Company: GLRE
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001385613-25-000058
Chunk: 49

Company: GREENLIGHT CAPITAL RE, LTD.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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0.92 per share, or 5.1%, to $18.87 per share from $17.95 per share at December 31, 2024.  

For Q1 2025, net income increased by $2.6 million to $29.6 million, compared to Q1 2024 driven mainly by the following:

•Investment income: Increased by $9.1 million primarily driven by our investment in Solasglas, which reported a gain of $32.2 million during Q1 2025, compared to $18.2 million during Q1 2024. Solasglas generated a net return of 7.2% for Q1 2025 compared to a net return of 5.2% for Q1 2024.  This was partially offset by lower investment income on funds withheld by third party Lloyd’s syndicates and lower interest income earned from restricted cash and cash equivalents mainly due to lower yields as a result of the interest rate cuts by central banks during 2024.

•Foreign exchange gains (losses): $4.4 million foreign exchange gains for Q1 2025, compared to $1.6 million foreign exchange losses in Q1 2024, driven mainly by the strengthening of the pound sterling against the U.S. dollar in Q1 2025.

The above was partially offset by:

•Underwriting income: Decreased by $11.2 million due to losses related to the devastating California Wildfires in January 2025, which contributed 14.0 combined ratio points in Q1 2025. The combined ratio increased by 6.7 points on higher net premiums earned. Our current year loss ratio increased by 6.1 points due to 8.3 points increase in CAT losses, offset partially by lower attritional loss ratio. Our prior year net reserve development improved by 0.8 points in Q1 2025. For further information on CAT losses and prior year loss development, refer to Note 7 - Loss and Loss Adjustment Expense Reserves of the Q1 2025 condensed consolidated financial statements. 

•Income tax expense: Increased by $0.8 million, or 147.0%, mainly due to an increase in taxable income from our Irish and U.K. subsidiaries driven by better underwriting results and higher investment returns.

Results by Segment

The following is a further discussion and analysis for each reporting segment.

Open Market Segment

Results for the Open Market segment were as follows: