Core Viewpoint - Greenlight Capital Re, Ltd. held its Q2 2025 earnings call, featuring key executives including CEO Greg Richardson and Chairman David Einhorn, to discuss the company's performance and future outlook [1][2]. Group 1: Company Overview - The earnings call was initiated by General Counsel David Sigmon, who provided details about the call's recording and availability for replay on the company's website [2]. - The call included forward-looking statements that reflect the company's current expectations and are subject to risks and uncertainties, indicating that actual results may differ from those predicted [3][4]. Group 2: Financial Reporting - Management may refer to non-GAAP financial measures during the call, with reconciliations available in the company's SEC filings, including the Form 10-K [5].

Financial Data and Key Metrics Changes - The company reported a net income of $300,000 for Q2 2025, bringing the year-to-date net income to $30,000,000 [5] - Fully diluted book value per share increased by 0.5% in the quarter and 5.7% for the first half of the year [5] - The combined ratio for the quarter was 95%, translating to $8,100,000 of underwriting income [5][16] - The net financial impact of prior year adverse loss development was $2,600,000, contributing 1.6 combined ratio points [6] Business Line Data and Key Metrics Changes - The Open Market segment grew net written premiums by 8% to $142,100,000, primarily driven by growth in the FAL business [17] - The Innovation segment saw net written premiums increase by 2.3% to $22,700,000, mainly due to Syndicate 3456 and some specialty programs [18] - The Open Market combined ratio improved by 2.1 points to 92% compared to 94.1% for the same period in 2024 [17] - The Innovation segment's combined ratio was 107, compared to 90.9% in Q2 last year, with adverse reserve development contributing 11.8 points [19] Market Data and Key Metrics Changes - Overall market conditions remained similar to previous quarters, with flat to mild single-digit decreases in risk-adjusted rate change [8] - Foreign exchange gains in the quarter were $6,300,000, primarily driven by British pound sterling denominated balances as the pound strengthened against the U.S. dollar [20] Company Strategy and Development Direction - The company has started to non-renew a significant portion of its open market casualty book, which began to affect top-line results in Q2 [7] - The company is repositioning away from open market casualty into other better risk-adjusted lines, expecting this to contribute positively to results over the intermediate term [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in being well-positioned to weather any storms as they head into the peak of the catastrophe season [8] - The company noted that Q2 was a benign quarter from a catastrophe activity perspective [6] - Management highlighted that the economic environment may be worse than generally understood, as many companies are reporting weak results [13] Other Important Information - The company repurchased $5,000,000 worth of its stock at an average cost of $13.99 per share during the quarter [8] - An investor presentation summarizing results and strategy was prepared and made available in the Investor Relations section of the corporate website [8] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the Q&A session may not have occurred or was not included in the transcript [22][23]

Financial Performance - Greenlight Re's total assets reached $2.2 billion in Q2 2025[11] - Shareholders' equity stood at $663 million in Q2 2025[11] - The company repurchased shares worth $12.5 million over the past 12 months[11,42], including 357,278 ordinary shares at an average price of $13.99 per share in Q2 2025[12] - Fully diluted book value per share increased to $18.97 in Q2 2025[25], compared to $17.65 in Q2 2024[25] Underwriting Performance - Gross premiums written for the trailing twelve months ended June 30, 2025, were $740 million[11] - Gross premiums written increased from $169 million in Q2 2024 to $179.6 million in Q2 2025[25] - The combined ratio improved to 95% in Q2 2025[25], compared to 99.8% in Q2 2024[25] - Net underwriting income increased to $8.1 million in Q2 2025[25], compared to $0.3 million in Q2 2024[25] Investment Performance - Solasglas Investments, LP's annual average returns since 2020 is 9.8%[36] - Solasglas Investments, LP's annual average returns since inception is 5.5%[36]

Premiums and Underwriting Performance - Gross premiums written increased by 6.3% to $179.6 million in Q2 2025, and by 10.7% to $427.6 million for the six months ended June 30, 2025[6] - Net underwriting income for Q2 2025 was $8.1 million, a significant increase from $0.3 million in Q2 2024[6] - The combined ratio improved to 95.0% in Q2 2025, down from 99.9% in Q2 2024[6] - For the six months ended June 30, 2025, net premiums earned increased by 3.2% to $330.1 million compared to the same period in 2024[6] - The combined ratio for the six months ended June 30, 2025, was 99.9%, compared to 98.9% for the same period in 2024, indicating a slight deterioration in underwriting performance[20] - Underwriting income for the six months ended June 30, 2025, was $315,000, a decrease from $3,718,000 in 2024, indicating a decline in underwriting profitability[20] Investment Performance - Total investment loss for Q2 2025 was $7.8 million, compared to total investment income of $15.3 million in Q2 2024[6] - The company reported a total investment income of $32.7 million for the six months ended June 30, 2025, down from $46.7 million in the same period in 2024[6] - Net investment income for the six months ended June 30, 2025, was $18,757,000, an increase from $24,126,000 in 2024, showing a decrease of 22.3%[20] - Foreign exchange gains for the six months ended June 30, 2025, were $10,626,000, compared to losses of $2,581,000 in 2024, indicating a significant turnaround in foreign exchange performance[20] Net Income and Earnings - Net income for Q2 2025 was $0.3 million, or $0.01 per diluted ordinary share, down from $8.0 million, or $0.23 per diluted ordinary share in Q2 2024[6] - Income (loss) before income taxes for the six months ended June 30, 2025, was $31,584,000, compared to $35,951,000 in 2024, reflecting a decrease of 12.1%[20] Shareholder Equity and Book Value - Fully diluted book value per share increased by 0.5% to $18.97 as of June 30, 2025, from $18.87 at March 31, 2025[6] - Basic book value per share increased to $19.40 as of June 30, 2025, from $19.30 on March 31, 2025, reflecting a growth of 0.5%[29] - The basic book value per share has shown a consistent upward trend from $17.95 on June 30, 2024, to $19.40 on June 30, 2025, representing an increase of 8.05%[29] - The fully diluted book value per share has also increased from $17.65 on June 30, 2024, to $18.97 on June 30, 2025, reflecting a growth of 7.48%[29] - Total equity reported under U.S. GAAP as of June 30, 2025, is $663.318 million, compared to $666.804 million on March 31, 2025[29] Share Repurchase and Outstanding Shares - The company repurchased $5.0 million of shares at an average cost of $13.99 per share during the quarter[6] - The number of ordinary shares issued and outstanding decreased to 34,198,153 as of June 30, 2025, from 34,557,449 on March 31, 2025, a decline of approximately 1.05%[29] - The number of fully diluted shares increased from 35,421,325 on March 31, 2025, to 34,973,277 on June 30, 2025, indicating a reduction in dilution[29]

