GREENLIGHT CAPITAL RE, LTD.
For the period ended Jun 30, 2025. Filed Aug 4, 2025.
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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.
Jun 30, 2025 · Filed Aug 4, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Open Market Segment
Results for the Open Market segment were as follows:
| Three months ended June 30 · Six months ended June 30 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 · % Change · 2024 · 2025 · % Change · 2024 | ||||||||||||
| Gross premiums written | $152,333 | 6.3% | $143,311 | $373,042 | 12.9% | $330,372 | ||||||
| Net premiums written | $142,111 | 8.0% | $131,585 | $337,720 | 12.8% | $299,301 | ||||||
| Net premiums earned | $140,554 | 11.7% | $125,865 | $290,195 | 12.7% | $257,475 | ||||||
| Net loss and LAE incurred | (83,475) | (73,403) | (196,238) | (160,103) | ||||||||
| Acquisition costs | (40,900) | (40,511) | (81,781) | (74,090) | ||||||||
| Other underwriting expenses | (4,861) | (4,816) | (9,658) | (10,294) | ||||||||
| Deposit interest expense, net | (124) | 233 | (273) | (643) | ||||||||
| Underwriting income | 11,194 | 7,368 | 2,245 | 12,345 | ||||||||
| Net investment income | 5,629 | (42.5)% | 9,782 | 11,400 | (49.1)% | 22,398 | ||||||
| Income before income taxes | $16,823 | $17,150 | $13,645 | $34,743 | ||||||||
| Underwriting ratios: | 2025 | % Point Change | 2024 | 2025 | % Point Change | 2024 | ||||||
| Loss ratio | 59.4% | 1.1 | 58.3% | 67.6% | 5.4 | 62.2% | ||||||
| Acquisition cost ratio | 29.1% | (3.1) | 32.2% | 28.2% | (0.6) | 28.8% | ||||||
| Composite ratio | 88.5% | (2.0) | 90.5% | 95.8% | 4.8 | 91.0% | ||||||
| Underwriting expenses ratio | 3.5% | (0.1) | 3.6% | 3.4% | (0.8) | 4.2% | ||||||
| Combined ratio | 92.0% | (2.1) | 94.1% | 99.2% | 4.0 | 95.2% | ||||||
Gross Premiums Written
Gross premiums written by line of business were as follows:
| Three months ended June 30 · Six months ended June 30 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2025 · 2024 · Change · 2025 · 2024 · Change | ||||||||||
| Casualty | $20,008 | 13% | $27,547 | 19% | $(7,539) | $49,732 | 13% | $46,491 | 14% | $3,241 |
| Financial | 16,416 | 11% | 14,362 | 10% | 2,054 | 40,480 | 11% | 35,369 | 11% | 5,111 |
| Health | 12 | —% | — | —% | 12 | 209 | —% | 215 | —% | (6) |
| Multiline | 52,742 | 35% | 35,967 | 25% | 16,775 | 119,076 | 32% | 91,883 | 28% | 27,193 |
| Property | 18,055 | 12% | 24,261 | 17% | (6,206) | 48,094 | 13% | 51,308 | 16% | (3,214) |
| Specialty | 45,100 | 30% | 41,174 | 29% | 3,926 | 115,451 | 31% | 105,106 | 32% | 10,345 |
| Total | $152,333 | 100% | $143,311 | 100% | $9,022 | $373,042 | 100% | $330,372 | 100% | $42,670 |
Gross premiums written within our Open Market segment in Q2 2025 increased by $9.0 million or 6.3%, compared to Q2 2024. The increase was predominantly attributable to the following line of business:
Multiline: The 46.6% increase was driven mostly by growth in our current FAL business bound during Q1 2025, coupled with lower negative revision to our estimated ultimate gross premiums for certain 2023 and 2024 FAL treaties than in Q2 2024. This growth was partially offset by non-renewed business in our commercial auto class and multiline commercial class.
Casualty: The 27.4% decrease was mainly due to the non-renewal of certain reinsurance programs in our general liability class and multiline casualty class as part of our strategy to reduce our exposure to our casualty line of business.
