Greenlight Re Announces Third Quarter 2009 Financial Results

GRAND CAYMAN, Cayman Islands, Nov. 2, 2009 (GLOBE NEWSWIRE) -- Greenlight Capital Re, Ltd. (Nasdaq:GLRE) today announced financial results for the third quarter of 2009. Greenlight Re reported net income of $32.3 million for the third quarter of 2009 compared to a net loss of $118.4 million for the same period in 2008. The net income per share on a fully diluted basis was $0.88 for the third quarter of 2009, compared to a net loss per share of $3.29 for the same period in 2008.

Fully diluted book value per share was $17.62 as of September 30, 2009, a 22.5% increase over $14.38 per share as of September 30, 2008.

For the nine months ended September 30, 2009, net income was $152.3 million compared to a net loss of $89.6 million for the same period in 2008. On a fully diluted basis, net income per share was $4.16 for the nine months ended September 30, 2009 compared to a loss of $2.49 for the same period in 2008.

"Our underwriting portfolio continued to grow during the quarter, while our investments posted a reasonable return as we maintained a conservative posture," said David Einhorn, Chairman of the Board of Directors of Greenlight Re. "Even though the favorable hurricane season and recovery in the capital markets have prevented insurance rates from rising as we anticipated, we continue to find underwriting opportunities with attractive economics."

Greenlight Re's financial and operating highlights for the third quarter and nine months ended September 30, 2009 include the following:

 * Gross written premiums in the third quarter of 2009 were $66.0
   million compared to $37.7 million in the third quarter of 2008,
   while net earned premiums were $56.7 million compared to $28.6
   million, respectively.  For the first nine months of 2009, gross
   written premiums were $207.9 million compared to $133.8 million for
   the first nine months of 2008, while net earned premiums were
   $152.2 million compared to $80.8 million, respectively.

 * The combined ratio for the nine months ended September 30, 2009 was
   97.8% compared to 97.5% for the same period in 2008.

 * Net investment income in the third quarter was $32.6 million, a
   return of 4.3% on our investment portfolio.  This compares to a
   loss of $117.8 million in the third quarter of 2008, when we
   reported a negative 15.9% return on investments.  For the first
   nine months of 2009, net investment income was $148.7 million
   compared to a net investment loss of $92.5 million during the
   comparable period in 2008.

"Our third quarter results reflect continued success in building our underwriting portfolio in a sustainable way and leveraging our partnerships for competitive advantage," said Len Goldberg, Chief Executive Officer of Greenlight Re. "We believe we are well positioned to navigate a continuing soft market and have the ability to capitalize on any dislocations that may arise. Our strong risk-adjusted returns on both sides of the balance sheet have increased our capital base to better serve our clients while driving long-term growth in book value per share."

Conference Call Details

Greenlight Re will hold a live conference call to discuss its financial results for the third quarter of 2009 on Tuesday, November 3, 2009 at 9:00 a.m. Eastern time. The conference call title is Greenlight Capital Re, Ltd. Third Quarter 2009 Earnings Call.

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

 U.S. toll free                         1-800-860-2442
 International                          1-412-858-4600

The conference call can also be accessed via webcast at:

http://www.talkpoint.com/viewer/starthere.asp?Pres=128449

A telephone replay of the call will be available from 11:00 a.m. Eastern time on November 3, 2009 until 9:00 a.m. Eastern time on November 18, 2009. 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 435001. An audio file of the call will also be available on the Company's website, www.greenlightre.ky .

Regulation G

Fully diluted book value per share is a non-GAAP measure and represents basic 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. We believe that long term growth in fully diluted book value per share is the most relevant measure of our financial performance. In addition, fully diluted 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 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 investment 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

               September 30, 2009 and December 31, 2008
               (expressed in thousands of U.S. dollars,
                  except per share and share amounts)


