Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-33493 | |
Entity Registrant Name | GREENLIGHT CAPITAL RE, LTD. | |
Entity Incorporation, State or Country Code | E9 | |
Entity Address, Address Line One | 65 Market Street | |
Entity Address, Address Line Two | Suite 1207, Jasmine Court | |
Entity Address, City or Town | Camana Bay | |
Entity Address, Country | KY | |
Entity Address, Postal Zip Code | KY1-1205 | |
City Area Code | 205 | |
Local Phone Number | 291-3440 | |
Title of 12(b) Security | Ordinary Shares | |
Trading Symbol | GLRE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 35,337,407 | |
Entity Central Index Key | 0001385613 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investments | ||
Investment in related party investment fund | $ 228,991 | $ 178,197 |
Other investments | 67,648 | 70,279 |
Total investments | 296,639 | 248,476 |
Cash and cash equivalents | 41,302 | 38,238 |
Restricted cash and cash equivalents | 622,624 | 668,310 |
Reinsurance balances receivable (net of allowance for expected credit losses of 2023: $801 and 2022: $356) | 640,391 | 505,555 |
Loss and loss adjustment expenses recoverable (net of allowance for expected credit losses of 2023: $117 and 2022: $62) | 28,191 | 13,239 |
Deferred acquisition costs | 85,102 | 82,391 |
Unearned premiums ceded | 18,700 | 18,153 |
Other assets | 6,680 | 6,019 |
Total assets | 1,739,629 | 1,580,381 |
Liabilities | ||
Loss and loss adjustment expense reserves | 658,234 | 555,468 |
Unearned premium reserves | 340,582 | 307,820 |
Reinsurance balances payable | 69,882 | 105,135 |
Funds withheld | 13,406 | 21,907 |
Other liabilities | 6,781 | 6,397 |
Debt | 74,879 | 80,534 |
Total liabilities | 1,163,764 | 1,077,261 |
Commitments and Contingencies (Note 11) | ||
Shareholders' equity | ||
Preferred share capital (par value $0.10; authorized, 50,000,000; none issued) | 0 | 0 |
Ordinary share capital (par value $0.10; authorized, 125,000,000; issued and outstanding, 35,337,407 (2022: Class A: par value $0.10; authorized, 100,000,000; issued and outstanding, 28,569,346: Class B: 2022: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,715) | 3,534 | 3,482 |
Additional paid-in capital | 481,908 | 478,439 |
Retained earnings | 90,423 | 21,199 |
Total shareholders' equity | 575,865 | 503,120 |
Total liabilities and equity | $ 1,739,629 | $ 1,580,381 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Allowance for expected credit losses | $ 801 | $ 356 |
Loss and loss adjustment expenses recoverable, allowance | $ 117 | $ 62 |
Preferred share capital, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred share capital, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred share capital, issued (in shares) | 0 | 0 |
Ordinary share capital, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Ordinary share capital, authorized (in shares) | 125,000,000 | 125,000,000 |
Ordinary share capital, issued (in shares) | 35,337,407 | |
Ordinary share capital, outstanding (in shares) | 35,337,407 | 0 |
Class A | ||
Ordinary share capital, par value (in dollars per share) | $ 0.10 | |
Ordinary share capital, authorized (in shares) | 100,000,000 | |
Ordinary share capital, issued (in shares) | 28,569,346 | |
Ordinary share capital, outstanding (in shares) | 0 | 28,569,346 |
Class B | ||
Ordinary share capital, par value (in dollars per share) | $ 0.10 | |
Ordinary share capital, authorized (in shares) | 25,000,000 | |
Ordinary share capital, issued (in shares) | 6,254,715 | |
Ordinary share capital, outstanding (in shares) | 0 | 6,254,715 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Gross premiums written | $ 183,074 | $ 155,146 | $ 524,472 | $ 435,812 |
Gross premiums ceded | (14,789) | (8,801) | (35,740) | (21,973) |
Net premiums written | 168,285 | 146,345 | 488,732 | 413,839 |
Change in net unearned premium reserves | (5,175) | (24,397) | (43,030) | (55,747) |
Net premiums earned | 163,110 | 121,948 | 445,702 | 358,092 |
Income (loss) from investment in related party investment fund (net of related party expenses - Note 3) | (1,853) | 8,521 | 27,791 | 24,474 |
Net investment income (loss) | 6,958 | 3,038 | 24,705 | 11,978 |
Other income (expense), net | (1,293) | (6,784) | 13,399 | (13,374) |
Total revenues | 166,922 | 126,723 | 511,597 | 381,170 |
Expenses | ||||
Net loss and loss adjustment expenses incurred | 96,843 | 94,559 | 284,072 | 252,789 |
Acquisition costs | 46,933 | 36,821 | 126,702 | 106,101 |
General and administrative expenses | 7,905 | 7,389 | 27,866 | 22,727 |
Deposit interest expense | 278 | 6,148 | 645 | 6,373 |
Interest expense | 1,457 | 1,091 | 2,977 | 3,411 |
Total expenses | 153,416 | 146,008 | 442,262 | 391,401 |
Income (loss) before income tax | 13,506 | (19,285) | 69,335 | (10,231) |
Income tax (expense) benefit | (29) | 816 | (111) | 823 |
Net income (loss) | $ 13,477 | $ (18,469) | $ 69,224 | $ (9,408) |
Earnings (loss) per share (Note 2) | ||||
Basic (in dollars per share) | $ 0.40 | $ (0.56) | $ 2.03 | $ (0.28) |
Diluted (in dollars per share) | $ 0.39 | $ (0.56) | $ 1.99 | $ (0.28) |
Weighted average number of ordinary shares used in the determination of earnings and loss per share (Note 2) | ||||
Basic (in shares) | 34,070,818 | 33,127,384 | 34,067,012 | 33,119,814 |
Diluted (in shares) | 34,801,864 | 33,127,384 | 34,703,973 | 33,119,814 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Ordinary share capital | Additional paid-in capital | Additional paid-in capital Cumulative Effect, Period of Adoption, Adjustment | Retained earnings (deficit) | Retained earnings (deficit) Cumulative Effect, Period of Adoption, Adjustment |
Beginning balance at Dec. 31, 2021 | $ 3,384 | $ 481,784 | $ (9,505) | |||
Beginning balance (Accounting Standards Update 2020-06) at Dec. 31, 2021 | $ (7,896) | $ 5,362 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issue of ordinary shares, net of forfeitures (Note 8) | 99 | |||||
Repurchase of ordinary shares (Note 8) | (1) | (34) | ||||
Share-based compensation expense | 3,167 | |||||
Net income (loss) | $ (9,408) | (9,408) | ||||
Ending balance at Sep. 30, 2022 | 466,952 | 3,482 | 477,021 | (13,551) | ||
Beginning balance at Jun. 30, 2022 | 3,472 | 475,903 | 4,918 | |||
Increase (Decrease) in Stockholders' Equity | ||||||
Issue of ordinary shares, net of forfeitures (Note 8) | 11 | |||||
Repurchase of ordinary shares (Note 8) | (1) | (34) | ||||
Share-based compensation expense | 1,152 | |||||
Net income (loss) | (18,469) | (18,469) | ||||
Ending balance at Sep. 30, 2022 | 466,952 | 3,482 | 477,021 | (13,551) | ||
Beginning balance at Dec. 31, 2022 | 503,120 | 3,482 | 478,439 | 21,199 | ||
Increase (Decrease) in Stockholders' Equity | ||||||
Issue of ordinary shares, net of forfeitures (Note 8) | 52 | |||||
Share-based compensation expense | 3,469 | |||||
Net income (loss) | 69,224 | 69,224 | ||||
Ending balance at Sep. 30, 2023 | 575,865 | 3,534 | 481,908 | 90,423 | ||
Beginning balance at Jun. 30, 2023 | 3,527 | 480,648 | 76,946 | |||
Beginning balance (Accounting Standards Update 2020-06) at Jun. 30, 2023 | $ 0 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issue of ordinary shares, net of forfeitures (Note 8) | 7 | |||||
Repurchase of ordinary shares (Note 8) | 0 | 0 | ||||
Share-based compensation expense | 1,260 | |||||
Net income (loss) | 13,477 | 13,477 | ||||
Ending balance at Sep. 30, 2023 | $ 575,865 | $ 3,534 | $ 481,908 | $ 90,423 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net income (loss) | $ 69,224 | $ (9,408) |
Adjustments to reconcile net income or loss to net cash provided by (used in) operating activities: | ||
Loss (income) from investments in related party investment fund | (27,791) | (24,474) |
Net realized gain on repurchase of convertible senior notes payable | (265) | (149) |
Net change in unrealized gains and losses on investments and derivatives | 1,359 | (9,237) |
Net realized (gains) losses on investments | 800 | 0 |
Foreign exchange (gains) losses | (7,635) | 10,364 |
Current expected credit losses recognized on reinsurance assets | 500 | 0 |
Share-based compensation expense | 3,521 | 3,266 |
Accretion of debt offering costs and change in interest accruals | (98) | (612) |
Net change in: | ||
Accrued interest receivable | (123) | 0 |
Reinsurance balances receivable | (135,796) | (97,651) |
Loss and loss adjustment expenses recoverable | (15,007) | 496 |
Deferred acquisition costs | (6,127) | (15,810) |
Unearned premiums ceded | (547) | (13,617) |
Other assets, excluding depreciation | (546) | (540) |
Loss and loss adjustment expense reserves | 103,678 | 36,394 |
Unearned premium reserves | 43,593 | 70,589 |
Reinsurance balances payable | (35,253) | 17,548 |
Funds withheld | (8,501) | 7,654 |
Other liabilities | 384 | (2,237) |
Net cash provided by (used in) operating activities | (14,630) | (27,424) |
Cash flows from investing activities | ||
Proceeds from redemptions from related party investment fund | 73,997 | 77,993 |
Contributions to related party investment fund | (97,000) | (65,127) |
Purchases of investments | (5,545) | (8,627) |
Proceeds from maturity of term deposit | 6,000 | 0 |
Net cash provided by (used in) investing activities | (22,548) | 4,239 |
Cash flows from financing activities | ||
Proceeds from term loans, net of expenses | 74,053 | 0 |
Repayment of convertible senior notes payable | (62,147) | 0 |
