GREENLIGHT CAPITAL RE LTD
For the period ended Dec 31, 2024. Filed Mar 10, 2025.
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FY2024 · Filed Mar 10, 2025
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Open Market Segment
Results for the Open Market segment were as follows:
| Year ended December 31, · 2024 · % Change · 2023 · % Change · 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Gross premiums written | $603,798 | 19.7% | $504,435 | 11.5% | $452,541 | |||
| Net premiums written | $541,446 | 16.1% | $466,544 | 6.6% | $437,799 | |||
| Net premiums earned | $511,922 | 9.7% | $466,751 | 13.6% | $410,877 | |||
| Net loss and LAE incurred | (341,586) | (262,290) | (268,659) | |||||
| Acquisition costs | (144,852) | (136,356) | (125,296) | |||||
| Other underwriting expenses | (19,175) | (16,827) | (11,867) | |||||
| Deposit interest expense, net | (1,228) | (2,687) | (6,717) | |||||
| Underwriting income (loss) | 5,081 | 48,591 | (1,662) | |||||
| Net investment income | 42,629 | 14.1% | 37,351 | 662.6% | 4,898 | |||
| Income before income taxes | $47,710 | $85,942 | $3,236 | |||||
| Underwriting ratios: | 2024 | % Point Change | 2023 | % Point Change | 2022 | |||
| Loss ratio | 66.7% | 10.5% | 56.2% | (9.2)% | 65.4% | |||
| Acquisition cost ratio | 28.3% | (0.9)% | 29.2% | (1.3)% | 30.5% | |||
| Composite ratio | 95.0% | 9.6% | 85.4% | (10.5)% | 95.9% | |||
| Underwriting expenses ratio | 4.0% | (0.2)% | 4.2% | (0.3)% | 4.5% | |||
| Combined ratio | 99.0% | 9.4% | 89.6% | (10.8)% | 100.4% | |||
Gross premiums written by line of business were as follows:
| % Change | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2024 · 2023 · 2022 · 2024 to 2023 · 2023 to 2022 | ||||||||
| Casualty | $92,471 | 15.3% | $86,081 | 17.1% | $82,524 | 18.2% | 7.4% | 4.3% |
| Financial | 63,679 | 10.5% | 46,296 | 9.2% | 63,452 | 14.0% | 37.5% | (27.0)% |
| Health | 217 | —% | 224 | —% | 227 | 0.1% | (3.1)% | (1.3)% |
| Multiline | 181,140 | 30.0% | 198,037 | 39.3% | 205,743 | 45.5% | (8.5)% | (3.7)% |
| Property | 87,922 | 14.6% | 75,820 | 15.0% | 31,347 | 6.9% | 16.0% | 141.9% |
| Specialty | 178,369 | 29.6% | 97,977 | 19.4% | 69,248 | 15.3% | 82.1% | 41.5% |
| Total | $603,798 | 100.0% | $504,435 | 100.0% | $452,541 | 100.0% | 19.7% | 11.5% |
Gross premiums written in 2024 increased by $99.4 million or 19.7%, compared to 2023. The increase was predominantly attributable to the following lines of business:
Financial: new excess of loss treaties in our financial multiline business and an increase in premium volume for our transactional liability business.
Property: improved pricing in our commercial and property catastrophe business.
Specialty: improved pricing and new customers in our marine and energy (M&E) business, including Lloyd’s whole account excess of loss treaties. Additionally, there was an increase of $9.0 million in reinstatement premiums attributable to the 2024 CAT events, in particular for the Baltimore Bridge collapse.
The above was partially offset by the decrease in our multiline business, driven by two non-renewed FAL accounts on January 1, 2024; offset by premium growth from the remaining third-party FAL business.
Gross premiums written in 2023 increased by $51.9 million or 11.5%, compared to 2022. The increase was predominantly attributable to property and specialty lines due to improved pricing and new business. This was partially offset mostly by a decrease in financial line predominantly due to lower level of activity in transactional liability business.
Net Premiums Written
Ceded premiums written in 2024 was $62.4 million, resulting in net premiums written of $541.4 million, compared to $37.9 million and $466.5 million, respectively, in 2023. The increase in ceded premiums written of 64.6% was primarily within our specialty line driven by additional retrocessional coverage to manage our overall exposure to aviation, marine and energy classes of business and to reinstate certain retrocession excess of loss treaties in which the full coverage was presumed exhausted primarily from the Baltimore Bridge loss event in 2024 and the Russian-Ukraine conflict event in 2022. Additionally, we had an increase in quota share retrocessions due to growth from inward property and M&E business.
Ceded premiums written in 2023 was $37.9 million, resulting in net premiums written of $466.5 million, compared to $14.7 million and $437.8 million, respectively, in 2022. The increase in ceded premiums written of 157.0% was predominantly attributable to an increase in quota share retrocessions due to growth from inward property business.
