GREENLIGHT CAPITAL RE LTD
For the period ended Sep 30, 2024. Filed Nov 4, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 4, 2024
GLRE$16.08-1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0001385613-24-000089
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsBusiness OverviewOutlook and TrendsKey Financial Measures and Non-GAAP MeasuresConsolidated Results of OperationsFinancial ConditionLiquidity and Capital ResourcesLiquidityCapital ResourcesCritical Accounting EstimatesRecent Accounting PronouncementsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-04.
0001385613-24-000113
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsBusiness OverviewOutlook and TrendsKey Financial Measures and Non-GAAP MeasuresConsolidated Results of OperationsFinancial ConditionLiquidity and Capital ResourcesLiquidityCapital ResourcesCritical Accounting EstimatesRecent Accounting PronouncementsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 161 previous paragraphs and 163 current paragraphs.
88 unchanged; 55 reworded; 19 added; 18 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 29 previous and 29 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
•Gross premiums written was $168.3 million, a decrease of 8.0%;
Current report
•Net premiums earned was $151.9 million, a decrease of 6.9%;
Current report
•Net underwriting income(1) was $6.1 million, compared to $14.4 million;
Current report
•Favorable prior year loss development was $5.7 million, compared to $3.3 million;
Current report
On October 18, 2024, A.M. Best affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) for our principal operating subsidiaries and revised the outlooks to positive from stable. The positive outlook reflects A.M. Best’s view of our operating performance, which has steadily improved in recent years.
Current report
We have witnessed an active North Atlantic Hurricane season to date, with the industry’s attention now on the widely varying insured loss estimate ranges for Hurricanes Helene and Milton. It has also been an active year in many regions for secondary peril events – with the reinsurance market’s share of these events varying depending on the region and reinsurance structures in those regions. These dynamics will contribute to the restructuring and repricing of property reinsurance deals during the upcoming key renewal season. We believe that property reinsurance capacity remains well matched to meet demand in the current state of the market.
Current report
The anticipated interest rates cuts could have a meaningful favorable impact on our interest expense relating to our floating rate term loan, which would be offset by lower interest income earned on our restricted cash and cash equivalents.
Current report
•Corporate expense: Increased by $1.0 million mainly due to an increase in personnel costs, overhead costs, and technology investment to support the business growth we experienced in the last two years.
Current report
Nine months ended September 30, 2024
Current report
Current accident year loss ratio increased by 3.6 percentage points and 3.3 percentage points for Q3 2024 and YTD 2024, respectively, compared to the same periods in 2023, driven mainly by 1.2 points and 1.9 points increase in CAT losses, respectively, coupled with a change in business mix with higher attritional loss ratio.
Current report
Our combined ratio increased by 4.7 percentage points for the current quarter compared to Q3 2023 driven by higher loss ratio, acquisition cost ratio and underwriting expense ratio. The underwriting expense ratio increased primarily due to an increase in fixed underwriting expenses - see G&A Expenses below.
Current report
Our combined ratio increased by 2.4 percentage points for YTD 2024 compared to same period in 2023 for same reason as noted for Q3 2024.
Current report
•Corporate expenses: Increased by $1.0 million or 30.2%, predominantly due to an increase in personnel costs, including share-based compensation costs, coupled with an increase in professional fees and office overhead costs, including information technology systems and support.
Current report
•Underwriting expenses: Increased by $4.2 million or 29.7%, for the same reason as noted for Q3 2024. Further, YTD 2023 included a bad debt charge of $0.6 million, with no bad debt charge during YTD 2024.
Current report
The other investment holdings relate to private investments made by Innovations. The marginal increase since December 31, 2023, is due to new investments of $0.8 million, partially offset by an impairment charge for certain private debt securities during YTD 2024 (see Note 4).
Current report
Total shareholders’ equity increased by $67.3 million to $663.4 million, compared to $596.1 million at December 31, 2023. The increase was primarily due to the net income of $70.2 million reported for the period, coupled with share-based compensation adjustment to additional paid-in capital. This was partially offset by $7.5 million of share repurchases in the open market at an average price of $13.68 per share (see Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds).