PART I — FINANCIAL INFORMATION [Note on Forward-Looking Statements](index=4&type=section&id=NOTE%20OF%20FORWARD-LOOKING%20STATEMENTS) This section provides a standard disclaimer for forward-looking statements, detailing their nature, underlying assumptions, and factors that could cause actual results to differ materially - Forward-looking statements are identified by words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "will," and similar expressions[8](index=8&type=chunk) - These statements cover estimates for catastrophe and weather-related losses, potential losses in investment fair value, business performance, financial results, liquidity, capital resources, strategic initiatives, pricing, and market/economic conditions[9](index=9&type=chunk) - Key risk factors include license suspension/revocation, losses from catastrophes, A.M. Best rating downgrades, loss of significant brokers, and other risks detailed in the 2024 Form 10-K[12](index=12&type=chunk) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) This section presents unaudited condensed consolidated financial statements, including balance sheets, statements of operations, equity changes, cash flows, and explanatory notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets show the company's financial position, with total assets and shareholders' equity increasing due to investments and reinsurance balances | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | |:---|:---|:---|:---|:---| | Total assets | $2,188,024 | $2,016,223 | $171,801 | 8.5% | | Total liabilities | $1,524,706 | $1,380,344 | $144,362 | 10.5% | | Total shareholders' equity | $663,318 | $635,879 | $27,439 | 4.3% | | Investment in related party investment fund | $461,265 | $387,144 | $74,121 | 19.1% | | Loss and loss adjustment expense reserves | $944,985 | $860,969 | $84,016 | 9.8% | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statements of operations show a significant net income decrease for Q2 2025, driven by investment losses despite increased net premiums earned | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | |:---|:---|:---|:---|:---| | Net premiums earned | $161,641 | $158,398 | $3,243 | 2.0% | | Income (loss) from investment in related party investment fund | $(18,276) | $4,330 | $(22,606) | -522.1% | | Net income | $329 | $7,978 | $(7,649) | -95.9% | | Diluted EPS | $0.01 | $0.23 | $(0.22) | -95.7% | | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | |:---|:---|:---|:---|:---| | Net premiums earned | $330,104 | $319,934 | $10,170 | 3.2% | | Income (loss) from investment in related party investment fund | $13,921 | $22,578 | $(8,657) | -38.3% | | Net income | $29,956 | $34,997 | $(5,041) | -14.4% | | Diluted EPS | $0.87 | $1.01 | $(0.14) | -13.9% | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) This statement details shareholders' equity movements, showing an overall increase for H1 2025, driven by net income and share-based compensation | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | |:---|:---|:---| | Balance - beginning of period (Ordinary share capital) | $3,483 | $3,534 | | Repurchase of ordinary shares | $(36) | — | | Balance - end of period (Ordinary share capital) | $3,420 | $3,532 | | Balance - beginning of period (Additional paid-in capital) | $481,551 | $484,532 | | Repurchase of ordinary shares | $(4,964) | — | | Share-based compensation expense | $2,510 | $2,930 | | Balance - end of period (Additional paid-in capital) | $479,097 | $487,462 | | Balance - beginning of period (Retained earnings) | $150,845 | $108,029 | | Net income | $29,956 | $34,997 | | Balance - end of period (Retained earnings) | $180,801 | $143,026 | | Total shareholders' equity | $663,318 | $634,020 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statement highlights a substantial increase in operating cash flow for H1 2025, with decreased cash used in investing and financing | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | |:---|:---|:---| | Net cash provided by operating activities | $78,819 | $40,669 | | Net cash used in investing activities | $(62,932) | $(70,246) | | Net cash used in financing activities | $(6,875) | $(11,876) | | Increase (decrease) in cash, cash equivalents and restricted cash | $9,973 | $(41,560) | | Cash, cash equivalents and restricted cash at end of the period | $659,060 | $614,170 | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures for the condensed consolidated financial statements, covering key financial areas [1. Organization and Basis of Presentation](index=9&type=section&id=1.%20ORGANIZATION%20AND%20BASIS%20OF%20PRESENTATION) This note describes Greenlight Capital Re, Ltd. as a global specialty reinsurer and clarifies the basis of presentation for unaudited financial statements - Greenlight Capital Re, Ltd. (GLRE) is a **global specialty property and casualty reinsurer** headquartered in the Cayman Islands[24](index=24&type=chunk) - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information and SEC instructions[24](index=24&type=chunk) [2. Significant Accounting Policies](index=9&type=section&id=2.%20SIGNIFICANT%20ACCOUNTING%20POLICIES) No material changes to significant accounting policies since 2024 Form 10-K, with reclassifications, an updated CAT loss definition, and ongoing evaluation of new ASUs - No material changes to significant accounting policies since the 2024 Form 10-K[27](index=27&type=chunk) - Reclassified "Underwriting expenses" and "Corporate and other expenses" separately, and investment-related income from Lloyd's syndicates to "Net investment income"[28](index=28&type=chunk) - Updated the definition of CAT event loss to any individual CAT loss exceeding **$5 million**, net of reinsurance recoveries[28](index=28&type=chunk) - The company is evaluating the disclosure impact of new ASUs, including ASU 2023-09 (Income Taxes) and ASU 2024-03 (Disaggregation of Income Statement Expenses)[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) [3. Investment in Related Party Investment Fund](index=10&type=section&id=3.