Repurchases of convertible senior notes payable | (17,198) | (6,384) |
Repurchase of Class A ordinary shares | 0 | (35) |
Net cash provided by (used in) financing activities | (5,292) | (6,419) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (152) | (322) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (42,622) | (29,926) |
Cash, cash equivalents and restricted cash at beginning of the period | 706,548 | 711,101 |
Cash, cash equivalents and restricted cash at end of the period | 663,926 | 681,175 |
Supplementary information | ||
Interest paid in cash | 3,336 | 4,023 |
Income tax paid in cash | $ 56 | $ 0 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Greenlight Capital Re, Ltd. (“GLRE” and, together with its wholly-owned subsidiaries, the “Company”) was incorporated as an exempted company under the Companies Law of the Cayman Islands on July 13, 2004. The Company’s wholly-owned subsidiaries are described below: • Greenlight Reinsurance, Ltd. (“Greenlight Re”), domiciled in the Cayman Islands, is a Class D insurer license issued in accordance with the terms of The Insurance Act, 2010 (as amended) and underlying regulations thereto (the “Act”) and is subject to regulation by the Cayman Islands Monetary Authority. Greenlight Re commenced underwriting in April 2006. • Greenlight Reinsurance Ireland, Designated Activity Company (“GRIL”), domiciled in Ireland since 2010, is authorized as a non-life reinsurance undertaking in accordance with the provisions of the European Union (Insurance and Reinsurance) Regulations 2015. GRIL provides multi-line property and casualty reinsurance capacity to the European broker market and provides GLRE with an additional platform to serve clients located in Europe and North America. • Greenlight Re Marketing (UK) Limited, domiciled in the United Kingdom (“U.K.”) since 2020, is a U.K. company formed to expand GLRE’s presence in the Lloyd’s of London market (“Lloyd’s”). • Greenlight Re Corporate Member Ltd., domiciled in the U.K. since 2014, is a corporate member that became a wholly-owned subsidiary of GLRE in 2023 and provides underwriting capacity for various Lloyd’s syndicates, including Syndicate 3456. • Verdant Holding Company, Ltd., domiciled in the United States since 2008, is an investment holding company. Additionally, through Greenlight Innovation Syndicate 3456 (“Syndicate 3456”), Greenlight Re provides a (re)insurance platform to its growing portfolio of insurtech partnerships. Domiciled in the U.K. since 2022, Syndicate 3456 is authorized to underwrite under the Lloyd’s syndicate-in-a-box model. The ordinary shares of GLRE are listed on Nasdaq Global Select Market under the symbol “GLRE.” These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and with the U.S. Securities and Exchange Commission’s (“SEC”) instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s 2022 Form 10-K, as filed with the SEC on March 8, 2023. These unaudited condensed consolidated financial statements include GLRE and its wholly-owned subsidiaries and all significant intercompany transactions and balances have been eliminated on consolidation. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES There have been no material changes to the Company’s significant accounting policies as described in its 2022 Form 10-K. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from these estimates. The significant estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, loss and loss adjustment expense reserves, premiums written, earned, and receivable, variability underlying risk transfer assessments, allowances for credit losses, share-based compensation, valuation allowances associated with deferred tax assets and investment impairments. Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents The Company maintains cash and cash equivalent balances to collateralize regulatory trusts and letters of credit issued to cedents (see Note 11). The following table reconciles the cash, cash equivalents, and restricted cash reported within the unaudited condensed consolidated balance sheets to the total presented in the unaudited condensed consolidated statements of cash flows: September 30, 2023 December 31, 2022 ($ in thousands) Cash and cash equivalents $ 41,302 $ 38,238 Restricted cash and cash equivalents 622,624 668,310 Total cash, cash equivalents and restricted cash presented in the condensed consolidated statements of unaudited cash flows $ 663,926 $ 706,548 Funds Held by Cedents The caption “Reinsurance balances receivable” in the Company’s unaudited condensed consolidated balance sheets includes financial assets held by cedents. At September 30, 2023, funds held by cedents were $422.4 million (December 31, 2022: $337.4 million). Such amounts include premiums withheld by Lloyd’s syndicates and funds contributed by the Company to Lloyd's as security for members’ underwriting activities. The Lloyd’s syndicates invest a portion of the premiums withheld in investment funds and fixed-maturity securities. The Company records its share of income (or expense) from these assets, in its unaudited condensed consolidated statements of operations under the caption “Other income (expense)” as reported by the syndicates on a quarterly lag basis due to the timing of the availability of these quarterly financial reports. Deposit Assets and Liabilities At September 30, 2023, deposit assets and liabilities were $3.0 million and $5.2 million, respectively (December 31, 2022: $3.1 million and $10.7 million, respectively). For the three and nine months ended September 30, 2023 and 2022, the interest income (expense) on deposit-accounted contracts were as follows: Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 ($ in thousands) ($ in thousands) Deposit interest income $ — $ — $ — $ — Deposit interest expense $ (278) $ (6,148) $ (645) $ (6,373) Deposit interest income (expense), net $ (278) $ (6,148) $ (645) $ (6,373) Foreign Exchange For the three and nine months ended September 30, 2023, $(2.0) million and $7.6 million (three and nine months ended September 30, 2022: $(5.0) million and $(10.4) million), respectively, of foreign exchange gains (losses) were included in the Company’s net income in the unaudited condensed consolidated statements of operations under the caption of “Other income (expense), net”. Earnings (Loss) Per Share The following table reconciles net income (loss) and weighted average shares used in computing basic and diluted net income (loss) per share for the three and nine months ended September 30, 2023 and 2022 (expressed in thousands of U.S. dollars, except per share and share amounts): Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 Numerator for earnings per share Net income (loss) - basic $ 13,477 $ (18,469) $ 69,224 $ (9,408) Net income (loss) - diluted $ 13,477 $ (18,469) $ 69,224 $ (9,408) Denominator for earnings per share Weighted average shares outstanding - basic 34,070,818 33,127,384 34,067,012 33,119,814 Effect of dilutive employee and director share-based awards 731,046 — 636,961 — Weighted average shares outstanding - diluted 34,801,864 33,127,384 34,703,973 33,119,814 Anti-dilutive stock options outstanding 652,140 690,337 652,140 690,337 Participating securities excluded from calculation of loss per share — 848,841 — 848,841 Shares potentially issuable in connection with convertible notes excluded from calculation of diluted loss per share — 5,686,747 — 5,773,889 Earnings (loss) per share: Basic $ 0.40 $ (0.56) $ 2.03 $ (0.28) Diluted $ 0.39 $ (0.56) $ 1.99 $ (0.28) |
INVESTMENT IN RELATED PARTY INV
INVESTMENT IN RELATED PARTY INVESTMENT FUND | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN RELATED PARTY INVESTMENT FUND | INVESTMENT IN RELATED PARTY INVESTMENT FUND The Company has entered into the Second Amended and Restated Exempted Limited Partnership Agreement (the “SILP LPA”) of Solasglas Investments, LP (“SILP”), with DME Advisors II, LLC (“DME II”), as General Partner, Greenlight Re, and GRIL, (together, the “GLRE Limited Partners”). SILP has entered into a SILP investment advisory agreement (“IAA”) with DME Advisors. LP (“DME Advisors”), pursuant to which DME Advisors is the investment manager for SILP. DME II and DME Advisors are related to the Company, and each is an affiliate of David Einhorn, Chairman of the Company’s Board of Directors (the “Chairman”). At September 30, 2023, the SILP LPA included the following proviso: “The Investment Portfolio of each Partner will not exceed the product of (a) such Partner’s surplus (Greenlight Re Surplus or GRIL Surplus, as the case may be) multiplied by (b) the Investment Cap (60%), and the General Partner will designate any portion of a Partner’s Investment Portfolio as Designated Securities to effectuate such limit.” The Company has concluded that SILP qualifies as a variable interest entity (“VIE”) under U.S. GAAP. In assessing its interest in SILP, the Company noted the following: • DME II serves as SILP’s general partner and has the power to appoint the investment manager. The Company does not have the power to appoint, change or replace the investment manager or the general partner except “for cause.” Neither of the GLRE Limited Partners can participate in the investment decisions of SILP as long as SILP adheres to the investment guidelines provided within the SILP LPA. For these