GLRE 10-K & 10-Q changes, risk factors and insider trading
Greenlight Capital Re, Ltd. · Nasdaq · Fire, Marine & Casualty Insurance · CIK 1385613 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
Largest changes
“Substantially all of our assumed reinsurance contracts contain provisions that permit our clients to cancel the contract or require additional collateral in the event of a downgrade in our A.M. Best ratings below specified levels or a reduction of our capital or surplus below specified levels over the course of the agreement. Contracts containing such cancellation rights represented approximately 37% of gross premiums written during 2024. Additional collateral in the event of a downgrade in our A.M. Best ratings would be approximately $134.6 million at December 31, 2024.”see in full comparison
“Certain of our reinsurance operations expose us to claims arising out of unpredictable catastrophic events, including losses from severe weather and other natural catastrophes and man-made disasters such as acts of war or terrorism. The incidence and severity of catastrophes are inherently unpredictable, with climate change continuing to add to that inherent unpredictability as well as increasing the frequency and severity of events. …”see in full comparison
“Certain of our reinsurance operations expose us to claims arising out of unpredictable catastrophic events, including losses from severe weather and other natural catastrophes and man-made disasters such as acts of war or terrorism. The incidence and severity of catastrophes are inherently unpredictable, with climate change continuing to add to such unpredictability as well as increasing the frequency and severity of events. …”see in full comparison
“Substantially all of our assumed reinsurance contracts contain provisions that permit our clients to cancel the contract or require additional collateral in the event of a downgrade in our A.M. Best ratings below specified levels (generally below “A-”) or a reduction of our capital or surplus below specified levels over the course of the agreement.”see in full comparison
Our Innovations investments includesee in full comparisonprivateinvestmentsand unlisted equitiesinearly-stageprivateor start-up entitiesequities for which no active market may exist. We carry these investments on our consolidated balance sheets at cost, less impairment, plus or minus observable price changes (see “Critical Accounting Estimates - “Investments” under “Part II, Item 8. Management Discussion and Analysis of Financial Condition and Results of Operations”). These carrying values may differ significantly from those that would be used if we carried them at fair value. If we were required to liquidate all or a portion of these investments quickly, we could realize significantly less than the carrying value. The carrying value of our Innovations investments may become concentrated in a limited number of entities as a result of subsequent remeasurement and/or have significant exposure to certain geographic areas or economic sectors. The concentration of investments can increase investment risk and volatility. At December 31,2024,2025, our top five holdings accounted for70%53% of the total carrying value. Any of the foregoing could result in a decline in our investment performance and capital resources and, accordingly, could materially and adversely affect our financial results and results of operations. Refer to “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Innovations Segment” for total impairment charge in 2025.
“•there is generally little public information about these companies. These companies and their financial information are generally not subject to the Exchange Act and other regulations that govern public companies, and we may be unable to uncover all material information about these companies, which may prevent us from making a fully informed investment decision and cause us to lose money on our investments;”see in full comparison
Full comparison: every changed paragraph (42)
Greenlight Re’s A.M. Best rating of “A- (Excellent)” is the fourth highest of 15 financial strength ratings that A.M. Best issues. In October 2024, A.M. Best revised Greenlight Re’s outlooks to positive from stable. A.M. Best periodically reviews our ratings and may revise one or more of our ratings downward or revoke them at its sole discretion based primarily on its analysis of our balance sheet strength, operating performance, and business profile. Potential developments that may affect such an analysis include:
Substantially all of our assumed reinsurance contracts contain provisions that permit our clients to cancel the contract or require additional collateral in the event of a downgrade in our A.M. Best ratings below specified levels or a reduction of our capital or surplus below specified levels over the course of the agreement. Contracts containing such cancellation rights represented approximately 37% of gross premiums written during 2024. Additional collateral in the event of a downgrade in our A.M. Best ratings would be approximately $134.6 million at December 31, 2024.
Certain of our reinsurance operations expose us to claims arising out of unpredictable catastrophic events, including losses from severe weather and other natural catastrophes and man-made disasters such as acts of war or terrorism. The incidence and severity of catastrophes are inherently unpredictable, with climate change continuing to add to such unpredictability as well as increasing the frequency and severity of events. To the extent climate change produces extreme changes in temperatures and weather patterns, it could impact the frequency or severity of weather including, but not limited to, hurricanes, tornadoes, freezes, droughts, other storms, and wildfires. These changes in weather patterns could also affect the frequency and severity of other natural catastrophe events to which we may be exposed. Further, such catastrophes could impact the affordability and availability of homeowners insurance, which could impact pricing. Additionally, increases in the value and geographic concentration of insured property, particularly along coastal regions, could cause the cost of such losses to increase.
Additional capital may not be available on terms favorable to us, or at all. Increases in interest rates could result in higher interest expense on our outstanding debt. Further, any additional capital raised through the sale of equity could dilute existing ownership interest in our company and may cause the market price of our ordinary shares to decline. Additional capital raised through the issuance of debt may result in creditors having rights, preferences, and privileges senior or otherwise superior to those of our ordinary shares.
We cannot assure you that we will be able to continue to compete successfully in the reinsurance market. Our failure to continue to compete effectively could materially and adversely affect our financial condition and results of operations, and may increase the likelihood that we will be deemed a passive foreign investment company or an investment company. See “— Risks Relating to Taxation — United States persons who own ordinary shares may be subject to United States federal income taxation on our undistributed earnings and may recognize ordinary income upon disposition of ordinary shares.” and “—Risks Relating to Insurance and Other Regulations — We are subject to the risk of possibly becoming an investment company under U.S. federal securities law.”
Our results of operations and financial condition may be materially adversely affected by a challenging economic market, such as a highly inflationary environment. Inflation can be caused by any number of factors including, but not limited to, expansionary monetary policy and deficit spending by the government, a growing economy, rising wages, an imbalance of the supply and demand for goods, supply chain disruptions and the imposition of tariffs. Recently, for instance, the U.S. administration imposed and/or announced (and in some cases postponed or changed) tariffs on imports from various countries and on certain products, which may lead to unpredictable economic consequences including inflation or trade wars. Our operations are susceptible to inflation, and underestimating inflation levels could result in underpricing the risks we reinsure because premiums are established before the ultimate amounts of losses and LAE are known. While we consider the potential effects of inflation when setting premium rates, our premiums may not fully offset the ultimate effects of inflation. Additionally, our reserving models include assumptions about future payments for the settlement of claims and claims-handling expenses, such as the value of replacing property, associated labor costs for the property business we write, and litigation costs. The global inflationary environment in the last few years has resulted in an increase in our projected future claim costs, resulting in adverse loss reserve development. While the global inflationary pressures have abated from their recent highs, any subsequent increase in inflation may lead to an increase in our loss reserves with a corresponding reduction in net income in the period the deficiency is identified, which may have a material adverse effect on our results of operations and financial condition. Unanticipated higher inflation could also lead to higher interest rates, potentially negatively impacting the value of any rate-sensitive financial instruments held by Solasglas and could also impact our Innovations investments and cause us to incur higher interest expense on our debt. See “—Risks Related to Our Solasglas Investment Strategy” and “—Risks Related to Our Innovations Strategy.”