%20INVESTMENT%20IN%20RELATED%20PARTY%20INVESTMENT%20FUND) This note details the company's investment in Solasglas Investments, LP, showing an increase in GLRE's share of partners' capital | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | |:---|:---|:---| | GLRE's share of Partners' capital in Solasglas | $461,265 | $387,144 | | Solasglas' total assets | $977,658 | $743,939 | | Solasglas' Partners' capital | $578,785 | $497,112 | | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | |:---|:---|:---| | GLRE's share of net increase in Partners' capital | $13,921 | $22,578 | | Solasglas' net increase (decrease) in Partners' capital | $21,472 | $35,024 | [4. Other Investments](index=11&type=section&id=4.%20OTHER%20INVESTMENTS) This note breaks down other investments, primarily private and unlisted equities, and summarizes net realized and unrealized gains or losses | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | |:---|:---|:---| | Private investments and unlisted equities | $74,372 | $71,867 | | Debt and convertible debt securities | $1,664 | $1,293 | | Total other investments | $76,036 | $73,160 | | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | |:---|:---|:---| | Net realized and unrealized gains (losses) on other investments | $144 | $(324) | [5. Restricted Cash and Cash Equivalents](index=13&type=section&id=5.%20RESTRICTED%20CASH%20AND%20CASH%20EQUIVALENTS) This note details restricted cash and cash equivalents, primarily held for trust accounts and letters of credit, and reconciles these amounts | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | |:---|:---|:---| | Cash securing trust accounts | $253,125 | $256,796 | | Cash securing letters of credit issued | $307,463 | $312,855 | | Total restricted cash and cash equivalents | $576,698 | $584,402 | | Total cash, cash equivalents, and restricted cash | $659,060 | $649,087 | [6. Fair Value Measurements](index=13&type=section&id=6.%20FAIR%20VALUE%20MEASUREMENTS) This note outlines fair value measurements for assets, distinguishing nonrecurring and recurring bases, and their classification within the fair value hierarchy - At June 30, 2025, the company held **$67.2 million** in private investments and unlisted equities measured at fair value on a nonrecurring basis, classified as Level 3[44](index=44&type=chunk) - Interest rate swaps, used to hedge **50%** of Term Loans interest rate risk, are carried at fair value (Level 2) and are not designated as accounting hedges[46](index=46&type=chunk) - For the six months ended June 30, 2025, a nominal unrealized loss was recognized for derivatives, compared to a **$0.6 million** unrealized gain in 2024[47](index=47&type=chunk) [7. Loss and Loss Adjustment Expense Reserves](index=14&type=section&id=7.%20LOSS%20AND%20LOSS%20ADJUSTMENT%20EXPENSE%20RESERVES) This note details the roll-forward of loss and LAE reserves, including incurred and paid losses, CAT estimates, and prior year reserve development by segment | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | |:---|:---|:---| | Case reserves | $242,033 | $230,633 | | IBNR | $702,952 | $630,336 | | Total loss and LAE reserves | $944,985 | $860,969 | | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | |:---|:---|:---| | Net balance at January 1 | $775,179 | $635,867 | | Total incurred losses | $222,963 | $211,359 | | Total paid losses | $(176,706) | $(150,393) | | Net balance at June 30 | $851,014 | $694,110 | - In H1 2025, the company incurred **$27.0 million** in CAT losses primarily from California wildfires, compared to **$17.7 million** in H1 2024 from events like the Baltimore Bridge collapse and U.S. tornadoes[52](index=52&type=chunk)[53](index=53&type=chunk) | Segment | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | |:---|:---|:---| | Open Market | $(5,919) | $109 | | Innovations | $(1,346) | $(4,821) | | Consolidated Net Prior Year Reserve Development | $(7,265) | $(4,712) | - Open Market segment experienced **$32.0 million** adverse development in H1 2025, mainly from casualty lines due to inflation and worse-than-expected loss emergence in financial and multiline business, partially offset by favorable property and specialty lines[59](index=59&type=chunk) - Innovations segment had **$2.3 million** adverse development in H1 2025, predominantly in the financial line due to higher claim volume[59](index=59&type=chunk) [8. Retrocession](index=15&type=section&id=8.%20RETROCESSION) This note summarizes ceded reinsurance activities, including premiums and losses, and details losses recoverable, highlighting credit risk concentration | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | |:---|:---|:---| | Gross ceded premiums | $43,649 | $38,013 | | Earned ceded premiums | $36,601 | $27,091 | | Loss and loss adjustment expenses ceded | $15,662 | $37,849 | | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | |:---|:---|:---| | Total loss and loss adjustment expenses recoverable, net | $93,971 | $85,790 | | Gross recoverable (A- or better by A.M. Best) | $91,323 | $82,181 | | Gross recoverable (Not rated) | $3,148 | $4,109 | - At June 30, 2025, three reinsurers accounted for **10% or more** of the total net losses recoverable, with an aggregate gross amount of **$53.3 million**[61](index=61&type=chunk) [9. Debt and Credit Facilities](index=16&type=section&id=9.%20DEBT%20AND%20CREDIT%20FACILITIES) This note details outstanding debt, primarily Term Loans, and LC facilities, confirming partial debt repayment and compliance with covenants | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | |:---|:---|:---| | Term loans | $58,438 | $60,313 | | Total debt | $58,889 | $60,749 | - The company partially repaid **$1.9 million** of outstanding Term Loans during the six months ended June 30, 2025[63](index=63&type=chunk) | LC Facility | Capacity (in thousands) | LCs issued (in thousands) | Termination Date | |:---|:---|:---|:---| | Citibank | $275,000 | $191,150 | December 19, 2025 | | CIBC | $200,000 | $116,121 | December 31, 2025 | | HSBC | $100,000 | — | December 17, 2025 | | Total | $575,000 | $307,271 | | - At June 30, 2025, the company was in compliance with all LC facilities covenants[64](index=64&type=chunk) [10. Share Capital](index=17&type=section&id=10.%20SHARE%20CAPITAL) This note outlines share capital, detailing changes in issued and outstanding ordinary shares, including repurchases under the re-approved plan | Metric | June 30, 2025 | December 31, 2024 | |:---|:---|:---| | Ordinary shares issued and outstanding | 34,198,153 | 34,831,324 | | Repurchase of ordinary shares (H1 2025) | 357,278 | — | | Value of repurchased shares (H1 2025) | $5.0 million | — | - The Board re-approved a share repurchase plan until June 30, 2026, authorizing repurchases of up to **$25.0 million** of ordinary shares[67](index=67&type=chunk) [11. Share-Based Compensation](index=17&type=section&id=11.%20SHARE-BASED%20COMPENSATION) This note summarizes unvested restricted share awards and units activity for employees and directors, reporting total share-based compensation expense | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | |:---|:---|:---| | Total stock compensation expense | $2,500 | $2,900 | | Total fair value of Performance and Service RSs vested | $4,200 | $1,900 | | Total fair value of Performance and Service RSUs vested | $1,400 | $700 | [12. Earnings Per Share](index=19&type=section&id=12.