reasons, the GLRE Limited Partners are not considered to have substantive participating rights or kick-out rights. • DME II holds an interest in excess of 10% of SILP’s net assets, which the Company considers to represent an obligation to absorb losses and a right to receive benefits of SILP that are significant to SILP. Consequently, the Company has concluded that DME II’s interests, not the Company’s, meet both the “power” and “benefits” criteria associated with VIE accounting guidance. Therefore DME II is SILP’s primary beneficiary. The Company presents its investment in SILP in its unaudited condensed consolidated balance sheets in the caption “Investment in related party investment fund.” The Company’s maximum exposure to loss relating to SILP is limited to the net asset value of the GLRE Limited Partners’ investment in SILP. At September 30, 2023, the net asset value of the GLRE Limited Partners’ investment in SILP was $229.0 million (December 31, 2022: $178.2 million), representing 70.3% (December 31, 2022: 69.3%) of SILP’s total net assets. DME II held the remaining 29.7% (December 31, 2022: 30.7%) of SILP’s total net assets. The investment in SILP is recorded at the GLRE Limited Partners’ share of the net asset value of SILP as reported by SILP’s third-party administrator. The GLRE Limited Partners can redeem their assets from SILP for operational purposes by providing 3 business days’ notice to DME II. At September 30, 2023, the majority of SILP’s long investments were composed of cash and publicly traded equity securities, which could be readily liquidated to meet the GLRE Limited Partners’ redemption requests. The Company’s share of the change in the net asset value of SILP for the three and nine months ended September 30, 2023 was $(1.9) million and $27.8 million, respectively (three and nine months ended September 30, 2022: $8.5 million and $24.5 million, respectively), and shown in the caption “Income (loss) from investment in related party investment fund” in the Company’s unaudited condensed consolidated statements of operations. The summarized financial statements of SILP are presented below. Summarized Statement of Assets and Liabilities of Solasglas Investments, LP September 30, 2023 December 31, 2022 ($ in thousands) Assets Investments, at fair value $ 423,807 $ 304,806 Derivative contracts, at fair value 25,128 17,547 Due from brokers 59,298 109,169 Cash and cash equivalents — — Interest and dividends receivable 130 527 Total assets 508,363 432,049 Liabilities and partners’ capital Liabilities Investments sold short, at fair value (154,504) (159,382) Derivative contracts, at fair value (5,232) (12,443) Capital withdrawals payable (170) (75) Due to brokers (21,347) (2,050) Interest and dividends payable (1,008) (760) Other liabilities (429) (159) Total liabilities (182,690) (174,869) Net Assets $ 325,673 $ 257,180 GLRE Limited Partners’ share of Net Assets $ 228,991 $ 178,197 Summarized Statement of Operations of Solasglas Investments, LP Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 ($ in thousands) Investment income Dividend income (net of withholding taxes) $ 273 $ 305 $ 1,624 $ 928 Interest income 2,523 693 6,415 1,028 Total Investment income 2,796 998 8,039 1,956 Expenses Management fee (1,238) (901) (3,469) (2,686) Interest (2,380) (464) (5,387) (1,199) Dividends (659) (356) (1,871) (938) Professional fees and other (507) (262) (1,396) (756) Total expenses (4,784) (1,983) (12,123) (5,579) Net investment income (loss) (1,988) (985) (4,084) (3,623) Realized and change in unrealized gains (losses) Net realized gain (loss) 460 7,221 (2,145) 58,196 Net change in unrealized appreciation (depreciation) (1,191) 6,464 52,601 (17,027) Net gain (loss) on investment transactions (731) 13,685 50,456 41,169 Net income (loss) $ (2,719) $ 12,700 $ 46,372 $ 37,546 GLRE Limited Partners’ share of net income (loss) (1) $ (1,853) $ 8,521 $ 27,791 $ 24,474 (1) Net income (loss) is net of management fees and performance allocation presented below: Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 ($ in thousands) Management fees $ 1,238 $ 901 $ 3,469 $ 2,686 Performance allocation (206) $ 947 3,088 2,719 Total $ 1,032 $ 1,848 $ 6,557 $ 5,405 See Note 10 for further details on related party management fees and performance allocation. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Private investments and unlisted equity securities without readily determinable fair values At September 30, 2023, the Company included the following private investments and unlisted securities without readily determinable fair values in the caption “Other investments”: Cost Unrealized Unrealized Accrued interest Fair value / carrying value ($ in thousands) Private investments and unlisted equities $ 26,702 $ 42,942 $ (4,795) $ — $ 64,849 Debt and convertible debt securities 2,676 — — 123 2,799 Total other investments $ 29,378 $ 42,942 $ (4,795) $ 123 $ 67,648 At December 31, 2022, the Company included the following private investments and unlisted securities without readily determinable fair values in the caption “Other investments”: Cost Unrealized Unrealized Fair value / carrying value ($ in thousands) Private investments and unlisted equities $ 22,787 $ 42,461 $ (2,815) $ 62,433 Debt and convertible debt securities 1,846 — — 1,846 Certificates of deposit 6,000 — — 6,000 Total other investments $ 30,633 $ 42,461 $ (2,815) $ 70,279 The following table presents the carrying values of the private investments and unlisted equity securities carried under the measurement alternative at September 30, 2023 and 2022, and the related adjustments recorded during the periods then ended. Nine months ended September 30 2023 2022 ($ in thousands) Carrying value (1) $ 64,849 $ 61,081 Upward carrying value changes (2) $ 506 $ 11,260 Downward carrying value changes and impairment (3) $ (2,780) $ (1,676) (1) The period-end carrying values reflect cumulative purchases and sales in addition to upward and downward carrying value changes. (2) The cumulative upward carrying value changes from inception to September 30, 2023, totaled $43.4 million. (3) The cumulative downward carrying value changes and impairments from inception to September 30, 2023, totaled $5.9 million. During three and nine months ended September 30, 2023, the Company realized a loss of $nil and $0.8 million, respectively, (three and nine months ended September 30, 2022: $nil), and a corresponding reversal of unrealized loss relating to an investment which was previously fully impaired at December 31, 2022, resulting in no impact to the Company’s net income (loss) for the nine months ended September 30, 2023. Fair Value Hierarchy The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on the extent to which the inputs are observable in the market. The categorization of financial instruments within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: • Level 1: Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. • Level 2: Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. • Level 3: Unobservable inputs supported by little or no market activity and significant to the fair value of the assets and liabilities. The term “unobservable inputs” includes certain pricing models, discounted cash flow methodologies, and similar techniques. Assets measured at fair value on a nonrecurring basis At September 30, 2023 and December 31, 2022, the Company held $53.7 million and $53.6 million, respectively, of private investments and unlisted equities measured at fair value on a nonrecurring basis. The Company classifies these assets as Level 3 within the fair value hierarchy. The following table summarizes the periods between the most recent fair value measurement dates and September 30, 2023, for the private and unlisted equities measured at fair value on a nonrecurring basis: Less than 6 months 6 to 12 months Over 1 year Total ($ in thousands) Fair values measured on a nonrecurring basis $ 18,552 $ 602 $ 34,567 $ 53,721 At September 30, 2023 and December 31, 2022, the Company held $11.1 million and $8.9 million, respectively, of private investments and unlisted equities measured at cost. Assets measured at fair value on a recurring basis Derivative financial instruments The Company uses interest rate swaps in connection with its risk management activities to hedge 50% of the interest rate risk relating to the outstanding Term Loans (see Note 7 ). The interest rate swaps are carried at fair value and are determined using a market approach valuation technique based on significant observable market inputs from third-party pricing vendors. Accordingly, the interest rates swaps are classified as Level 2 within the fair value hierarchy. These derivative instruments are not designated as accounting hedges under U.S. GAAP. For the three and nine months ended September 30, 2023, the Company recognized unrealized gain for the above derivatives of $0.1 million, which are included in other assets in the Condensed Consolidated Balance Sheets, in interest expense in the Condensed Consolidated Statements of Operations, and in net change in unrealized gains and losses on investments and derivatives in the Condensed Consolidated Statements of Cash Flows. Investment in Related Party Investment Fund The Company’s investment in the related party investment fund is measured at fair value using the net asset value practical expedient.Therefore, this investment is not classified within the fair value hierarchy. (See Note 3 for further details on the related party investment fund.) Financial Instruments Disclosed, But Not Carried, at Fair Value The carrying value of debt and convertible debt securities within “Other Investments” (see “Private investments and unlisted equity securities without readily determinable fair values” above) and certificates of deposit with original maturities of one year or less approximates their fair values. The Company classifies these assets as Level 2 within the fair value hierarchy. The Term Loans (see Note 7) represent financial instruments that the Company carries at amortized cost. At September 30, 2023, the carrying values of the Term Loans approximate their fair values. |
