DGAP-News: Greenlight Re Announces First Quarter 2011 Financial Results

Greenlight Capital Re

02.05.2011 22:40
—————————————————————————

GRAND CAYMAN, Cayman Islands, 2011-05-02 22:40 CEST (GLOBE NEWSWIRE) —
Greenlight Capital Re, Ltd. (Nasdaq:GLRE) today announced financial results for
the first quarter of 2011. Greenlight Re reported a net loss of $43.0 million
for the first quarter of 2011 compared to a net loss of $12.4 million for the
same period in 2010. The net loss per share was $1.19 for the first quarter of
2011, compared to a net loss per share of $0.34 for the same period in 2010.

Fully diluted adjusted book value per share was $20.23 as of March 31, 2011, an
8.8% increase from $18.60 per share as of March 31, 2010.

–A number of global events occurred in the first quarter of 2011 which impacted
the reinsurance sector. We reported a small underwriting loss in what remains a
challenging environment,– said David Einhorn, Chairman of the Board of
Directors of Greenlight Re. –Our investment portfolio continued to be
defensively positioned, and suffered a loss due principally to the
underperformance of our short positions.–

Other financial and operating highlights for Greenlight Re for the first
quarter ended March 31, 2011 include:

— Gross written premiums in the first quarter of 2011 were $100.7 million
compared to $66.9 million in the first quarter of 2010, while net earned
premiums were $105.2 million, an increase from $55.3 million reported in
the first quarter of last year.
— Gross loss provisions totaling $10.0 million have been booked in respect of
estimated losses from first quarter 2011 earthquakes in Japan and New
Zealand. The loss, net of additional premiums, was $8.8 million. The
combined ratio was 107.4% in the first quarter of 2011 compared to 92.6% in
the first quarter of 2010.
— A net investment loss of $36.2 million or 3.4% was reported on the
investment portfolio in the first quarter of 2011, compared to a net
investment loss of $16.8 million, or 1.9%, in the first quarter of 2010.

–Our frequency-oriented portfolio was not impacted materially by the large
events that resonated throughout the industry,– said Len Goldberg, Chief
Executive Officer of Greenlight Re. –We remain committed to our strategy and
are pleased with our underwriting portfolio. We are well positioned to take
advantage of any upturn in pricing that may result from recent industry
events.–

Conference Call Details

Greenlight Re will hold a live conference call to discuss its financial results
for the first quarter of 2011 on Tuesday, May 3, 2011 at 9:00 a.m. Eastern
time. The conference call title is Greenlight Capital Re, Ltd. First Quarter
2011 Earnings Call.

To participate, please dial in to the conference call at:

U.S. toll free 1-877-317-6789

International 1-412-317-6789

The conference call can also be accessed via webcast at:

https://services.choruscall.com/links/glre110503.html

A telephone replay of the call will be available from 11:00 a.m. Eastern time
on May 3, 2011 until 9:00 a.m. Eastern time on May 18, 2011. The replay of the
call may be accessed by dialing 1-877-344-7529 (U.S. toll free) or
1-412-317-0088 (international), access code 450270. An audio file of the call
will also be available on the Company–s website, www.greenlightre.ky .

Regulation G

Fully diluted adjusted book value per share is a non-GAAP measure and
represents basic adjusted book value per share combined with the impact from
dilution of share based compensation including in-the-money stock options as of
any period end. Book value is adjusted by subtracting the amount of the
non-controlling interest in joint venture from total shareholders– equity to
calculate adjusted book value. We believe that long term growth in fully
diluted adjusted book value per share is the most relevant measure of our
financial performance. In addition, fully diluted adjusted book value per share
may be of benefit to our investors, shareholders and other interested parties
to form a basis of comparison with other companies within the reinsurance
industry.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the
U.S. federal securities laws. We intend these forward-looking statements to be
covered by the safe harbor provisions for forward-looking statements in the
U.S. Federal securities laws. These statements involve risks and uncertainties
that could cause actual results to differ materially from those contained in
forward-looking statements made on behalf of the Company. These risks and
uncertainties include the impact of general economic conditions and conditions
affecting the insurance and reinsurance industry, the adequacy of our reserves,
our ability to assess underwriting risk, trends in rates for property and
casualty insurance and reinsurance, competition, investment market
fluctuations, trends in insured and paid losses, catastrophes, regulatory and
legal uncertainties and other factors described in our annual report on Form
10-K filed with the Securities and Exchange Commission. The Company undertakes
no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

About Greenlight Capital Re, Ltd.

Greenlight Re (www.greenlightre.ky) is an AM Best –A— (Excellent) rated
specialist property and casualty reinsurance company based in the Cayman
Islands. The Company provides a variety of custom-tailored reinsurance
solutions to the insurance, risk retention group, captive and financial
marketplaces. Established in 2004, Greenlight Re selectively offers customized
reinsurance solutions in markets where capacity and alternatives are limited.
With a focus on deriving superior returns from both sides of the balance sheet,
Greenlight Re–s assets are managed according to a value-oriented equity-focused
strategy that complements the Company–s business goal of long-term growth in
book value per share.

