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Greenlight Capital Re Q1 2025 Earnings Report
Greenlight Capital Re reported an increase in net income and total investment income, driven by strong performance from its investment in Solasglas, despite an underwriting loss.
Key Takeaways
Greenlight Capital Re reported a net income of $29.6 million for Q1 2025, an increase of $2.6 million over Q1 2024. This was primarily due to strong performance from its investment in Solasglas and favorable foreign exchange movement, partially offset by an underwriting loss and lower investment-related income from Lloyd’s syndicates.
Net income increased by $2.6 million to $29.6 million, primarily due to strong investment performance.
Total investment income increased by $9.1 million, driven by a 7.2% net return from investment in Solasglas.
Gross premiums written increased by 14.1% to $247.9 million.
The company experienced a net underwriting loss of $7.8 million, compared to a net underwriting income of $3.4 million in the prior year, mainly due to California wildfires.
Greenlight Capital Re
Greenlight Capital Re
Greenlight Capital Re Revenue by Segment
Revenue by Segment
Open Market Revenue
CapyFin.comInnovations Revenue
CapyFin.comCorporate Revenue
CapyFin.com Forward Guidance
The company anticipates continued increased competition in the reinsurance market, particularly in the Open Market segment, which may put pressure on headline rates. However, attachment points and other terms & conditions are largely holding firm. The company will continue to write business where it believes it is adequately compensated for the risk. The global economic outlook remains uncertain with persistent inflationary trends, and the company will continue to monitor and re-position its investment portfolio accordingly.
Positive Outlook
- Market conditions are still broadly positive, allowing for continued business where risk is adequately compensated.
- The company has adjusted its risk appetite to take a more cautious stance toward casualty business, indicating proactive risk management.
- DME Advisors regularly monitors and re-positions Solasglas’ investment portfolio to manage inflation impact.
- DME Advisors pivoted to a bearish stance during Q1 2025, lowering exposure and adding market hedges for tail protection.
- Existing capital base and internally generated funds are expected to be sufficient for implementing business strategy.
Challenges Ahead
- Increased competition from existing and new reinsurance markets, predominantly in the Open Market segment, is putting pressure on headline rates.
- Uncertain global economic outlook with potential for persistent inflationary trends.
- Trade policies enacted by the U.S. Administration caused additional uncertainty and volatility.
- The company will continue to monitor economic data and additional policies that may impact its business.
- The company has taken a more cautious stance toward the casualty business in its Open Market segment.