Company Overview
Greenlight Capital Re, Ltd. operates globally as a specialized property and casualty reinsurance entity, serving clients through its distinct Open Market and Innovations segments. The firm provides specific casualty reinsurance products, including automobile liability and general liability, alongside a broader suite of coverage options to its international client base. Situated within the Financial Services sector and the Insurance - Reinsurance industry, the company functions as a critical layer of risk transfer for primary insurers facing catastrophic loss events. The entity demonstrates a significant market footprint with a market capitalization of $577.61M and annual revenue reaching $721.31M over the trailing twelve months. This substantial scale is further evidenced by an operational workforce comprising 84 employees, indicating a highly efficient, capital-intensive business model typical of the reinsurance sector. The market cap figure of $577.61M reflects the aggregate equity value held by shareholders, while the $721.31M revenue stream underscores the company's capacity to underwrite large-scale risk portfolios. These valuation and revenue metrics collectively position Greenlight Capital Re, Ltd. as a mid-to-large-cap player capable of influencing pricing dynamics within its niche segments.
Financial Health
The company generated total revenue of $721.31M, resulting in a net income of $74.83M and an EBITDA of $74.69M during the trailing twelve-month period. The substantial disparity between the $721.31M revenue and the $74.83M net income highlights a cost structure where operating expenses, including underwriting costs, commissions, and general administrative overhead, consume a significant portion of gross premiums written. Free cash flow stands at -$310,579,264, which indicates that the business model requires substantial capital outflows, likely for investment in reinsurance capacity or strategic growth initiatives, rather than generating immediate distributable cash from operations. Despite the negative free cash flow, the balance sheet maintains a cash position of $111.76M against a relatively modest debt load of $7.40M, suggesting a conservative leverage approach. The debt-to-equity ratio of 1.05 implies that total liabilities slightly exceed total equity, a common characteristic in capital-light reinsurance firms that prioritize holding reserves over debt financing. A current ratio of 1.65 signals robust short-term liquidity, demonstrating that current assets are more than 1.6 times current liabilities, providing ample buffer to meet immediate obligations. Return on Equity is calculated at 11.1%, while Return on Assets sits at 2.2%, revealing that management effectively utilizes shareholder equity to generate returns, even though the asset base is large relative to the income generated. The ROE metric of 11.1% suggests that the company is creating value for shareholders, whereas the lower ROA of 2.2% reflects the heavy asset intensity required to support reinsurance operations.
Valuation Assessment
Analysts can observe a trailing P/E ratio of 7.78 compared to a forward P/E of 10.56, suggesting that the market anticipates a deceleration in earnings growth or a potential increase in valuation multiples relative to current profits. The price-to-book ratio is recorded at 0.81, which indicates that the stock is currently trading at a discount to its book value, a frequent characteristic for insurers and reinsurers where asset valuations may not fully reflect market realities. Price-to-sales ratio stands at 0.80, and the EV/EBITDA multiple is 6.29, providing alternative perspectives that suggest the company is valued at a premium relative to sales but at a reasonable multiple of earnings before interest, taxes, depreciation, and amortization. The 52-week high is $17.02 and the 52-week low is $11.57, meaning the current price sits at a level that requires calculation to determine its exact percentage position relative to this historical range. The beta value of 0.51 indicates that the stock exhibits significantly lower volatility than the broader market, moving only about half as much as the market index during periods of fluctuation. This low beta suggests that Greenlight Capital Re, Ltd. acts as a defensive holding within a portfolio, as its price movements are less sensitive to macroeconomic shifts that typically drive broader market indices.
Growth & Income
Revenue growth over the trailing twelve months stands at 39.7%, while earnings growth is listed as N/A, implying that the data for year-over-year earnings expansion is not currently available or calculated in the provided dataset. The absence of reported earnings growth relative to the substantial revenue increase suggests that the company is in a rapid expansion phase where revenue captures are outpacing the realization of normalized profitability. As a non-dividend payer with a dividend yield of N/A and a payout ratio of 0.0%, the company retains all of its earnings rather than distributing them to shareholders. This retention strategy allows the firm to reinvest capital directly into expanding its reinsurance capacity, acquiring new business lines, or strengthening its balance sheet reserves. The overall growth and income profile is characterized by aggressive revenue expansion without current dividend distribution, positioning the company for capital appreciation rather than income generation.