LOSS AND LOSS ADJUSTMENT EXPENS
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES | 9 Months Ended |
Sep. 30, 2023 | |
Insurance Loss Reserves [Abstract] | |
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES | LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES At September 30, 2023 and December 31, 2022, loss and loss adjustment expense reserves were composed of the following: September 30, 2023 December 31, 2022 ($ in thousands) Case reserves $ 190,121 $ 184,756 IBNR 468,113 370,712 Total $ 658,234 $ 555,468 A summary of changes in outstanding loss and loss adjustment expense reserves for all lines of business consolidated for the nine months ended September 30, 2023 and 2022 is as follows: Consolidated 2023 2022 ($ in thousands) Gross balance at January 1 $ 555,468 $ 524,010 Less: Losses recoverable (13,239) (11,100) Net balance at January 1 542,229 512,910 Incurred losses related to: Current year 273,570 251,231 Prior years 10,502 1,558 Total incurred 284,072 252,789 Paid losses related to: Current year (41,026) (54,866) Prior years (154,374) (160,094) Total paid (195,400) (214,960) Foreign currency revaluation (858) (20,516) Net balance at September 30 630,043 530,223 Add: Losses recoverable 28,191 10,604 Gross balance at September 30 $ 658,234 $ 540,827 Estimates for Significant Catastrophe Events At September 30, 2023, the Company’s net reserves for losses and loss expenses include estimated amounts for several catastrophe and weather-related events (“CAT loss”). The magnitude and volume of losses arising from these events is inherently uncertain and, consequently, actual losses for these events may ultimately differ, potentially materially, from current estimates. During the nine months ended September 30, 2023, the Company recognized CAT loss, net of reinsurance, of $29.5 million for current year CAT loss events, driven by the Turkey earthquake, Cyclone Gabrielle in New Zealand, the U.S. severe storms, Mexican state-owned oil platform fire, and satellite losses. For the nine months ended September 30, 2022, the Company recognized CAT loss of $39.1 million driven by $13.6 million from the Russian-Ukrainian conflict and $19.5 million from hurricane Ian. Prior Year Reserve Development For the nine months ended September 30, 2023, the estimate of net losses incurred relating to prior accident years increased by $10.5 million, primarily due to the following: • $31.3 million adverse loss development primarily due to reserve strengthening on legacy motor (predominantly 2021 underwriting year), homeowners (primarily deterioration relating to Winter Storm Elliott in December 2022), and workers’ compensation (2021 and prior underwriting years) contracts, coupled with a final claim settlement on a professional liability contract (2008 underwriting year). • The adverse loss development was partially offset by $20.8 million favorable loss development from various prior years’ property catastrophe events and better than expected loss emergence for marine and energy (predominantly 2020 and 2022 underwriting years), group medical (2022 and prior underwriting years) and cyber contracts (predominantly 2021 underwriting year). For the nine months ended September 30, 2022, the estimate of net losses incurred relating to prior accident years increased by $1.6 million, primarily due to the following: • $16.3 million reserve strengthening on motor and health business (2021-2021 underwriting years); a multi-line quota share program (2015, 2016-2019 underwriting years); marine and energy contracts (2020 underwriting year); and a cyber contract (2020 underwriting year). • Offsetting the above adverse loss development, the Company had favorable loss experience driven mostly by mortgage business (2018 underwriting year), excess of loss workers’ compensation contract (2020 underwriting year) as well as favorable CAT loss development relating to small catastrophe events (mainly 2020 and 2021 underwriting years) and COVID-19 (2020 underwriting year) based on updated claims reporting received from cedents. |
RETROCESSION
RETROCESSION | 9 Months Ended |
Sep. 30, 2023 | |
Reinsurance Disclosures [Abstract] | |
RETROCESSION | RETROCESSION For the three and nine months ended September 30, 2023, the Company’s earned ceded premiums were $15.3 million and $35.2 million, respectively (three and nine months ended September 30, 2022: $4.4 million and $8.4 million, respectively). For the three and nine months ended September 30, 2023, loss and loss adjustment expenses recovered and changes in losses recoverable were $9.1 million and $24.8 million, respectively (three and nine months ended September 30, 2022: $2.5 million and $2.5 million, respectively). Retrocession contracts do not relieve the Company from its obligations to its cedents. Failure of retrocessionaires to honor their obligations could result in losses to the Company. At September 30, 2023, the Company’s loss reserves recoverable consisted of (i) $20.2 million (December 31, 2022: $9.5 million) recoverable from unrated retrocessionaires, of which $14.7 million (December 31, 2022: $9.2 million) were secured by cash, letters of credit and collateral held in trust accounts for the benefit of the Company and (ii) $8.1 million (December 31, 2022: $3.8 million) recoverable from retrocessionaires rated A- or above by A.M. Best. The Company regularly evaluates its net credit exposure to assess the ability of the retrocessionaires to honor their respective obligations. At September 30, 2023, the Company’s allowance for expected credit losses was $0.1 million (December 31, 2022: $0.1 million). |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table summarizes the Company’s debt. September 30, 2023 December 31, 2022 ($ in thousands) Term loans $ 75,000 $ — Senior convertible notes — 79,610 Total principal amount $ 75,000 $ 79,610 Accrued interest payable 700 1,331 Less: deferred finance costs (821) (407) Total debt $ 74,879 $ 80,534 Term Loans On June 16, 2023, the Company entered into a Credit Agreement (the “Credit Agreement”) with a group of banks (the “Banks”), for which CIBC Bank USA is acting as administrative agent (the “Administrative Agent”). The Credit Agreement provides, subject to certain customary conditions, for a delayed draw term loan facility (the “Facility”), in an aggregate amount of $75.0 million. Outstanding loans (“Term Loans”) under the Facility will (i) amortize in equal quarterly installments in an aggregate annual amount equal to 5.0% of the outstanding loans and (ii) accrue interest at a rate equal to an adjusted Term Secured Overnight Financing Rate (“SOFR”) plus 3.5% per annum. The Company posted $10.0 million of collateral as security for the Facility. The Facility matures on August 1, 2026. During the three and nine months ended September 30, 2023, the Company borrowed $75.0 million from the Facility, of which $63.4 million was used to repay all of the outstanding Convertible Senior Notes (see below), with the remaining proceeds for general corporate purposes. On August 31, 2023, the Company hedged 50% of the floating interest rate on the Term Loans (see Note 4). The interest rate on the outstanding Terms Loans was 8.9% at September 30, 2023. The Company was in compliance with all covenants relating to the Facility at September 30, 2023. Senior Convertible Notes On August 7, 2018, the Company issued $100.0 million of senior unsecured convertible notes (the “Convertible Notes”), with a maturity date of August 1, 2023. The Convertible Notes bear interest at 4.0%, payable semiannually on February 1 and August 1 of each year beginning February 1, 2019. The conversion price was $17.19 per ordinary share of the Company. As noted above, the Company fully repaid the remaining outstanding Convertible Notes on August 1, 2023, from the proceeds of the new Term Loans. During the three and nine months ended September 30, 2023 the Company repurchased and canceled $nil and $17.2 million of the Convertible Notes, respectively, resulting in realized gains of $nil and $0.3 million, respectively, which is included in “Other income (expense), net”, in the unaudited condensed consolidated statements of operations. As noted above, the Company fully repaid the remaining outstanding Convertible Notes on August 1, 2023, from the proceeds of the new Term Loans. Financing Costs The Company incurred $0.9 million of issuance costs relating to the Credit Agreement, which are deferred and amortized through the maturity of the Facility. The remaining unamortized deferred finance costs are reported separately in the above table. For the three and nine months ended September 30, 2023, the Company recognized interest expense of $1.6 million and $3.1 million, respectively (three and nine months ended September 30, 2022: $1.1 million and $3.4 million, respectively) for the above total debt, which included the interest coupon, the amortization of issuance costs and the change in fair value of the interest rate swap (see Note 4). |