The effect of emergingEmerging claim and coverage issues onhave had and may continue to adversely impact our business isand uncertain.results.
The property and casualty reinsurance market may beis affected by cyclical trends.
A.M. Best’s current rating for Greenlight Re is “A (Excellent”) and the outlook is stable. A.M. Best periodically reviews our ratings and may revise one or more of our ratings downward or revoke them at its sole discretion based primarily on its analysis of our balance sheet strength, operating performance, and business profile. Potential developments that may affect such an analysis include:
Substantially all of our assumed reinsurance contracts contain provisions that permit our clients to cancel the contract or require additional collateral in the event of a downgrade in our A.M. Best ratings below specified levels (generally below “A-”) or a reduction of our capital or surplus below specified levels over the course of the agreement.
We believe that our modeling is critical to our business. We utilize modeling tools to facilitate the pricing, reserving, and risk management of our reinsurance portfolio. These models help us to control risk accumulation, inform management and other stakeholders of capital requirements and to improve the risk/return profile or minimize the amount of capital required to cover the risks in each reinsurance contract. However, given the inherent uncertainty of modeling techniques and the application of such techniques, these models and databases may not accurately address the emergence of a variety of matters that might be deemed to impact certain of our coverages. These models have been developed internally, and in some cases, they make use of third-party software. The construction of these models and the selection of assumptions require significant actuarial judgment. Furthermore, these models typically rely on either cedent or industry data, which may be incomplete or may be subject to errors. Accordingly, these models, and the assumptions and judgementsjudgments made in connection therewith, may understate the exposures we are assuming, and our financial results may be materially and adversely impacted.
Certain of our reinsurance operations expose us to claims arising out of unpredictable catastrophic events, including losses from severe weather and other natural catastrophes and man-made disasters such as acts of war or terrorism. The incidence and severity of catastrophes are inherently unpredictable, with climate change continuing to add to that inherent unpredictability as well as increasing the frequency and severity of events. To the extent climate change produces extreme changes in temperatures and weather patterns, it could impact the frequency or severity of weather including, but not limited to, hurricanes, tornadoes, freezes, droughts, other storms, and wildfires. These changes in weather patterns could also affect the frequency and severity of other natural catastrophe events to which we may be exposed. Further, such catastrophes could impact the affordability and availability of homeowners insurance, which could impact pricing. Additionally, increases in the value and geographic concentration of insured property, particularly along coastal regions, could cause the cost of such losses to increase.
A significant portion of our business is placed through brokered transactions (for Open Market segment) or direct placements (for Innovations segment). For the Open Market segment, our four largest brokers each accounted for more than 10% of our gross written premiums, and in the aggregate, they accounted for approximately 73.3%70.5% of the segment’s gross premiums written in 2024.2025. For the Innovations segment, we had twosix customercustomers that accounted for 37.8%53.6% of the segment’s gross premiums written in 2024.2025. Accordingly, we are exposed to concentration risk for both Open Market and Innovations segments. To lose or fail to expand all or a substantial portion of the business provided through brokers or direct customers could materially and adversely affect our business, financial condition and results of operations.
Our reinsurance balances receivable from brokers and cedents at December 31, 2024 totaled $704.5 million, which included premiums, ceding commissions receivable, and funds at Lloyd’s, a majority of which are not collateralized (see Part II, Item 8.
Our reinsurance balances receivable from brokers and cedents at December 31, 2025 totaled $664.4 million, which included premiums, funds withheld balances (including FAL), and profit commission receivable, a majority of which are not collateralized (see Part II, Item 8. Note 16.17. “Commitments and Contingencies” to the consolidated financial statements). We cannot provide assurance that such receivables will be collected or that valuation allowances or write-downs for uncollectible balances will not be required in future periods.
As part of our risk management, from time to time, we seek to purchase reinsurance for certain liabilities we reinsure to mitigate the effect of a potential concentration of losses upon our financial condition. At December 31, 2024,2025, total loss recoverables were $85.8$81.4 million, a majority of which arewere from highly-rated reinsurers and not collateralized (see Part II, Item 8. Note 89 “Retrocession” to the consolidated financial statements). The insolvency or inability or refusal of a retrocessionaire to make payments under the terms of its agreement with us could have an adverse effect on us because our obligations to our clients would remain.
As noted in “Part 1, Item 1. Business - Regulations”, we are required to provide letters of credit or collateral to jurisdictions in which we are not licensed or admitted as a reinsurer. In addition to the CIBC LOCLC facility entered in late 2023, we expanded the available letters of credit facilities by adding the Uncommitted HSBC LC Facility and the Uncommitted Citibank LC Facility in late 2024.2024 and the Citibank FAL Facility in 2025 (see Note 1610 “CommitmentsDebt and Contingencies - Letters of Credit and TrustsFacilities” of the consolidated financial statements). Neither theThe Uncommitted Citibank LC Facility nor theFacility, Uncommitted HSBC LC Facility and Citibank FAL Facility are anot committed facility,facilities, which means Citibank and HSBC can decide not to issue the LC under the respective facility when we attempt to draw upon it. In addition, we cannot assure you that we will be able to obtainincrease existing credit facilities or add additional credit facilities in the future on favorable terms or at all.
Compliance with Cayman Islands’ immigration requirements may adversely impact a company’s ability to meet its business goals. Under Cayman Islands law, specifically the Immigration (Transition) Act (as amended), no person may work in the Islands unless they are Caymanian, a permanent resident with the right to work (including a person married to, or in a civil partnership with, a Caymanian), the holder of a 25-year Residency Certificate that affords the right to work, or a work permit. It is a criminal offence to work or to employ someone without such authorisation.
Work permits are the most common form of employment authorisation for non-Caymanian workers. They are generally granted for periods of one to three years at a time, though the maximum length of time a worker may be granted work permits is nine years, after which they must leave the Islands for at least one year. All work permit holders who have resided legally in Cayman Islands for a continuous period of eight years have however the right to apply for permanent residence with the right to work, though if unsuccessful, must leave the Islands for at least one year.
Approval of work permits cannot be guaranteed: the employing company must first demonstrate before applying for a work permit, and before each subsequent renewal application, by way of advertising the position on a government jobs portal for fourteen days, that there is no qualified Caymanian or permanent resident available to fill the position. If it is considered that there is such a person available, the application will be refused. Further uncertainty is created by processing times for full work permit applications.
Reforms to immigration policy approved by Parliament in December 2025, and which are expected to come into effect later in 2026, aim to prioritize Caymanian employment, tighten employment mobility for foreign workers, and restructure aspects of the work permit system to enhance oversight and accountability. For businesses, this could mean higher compliance obligations, increased work permit-related costs, reduced flexibility in hiring and transferring employees from other jurisdictions, and longer processing times, all of which impacts strategic planning and business certainty.