%20EARNINGS%20PER%20SHARE) This note reconciles net income and weighted average shares for basic and diluted EPS for the three and six months ended June 30, 2025 and 2024 | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | |:---|:---|:---| | Basic EPS | $0.01 | $0.23 | | Diluted EPS | $0.01 | $0.23 | | Weighted average shares outstanding - basic | 33,969,716 | 34,238,863 | | Weighted average shares outstanding - diluted | 34,423,679 | 34,699,182 | | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | |:---|:---|:---| | Basic EPS | $0.88 | $1.02 | | Diluted EPS | $0.87 | $1.01 | | Weighted average shares outstanding - basic | 33,960,643 | 34,255,454 | | Weighted average shares outstanding - diluted | 34,479,351 | 34,679,325 | [13. Net Investment Income](index=19&type=section&id=13.%20NET%20INVESTMENT%20INCOME) This note breaks down net investment income, including interest, dividends, Lloyd's income, other investment gains/losses, and Solasglas' net income (loss) | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | |:---|:---|:---| | Net investment income | $10,470 | $10,948 | | Share of Solasglas' net income (loss) | $(18,276) | $4,330 | | Total investment income (loss) | $(7,806) | $15,278 | | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | |:---|:---|:---| | Net investment income | $18,757 | $24,126 | | Share of Solasglas' net income (loss) | $13,921 | $22,578 | | Total investment income (loss) | $32,678 | $46,704 | [14. Related Party Transactions](index=19&type=section&id=14.%20RELATED%20PARTY%20TRANSACTIONS) This note details agreements with DME Advisors for investment advisory, investor relations, and collateral asset management, and Solasglas' investment in Green Brick Partners - The company has an investment advisory agreement with Solasglas, managed by DME Advisors[78](index=78&type=chunk) - A service agreement with DME Advisors provides investor relations services for **$5,000 per month**[81](index=81&type=chunk) - A collateral assets investment management agreement with DME Advisors manages certain company assets without fees[82](index=82&type=chunk) - Solasglas, along with DME Advisors affiliates, collectively owned **23.5%** of Green Brick Partners, Inc. (GRBK) common shares at June 30, 2025[79](index=79&type=chunk) [15. Commitments and Contingencies](index=20&type=section&id=15.%20COMMITMENTS%20AND%20CONTINGENCIES) This note addresses credit risk concentrations in cash, investments, and reinsurance balances, and mentions lease obligations and litigation with no material adverse effects expected | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | |:---|:---|:---| | Premiums receivable | $273,902 | $253,627 | | Funds held by cedants | $51,402 | $58,183 | | Funds at Lloyd's | $112,732 | $113,324 | | Reinsurance balances receivable, net | $755,296 | $704,483 | - Reinsurance balances receivable increased by **$50.8 million (7.2%)** to **$755.3 million** at June 30, 2025, driven by increased premiums receivable and funds withheld[174](index=174&type=chunk) - The company does not believe any existing legal dispute will have a material adverse effect on its business, financial condition, or operating results[89](index=89&type=chunk) [16. Segment Reporting](index=21&type=section&id=16.%20SEGMENT%20REPORTING) This note provides financial information for Open Market, Innovations, and Corporate segments, detailing gross premiums, net premiums earned, and underwriting results - The company operates in two segments: Open Market (treaty reinsurance via brokers and Lloyd's) and Innovations (reinsurance capacity to startups/MGAs, including Syndicate 3456)[91](index=91&type=chunk)[92](index=92&type=chunk) | Metric (Q2 2025, in thousands) | Open Market | Innovations | Corporate | Total Consolidated | |:---|:---|:---|:---|:---| | Gross premiums written | $152,333 | $27,596 | $(301) | $179,628 | | Net premiums earned | $140,554 | $21,386 | $(299) | $161,641 | | Underwriting income (loss) | $11,194 | $(1,490) | $(1,595) | $8,109 | | Metric (H1 2025, in thousands) | Open Market | Innovations | Corporate | Total Consolidated | |:---|:---|:---|:---|:---| | Gross premiums written | $373,042 | $55,062 | $(531) | $427,573 | | Net premiums earned | $290,195 | $40,391 | $(482) | $330,104 | | Underwriting income (loss) | $2,245 | $(425) | $(1,505) | $315 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's discussion and analysis of financial condition and results of operations for Q2 and H1 2025, including overview, outlook, segment analysis, liquidity, and capital resources [Overview](index=27&type=section&id=Overview) The overview introduces Greenlight Capital Re and summarizes Q2 2025 performance, noting decreased net income due to investment losses, partially offset by improved underwriting - Net income for Q2 2025 was **$0.3 million**, a **$7.6 million decrease** from Q2 2024, mainly due to an investment loss from Solasglas[108](index=108&type=chunk) - Fully diluted book value per share increased by **5.7%** to **$18.97** at June 30, 2025, from December 31, 2024[109](index=109&type=chunk) | Metric (Q2 2025) | Value | Change vs Q2 2024 | |:---|:---|:---| | Gross premiums written | $179.6 million | +6.3% | | Net premiums earned | $161.6 million | +2.0% | | Net underwriting income | $8.1 million | vs $0.3 million | | Current period CAT losses | Nil | vs $7.7 million | | Prior year adverse loss development | $3.0 million | vs $0.7 million favorable | | Total investment loss | $7.8 million | vs $15.3 million income | | Diluted EPS | $0.01 | vs $0.23 | [Business Overview](index=27&type=section&id=Business%20Overview) The company reiterates its core business as a global specialty property and casualty reinsurer, focused on delivering risk management solutions and shareholder value - Greenlight Capital Re is a **global specialty property and casualty reinsurer** headquartered in the Cayman Islands[107](index=107&type=chunk) - The company aims to build long-term shareholder value by providing risk management solutions to the insurance, reinsurance, and other risk marketplaces[107](index=107&type=chunk) [Outlook and Trends](index=27&type=section&id=Outlook%20and%20Trends) Increased competition in the Open Market segment leads to rate pressure, while persistent inflation and an uncertain global economic outlook prompt a bearish repositioning of Solasglas' investment portfolio - Increased competition in the Open Market segment is putting pressure on headline rates, though attachment points and other terms & conditions remain largely firm[110](index=110&type=chunk) - Inflationary trends are expected to persist, and the company continues to assess their impact on its underwriting portfolio[111](index=111&type=chunk) - DME Advisors pivoted