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Greenlight Re Announces Fourth Quarter and Year End 2012 Financial Results

Greenlight Re Announces Fourth Quarter and Year End 2012 Financial Results

GRAND CAYMAN, Cayman Islands, Feb. 19, 2013 (GLOBE NEWSWIRE) -- Greenlight
Capital Re, Ltd. (Nasdaq:GLRE) today announced financial results for the
fourth quarter and full year ended December 31, 2012. Greenlight Re reported a
net loss of $60.6 million for the fourth quarter of 2012 compared to net
income of $70.2 million for the same period in 2011. The net loss per share
was $1.65 compared to fully diluted net income per share of $1.89 for the
prior-year period.

Fully diluted adjusted book value per share was $22.01 as of December 31,
2012, a 1.9% increase from $21.61 per share as of December 31, 2011.

Financial and operating highlights for Greenlight Re for the fourth quarter
ended December 31, 2012 include:

  *Gross written premiums in the fourth quarter of 2012 were $124.0 million,
    compared to $90.5 million in the fourth quarter of 2011; net earned
    premiums were $118.6 million, an increase from $77.1 million reported in
    the prior-year period.
    
  *An underwriting loss of $5.8 million was reported for the fourth quarter
    of 2012, compared to an underwriting loss of $1.5 million in the fourth
    quarter of 2011. During the fourth quarter of 2012, the company
    established reserves of $15.0 million ($11.6 million net of reinstatement
    premium) related to super-storm Sandy.
    
  *Net investment loss of $52.2 million was reported for the fourth quarter
    2012, representing a loss of 4.4% on Greenlight Re's investment portfolio.
    This compares to an investment gain of $77.7 million, or a 7.6% gain, in
    the fourth quarter of 2011.

"An increase in gross written premiums in the fourth quarter was more than
offset by the reserves established for Sandy claims and losses in our
investment portfolio," said Bart Hedges, Chief Executive Officer of Greenlight
Re. "Overall, for 2012, while our underwriting results were affected by
adverse development on prior year contracts and super-storm Sandy, we further
developed key relationships and took advantage of opportunities in our
non-standard automobile segment. In 2013, we will continue to remain
disciplined in our approach to new underwriting opportunities and risk
management."

Financial and operating highlights for Greenlight Re for the full year ended
December 31, 2012 include:

  *Net income of $14.6 million for the full year ended December 31, 2012
    compared to net income of $6.8 million for the year ended December 31,
    2011. Fully diluted net income per share for 2012 was $0.39, compared to
    fully diluted net income per share of $0.18 for 2011.
    
  *For the full year 2012, gross written premiums were $427.8 million
    compared to $397.7 million in 2011, while net earned premiums were $466.7
    million compared to $379.8 million in the prior year, an increase of 23%.
    
  *The combined ratio for 2012 was 112.9%, up from 103.8% in 2011.
    
  *For the full year 2012, net investment income was $78.9 million, a 7.1%
    gain, compared to $23.1 million in 2011, a 2.1% gain.

"Despite setbacks in 2012, Greenlight Re was able to preserve its capital and
continued to expand its platform in Europe and position itself for long-term
growth and capital appreciation," stated David Einhorn, Chairman of the Board
of Directors. "Our investment portfolio will continue to invest prudently to
maximize returns while mitigating risk, while our underwriting team maintains
its focused strategy on developing long-term relationships with our
reinsurance partners."

Conference Call Details

Greenlight Re will hold a live conference call to discuss its financial
results for the fourth quarter and year ended December 31, 2012 on Wednesday,
February 20, 2013 at 9:00 a.m. Eastern time. The conference call title is
Greenlight Capital Re, Ltd. Fourth Quarter and Year End 2012 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:

  http://services.choruscall.com/links/glre130220.html

A telephone replay of the call will be available from 12:00 p.m. Eastern time
on February 20, 2013 until 9:00 a.m. Eastern time on March 4, 2013. 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 10021930. 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 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 a NASDAQ listed company with specialist
property and casualty reinsurance companies based in the Cayman Islands and
Ireland. Greenlight Re 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=15397

GREENLIGHT CAPITAL RE, LTD.
CONSOLIDATED BALANCE SHEETS
                                                                
December 31, 2012 and 2011
(expressed in thousands of U.S. dollars, except per share and share amounts)
                                                                
                                                    2012         2011
Assets                                                           
Investments                                                      
Debt instruments, trading, at fair value             $1,763     $10,639
Equity securities, trading, at fair value            1,042,715    890,822
Other investments, at fair value                     133,450      128,685
Total investments                                    1,177,928    1,030,146
Cash and cash equivalents                            21,890       42,284
Restricted cash and cash equivalents                 1,206,837    957,462
Financial contracts receivable, at fair value        22,744       23,673
Reinsurance balances receivable                      173,221      141,278
Loss and loss adjustment expenses recoverable        34,451       29,758
Deferred acquisition costs, net                      59,177       68,725
Unearned premiums ceded                              3,616        27,233
Notes receivable                                     19,330       17,437
Other assets                                         3,559        5,492
Total assets                                         $2,722,753 $2,343,488
Liabilities and equity                                           
Liabilities                                                      
Securities sold, not yet purchased, at fair value    $908,368   $683,816
Financial contracts payable, at fair value           19,637       6,324
Due to prime brokers                                 326,488      260,359
Loss and loss adjustment expense reserves            356,470      241,279
Unearned premium reserves                            188,185      225,735
Reinsurance balances payable                         35,292       32,192
Funds withheld                                       17,415       38,031
Other liabilities                                    10,488       10,054
Total liabilities                                    1,862,343    1,497,790
Equity                                                           
Preferred share capital (par value $0.10;            —            —
authorized, 50,000,000; none issued)
Ordinary share capital (Class A: par value $0.10;
authorized, 100,000,000; issued and outstanding,
30,447,179 (2011: 30,283,200): Class B: par value    3,670        3,654
$0.10; authorized, 25,000,000; issued and
outstanding, 6,254,949 (2011: 6,254,949))
Additional paid-in capital                           492,469      488,478
Retained earnings                                    325,569      310,971
Shareholders' equity attributable to shareholders    821,708      803,103
Non-controlling interest in joint venture            38,702       42,595
Total equity                                         860,410      845,698
Total liabilities and equity                         $2,722,753 $2,343,488


GREENLIGHT CAPITAL RE, LTD.
CONSOLIDATED STATEMENTS OF INCOME
                                                                 
Years ended December 31, 2012, 2011 and 2010
(expressed in thousands of U.S. dollars, except per share and share amounts)
                                                                 
                                             2012       2011       2010
Revenues                                                          
Gross premiums written                        $427,844 $397,659 $414,850
Gross premiums ceded                          24,275     (46,920)   (12,011)
Net premiums written                          452,119    350,739    402,839
Change in net unearned premium reserves       14,595     29,036     (115,138)
Net premiums earned                           466,714    379,775    287,701
Net investmentincome                         78,941     23,118     104,006
Other income (expense), net                   (259)      253        (1,079)
Total revenues                                545,396    403,146    390,628
Expenses                                                          
Loss and loss adjustment expenses incurred,   366,601    241,690    177,018
net
Acquisition costs, net                        142,721    138,751    102,645
General and administrative expenses           17,539     13,892     16,187
Total expenses                                526,861    394,333    295,850
Income before income tax expense              18,535     8,813      94,778
Income tax expense                            (86)       (247)      (396)
Net income including non-controlling interest 18,449     8,566      94,382
Income attributable to non-controlling        (3,851)    (1,797)    (3,740)
interest in joint venture
Net income                                    $14,598  $6,769   $90,642
Earnings per share                                                
Basic                                         $0.40    $0.19    $2.49
Diluted                                       $0.39    $0.18    $2.44
Weighted average number of ordinary shares
used in the determination of earnings per                         
share
Basic                                         36,702,128 36,548,466 36,420,719
Diluted                                       37,361,338 37,286,454 37,224,173


The following table provides the ratios for the years ended December 31, 2012, 2011 and
2010:
                                                                          
           Year ended December 31
           2012                      2011                      2010
           Frequency Severity Total  Frequency Severity Total  Frequency Severity Total
                                                                          
Loss ratio  77.4%     101.2%   78.5%  65.7%     25.4%    63.6%  68.9%     (4.3)%   61.5%
Acquisition 31.4%     14.0%    30.6%  37.4%     20.9%    36.5%  36.7%     26.3%    35.7%
cost ratio
Composite   108.8%    115.2%   109.1% 103.1%    46.3%    100.1% 105.6%    22.0%    97.2%
ratio
Internal
expense                      3.8%                    3.7%                    5.6%
ratio
Combined                     112.9%                  103.8%                  102.8%
ratio

CONTACT: Garrett Edson
         ICR
         (203) 682-8331
         IR@greenlightre.ky
        
         Media:
         Brian Ruby
         ICR
         (203) 682-8268
         Brian.ruby@icrinc.com

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