Under Cayman Islands law, persons who are not Caymanian, do not possess Caymanian status, or are not otherwise entitled to reside and work in the Cayman Islands pursuant to provisions of the Immigration Act (as amended) of the Cayman Islands, which we refer to as the Immigration Act, may not engage in any gainful occupation in the Cayman Islands without an appropriate governmental work permit. Such a work permit may be granted or extended on a continuous basis for a maximum period of nine years (after having been legally and ordinarily resident in the Cayman Islands for a period of eight years a person may apply for permanent residence in accordance with the provisions of the Immigration Act) upon showing that, after proper public advertisement, no Caymanian or person of Caymanian status, or other person legally and ordinarily resident in the Cayman Islands who meets the minimum standards for the advertised position is available. The failure of these work permits to be granted or extended could prevent us from continuing to implement our business strategy.
In the United States, the Investment Company Act regulates certain companies that invest in or trade securities. We rely on an exemption under the Investment Company Act for an entity organized and regulated as a foreign insurance company which is engaged primarily and predominantly in the reinsurance of risks on insurance agreements. As we hold ourselves out as a global specialty property and casualty reinsurer and we do not propose to engage primarily in the business of investing or trading in securities, we believe the exemption applies. Accordingly, we do not believe that we are, or are likely to become in the future, an investment company under the Investment Company Act.
Accordingly, we do not believe that we are, or are likely to become in the future, an investment company under the Investment Company Act.
As a matter of Cayman Islands law, a director of a Cayman Islands company is in the position of a fiduciary with respect to the company and therefore it is considered that they owe certain duties to the company, including the following: a duty to act in good faith and in what they consider to be in the best interests of the company; a duty not to make a profit out of their position as director (unless the company permits them to do so); a duty to exercise their powers for the purposes for which they are conferred; and a duty not to put themselves in a position where the interests of the company conflict with their personal interest or their duty to a third party. A director of a Cayman Islands company owes to the company a duty to act with skill and care. A director will need to exhibit in the performance of their duties both the degree of skill that may reasonably be expected from a subjective perspective determined by reference to their knowledge and experience and the skill and care objectively to be expected from a person occupying office as a director of the company.
Our Innovations investments include private investments and unlisted equities in early-stageprivate or start-up entitiesequities for which no active market may exist. We carry these investments on our consolidated balance sheets at cost, less impairment, plus or minus observable price changes (see “Critical Accounting Estimates - “Investments” under “Part II, Item 8. Management Discussion and Analysis of Financial Condition and Results of Operations”). These carrying values may differ significantly from those that would be used if we carried them at fair value. If we were required to liquidate all or a portion of these investments quickly, we could realize significantly less than the carrying value. The carrying value of our Innovations investments may become concentrated in a limited number of entities as a result of subsequent remeasurement and/or have significant exposure to certain geographic areas or economic sectors. The concentration of investments can increase investment risk and volatility. At December 31, 2024,2025, our top five holdings accounted for 70%53% of the total carrying value. Any of the foregoing could result in a decline in our investment performance and capital resources and, accordingly, could materially and adversely affect our financial results and results of operations. Refer to “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Innovations Segment” for total impairment charge in 2025.
•these companies may have limited financial resources and may be unable to meet their operating obligations;
•they typically have limited operating histories, narrower product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions and market conditions, as well as general economic downturns;
•they typically depend on the management talents and efforts of a small group of persons. Therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse effect on such investment and, in turn, on us;
•they may not have adequate internal controls which would make them susceptible to fraud or mismanagement;
•there is generally little public information about these companies. These companies and their financial information are generally not subject to the Exchange Act and other regulations that govern public companies, and we may be unable to uncover all material information about these companies, which may prevent us from making a fully informed investment decision and cause us to lose money on our investments;
•they generally have less predictable operating results and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position;
•changes in laws and regulations (including applicable tax laws), as well as their interpretations, may adversely affect their business, financial structure or prospects; and
•they may have difficulty accessing the capital markets to meet future capital needs.
Following an initial investment in an entity, we may make additional investments in the entity as “follow-on” investments to: (1) increase or maintain in whole or in part our equity ownership percentage; (2) exercise warrants, options or convertible securities that we acquired in the original or subsequent financing; (3) protect our liquidation preference rights or (34) attempt to preserve or enhance the value of our investment.
At December 31, 2024,While we had $60.7$4.7 million of debt outstanding thatat maturesDecember on31, August2025, 1,we 2026.have Ourthe ability to borrow up to $50 million under the Revolving Credit Facility (see Note 10 “Debt and Credit Facilities” of our consolidated financial statements). The level of debt and the provisions of such debt could have significant consequences, which include, but are not limited to, the following:
•limit our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, or other general corporate purposes;
•require a substantial portion of our cash flows to be dedicated to debt service payments instead of other purposes, thereby reducing the amount of cash flows available for working capital, capital expenditures, acquisitions, and other general corporate purposes;
•discourage an acquisition of us by a third party;
•place us at a competitive disadvantage to competitors carrying less debt; and
•make us more vulnerable to economic downturns and limit our ability to withstand competitive pressures or take advantage of new opportunities to grow our business.
On October 8, 2021, the OECD announced an accord endorsing and providing an implementation plan for a global minimum tax rate of at least 15% for large multinational corporations on a jurisdiction-by-jurisdiction basis, known as “Pillar Two.” While the Company is not currently aware of any definitive actions being taken in the Cayman Islands to implement a minimum tax, inIreland Ireland,and athe billUnited Kingdom have enacted legislation implementing Pillar Two was signed into law on December 18, 2023,Two, including an “undertaxed profit rule” that will comecame into effect in 2025.both In the United Kingdom, legislation implementing an “undertaxed profit rule” under Pillar Two with effect as of 2025 was includedcountries in the Finance Bill 2024-2025.2025. If the Cayman Islands does not adopt a minimum tax, the undertaxed profits rule may allow Irish or United Kingdom tax authorities to collect more tax from our Irish or United Kingdom companies. The global minimum tax rules implemented in different jurisdictions (including the undertaxed profit rule) would apply to overseas profits of multinational firms with annual revenue of more than €750 million. While these global minimum tax rules are not expected to apply to the Company in 2026 as currently proposed and being implemented in jurisdictions applicable to the Company’s operations, due to the Company’s revenues currently falling below the proposedapplicable revenue threshold test (that tests meeting the annual €750 million revenue threshold,threshold for at least two of the four fiscal years immediately preceding the tested fiscal year), adjustments to the threshold or continued growth of the Company’s revenues could impact the CompanyCompany’s Pillar Two position in future periods.periods beyond 2026. Further, even if the Company did eventually meet the applicable threshold due to continuedmeeting the revenue growthtest orin otherwise,at least two fiscal years within a four-year period, then given the size and structure of the Company, the Company may be eligible to meet an initial phase transitional safe harbor provided for in the model rules of the accord (and incorporated into the Irish and UK legislation), which provides relief from taxation under the accordundertaxed profit rule for a period of up to five additional years after the Company comes within the scope of the rules.
