GREENLIGHT CAPITAL RE, LTD.
For the period ended Mar 31, 2025. Filed May 7, 2025.
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.
Mar 31, 2025 · Filed May 7, 2025
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 2024-09-30; 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 PronouncementsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001385613-25-000058
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 OperationsResults by SegmentOpen Market SegmentInnovations SegmentRunoff Underwriting BusinessIncome from Investment in SolasglasFinancial 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 163 previous paragraphs and 154 current paragraphs.
55 unchanged; 28 reworded; 71 added; 79 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 29 previous and 18 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 (71)
Current report
For Q1 2025, we earned a net income of $29.6 million, an increase of $2.6 million over Q1 2024, principally due to strong performance from our investment in Solasglas, despite negative and volatile market conditions. Favorable foreign exchange movement also contributed to the higher net income in Q1 2025, which was offset partially by underwriting loss and lower investment-related income from Lloyd’s syndicates compared to Q1 2024.
Current report
•Gross premiums written was $247.9 million, an increase of 14.1%;
Current report
•Net premiums earned was $168.5 million, an increase of 4.3%;
Current report
•Net underwriting loss was $7.8 million, compared to a net underwriting income of $3.4 million;
Current report
•Current year CAT losses, net of reinsurance, were $27.0 million, compared to $12.4 million; the related reinstatement premiums were $3.4 million, compared to $2.8 million.
Current report
•Adverse prior year loss development was $4.2 million, compared to $5.4 million;
Current report
Throughout Q1 2025 and into the active April 1 renewal period, we continue to see increased competition from existing and new reinsurance markets, predominantly in our Open Market segment. This is putting pressure on headline rates across various classes; however, attachment points and other terms & conditions are largely holding firm. We believe that market conditions are still broadly, but not uniformly, positive. We have recently adjusted our risk appetite to take a more cautious stance toward the casualty business in our Open Market segment. We will continue to write business where we believe we are being adequately compensated for the risk.
Current report
There are many factors contributing to an uncertain global economic outlook, and in particular, we believe that inflationary trends of recent years could persist. We continue to consider the potential impact of relevant economic factors on our underwriting portfolio. On the investment side, DME Advisors regularly monitors and re-positions Solasglas’ investment portfolio to manage the impact of inflation on its underlying investments and holds macro positions to benefit from a rising inflationary environment. DME Advisors pivoted during Q1 2025 from conservatively positioned to bearish. It lowered Solasglas’ gross and net exposure and added additional market hedges for tail protection.
Current report
In early April, the U.S. Administration enacted trade policies that were more aggressive than the financial markets expected, causing additional uncertainty and volatility. These policies further complicate the near-term outlook for economic growth and inflation. We remain vigilant to economic data and additional policies that may impact our business.
Current report
Consolidated Results of Operations for Q1 2025 compared to Q1 2024
Current report
For Q1 2025, net income increased by $2.6 million to $29.6 million, compared to Q1 2024 driven mainly by the following:
Current report
•Income tax expense: Increased by $0.8 million, or 147.0%, mainly due to an increase in taxable income from our Irish and U.K. subsidiaries driven by better underwriting results and higher investment returns.
Current report
The following is a further discussion and analysis for each reporting segment.
Current report
Results for the Open Market segment were as follows:
Current report
Gross premiums written by line of business were as follows:
Current report
Gross premiums written within our Open Market segment in Q1 2025 increased by $33.6 million or 18.0%, compared to Q1 2024. The increase was predominantly attributable to the following lines of business:
Current report
•Casualty: the 56.9% increase was mainly due to the growth in general liability quota share reinsurance contracts incepting in 2024, with premiums continued to be written in Q1 2025.
Current report
•Multiline: the 18.6% increase was predominantly driven by new FAL business; partially offset by non-renewed business in our commercial auto class.
Current report
•Specialty: the 10.0% increase was mainly driven by growth from 2024 quota share reinsurance treaties in our aviation class, in addition to new business and increased lines in our whole account marine and energy (M&E) class. This was partially offset by non-renewed business in our space and war, political violence, and terrorism (WPVT) classes.
Current report
Ceded premiums written in Q1 2025 was $25.1 million, resulting in net premiums written of $195.6 million, compared to $19.3 million and $167.7 million, respectively, in Q1 2024. The increase in ceded premiums written of 29.7% was primarily within our specialty line driven mainly by additional excess of loss retrocessional coverage to manage our overall exposure to aviation and M&E business, coupled with an increase in quota share retrocession due to growth from inward aviation and M&E business. This was partially offset by a decrease in quota share retrocession within our property line due to a decrease from inward property business.