Solasglas' investment portfolio from conservatively positioned to bearish in Q1 2025, maintaining this stance in Q2 2025 by lowering gross/net exposure and adding market hedges[111](index=111&type=chunk) - Aggressive U.S. trade policies have introduced additional uncertainty and volatility to the economic outlook[112](index=112&type=chunk) [Key Financial Measures and Non-GAAP Measures](index=28&type=section&id=Key%20Financial%20Measures%20and%20Non-GAAP%20Measures) This section confirms no changes to key financial measures, including non-GAAP, and reconciles fully diluted to basic book value per share, showing an increase - There have been no changes to the company's key financial measures, including non-GAAP financial measures, as described in the 2024 Form 10-K[114](index=114&type=chunk) | Metric | June 30, 2025 | December 31, 2024 | Increase (decrease) | |:---|:---|:---|:---| | Basic book value per share | $19.40 | $18.26 | $1.14 (5.9%) | | Fully diluted book value per share | $18.97 | $17.95 | $1.02 (5.7%) | [Consolidated Results of Operations](index=29&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated results show a significant net income decrease for Q2 and YTD 2025, driven by Solasglas investment losses and higher CAT losses, partially offset by improved underwriting | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (in thousands) | |:---|:---|:---|:---| | Net underwriting income | $8,109 | $333 | $7,776 | | Income from investment in Solasglas | $(18,276) | $4,330 | $(22,606) | | Foreign exchange gains (losses) | $6,271 | $(932) | $7,203 | | Net income | $329 | $7,978 | $(7,649) | | Diluted earnings per share | $0.01 | $0.23 | $(0.22) | | Combined ratio | 95.0% | 99.9% | -4.9 pts | | Metric | YTD 2025 (in thousands) | YTD 2024 (in thousands) | Change (in thousands) | |:---|:---|:---|:---| | Net underwriting income | $315 | $3,718 | $(3,403) | | Income from investment in Solasglas | $13,921 | $22,578 | $(8,657) | | Foreign exchange gains (losses) | $10,626 | $(2,581) | $13,207 | | Net income | $29,956 | $34,997 | $(5,041) | | Diluted earnings per share | $0.87 | $1.01 | $(0.14) | | Combined ratio | 99.9% | 98.9% | +1.0 pts | - The definition of CAT event loss was updated to any individual CAT event loss of **$5 million or more**, net of reinsurance recoveries, with prior year disclosures recast to conform[118](index=118&type=chunk) [Results by Segment](index=31&type=section&id=Results%20by%20Segment) This section analyzes financial performance for Open Market, Innovations, Corporate runoff, and Solasglas investment income, highlighting segment-specific drivers for premiums, losses, and underwriting [Open Market Segment](index=31&type=section&id=Open%20Market%20Segment) Open Market segment saw increased premiums for Q2 and YTD 2025; Q2 underwriting income improved, but YTD income decreased due to lower investment income and higher CAT losses | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (in thousands) | |:---|:---|:---|:---| | Gross premiums written | $152,333 | $143,311 | $9,022 (6.3%) | | Net premiums earned | $140,554 | $125,865 | $14,689 (11.7%) | | Underwriting income | $11,194 | $7,368 | $3,826 | | Combined ratio | 92.0% | 94.1% | -2.1 pts | | Loss ratio | 59.4% | 58.3% | +1.1 pts | | Metric | YTD 2025 (in thousands) | YTD 2024 (in thousands) | Change (in thousands) | |:---|:---|:---|:---| | Gross premiums written | $373,042 | $330,372 | $42,670 (12.9%) | | Net premiums earned | $290,195 | $257,475 | $32,720 (12.7%) | | Underwriting income | $2,245 | $12,345 | $(10,100) | | Combined ratio | 99.2% | 95.2% | +4.0 pts | | Loss ratio | 67.6% | 62.2% | +5.4 pts | - YTD 2025 current year loss ratio increased by **4.6 points**, mainly due to **$27.0 million** in CAT losses from California wildfires, compared to **$10.0 million** in YTD 2024[135](index=135&type=chunk) - Income before income taxes for YTD 2025 decreased to **$13.6 million** from **$34.7 million** in YTD 2024, primarily due to lower investment income and higher CAT losses[143](index=143&type=chunk) [Innovations Segment](index=35&type=section&id=Innovations%20Segment) Innovations segment reported increased Q2 gross premiums but YTD decrease, with underwriting losses and overall losses driven by higher expenses and loss ratio from reserve strengthening | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (in thousands) | |:---|:---|:---|:---| | Gross premiums written | $27,596 | $25,319 | $2,277 (9.0%) | | Net premiums earned | $21,386 | $25,348 | $(3,962) (-15.6%) | | Underwriting income (loss) | $(1,490) | $2,313 | $(3,803) | | Combined ratio | 107.0% | 90.9% | +16.1 pts | | Loss ratio | 71.3% | 53.8% | +17.5 pts | | Metric | YTD 2025 (in thousands) | YTD 2024 (in thousands) | Change (in thousands) | |:---|:---|:---|:---| | Gross premiums written | $55,062 | $55,387 | $(325) (-0.6%) | | Net premiums earned | $40,391 | $45,545 | $(5,154) (-11.3%) | | Underwriting income (loss) | $(425) | $2,469 | $(2,894) | | Combined ratio | 101.1% | 94.6% | +6.5 pts | | Loss ratio | 63.4% | 58.8% | +4.6 pts | - Prior year reserve development ratio increased by **18.3 points** in Q2 2025 and **8.5 points** in YTD 2025, driven by reserve strengthening in the financial line due to higher claim volume[157](index=157&type=chunk) - Loss before income taxes for YTD 2025 was **$(720)K**, compared to income of **$1,252K** in YTD 2024, due to weaker underwriting performance from increased expenses and higher loss ratio[161](index=161&type=chunk) [Other Corporate](index=37&type=section&id=Other%20Corporate) This section covers runoff underwriting, with decreased net premiums and losses, and Solasglas' investment performance, showing a Q2 loss but YTD gain [Runoff Underwriting Business](index=37&type=section&id=Runof%20Underwriting%20Business) Non-renewal of an Innovations-related property contract led to decreased net premiums earned and underwriting losses for Q2 and YTD 2025, including adverse reserve development - The non-renewal of an Innovations-related property business contract decreased consolidated net premiums earned by **$7.5 million** in Q2 2025 and **$17.4 million** in YTD 2025[162](index=162&type=chunk) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | |:---|:---|:---| | Underwriting loss | $(1,600) | $(9,300) | | Prior year adverse reserve development | $1,500 | $900 | | Metric | YTD 2025 (in thousands) | YTD 2024 (in thousands) | |:---|:---|:---| | Underwriting loss | $(1,500) | $(11,100) | | Prior year adverse reserve development | $1,300 | $4,800 | [Income from Investment in Solasglas](index=38&type=section&id=Income%20from%20Investment%20in%20Solasglas) Solasglas reported a **4.0% net investment loss** for Q2 2025 but a **2.9% net gain** for YTD 2025, driven by gold, Kyndryl, and S&P 500 short positions | Metric | Q2 2025 | Q2 2024 | |:---|:---|:---| | Net investment return (loss) | (4.0)% | 1.2% | | Long portfolio gains (losses) | 