Lumida
/GLRE
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Greenlight Capital Re Ltd

Greenlight Capital Re Ltd

GLRE
$14.97USD↓-0.33%-0.05 today

MARKET CAP

488.6M

P/E (TTM)

10.2x

FWD P/E

7.1x

DAY RANGE

$15 – $15

52W RANGE

$12
$19

AI Summary

Stalk
Sell NowMedium

GLRE has decisively broken key support in a Stage 4 downtrend, trading below declining short- and medium-term EMAs with momentum confirming seller control. Under the Stable strategy, capturing continuation momentum through immediate sell participation is preferred to waiting for a low-probability relief rally. The medium-term bearish bias remains intact until price can reclaim and hold above the broken support and EMA zone.

  • ↑Earnings yield 1.34 and book-to-price 1.10 indicate undervaluation
  • ↑Innovations segment posted $2.6M underwriting profit at 89.7% combined ratio
  • ↓Q2 net loss $29.6M, including $23.8M in investment losses
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Greenlight Capital Re (NASDAQ: GLRE) operates in the reinsurance and investment sectors, focusing on specialty lines including innovative insurance solutions. The company is recognized for its active investment strategies, notably through the Solus Glass Fund, and seeks to balance underwriting practices with market opportunities. Greenlight is currently navigating uncertainties stemming from geopolitical tensions, especially in the Middle East, contributing to its cautious market positioning while redefining risk management practices.

Bull says

  • ↑Earnings yield 1.34 and book-to-price 1.10 indicate undervaluation
  • ↑Innovations segment posted $2.6M underwriting profit at 89.7% combined ratio
  • ↑Gross written premiums in innovations up 12% YoY, supporting growth
  • ↑YTD share repurchases of $23.1M buy back stock below book value
  • ↑Full Lloyd’s syndicate launch in Jan 2027 to expand specialty lines
  • ↑Strong profitability and low leverage factors underpin financial stability

Bear says

  • ↓Q2 net loss $29.6M, including $23.8M in investment losses
  • ↓Net written premiums fell 11% despite 2% rise in GWP
  • ↓Increased reserves by $25M for Middle East geopolitical exposures
  • ↓Negative growth and earnings revisions signal muted revenue outlook
  • ↓High short interest and liquidity pressure reflect investor caution
  • ↓Q2 combined ratio at 100.1% shows limited underwriting margin

Investment themes with GLRE

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Earnings Call · Q3 2023 · Mgmt. Guidance

Updated 02-14-2025neutral

Transcript signals

Bull points

  • For the third quarter of 2023, we reported net income of $13.5 million and growth in book value per share of 2.3%. This brings our year-to-date performance to net income of $69.2 million and growth in book value per share of 13.7%
  • This result includes a strengthening of reserves that relate to our legacy business, of approximately four combined ratio points, which indicates that the ongoing book performed around an 87% combined ratio
  • We grew net written premium in the third quarter to $168.3 million, an increase of 15% compared to the third quarter of 2022 as we take advantage of the attractive market conditions

Bear points

  • Green Brick Partners shares fell 27% during the quarter. The company announced second quarter earnings that far exceeded consensus estimates. However, the market has become concerned about the impact of higher mortgage rates and most homebuilding stocks, including Green Brick, reversed a portion of the gains achieved earlier this year.
  • The economic outlook and the outbreak of war has added to our worry about the direction of the market, and we've been reducing our overall gross exposure as a result.
  • We reported total net investment income of $5.1 million during the third quarter of 2023 compared to $11.6 million in 2022.
Read full transcript analysis ›