Greenlight Capital Re (GLRE) has wrapped up FY 2025 with fourth quarter revenue of US$210.5 million and basic EPS of US$1.47, capping a trailing 12 month period that delivered EPS of US$2.21 on revenue of US$721.3 million. Over the last few quarters, revenue has ranged from US$148.1 million to US$210.5 million, while quarterly EPS has swung between a loss of US$0.13 and a profit of US$1.47. This gives investors a fuller picture of how the year built to the latest result. With a trailing net margin of 10.4% and a combined ratio of 92.1% in Q4, the update highlights a business where profitability metrics are now front and center for anyone tracking the story.
See our full analysis for Greenlight Capital Re.With the headline numbers on the table, the next step is to see how these results line up with the most widely held narratives around GLRE, and where the fresh data may start to challenge the existing story.
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74.8% earnings growth reshapes the story
- Over the last 12 months, GLRE earned US$74.8 million of net income and US$2.21 of EPS, which lines up with the 74.8% earnings growth figure and a trailing net margin of 10.4% versus 6.1% a year earlier.
- What stands out for the bullish camp is that this jump in trailing earnings comes alongside a 94.6% combined ratio, which keeps underwriting in the profitable zone, even though earlier in FY 2025 the quarterly combined ratio moved between 86.6% and 104.6% and quarterly net income ranged from a loss of US$4.4 million in Q3 to a profit of US$49.3 million in Q4.
- Supporters who focus on long term compounding point to the 15.7% five year annual earnings growth rate as a backdrop, and then highlight the much stronger 74.8% trailing growth as a sign that the business is currently running ahead of that multi year pace.
- At the same time, the swings in quarterly EPS, from a loss of US$0.13 in Q3 to a profit of US$1.47 in Q4, show that this stronger trailing year still comes with meaningful volatility that bullish investors need to be comfortable with.
Combined ratio trends frame underwriting quality
- Across FY 2025, GLRE reported combined ratios of 104.6% in Q1, 95% in Q2, 86.6% in Q3 and 92.1% in Q4, feeding into a trailing 12 month combined ratio of 94.6%, which sits below the 101.4% combined ratio reported in the prior year trailing period.
- Bulls often argue that a combined ratio under 100% gives the company room to earn on both underwriting and investments, and the current 94.6% trailing figure alongside US$721.3 million of trailing revenue and a 10.4% net margin supports that view, even though individual quarters like Q1 at 104.6% show that not every period lands inside that comfort zone.
- Supporters who focus on underwriting quality point out that Q4’s 92.1% combined ratio sits close to the trailing figure and coincides with US$49.3 million of net income in that quarter, which is a higher profit level than any of the other FY 2025 quarters.
- On the other hand, critics within the bullish debate can point to Q3, where the lowest combined ratio of 86.6% still paired with a net loss of US$4.4 million, as a reminder that combined ratio alone does not explain every move in the bottom line.
P/E of 6.8x and DCF gap draw attention
- GLRE shares trade at US$14.96, which works out to a trailing P/E of 6.8x that is higher than the 5.9x peer average but lower than the 11.6x US insurance industry average, and the price also sits well below a DCF fair value estimate of US$35.28.
- Value focused bulls highlight that the stock price is about 57.6% below the DCF fair value and that the 10.4% trailing net margin and 74.8% earnings growth over the last year help explain why they see this valuation as appealing, even though the slightly higher P/E versus peers means the shares are not the lowest priced name in their group.
- For those investors, the combination of US$74.8 million of trailing net income and a 6.8x P/E at US$14.96 per share is what keeps the thesis grounded in hard numbers rather than just a model output.
- Others who are more cautious within that bullish discussion point out that, without forward earnings or revenue projections in the data, the comparison to the DCF fair value rests mainly on the recent trailing period, so they watch how future updates track against this current baseline
Next Steps
Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Greenlight Capital Re's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.
If this mix of strong metrics and sharp swings leaves you with questions, it is a good time to check the data directly and form your own view. To see what optimistic investors are focusing on, take a close look at 2 key rewards.
See What Else Is Out There
GLRE’s story mixes a 94.6% trailing combined ratio and 74.8% earnings growth with swings between quarterly profits and losses that some investors may find uncomfortable.
If those earnings and underwriting swings feel a bit too bumpy, it is worth checking out 68 resilient stocks with low risk scores as a way to focus on companies with steadier profiles and potentially fewer surprises from quarter to quarter.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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