Current report
The increase in cash used in our financing activities was driven mainly by $7.5 million of share repurchases and $11.9 million of debt repayments during YTD 2024, compared to the debt refinancing in YTD 2023 in which we issued $75.0 million of debt to repay $62.1 million of the outstanding convertible senior notes, coupled with $17.2 million of repurchases of these notes.
Removed paragraphs (18)
Previous report
•Gross premiums written was $169.0 million, an increase of 9.1%;
Previous report
•Net premiums earned was $158.4 million, an increase of 13.2%;
Previous report
•Net underwriting income(1) was $0.3 million, compared to $5.4 million;
Previous report
It is likely that terms and conditions in the reinsurance market will be highly dependent on the progression of the above factors throughout the remainder of 2024.
Previous report
Net Underwriting Income (Loss)
Previous report
Current accident year loss ratio increased by 1.4 percentage points for Q2 2024, compared to the same quarter in 2023 driven mainly by 1.3 points increase in CAT losses. This increase was driven predominantly by the severe U.S. tornados (including convective storms).
Previous report
Current accident year loss ratio increased by 3.2 percentage points for YTD 2024, compared to the same period in 2023, driven by 2.2 points increase in CAT loss events, mainly due to the Baltimore bridge loss and the severe U.S. tornados. While we have not renewed a U.S. homeowners’ property program in 2024, we wrote and earned premiums from the 2023 quota share treaty during 2024.
Previous report
Our combined ratio increased by 3.6 percentage points for the current quarter compared to Q2 2023 predominantly due to higher acquisition cost ratio; partially offset by a decrease in loss ratio and underwriting expense ratio. The underwriting expense ratio improved as a result of higher volume of net premium earned to cover underwriting expenses and, to a lesser extent, a net gain from deposit-accounted contracts as a result of a favorable commutation during the quarter.
Previous report
Our combined ratio increased by 0.9 percentage points for YTD 2024 compared to same period in 2023 predominantly due to higher acquisition cost ratio and underwriting expense ratio (see G&A Expenses below for further details); partially offset by a decrease in loss ratio.
Previous report
•Corporate expenses: No significant change for the quarter.
Previous report
•Underwriting expenses: Increased by $2.7 million or 29.2%, predominantly due to an increase in headcount to drive business growth, coupled with an increase in professional fees and outsourced services relating to underwriting activities. As a result, this contributed to the net increase in underwriting expense ratio in the YTD 2024 compared to the same period in 2023.
Previous report
The other investment holdings relate to private investments made by Innovations. During Q2 2024, we made two modest private equity investments. During the YTD 2024, we impaired certain debt securities (see Note 4), resulting in a decrease in the carrying value of these securities.
Previous report
Total shareholders’ equity increased by $37.9 million to $634.0 million, compared to $596.1 million at December 31, 2023. The increase was primarily due to the net income of $35.0 million reported for the period. For details of other movements in shareholders’ equity, see the condensed consolidated statements of shareholders’ equity.
Previous report
The decrease in cash used in our financing activities was driven mainly by the repurchase of a portion of the outstanding Convertible Notes in the first half of 2023. In Q2 2024, we partially repaid $11.7 million of the Term loans.
Previous report
Our shareholders’ equity increased in YTD 2024 primarily due to net income for the period.
Previous report
We did not repurchase any ordinary shares for the six months ended June 30, 2024.
Reworded paragraphs (55)
Previous wording
The following is management’s discussion and analysis (“MD&A”) of our results of operations for the three and six months ended June 30, 2024 and 2023 and the Company’s financial condition at June 30, 2024 and December 31, 2023 (herein referred as “Q2 2024 Financials”).
Current wording
The following is management’s discussion and analysis (“MD&A”) of our results of operations for the three and nine months ended September 30, 2024 and 2023 and the Company’s financial condition at September 30, 2024 and December 31, 2023 (herein referred as “Q3 2024 Financials”).
Previous wording
For the second quarter of 2024 (“Q2 2024”) we earned a net income of $8.0 million, a decrease of $41.9 million over the same period in the prior year, principally due to the lower return from our investment in Solasglas and to a lesser extent lower underwriting profits driven by higher CAT losses.
Current wording
For the third quarter of 2024 (“Q3 2024”) we earned a net income of $35.2 million, an increase of $21.8 million over the same period in the prior year, principally due to strong performance from our investment in Solasglas. Our underwriting results were lower by $8.3 million in Q3 2024 compared to the same quarter in 2023 (“Q3 2023”).
Previous wording
The following is a summary of our financial performance for Q2 2024, compared to the same quarter in 2023 (“Q2 2023”):
Current wording
The following is a summary of our financial performance for Q3 2024, compared to Q3 2023:
Previous wording
•Total CAT losses, net of reinsurance, were $17.9 million, compared to $9.3 million;
Current wording
•Current year CAT losses, net of reinsurance, were $14.1 million, including $7.5 million from Hurricane Helene, compared to $13.2 million;
Previous wording
•Total investment income was $12.6 million, a decrease of 70.2% (including 1.2% net return from our investment in Solasglas, compared to net return of 10.9%); and
Current wording
•Total investment income was $28.1 million, an increase of $23.0 million (including 5.2% net return from our investment in Solasglas), compared to net return of (0.6)%; and
Previous wording
Fully diluted book value per share(1) was $17.65 at June 30, 2024, an increase of 5.4% since December 31, 2023.
Current wording
Fully diluted book value per share(1) was $18.72 at September 30, 2024, an increase of 11.8% since December 31, 2023.
Previous wording
As we approach the peak months of North Atlantic hurricane season, the industry’s attention is drawn to the record set in early July by Hurricane Beryl for the earliest category 5 storm to form in the North Atlantic. Another key focus in the industry is the degree of additional reserve strengthening that may emerge in casualty classes throughout the remainder of the year.
Current wording
Another key focus in the industry is the degree of additional reserve strengthening that may emerge in casualty classes throughout the remainder of the year. We anticipate continued primary rate increases and tightening reinsurance terms in US Casualty.
Previous wording
The 2024 mid-year renewals have been characterized by a healthy balance of supply and demand of reinsurance capacity. Reinsurance terms and conditions are retaining discipline across a majority of classes, most notably with respect to property excess of loss attachment points. We continue to view the terms and conditions available in the property and specialty market as attractive for growth.
Current wording
We have been watching significant rising global geopolitical tensions, including in the Middle East. There is worldwide attention on the upcoming U.S. election, which could have far reaching implications from a global macroeconomic and trade perspective, while we have also begun to see rate cuts from various Central Banks including the U.S. Federal Reserve. Our cedants are attentive to these dynamics, which will be a core focus of the renewal season. The 2024 mid-year renewals have been characterized by a healthy balance of supply and demand of reinsurance capacity. Reinsurance terms and conditions are retaining discipline across a majority of classes, most notably with respect to property excess of loss attachment points. We continue to view the terms and conditions available in the property and specialty market as attractive for growth.
Previous wording
The reconciliations of net underwriting income (loss) to income (loss) before income taxes (the most directly comparable U.S. GAAP financial measure) on a consolidated basis are shown below:
Current wording
The reconciliations of net underwriting income to income before income taxes (the most directly comparable U.S. GAAP financial measure) on a consolidated basis are shown below:
Previous wording
The table below summarizes our consolidated operating results for the three and six months ended June 30, 2024 and 2023:
Current wording
The table below summarizes our consolidated operating results for the three and nine months ended September 30, 2024 and 2023:
Previous wording
1 The net financial impact associated with changes in the estimate of losses incurred in prior years, which incorporates earned reinstatement premiums assumed and ceded, adjustments to assumed and ceded acquisition costs, and deposit interest income and expense, was a loss of $0.4 million and $1.9 million for the three months ended June 30, 2024 and 2023, respectively, and a loss of $5.8 million and $13.9 million for the six months ended June 30, 2024 and 2023, respectively.