Management's Discussion & Analysis (MD&A)
New heading “Segment Results”
New heading “Acquisition cost ratio”
New heading “Net investment income”
New heading “Income before income taxes”
New heading “Acquisition cost ratio”
New heading “Net investment income (loss)”
New heading “Income before income taxes”
New heading “Fixed Maturities”
Removed heading “Results by Segment”
Removed heading “Investments in Solasglas”
Largest changes
Ceded premiums written insee in full comparison20242025 was$62.4$50.5 million, resulting in net premiums written of$541.4$601.7 million, compared to$37.9$62.4 million and$466.5$541.4 million, respectively, in2023.2024. Theincreasedecrease in ceded premiums written of64.6%19% wasprimarilydriven by reduced quota share retrocessional activity within ourspecialtypropertylinebusinessdriven by additional retrocessional coveragedue tomanagelowerourinwardoverallpremiums.exposureAdditionallytoinaviation,2024,marineweand energy classes of business and to reinstatereinstated certain retrocession excess of loss treaties in which the full coverage waspresumeddeemed exhaustedprimarilyduefromto the Baltimore Bridge loss. This was partially offset mainly by additional excess of losseventretrocessional coverage within our specialty business in20242025 to manage our overall exposure to aviation, marine andtheenergyRussian-Ukraine conflict event in 2022. Additionally, we had an increase in quota share retrocessions due to growth from inward property and M&E business.risks.
“Our investment in fixed maturities are recognized at fair value. For the fixed maturity portfolio managed by a third party, all fixed maturity securities are classified as Level 2 except for US Treasury securities which are classified as Level 1. Refer to Note 7, “Fair Value Measurements” for the valuation methodologies used to determine the fair value of the fixed maturity securities by asset class. For the liquidity fund, as a practical expedient, the fair value is based on NAV obtained from the fund’s third party administrator.”see in full comparison
Full comparison: every changed paragraph (140)
The following is management’s discussion and analysis (“MD&A”) of the financial condition and results of operations for the years ended December 31, 2024,2025, and 2023.2024. Except for the “Results by Segment” section of this MD&A, comparisonsComparisons between 20232024 and 20222023 have been omitted from this Annual Report, but may be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 20232024 filed with the SEC. Accordingly, this information is incorporated by reference.
We earned a net income of $42.8$74.8 million for the year ended December 31, 2024,2025, aan decreaseincrease of $44.0$32.0 million, or 51%74.8% compared to the prior year, predominantly due to higherstrong lossesunderwriting from catastropheresults and weather-related events (collectively referred as “CAT losses”), coupled with unfavorablefavorable foreign exchange movement in 2024.2025, partially offset by lower net investment income from Innovations and lower yields on restricted cash and cash equivalents.
•Net underwriting lossincome was $8.2$35.7 million, compared to net underwriting incomeloss of $32.0$8.2 million;
•Total investment income was $79.6$60.2 million, ana increasedecrease of 10.3% (including 9.8% net return from our investment in Solasglas, compared to 9.4%)24.4%;
•Foreign exchange lossesgains were $5.6$8.5 million, compared to foreign exchange gainslosses of $11.6$5.6 million;
•Diluted EPS was $1.24,$2.17, compared to $2.50,$1.24, aan decreaseincrease of 50%75.0%; and
At the January 1, 2026 renewals, we experienced greater opportunities owing to our stronger balance sheet and the upgrade of our A.M. Best Rating to A (Excellent), but we also faced a more competitive market. Rate changes for Open Market business varied significantly by line of business: property and specialty rates experienced downward pressure, whereas casualty rates increased. Attachment points and other terms and conditions mostly held firm.
Although January 1st, is not historically a significant renewal date for our Innovations portfolio, we observed more opportunities with rate holding up well. In the current market conditions, we see increasing opportunities to leverage retrocession coverage, and we will take advantage of these opportunities where they enhance our economics and risk profile.
As the key January 1, 2025, renewal period progressed, we saw increased competition which put pressure on headline rate; however, attachment points and other terms & conditions largely held firm. We were able to achieve signings to construct a diversified portfolio that met our risk appetite and profitability requirements. Looking forward to 2025, we believe that market conditions are still broadly, but not uniformly, positive. We will continue to write business where we believe the price adequately compensates us for the risk.
There are many factors contributing to an uncertain global economic outlook, and in particular, we believe that inflationary trends of recent years could persist. We continue to consider the potential impact of relevant economic factors on our underwriting portfolio. On the investment side, DME Advisors regularly monitors and re-positions Solasglas’ investment portfolio to manage the impact of inflation on its underlying investments and holds macro positions to benefit from a rising inflationary environment. DME Advisors remains conservatively positioned as it believes the equity markets are very expensive.
We believe trade policies will continue to cause uncertainty and volatility. In February 2026, the U.S. Supreme Court struck down the Administration’s tariffs enacted under the International Emergency Economic Powers Act (IEEPA) of 1977, but the Administration stated it will enact new tariffs under several other legislative acts.
•interest income on our cash and cash equivalentsequivalents, fixed maturities investment portfolio and FAL.
Corporate and other expenses consist primarily of compensation costs related to non-underwriting activities, including Innovations related investments and corporate personnel. Additionally, these also include professional fees (non-claim related), director compensation, travel and entertainment, information technology, rent, and other general operating costs, net of an allocation to underwriting expenses.
For the year ended December 31, 2024,2025, net income decreasedincreased by $44.0$32.0 million to $42.8$74.8 million, driven mainly by the following:
•Underwriting income: DecreasedIncreased by $40.2$43.8 million due to 6.96.8 percentage points increaseimprovement in our combined ratio, driven predominantly by improved current year loss ratio and lower adverse prior year reserve development ratio. The lower attritional loss and CAT event loss ratios contributed to the lower current year loss ratio; partially offset by an increase in currentlarge year attritional and CATevent loss ratios.ratio. Refer to the “Results by Segment” section of the MD&A for further discussion and analysis.
•Solasglas investment: Solasglas returned 7.5% in 2025, compared to 9.8% in 2024. However, income from our Solasglas investment was $2.1 million higher in 2025 versus 2024, due to the growth in the Investment Portfolio.
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•Investment income: Increased by $7.5 million primarily driven by an increase in income from our investment in Solasglas, which reported a gain of $33.6 million in 2024, compared to $28.7 million in 2023. Solasglas generated a net return of 9.8% for the year ended December 31, 2024, compared to a net return of 9.4% for the same period in 2023. Additionally, we earned additional investment income on funds withheld by third party Lloyd’s syndicates. The Lloyd’s syndicates invest a portion of these funds in fixed maturity securities, equities, and investment funds. We record our share of the investment income and fair value adjustments on these securities when the syndicates report them to us, generally on a quarter in arrears. See Note 13 “Net Investment Income” of the consolidated financial financial statements for further details.
•Corporate and other expenses: Decreased by $7.3 million mainly due to non-recurring severance costs included in 2023, including $4.3 million relating to the separation agreement entered with our former CEO, and lower incentive compensation costs in light of the Company’s weaker performance in 2024. This was partially offset by the increase in other non-underwriting personnel and overhead costs in addition to technology investment to support the business growth.
•Foreign exchange gains (losses): $8.5 million foreign exchange gains for 2025, compared to $5.6 million foreign exchange losses for 2024, compared to $11.6 million foreign exchange gains for 2023, driven mainly by a weakerstronger pound sterling movement against the U.S. dollar in 2024.2025.
•Interest expense: Decreased by $1.5 million predominantly driven by a decrease in the average outstanding debt balance in 2025 as a result of debt repayment due strong cash flows generated from operations.
