Greenlight Capital Re (GLRE 0.47%), a specialty property and casualty reinsurer, reported second quarter 2025 results on August 4, 2025. The release showed notable improvement in core underwriting, with a sharp turnaround in insurance profitability compared to Q2 2024. EPS (GAAP) reached $0.01, well above the $(0.35) GAAP analyst forecast. This positive surprise came despite a $7.8 million investment portfolio loss, as the company’s reinsurance operations performed well. The quarter highlighted the firm's dual-engine model, where gains in underwriting were partially offset by investment setbacks, resulting in modest growth in fully diluted book value per share (non-GAAP).
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $0.01 | ($0.35) | $0.23 | (95.7%) |
| Revenue – Net Premiums Earned | $161.6 million | $158.4 million | 2.0% | |
| Net Underwriting Income | $8.1 million | N/A | $0.3 million | — |
| Combined Ratio | 95.0% | 99.9% | (4.9 pp) | |
| Total Investment Income (Loss) | ($7.8 million) | $15.3 million | N/A | |
| Fully Diluted Book Value Per Share (Non-GAAP) | $18.97 | $17.65 | 7.5% |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Recent Company Focus
Greenlight Capital Re is known for combining specialty reinsurance with a unique, value-driven investment strategy. The company accepts insurance risk from clients worldwide, insuring everything from property to specialty and casualty lines. A distinguishing factor is its investment approach; most of its capital is managed by DME Advisors in the Solasglas investment fund, which emphasizes long and short positions in public equities and corporate debt.
The company’s growth strategy has recently centered on expanding its Innovations segment, with gross premiums written increasing from $50.7 million in 2022 to $94.7 million in 2024. This business invests in insurance startups and managing general agents (known as MGAs) to access new insurance markets and diversify. Success relies on disciplined risk selection, competitive pricing, sound investment results, and efficient expense management. Regulatory compliance and financial ratings remain crucial for securing business and building trust.
Quarter in Review: Underwriting Turnaround, Investment Setback
The second quarter showed a strong recovery in core reinsurance performance. Net underwriting income reached $8.1 million, a large increase from just $0.3 million last year. A key proof point was the 95.0% combined ratio, which measures the ratio of costs and claims paid out to premiums collected. This improvement was driven by lower acquisition costs, as the acquisition cost ratio dropped to 29.0% from 31.9% in Q2 2024.
Gross premiums written increased 6.3% to $179.6 million. Net premiums earned increased 2.0% to $161.6 million compared to Q2 2024. Segment results reveal that the Open Market business, which covers traditional reinsurance placements, produced $11.2 million in underwriting income and a 92.0% combined ratio. However, profitability in the Innovations segment declined. While gross premiums written in that segment rose and its combined ratio (GAAP) deteriorated to 107.0%—meaning claims and expenses outpaced premiums collected.
Investment performance was the main drag on results. The Solasglas fund delivered a (4.0%) return as value-focused equity positions failed to keep up with a rising broader market. Total investment loss of $7.8 million (GAAP) was a sharp reversal from last year’s $15.3 million (GAAP) gain in Q2 2024. For the first half of FY2025, investment returns remained positive but were notably below the result for the first half of 2024.
Fully diluted book value per share (non-GAAP) was $18.97, an increase from $17.95 at December 31, 2024. The company also bought back $5.0 million in shares, signaling a willingness to return capital to shareholders. No dividend was declared or paid this quarter. With total assets of $2.19 billion and shareholders’ equity of $663.3 million as of June 30, 2025 (GAAP).
Looking Forward: Guidance and Investor Focus Areas
Management did not provide formal financial guidance for the second half or full fiscal year. In the earnings release, CEO Greg Richardson stated, “we believe our book is well positioned for a strong second half of the year.” This signals confidence in underwriting but leaves open questions about investment return volatility and the Innovations segment’s path to profitability.
Book value growth will also be watched as a measure of effective capital allocation and long-term performance.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