Current wording
1 The net financial impact associated with changes in the estimate of losses incurred in prior years, which incorporates earned reinstatement premiums assumed and ceded, adjustments to assumed and ceded acquisition costs, and deposit interest income and expense, was an income of $4.6 million and $1.8 million for the three months ended September 30, 2024 and 2023, respectively, and a loss of $1.1 million and $12.2 million for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
The following provides further details on the significant variances for Q2 2024 compared to same quarter in 2023 (“Q2 2023”) and for the six months ended June 30, 2024 (“YTD 2024”) compared to the same period in 2023 (“YTD 2023”).
Current wording
The following provides further details on the significant variances for Q3 2024 compared to Q3 2023 and for the nine months ended September 30, 2024 (“YTD 2024”) compared to the same period in 2023 (“YTD 2023”).
Previous wording
Fully diluted book value per share increased by $0.26 per share, or 1.5%, to $17.65 per share from $17.39 per share at March 31, 2024. Basic book value per share increased by $0.27 per share, or 1.5%, to $17.95 per share from $17.68 per share at March 31, 2024.
Current wording
Fully diluted book value per share increased by $1.07 per share, or 6.1%, to $18.72 per share from $17.65 per share at June 30, 2024. Basic book value per share increased by $1.10 per share, or 6.1%, to $19.05 per share from $17.95 per share at June 30, 2024.
Previous wording
Net income was $8.0 million for Q2 2024, compared to net income of $49.9 million reported for Q2 2023.
Current wording
Net income was $35.2 million for Q3 2024, compared to net income of $13.5 million reported for Q3 2023.
Previous wording
•Underwriting income: Decreased by $5.1 million primarily driven by 3.6 percentage points increase in our combined ratio, predominantly due to higher acquisition costs relating to our FAL business, partially offset by improved loss ratio and underwriting expense ratio. While total CAT losses were higher than in Q2 2023, this was offset by improved attritional loss ratio for our underwriting portfolio during the quarter. Current year CAT losses contributed 8.4% to our combined ratio, compared to 7.3% in Q2 2023. For further information on CAT losses and prior year loss development, refer to Note 7 -Loss and Loss Adjustment Expense Reserves of the Q2 2024 Financials.
Current wording
•Underwriting income: Decreased by $8.3 million due to an increase of 4.7 percentage points to our combined ratio on lower net premiums earned. The increase in our combined ratio was driven by the increase in loss ratio, acquisition cost ratio, and underwriting expense ratio. While the attritional loss ratio for our underwriting portfolio and current year CAT losses were higher in the current quarter than in Q3 2023, this was offset partially by improved prior year loss development. Current year CAT losses contributed 9.3% to our combined ratio, compared to 8.1% in Q3 2023. For further information on CAT losses and prior year loss development, refer to Note 7 -Loss and Loss Adjustment Expense Reserves of the Q3 2024 Financials.
Previous wording
•Investment income: Decreased by $29.6 million primarily driven by lower income from Solasglas. Our investment in Solasglas reported a gain of $4.3 million during Q2 2024, compared to a gain of $32.8 million during Q2 2023. Solasglas generated a net return of 1.2% for Q2 2024 compared to a net return of 10.9% for Q2 2023; and
Current wording
•Investment income: Increased by $23.0 million primarily driven by our investment in Solasglas, which reported a gain of $19.8 million during Q3 2024, compared to a loss of $1.9 million during Q3 2023. Solasglas generated a net return of 5.2% for Q3 2024 compared to a net return of (0.6)% for Q3 2023.
Previous wording
•Foreign exchange gains (losses): $0.9 million foreign exchange losses for Q2 2024, compared to $4.7 million foreign exchange gains in Q2 2023, driven mainly by the strengthening of the pound sterling against the U.S. dollar in Q2 2023 whereby there was no significant movement in Q2 2024.
