Press Release - Q3 2013

GREENLIGHT RE ANNOUNCES

THIRD QUARTER 2013 FINANCIAL RESULTS

GRAND CAYMAN, Cayman Islands - October 30, 2013 - Greenlight Capital Re, Ltd. (NASDAQ: GLRE) today announced financial results for the third quarter ended September 30, 2013. Greenlight Re reported net income of $56.5 million for the third quarter of 2013 compared to net income of $46.1 million for the same period in 2012. Fully diluted net income per share was $1.50 compared to net income per share of $1.23 for the same period in 2012.

Fully diluted adjusted book value per share was $25.70 as of September 30, 2013, a 9.0% increase from $23.57 per share as of September 30, 2012.

“We are pleased with the positive results from both our underwriting and investing operations during the quarter,” said Bart Hedges, Chief Executive Officer of Greenlight Re. “Our underwriting portfolio continues to grow in sectors of the market which we find attractive; while the overall reinsurance market remains highly competitive, we are finding segments which we believe have favorable risk adjusted returns."

Financial and operating highlights for Greenlight Re for the third quarter ended September 30, 2013 include:


•	Gross written premiums in the third quarter of 2013 were $148.8 million, compared to $67.6 million in the third quarter of 2012; net earned premiums were $163.9 million, an increase from $116.6 million reported in the prior-year period.


•	Underwriting income of $16.0 million was reported for the third quarter of 2013, compared to an underwriting loss of $43.9 million for the third quarter of 2012.


•	The combined ratio for the nine months ended September 30, 2013 was 96.8% compared to 114.4% for the nine months ended September 30, 2012.

•

A net investment gain of 4.0% on Greenlight Re's investment portfolio managed by DME Advisors, LP was reported for the third quarter 2013 compared to a net investment gain of 8.8% in the third quarter of 2012. For the nine months ended September 30, 2013, net investment income was $134.8 million, representing a gain of 12.2%, compared to net investment income of $131.2 million during the comparable period in 2012 when Greenlight Re reported a 12.1% gain.

“During the quarter our long positions dramatically outperformed the market resulting in an adequate return for our investment portfolio,” stated David Einhorn, Chairman of the Board of Directors. “I am pleased with the results of our underwriting portfolio as we continue to focus on providing attractive reinsurance solutions to our clients.”

Conference Call Details

Greenlight Re will hold a live conference call to discuss its financial results for the third quarter of 2013 on Thursday, October 31, 2013 at 9:00 a.m. Eastern time. The conference call title is Greenlight Capital Re, Ltd. Third Quarter 2013 Earnings Call.

To participate, 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/glre131031.html

A telephone replay of the call will be available from 11:00 a.m. Eastern time on October 31, 2013 until 9:00 a.m. Eastern time on November 8, 2013. 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 10034312. An audio file of the call will also be available on the Company's website, www.greenlightre.ky .

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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

September 30, 2013 and December 31, 2012

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



	September 30, 2013		December 31, 2012
	(unaudited)		(audited)
Assets
Investments
Debt instruments, trading, at fair value	$	12,499	$	1,763
Equity securities, trading, at fair value	1,030,207		1,042,715
Other investments, at fair value	107,246		133,450
Total investments	1,149,952		1,177,928
Cash and cash equivalents	83,683		21,890
Restricted cash and cash equivalents	1,316,584		1,206,837
Financial contracts receivable, at fair value	85,555		22,744
Reinsurance balances receivable	195,064		173,221
Loss and loss adjustment expenses recoverable	17,996		34,451
Deferred acquisition costs, net	62,083		59,177
Unearned premiums ceded	3,143		3,616
Notes receivable	15,784		19,330
Other assets	4,048		3,559
Total assets	$	2,933,892	$	2,722,753
Liabilities and equity
Liabilities
Securities sold, not yet purchased, at fair value	$	1,065,072	$	908,368
Financial contracts payable, at fair value	17,962		19,637
Due to prime brokers	239,074		326,488
Loss and loss adjustment expense reserves	325,652		356,470
Unearned premium reserves	191,310		188,185
Reinsurance balances payable	38,922		35,292
Funds withheld	9,469		17,415
Other liabilities	12,018		10,488
Performance compensation payable to related party	33,818		—
Total liabilities	1,933,297		1,862,343
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, 30,622,458 (2012: 30,447,179): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,949 (2012: 6,254,949))	3,688		3,670
Additional paid-in capital	495,610		492,469
Retained earnings	467,338		325,569
Shareholders’ equity attributable to shareholders	966,636		821,708
Non-controlling interest in joint venture	33,959		38,702
Total equity	1,000,595		860,410
Total liabilities and equity	$	2,933,892	$	2,722,753

GREENLIGHT CAPITAL RE, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

For the three and nine months ended September 30, 2013 and 2012

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



	Three months ended September 30						Nine months ended September 30
	2013			2012			2013			2012
Revenues
Gross premiums written	$	148,765		$	67,644		$	410,927		$	303,850
Gross premiums ceded	(2,389		)	30,637			(925		)	24,244
Net premiums written	146,376			98,281			410,002			328,094
Change in net unearned premium reserves	17,515			18,276			(3,640		)	20,065
Net premiums earned	163,891			116,557			406,362			348,159
Net investment income	49,448			96,450			134,834			131,161
Other income (expense), net	(1		)	191			(100		)	(256		)
Total revenues	213,338			213,198			541,096			479,064
Expenses
Loss and loss adjustment expenses incurred, net	94,366			126,624			238,989			277,268
Acquisition costs, net	53,521			33,820			137,753			107,751
General and administrative expenses	7,085			4,637			16,788			13,619
Total expenses	154,972			165,081			393,530			398,638
Income before income tax expense	58,366			48,117			147,566			80,426
Income tax expense	(90		)	(645		)	(540		)	(707		)
Net income including non-controlling interest	58,276			47,472			147,026			79,719
Income attributable to non-controlling interest in joint venture	(1,740		)	(1,335		)	(5,257		)	(4,518		)
Net income	$	56,536		$	46,137		$	141,769		$	75,201
Earnings per share
Basic	$	1.53		$	1.26		$	3.85		$	2.05
Diluted	$	1.50		$	1.23		$	3.78		$	2.01
Weighted average number of ordinary shares used in the determination of earnings per share
Basic	36,875,716			36,678,653			36,820,199			36,630,136
Diluted	37,645,053			37,402,725			37,541,623			37,360,049

The following table provides the ratios for the nine months ended September 30, 2013 and 2012:



	Nine months ended September 30						Nine months ended September 30
			2013						2012
	Frequency		Severity		Total		Frequency		Severity		Total

Loss ratio	63.0	%	(61.3	)%	58.8	%	80.8	%	52.5	%	79.6	%
Acquisition cost ratio	34.5	%	17.9	%	33.9	%	31.6	%	16.4	%	30.9	%
Composite ratio	97.5	%	(43.4	)%	92.7	%	112.4	%	68.9	%	110.5	%
Internal expense ratio					3.5	%					2.8	%
Corporate expense ratio					0.6	%					1.1	%
Combined ratio					96.8	%					114.4	%