Property: The 25.6% decrease was mainly due to negative revision to our estimated ultimate gross premiums for a 2024 quota share reinsurance treaty, compared to Q2 2024. Additionally, we experienced rate reductions on certain renewed excess of loss property treaties, coupled with select decreases in line size compared to the prior year. This was partially offset by new excess of loss business.
Gross premiums written within our Open Market segment in YTD 2025 increased by $42.7 million or 12.9%, compared to YTD 2024. The increase was predominantly attributable to the following lines of business:
Multiline: The 29.6% increase was driven by the same factors noted for Q2 2025.
Specialty: The 9.8% increase was mainly driven by growth from 2024 quota share reinsurance treaties and new excess loss 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 class and war, political violence, and terrorism (WPVT) class, coupled with negative premium revision on a cyber treaty bound in 2023.
Property: The 6.3% decrease was mainly driven by the same factors noted for Q2 2025, partially offset by growth in our property catastrophe class due to reinstatement premiums relating to the California wildfire and new accounts.
Net Premiums Written
Ceded premiums written in Q2 2025 was $10.2 million, resulting in net premiums written of $142.1 million, compared to $11.7 million and $131.6 million, respectively, in Q2 2024. The decrease in ceded premiums written of 12.8% was driven by a decrease in quota share retrocession within our property line due to the non-renewal of the inward 2023 quota share reinsurance treaty as previously noted, offset partially by an increase in quota share retrocession due to growth from inward aviation and M&E business.
Ceded premiums written in YTD 2025 was $35.3 million, resulting in net premiums written of $337.7 million, compared to $31.1 million and $299.3 million, respectively, in YTD 2024. The increase in ceded premiums written of 10.4% 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 as noted for Q2 2025.
Net Premiums Earned
Net premiums earned by line of business were as follows:
| Three months ended June 30 · Six months ended June 30 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2025 · 2024 · Change · 2025 · 2024 · Change | ||||||||||
| Casualty | $24,680 | 18% | $21,628 | 17% | $3,052 | $52,023 | 18% | $44,937 | 14% | $7,086 |
| Financial | 15,306 | 11% | 15,152 | 12% | 154 | 29,621 | 10% | 31,308 | 9% | (1,687) |
| Health | 44 | —% | 54 | —% | (10) | 89 | —% | 108 | —% | (19) |
| Multiline | 45,640 | 32% | 44,258 | 35% | 1,382 | 99,362 | 34% | 99,518 | 30% | (156) |
| Property | 13,803 | 10% | 12,977 | 10% | 826 | 32,309 | 11% | 24,626 | 7% | 7,683 |
| Specialty | 41,082 | 29% | 31,796 | 25% | 9,286 | 76,792 | 26% | 56,978 | 17% | 19,814 |
| Total | $140,555 | 100% | $125,865 | 100% | $14,690 | $290,196 | 100% | $257,475 | 100% | $32,721 |
Net premiums earned within our Open Market segment in Q2 2025 increased by $14.7 million or 11.7%, compared to Q2 2024 and by $32.7 million or 12.7% for YTD 2025, compared to YTD 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.
Loss ratio
The components of the loss ratio for our Open Market segment were as follows:
| Three months ended June 30 | Six months ended June 30 | |||||
|---|---|---|---|---|---|---|
| 2025 | % Point Change | 2024 | 2025 | % Point Change | 2024 | |
| Current year: | ||||||
| Attritional loss ratio | 55.5% | 1.7 | 53.8% | 54.5% | (0.1) | 54.6% |
| Large event loss ratio | 4.6% | 0.1 | 4.4% | 2.4% | (0.7) | 3.1% |
| CAT event loss ratio | —% | — | —% | 9.3% | 5.4 | 3.9% |
| Current year loss ratio | 60.1% | 1.8 | 58.3% | 66.3% | 4.6 | 61.6% |
| Prior year reserve development ratio | (0.7)% | (0.7) | —% | 1.4% | 0.8 | 0.6% |
| Loss ratio | 59.4% | 1.1 | 58.3% | 67.6% | 5.4 | 62.2% |
Current Year Loss Ratio
Q2 2025 vs Q2 2024
The Q2 2025 current year loss ratio increased by 1.8 points, compared to Q2 2024 driven mainly by an increase in attritional loss ratio, driven predominantly by our casualty line in response to current economic and social inflation trends. Additionally, there was an increase in attritional loss ratio in our financial line in response to poor performance relating to transactional liability business.