Current wording
•Foreign exchange gains (losses): $5.8 million foreign exchange gains for Q3 2024, compared to $2.0 million foreign exchange losses in Q3 2023, driven mainly by the strengthening of the pound sterling against the U.S. dollar in Q3 2024.
Previous wording
Fully diluted book value per share increased by $0.91 per share, or 5.4%, to $17.65 per share from $16.74 per share at December 31, 2023. Basic book value per share increased by $1.08 per share, or 6.4%, to $17.95 per share from 16.87 per share at December 31, 2023.
Current wording
Fully diluted book value per share increased by $1.98 per share, or 11.8%, to $18.72 per share from 16.74 per share at December 31, 2023. Basic book value per share increased by $2.18 per share, or 12.9%, to $19.05 per share from 16.87 per share at December 31, 2023.
Previous wording
Net income was $35.0 million for YTD 2024, compared to net income of $55.7 million reported for YTD 2023.
Current wording
Net income was $70.2 million for YTD 2024, compared to net income of $69.2 million reported for YTD 2023.
Previous wording
•Underwriting income: Decreased by $2.1 million primarily driven by 0.9 percentage points increase in our combined ratio mainly due to an increase in acquisition costs (same reason as Q2 2024) and an increase in underwriting expenses. While current year CAT losses contributed 8.0 percentage points to our combined ratio, compared to 5.8 percentage points for YTD 2023, the increase was offset by an improved attritional loss ratio for our underwriting portfolio. For further information on CAT losses and prior year loss development, refer to Note 7 -Loss and Loss Adjustment Expense Reserves of the Q2 2024 Financials.
Current wording
•Underwriting income: Decreased by $10.4 million due to 2.4 percentage points increase in our combined ratio, offset partially by an increase in net premiums earned. The increase in our combined ratio was driven by the increase in loss ratio, acquisition cost ratio, and underwriting expense ratio. While the current year CAT losses contributed 8.5 percentage points to our combined ratio, compared to 5.1 percentage points for YTD 2023, this was offset partially by improved prior year loss development. For further information on CAT losses and prior year loss development, refer to Note 7 -Loss and Loss Adjustment Expense Reserves of the Q3 2024 Financials.
Previous wording
•Investment income: Decreased by $8.4 million primarily driven by lower income from Solasglas. Our investment in Solasglas reported a gain of $22.6 million during YTD 2024, compared to a gain of $29.6 million during the equivalent period in 2023. Solasglas generated a net return of 6.4% for YTD 2024 compared to a net return of 9.7% for YTD 2023 .
Current wording
•Investment income: Increased by $14.5 million primarily driven by our investment in Solasglas, which reported a gain of $42.4 million during YTD 2024, compared to a gain of $27.8 million during the equivalent period in 2023. Solasglas generated a net return of 11.9% for YTD 2024, compared to a net return of 9.1% for YTD 2023.
Previous wording
•Corporate expense: Decreased by $1.5 million mainly due to non-recurring severance costs included in YTD 2023 and lower outside legal costs following the hiring of our new General Counsel in April 2023.
Current wording
•Corporate expense: Decreased by $0.5 million mainly due to non-recurring severance costs included in YTD 2023 and lower outside legal costs following the hiring of our new General Counsel in April 2023. This was partially offset by the increase in other personnel and overhead costs as noted for Q3 2024.
Previous wording
•Foreign exchange gains (losses): $2.6 million foreign exchange losses for YTD 2024, compared to $9.7 million foreign exchange gains for YTD 2023, driven mainly by the reversal of the pound sterling movement against the U.S. dollar; and
Current wording
•Foreign exchange gains (losses): $3.2 million foreign exchange gains for YTD 2024, compared to $7.7 million foreign exchange gains for YTD 2023, driven mainly by a stronger pound sterling movement against the U.S. dollar in YTD 2023.
Previous wording
•Other income, net: Increased by $2.7 million due to stronger investment income generated on funds withheld by third party Lloyd’s syndicates, reported on a quarterly lag basis.
