GRAND CAYMAN, Cayman Islands, Nov. 4, 2008 (GLOBE NEWSWIRE) -- Greenlight Capital Re, Ltd. (Nasdaq:GLRE) today announced financial results for the third quarter of 2008. Greenlight Re reported a net loss of $118.4 million for the third quarter of 2008 compared to a net loss of $2.1 million for the same period in 2007. The net loss per share was $3.29 for the third quarter of 2008, compared to a net loss per share of $0.06 for the same period in 2007.

Fully diluted book value per share was $14.22 as of September 30, 2008, a 9.9% decrease from $15.78 per share as of September 30, 2007.

For the nine months ended September 30, 2008, the net loss was $89.6 million compared to net income of $6.1 million for the same period in 2007. The net loss per share was $2.49 for the nine months ended September 30, 2008, compared to net earnings per share of $0.21, on a fully diluted basis, for the same period in 2007.

"In a difficult operating environment, our underwriting portfolio performed well while our investment results were disappointing," said David Einhorn, Chairman of the Board of Directors of Greenlight Re. "Despite our recent performance, our business model positions us well to take advantage of the dislocations arising in the reinsurance markets."

Greenlight Re's financial and operating highlights for the first nine months of 2008 include the following:

    * Gross written premiums in the third quarter were $37.7 million
      compared to $19.8 million in the third quarter of 2007, while
      net earned premiums were $28.6 million compared to $30.7
      million.  For the first nine months, gross premiums written were
      $133.8 million compared to $123.3 million for the first nine
      months of 2007, while net earned premiums were $80.8 million
      compared to $76.6 million.

    * The combined ratio for the nine months ended September 30, 2008
      was 97.5% compared to 93.1% for the nine months ended September
      30, 2007.

    * Net investment loss reported in the third quarter was $117.8
      million, a loss of 15.9% on our investment portfolio, compared
      to a net investment loss of $4.8 million in the third quarter of
      2007, a 0.8% loss on our investment portfolio.  For the first
      nine months of 2008, the net investment loss was $92.5 million
      compared to net investment income of $0.7 million in the nine
      months ended September 30, 2007.

"With no losses from Hurricanes Gustav or Ike, our frequency oriented underwriting portfolio continues to perform well," said Len Goldberg, Chief Executive Officer of Greenlight Re. "Our strategy to manage our underwriting exposure in soft markets has resulted in a conservative premium to capital ratio. We believe recent industry events will trigger capacity shortfalls that will result in higher prices. Greenlight Re is uniquely positioned to take advantage of these events."

Conference Call Details

Greenlight Re will hold a live conference call to discuss its financial results for the third quarter of 2008 on Wednesday, November 5, 2008 at 9:00 a.m. Eastern time. To participate, please dial in to the conference call at (877) 362-3812 (domestic) or (706) 634-9925 (international), access code 69926046. The conference call topic is Greenlight Re Earnings Conference Call.

A telephone replay of the call will be available from 11:00 a.m. Eastern time on November 5, 2008 until 11:59 p.m. Eastern time on November 12, 2008. The replay of the call may be accessed by dialing (800) 642-1687 (domestic) or (706) 645-9291 (international), access code 69926046. An audio file of the call will also be available on the Company's website.

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 specialty property and casualty reinsurance company based in the Cayman Islands. The Company 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.

The Greenlight Capital Re logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5571

                         GREENLIGHT CAPITAL RE, LTD.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                  September 30, 2008 and December 31, 2007
          (Expressed in thousands of U.S. dollars, except per share 
                             and share amounts)
          ---------------------------------------------------------
                                              Sept. 30, 
                                                 2008       Dec. 31,
                                              (Unaudited)     2007
                                              ----------   ----------
 Assets
 Investments in securities
  Debt securities, trading, at fair value     $    8,458   $    1,520
  Equity investments, trading, at fair value     368,864      570,440
  Other investments, at fair value                12,165       18,576
                                              ----------   ----------
 Total investments in securities                 389,487      590,536
 Cash and cash equivalents                       216,137       64,192
 Restricted cash and cash equivalents            400,360      371,607
 Financial contracts receivable, at fair
  value                                            6,323          222
 Reinsurance balances receivable                  66,006       43,856
 Loss and loss adjustment expense
  recoverables                                     9,480        6,721
 Deferred acquisition costs                       17,804        7,302
 Unearned premiums ceded                          10,147        8,744
 Other assets                                        956          965
                                              ----------   ----------
 Total assets                                 $1,116,700   $1,094,145
                                              ==========   ==========
 Liabilities and Shareholders' Equity
 Liabilities
 Securities sold, not yet purchased, at fair
  value                                       $  369,504   $  332,706
 Financial contracts payable, at fair value       10,272       17,746
 Loss and loss adjustment expense reserves        68,504       42,377
 Unearned premium reserves                        99,988       59,298
 Reinsurance balances payable                     34,035       19,140
 Funds withheld                                    4,720        7,542
 Other liabilities                                 5,099        2,869
 Minority interest in joint venture                6,319           --
 Performance compensation payable to related
  party                                               --        6,885
                                              ----------   ----------
 Total liabilities                               598,441      488,563
                                              ----------   ----------
 Shareholders' 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 30,010,636, (2007:
  29,847,787); Class B: par value $0.10;
  authorized, 25,000,000; issued and
  outstanding, 6,254,949 (2007: 6,254,949))        3,627        3,610
 Additional paid-in capital                      479,166      476,861
 Retained earnings                                35,466      125,111
                                              ----------   ----------
 Total shareholders' equity                      518,259      605,582
                                              ----------   ----------
 Total liabilities and shareholders' equity   $1,116,700   $1,094,145
                                              ==========   ==========

                     GREENLIGHT CAPITAL RE, LTD.
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                             (UNAUDITED)
     For the three and nine months ended September 30, 2008 and 2007
    (Expressed in thousands of U.S. dollars, except per share and 
                              share amounts)
    ----------------------------------------------------------------

                      Three Months Ended         Nine Months Ended
                         September 30,             September 30,
                   ------------------------  ------------------------
                       2008         2007         2008         2007
                   -----------  -----------  -----------  -----------
 Revenues
 Gross premiums
  written          $    37,683  $    19,766  $   133,810  $   123,275
 Gross premiums 
   ceded                 1,170         (209)     (13,718)     (28,486)
                   -----------  -----------  -----------  -----------
 Net premiums 
  written               38,853       19,557      120,092       94,789
 Change in net
  unearned premium
  reserves             (10,256)      11,155      (39,321)     (18,184)
                   -----------  -----------  -----------  -----------
 Net premiums 
  earned                28,597       30,712       80,771       76,605
 Net investment 
  (loss) income       (117,809)      (4,776)     (92,546)         707
                   -----------  -----------  -----------  -----------
 Total revenues        (89,212)      25,936      (11,775)      77,312
                   -----------  -----------  -----------  -----------
 Expenses
 Loss and loss
  adjustment 
  expenses
  incurred, net         14,777       11,339       36,238       31,465
 Acquisition 
  costs, net            12,204       13,458       31,361       30,685
 General and
  administrative
  expenses               3,452        3,232       11,122        9,078
                   -----------  -----------  -----------  -----------
 Total expenses         30,433       28,029       78,721       71,228
                   -----------  -----------  -----------  -----------
 Net (loss) income
  before minority
  interest            (119,645)      (2,093)     (90,496)       6,084
 Minority interest 
  in loss of joint
  venture                1,212           --          851           --
                   -----------  -----------  -----------  -----------
 Net (loss) income $  (118,433) $    (2,093) $   (89,645) $     6,084
                   ===========  ===========  ===========  ===========
 (Loss) earnings 
  per share
 Basic             $     (3.29) $     (0.06) $     (2.49) $      0.21
 Diluted                 (3.29)       (0.06)       (2.49)        0.21
 Weighted average
  number of 
  ordinary shares 
  used in the
  determination of

  Basic             35,995,236   35,981,312   35,987,778   28,393,955
  Diluted           35,995,236   35,981,312   35,987,778   28,855,816

Due to the opportunistic and customized nature of our underwriting operations, we expect to report different loss and expense ratios in both our frequency and severity businesses from period to period. The following table provides the ratios for the nine month periods ended September 30, 2008 and 2007:

                Nine Months Ended            Nine Months Ended
               September 30, 2008           September 30, 2007
          ----------------------------- -----------------------------
          Frequency Severity    Total   Frequency Severity    Total
          --------- --------- --------- --------- --------- ---------
 Loss 
  ratio     35.4%     64.3%     44.9%     49.1%     14.7%     41.1%
 Acquisi-
  tion 
  cost 
  ratio     53.5%      8.8%     38.8%     44.6%     25.2%     40.1%
            -----     -----     -----     -----     -----     -----
 Composite 
  ratio     88.9%     73.1%     83.7%     93.7%     39.9%     81.2%
 Internal 
  expense 
  ratio                         13.8%                         11.9%
                                -----                         -----
 Combined 
  ratio                         97.5%                         93.1%
                                =====                         =====

CONTACT:  Stanton Crenshaw Communications
          Alex Stanton
          (212) 780-1900
          alex@stantoncrenshaw.com