SHARE CAPITAL
SHARE CAPITAL | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
SHARE CAPITAL | SHARE CAPITAL The following table is a summary of the Company’s ordinary shares issued and outstanding: Nine months ended September 30 Nine months ended September 30 2023 2022 Ordinary Class A Class B Class A Class B Balance – beginning of period — 28,569,346 6,254,715 27,589,731 6,254,715 Issue of shares, net of forfeitures 65,394 447,952 — 984,548 — Repurchase of shares — — — (4,933) — Re-designate Class B to Class A shares — 6,254,715 (6,254,715) — — Reclassify Class A to Ordinary shares 35,272,013 (35,272,013) — — — Balance – end of period 35,337,407 — — 28,569,346 6,254,715 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Employee and Director Restricted Shares The following table summarizes the activity for unvested outstanding restricted share awards during the nine months ended September 30, 2023 and 2022: Performance Restricted Shares Service Restricted Shares Number of Weighted Number of Weighted Balance at December 31, 2021 193,149 $ 10.10 753,407 $ 8.68 Granted 601,213 6.82 356,422 7.02 Vested — — (197,002) 10.06 Forfeited — — (8,476) 7.67 Balance at September 30, 2022 794,362 $ 7.62 904,351 $ 7.73 Balance at December 31, 2022 794,362 $ 7.62 832,896 $ 7.76 Granted 357,766 9.85 242,957 10.22 Vested — — (364,006) 6.96 Forfeited (109,105) 9.37 (55,967) 8.43 Balance at September 30, 2023 1,043,023 $ 8.20 655,880 $ 9.05 On July 25, 2023, at the Company’s Annual General Meeting the shareholders approved the Greenlight Capital Re, Ltd. 2023 Omnibus Incentive Plan, or the 2023 Incentive Plan. The 2023 Incentive Plan replaces the Greenlight Capital Re, Ltd. Amended and Restated 2004 Stock Incentive Plan, or the 2004 Stock Incentive Plan, and its subsequent amendments. As a result, the 2004 Stock Incentive Plan share reserve was transferred to the 2023 Incentive Plan and any forfeitures under the 2004 Stock Incentive Plan will become available for grant under the 2023 Incentive Plan. Further, the shareholders approved to increase the maximum number of ordinary shares for which awards may be granted by 2 million ordinary shares. At September 30, 2023, 3,296,771 (December 31, 2022: 2,011,426) Ordinary shares remained available for future issuance under the Company’s 2023 Incentive Plan. The Compensation Committee of the Board of Directors administers the stock incentive plan. For the nine months ended September 30, 2023, the Company granted 535,329 (nine months ended September 30, 2022: 849,872) restricted shares to employees pursuant to the Company’s stock incentive plan. The restricted shares granted to employees in 2023 and 2022 include (i) restricted shares with both performance and service-based vesting conditions (“Performance RSs”) and (ii) restricted shares with only service-based vesting conditions (“Service RSs”). The Service RSs vest evenly each year on January 1, subject to the grantee’s continued service with the Company. If performance goals are achieved, the Performance RSs will cliff vest at the end of a three-year performance period within a range of 25% and 100% of the awarded Performance RSs, with a target of 50%. During the vesting period, the holder of the Service RSs and Performance RSs retains voting rights but is entitled to any dividends declared by the Company only upon vesting. For the nine months ended September 30, 2023, the Company granted 65,394 (nine months ended September 30, 2022: 107,763) restricted Ordinary shares to non-employees directors as part of their remuneration for services to the Company. These restricted shares contain similar restrictions to those issued to employees. They will vest on the earlier of (i) the first anniversary of the date of the share issuance and (ii) the Company’s next annual general meeting, subject to the grantee’s continued service with the Company. During the vesting period, non-employee directors holding these restricted shares retain voting rights and are entitled to any dividends declared by the Company only upon vesting. For the nine months ended September 30, 2023, the total fair value of restricted shares vested was $2.5 million (nine months ended September 30, 2022: $2.0 million). Employee Restricted Stock Units The following table summarizes the activity for unvested outstanding restricted stock units (“RSUs”) during the nine months ended September 30, 2023 and 2022: Performance Restricted Stock Units Service Restricted Stock Units Number of Weighted Number of Weighted Balance at December 31, 2021 — $ — 154,134 $ 8.59 Granted 105,008 6.82 54,207 6.82 Vested — — (35,389) 10.84 Forfeited — — — — Balance at September 30, 2022 105,008 6.82 172,952 7.58 Balance at December 31, 2022 105,008 $ 6.82 172,952 $ 7.58 Granted 71,121 9.85 42,811 9.85 Vested — — (77,695) 6.74 Forfeited — — (1,788) 7.82 Balance at September 30, 2023 176,129 $ 8.04 136,280 $ 8.76 For the nine months ended September 30, 2023, the Company granted 113,932 (nine months ended September 30, 2022: 159,215) RSUs to employees pursuant to the Company’s stock incentive plan. The RSUs include (i) RSUs with both performance and service-based vesting conditions (“Performance RSUs”) and (ii) RSUs with only service-based vesting conditions (“Service RSUs”). The Service RSUs vest evenly each year on January 1, subject to the grantee’s continued service with the Company. If performance goals are achieved, the Performance RSUs will cliff vest at the end of a three-year performance period within a range of 25% and 100% of the awarded Performance RSUs, with a target of 50%. Prior to 2022, the RSUs issued to employees cliff vested three years after the date of issuance, subject to the grantee’s continued service with the Company. For the nine months ended September 30, 2023, the Company issued 77,695 ordinary shares for the vested RSUs. Stock Compensation Expense For the nine months ended September 30, 2023 and 2022, the combined stock compensation expense (net of forfeitures) which was included in the caption “General and administrative expenses” in the Company’s unaudited condensed consolidated statements of operations was $3.5 million and $3.3 million, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Investment Advisory Agreement Each of DME, DME II, and DME Advisors is an affiliate of the Chairman and, therefore, is a related party to the Company. The Company has entered into the SILP LPA (as described in Note 3 of the unaudited condensed consolidated financial statements). DME II receives a performance allocation equal to (with capitalized terms having the meaning provided under the SILP LPA) (a) 10% of the portion of the Positive Performance Change for each limited partner’s capital account that is less than or equal to the positive balance in such limited partner’s Carryforward Account, plus (b) 20% of the portion of the Positive Performance Change for each limited partner’s capital account that exceeds the positive balance in such limited partner’s Carryforward Account. The Carryforward Account for Greenlight Re and GRIL includes the amount of investment losses to be recouped, including any loss generated on the assets invested in SILP, subject to adjustments for redemptions. The loss carry-forward provision in the SILP LPA allows DME II to earn a reduced performance allocation of 10% of profits in years subsequent to any year in which SILP has incurred a loss until all losses are recouped, and an additional amount equal to 150% of the loss is earned. In accordance with the SILP LPA, DME Advisors constructs a levered investment portfolio as agreed by the Company (the “Investment Portfolio”, as defined in the SILP LPA). On September 1, 2018, SILP entered into the IAA with DME Advisors, which entitles DME Advisors to a monthly management fee equal to 0.125% (1.5% on an annual basis) of each limited partner’s Investment Portfolio. The IAA has an initial term ending on August 31, 2023, subject to an automatic extension for successive three-year terms. For a detailed breakdown of management fees and performance compensation for the three and nine months ended September 30, 2023 and 2022 (see Note 3). Pursuant to the SILP LPA and the IAA, the Company has agreed to indemnify DME, DME II, and DME Advisors for any expense, loss, liability, or damage arising out of any claim asserted or threatened in connection with DME Advisors serving as the Company’s or SILP’s investment advisor. The Company will reimburse DME, DME II, and DME Advisors for reasonable costs and expenses of investigating and defending such claims, provided such claims were not caused due to gross negligence, breach of contract, or misrepresentation by DME, DME II, or DME Advisors. The Company incurred no indemnification amounts during the periods presented. Green Brick Partners, Inc. David Einhorn also serves as the Chairman of