Current wording
•Other income, net: Increased by $4.2 million due to stronger investment income generated on funds withheld by third party Lloyd’s syndicates, reported on a quarterly lag basis.
Previous wording
The following provides a further discussion of our underwriting results for our Property & Casualty (Re)insurance operating segment for the three and six months ended June 30, 2024 and 2023.
Current wording
The following provides a further discussion of our underwriting results for our Property & Casualty (Re)insurance operating segment for the three and nine months ended September 30, 2024 and 2023.
Previous wording
Our Q2 2024 gross premiums written increased by $14.0 million, or 9.1%, compared to the equivalent 2023 period.
Current wording
Our Q3 2024 gross premiums written decreased by $14.7 million, or 8.0%, compared to the equivalent 2023 period.
Previous wording
The following table provides a further analysis of this overall increase:
Current wording
The following table provides a further analysis of this overall decrease:
Previous wording
Our YTD 2024 gross premiums written increased by $44.8 million, or 13.1%, compared to the equivalent 2023 period.
Current wording
Our YTD 2024 gross premiums written increased by $30.1 million, or 5.7%, compared to the equivalent 2023 period.
Previous wording
For Q2 2024, premiums ceded were $14.8 million, or 8.8% of gross premiums written, compared to $9.7 million, or 6.3% of gross premiums written, for the same quarter in 2023. For YTD 2024, premiums ceded were $38.0 million, or 9.8% of gross premiums written, compared to $21.0 million, or 6.1% of gross premiums written, for YTD 2023.
Current wording
For Q3 2024, premiums ceded were $26.6 million, or 15.8% of gross premiums written, compared to $14.8 million, or 8.1% of gross premiums written, for the same quarter in 2023. For YTD 2024, premiums ceded were $64.6 million, or 11.7% of gross premiums written, compared to $35.7 million, or 6.8% of gross premiums written, for YTD 2023.
Previous wording
The increase in both periods was primarily due to the purchase of an additional retrocessional coverage to manage our overall exposure to Marine and Energy class in light of recent growth in this class of business and to reinstate certain retro excess of loss treaties in which the full coverage was presumed exhausted primarily from the Baltimore bridge loss event. Additionally, we had an increase in quota share retrocessions for Other Specialty business due to growth from inward premiums.
Current wording
The increase in both periods was primarily due to the purchase of additional retrocessional coverage to manage our overall exposure to Aviation and Marine and Energy in light of growth in these classes of business during 2024 and to reinstate certain retro excess-of-loss treaties in which the full coverage was presumed exhausted primarily from the Baltimore Bridge loss event in Q1 2024. Additionally, we had an increase in quota share retrocessions for Other Specialty business due to growth from inward premiums.
Previous wording
For Q2 2024 and YTD 2024, net premiums written increased by $8.9 million, or 6.2%, and $27.8 million or 8.7%, respectively, compared to the same periods in 2023. The movement in net premiums written resulted from the changes in gross premiums written and ceded during the periods as previously noted.
Current wording
For Q3 2024 and YTD 2024, net premiums written decreased by $26.5 million, or 15.8%, and increased by $1.2 million or 0.3%, respectively, compared to the same periods in 2023. The movement in net premiums written resulted from the changes in gross premiums written and ceded during the periods as previously noted.
Previous wording
Net premiums earned for Q2 2024 and YTD 2024, increased by $18.5 million or 13.2%, and by $37.3 million or 13.2%, respectively, compared to the same periods in 2023. The change in net premiums earned is primarily a function of the amount and timing of net premiums written during the current and prior periods, coupled with the mix of business written in the form of excess of loss versus proportional contracts. For Q2 2024 and YTD 2024, excess of loss treaties accounted for 16% and 15% of the total net premiums earned, respectively, compared to 14% and 13% for Q2 2023 and YTD 2023, respectively.
