Greenlight Capital Re, Ltd.

Greenlight Re reported Q2 2026 net loss of $29.6 million, or $0.89 per diluted share. The underwriting loss was $0.2 million and the combined ratio was 100.1%, including 17.1 points of cat and large losses; that compares with a 4% cat and large loss ratio in Q2 last year. Net investment loss was $23.8 million versus $7.8 million a year ago, driven mainly by Solasglas, which returned negative 5.4% in the quarter. Open Market pretax income was $3.4 million; Innovations pretax income was $1.5 million. Gross written premiums increased 2% overall, while net written premiums decreased 11%; Innovations GWP rose 12% to $30.9 million and net earned premiums rose 16% to $24.9 million. Management did not provide explicit next-quarter or full-year financial guidance, but said the second-quarter investment loss has “essentially reversed in July,” July Solasglas returned 4.9%, and exposure to Middle East war losses is decreasing as accounts are nonrenewed and cedents reduce exposure.

Greg Richardson called Q2 “challenging” and emphasized that the loss was driven by investment losses and a modest underwriting loss tied to Middle East conflict reserves and the Qatar refinery fire. He said the specialty book remains a core strength historically, but severity events can create volatility and the current reserve remains prudent given limited information. His tone was cautious but constructive: he highlighted that war-related exposure is declining, soft market conditions are leading to lower net exposure, and the Lloyd’s Syndicate 3456 transition to a full syndicate in 2027 should support further growth and diversification in Innovations.

Faramarz Romer said the quarter’s $29.6 million net loss and $0.2 million underwriting loss were driven by $25 million of total Middle East-related reserves, including one known full-limit loss of $7.6 million, $9.9 million of other specific event losses, and $7.5 million for incurred but not reported losses. He also cited a $6.5 million QatarEnergy gas facility fire loss and said attritional loss ratio improved 4.3 points to 51.7%, while prior-year reserve development and lower acquisition and expense ratios helped offset cat losses. On capital, he said the company repurchased $14.2 million of shares in the quarter plus another $3.9 million afterward, totaling $23.1 million year to date and 4% of outstanding shares, with $36 million remaining under the authorization; fully diluted book value per share was $20.61, up 0.9% in the first six months of the year.

Analysts asked for more detail on Middle East exposure and management explained that the company’s specialty focus in marine and aviation can produce meaningful losses from regional conflicts, though Greg said losses were within risk management expectations. A separate question focused on liquidity funds and Faramarz explained that balances at Funds at Lloyd’s were moved from cash into a Lloyd’s-approved liquidity fund during the first half, which is why the reported balance increased. The most notable discussion was about the Solasglas allocation ceiling: Greg said the team agrees the fund has been a high-performing use of capital, that increasing the allocation is one option, and that buybacks remain another, while Faramarz said they are balancing excess capital, ratings needs, growth, and the accretive effect of repurchases at a discount to book value.