the Board of Directors of Green Brick Partners, Inc. (“GRBK”), a publicly-traded company. At September 30, 2023, SILP, along with certain affiliates of DME Advisors, collectively owned 29.1% of the issued and outstanding common shares of GRBK. Under applicable securities laws, DME Advisors may sometimes be limited in its ability to trade GRBK shares held in SILP. At September 30, 2023, SILP held 2.7 million shares of GRBK. Service Agreement The Company has entered into a service agreement with DME Advisors, pursuant to which DME Advisors provides certain investor relations services to the Company for compensation of five thousand dollars per month (plus expenses). The agreement automatically renews annually until terminated by either the Company or DME Advisors for any reason with 30 days prior written notice to the other party. Collateral Assets Investment Management Agreement Effective January 1, 2019, the Company (and its subsidiaries) entered into a collateral assets investment management agreement (the “CMA”) with DME Advisors, pursuant to which DME Advisors manages certain assets of the Company that are not subject to the SILP LPA and are held by the Company to provide collateral required by the cedents in the form of trust accounts and letters of credit. In accordance with the CMA, DME Advisors receives no fees and is required to comply with the collateral investment guidelines. The CMA can be terminated by any of the parties upon 30 days’ prior written notice to the other parties. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Letters of Credit and Trusts At September 30, 2023, the Company had the following committed letter of credit facility: Maximum Facility Limit Termination Date Notice period required for termination ($ in thousands) Citibank Europe plc $ 275,000 August 20, 2024 120 days before the termination date In addition, the Company has a $14.0 million uncommitted letter of credit facility with Citibank Europe plc. At September 30, 2023, an aggregate amount of $268.2 million (December 31, 2022: $203.9 million) in letters of credit was issued under both the committed and uncommitted credit facilities. At September 30, 2023, the Company had pledged total cash and cash equivalents with a fair value in the aggregate of $269.0 million (December 31, 2022: $204.7 million) as collateral against the letters of credit issued and included in the caption “Restricted cash and cash equivalents” in the Company’s unaudited condensed consolidated balance sheets. The Company was in compliance with all the covenants of these facilities at September 30, 2023. The Company has also established regulatory trust arrangements for certain cedents. At September 30, 2023, collateral of $342.0 million (December 31, 2022: $463.7 million) was provided to cedents in the form of regulatory trust accounts and included in the caption “Restricted cash and cash equivalents” in the Company’s unaudited condensed consolidated balance sheets. Litigation |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company has one operating segment, Property & Casualty (Re)insurance. The following tables provide a breakdown of the Company’s gross premiums written by line and class of business, and by geographic area of risks insured for the periods indicated: Gross Premiums Written by Line of Business Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 ($ in thousands) ($ in thousands) Property Commercial $ 16,105 8.8 % $ 2,146 1.4 % $ 45,236 8.6 % $ 8,648 2.0 % Motor 122 0.1 206 0.1 706 0.1 768 0.2 Personal 16,713 9.1 17,669 11.4 48,718 9.3 49,425 11.3 Total Property 32,940 18.0 20,021 12.9 94,660 18.0 58,841 13.5 Casualty General Liability 31,325 17.1 13,798 8.9 79,401 15.1 40,523 9.3 Motor Liability 2,917 1.6 565 0.4 11,223 2.1 4,061 0.9 Professional Liability 3,206 1.8 242 0.2 9,478 1.8 496 0.1 Workers' Compensation 4,484 2.4 7,216 4.6 11,542 2.2 25,504 5.9 Multi-line 67,032 36.6 69,419 44.7 172,916 33.0 177,647 40.8 Total Casualty 108,964 59.5 91,240 58.8 284,560 54.2 248,231 57.0 Other Accident & Health 1,695 0.9 5,879 3.8 6,184 1.2 10,377 2.4 Financial 17,059 9.3 20,065 12.9 48,406 9.2 56,481 12.9 Marine 3,973 2.2 4,675 3.0 23,967 4.6 18,425 4.2 Other Specialty 18,443 10.1 13,266 8.6 66,695 12.8 43,457 10.0 Total Other 41,170 22.5 43,885 28.3 145,252 27.8 128,740 29.5 $ 183,074 100.0 % $ 155,146 100.0 % $ 524,472 100.0 % $ 435,812 100.0 % Gross Premiums Written by Geographic Area of Risks Insured Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 ($ in thousands) ($ in thousands) U.S. and Caribbean $ 77,274 42.2 % $ 72,105 46.5 % $ 206,714 39.4 % $ 224,324 51.5 % Worldwide (1) 88,037 48.1 79,512 51.3 269,430 51.4 196,197 45.0 Europe (2) 1,868 1.0 (1,797) (1.2) 8,936 1.7 2,962 0.7 Asia 15,895 8.7 5,326 3.4 39,392 7.5 12,329 2.8 $ 183,074 100.0 % $ 155,146 100.0 % $ 524,472 100.0 % $ 435,812 100.0 % (1) “Worldwide” is composed of contracts that reinsure risks in more than one geographic area and may include risks in the U.S. (2) The negative balance represents the reversal of premiums due to premium adjustments, termination of contracts, or premium returned upon novation or commutation of contracts. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 13,477 | $ (18,469) | $ 69,224 | $ (9,408) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from these estimates. The significant estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, loss and loss adjustment expense reserves, premiums written, earned, and receivable, variability underlying risk transfer assessments, allowances for credit losses, share-based compensation, valuation allowances associated with deferred tax assets and investment impairments. |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents |
Funds Held by Cedents | Funds Held by CedentsThe caption “Reinsurance balances receivable” in the Company’s unaudited condensed consolidated balance sheets includes financial assets held by cedents. At September 30, 2023, funds held by cedents were $422.4 million (December 31, 2022: $337.4 million). Such amounts include premiums withheld by Lloyd’s syndicates and funds contributed by the Company to Lloyd's as security for members’ underwriting activities. The Lloyd’s syndicates invest a portion of the premiums withheld in investment funds and fixed-maturity securities. The Company records its share of income (or expense) from these assets, in its unaudited condensed consolidated statements of operations under the caption “Other income (expense)” as reported by the syndicates on a quarterly lag basis due to the timing of the availability of these quarterly financial reports. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table reconciles the cash, cash equivalents, and restricted cash reported within the unaudited condensed consolidated balance sheets to the total presented in the unaudited condensed consolidated statements of cash flows: September 30, 2023 December 31, 2022 ($ in thousands) Cash and cash equivalents $ 41,302 $ 38,238 Restricted cash and cash equivalents 622,624 668,310 Total cash, cash equivalents and restricted cash presented in the condensed consolidated statements of unaudited cash flows $ 663,926 $ 706,548 |
Schedule of Restrictions on Cash and Cash Equivalents | The following table reconciles the cash, cash equivalents, and restricted cash reported within the unaudited condensed consolidated balance sheets to the total presented in the unaudited condensed consolidated statements of cash flows: September 30, 2023 December 31, 2022 ($ in thousands) Cash and cash equivalents $ 41,302 $ 38,238 Restricted cash and cash equivalents 622,624 668,310 Total cash, cash equivalents and restricted cash presented in the condensed consolidated statements of unaudited cash flows $ 663,926 $ 706,548 |
Schedule of Interest Income (Expense) | For the three and nine months ended September 30, 2023 and 2022, the interest income (expense) on deposit-accounted contracts were as follows: Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 ($ in thousands) ($ in thousands) Deposit interest income $ — $ — $ — $ — Deposit interest expense $ (278) $ (6,148) $ (645) $ (6,373) Deposit interest income (expense), net $ (278) $ (6,148) $ (645) $ (6,373) |
Schedule of Net Income (Loss) and Weighted Average Number of Shares | The following table reconciles net income (loss) and weighted average shares used in computing basic and diluted net income (loss) per share for the three and nine months ended September 30, 2023 and 2022 (expressed in thousands of U.S. dollars, except per share and share amounts): Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 Numerator for earnings per share Net income (loss) - basic $ 13,477 $ (18,469) $ 69,224 $ (9,408) Net income (loss) - diluted $ 13,477 $ (18,469) $ 69,224 $ (9,408) Denominator for earnings per share Weighted average shares outstanding - basic 34,070,818 33,127,384 34,067,012 33,119,814 Effect of dilutive employee and director share-based awards 731,046 — 636,961 — Weighted average shares outstanding - diluted 34,801,864 33,127,384 34,703,973 33,119,814 Anti-dilutive stock options outstanding 652,140 690,337 652,140 690,337 Participating securities excluded from calculation of loss per share — 848,841 — 848,841 Shares potentially issuable in connection with convertible notes excluded from calculation of diluted loss per share — 5,686,747 — 5,773,889 Earnings (loss) per share: Basic $ 0.40 $ (0.56) $ 2.03 $ (0.28) Diluted $ 0.39 $ (0.56) $ 1.99 $ (0.28) |