1.2% | (1.0)% | | Short portfolio gains (losses) | (8.9)% | 1.6% | | Macro gains (losses) | 3.5% | 0.9% | | Metric | YTD 2025 | YTD 2024 | |:---|:---|:---| | Net investment return (loss) | 2.9% | 6.4% | | Long portfolio gains (losses) | (0.2)% | 3.4% | | Short portfolio gains (losses) | (4.2)% | 1.7% | | Macro gains (losses) | 8.2% | 2.9% | - Significant contributors to Solasglas' investment return for Q2 and YTD 2025 were long positions in **gold** and **Kyndryl Holdings (KD)**, and a short position in the **S&P 500 index**[165](index=165&type=chunk)[166](index=166&type=chunk) [Financial Condition](index=39&type=section&id=Financial%20Condition) The company's financial condition at June 30, 2025, shows increased total investments and gross loss/LAE reserves, reduced debt, and increased PML estimates | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | |:---|:---|:---|:---| | Total investments | $537,301 | $460,304 | $76,997 (16.7%) | | Investment in Solasglas | $461,265 | $387,144 | $74,121 (19.1%) | | Restricted cash and cash equivalents | $576,700 | $584,400 | $(7,700) (-1.3%) | | Reinsurance balances receivable | $755,300 | $704,500 | $50,800 (7.2%) | | Total gross loss and LAE reserves | $945,000 | $861,000 | $84,000 (9.8%) | | Total debt | $58,900 | $60,700 | $(1,800) (-3.1%) | | Total shareholders' equity | $663,300 | $635,900 | $27,400 (4.3%) | | Peril (July 1, 2025) | Net 1-in-250 Year Return Period Single Event Loss (in thousands) | Net 1-in-250 Year Return Period Aggregate Loss (in thousands) | |:---|:---|:---| | North Atlantic Hurricane | $132,534 | $145,809 | | North America Earthquake | $126,814 | $127,708 | | Europe Windstorm | $68,621 | $73,912 | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses liquidity and capital structure, highlighting increased operating cash flow, decreased investing/financing cash usage, debt-to-equity ratio, and share changes [Liquidity](index=41&type=section&id=Liquidity) The company's liquidity significantly improved in YTD 2025, with increased operating cash flow and reduced cash usage in investing and financing activities | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | |:---|:---|:---| | Total cash provided by (used in) operating activities | $78,819 | $40,669 | | Total cash provided by (used in) investing activities | $(62,932) | $(70,246) | | Total cash provided by (used in) financing activities | $(6,875) | $(11,876) | | Net cash inflows (outflows) | $9,973 | $(41,560) | | Cash, end of period | $659,060 | $614,170 | - The **$38.2 million** increase in cash from operating activities in YTD 2025 was driven by the ebb and flow of underwriting activities[185](index=185&type=chunk) - Cash used in investing activities decreased by **$7.3 million** due to lower net contributions to Solasglas[186](index=186&type=chunk) - Cash used in financing activities decreased due to **$5.0 million** in share repurchases in YTD 2025, compared to none in YTD 2024, and a smaller repayment of Term Loans[187](index=187&type=chunk) [Capital Resources](index=42&type=section&id=Capital%20Resources) The company's capital structure shows an **8.9% debt-to-shareholders' equity ratio**, with decreased ordinary shares due to repurchases, and sufficient capital for future operations | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | |:---|:---|:---| | Term Loans - outstanding principal | $58,438 | $60,313 | | Shareholders' equity | $663,318 | $635,879 | | Ratio of debt to shareholders' equity | 8.9% | 9.5% | - Ordinary shares outstanding decreased by **633,171** to **34,198,153** at June 30, 2025, primarily due to share repurchases and forfeited performance restricted stock awards[189](index=189&type=chunk) - The company expects its existing capital base and internally generated funds to be sufficient to implement its business strategy for the foreseeable future[189](index=189&type=chunk) [Critical Accounting Estimates](index=42&type=section&id=Critical%20Accounting%20Estimates) This section identifies critical accounting estimates, including premium revenues, loss/LAE reserves, investment impairments, credit loss allowances, and share-based compensation, noting potential material differences - The most significant estimates relate to premium revenues and risk transfer, loss and loss adjustment expense reserves, investment impairments, allowances for credit losses, and share-based compensation[192](index=192&type=chunk) - These estimates are inherently subjective, and actual events or results could differ materially from underlying assumptions, potentially impacting financial results[192](index=192&type=chunk) [Recent Accounting Pronouncements](index=43&type=section&id=Recent%20Accounting%20Pronouncements) No recently issued accounting pronouncements not yet adopted are expected to materially impact the company's financial results as of June 30, 2025 - No recently issued accounting pronouncements not yet adopted are expected to have a material impact on the company's financial results as of June 30, 2025[194](index=194&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details the company's exposure to equity price, commodity price, foreign currency, and interest rate risks, with hypothetical impact scenarios on its investment portfolio - At June 30, 2025, a **10% decline** in the price of underlying listed equity securities and equity-based derivative instruments would result in a **$0.5 million** unrealized gain on the investment in Solasglas, as SILP was net short[196](index=196&type=chunk) | Commodity (June 30, 2025) | 10% increase in prices (in millions) | 10% decrease in prices (in millions) | |:---|:---|:---| | Gold | $9.1 | $(7.7) | | Copper | $3.2 | $(1.6) | | Uranium | $0.5 | $(0.5) | | Crude oil | $0.1 | $(0.1) | | Total | $12.9 | $(9.9) | - A **10% increase** in the value of the U.S. dollar against foreign currencies (mostly Euro) would result in a **$3.0 million** unrealized loss on the investment in Solasglas[199](index=199&type=chunk) | Currency (June 30, 2025) | Net Asset (Liability) Exposure | 10% increase in currency rate (in thousands) | 10% decrease in currency rate (in thousands) | |:---|:---|:---|:---| | British Pound | £107,409 | $(14,758) | $14,758 | | Euro | €(11,796) | $1,391 | $(1,391) | | Total foreign exchange gain (loss) | | $(13,367) | $13,367 | - A **100 basis points increase** in interest rates would result in a **$19.6 million** unrealized loss on the investment in Solasglas due to interest rate derivatives[201](index=201&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) This section confirms the effectiveness of disclosure controls and procedures as of June 30, 2025, acknowledging inherent limitations, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[202](index=202&type=chunk) - Control systems provide only reasonable, not absolute, assurance, and can be subject to inherent limitations such as faulty judgments, simple errors, circumvention