Current report
Net premiums earned by line of business were as follows:
Current report
Net premiums earned within our Open Market segment in Q1 2025 increased by $18.0 million or 13.7%, compared to Q1 2024. The change is 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.
Current report
The components of the loss ratio for our Open Market segment were as follows:
Current report
The Q1 2025 current year loss ratio increased by 7.3%, compared to Q1 2024 mainly due to the increase in CAT losses, offset partially by a 1.3% reduction in attritional loss ratio. In Q1 2025, we incurred $27.0 million of CAT losses relating to the California wildfires, compared to $12.4 million of CAT losses in Q1 2024 predominantly due to the Baltimore bridge loss.
Current report
The reduction in attritional loss ratio was driven by the change in business mix, particularly a decrease in earned premiums from our multiline business at higher attritional loss ratio and an increase in property and specialty lines at lower attritional loss ratio. This was partially offset by an increase in attritional loss ratio on our casualty line in response to current economic and social inflation trends.
Current report
Prior year reserve development ratio increased by 2.2% in Q1 2025 compared to Q1 2024. Refer to Note 7 Loss and LAE Reserves to the condensed consolidated financial statements for further details on the lines of business and prior year development.
Current report
The acquisition cost ratio increased by 1.8 points in Q1 2025 compared to Q1 2024, primarily due to an increase in acquisition costs from the FAL business included in our multiline business, driven by higher fixed acquisition costs from new syndicate-in-a-box programs. This was partially offset by the lower acquisition costs ratio resulting from the change in business mix.
Current report
The underwriting expense ratio decreased by 1.5 points to 3.3% in Q1 2025 compared to Q1 2024, mainly due to an increase in net premiums earned, coupled with lower stock compensation expense attributable to the Open Market segment. Additionally, interest expense from deposit contracts was 0.4% point lower in Q1 2025 compared to Q1 2024.
Showing the first 40 of 71 passages. Open the source sections for the rest.
Removed paragraphs (79)
Previous report
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 report
•Gross premiums written was $168.3 million, a decrease of 8.0%;
Previous report
•Net premiums earned was $151.9 million, a decrease of 6.9%;
Previous report
•Net underwriting income(1) was $6.1 million, compared to $14.4 million;
Previous report
•Current year CAT losses, net of reinsurance, were $14.1 million, including $7.5 million from Hurricane Helene, compared to $13.2 million;
Previous report
•Favorable prior year loss development was $5.7 million, compared to $3.3 million;
Previous 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.
Previous 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.
Previous report
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 report
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 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.
Previous report
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 report
2 Net underwriting income is a non-GAAP financial measure. See “Key Financial Measures and Non-GAAP Measures” above for discussion and reconciliation of non-GAAP financial measures.
Previous report
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 report
Three months ended September 30, 2024
Previous report
Net income was $35.2 million for Q3 2024, compared to net income of $13.5 million reported for Q3 2023.
Previous report
The developments that most significantly affected our financial performance during Q3 2024, compared to Q3 2023, are summarized below:
Previous report
•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 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.
Previous report
•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.
Previous report
Nine months ended September 30, 2024
Previous report
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 report
Net income was $70.2 million for YTD 2024, compared to net income of $69.2 million reported for YTD 2023.
Previous report
The developments that most significantly affected our financial performance during YTD 2024, compared to YTD 2023, are summarized below:
Previous report
•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 report
•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 report
•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 report
•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 report
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 report
Details of gross premiums written are provided in the following table:
Previous report
As a result of our underwriting philosophy, the total premiums we write and the mix of premiums between property, casualty, and other business, may vary significantly from period to period depending on the market opportunities we identify.
Previous report
Our Q3 2024 gross premiums written decreased by $14.7 million, or 8.0%, compared to the equivalent 2023 period.
Previous report
The following table provides a further analysis of this overall decrease:
Previous report
Our YTD 2024 gross premiums written increased by $30.1 million, or 5.7%, compared to the equivalent 2023 period.
Previous report
The following table provides a further analysis of this overall increase:
Showing the first 40 of 79 passages. Open the source sections for the rest.
Reworded paragraphs (28)
Previous 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”).
