GREENLIGHT CAPITAL RE LTD

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.

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.

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.

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.