Offset partially by:
•Investment income: Decreased by $19.4 million primarily driven by lower investment income on cash and cash equivalents mainly due to lower yields, losses on Innovations investments, and lower returns on funds withheld by third party Lloyd’s syndicates. The Lloyd’s syndicates invest a portion of these funds in fixed maturity securities, equities, and investment funds. We record our share of the investment income and fair value adjustments on these securities when the syndicates report them to us, generally on a quarter in arrears. See Note 14 “Net Investment Income” of the consolidated financial financial statements for further details.
•Corporate and other expenses: Increased by $5.2 million predominantly driven by an increase in non-underwriting personnel costs, including higher incentive compensation expense as a result of strong underwriting results in 2025.
•Income tax expense: Increased by $2.7 million due to increased taxable income from our operations in Ireland and U.K.
Segment Results
•Interest expense: Increased by $0.5 million primarily due to unfavorable fair value movement on the interest rate swaps used to partially hedge the Term Loans; offset partially by lower interest expense driven by a decrease in the average outstanding Term Loans balance in 2024.
Results by Segment
During the fourth quarter of 2024, we have revised our operating segments to Open Market and Innovations. See Note 17 “Segment Reporting” for the consolidated segment net income before taxes in 2024, including a reconciliation to net income as reported under U.S. GAAP. Comparatives have been recast to conform with the new reportable segments.
We have two operating segments: Open Market and Innovations. The following is a further discussion and analysis for each reporting segment.segment for the years ended December 31, 2025 and 2024.
Gross premiums written within our Open Market segment in 20242025 increased by $99.4$48.4 million or 19.7%,8%, compared to 2023.2024. The increase was predominantly attributable to the following lines of business:
•Multiline:The $71.1 million, or 39%, increase was driven mostly by growth in our FAL business bound in 2025, coupled with growth from new construction and engineering business bound in 2025. This was partially offset by non-renewal of commercial auto business.
•Financial: The $13.8 million, or 22%, increase was mainly due to the reporting of additional premiums from previous treaty years in our mortgage business, coupled with rate and exposure growth in our transactional liability business and new surety business bound in 2025.
The above was partially offset by the decrease in our casualty, property and specialty lines of business. The significant decrease in casualty business is predominantly a result of our decision to reduce our casualty exposure through non-renewal of certain general liability and workers’ compensation programs.
•Financial: new excess of loss treaties in our financial multiline business and an increase in premium volume for our transactional liability business.
•Property: improved pricing in our commercial and property catastrophe business.
•Specialty: improved pricing and new customers in our marine and energy (M&E) business, including Lloyd’s whole account excess of loss treaties. Additionally, there was an increase of $9.0 million in reinstatement premiums attributable to the 2024 CAT events, in particular for the Baltimore Bridge collapse.
The above was partially offset by the decrease in our multiline business, driven by two non-renewed FAL accounts on January 1, 2024; offset by premium growth from the remaining third-party FAL business.
Gross premiums written in 2023 increased by $51.9 million or 11.5%, compared to 2022. The increase was predominantly attributable to property and specialty lines due to improved pricing and new business. This was partially offset mostly by a decrease in financial line predominantly due to lower level of activity in transactional liability business.
Ceded premiums written in 20242025 was $62.4$50.5 million, resulting in net premiums written of $541.4$601.7 million, compared to $37.9$62.4 million and $466.5$541.4 million, respectively, in 2023.2024. The increasedecrease in ceded premiums written of 64.6%19% was primarilydriven by reduced quota share retrocessional activity within our specialtyproperty linebusiness driven by additional retrocessional coveragedue to managelower ourinward overallpremiums. exposureAdditionally toin aviation,2024, marinewe and energy classes of business and to reinstatereinstated certain retrocession excess of loss treaties in which the full coverage was presumeddeemed exhausted primarilydue fromto the Baltimore Bridge loss. This was partially offset mainly by additional excess of loss eventretrocessional coverage within our specialty business in 20242025 to manage our overall exposure to aviation, marine and theenergy Russian-Ukraine conflict event in 2022. Additionally, we had an increase in quota share retrocessions due to growth from inward property and M&E business.risks.
Ceded premiums written in 2023 was $37.9 million, resulting in net premiums written of $466.5 million, compared to $14.7 million and $437.8 million, respectively, in 2022. The increase in ceded premiums written of 157.0% was predominantly attributable to an increase in quota share retrocessions due to growth from inward property business.
NetFor our Open Market segment, net premiums earned by line of business were as follows:
Net premiums earned in 20242025 increased by $45.2$64.1 millionmillion, or 9.7%,13%, compared to 2023. Further, net premiums earned in 2023 increased by $55.9 million or 13.6%, compared to 2022. The increase (decrease) in net premiums earned by line of business is relatively consistent with the trends noted for the gross premiums written.2024. The change is also 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 for some treaties are earned over multiple years, corresponding with the anticipated risk coverage period. Similarly, the impact of scaling back our casualty business was partially reflected during 2025, and will mostly impact our casualty earned premiums in 2026.
Loss ratio
The components of the loss ratio for our Open Market segment were as follows:
The current year loss ratio in 2025 decreased by 3.3 percentage points to 60.5%, compared to 2024, predominantly due to improved attritional loss ratio, offset partially by a higher volume of large event losses. The CAT losses during 2025 primarily related to the California wildfire losses.
The current year loss ratio in 2024 increased by 8.3%, compared to 2023 due to:
•4.6% increase in attritional loss ratio in 2024, driven mainly by higher reserve estimates for the growing in-force casualty, specialty and property lines of business.
•3.7% increase in CAT losses, net of reinsurance, primarily attributable to more severe CAT loss events in 2024 including the Baltimore Bridge collapse and Hurricanes Helene and Milton, compared to one major CAT event in 2023 (the Mexican state-owned oil platform fire loss).
The current year loss ratio in 2023 decreased by 10.7%, compared to 2022 due to:
•5.0% decrease in attritional loss ratio 2024, driven mainly by a change in business mix coupled with lower attritional loss estimates, principally on property and specialty lines of business that performed strongly; and
•5.7% decrease in CAT losses, net of reinsurance, primarily attributable to lower volume and less severe CAT loss events in 2023, compared to two major CAT events in 2022 (Hurricane Ian and the Russian-Ukrainian conflict).
PriorThe Open Market segment’s prior year reserve development ratio increasedimproved by 2.1%1.1 percentage points in 20242025 compared to 2023, and by 1.6% in 2023 compared to 2022.2024. Refer to Note 78 Loss and LAE Reserves to the consolidated financial statements for further details on the lines of business and prior year development.
Acquisition cost ratio
The acquisition cost ratio decreased by 0.8 percentage points in 2025 compared to 2024, due to the change in business mix, coupled with improved acquisition cost ratios for our multiline and financial lines of business. This was partially offset by an increase in acquisition cost ratio for our specialty line, mainly due to 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 costs as a result of adverse loss reserve development in 2025. Additionally, the acquisition cost ratio for the mortgage business was higher in 2024 due to an increase in profit commission costs on prior years’ treaties.
