Company: GLRE
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001385613-25-000058
Chunk: 8

Company: GREENLIGHT CAPITAL RE, LTD.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 8
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 losses in Q1 2024 predominantly due to the Baltimore bridge loss.

The reduction in attritional loss ratio was driven by the change in business mix, particularly a decrease in earned premiums from our multiline business at higher attritional loss ratio and an increase in property and specialty lines at lower attritional loss ratio.  This was partially offset by an increase in attritional loss ratio on our casualty line in response to current economic and social inflation trends.

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Prior Year Reserve Development Ratio

Prior year reserve development ratio increased by 2.2% in Q1 2025 compared to Q1 2024.  Refer to Note 7 Loss and LAE Reserves to the condensed consolidated financial statements for further details on the lines of business and prior year development.

Acquisition cost ratio

The acquisition cost ratio increased by 1.8 points in Q1 2025 compared to Q1 2024, primarily due to an increase in acquisition costs from the FAL business included in our multiline business, driven by higher fixed acquisition costs from new syndicate-in-a-box programs. 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