GREENLIGHT CAPITAL RE, LTD.

8. LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

The Company’s loss and LAE reserves were composed of the following:

Reserve Roll-forward

The following provides a reconciliation of the Company’s beginning and ending gross and net reserves for loss and LAE:

Estimates for Catastrophe Events

At December 31, 2025 and 2024, the Company’s net reserves for losses and LAE include estimated amounts for several catastrophe and weather-related events (the “CAT losses”).

The determination of the net reserves for losses and LAE related to CAT events represent the Company’s best estimate of losses and LAE that have been incurred at December 31, 2025, and 2024. The determination of these net reserves for losses and LAE is estimated by management after a catastrophe occurs by completing an in-depth analysis of individual contracts which could potentially have been impacted by the CAT event. This in-depth analysis may rely on several sources of information including:

•catastrophe bulletins published by various independent statistical reporting agencies;

•estimates of the size of insured industry losses from the CAT event and the Company’s corresponding market share;

•a review of the Company’s reinsurance contracts to identify those contracts which may be exposed to the CAT event;

•a review of modeled loss estimates based on information previously reported by customers and brokers, including exposure data obtained during the underwriting process;

•discussions of the impact of the event with customers and brokers; and

•a review of the coverage provided by the Company’s retrocession contracts (ceded reinsurance).

While the Company believes its estimate of net reserves for losses and LAE is adequate for CAT losses that have been incurred at December 31, 2025 based on current facts and circumstances, the Company monitors changes in paid and incurred losses in relation to each catastrophe in subsequent reporting periods and adjustments are made to estimates of ultimate losses for each event if there are developments that are different from previous expectations. The magnitude and volume of losses arising from CAT events is inherently uncertain. Adjustments are recorded in the period in which they are identified. Accordingly, actual losses for CAT events may ultimately differ materially from the Company’s current estimates.

CAT events in 2025

During the year ended December 31, 2025, the Company incurred CAT losses of $26.3 million relating to the California wildfires in January 2025. There were no loss recoveries associated with this event.

CAT events in 2024

During the year ended December 31, 2024, the Company incurred net CAT losses of $46.3 million driven mainly by the Baltimore Bridge collapse, Hurricanes Helene and Milton, and the severe convective storms in the U.S. (the “U.S. tornados”).

CAT events in 2023

During the year ended December 31, 2023, the Company incurred net CAT losses of $20.7 million driven mainly by the U.S. tornados and a Mexican state-owned oil platform fire loss.

Prior Year Reserve Development

The Company’s net favorable (adverse) prior year development arises from changes to estimates for losses and LAE related to loss events that occurred in previous calendar years. The following table presents net prior year reserve development by segment and consolidated:

•The net adverse reserve development in 2025 was composed of $55.4 million of reserve strengthening predominantly on the following lines of business:

◦the casualty line (various accident years) due to current economic and social inflation trends;

◦the financial line (2021 to 2024 accident years) due to worse than expected loss emergence for transactional liability business; and

◦the multiline business (2022 accident year) stemming from BOP & multiline commercial, and commercial auto business predominantly.

This was partially offset by $45.1 million of favorable reserve development on property stemming from benign catastrophe loss activity primarily on the 2024 accident year. Additionally, specialty lines of business benefited from management’s recognition of favorable reported loss emergence in the best estimate of its reserves. This was driven primarily by excess of loss reinsurance contracts covering accident years 2023 and 2024, where reported loss experience for events remained benign throughout the period in the portfolio.

•The net adverse reserve development in 2024 was composed of $18.4 million of reserve strengthening predominantly driven by the Russian-Ukrainian conflict over aviation losses due to additional uncertainties over judicial rulings interpreting applicable coverages and contracts in place and the future behavior of the Russian government and airlines. Additionally, the Company had reserve strengthening on the casualty line (various accident years) due to current economic and social inflation trends. This was partially offset by $3.4 million of favorable reserve development predominantly on financial and specialty lines (various accident years).

•The net adverse reserve development in 2023 was composed of $28.6 million of reserve strengthening predominantly on the casualty line (various accident years) due to current economic and social inflation trends, coupled with a final claim settlement on a professional liability contract (2008 accident year). This was partially offset mainly by $25.0 million of net favorable reserve development on the financial, property (CAT related), and specialty lines due to better than expected loss emergence (2020-2022 accident years).

•The net adverse reserve development in 2025 was composed of $2.8 million of reserve strengthening predominantly on the financial line (2022-2023 accident years) due to a higher volume of claims than expected. This was partially offset by $2.7 million of favorable reserve development predominantly on the multiline business (including Syndicate 3456).

•The net favorable reserve development in 2024 was composed of $1.8 million mainly on the health line (mostly 2020-2021 accident years) due to better than expected loss emergence, offset partially by $1.5 million reserve strengthening on financial, multiline, and specialty lines.

•The net adverse reserve development in 2023 was composed of $1.2 million of reserve strengthening predominantly on the multiline business (2021 accident year) due to current economic and social inflation trends. The adverse development was offset partially by $0.8 million favorable reserve development on specialty business (2021 accident year) due to better than expected loss emergence.

Corporate - Runoff Business

Corporate represents the runoff business relating to the Company’s property business not renewed in 2024 as a result of significant CAT losses driven by the U.S. tornados (2021-2023 accident years) and Winter Storm Elliott (2022 accident year). The adverse prior year reserve development for the three years presented in the above table relates to these CAT events.

Net Incurred and Paid Claims Development Tables by Accident Year

The following tables present net incurred and paid claims development by accident year, total IBNR liabilities plus expected development on reported claims, and average annual percentage payout of incurred claims by age for each line of business. The loss development tables are presented on an accident year basis for each line of business within the Open Market and Innovations segments, as well as for the Corporate runoff property business (see Note 18). The Company does not discount reserves for losses and LAE.

For incurred and paid claims denominated in currencies other than U.S. dollars, the tables are presented using the foreign exchange rate in effect at the current year-end date. As a result, all prior year information has been restated to reflect December 31, 2025, foreign exchange rates. This treatment prevents changes in foreign currency exchange rates from distorting the claims development between the years presented.

Additionally, for assumed proportional contracts, the presentation of net incurred and paid claims development tables by accident year is challenging due to the need to allocate loss information to the appropriate accident years. The Company does not generally receive claims information by accident year from the ceding insurers but instead receives claims information by the treaty year of the contract. Claims reported by the ceding insurer to the Company may have the covered losses occurring in an accident year other than the treaty year. Some incurred and paid claims have been allocated to the accident years for the loss development tables based on the proportion of premiums earned for each contract during such accident year. To the extent that management’s assumptions and allocation procedures differ from the actual loss development patterns, the actual loss development may differ materially from the net incurred and paid claims development presented in the tables below.

The totals in the tables below may not sum due to rounding.

Corporate - Runoff Business

Reconciliation of Loss Development Tables to Consolidated Balance Sheet

The following reconciles the reserve for losses and LAE at December 31, 2025, included in the loss development tables to the loss and LAE reserves reported in the consolidated balance sheet: