Greenlight Re Swings to $29.6M Q2 Loss on Investment Hit and CAT Claims
GLRE sits 37% above its 52-week low of $11.565.
Summary
Greenlight Re reported a sharp Q2 reversal, posting a net loss of $29.6 million ($0.89 per share) versus a small profit a year ago. The combined ratio jumped to 100.1% from 95.0%, driven by catastrophe losses, while the investment portfolio swung to a $23.8 million loss—Chairman Einhorn cited macro drag of about 5% and a challenging environment. Book value per share slipped 3.7% sequentially to $20.61. The company continued buying back stock aggressively, repurchasing $14.2 million in Q2 at an average $17.69, and an additional $3.9 million post-quarter at $16.42. This follows a strong Q1 that had boosted confidence; the sudden underwriting and investment deterioration will force traders to reassess near-term earnings power. The earnings call tomorrow morning will be critical for color on CAT reserve adequacy and portfolio positioning.
At the time of this announcement, GLRE was trading at $15.88 on NASDAQ in the Finance sector, with a market capitalization of approximately $542.6M. The 52-week trading range was $11.57 to $19.39. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.