INVESTMENT IN RELATED PARTY I_2
INVESTMENT IN RELATED PARTY INVESTMENT FUND (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Financial Information of Investment | The summarized financial statements of SILP are presented below. Summarized Statement of Assets and Liabilities of Solasglas Investments, LP September 30, 2023 December 31, 2022 ($ in thousands) Assets Investments, at fair value $ 423,807 $ 304,806 Derivative contracts, at fair value 25,128 17,547 Due from brokers 59,298 109,169 Cash and cash equivalents — — Interest and dividends receivable 130 527 Total assets 508,363 432,049 Liabilities and partners’ capital Liabilities Investments sold short, at fair value (154,504) (159,382) Derivative contracts, at fair value (5,232) (12,443) Capital withdrawals payable (170) (75) Due to brokers (21,347) (2,050) Interest and dividends payable (1,008) (760) Other liabilities (429) (159) Total liabilities (182,690) (174,869) Net Assets $ 325,673 $ 257,180 GLRE Limited Partners’ share of Net Assets $ 228,991 $ 178,197 Summarized Statement of Operations of Solasglas Investments, LP Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 ($ in thousands) Investment income Dividend income (net of withholding taxes) $ 273 $ 305 $ 1,624 $ 928 Interest income 2,523 693 6,415 1,028 Total Investment income 2,796 998 8,039 1,956 Expenses Management fee (1,238) (901) (3,469) (2,686) Interest (2,380) (464) (5,387) (1,199) Dividends (659) (356) (1,871) (938) Professional fees and other (507) (262) (1,396) (756) Total expenses (4,784) (1,983) (12,123) (5,579) Net investment income (loss) (1,988) (985) (4,084) (3,623) Realized and change in unrealized gains (losses) Net realized gain (loss) 460 7,221 (2,145) 58,196 Net change in unrealized appreciation (depreciation) (1,191) 6,464 52,601 (17,027) Net gain (loss) on investment transactions (731) 13,685 50,456 41,169 Net income (loss) $ (2,719) $ 12,700 $ 46,372 $ 37,546 GLRE Limited Partners’ share of net income (loss) (1) $ (1,853) $ 8,521 $ 27,791 $ 24,474 (1) Net income (loss) is net of management fees and performance allocation presented below: Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 ($ in thousands) Management fees $ 1,238 $ 901 $ 3,469 $ 2,686 Performance allocation (206) $ 947 3,088 2,719 Total $ 1,032 $ 1,848 $ 6,557 $ 5,405 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Other Investments | At September 30, 2023, the Company included the following private investments and unlisted securities without readily determinable fair values in the caption “Other investments”: Cost Unrealized Unrealized Accrued interest Fair value / carrying value ($ in thousands) Private investments and unlisted equities $ 26,702 $ 42,942 $ (4,795) $ — $ 64,849 Debt and convertible debt securities 2,676 — — 123 2,799 Total other investments $ 29,378 $ 42,942 $ (4,795) $ 123 $ 67,648 At December 31, 2022, the Company included the following private investments and unlisted securities without readily determinable fair values in the caption “Other investments”: Cost Unrealized Unrealized Fair value / carrying value ($ in thousands) Private investments and unlisted equities $ 22,787 $ 42,461 $ (2,815) $ 62,433 Debt and convertible debt securities 1,846 — — 1,846 Certificates of deposit 6,000 — — 6,000 Total other investments $ 30,633 $ 42,461 $ (2,815) $ 70,279 |
Schedule of Carrying Values of Private Investments and Unlisted Equity Securities Carried under Measurement Alternative | The following table presents the carrying values of the private investments and unlisted equity securities carried under the measurement alternative at September 30, 2023 and 2022, and the related adjustments recorded during the periods then ended. Nine months ended September 30 2023 2022 ($ in thousands) Carrying value (1) $ 64,849 $ 61,081 Upward carrying value changes (2) $ 506 $ 11,260 Downward carrying value changes and impairment (3) $ (2,780) $ (1,676) (1) The period-end carrying values reflect cumulative purchases and sales in addition to upward and downward carrying value changes. (2) The cumulative upward carrying value changes from inception to September 30, 2023, totaled $43.4 million. (3) The cumulative downward carrying value changes and impairments from inception to September 30, 2023, totaled $5.9 million. |
Assets Measured at Fair Value on a Nonrecurring Basis | The Company classifies these assets as Level 3 within the fair value hierarchy. The following table summarizes the periods between the most recent fair value measurement dates and September 30, 2023, for the private and unlisted equities measured at fair value on a nonrecurring basis: Less than 6 months 6 to 12 months Over 1 year Total ($ in thousands) Fair values measured on a nonrecurring basis $ 18,552 $ 602 $ 34,567 $ 53,721 |
LOSS AND LOSS ADJUSTMENT EXPE_2
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | At September 30, 2023 and December 31, 2022, loss and loss adjustment expense reserves were composed of the following: September 30, 2023 December 31, 2022 ($ in thousands) Case reserves $ 190,121 $ 184,756 IBNR 468,113 370,712 Total $ 658,234 $ 555,468 A summary of changes in outstanding loss and loss adjustment expense reserves for all lines of business consolidated for the nine months ended September 30, 2023 and 2022 is as follows: Consolidated 2023 2022 ($ in thousands) Gross balance at January 1 $ 555,468 $ 524,010 Less: Losses recoverable (13,239) (11,100) Net balance at January 1 542,229 512,910 Incurred losses related to: Current year 273,570 251,231 Prior years 10,502 1,558 Total incurred 284,072 252,789 Paid losses related to: Current year (41,026) (54,866) Prior years (154,374) (160,094) Total paid (195,400) (214,960) Foreign currency revaluation (858) (20,516) Net balance at September 30 630,043 530,223 Add: Losses recoverable 28,191 10,604 Gross balance at September 30 $ 658,234 $ 540,827 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the Company’s debt. September 30, 2023 December 31, 2022 ($ in thousands) Term loans $ 75,000 $ — Senior convertible notes — 79,610 Total principal amount $ 75,000 $ 79,610 Accrued interest payable 700 1,331 Less: deferred finance costs (821) (407) Total debt $ 74,879 $ 80,534 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table is a summary of the Company’s ordinary shares issued and outstanding: Nine months ended September 30 Nine months ended September 30 2023 2022 Ordinary Class A Class B Class A Class B Balance – beginning of period — 28,569,346 6,254,715 27,589,731 6,254,715 Issue of shares, net of forfeitures 65,394 447,952 — 984,548 — Repurchase of shares — — — (4,933) — Re-designate Class B to Class A shares — 6,254,715 (6,254,715) — — Reclassify Class A to Ordinary shares 35,272,013 (35,272,013) — — — Balance – end of period 35,337,407 — — 28,569,346 6,254,715 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Activity for Unvested Restricted Share Awards and Employee Restricted Stock Units | The following table summarizes the activity for unvested outstanding restricted share awards during the nine months ended September 30, 2023 and 2022: Performance Restricted Shares Service Restricted Shares Number of Weighted Number of Weighted Balance at December 31, 2021 193,149 $ 10.10 753,407 $ 8.68 Granted 601,213 6.82 356,422 7.02 Vested — — (197,002) 10.06 Forfeited — — (8,476) 7.67 Balance at September 30, 2022 794,362 $ 7.62 904,351 $ 7.73 Balance at December 31, 2022 794,362 $ 7.62 832,896 $ 7.76 Granted 357,766 9.85 242,957 10.22 Vested — — (364,006) 6.96 Forfeited (109,105) 9.37 (55,967) 8.43 Balance at September 30, 2023 1,043,023 $ 8.20 655,880 $ 9.05 Performance Restricted Stock Units Service Restricted Stock Units Number of Weighted Number of Weighted Balance at December 31, 2021 — $ — 154,134 $ 8.59 Granted 105,008 6.82 54,207 6.82 Vested — — (35,389) 10.84 Forfeited — — — — Balance at September 30, 2022 105,008 6.82 172,952 7.58 Balance at December 31, 2022 105,008 $ 6.82 172,952 $ 7.58 Granted 71,121 9.85 42,811 9.85 Vested — — (77,695) 6.74 Forfeited — — (1,788) 7.82 Balance at September 30, 2023 176,129 $ 8.04 136,280 $ 8.76 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Letters of Credit Facilities | At September 30, 2023, the Company had the following committed letter of credit facility: Maximum Facility Limit Termination Date Notice period required for termination ($ in thousands) Citibank Europe plc $ 275,000 August 20, 2024 120 days before the termination date |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Gross Premiums Written by Line of Business | Gross Premiums Written by Line of Business Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 ($ in thousands) ($ in thousands) Property Commercial $ 16,105 8.8 % $ 2,146 1.4 % $ 45,236 8.6 % $ 8,648 2.0 % Motor 122 0.1 206 0.1 706 0.1 768 0.2 Personal 16,713 9.1 17,669 11.4 48,718 9.3 49,425 11.3 Total Property 32,940 18.0 20,021 12.9 94,660 18.0 58,841 13.5 Casualty General Liability 31,325 17.1 13,798 8.9 79,401 15.1 40,523 9.3 Motor Liability 2,917 1.6 565 0.4 11,223 2.1 4,061 0.9 Professional Liability 3,206 1.8 242 0.2 9,478 1.8 496 0.1 Workers' Compensation 4,484 2.4 7,216 4.6 11,542 2.2 25,504 5.9 Multi-line 67,032 36.6 69,419 44.7 172,916 33.0 177,647 40.8 Total Casualty 108,964 59.5 91,240 58.8 284,560 54.2 248,231 57.0 Other Accident & Health 1,695 0.9 5,879 3.8 6,184 1.2 10,377 2.4 Financial 17,059 9.3 20,065 12.9 48,406 9.2 56,481 12.9 Marine 3,973 2.2 4,675 3.0 23,967 4.6 18,425 4.2 Other Specialty 18,443 10.1 13,266 8.6 66,695 12.8 43,457 10.0 Total Other 41,170 22.5 43,885 28.3 145,252 27.8 128,740 29.5 $ 183,074 100.0 % $ 155,146 100.0 % $ 524,472 100.0 % $ 435,812 100.0 % |
