Greenlight Capital Re, Ltd. (Nasdaq:GLRE) today announced financial results for the fourth quarter and year ended December 31, 2008. Greenlight Re reported a net loss of $31.3 million for the fourth quarter of 2008 compared to net income of $29.2 million for the same period in 2007. The net loss per share was $0.87 for the fourth quarter of 2008, compared to net income per share of $0.80, on a fully diluted basis, for the same period in 2007.

Fully diluted book value per share was $13.39 as of December 31, 2008, a 19.2% decrease from $16.57 per share as of December 31, 2007.

For the year ended December 31, 2008, the net loss was $120.9 million compared to net income of $35.3 million for the full year in 2007. The net loss per share for the year was $3.36, compared to net earnings per share of $1.15, on a fully diluted basis, for the same period in 2007.

"2008 presented a soft reinsurance market and a challenging investment environment. While we were disappointed with the investment result, our underwriting portfolio performed well," said David Einhorn, Chairman of the Board of Directors of Greenlight Re. "Our conservative balance sheet affords us a good opportunity to take advantage of the dislocations that are now occurring in a hardening reinsurance market and in the capital markets."

Greenlight Re's financial and operating highlights for the fourth quarter and year ended December 31, 2008 include the following:

• Gross written premiums in the fourth quarter were $28.6 million compared to $3.9 million in the fourth quarter of 2007, while net earned premiums were $34.2 million compared to $21.4 million. For the full year 2008, gross premiums written were $162.4 million compared to $127.1 million in 2007, while net earned premiums were $114.9 million compared to $98.0 in 2007.
• The combined ratio for 2008 was 96.5% compared to 92.2% for 2007.
• Net investment loss reported in the fourth quarter was $33.3 million, a loss of 5.3% on the investment portfolio, compared to net investment income of $26.9 million in the fourth quarter of 2007, a 4.2% gain. For the full year 2008, the net investment loss was $126.1 million, a 17.6% loss for the year, compared to net investment income of $27.6 million, a 5.9% gain in 2007.

"In 2008, we further established and diversified our frequency-oriented underwriting portfolio by strengthening the partnerships with our clients," said Len Goldberg, Chief Executive Officer of Greenlight Re. "In addition, we are already seeing a significant increase in frequency business opportunities that could fit well into our portfolio. With the industry attracting very little fresh capital to replace losses, clients and prospective clients are turning to Greenlight Re, with our unlevered balance sheet and innovative approach to reinsurance, as a solution to help reduce strain caused by the events of 2008."

Conference Call Details

Greenlight Re will hold a live conference call to discuss its financial results for the fourth quarter and year ended December 31, 2008 on Tuesday, February 24, 2009 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 85444469. 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 February 24, 2009 until 11:59 p.m. Eastern time on March 10, 2009. The replay of the call may be accessed by dialing (800) 642-1687 (domestic) or (706) 645-9291 (international), access code 85444469. 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

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. For the years ended December 31, 2008, 2007 and 2006, the following ratios are reported:

CONTACT:  Stanton Crenshaw Communications
          Alex Stanton
          (212) 780-0701
          alex@stantoncrenshaw.com