•Multiline: Driven predominantly from lower acquisition cost ratio for our FAL business, in part due to higher net premiums earned base to absorb fixed brokerage and commissions for new Syndicate 3456 programs.
The acquisition cost ratio decreased to 28.3% in 2024 from 29.2% in 2023, primarily due business mix and higher ratio of excess of loss contracts at lower commission rates than quota share reinsurance contracts; partially offset by higher acquisition costs for certain 2023 and 2024 FAL business in our multiline business.
The acquisition cost ratio decreased to 29.2% in 2023 from 30.5% in 2022, primarily due to business mix and higher ratio of excess of loss contracts at lower commission rate than quota share reinsurance contracts.
What changed in the latest 10-Q
Risk Factors
Factors that could cause our actual results to differ materially from those in this report are any of the risks described in “Part I. Item 1A. Risk Factors” included in our 2025 Form 10-K, as filed with the SEC on March 9, 2026. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.
As of June 30, 2026, there have been no other material changes to the risk factors disclosed in “Part I. Item 1A. Risk Factors” included in our 2025 Form 10-K. We may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.
Full comparison: every changed paragraph (1)
As of MarchJune 31,30, 2026, there have been no other material changes to the risk factors disclosed in “Part I. Item 1A. Risk Factors” included in our 2025 Form 10-K. We may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.
Management's Discussion & Analysis (MD&A)
New heading “Consolidated Results of Operations for YTD 2026 compared to YTD 2025”
New heading “Attritional loss ratio”
New heading “Large event loss ratio”
New heading “CAT event loss ratio”
Largest changes
“◦Our investment in Solasglas reported a loss of $27.9 million (net loss of 5.4%) during Q2 2026, compared to a loss of $18.3 million (net loss of 4.0%) for the same period in 2025; and ◦Lower net investment income from (i) interest earned on funds at Lloyds due to partially replacing it with the unsecured Citibank LC (see Note 10 of the financial statements), and (ii) with lower interest income earned from restricted cash and cash equivalents due to the interest rate cuts by central banks in 2025. …”see in full comparison
“Consolidated Results of Operations for YTD 2026 compared to YTD 2025”see in full comparison
“Net investment income was $0.6 million for YTD 2026, compared to $0.9 million in YTD 2025. The decrease was driven by the above impairment charge, partially offset by additional investment income earned from a higher average outstanding restricted cash balance to secure LC and trust accounts relating to the Innovations reinsurance treaties.”see in full comparison
Full comparison: every changed paragraph (141)
The following discussion should be read in conjunction with the condensed consolidated financial statements (herein referred to as “financial statements”) and accompanying notednotes included in Item 1 of this report and the audited consolidated financial statements and accompanying notes, which appear in our 2025 Form 10-K.
The following is management’s discussion and analysis (“MD&A”) of our results of operations for the three and six months ended MarchJune 31,30, 2026 and 2025 and the Company’s financial condition at MarchJune 31,30, 2026 and December 31, 2025.
All amounts are reported in U.S. dollars, unless otherwise noted. Tabular dollars are presented in thousands, with the exception of per share amounts or as otherwise noted. Due to rounding, numbers and percentages presented in the tables included in this MD&A may not add up precisely to the totals provided.
For the three months ended MarchJune 31,30, 2026 (“Q1Q2 2026”), we hadreported a net incomeloss of $35.8$29.6 million, compared to $29.6$0.3 million overnet income for the three months ended MarchJune 31,30, 2025 (“Q1Q2 2025”). The increasenet loss was mainly attributable to strongerCAT losses from underwriting performance,and partiallynegative offsetinvestment byreturns foreignfrom exchange losses.Solasglas.
•Gross premiums written was $227.9$183.1 million, aan decreaseincrease of 8.1%1.9%;
•Net premiums earned was $154.1$161.8 million, aan decreaseincrease of 8.5%0.1%;
•Net underwriting incomeloss was $6.2$0.2 million, compared to net underwriting lossincome of $7.8$8.1 million;
•Total investment incomeloss was $40.4$23.8 million, acompared decreaseto investment loss of 0.2%$7.8 million;
•Diluted EPS loss was $1.05,$0.89, compared to $0.86,diluted an increaseEPS of 22.1%$0.01; and
•Fully diluted book value per share was $21.40,$20.61, ana increasedecrease of 4.7%3.7% since Decemberlast 31, 2025.quarter.
We continue to see increasedan competitionincreasingly fromcompetitive existing and new reinsurance markets,market, predominantly in our Open Market segment. This is putting pressure on headline rates across various classes; however,with some modest but increasing pressure appearing on attachment points and other terms &and conditions are largely holding firm.conditions. Our focus remains on maintaining a diversified portfolio that is resilient to market supply-demand pressures.
There are many factors contributing to an uncertain global economic outlook, and in particular, the current Middle East conflict. With the recent increasevolatility in oil price driven by this conflict, we believe that inflationary trends of recent years could persist. We continue to consider the potential impact of relevant economic factors on our underwriting portfolio.
DuringIn 2025,addition to the geopolitical uncertainty, the U.S. Administration enactedcontinues to adopt trade policies that werehave more aggressive than the financial markets expected, causing additionalincreased uncertainty and volatility.volatility in financial markets. These policies continue to complicate the near-term outlook for economic growth and inflation. We remain vigilant tofor economic data and additional policies that may impact our business.
Key Financial Measures and Non-GAAP MeasuresMeasure
There have been no changes to our key financial measures, including non-GAAP financial measures,measure, as described in the MD&A of our 2025 Form 10-K.
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 gain of $1.6$1.2 million and a loss of $3.5$2.6 million for three months ended June 30, 2026 and 2025, respectively, and a gain of $2.8 million and a loss of $6.1 million for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively.
Basic book value per share increaseddecreased by $1.11$0.78 per share, or 5.3%,3.5%, to $21.22 per share from $22.00 per share from $20.89 per share at DecemberMarch 31, 2025.2026. Fully diluted book value per share increaseddecreased by $0.97$0.79 per share, or 4.7%,3.7%, to $20.61 per share from $21.40 per share from $20.43 per share at DecemberMarch 31, 2025.2026.
Net loss for Q2 2026 was $29.6 million, compared to a negligible net income for Q2 2025. This was driven mainly by the following:
Net income for Q1 2026 increased by $6.1 million to $35.8 million, driven mainly by the following:
•Underwriting income: Favorable change of $14.0 million, driven by 8.6 percentage points improvement in combined ratio, which was predominantly driven by 13.8 percentage points improvement in the loss ratio, offset partially by an increase in acquisition cost ratio and underwriting expense ratio. The lower loss ratio was due to the lower CAT and large event losses, coupled with an improved prior year reserve development ratio.
•InterestInvestment expenseloss: DecreasedIncreased by $1.4$16.0 million primarily driven by the reduction in outstanding debt.:
◦Our investment in Solasglas reported a loss of $27.9 million (net loss of 5.4%) during Q2 2026, compared to a loss of $18.3 million (net loss of 4.0%) for the same period in 2025; and ◦Lower net investment income from (i) interest earned on funds at Lloyds due to partially replacing it with the unsecured Citibank LC (see Note 10 of the financial statements), and (ii) with lower interest income earned from restricted cash and cash equivalents due to the interest rate cuts by central banks in 2025. Additionally, we recognized $0.4 million of unrealized losses on the fixed maturity investment portfolio and a $1.5 million impairment charge relating to the Innovations’ private equity portfolio for Q2 2026, which are included in net investment income in the financial statements.
