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
Extracted filing text, with the paragraph anchors used by the comparison.
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Consolidated Results of Operations
The table below summarizes our consolidated operating results.
| 2025 · 2024 · Change | ||||
|---|---|---|---|---|
| Underwriting results: | ||||
| Gross premiums written | $247,945 | $217,258 | $30,687 | |
| Net premiums written | $219,397 | $194,077 | $25,320 | |
| Net premiums earned | $168,463 | $161,536 | $6,927 | |
| Net loss and LAE incurred: | ||||
| Current year | (118,666) | (103,925) | (14,741) | |
| Prior year (1) | (4,218) | (5,401) | 1,183 | |
| Net loss and LAE incurred | (122,884) | (109,326) | (13,558) | |
| Acquisition costs | (46,866) | (41,610) | (5,256) | |
| Underwriting expenses | (6,358) | (6,339) | (19) | |
| Deposit interest income (expense), net | (149) | (876) | 727 | |
| Net underwriting income (loss) | (7,794) | 3,385 | (11,179) | |
| Investment results: | ||||
| Income from investment in Solasglas | 32,197 | 18,248 | 13,949 | |
| Net investment income | 8,287 | 13,178 | (4,891) | |
| Total investment income | 40,484 | 31,426 | 9,058 | |
| Corporate and other expenses | (4,672) | (4,375) | (297) | |
| Foreign exchange gains (losses) | 4,355 | (1,649) | 6,004 | |
| Interest expense | (1,464) | (1,249) | (215) | |
| Income tax expense | (1,282) | (519) | (763) | |
| Net income | $29,627 | $27,019 | $2,608 | |
| Diluted earnings per share | $0.86 | $0.78 | $0.08 | |
| Underwriting ratios: | % Point Change | |||
| Attritional loss ratio | 54.4% | 56.6% | (2.2)% | |
| CAT loss ratio | 16.0% | 7.7% | 8.3% | |
| Current year loss ratio | 70.4% | 64.3% | 6.1% | |
| Prior year reserve development ratio | 2.5% | 3.3% | (0.8)% | |
| Loss ratio | 72.9% | 67.6% | 5.3% | |
| Acquisition cost ratio | 27.8% | 25.8% | 2.0% | |
| Composite ratio | 100.7% | 93.4% | 7.3% | |
| Underwriting expense ratio | 3.9% | 4.5% | (0.6)% | |
| Combined ratio | 104.6% | 97.9% | 6.7% | |
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.
Consolidated Results of Operations for Q1 2025 compared to Q1 2024
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.
For Q1 2025, net income increased by $2.6 million to $29.6 million, compared to Q1 2024 driven mainly by the following:
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.
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.
The above was partially offset by:
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.
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.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.