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    GLRE
    Earnings call· Jun 2027(Q2 FY27)

    GREENLIGHT CAPITAL RE, LTD. GLRE

    Aug 5, 2026 Source

    Executive summary

    Greenlight Capital Re Q2 FY27 — Underwriting Challenges Offset by Innovations Growth and Investment Rebound

    Greenlight Capital Re faced a challenging quarter with a net loss driven by investment income losses and specific underwriting provisions related to the Middle East conflict and a refinery explosion. Despite these headwinds, the Innovations segment delivered strong underwriting results, and the Solasglas portfolio showed a significant rebound in July. Management is actively evaluating capital allocation strategies, including increased investment in Solasglas and continued share repurchases, while navigating softening market conditions.

    Highlights

    5

    • Innovations segment recorded a solid underwriting profit of $2.6 million with a combined ratio of 89.7%.

    • Solasglas fund returned 4.9% in July, bringing 2026 year-to-date return to 6.1%.

    • Attritional loss ratio improved by 4.3 percentage points to 51.7% in Q2 FY27.

    • Prior year reserve development improved the combined ratio by 1.4 percentage points in Q2 FY27.

    • Company repurchased $14.2 million of shares in Q2, with $36 million remaining under authorization.

    Concerns

    5

    • Reported a net loss of $29.6 million, or $0.89 per diluted share, in Q2 FY27.

    • Underwriting result included a $20 million provision for Middle East conflict losses and a $6.5 million provision for a Qatar refinery explosion.

    • Solasglas fund returned negative 5.4% in Q2 FY27, with the short portfolio detracting 12.3% and macro positions detracting 5.4%.

    • Net written premium was down 11% in Q2 FY27 due to softening market conditions.

    • Combined ratio was 100.1% in Q2 FY27, including 17.1 percentage points of cat and large losses.

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Open Market
    Pretax income driven by investment income despite an underwriting loss. Net written and earned premiums decreased, mainly due to non-renewal of the casualty book. Combined ratio significantly impacted by Middle East conflict losses.
    Underwriting loss: $1 millionInvestment income: $4.4 millionNet written premiums: $128.2 million (down 10% YoY)Net earned premiums: down 3% YoYCombined ratio: 100.7%Cat and large losses: 20.3 combined ratio pointsAcquisition cost ratio: improved by 1.1 points YoY
    		———$3.4 million pretax income
    Innovations
    Strong underwriting performance and growth in both gross and net earned premiums, driven by new business and existing treaties. Significant improvement in combined ratio and loss ratio compared to the prior year.
    Underwriting income: $2.6 millionInvestment loss: $0.5 millionOther expenses: $0.6 millionGross written premiums: $30.9 million (up 12% YoY)Net earned premiums: $24.9 million (up 16% YoY)Combined ratio: 89.7% (vs 107% YoY)Loss ratio: improved by 9.5 points YoYAcquisition cost ratio: improved by 5.4 points YoYExpense ratio: improved by 2.4 points YoY
    		———$1.5 million pretax income

    Operational metrics

    14
    Net Loss
    $29.6 million$0.89 per diluted share
    Q2 FY27
    Solasglas Fund Return
    -5.4%
    Q2 FY27
    Solasglas Fund Return
    4.9%
    July 2026
    Solasglas Fund Return YTD
    6.1%
    YTD 2026
    Solasglas Net Exposure
    33%vs 41% at Q1 end
    Q2 FY27
    Solasglas Net Exposure
    39%
    July 2026
    Cat and Large Loss Ratio
    17.1 percentage pointsvs 4% for Q2 FY26
    Q2 FY27
    Attritional Loss Ratio
    51.7%improved by 4.3 percentage points vs 56% for Q2 FY26
    Q2 FY27
    Acquisition Cost Ratio
    lower by 1.8 pointscompared to Q2 FY26
    Q2 FY27
    Expense Ratio
    lower by 0.4 pointscompared to Q2 FY26
    Q2 FY27
    Net Investment Loss
    $23.8 millionvs $7.8 million in Q2 FY26
    Q2 FY27
    Other Investment and Interest Income
    $4.1 million
    Q2 FY27

    partially offset Solasglas loss

    Liquidity Funds
    $12 million
    year-end 2025

    balance at Funds at Lloyd's, moved from cash and cash equivalents to Lloyd's approved liquidity fund

    Liquidity Funds
    majority of balance
    H1 2026

    moved from cash and cash equivalents to Lloyd's approved liquidity fund

    Industry KPIs

    7
    MetricValueDetails
    Combined ratio100.1%%
    Capital returns$14.2 millionUSD
    Catastrophe losses$20 millionUSD
    Book value per share$20.61USD
    Net investment income-$23.8 millionUSD
    Net premiums written earnedUp 2%%
    Prior year reserve development0.4%%

    Product announcements

    1
    ProductTypeDetails
    Greenlight Re Innovations Syndicate 3456expansion

    Risks & headwinds

    4
    Middle East conflict lossesQ2 FY27 (provision for events up to June 30, 2026)

    $20 million provision in Q2 FY27 (total $25 million with Q1 FY27). $7.6 million from one known full limit loss, $9.9 million from other specific event losses, $7.5 million IBNR.