Current wording
The following is management’s discussion and analysis (“MD&A”) of our results of operations for the three months ended March 31, 2025 and 2024 (herein referred as “Q1 2025” and “Q1 2024”, respectively) and the Company’s financial condition at March 31, 2025 and December 31, 2024.
Previous 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
Current wording
•Total investment income was $40.5 million, an increase of $9.1 million (including 7.2% net return from our investment in Solasglas, compared to net return of 5.2%); and
Previous wording
Fully diluted book value per share(1) was $18.72 at September 30, 2024, an increase of 11.8% since December 31, 2023.
Current wording
Fully diluted book value per share was $18.87 at March 31, 2025, an increase of 5.1% since December 31, 2024. See “Key Financial Measures and Non-GAAP Measures” section of this MD&A.
Previous wording
The table below summarizes our consolidated operating results for the three and nine months ended September 30, 2024 and 2023:
Current wording
The table below summarizes our consolidated operating results.
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 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.
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 a loss of $3.5 million and $5.4 million for the three months ended March 31, 2025 and 2024, respectively.
Previous 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.
Current wording
Basic book value per share increased by $1.04 per share, or 5.7%, to $19.30 per share from $18.26 per share at December 31, 2024. Fully diluted book value per share increased by $0.92 per share, or 5.1%, to $18.87 per share from $17.95 per share at December 31, 2024.
Previous 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.
Current wording
•Investment income: Increased by $9.1 million primarily driven by our investment in Solasglas, which reported a gain of $32.2 million during Q1 2025, compared to $18.2 million during Q1 2024. Solasglas generated a net return of 7.2% for Q1 2025 compared to a net return of 5.2% for Q1 2024. This was partially offset by lower investment income on funds withheld by third party Lloyd’s syndicates and lower interest income earned from restricted cash and cash equivalents mainly due to lower yields as a result of the interest rate cuts by central banks during 2024.
Previous 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.
Current wording
•Foreign exchange gains (losses): $4.4 million foreign exchange gains for Q1 2025, compared to $1.6 million foreign exchange losses in Q1 2024, driven mainly by the strengthening of the pound sterling against the U.S. dollar in Q1 2025.
Previous 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.
Current wording
•Underwriting income: Decreased by $11.2 million due to losses related to the devastating California Wildfires in January 2025, which contributed 14.0 combined ratio points in Q1 2025. The combined ratio increased by 6.7 points on higher net premiums earned. Our current year loss ratio increased by 6.1 points due to 8.3 points increase in CAT losses, offset partially by lower attritional loss ratio. Our prior year net reserve development improved by 0.8 points in Q1 2025. For further information on CAT losses and prior year loss development, refer to Note 7 -Loss and Loss Adjustment Expense Reserves of the Q1 2025 condensed consolidated financial statements.
Previous 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.
Current wording
Net premiums earned in Q1 2025 decreased by $1,192 or 5.9%, compared to Q1 2024. The change relates to the amount and timing of net premiums written during the current year and prior years.
Previous wording
For Q3 2024 and YTD 2024, Solasglas reported a net gain of 5.2% and 11.9%, respectively, compared to a net loss of 0.6% and a net gain of 9.1% for Q3 2023 and YTD 2023, respectively. The following table provides a breakdown of the gross and net investment return for Solasglas.
Current wording
For Q1 2025, Solasglas reported a net gain of 7.2%, compared to a net gain of 5.2% for Q1 2024. The following table provides a breakdown of the gross and net investment return for Solasglas.
Previous wording
For YTD 2024, the significant contributors to Solasglas’ investment return were long positions in GRBK, gold, and SOLB. The largest detractors were long positions in ODP Corporation (ODP), Brighthouse Financial (BHF) and a single-name short position.
Current wording
For Q1 2025, the significant contributors to Solasglas’ investment return were long positions in gold, Brighthouse Financial (BHF), and Lanxess (Germany: LXS). The largest detractors were long positions in Core Natural Resources (CNR), PENN Entertainment (PENN), and a single-name short position.
Previous wording
For Q3 2024, the significant contributors to Solasglas’ investment return were long positions in Green Brick Partners (GRBK), gold, and Solvay (Belgium: SOLB). The largest detractors were a short basket to hedge home building exposure, equity index hedges, and a separate housing-related, single-name short position.
Current wording
For Q1 2024, the significant contributors to Solasglas’ investment return were long positions in Green Brick Partners (GRBK), Tenet Healthcare (THC), and an S&P 500 / U.S. interest rate derivative position. The largest detractors were long positions in PENN, CONSOL Energy (CEIX), and a single-name short position.
