Global ratings agency AM Best has revised the outlooks for Greenlight Capital Re (GLRE), Ltd. and its subsidiaries from stable to positive, while affirming GLRE’s Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-.”
The outlooks for both Greenlight Reinsurance, Ltd. and Greenlight Reinsurance Ireland, Designated Activity Company, were revised from stable to positive. Additionally, AM Best affirmed their Financial Strength Rating of A- and Long-Term ICR of “a-.”
These ratings reflect GLRE’s balance sheet strength, which AM Best assesses as very strong, alongside its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The positive outlook reflects AM Best’s recognition of GLRE’s improved operating performance in recent years. Despite earlier challenges with volatile investment returns and underwriting losses, recent results show steady improvement in both underwriting and investment stability. Notably, the group achieved its first full year of underwriting profitability in 2023.
The group’s return metrics have also improved, with five consecutive years of stronger returns on equity and revenue. Since 2019, investment returns have contributed positively to overall results.
AM Best considers GLRE’s business profile to be neutral. Incorporated in the Cayman Islands in 2004, the company is one of the longest-tenured total return reinsurers.
Through its subsidiaries, GLRE provides property and casualty reinsurance worldwide. The company has also diversified its business with significant investments in innovation, such as launching the Greenlight Re Innovations Syndicate 3456 at Lloyd’s in 2022.
AM Best also considers GLRE’s ERM to be well-suited to its business complexity and overall risk profile.
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