    Mitigation: Exposure decreasing as cedents reduce exposures and company non-renewed several accounts.

    Oil refinery explosion lossQ2 FY27

    $6.5 million provision in Q2 FY27.

    Softening market trendsQ2 FY27 and ongoing

    Net written premium down 11% in Q2 FY27.

    Mitigation: Committed to maintaining underwriting discipline; reduced net exposure.

    High degree of uncertainty in Middle East conflict loss estimatesOngoing

    high degree of uncertainty

    Mitigation: Reserve posted is believed to be prudent; closely monitoring the situation.

    What to watch in Q3 FY27

    4

    Solasglas Investment Allocation

    Next quarter / ongoing
    CurrentNet exposure around 33% at Q2 end, 39% at July end.
    TargetIncreased allocation to Solasglas fund.

    Why it matters

    Potential increase in allocation to a high-performing investment strategy could significantly impact overall profitability and book value growth.

    At the same time, we're just coming out -- we've come out of a very strong reinsurance market. It's now -- we're in a softer phase. So we're very actively thinking about how we redeploy capital. And absolutely, one of the options is to increase the allocation to Solasglas, and I would not be surprised if that happens.

    Q&A highlights

    3

    Asked for elaboration on total Middle East exposure, direct or reinsurance facilities.

    Greg Richardson stated that marine and aviation in the Middle East is an area of concentration for Greenlight Re, where they are a respected player. He confirmed they expect meaningful losses from such events, similar to the Ukraine war, but these are well within risk management guidelines and expectations. He did not quantify total exposure.

    “So when we have events like this, the Ukraine war is another example, we do expect be -- have meaningful losses. And indeed, we've experienced that in the Middle East as we did in the Ukraine earlier. It is not as big as our cat exposures, but there's more frequency perhaps. So we're very comfortable with the losses that we've had. It's well within our risk management guidelines and expectations.”

    asked by Ross Haberman · answered by Greg Richardson

    2 min read6 chapters

    Detailed Narrative

    01

    Underwriting Performance and Catastrophe Losses

    The company reported a marginal underwriting loss of $0.2 million, resulting in a combined ratio of 100.1% for Q2 FY27. This included 17.1 percentage points of cat and large losses, significantly higher than 4% in Q2 FY26. Key drivers were a $20 million provision for the Middle East conflict (totaling $25 million with Q1) and a $6.5 million loss from a QatarEnergy gas facility fire.

    02

    Investment Portfolio Challenges and Rebound

    The Solasglas fund returned negative 5.4% in Q2 FY27, primarily due to a short basket of AI-adjacent stocks detracting 12.3% and macro positions (SOFR futures, gold) detracting 5.4%. However, the investment loss was largely reversed in July, with Solasglas returning 4.9%, bringing the year-to-date return to 6.1% and net exposure to 39% by July end.

    03

    Innovations Segment Growth and Profitability

    The Innovations segment demonstrated strong performance, generating $2.6 million of underwriting profit and an 89.7% combined ratio in Q2 FY27. Gross written premiums for this segment increased by 12% to $30.9 million, and net earned premiums rose by 16% to $24.9 million, driven by new business and existing treaties.

    04

    Market Conditions and Exposure Management

    Softening market trends continued across most lines, leading to an 11% decrease in net written premium as the company reduced net exposure. Despite this, overall gross written premium was up 2% due to Innovations growth. Management emphasized maintaining underwriting discipline in this environment.

    05

    Strategic Expansion at Lloyd's

    Greenlight Re received approval in principle from the Council of Lloyd's to transition its Syndicate-in-a-Box (Greenlight Re Innovations Syndicate 3456) to a full syndicate effective January 1, 2027. This transition is expected to enable further growth and diversification into new MGA and treaty reinsurance channels, cementing the company's position in the Lloyd's market.

    06

    Capital Allocation and Shareholder Returns

    The company repurchased $14.2 million of shares in Q2 FY27 and an additional $3.9 million subsequently, totaling $23.1 million year-to-date. With $36 million remaining under the current repurchase plan, management continues to evaluate opportunistic buybacks and is actively considering increasing the allocation to the high-performing Solasglas fund.

    AI-generated summary of the company’s earnings call. Not investment advice.