                                               Sept. 30,
                                                 2009        Dec. 31,
                                              (unaudited)      2008
                                              -----------  -----------
 Assets
 Investments
 Debt instruments, trading, at fair value     $   157,686  $    70,214
 Equity securities, trading, at fair value        546,805      409,329
 Other investments, at fair value                  66,594       14,423
                                              -----------  -----------
 Total investments                                771,085      493,966
 Cash and cash equivalents                         23,314       94,144
 Restricted cash and cash equivalents             493,755      248,330
 Financial contracts receivable, at fair value     18,039       21,419
 Reinsurance balances receivable                   87,092       59,573
 Loss and loss adjustment expense recoverables      6,651       11,662
 Deferred acquisition costs, net                   37,180       17,629
 Unearned premiums ceded                            7,819        7,367
 Notes receivable                                  16,152        1,769
 Other assets                                       5,302        2,146
                                              -----------  -----------
 Total assets                                 $ 1,466,389  $   958,005
                                              ===========  ===========
 Liabilities and shareholders' equity
 Liabilities
 Securities sold, not yet purchased, at
  fair value                                  $   469,718  $   234,301
 Financial contracts payable, at fair value        16,296       17,140
 Loss and loss adjustment expense reserves        131,611       81,425
 Unearned premium reserves                        134,358       88,926
 Reinsurance balances payable                      36,214       34,963
 Funds withheld                                     3,212        3,581
 Other liabilities                                 10,048        6,229
 Performance compensation payable to related
  party                                            16,255           --
                                              -----------  -----------
 Total liabilities                                817,712      466,565
                                              -----------  -----------
 Shareholders' 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, 30,053,893 (2008: 29,781,736);
  Class B: par value $0.10; authorized,
  25,000,000; issued and outstanding,
  6,254,949 (2008: 6,254,949))                      3,631        3,604
 Additional paid-in capital                       480,553      477,571
 Non-controlling interest in joint venture          8,111        6,058
 Retained earnings                                156,382        4,207
                                              -----------  -----------
 Total shareholders' equity                       648,677      491,440
                                              -----------  -----------
 Total liabilities and shareholders' equity   $ 1,466,389  $   958,005
                                              ===========  ===========




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


    For the three and nine months ended September 30, 2009 and 2008
       (expressed in thousands of U.S. dollars, except per share
                           and share amounts)

                         Three months ended       Nine months ended
                            September 30,           September 30,
                          2009        2008        2009        2008
                       ----------- ----------- ----------- -----------
 Revenues
 Gross premiums
  written              $    65,983 $    37,684 $   207,901 $   133,810
 Gross premiums ceded       (2,894)      1,169     (10,725)    (13,718)
                       ----------- ----------- ----------- -----------
 Net premiums written       63,089      38,853     197,176     120,092
 Change in net unearned
  premium reserves          (6,432)    (10,256)    (44,979)    (39,321)
                       ----------- ----------- ----------- -----------
 Net premiums earned        56,657      28,597     152,197      80,771
 Net investment
  income (loss)             32,628    (117,809)    148,667     (92,546)
 Other income (expense)       (145)         --       1,909          --
                       ----------- ----------- ----------- -----------
 Total revenues             89,140     (89,212)    302,773     (11,775)
                       ----------- ----------- ----------- -----------
 Expenses
 Loss and loss
  adjustment expenses
  incurred, net             34,643      14,777      88,386      36,238
 Acquisition costs, net     17,767      12,204      46,591      31,361
 General and
  administrative
  expenses                   4,081       3,452      13,788      11,122
                       ----------- ----------- ----------- -----------
 Total expenses             56,491      30,433     148,765      78,721
                       ----------- ----------- ----------- -----------
 Net income (loss)
  before non-
  controlling interest
  and income tax
  expense                   32,649    (119,645)    154,008     (90,496)
 Non-controlling
  interest in (income)
  loss of joint venture       (380)      1,212      (1,716)        851
                       ----------- ----------- ----------- -----------
 Net income before
  income tax expense        32,269    (118,433)    152,292     (89,645)
 Income tax expense            (11)         --         (28)         --
                       ----------- ----------- ----------- -----------
 Net income (loss)     $    32,258 $  (118,433)$   152,264 $   (89,645)
                       =========== =========== =========== ===========
 Earnings (loss) per
  share
 Basic                 $      0.89 $     (3.29)$      4.21 $     (2.49)
 Diluted               $      0.88 $     (3.29)$      4.16 $     (2.49)
 Weighted average
  number of Ordinary
  Shares used in the
  determination of
 Basic                  36,286,514  35,995,236  36,202,860  35,987,778
 Diluted                36,828,726  35,995,236  36,627,849  35,987,778


 The following table provides the ratios for the nine months ended
 September 30, 2009 and 2008:

                 Nine months ended             Nine months ended
                  Sept. 30, 2009                 Sept. 30, 2008
           ----------------------------- -----------------------------
           Frequency  Severity   Total   Frequency  Severity   Total
           --------- --------- --------- --------- --------- ---------
 Loss
  ratio        60.8%     49.0%     58.1%     35.4%     64.3%     44.9%
 Acquis-
  ition
  cost
  ratio        37.4%      8.0%     30.6%     53.5%      8.8%     38.8%
           --------- --------- --------- --------- --------- ---------
 Composite
  ratio        98.2%     57.0%     88.7%     88.9%     73.1%     83.7%
 Internal
  expense
  ratio                             9.1%                         13.8%
                               ---------                     ---------
 Combined
  ratio                            97.8%                         97.5%
                               =========                     =========

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