Greenlight Re(US:GLRE)2025-05-07 20:52Financial Performance - For Q1 2025, net income was $29.6 million, an increase of $2.6 million compared to Q1 2024, primarily due to strong performance from the investment in Solasglas[105]. - Gross premiums written increased by 14.1% to $247.9 million, while net premiums earned rose by 4.3% to $168.5 million[110]. - The net underwriting loss was $7.8 million, a decline from a net underwriting income of $3.4 million in Q1 2024[110]. - Total investment income increased by $9.1 million to $40.5 million, with a net return of 7.2% from the investment in Solasglas compared to 5.2% in Q1 2024[110]. - Fully diluted book value per share increased by 5.1% to $18.87 as of March 31, 2025, from $17.95 at December 31, 2024[106]. Underwriting and Loss Ratios - The combined ratio increased to 104.6% in Q1 2025 from 97.9% in Q1 2024, reflecting higher underwriting losses[114]. - Current year CAT losses, net of reinsurance, were $27.0 million, up from $12.4 million in Q1 2024[110]. - The attritional loss ratio improved to 54.4% in Q1 2025 from 56.6% in Q1 2024[114]. - The loss ratio for Q1 2025 was 75.4%, an increase of 9.5 percentage points from 65.9% in Q1 2024, primarily due to higher catastrophe losses[124]. - Catastrophe losses in Q1 2025 amounted to $27.0 million, significantly higher than $12.4 million in Q1 2024, mainly related to California wildfires[125]. Premiums and Growth - Gross premiums written increased by $33.6 million or 18.0% to $220.7 million in Q1 2025 compared to Q1 2024[120]. - Net premiums written rose by $27.9 million or 16.6% to $195.6 million in Q1 2025, driven by a 56.9% increase in casualty and 30.1% increase in multiline[122][121]. - Net premiums earned increased by $18.0 million or 13.7% to $149.6 million in Q1 2025, with notable growth in casualty (18.3%) and specialty (23.9%) lines[123]. Investment and Equity - Total investments increased by $48.3 million, or 10.5%, to $508.6 million as of March 31, 2025, primarily driven by net contributions into Solasglas and net investment returns[150]. - Total shareholders' equity increased by $30.9 million to $666.8 million as of March 31, 2025, primarily due to net income of $29.6 million for the period[163]. Segment Performance - Income before income taxes for the Open Market segment was a loss of $3.2 million in Q1 2025, down from a profit of $17.6 million in Q1 2024, largely due to increased catastrophe losses[130]. - Income before income taxes for the Innovations segment was $0.9 million in Q1 2025, compared to a loss of $0.6 million in Q1 2024, driven by increased underwriting income and net investment income[143]. - The Innovations segment reported a decrease in gross premiums written by $2.6 million or 8.7% to $27.5 million in Q1 2025, primarily due to lower premiums from Syndicate 3456[132]. Risk and Accounting - The company adjusted its risk appetite to a more cautious stance toward the casualty business in the Open Market segment due to increased competition[107]. - The company continues to rely on critical accounting estimates related to premium revenues, loss reserves, and share-based compensation, which could materially affect financial results if actual events differ from assumptions[173]. - There were no recently issued accounting pronouncements expected to materially impact the company's financial results as of March 31, 2025[175]. Market Risks - As of March 31, 2025, a 10% decline in the price of equity securities held by Solasglas would result in an unrealized loss of $8.2 million, compared to $13.9 million as of December 31, 2024[177]. - A 10% increase in commodity prices would lead to a total unrealized gain of $13.7 million, while a 10% decrease would result in a loss of $12.7 million as of March 31, 2025[179]. - The impact of a 10% increase in the value of the U.S. dollar against foreign currencies would result in an unrealized loss of $2.8 million on Solasglas' investments, up from $0.2 million as of December 31, 2024[180]. - A 100 basis points increase in interest rates would lead to an unrealized loss of $16.6 million on interest rate derivatives held by Solasglas, compared to $0.2 million as of December 31, 2024[181]. - The company has not reported any material changes in market risk disclosures since December 31, 2024, except for specific updates on equity price and commodity price risks[176].