GREENLIGHT CAPITAL RE, LTD. - FORM 8-K - EX-99.1 - PRESS RELEASE - May 5, 2014

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GREENLIGHT RE ANNOUNCES
FIRST QUARTER 2014 FINANCIAL RESULTS

GRAND CAYMAN, Cayman Islands - May 5, 2014 - Greenlight Capital Re, Ltd. (NASDAQ: GLRE) today announced financial results for the first quarter ended March 31, 2014. Greenlight Re reported net loss of $8.9 million for the first quarter of 2014 compared to net income of $56.7 million for the same period in 2013. The net loss per share was $0.24 compared to fully diluted net income per share of $1.52 for the same period in 2013.

Fully diluted adjusted book value per share was $27.61 as of March 31, 2014, a 17.7% increase from $23.45 per share as of March 31, 2013.

Financial and operating highlights for Greenlight Re for the first quarter ended March 31, 2014 include:

•
Gross written premiums of $118.9 million, compared to $127.0 million in the first quarter of 2013; net earned premiums were $111.7 million, an increase from $109.5 million reported in the prior-year period.

•
Underwriting income of $6.5 million, compared to underwriting income of $1.9 million in the first quarter of 2013.

•
A net investment loss of 0.7% on Greenlight Re's investment portfolio managed by DME Advisors, LP compared to a net investment gain of 5.8% in the first quarter of 2013.


“Our underwriting portfolio performed adequately during the first quarter of 2014,” said Bart Hedges, Chief Executive Officer of Greenlight Re. “We continue to focus our underwriting efforts on creating long term relationships in areas of the market that we feel provide attractive returns to our shareholders."

“Our investment portfolio had a small loss as we continue to be defensively positioned in an uncertain investment environment,” stated David Einhorn, Chairman of the Board of Directors. “Our underwriting team continues to proceed carefully under challenging reinsurance market conditions.”

 
Conference Call Details

Greenlight Re will hold a live conference call to discuss its financial results for the first quarter March 31, 2014 on Tuesday, May 6, 2014 at 9:00 a.m. Eastern time.  The conference call title is Greenlight Capital Re, Ltd. First Quarter 2014 Earnings Call.

To participate in the Greenlight Capital Re, Ltd. First Quarter 2014 Earnings Call, please dial in to the conference call at:
    
U.S. toll free             1-888-317-6016


International            1-412-317-6016

The conference call can also be accessed via webcast at:

http://services.choruscall.com/links/glre140506.html

A telephone replay of the call will be available from 11:00 a.m. Eastern time on May 6, 2014 until 9:00 a.m. Eastern time on May 14, 2014.  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 10043451. 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 and RSUs 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.


Contact:
Garrett Edson
ICR
(203) 682-8331
IR@greenlightre.ky



Media:
Brian Ruby
ICR
(203) 682-8268
Brian.ruby@icrinc.com





GREENLIGHT CAPITAL RE, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
March 31, 2014 and December 31, 2013
(expressed in thousands of U.S. dollars, except per share and share amounts)
 
March 31, 2014
 
December 31, 2013
 
(unaudited)
 
(audited)
Assets
 
 
 
Investments
 
 
 
Debt instruments, trading, at fair value
$
4,330

 
$
4,312

Equity securities, trading, at fair value
1,227,911

 
1,282,156

Other investments, at fair value
110,709

 
107,211

Total investments
1,342,950

 
1,393,679

Cash and cash equivalents
4,283

 
3,722

Restricted cash and cash equivalents
1,228,916

 
1,334,074

Financial contracts receivable, at fair value
82,623

 
104,048

Reinsurance balances receivable
185,833

 
167,340

Loss and loss adjustment expenses recoverable
16,192

 
16,829

Deferred acquisition costs, net
53,046

 
51,797

Unearned premiums ceded
6,050

 
3,173

Notes receivable
15,917

 
16,049

Other assets
5,475

 
4,565

Total assets
$
2,941,285

 
$
3,095,276

Liabilities and equity
 
 
 
Liabilities
 
 
 
Securities sold, not yet purchased, at fair value
$
986,408

 
$
1,111,690

Financial contracts payable, at fair value
23,659

 
18,857

Due to prime brokers
285,896

 
314,702

Loss and loss adjustment expense reserves
329,012

 
329,894

Unearned premium reserves
177,332

 
173,057

Reinsurance balances payable
43,382

 
38,789

Funds withheld
9,804

 
10,126

Other liabilities
12,598

 
11,857

Total liabilities
1,868,091

 
2,008,972

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, 30,958,744 (2013: 30,791,865): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,949 (2013: 6,254,949))
3,721

 
3,705

Additional paid-in capital
497,574

 
496,622

Retained earnings
542,387

 
551,268

Shareholders’ equity attributable to shareholders
1,043,682

 
1,051,595

Non-controlling interest in joint venture
29,512

 
34,709

Total equity
1,073,194

 
1,086,304

Total liabilities and equity
$
2,941,285

 
$
3,095,276







GREENLIGHT CAPITAL RE, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME

For the three months ended March 31, 2014 and 2013
(expressed in thousands of U.S. dollars, except per share and share amounts)

 
 
Three months ended March 31,
 
 
2014
 
2013
Revenues
 
 
 
 
Gross premiums written
 
$
118,901

 
$
126,964

Gross premiums ceded
 
(5,940
)
 
3,978

Net premiums written
 
112,961

 
130,942

Change in net unearned premium reserves
 
(1,272
)
 
(21,471
)
Net premiums earned
 
111,689

 
109,471

Net investment income (loss)
 
(10,150
)
 
61,139

Other income, net
 
441

 
389

Total revenues
 
101,980

 
170,999

Expenses
 
 
 
 
Loss and loss adjustment expenses incurred, net
 
67,363

 
66,278

Acquisition costs, net
 
37,796

 
41,296

General and administrative expenses
 
6,459

 
3,760

Total expenses
 
111,618

 
111,334

Income (loss) before income tax expense
 
(9,638
)
 
59,665

Income tax (expense) benefit
 
560

 
(308
)
Net income (loss) including non-controlling interest
 
(9,078
)
 
59,357

(Income) loss attributable to non-controlling interest in joint venture
 
197

 
(2,624
)
Net income (loss)
 
$
(8,881
)
 
$
56,733

Earnings (loss) per share
 
 
 
 
Basic
 
$
(0.24
)
 
$
1.54

Diluted
 
$
(0.24
)
 
$
1.52

Weighted average number of ordinary shares used in the determination of earnings (loss) per share
 
 
 
 
Basic
 
36,808,386

 
36,730,315

Diluted
 
36,808,386

 
37,424,894


The following table provides the ratios for the three months ended March 31, 2014 and 2013:
 
Three months ended March 31,
 
Three months ended March 31,
 
 
 
2014
 
 
 
 
 
2013
 
 
 
Frequency
 
Severity
 
Total
 
Frequency
 
Severity
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Loss ratio
62.8
%
 
18.8
%
 
60.3
%
 
71.2
%
 
(676.4
)%
 
60.5
 %
Acquisition cost ratio
34.9
%
 
16.1
%
 
33.8
%
 
37.6
%
 
46.2
 %
 
37.7
 %
Composite ratio
97.7
%
 
34.9
%
 
94.1
%
 
108.8
%
 
(630.2
)%
 
98.2
 %
Internal expense ratio
 
 
 
 
4.8
%
 
 
 
 
 
4.5
 %
Corporate expense ratio
 
 
 
 
1.0
%
 
 
 
 
 
(1.0
)%
Combined ratio
 
 
 
 
99.9
%
 
 
 
 
 
101.7
 %

GREENLIGHT CAPITAL RE, LTD. Reports