by individuals, collusion, or management override[203](index=203&type=chunk)[204](index=204&type=chunk) - There have been no material changes to the company's internal control over financial reporting during the fiscal quarter ended June 30, 2025[205](index=205&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) The company is routinely involved in legal disputes but does not anticipate any existing dispute to materially adversely affect its business or financial condition - The company may be involved in formal and informal dispute resolution procedures, including arbitration or litigation, in the ordinary course of business[207](index=207&type=chunk) - Management does not believe that any existing dispute, when finally resolved, will have a material adverse effect on the company's business, financial condition, or operating results[207](index=207&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20RISK%20FACTORS) This section refers to risk factors in the 2024 Form 10-K and confirms no other material changes as of June 30, 2025 - Factors that could cause actual results to differ materially are described in "Part I. Item 1A. Risk Factors" of the 2024 Form 10-K[208](index=208&type=chunk) - As of June 30, 2025, there have been no other material changes to the risk factors disclosed in the 2024 Form 10-K[209](index=209&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section refers to Note 10 for share repurchase plan details and summarizes ordinary shares repurchased during Q2 2025 - The company repurchased **357,278 ordinary shares** for a total of **$5.0 million** at an average price of **$13.99 per share** during the three months ended June 30, 2025[211](index=211&type=chunk) - As of June 30, 2025, **$20,000,012** remained available under the publicly announced share repurchase program[211](index=211&type=chunk) [Item 3. Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon senior securities for the period - There were no defaults upon senior securities[212](index=212&type=chunk) [Item 4. Mine Safety Disclosures](index=46&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - Mine Safety Disclosures are not applicable to the company[213](index=213&type=chunk) [Item 5. Other Information](index=47&type=section&id=Item%205.%20OTHER%20INFORMATION) This section discusses Rule 10b5-1 Trading Plans and confirms no such insider trading arrangements were in place for directors and officers during Q2 2025 - Directors and executive officers may purchase or sell ordinary shares through Rule 10b5-1 Trading Plans, which pre-establish trade amounts, prices, and dates[215](index=215&type=chunk) - During the three months ended June 30, 2025, no Rule 10b5-1 trading arrangements or "non-Rule 10b5-1 arrangements" were in place for the company's directors and officers[216](index=216&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20EXHIBITS) This section lists all exhibits filed with Form 10-Q, including CEO/CFO certifications and financial statements formatted in Inline XBRL - Exhibits include certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[217](index=217&type=chunk) - The Condensed Consolidated Financial Statements are formatted in Inline XBRL (Extensible Business Reporting Language)[217](index=217&type=chunk) SIGNATURES [Signatures](index=48&type=section&id=SIGNATURES) This section contains the official signatures of the company's Director, CEO, and CFO, certifying the report filing on behalf of Greenlight Capital Re, Ltd - The report was signed by Gregory Richardson, Director and Chief Executive Officer, and Faramarz Romer, Chief Financial Officer, on August 4, 2025[220](index=220&type=chunk)

Core Insights - Greenlight Capital Re reported a combined ratio of 95.0% for Q2 2025, a significant improvement from 99.9% in Q2 2024, indicating enhanced underwriting performance [4][10][11] - The company returned $5 million to shareholders through share buybacks, reflecting its commitment to capital management and shareholder value [2][4] - Despite a 4.0% loss in the Solasglas investment portfolio, the company achieved a net income of $0.3 million for Q2 2025, down from $8.0 million in the same quarter last year [2][4][11] Financial Performance - Gross premiums written increased by 6.3% to $179.6 million in Q2 2025, while net premiums earned rose by 2.0% to $161.6 million [4][10] - The net underwriting income for Q2 2025 was $8.1 million, compared to $0.3 million in Q2 2024, showcasing improved operational efficiency [4][10] - Total investment loss for Q2 2025 was $7.8 million, a decline from total investment income of $15.3 million in the previous year [4][10] Shareholder Value - The fully diluted book value per share increased by 0.5% to $18.97 as of June 30, 2025, up from $18.87 at the end of Q1 2025 [4][10] - The company repurchased $5.0 million of shares at an average cost of $13.99 per share, demonstrating a proactive approach to enhancing shareholder returns [4][10] Segment Performance - For the first half of 2025, gross premiums written rose by 10.7% to $427.6 million, and net premiums earned increased by 3.2% to $330.1 million [4][10] - The combined ratio for the first half of 2025 was 99.9%, slightly worse than 98.9% in the same period of 2024, indicating some challenges in underwriting profitability [4][10] - The net income for the first half of 2025 was $30.0 million, or $0.87 per diluted ordinary share, compared to $35.0 million, or $1.01 per diluted ordinary share, in the prior year [4][10]

Core Viewpoint - Greenlight Capital Re, Ltd. is set to release its financial results for Q2 and the first half of 2025 on August 4, 2025, with a conference call scheduled for August 5, 2025, to discuss these results [1]. Group 1: Financial Results Announcement - The company will announce its financial results for the second quarter and six months ended June 30, 2025, after market close on August 4, 2025 [1]. - A live conference call to discuss the financial results will take place on August 5, 2025, at 9:00 a.m. Eastern Time [1]. Group 2: Conference Call Details - Participants can join the conference call by dialing U.S. toll-free 1-877-407-9753 or international 1-201-493-6739 [2]. - The conference call will also be accessible via webcast [2]. - A telephone replay will be available until August 11, 2025, with specific dialing instructions provided for access [2]. Group 3: Company Overview - Greenlight Re provides multiline property and casualty insurance and reinsurance through its licensed entities in the Cayman Islands and Ireland, as well as its Lloyd's platform [3]. - The company employs a non-traditional investment approach aimed at achieving higher long-term returns compared to traditional reinsurance investment strategies [3]. - Greenlight Re Innovations supports technology innovators in the (re)insurance sector by offering investment capital, risk capacity, and access to a broad insurance network [3].