•Underwriting loss: Unfavorable change of $8.3 million, driven by 5.1 percentage points deterioration in the combined ratio, which was predominantly driven by 7.4 percentage points increase in the loss ratio, offset partially by lower acquisition cost ratio and underwriting expense ratio. The increase in the loss ratio was predominantly driven by CAT event losses, partially offset by lower attritional and large event losses as well as lower prior year adverse reserve development.
Offset partially by:
•Foreign exchange gains (losses): UnfavorableThe changeGBP ofand $9.3Euro million,movement was largely subdued in Q2 2026. In Q2 2025, the foreign exchange gain was driven mainly by the weakeningremeasurement of theour poundnet sterlingmonetary againstassets thebased U.S.on dollara during Q1 2026, compared to the strengthening of thestronger pound against the U.S. dollar during Q1 2025.dollar.
•Interest expense: Decreased by $1.0 million driven by the reduction in outstanding debt.
Consolidated Results of Operations for YTD 2026 compared to YTD 2025
Basic book value per share increased by $0.33 per share, or 1.6%, to $21.22 per share from $20.89 per share at December 31, 2025. Fully diluted book value per share increased by $0.18 per share, or 0.9%, to $20.61 per share from $20.43 per share at December 31, 2025.
For the six months ended June 30, 2026 (“YTD 2026”), net income decreased by $23.8 million to $6.2 million, compared to the six months ended June 30, 2025 (“YTD 2025”) driven mainly by the following:
•Investment income: Decreased by $16.0 million primarily driven by:
◦Our investment in Solasglas reported a gain of $5.8 million (net return of 1.1%) during YTD 2026, compared to a gain of $13.9 million (net return of 2.9%) during YTD 2025; and ◦Lower net investment income for the same reason noted for Q2 2026. We recognized $1.0 million of unrealized losses on the fixed maturity investment portfolio for YTD 2026 driven by increase in interest rates during 2026, offset by a higher book yield on this portfolio.
•Foreign exchange gains (losses): Unfavorable change of $16.1 million, driven mainly by the weakening of the pound against the U.S. dollar during YTD 2026, compared to the strengthening of the pound against the U.S. dollar during YTD 2025.
•Underwriting income: Increased by $5.6 million, driven by 1.8 percentage points improvement in combined ratio, primarily reflecting favorable prior year reserve development, which contributed to an improved loss ratio. For further information on CAT losses and prior year reserve development, refer to Note 8 of the financial statements.
•Interest expense: Decreased by $2.4 million driven by the reduction in our outstanding debt.
Gross premiums written within our Open Market segment in Q1Q2 2026 decreased by $40.4$0.1 million or 18.3%,0.1%, compared to Q1Q2 2025. However, there was a significant change in business mix during quarter. The decreaseoverall net reduction was predominantly attributable to the following lines of business:
•Casualty: The $18.1$9.8 million, or 60.8%,49.0%, decrease was mainly due to the non-renewal of certain reinsurance programs in our general liabilityliability, classumbrella liability, and multilineworkers’ casualtycompensation classbusiness as part of our strategy to reduce our exposure to the Casualty line of business.
•Property: The $3.9 million, or 21.7%, decrease was mainly due to lower premiums on quota share property catastrophe programs due to lower participation and rate reduction, coupled with a decrease in estimated reinstatement premiums as a result of reducing our estimated CAT losses for the California wildfires (2025 accident year); and
•Specialty: The $6.8 million, or 15.0%, decrease was driven by the following:
•Multiline: The $4.0 million, or 6.1%, decrease was driven mostly by the non-renewal of a commercial auto quota share treaty, coupled with some negative premium estimate revisions within the FAL business related to certain syndicates on the 2024 and 2025 underwriting years. This was partially offset by new FAL business written on the 2026 underwriting year.
•Property: The $4.5 million, or 15.1%, decrease was mainly due to negative premium estimate revision for a prior year quota-share reinsurance treaty. This treaty is mostly retroceded to a third party; accordingly, there was no significant impact on a net premium written basis.
•Specialty: The $15.2 million, or 21.6%, decrease was predominantly driven by negative◦Downward premium estimate revisions in Q2 2026 for quota-share reinsurance treaties written in prior years,years; coupledpositive withpremium estimate revisions in Q2 2025 for a quota-share reinsurance treaty; and rate reductions for business renewed business.in 2026;
◦Offset partially by $2.8 million of estimated reinstatement premiums relating to the CAT loss associated with the Middle East conflict.
•Multiline: The $11.8 million, or 22.4%, increase was driven mostly by growth in the FAL business bound during Q1 2026, coupled with higher negative premium revision to our estimated ultimate gross premiums for certain 2023 and 2024 FAL treaties in Q2 2025.
•Financial: The $8.5 million, or 51.9%, increase was driven by additional reported premiums in our mortgage and transactional liability business, coupled with new surety and financial multiline treaties.
Gross premiums written within our Open Market segment in YTD 2026 decreased by $40.5 million or 10.9%, compared to YTD 2025, with similar change in business mix as in Q2 2026. The decrease was predominantly for the same reasons noted for Q2 2026.
Ceded premiums written in Q1Q2 2026 was $29.1$24.0 million, resulting in net premiums written of $151.3$128.2 million, compared to $25.1$10.2 million and $195.6$142.1 million, respectively, in Q1Q2 2025. The increase in ceded premiums written of 15.7%134.3% was driven primarily due to a new retrocession treatytreaties for our Multiline business,business. coupledThis withwas additionalpartially excessoffset ofby lossreduced retrocessionalquota coverageshare retrocession activity within our specialtySpecialty line of business in 2026due to managelower ourestimated overallinward exposure to aviation, marine and energy risks.premiums.
Ceded premiums written in YTD 2026 was $53.0 million, resulting in net premiums written of $279.5 million, compared to $35.3 million and $337.7 million, respectively, in YTD 2025. The increase in ceded premiums written of 50.1% was driven by new retrocession treaties for our Multiline business, coupled with additional excess of loss retrocessional coverage within our Specialty business in 2026 to manage our overall exposure to aviation, marine and energy risks. This was partially offset by reduced quota share retrocession activity within our Property and Specialty lines of business due to lower estimated inward premiums.
This was partially offset by reduced quota share retrocession activity within our Property and Specialty lines of business due to lower estimated inward premiums.
Net premiums earned within our Open Market segment in Q2 2026 and YTD 2026 decreased by $3.6 million or 2.6%, and $24.3 million or 8.4%, compared to Q2 2025 and YTD 2025, respectively.
Net premiums earned within our Open Market segment in Q1 2026 decreased by $20.7 million or 13.8%, compared to Q1 2025. The decrease in Casualty line was due to the non-renewal of certain reinsurance programs in our general liability class as part of our strategy to reduce our exposure to the Casualty line of business. 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 for some treaties are earned over multiple years, corresponding with the anticipated risk coverage period. The negative premium estimate revision on older accident years also contributed to the decrease in Specialty’s net premiums earned.