Previous wording
At September 30, 2024, our total investments increased by $139.3 million, or 41.9%, to $471.4 million from December 31, 2023. The increase was primarily driven by $96.6 million of net contributions into Solasglas, coupled with the net investment return for YTD 2024 The contributions were funded partially from cash flow from operations and partially from the release of restricted cash.
Current wording
At March 31, 2025, our total investments increased by $48.3 million, or 10.5%, to $508.6 million from December 31, 2024. The increase was primarily driven by $16.0 million of net contributions into Solasglas, coupled with the net investment return for Q1 2025.
Previous wording
The above exposure analysis does not include cash (U.S. dollar and foreign currencies), gold and other commodities, credit default swaps, sovereign debt, foreign currency derivatives, interest rate derivatives, inflation swaps and other macro positions. Under this methodology, a total return swap’s exposure is reported at its full notional amount and options are reported at their delta-adjusted basis. At September 30, 2024, Solasglas’ exposure to gold on a delta-adjusted basis was 7.4% (2023: 11.2%).
Current wording
The above exposure analysis does not include cash (U.S. dollar and foreign currencies), gold and other commodities, credit default swaps, sovereign debt, foreign currency derivatives, interest rate derivatives, inflation swaps and other macro positions. Under this methodology, a total return swap’s exposure is reported at its full notional amount and options are reported at their delta-adjusted basis. At March 31, 2025, Solasglas’ exposure to gold on a delta-adjusted basis was 10.9% (2024: 10.1%).
Previous wording
At September 30, 2024, 95.2% of Solasglas’ portfolio was valued based on quoted prices in actively traded markets (Level 1), 3.6% was composed of instruments valued based on observable inputs other than quoted prices (Level 2), and a nominal amount was composed of instruments valued based on non-observable inputs (Level 3). At September 30, 2024, 1.2% of Solasglas’ portfolio consisted of private equity funds valued using the funds’ net asset values as a practical expedient.
Current wording
At March 31, 2025, 92.8% of Solasglas’ portfolio was valued based on quoted prices in actively traded markets (Level 1), 5.6% was composed of instruments valued based on observable inputs other than quoted prices (Level 2), and a nominal amount was composed of instruments valued based on non-observable inputs (Level 3). At March 31, 2025, 1.6% of Solasglas’ portfolio consisted of private equity funds valued using the funds’ net asset values as a practical expedient.
Previous wording
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 wording
The other investment holdings relate to private investments made by the Innovations segment. There were no new investments in Q1 2025.
Previous wording
We use our restricted cash and cash equivalents primarily for funding trusts and letters of credit issued to our ceding insurers. Our restricted cash decreased by $37.6 million, or 6.2%, from $604.6 million at December 31, 2023, to $567.1 million at September 30, 2024, primarily due to release of collateral from our ceding insurers relating to legacy contracts in run-off.
Current wording
We use our restricted cash and cash equivalents primarily for funding trusts and letters of credit issued to our ceding insurers. Our restricted cash increased by $10.9 million, or 1.9%, from $584.4 million at December 31, 2024, to $595.3 million at March 31, 2025.
Previous wording
Our reinsurance balances receivable increased by $99.3 million, or 16.0%, to $718.7 million from $619.4 million at December 31, 2023. This was driven primarily by $72.3 million increase in premiums receivable, net of collections, and $27.8 million in funds withheld from new and renewed reinsurance treaties.
Current wording
Our reinsurance balances receivable increased by $64.2 million, or 9.1%, to $768.7 million from $704.5 million at December 31, 2024. This was driven primarily by $31.4 million increase in premiums receivable, net of collections, and $33.3 million in funds withheld from new and renewed reinsurance treaties.
Previous wording
Our total gross loss and LAE reserves increased by $149.6 million, or 22.6%, to $811.2 million from $661.6 million at December 31, 2023, driven by the increase in earned premium from the renewal of reinsurance treaties and new business, coupled with an increase in loss ratio. This was offset partially by paid losses during YTD 2024. See Note 7 “Loss and Loss Adjustment Expense Reserves” of the financial statements for a summary of changes in outstanding loss and LAE reserves and a description of prior period loss developments.