For Q2 2025, large event loss was driven mostly by the Air India crash in India, and YTD 2025 included losses from the American Airlines crash in Washington and the Moss Landing Power Plant fire in California. For Q2 2024, large event loss was predominantly from the Taiwan Earthquake and the Mexico-state owned oil platform fire. In addition to these, the YTD 2024 large event loss included satellite failures.
YTD 2025 vs YTD 2024
The YTD 2025 current year loss ratio increased by 4.6 points, compared to YTD 2024, mainly due to 5.4 points increase in CAT losses, offset partially by 0.1 point reduction in attritional loss ratio. For YTD 2025, we incurred $27.0 million of CAT losses relating to the California wildfires, compared to $10.0 million of CAT losses, net of reinsurance, in YTD 2024 due to the Baltimore bridge loss.
The reduction in attritional loss ratio was driven by higher earned premiums on our property and specialty business at lower attritional loss ratio in YTD 2025 compared to YTD 2024, offset partially by the increase in attritional loss ratio on our casualty line for the same reason as noted for Q2 2025.
Prior Year Reserve Development Ratio
Open Market segment’s prior year reserve development ratio decreased by 0.7 points in Q2 2025 compared to Q2 2024 and increased by 0.8 point in YTD 2025 compared to YTD 2024. Refer to Note 7 Loss and LAE Reserves to the condensed consolidated financial statements for further details.
Acquisition cost ratio
The acquisition cost ratio decreased by 3.1 points in Q2 2025 compared to Q2 2024, primarily due to a decrease in acquisition cost ratio for our financial and multiline business, partially offset by an increase in acquisition cost ratio for our specialty line, predominantly driven by growth in quota share reinsurance treaties at higher acquisition cost ratio than for excess of loss treaties.
The key drivers for the improved acquisition cost ratio relating to the financial and multiline business were:
Financial: Driven by our transactional liability business due to lower profit commission as a result of adverse loss reserve development in the current quarter. Additionally, the acquisition cost ratio for the mortgage business was higher in Q2 2024 due to an increase in profit commission on prior years’ treaties.
Multiline: Driven predominantly from our FAL business, where in Q2 2024 we had increased our previously estimated acquisition costs for certain 2023 and 2024 FAL business based on updated reporting received; whereas there were minor revisions in Q2 2025.
The acquisition cost ratio increased by 0.6 points in YTD 2025 compared to YTD 2024, primarily due to the change in business mix, coupled with improved acquisition cost ratio for the financial line for the same reason as noted for Q2 2025. This was partially offset by an increase in acquisition cost ratio for our specialty line predominantly driven by growth in quota share reinsurance treaties, which have a higher acquisition cost ratio than for excess of loss treaties.
Underwriting expense ratio
The underwriting expense ratio decreased by 0.1 points to 3.5% in Q2 2025 compared to Q2 2024, mainly due to an increase in net premiums earned in the Open Market segment.
The underwriting expense ratio decreased by 0.8 points to 3.4% in YTD 2025 compared to YTD 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 lower in Q2 2025 compared to Q2 2024.
Income (loss) before income taxes
Income before income taxes for the Open Market segment was $16.8 million for Q2 2025, compared to $17.2 million for Q2 2024. The decrease was driven predominantly 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 as a result of the interest rate cuts by central banks during the second half of 2024. This was partially offset by improved underwriting results in the current quarter.
Income before income taxes for the Open Market segment was $13.6 million for YTD 2025, compared to $34.7 million for YTD 2024. The decrease was mainly due to the lower investment income, as noted for Q2 2025, and lower underwriting income predominantly due to higher CAT loss relating to California wildfires in 2025.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.