Revisiting Greenlight Capital Re: Old Same 'Hold'

The CrickAnt
928 Followers
(7min)

Summary

  • Greenlight Re's underwriting performance has been weak, with significant losses in 2024 due to catastrophe events and adverse prior-year claim development.
  • Despite solid investment returns, including a 9.8% total return in 2024, Los Angeles wildfires could offset much of Greenlight's potential underwriting gains in 2025.
  • Greenlight Re's valuation remains low, trading at 0.75 times its book value, reflecting skepticism about David Einhorn's ability to outperform traditional indexes.
  • My "HOLD" rating persists, as Greenlight Re's investment performance is crucial, but it has underperformed compared to the S&P 500 since 2019.

Close Up Shot of a Computer Monitor Screen with Real-Time Stocks, Commodities and Exchange Market Charts and Tickers on a Multi-Display Workstation in a Financial Business Office.

gorodenkoff

Greenlight Re (NASDAQ:GLRE) is the reinsurance vehicle used by David Einhorn to invest in the stock markets. The Bermuda-based reinsurer has invested in David Einhorn's funds over the years, supporting the investment decisions of the billionaire.

This article was written by

928 Followers
The CrickAnt is an actuary for an insurance company utilizing his work experience to do analysis on insurance and reinsurance companies. He is a contributing author to the investing group Cash Flow Club where along with Darren McCammon and Jonathan Weber, they focus on company cash flows and their access to capital. Core features of the Cash Flow Club include: access to the leader’s personal income portfolio targeting 6%+ yield, community chat, the “Best Opportunities” List, performance transparency and coverage of energy midstream, commercial mREITs, BDCs, and shipping sectors. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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