintaining strong relationships with its primary insurer clients.
Greenlight Capital Re Financial Statement Overview
Summary
Greenlight Capital Re shows a mixed financial picture. Strong equity and no debt indicate financial stability, but income and cash flow statements reveal operational and cash management challenges. High net income in 2024 contrasts with low revenue, indicating possible one-time gains or unusual income sources.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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 83.00K | 624.28M | 414.63M | 571.34M | 479.66M | Gross Profit |
| 83.00K | 624.28M | 414.63M | 571.34M | 479.66M | EBIT |
| 0.00 | 616.31M | 73.25M | 22.20M | 1.14M | EBITDA |
| 0.00 | 0.00 | 0.00 | 39.26M | 5.32M | Net Income Common Stockholders |
| 42.82M | 86.83M | 25.34M | 17.58M | 3.87M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 649.09M | 51.08M | 38.24M | 76.31M | 8.94M | Total Assets |
| 2.02B | 1.74B | 1.58B | 1.43B | 1.36B | Total Debt |
| 60.75M | 73.28M | 80.53M | 98.06M | 95.79M | Net Debt |
| -3.94M | 22.20M | 42.30M | 21.75M | 86.86M | Total Liabilities |
| 1.38B | 1.14B | 1.08B | 951.83M | 892.79M | Stockholders Equity |
| 635.88M | 596.10M | 503.12M | 475.66M | 464.86M |
| Cash Flow | Free Cash Flow | |||
| -7.39M | 7.51M | -139.05M | -57.53M | -91.32M | Operating Cash Flow |
| -7.39M | 7.51M | -31.80M | -56.30M | -91.32M | Investing Cash Flow |
| 32.00M | -53.13M | 47.02M | 23.09M | 95.63M | Financing Cash Flow |
| -21.24M | -5.29M | -19.83M | -10.00M | -17.78M |
Greenlight Capital Re Technical Analysis
Negative
13.18
Price Trends
13.43
Negative
13.83
Negative
13.68
Negative
Market Momentum
-0.12
Positive
48.95
Neutral
66.02
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 13.18 is below the 20-day moving average (MA) of 13.32, below the 50-day MA of 13.43, and below the 200-day MA of 13.68, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 66.02 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 74 risk factors in its most recent earnings report. Greenlight Capital Re reported the most risks in the “Finance & Corporate” 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $533.50M | 8.62 | 24.08% | ― | 10.84% | 16.40% | |
71 Outperform | $488.10M | 6.91 | 14.74% | 7.13% | -8.68% | -3.76% | |
68 Neutral | $455.56M | 10.67 | 6.95% | ― | 7.75% | -49.93% | |
63 Neutral | $13.51B | 9.48 | 9.36% | 4.87% | 16.09% | -8.30% | |
49 Neutral | $404.18M | 24.79 | 3.28% | 15.02% | ― | -66.59% | |
48 Neutral | $308.44M | 4.60 | 2.04% | ― | 46.32% | 640.18% | |
45 Neutral | $536.22M | 7.09 | 37.69% | ― | 1.00% | -77.16% |
* Financial Sector Average
Performance Comparison
GLRE
Greenlight Capital Re
13.18
0.87
7.07%
GAIN
Gladstone Investment
13.71
1.44
11.74%
PNNT
Pennantpark Investment
6.35
0.41
6.90%
AMBC
Ambac Financial
7.00
-7.23
-50.81%
ACIC
American Coastal Insurance
11.10
0.71
6.83%
HRTG
Heritage Insurance Holdings
17.30
7.92
84.43%
Greenlight Capital Re Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: -3.80% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with both positive achievements and significant challenges. While there was growth in the Innovations segment and an increase in book value, the quarter was affected by substantial underwriting and investment losses, as well as exposure to catastrophic events. The overall sentiment is neutral, acknowledging both progress and the need for caution in certain areas.Highlights
Increase in Fully Diluted Book Value
Net income for the year was $42.8 million, resulting in a 7.2% increase in fully diluted book value per share to $17.95.
Innovations Segment Performance
The Innovations segment generated a combined ratio of 95.8% on $94.7 million of gross written premium, showing positive performance and importance to growth strategy.
One-One Renewal Growth
The one-one 2025 renewal season saw growth with the FAL book expected to grow by approximately 25% and the property portfolio by 10% over 2024.
Positive Contributions from Investments
Long investments in Peloton Interactive and Kyndra Holdings were significant contributors, with Peloton advancing 86% and Kyndra Holdings 51% during the quarter.
Lowlights
Significant Underwriting and Investment Losses
In Q4 2024, Greenlight Capital Re reported a net underwriting loss of $18 million and an investment loss from Solace Glass of $8.8 million, leading to a net loss of $27.4 million for the quarter.
Impact of Catastrophic Events
Catastrophic events like Hurricane Milton and increased Russia-Ukraine conflict reserves led to significant losses, including $17.6 million in cat losses and a $15 million increase in conflict reserves.
Los Angeles Wildfire Losses
The Los Angeles wildfires are estimated to result in a $15 million to $30 million loss for Greenlight Capital Re, highlighting exposure to catastrophic events.
Underperformance of Solus Glass Fund
The Solus Glass Fund reported a negative 1.9% return in Q4, underperforming compared to a 2.4% increase in the S&P 500.
Company Guidance
During the call, Greenlight Capital Re, Ltd. provided guidance on several key metrics for the fourth quarter and full year 2024. The company reported a net underwriting loss of $18 million, resulting in a combined ratio of 112.1% for the quarter, and a net loss of $27.4 million. Catastrophe activity, including $17.6 million from events like Hurricane Milton, and a $15 million increase in reserves related to the Russia-Ukraine conflict, significantly impacted results. Despite these challenges, the full year 2024 saw net income of $42.8 million, with a combined ratio of 101.4%, and a 7.2% increase in fully diluted book value per share to $17.95. The Innovations segment achieved a combined ratio of 95.8% on $94.7 million of gross written premium. Looking ahead to 2025, Greenlight Capital Re, Ltd. expects growth in its Lloyd's FAL book by 25% and anticipates a 10% increase in its property portfolio, despite a 5% to 7.5% rate decrease. The company is optimistic about future opportunities, despite anticipating potential losses of $15 million to $30 million from the Los Angeles wildfires.Greenlight Capital Re Corporate Events
Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Greenlight Capital Re to Host Investor Meeting
Positive
Nov 19, 2024
Greenlight Capital Re, Ltd. is set to hold an investor meeting on November 19, 2024, to discuss its strategic priorities and financial performance. With a focus on a multi-pillar strategy, the company emphasizes disciplined capital allocation and aims to leverage its agility in a competitive market. Despite a hard market, Greenlight Re maintains strong risk-adjusted returns and a promising growth trajectory, driven by innovations and a diversified underwriting portfolio.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.