Company: GLRE
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001385613-25-000058
Chunk: 53

Company: GREENLIGHT CAPITAL RE, LTD.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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. This was partially offset by the lower acquisition costs ratio resulting from the change in business mix.

Underwriting expense ratio

The underwriting expense ratio decreased by 1.5 points to 3.3% in Q1 2025 compared to Q1 2024, mainly due to an increase in net premiums earned, coupled with lower stock compensation expense attributable to the Open Market segment.  Additionally, interest expense from deposit contracts was 0.4% point lower in Q1 2025 compared to Q1 2024.

Income (loss) before income taxes

Loss before income taxes for the Open Market segment was $3.2 million for Q1 2025, compared to income before income taxes of $17.6 million for Q1 2024.  This change was driven predominantly by higher CAT losses related to the California wildfires, coupled with lower investment income on funds withheld by third party Lloyd’s syndicates and lower interest income earned from restricted cash and cash equivalents mainly as a result of the interest rate cuts by central banks during 2024.

Innovations Segment

Results for the Innovations segment were as follows:

Three months ended March 312025% Change2024Gross premiums written$27,466 (8.7)%$30,068 Net premiums written$23,971 (8.7)%$26,244 Net premiums earned$19,005 (5.9)%$20,197 Net loss and LAE incurred(10,346)(13,127)Acquisition costs(6,033)(6,053)Other underwriting expenses(1,561)(861)Underwriting income (loss)1,065 156 Net investment income448 (344.8)%(183)Corporate and other expenses(572)(3.1)%(590)Income (loss) before income taxes$941 $(617)Underwriting ratios:2025% Point Change2024Loss ratio54.4 %(10.6)%65.0 %Acquisition cost ratio31.7 %1.7 %30.0 %Composite ratio86.1 %(8.9)%95.0 %Underwriting expenses ratio8.2 %3.9 %4.3 %Combined ratio94.3 %(5.0)%99.3 %

Gross Premiums Written

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Gross premiums written by line of business were as follows:

Three months ended March 312025