Company: GLRE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001385613-25-000113
Chunk: 73

Company: GREENLIGHT CAPITAL RE, LTD.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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 2025 compared to Q3 2024, mainly due to an increase in net premiums earned in the Open Market segment, partially offset by an increase in incentive compensation expense based on the company’s stronger consolidated underwriting results.

The underwriting expense ratio decreased by 0.6 points to 3.6% in YTD 2025 compared to YTD 2024, for the same reason as for Q3 2025, coupled with lower stock compensation expense attributable to the Open Market segment.

Net investment income

For the Open Markets segment, net investment income declined by 39.9% to $5.6 million in Q3 2025, compared to Q3 2024, and by 46.4% to $17.0 million for YTD 2025, compared YTD 2024. 

The decrease for both periods was predominantly due to 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 the second half of 2024.

Income (loss) before income taxes

Income before income taxes for the Open Market segment was $27.9 million for Q3 2025, compared to $16.3 million for Q3 2024. The increase was driven predominantly by improved underwriting results and partially offset by lower net investment income.

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Income before income taxes for the Open Market segment was $41.5 million for YTD 2025, compared to $51.0 million for YTD 2024. The decrease was predominantly attributable to the lower net investment income and partially offset by improved underwriting results.

Innovations Segment

Results for the Innovations segment were as follows:

Three months ended September 30Nine months ended September 302025% Change20242025% Change2024Gross premiums written$29,393 57.4 %$18,675 $84,455 14.0 %$74,062 Net premiums written$22,318 57.5 %$14,170 $69,005 10.2 %$62,626 Net premiums earned$21,000 (3.6)%$21,793 $61,391 (8.8)%$67,338 Net loss and LAE incurred(11,412)(12,223)(37,002)(38,984)Acquisition costs(6