Current wording
Our total gross loss and LAE reserves increased by $55.6 million, or 6.5%, to $916.6 million from $861.0 million at December 31, 2024, driven by the increase in earned premium from the renewal of reinsurance treaties and new business, coupled with an increase in the overall loss ratio. This was offset partially by paid losses during Q1 2025. See Note 7 “Loss and Loss Adjustment Expense Reserves” of the condensed consolidated financial statements for a summary of changes in outstanding loss and LAE reserves and a description of prior period loss developments.
Previous wording
Our total loss and LAE recoverable increased by $40.3 million, or 156.7%, to $65.9 million from $25.7 million at December 31, 2023. This increase was driven mainly by the estimated loss recoveries on the Baltimore Bridge loss event, the Taiwan earthquake (gross losses were mostly retroceded), and the increase in quota share retrocessions for Other Specialty business due to growth from inward premiums. See Note 8 “Retrocession” of the financial statements for a description of the credit risk associated with our retrocessionaires.
Current wording
Our total loss and LAE recoverable increased by $2.2 million, or 2.5%, to $88.0 million from $85.8 million at December 31, 2024. See Note 8 “Retrocession” of the condensed consolidated financial statements for a description of the credit risk associated with our retrocessionaires.
Previous wording
At October 1, 2024, our estimated largest PML at a 1-in-250-year return period for a single event, and in aggregate, was $99.8 million and $109.7 million, respectively, both relating to the peril of North Atlantic Hurricane, compared to $99.9 million and $109.2 million, respectively, at July 1, 2024.
Current wording
At April 1, 2025, our estimated largest PML at a 1-in-250-year return period for a single event, and in aggregate, was $122.9 million and $136.0 million, respectively, both relating to the peril of North Atlantic Hurricane, compared to $116.3 million and $129.1 million, respectively, at January 1, 2025.
Previous wording
Our total debt decreased by $10.7 million, or 14.6%, to $62.6 million from $73.3 million at December 31, 2023 due to a voluntary $10.0 million repayment in addition to quarterly installments. Refer to Note 9 “Debt and Credit Facil ities” of the financial statements for further information.
Current wording
Our total debt decreased by $0.9 million, or 1.5%, to $59.8 million from $60.7 million at December 31, 2024 due to the quarterly loan installment payment. Refer to Note 9 “Debt and Credit Facilities” of the condensed consolidated financial statements for further information.
Previous wording
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 wording
Total shareholders’ equity increased by $30.9 million to $666.8 million, compared to $635.9 million at December 31, 2024. The increase was primarily due to the net income of $29.6 million reported for the period, coupled with share-based compensation adjustment to additional paid-in capital.
Previous wording
The increase in cash used for investing activities was driven mainly by the net contribution of $96.6 million in Solasglas for YTD 2024 compared to a net contribution of $23.0 million during the same period in 2023.
Current wording
The $13.8 million decrease in cash used for investing activities was driven mainly by the lower net contribution in Solasglas in Q1 2025 compared to Q1 2024.
Previous wording
The debt to shareholders’ equity provides an indication of our leverage and capital structure, along with some insights into our financial strength. In addition to the above capital, we also have LOC facilities to support our reinsurance business operations where we are not licensed or admitted as a reinsurer.
Current wording
The debt to shareholders’ equity provides an indication of our leverage and capital structure, along with some insights into our financial strength. In addition to the above capital, we also have LC facilities to support our reinsurance business operations where we are not licensed or admitted as a reinsurer.
Previous wording
At September 30, 2024, there were 34,832,493 outstanding ordinary shares, a decrease of 504,239 since December 31, 2023, mainly due to 547,402 of share repurchases offset partially by issuance of RSs and ordinary shares for vested RSUs, net of forfeitures.
Current wording
At March 31, 2025, there were 34,557,449 outstanding ordinary shares, a decrease of 273,875 since December 31, 2024, mainly due to the net forfeited performance restricted stock awards granted in 2022. This was partially offset by the issuance of ordinary shares for vested service RSUs.
Previous wording
We expect that the existing capital base and internally generated funds will be sufficient to implement our business strategy for the foreseeable future. However, to provide us with flexibility and timely access to public capital markets should we require additional capital for working capital, capital expenditures, acquisitions, or other general corporate purposes, we have renewed our $200.0 million shelf registration by filing the Form S-3 registration statement with the SEC, which became effective on July 5, 2024, and will expire on July 1, 2027.
Current wording
We expect that the existing capital base and internally generated funds will be sufficient to implement our business strategy for the foreseeable future.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
(1)See “Key Financial Measures and Non-GAAP Measures” section of this MD&A.