Company: GLRE
Filing Date: 2025-04-17
Form Type: DEF 14A
Source: 0001385613-25-000055
Chunk: 88

Company: GREENLIGHT CAPITAL RE, LTD.
Filing Date: 2025-04-17
Form: DEF 14A
Chunk 88
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 measures should not be viewed as substitutes for those determined under U.S. GAAP.

The key non-GAAP financial measures used in this report are:

• Fully diluted book value per share

• Adjusted Operating Profit (AOP)

Fully Diluted Book Value Per Share

We believe that long-term growth in fully diluted book value per share is the most relevant measure of our financial performance because it provides management and investors a yardstick to monitor the shareholder value generated. Fully diluted book value per share may also help our investors, shareholders, and other interested parties form a basis of comparison with other companies within the property and casualty reinsurance industry. Fully diluted book value per share should not be viewed as substitutes for the comparable U.S. GAAP measures.

Fully diluted book value per share represents basic book value per share combined with any dilutive impact of in-the-money stock options and all outstanding RSUs. Basic book value per share is calculated as follows: (a) ending shareholders' equity, divided by (b) the Ordinary shares issued and outstanding, as reported in the consolidated financial statements.

Our primary financial goal is to increase fully diluted book value per share over the long term. We use fully diluted book value per share as a financial measure in our annual incentive compensation.

For a reconciliation of diluted book value per share, for the fiscal years ended December 31, 2024, and 2023, please see our Annual Report on Form 10-K for the year ended December 31, 2024.

Adjusted Operating Profit

Effective January 1, 2024, one of the ways that we measure our performance is based on adjusted operating profit, or AOP, as this measure reflects management’s contribution to long term profitability and operational efficiency. We use AOP as a performance measure in our short-term incentive compensation.

AOP is a non-GAAP financial measure and should not be viewed as a substitute for the comparable U.S. GAAP measure— net income before taxes. AOP is considered a non-GAAP financial measure because it excludes items used to calculate net income before taxes under U.S. GAAP.

The following table presents a reconciliation of net income before taxes (GAAP) to the AOP for the year ended December 31, 2024.

|                                                                        |     | Year ended December 31, 2024 |         |   |
|:-----------------------------------------------------------------------|:----|:-----------------------------|--------:|:--|
|                                                                        |     | -$ in thousands              |         |   |
| Income before