Group 1 - The individual has a background in engineering and has filed 7 patents, indicating a strong technical foundation [1] - The individual started a hedge fund from scratch and has maintained a long-term presence in the investment community for 20 years [1] - The investment philosophy focuses on identifying top-tier management and businesses with sustainable competitive advantages and catalysts for earnings growth [1] Group 2 - The individual is a regular guest speaker at the finance department of Iowa State University, suggesting engagement with the academic community [1]

Financial Data and Key Metrics Changes - The company reported net income of $29.6 million in Q1 2025, an increase from $27 million in Q1 2024, equating to $0.86 per diluted share compared to $0.78 per diluted share in the previous year [19] - Fully diluted book value per share increased by 8.5% to $18.87 from the first quarter of 2024 [23] - The underwriting loss was $7.8 million, resulting in a combined ratio of 104.6% [6][19] Business Line Data and Key Metrics Changes - The open market segment grew net written premiums by 16.6%, but suffered a pretax loss of $3.2 million primarily due to California wildfires, leading to a combined ratio of 106% compared to 96.2% in the same period last year [20][21] - The innovation segment reported a pretax income of $900,000 with a combined ratio improving to 94.3% from 99.3% year-over-year, although net written premiums decreased by 8.7% [22] Market Data and Key Metrics Changes - The Solace class portfolio returned 7.2% in Q1 2025, outperforming the S&P 500 Index, which declined by 4.3% [6][13] - The largest positive contributors to the portfolio included investments in Gold, Brighthouse Financial, and LANXESS, while Core Natural Resources and Penn Entertainment were the largest detractors [13][16] Company Strategy and Development Direction - The company is shifting its approach to casualty business, focusing on the innovations channel for better data access and control, which may lead to a temporary contraction in the casualty book [10] - The company is also overhauling its portfolio mix to advance its dual-engine strategy [18] Management's Comments on Operating Environment and Future Outlook - Management noted that inflationary pressures could increase loss costs, while an economic slowdown might reduce exposure [8] - There is concern about a significant economic slowdown in the U.S. driven by reduced consumer spending, prompting a pivot from conservative to bearish positioning [17] Other Important Information - The company recorded a net wildfire loss of $23.6 million related to California wildfires, contributing 14 combined ratio points [7] - A change in financial statement disclosures was highlighted, breaking out the innovations segment for the first time [11] Q&A Session Summary Question: No questions were raised during the Q&A session - The operator noted that there were no questions at this time and provided contact information for follow-up inquiries [24]

Financial Data and Key Metrics Changes - The company reported a net income of $29.6 million in Q1 2025, an increase from $27 million in Q1 2024, resulting in a fully diluted book value per share increase of 5.1% in the quarter [5][19] - The underwriting loss for the quarter was $7.8 million, leading to a combined ratio of 104.6% [5][19] - Catastrophe losses from the California wildfires added 14 percentage points to the combined ratio [19] Business Line Data and Key Metrics Changes - The open market segment grew net written premiums by 16.6%, but suffered a pretax loss of $3.2 million primarily due to the California wildfires [20] - The open market combined ratio was 106% compared to 96.2% for the same period in 2024, with the current year attritional loss ratio improving by 1.3 percentage points to 54% [21] - The innovation segment reported a pretax income of $900,000 with a combined ratio improving to 94.3% from 99.3% year-over-year [22] Market Data and Key Metrics Changes - The Solace Glass Fund returned 7.2% in Q1 2025, outperforming the S&P 500 Index, which declined by 4.3% [12] - The largest positive contributors to the fund were investments in Gold, Brighthouse Financial, and LANXESS, while Core Natural Resources and Penn Entertainment were the largest detractors [12][15] Company Strategy and Development Direction - The company is shifting its approach to accessing casualty MGA business, focusing on the innovations channel for better data access and control, which may lead to a short-term contraction in the casualty book [8] - The company is overhauling its portfolio mix to advance its dual-engine strategy [17] Management's Comments on Operating Environment and Future Outlook - Management noted that inflationary pressures could increase loss costs, while an economic slowdown might reduce exposure [6] - There is a concern about a significant economic slowdown in the U.S. due to reduced consumer spending, prompting a pivot from conservative to bearish positioning [16] Other Important Information - The company strengthened its historical casualty reserves by $22 million during the quarter, mainly related to underwriting years 2014 to 2019 [10] - The company ended Q1 2025 with a fully diluted book value per share of $18.87, an increase of 8.5% from Q1 2024 [23] Q&A Session Summary Question: No questions were raised during the Q&A session - The operator noted that there were no questions at this time and provided contact information for follow-up inquiries [24]