Company: GLRE
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001385613-25-000007
Chunk: 581

Company: GREENLIGHT CAPITAL RE, LTD.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 1A
Chunk 581
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,468 Estimates for Catastrophe EventsAt December 31, 2024 and 2023, the Company’s net reserves for losses and LAE include estimated amounts for several catastrophe and weather-related events  (the “CAT losses”).The determination of the net reserves for losses and LAE related to CAT events represent the Company’s best estimate of losses and LAE that have been incurred at December 31, 2024. The determination of these net reserves for losses and LAE is estimated by management after a catastrophe occurs by completing an in-depth analysis of individual contracts which could potentially have been impacted by the CAT event.  This in-depth analysis may rely on several sources of information including:•catastrophe bulletins published by various independent statistical reporting agencies;•estimates of the size of insured industry losses from the CAT event and the Company’s corresponding market share;•a review of the Company’s reinsurance contracts to identify those contracts which may be exposed to the CAT event;•a review of modeled loss estimates based on information previously reported by customers and brokers, including exposure data obtained during the underwriting process;•discussions of the impact of the event with customers and brokers; and•a review of the coverage provided by the Company’s retrocession contracts (ceded reinsurance).

F-22

While the Company believes its estimate of net reserves for losses and LAE is adequate for CAT losses that have been incurred at December 31, 2024 based on current facts and circumstances, the Company monitors changes in paid and incurred losses in relation to each catastrophe in subsequent reporting periods and adjustments are made to estimates of ultimate losses for each event if there are developments that are different from previous expectations. The magnitude and volume of losses arising from CAT events is inherently uncertain. Adjustments are recorded in the period in which they are identified.  Accordingly, actual losses for CAT events may ultimately differ materially from the Company’s current estimates. CAT events in 2024During the year ended December 31, 2024, the Company incurred net CAT losses of $57.5 million driven mainly by the Baltimore Bridge collapse, Hurricanes Helene and Milton, the severe convective storms in the U.S. (the “U.S. tornados”) and various marine, energy and aviation related events.  CAT events in 2023During the year ended December 31, 2023, the Company incurred net CAT losses of $28.8 million driven mainly by the U.S. tornados and a Mexican state-owned oil