pressrelease.htm

GREENLIGHT RE ANNOUNCES

FOURTH QUARTER AND YEAR END 2010 FINANCIAL RESULTS

GRAND CAYMAN, Cayman Islands (February 22, 2011) - Greenlight Capital Re, Ltd. (NASDAQ: GLRE) today announced financial results for the fourth quarter and year ended December 31, 2010. Greenlight Re reported net income of $56.4 million for the fourth quarter of 2010 compared to net income of $57.3 million for the same period in 2009. For the fourth quarter of 2010, net income per share was $1.51, on a fully diluted basis compared to $1.55 for the same period in 2009.

Fully diluted adjusted book value per share as of December 31, 2010 was $21.39, a 12.9% increase from $18.95 per share as of December 31, 2009.

For the year ended December 31, 2010, net income was $90.6 million compared to net income of $209.5 million for the year ended December 31, 2009. The net income per share for 2010 was $2.44, on a fully diluted basis, compared to net income per share of $5.71 for 2009.

“Both the underwriting result and the investment result were adequate in 2010,” said David Einhorn, Chairman of the Board of Directors of Greenlight Re. “The full year increase in gross written premium should carry forward into growth in earned premium in 2011, even as we have reduced our catastrophe exposure. We have added significantly to staff, complementing our service oriented model with additional senior professionals who will help us continue to develop deeper client relationships.”

Financial and operating highlights for Greenlight Re in the fourth quarter and year ended December 31, 2010 include:

●

Gross written premiums in the fourth quarter of 2010 were $107.8 million compared to $50.9 million in the fourth quarter of 2009, while net earned premiums were $103.6 million, an increase from $62.5 million reported in the fourth quarter of last year. For the full year 2010, gross written premiums were $414.9 million compared to $258.8 million in 2009, while net earned premiums were $287.7 million compared to $214.7 million in 2009.

●	The combined ratio for 2010 was 102.8% an increase from a combined ratio of 96.5% in 2009.

●

Net investment income reported in the fourth quarter was $64.3 million, a gain of 6.5% on the investment portfolio, compared to net investment income of $51.2 million, a 6.4% gain in the fourth quarter of 2009. For the full year 2010, net investment income was $104.0 million, an 11.0% gain, compared to net investment income of $199.9 million, a 32.1% gain in 2009.

“In 2010 Greenlight Re was able to expand our frequency-oriented portfolio and develop a presence in the European Union through our new subsidiary in Ireland,” said Len Goldberg, Chief Executive Officer of Greenlight Re. “We continue to grow in a soft reinsurance market by finding niche opportunities and providing customized solutions for our clients. While we experienced adverse development on a discontinued motor contract, we did not suffer any catastrophe losses during the year. We believe that over time the performance of our underwriting portfolio will demonstrate key comparative advantages of our underwriting strategy.”

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, 2010 on Wednesday, February 23, 2011 at 9:00 a.m. Eastern time. The conference call title is Greenlight Capital Re, Ltd. Fourth Quarter and Year End 2010 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://www.talkpoint.com/viewer/starthere.asp?Pres=134280

A telephone replay of the call will be available from 11:00 a.m. Eastern time on February 23, 2011 until 9:00 a.m. Eastern time on March 10, 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 448223. 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 A.M. Best "A-" (Excellent) rated 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.

Contact:

Alex Stanton

Stanton Public Relations & Marketing

(212) 780-0701

astanton@stantonprm.com

GREENLIGHT CAPITAL RE, LTD.

CONSOLIDATED BALANCE SHEETS

December 31, 2010 and 2009

(expressed in thousands of U.S. dollars, except per share and share amounts)

	2010		2009
Assets
Investments
Debt instruments, trading, at fair value	$	15,610	$	95,838
Equity securities, trading, at fair value		839,921		593,201
Other investments, at fair value		196,490		141,561
Total investments		1,052,021		830,600
Cash and cash equivalents		45,540		31,717
Restricted cash and cash equivalents		977,293		590,871
Financial contracts receivable, at fair value		28,701		30,117
Reinsurance balances receivable		109,567		82,748
Loss and loss adjustment expenses recoverable		11,976		7,270
Deferred acquisition costs, net		87,389		34,401
Unearned premiums ceded		7,424		6,478
Notes receivable		14,205		15,424
Other assets		3,886		4,754
Total assets	$	2,338,002	$	1,634,380
Liabilities and shareholders’ equity
Liabilities
Securities sold, not yet purchased, at fair value	$	726,737	$	570,875
Financial contracts payable, at fair value		22,746		16,200
Due to prime brokers		273,071		—
Loss and loss adjustment expense reserves		186,467		137,360
Unearned premium reserves		234,983		118,899
Reinsurance balances payable		20,164		34,301
Funds withheld		22,887		14,711
Other liabilities		11,786		12,796
Total liabilities		1,498,841		905,142
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, 30,200,835 (2009: 30,063,893): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,949 (2009: 6,254,949)		3,646		3,632
Additional paid-in capital		485,555		481,449
Non-controlling interest in joint venture		45,758		30,597
Retained earnings		304,202		213,560
Total shareholders’ equity		839,161		729,238
Total liabilities and shareholders’ equity	$	2,338,002	$	1,634,380

GREENLIGHT CAPITAL RE, LTD.

CONSOLIDATED STATEMENTS OF INCOME

Years ended December 31, 2010, 2009 and 2008

(expressed in thousands of U.S. dollars, except per share and share amounts)

	2010			2009			2008
Revenues
Gross premiums written	$	414,850		$	258,818		$	162,395
Gross premiums ceded		(12,011	)		(13,276	)		(16,396	)
Net premiums written		402,839			245,542			145,999
Change in net unearned premium reserves		(115,138	)		(30,862	)		(31,050	)
Net premiums earned		287,701			214,680			114,949
Net investment income (loss)		104,006			199,861			(126,126	)
Other income (expense), net		(1,079	)		4,538			—
Total revenues		390,628			419,079			(11,177	)
Expenses
Loss and loss adjustment expenses incurred, net		177,018			119,045			55,485
Acquisition costs, net		102,645			69,232			41,649
General and administrative expenses		16,187			18,994			13,756
Total expenses		295,850			207,271			110,890
Net income (loss) before non-controlling interest and income tax expense		94,778			211,808			(122,067	)
Non-controlling interest in (income) loss of joint venture		(3,740	)		(2,312	)		1,163
Net income (loss) before income tax expense		91,038			209,496			(120,904	)
Income tax (expense) benefit		(396	)		49			—
Net income (loss)	$	90,642		$	209,545		$	(120,904	)
Earnings (loss) per share
Basic	$	2.49		$	5.78		$	(3.36	)
Diluted		2.44			5.71			(3.36	)
Weighted average number of ordinary shares used in the determination of:
Basic		36,420,719			36,230,501			35,970,479
Diluted		37,224,173			36,723,552			35,970,479

	2010									2009									2008
	Frequency			Severity			Total			Frequency			Severity			Total			Frequency		Severity		Total
Loss ratio		68.9	%		(4.3	)%		61.5	%		56.6	%		51.2	%		55.4	%	44.4	%	57.7	%	48.3	%
Acquisition cost ratio		36.7	%		26.3	%		35.7	%		38.6	%		8.3	%		32.3	%	46.8	%	10.8	%	36.2	%
Composite ratio		105.6	%		21.1	%		97.2	%		95.2	%		59.5	%		87.7	%	91.2	%	68.5	%	84.5	%
Internal expense ratio								5.6	%								8.8	%					12.0	%
Combined ratio								102.8	%								96.5	%					96.5	%