Current wording
Net premiums earned for Q3 2024 and YTD 2024, decreased by $11.2 million or 6.9%, and increased by $26.1 million or 5.9%, respectively, compared to the same periods in 2023. The change in net premiums earned is primarily a function of the amount and timing of net premiums written during the current and prior periods.
Previous wording
For Q2 2024 and YTD 2024, our total loss ratio improved by 0.3 and 0.2 percentage points, respectively, compared to the same periods in 2023.
Current wording
For Q3 2024 and YTD 2024, our total loss ratio increased by 1.9 and 0.7 percentage points, respectively, compared to the same periods in 2023.
Previous wording
For the current quarter, we had prior year favorable loss development of 0.4%, compared to adverse loss development of 1.3% for the same quarter in 2023. For YTD 2024, our prior year adverse loss development improved by 3.4 percentage points compared to the same period in 2023. Refer to Note 7 for further details on prior year loss development.
Current wording
For Q3 2024 and YTD 2024, prior year favorable loss development improved by 1.7 percentage points and 2.6 percentage points, respectively, compared to the same periods in 2023. Refer to Note 7 for further details on prior year loss development.
Previous wording
For Q2 2024 and YTD 2024, our total acquisition costs increased by 31.8% to $50.5 million, and by 15.4% to $92.1 million, respectively, compared to the same periods in 2023, mainly due to growth in net premiums earned and higher commissions, predominantly in our Casualty and Other lines of business. The acquisition cost ratios by line of business were as follows:
Current wording
For Q3 2024 and YTD 2024, our total acquisition costs decreased by 1.6% to $46.2 million, and increased by 9.1% to $138.2 million, respectively, compared to the same periods in 2023. The YTD 2024 increase was mainly due to growth in net premiums earned. The acquisition cost ratios by line of business were as follows:
Previous wording
G&A increased by 4.9% for Q2 2024, compared to Q2 2023. The increase was driven by:
Current wording
G&A increased by 30.6% for Q3 2024, compared to Q3 2023. The increase was driven by:
Previous wording
•Underwriting expenses: Increased by $0.3 million or 6.3%, predominantly due to an increase in headcount to drive business growth, coupled with an increase in professional fees and outsourced services relating to underwriting activities. Further, Q2 2023 included a bad debt charge of $0.6 million, with no similar charge during Q2 2024.
Current wording
•Underwriting expenses: Increased by $1.4 million or 30.9%, predominantly due to an increase in headcount to drive business growth, coupled with an increase in professional fees, office expenses, and outsourced services relating to underwriting activities.
Previous wording
G&A increased by 6.4% for YTD 2024, compared to same period in 2023. The increase was driven by:
Current wording
G&A increased by 13.2% for YTD 2024, compared to same period in 2023. The increase was driven by:
Previous wording
•Corporate expenses: Decreased by $1.5 million or 14.0%, driven mainly by non-recurring severance costs included in YTD 2023 and lower outside legal costs following the hiring of our new General Counsel in April 2023.
Current wording
•Corporate expenses: Decreased by $0.5 million or 3.5%, driven mainly by non-recurring severance costs included in YTD 2023 and lower outside legal costs following the hiring of our new General Counsel in April 2023. This was partially offset by an increase in personnel costs, including share-based compensation costs, and office overhead costs.
Previous wording
Our net investment-related income decreased by 8.2% compared to Q2 2023, and by 4.6% compared to YTD 2023, mainly driven by the decrease in interest income earned from restricted cash and cash equivalents as a result of decreases in the outstanding collateral balance during both periods.
Current wording
Our net investment-related income increased by 18.5% compared to Q3 2023, and by a nominal change compared to YTD 2023, mainly driven by lower net realized and unrealized gains (losses) from our Innovation portfolio. This was partially offset by the decrease in interest income earned from restricted cash and cash equivalents mainly due to the decrease in the outstanding collateral balance during both periods.
Showing the first 40 of 55 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•Other income, net: Increased by $1.5 million due to higher investment income generated on funds withheld by third party Lloyd’s syndicates, reported on a quarterly lag basis.