Net premiums earned by line of business were as follows:
| % Change | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2024 · 2023 · 2022 · 2024 to 2023 · 2023 to 2022 | ||||||||
| Casualty | $89,213 | 17.4% | $82,365 | 17.6% | $78,160 | 19.0% | 8.3% | 5.4% |
| Financial | 56,903 | 11.1% | 56,195 | 12.0% | 56,952 | 13.9% | 1.3% | (1.3)% |
| Health | 217 | —% | 224 | —% | 5,507 | 1.3% | (3.1)% | (95.9)% |
| Multiline | 191,849 | 37.5% | 205,573 | 44.0% | 196,974 | 47.9% | (6.7)% | 4.4% |
| Property | 49,262 | 9.6% | 35,853 | 7.8% | 20,781 | 5.1% | 37.4% | 72.5% |
| Specialty | 124,477 | 24.4% | 86,541 | 18.6% | 52,503 | 12.8% | 43.8% | 64.8% |
| Total | $511,921 | 100.0% | $466,751 | 100.0% | $410,877 | 100.0% | 9.7% | 13.6% |
Net premiums earned in 2024 increased by $45.2 million or 9.7%, compared to 2023. Further, net premiums earned in 2023 increased by $55.9 million or 13.6%, compared to 2022. The increase (decrease) in net premiums earned by line of business is relatively consistent with the trends noted for the gross premiums written. The change is also influenced by the amount and timing of net premiums written during the current year and prior years, coupled with the business mix written in the form of excess of loss versus proportional contracts. Additionally, within the financial line and certain specialty line classes, the gross premiums written are earned over multiple years, corresponding with the anticipated risk coverage period.
Loss ratio
The components of the loss ratio were as follows:
| Year ended December 31, | 2024 | % Point Change | 2023 | % Point Change | 2022 |
|---|---|---|---|---|---|
| Current year: | |||||
| Attritional loss ratio | 56.8% | 4.6% | 52.2% | (5.0)% | 57.2% |
| CAT losses | 7.0% | 3.7% | 3.3% | (5.7)% | 9.0% |
| Current year loss ratio | 63.8% | 8.3% | 55.4% | (10.7)% | 66.2% |
| Prior year reserve development ratio | 2.9% | 2.1% | 0.8% | 1.6% | (0.8)% |
| Loss ratio | 66.7% | 10.5% | 56.2% | (9.2)% | 65.4% |
Current Year Loss Ratio
The current year loss ratio in 2024 increased by 8.3%, compared to 2023 due to:
4.6% increase in attritional loss ratio in 2024, driven mainly by higher reserve estimates for the growing in-force casualty, specialty and property lines of business.
3.7% increase in CAT losses, net of reinsurance, primarily attributable to more severe CAT loss events in 2024 including the Baltimore Bridge collapse and Hurricanes Helene and Milton, compared to one major CAT event in 2023 (the Mexican state-owned oil platform fire loss).
The current year loss ratio in 2023 decreased by 10.7%, compared to 2022 due to:
5.0% decrease in attritional loss ratio 2024, driven mainly by a change in business mix coupled with lower attritional loss estimates, principally on property and specialty lines of business that performed strongly; and
5.7% decrease in CAT losses, net of reinsurance, primarily attributable to lower volume and less severe CAT loss events in 2023, compared to two major CAT events in 2022 (Hurricane Ian and the Russian-Ukrainian conflict).
Prior Year Reserve Development Ratio
Prior year reserve development ratio increased by 2.1% in 2024 compared to 2023, and by 1.6% in 2023 compared to 2022. Refer to Note 7 Loss and LAE Reserves to the consolidated financial statements for further details on the lines of business and prior year development.
Acquisition cost ratio
The acquisition cost ratio decreased to 28.3% in 2024 from 29.2% in 2023, primarily due business mix and higher ratio of excess of loss contracts at lower commission rates than quota share reinsurance contracts; partially offset by higher acquisition costs for certain 2023 and 2024 FAL business in our multiline business.
The acquisition cost ratio decreased to 29.2% in 2023 from 30.5% in 2022, primarily due to business mix and higher ratio of excess of loss contracts at lower commission rate than quota share reinsurance contracts.
Underwriting expense ratio
The underwriting expense ratio decreased marginally by 0.2% to 4.0% in 2024 compared to 2023, mainly due to an increase in net premiums earned, partially offset by an increase in personnel to support the business growth.
The underwriting expense ratio decreased marginally by 0.3% to 4.2% in 2023 compared to 2022, mainly due to lower interest expense on deposit-accounted contracts and an increase in net premiums earned. This was partially offset by an increase in personnel to support the business growth.
Income before income taxes
The income before income taxes for Open Market decreased by $38.2 million to $47.7 million in 2024 compared to 2023, driven predominantly by lower underwriting profits; partially offset by an increase in investment income on funds withheld by third party Lloyd’s syndicates.
The income before income taxes for Open Market increased by $82.7 million to $85.9 million in 2023 compared to 2022, driven by strong underwriting profits; coupled with an increase in investment income driven mostly by favorable interest rate environment.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.