Additionally, for the above periods, the decrease in Casualty line was due to the non-renewal of certain reinsurance programs as part of our strategy to reduce our exposure to this business. The downward premium estimate revision on older accident years also contributed to the decrease in Property and Specialty’s net premiums earned, in addition to the reduction in reinstatement premium relating to the lower estimated CAT losses for California wildfires in our Property line of business. The reduction in Specialty net premiums earned was partially offset by $2.8 million of reinstatement premiums relating to the Middle East conflict.
The Q1Q2 2026 current year loss ratio for Open Market decreasedincreased by 11.511.4 percentage points to 60.6%,71.5%, compared to Q1Q2 2025, driven mainly by lowercurrent year CAT event losses, partially offset by lower attritional loss and large event loss ratios. While the YTD 2026 current year loss ratio decreased only by 0.1 percentage points to 66.1%, compared to YTD 2025, the lower attritional loss and large event loss ratios offset by an increase in largeCAT event losses.loss ratio.
Attritional loss ratio
The 4.3 percentage points improvement in Q2 2026 attritional loss ratio was predominantly due to:
•Multiline: decreased by 6.9% mainly due to the change in business mix within the Multiline portfolio, with the FAL class of business representing most of the total premium earned at lower attritional loss ratio than other classes of business within Multiline compared to Q2 2025. We also reduced our exposure to the commercial auto class in the past year, which had a higher attritional loss ratio.
While the Q1 2026 attritional loss ratio was relatively consistent with Q1 2025, there were offsetting underlying movements at the lines of business level.
•Financial: increased by 15.8% compared to last year driven by adverse claims experience within our Transactional Liability business stemming predominantly from the 2021 and 2023 underwriting years. In addition, this led us to increase our expected losses on more recent underwriting years for this class of business compared to Q1 last year.
•Multiline: increased by 3.1% driven by a combination of adverse claims experience within our Commercial Auto business on legacy contracts, and new business where we recognized newly bound and renewed contracts at higher loss ratios in response to softening market rates compared to last year.
•Specialty: decreased by 5.4%9.2% drivenpredominantly bydue to favorable claims experience predominantlymainly on aviation,agriculture and whole account energy and marine contracts,treaties, as well as a refinement to our reserving approach that recognizes favorable trends, particularly as they relate to large loss claims experience on non-proportional contracts, quicker than we previously estimated. These effects were partially offset by establishing higher loss ratios on new and renewal business in anticipation of softening rates within this line of business.
•Financial: increased by 4.7% mainly due to an increase in our expected losses on more recent underwriting years for the transactional liability class of business.
GLRE insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 1 Form 4 filing (1 insider, 2 trade dates, 12,000 shares, about $186.2K) and open-market sales in 13 filings (5 insiders, 16 trade dates, 125,163 shares, about $2.1M). Net open-market shares: -113,163 (purchases minus sales); net value about -$1.9M.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-09-28 | Isaacs Ian |
Open-market sale | 5,150 | $14.90 | $76.7K |
| 2026-09-25 | Isaacs Ian |
Open-market sale | 10,000 | $14.95 | $149.5K |
| 2026-09-17 | Diaz Sherry |
Open-market sale | 13,500 | $15.08 | $203.6K |
| 2026-09-14 | Isaacs Ian |
Open-market sale | 4,850 | $15.13 | $73.4K |
| 2026-09-03 | Welch John |
Grant/award | 13,356 | — | — |
| 2026-08-28 | Isaacs Ian |
Open-market sale | 4,054 | $15.42 | $62.5K |
| 2026-08-27 | Isaacs Ian |
Open-market sale | 946 | $15.43 | $14.6K |
| 2026-08-10 | Goldberg Leonard R |
Open-market purchase | 6,000 | $15.42 | $92.5K |
| 2026-08-07 | Goldberg Leonard R |
Open-market purchase | 6,000 | $15.62 | $93.7K |
| 2026-08-07 | Foley Ursuline F |
Grant/award | 7,992 | — | — |
| 2026-08-07 | Guest Victoria W |
Grant/award | 7,992 | — | — |
| 2026-08-07 | Warszawski Ariel |
Grant/award | 14,386 | — | — |
| 2026-08-07 | Murphy Bryan |
Grant/award | 7,992 | — | — |
| 2026-08-07 | Platt Joseph P Jr |
Grant/award | 7,992 | — | — |
| 2026-08-07 | Isaacs Ian |
Grant/award | 7,992 | — | — |
| 2026-08-07 | Ferrari Johnny |
Grant/award | 7,992 | — | — |
| 2026-08-07 | Goldberg Leonard R |
Grant/award | 7,992 | — | — |
| 2026-08-03 | Einhorn David |
Disposition to issuer | 106,060 | $16.14 | $1.7M |
| 2026-06-29 | Isaacs Ian |
Open-market sale | 1,191 | $16.72 | $19.9K |
| 2026-06-25 | Isaacs Ian |
Open-market sale | 4,000 | $16.06 | $64.2K |
| 2026-06-24 | Isaacs Ian |
Open-market sale | 5,000 | $16.64 | $83.2K |
| 2026-06-23 | O'brien Patrick |
Open-market sale | 3,026 | $16.36 | $49.5K |
| 2026-06-23 | Isaacs Ian |
Open-market sale | 9,230 | $16.33 | $150.7K |
| 2026-06-22 | Isaacs Ian |
Open-market sale | 1,716 | $15.92 | $27.3K |
| 2026-05-26 | Platt Joseph P Jr |
Open-market sale | 11,747 | $16.87 | $198.2K |
| 2026-05-19 | Platt Joseph P Jr |
Open-market sale | 23,613 | $18.01 | $425.3K |
| 2026-05-14 | Platt Joseph P Jr |
Open-market sale | 12,000 | $17.50 | $210.0K |
| 2026-05-14 | Sigmon David |
Open-market sale | 7,500 | $17.33 | $130.0K |
| 2026-05-13 | Platt Joseph P Jr |
Open-market sale | 820 | $17.50 | $14.3K |
| 2026-05-12 | Platt Joseph P Jr |
Open-market sale | 6,820 | $17.50 | $119.3K |
| 2026-05-08 | Sigmon David |
Grant/award | 5,006 | — | — |
Well-known investors holding GLRE (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| Two Sigma Investments | 2026-06-30 | 377,142 | $6.1M | 0.0% | Reduced 4% |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 256,686 | $4.2M | 0.0% | Added 18% |
| Renaissance Technologies | 2026-06-30 | 219,230 | $3.5M | 0.0% | Added 182% |
| Millennium Management (Israel Englander) | 2026-06-30 | 151,716 | $2.5M | 0.0% | Added 3% |
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 113,683 | $1.8M | 0.0% | Added 68% |
| D. E. Shaw & Co. | 2026-06-30 | 104,293 | $1.7M | 0.0% | Reduced 32% |
| Point72 Asset Management (Steve Cohen) | 2026-06-30 | 22,399 | $362.4K | 0.0% | Reduced 51% |