The Greenlight Capital Re logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5571

GREENLIGHT CAPITAL RE, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, 2011 and December 31, 2010
(expressed in thousands of U.S. dollars, except per share and share amounts)

March 31, December
2011 31, 2010
(unaudited (audited)
)
———————–
Assets
Investments
Debt instruments, trading, at fair value $2,912 $15,610
Equity securities, trading, at fair value 897,429 839,921
Other investments, at fair value 197,461 196,490———————–
Total investments 1,097,802 1,052,021
Cash and cash equivalents 37,029 45,540
Restricted cash and cash equivalents 938,173 977,293
Financial contracts receivable, at fair value 26,700 28,701
Reinsurance balances receivable 109,421 109,567
Loss and loss adjustment expenses recoverable 14,580 11,976
Deferred acquisition costs, net 87,090 87,389
Unearned premiums ceded 7,809 7,424
Notes receivable 15,367 14,205
Other assets 2,557 3,886
———————–
Total assets $2,336,528 $2,338,002
=======================
Liabilities and shareholders– equity
Liabilities
Securities sold, not yet purchased, at fair value $636,675 $726,737
Financial contracts payable, at fair value 12,648 22,746
Due to prime brokers 401,474 273,071
Loss and loss adjustment expense reserves 219,709 186,467
Unearned premium reserves 227,630 234,983
Reinsurance balances payable 18,845 20,164
Funds withheld 24,562 22,887
Other liabilities 9,331 11,786
———————–
Total liabilities 1,550,874 1,498,841
———————–
Shareholders– equity
Preferred share capital (par value $0.10; authorized, ? ?
50,000,000; none issued)
Ordinary share capital (Class A: par value $0.10; 3,654 3,646
authorized, 100,000,000; issued and outstanding,
30,285,572 (2010: 30,200,835): Class B: par value
$0.10; authorized, 25,000,000; issued and outstanding,
6,254,949 (2010: 6,254,949))
Additional paid-in capital 486,566 485,555
Non-controlling interest in joint venture 34,222 45,758
Retained earnings 261,212 304,202
———————–
Total shareholders– equity 785,654 839,161
———————–
Total liabilities and shareholders– equity $2,336,528 $2,338,002
=======================

GREENLIGHT CAPITAL RE, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

For the three months ended March 31, 2011 and 2010
(expressed in thousands of U.S. dollars, except per share and share amounts)Three months ended
March 31,
———————–
2011 2010
———————–

Revenues
Gross premiums written $100,739 $66,887
Gross premiums ceded (3,476) (578)
———————–
Net premiums written 97,263 66,309
Change in net unearned premium reserves 7,894 (10,993)
———————–
Net premiums earned 105,157 55,316
Net investment loss (36,176 (16,831)
Other income (expense), net (261) (154)
———————–
Total revenues 68,720 38,331
———————–
Expenses
Loss and loss adjustment expenses incurred, net 65,725 29,135
Acquisition costs, net 42,121 16,910
General and administrative expenses 4,999 5,147
———————–
Total expenses 112,845 51,192
———————–
Net loss before non-controlling interest and income tax (44,125) (12,861)
expense
Non-controlling interest in loss of joint venture 1,136 479
———————–
Net loss before income tax expense (42,989) (12,382)
Income tax expense (1) (9)
———————–
Net loss $(42,990) $(12,391)
=======================
Loss per share
Basic $(1.19) $(0.34)
Diluted $(1.19) $(0.34)
Weighted average number of ordinary shares used in the
determination of:
Basic 36,118,963 35,949,107
Diluted 36,118,963 35,949,107

The following table provides the ratios for the three months ended March 31,
2011 and 2010.

Three months ended Three months ended
March 31, 2011 March 31, 2010——————————————————–
Frequency Severity Total Frequency Severity Total
——————————————————–
Loss ratio 57.1% 139.8% 62.5% 62.6% 4.4% 52.7%
Acquisition cost ratio 42.0% 11.7% 40.1% 34.9% 9.7% 30.6%
——————————————————–
Composite ratio 99.1% 151.5% 102.6% 97.5% 14.1% 83.3%
Internal expense ratio 4.8% 9.3%
——– ——
Combined ratio 107.4% 92.6%
======== ======

CONTACT: Alex Stanton
Stanton Public Relations&Marketing
(212) 780-0701
astanton@stantonprm.com
News Source: NASDAQ OMX

02.05.2011 Dissemination of a Corporate News, transmitted by DGAP –
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

DGAP–s Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

—————————————————————————

Language: English
Company: Greenlight Capital Re

Cayman Islands
Phone:
Fax:
E-mail:
Internet:
ISIN: KYG4095J1094
WKN:

End of Announcement DGAP News-Service

—————————————————————————