Schedule of Gross Premiums Written by Geographic Area of Risks Insured | Gross Premiums Written by Geographic Area of Risks Insured Three months ended September 30 Nine months ended September 30 2023 2022 2023 2022 ($ in thousands) ($ in thousands) U.S. and Caribbean $ 77,274 42.2 % $ 72,105 46.5 % $ 206,714 39.4 % $ 224,324 51.5 % Worldwide (1) 88,037 48.1 79,512 51.3 269,430 51.4 196,197 45.0 Europe (2) 1,868 1.0 (1,797) (1.2) 8,936 1.7 2,962 0.7 Asia 15,895 8.7 5,326 3.4 39,392 7.5 12,329 2.8 $ 183,074 100.0 % $ 155,146 100.0 % $ 524,472 100.0 % $ 435,812 100.0 % (1) “Worldwide” is composed of contracts that reinsure risks in more than one geographic area and may include risks in the U.S. (2) The negative balance represents the reversal of premiums due to premium adjustments, termination of contracts, or premium returned upon novation or commutation of contracts. |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 41,302 | $ 38,238 | ||
Restricted cash and cash equivalents | 622,624 | 668,310 | ||
Total cash, cash equivalents and restricted cash presented in the condensed consolidated statements of unaudited cash flows | $ 663,926 | $ 706,548 | $ 681,175 | $ 711,101 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle | |||||
Reinsurance balances receivable | $ 640,391 | $ 640,391 | $ 505,555 | ||
Deposit contracts, assets | 3,000 | 3,000 | 3,100 | ||
Deposit contracts, liabilities | 5,200 | 5,200 | 10,700 | ||
Foreign currency transaction gains (losses) | (2,000) | $ (5,000) | 7,600 | $ (10,400) | |
Cedents | |||||
New Accounting Pronouncements or Change in Accounting Principle | |||||
Reinsurance balances receivable | $ 422,400 | $ 422,400 | $ 337,400 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Interest Income and Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Deposit interest income | $ 0 | $ 0 | $ 0 | $ 0 |
Deposit interest expense | (278) | (6,148) | (645) | (6,373) |
Deposit interest income (expense), net | $ (278) | $ (6,148) | $ (645) | $ (6,373) |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Net Income (Loss) and Weighted Average Number of Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator for earnings per share | ||||
Net income (loss) - basic | $ 13,477 | $ (18,469) | $ 69,224 | $ (9,408) |
Net income (loss) - diluted | $ 13,477 | $ (18,469) | $ 69,224 | $ (9,408) |
Denominator for earnings per share | ||||
Weighted average shares outstanding - basic (in shares) | 34,070,818 | 33,127,384 | 34,067,012 | 33,119,814 |
Effect of dilutive employee and director share-based awards (in shares) | 731,046 | 0 | 636,961 | 0 |
Weighted average shares outstanding - diluted (in shares) | 34,801,864 | 33,127,384 | 34,703,973 | 33,119,814 |
Earnings (loss) per share: | ||||
Basic (in dollars per share) | $ 0.40 | $ (0.56) | $ 2.03 | $ (0.28) |
Diluted (in dollars per share) | $ 0.39 | $ (0.56) | $ 1.99 | $ (0.28) |
Anti-dilutive stock options outstanding | ||||
Denominator for earnings per share | ||||
Participating securities excluded from calculation of loss per share and shares potentially issuable in connection with convertible notes and Anti-dilutive stock options outstanding (in shares) | 652,140 | 690,337 | 652,140 | 690,337 |
Participating securities excluded from calculation of loss per share | ||||
Denominator for earnings per share | ||||
Participating securities excluded from calculation of loss per share and shares potentially issuable in connection with convertible notes and Anti-dilutive stock options outstanding (in shares) | 0 | 848,841 | 0 | 848,841 |
Shares potentially issuable in connection with convertible notes excluded from calculation of diluted loss per share | ||||
Denominator for earnings per share | ||||
Participating securities excluded from calculation of loss per share and shares potentially issuable in connection with convertible notes and Anti-dilutive stock options outstanding (in shares) | 0 | 5,686,747 | 0 | 5,773,889 |
INVESTMENT IN RELATED PARTY I_3
INVESTMENT IN RELATED PARTY INVESTMENT FUND - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||||
Income (loss) from investment in related party investment fund | $ (1,853) | $ 8,521 | $ 27,791 | $ 24,474 | |
Solasglas Investments, LP (SILP) | DME Advisors II, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
VIE, ownership percentage | 10% | ||||
Solasglas Investments, LP (SILP) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
LPA, investment cap percentage | 60% | ||||
Solasglas Investments, LP (SILP) | GLRE Limited Partners | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, fair value | $ 229,000 | $ 229,000 | $ 178,200 | ||
GLRE Limited Partners | Solasglas Investments, LP (SILP) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership interest (as a percent) | 70.30% | 70.30% | 69.30% | ||
SILP General Partner | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership interest (as a percent) | 29.70% | 29.70% | 30.70% | ||
Limited Partnership Agreement | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Asset redemption notice to general partner | 3 days |
INVESTMENT IN RELATED PARTY I_4
INVESTMENT IN RELATED PARTY INVESTMENT FUND - Financial Information of Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Investments, at fair value | $ 228,991 | $ 178,197 |
Cash and cash equivalents | 41,302 | 38,238 |
Total assets | 1,739,629 | 1,580,381 |
Liabilities | ||
Other liabilities | (6,781) | (6,397) |
Total liabilities | (1,163,764) | (1,077,261) |
Solasglas Investments, LP (SILP) | ||
Assets | ||
Investments, at fair value | 423,807 | 304,806 |
Derivative contracts, at fair value | 25,128 | 17,547 |
Due from brokers | 59,298 | 109,169 |
Cash and cash equivalents | 0 | 0 |
Interest and dividends receivable | 130 | 527 |
Total assets | 508,363 | 432,049 |
Liabilities | ||
Investments sold short, at fair value | (154,504) | (159,382) |
Derivative contracts, at fair value | (5,232) | (12,443) |
Capital withdrawals payable | (170) | (75) |
Due to brokers | (21,347) | (2,050) |
Interest and dividends payable | (1,008) | (760) |
Other liabilities | (429) | (159) |
Total liabilities | (182,690) | (174,869) |
Net Assets | $ 325,673 | $ 257,180 |
INVESTMENT IN RELATED PARTY I_5
INVESTMENT IN RELATED PARTY INVESTMENT FUND - Summarized Statements of Assets, Liabilities and Net Assets of SILP (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Expenses | ||||
Total expenses | $ (153,416) | $ (146,008) | $ (442,262) | $ (391,401) |
Net investment income (loss) | 6,958 | 3,038 | 24,705 | 11,978 |
Realized and change in unrealized gains (losses) | ||||
Net income (loss) | 13,477 | (18,469) | 69,224 | (9,408) |
Income (loss) from investment in related party investment fund (net of related party expenses - Note 3) | (1,853) | 8,521 | 27,791 | 24,474 |
Management fees | 1,238 | 901 | 3,469 | 2,686 |
Performance allocation | (206) | |||
Performance allocation | 947 | 3,088 | 2,719 | |
Total | 1,032 | 1,848 | 6,557 | 5,405 |
Solasglas Investments, LP (SILP) | ||||
Investment income | ||||
Dividend income (net of withholding taxes) | 273 | 305 | 1,624 | 928 |
Interest income | 2,523 | 693 | 6,415 | 1,028 |
Total Investment income | 2,796 | 998 | 8,039 | 1,956 |
Expenses | ||||
Management fee | (1,238) | (901) | (3,469) | (2,686) |
Interest | (2,380) | (464) | (5,387) | (1,199) |
Dividends | (659) | (356) | (1,871) | (938) |
Professional fees and other | (507) | (262) | (1,396) | (756) |
Total expenses | (4,784) | (1,983) | (12,123) | (5,579) |
Net investment income (loss) | (1,988) | (985) | (4,084) | (3,623) |
Realized and change in unrealized gains (losses) | ||||
Net realized gain (loss) | 460 | 7,221 | (2,145) | 58,196 |
Net change in unrealized appreciation (depreciation) | (1,191) | 6,464 | 52,601 | (17,027) |
Net gain (loss) on investment transactions | (731) | 13,685 | 50,456 | 41,169 |
Net income (loss) | $ (2,719) | $ 12,700 | $ 46,372 | $ 37,546 |
FINANCIAL INSTRUMENTS - Other I
FINANCIAL INSTRUMENTS - Other Investments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Total other investments | ||
Debt and Equity Securities, FV-NI | ||
Cost | $ 29,378 | $ 30,633 |
Unrealized gains | 42,942 | 42,461 |
Unrealized losses | (4,795) | (2,815) |
Accrued interest | 123 | |
Fair value / carrying value | 67,648 | 70,279 |
Private investments and unlisted equities | ||
Debt and Equity Securities, FV-NI | ||
Cost | 26,702 | 22,787 |
Unrealized gains | 42,942 | 42,461 |
Unrealized losses | (4,795) | (2,815) |
Accrued interest | 0 | |
Fair value / carrying value | 64,849 | 62,433 |
Debt and convertible debt securities | ||
Debt and Equity Securities, FV-NI | ||
Cost | 2,676 | 1,846 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Accrued interest | 123 | |
Fair value / carrying value | $ 2,799 | 1,846 |
Certificates of deposit | ||
Debt and Equity Securities, FV-NI | ||
Cost | 6,000 | |
Unrealized gains | 0 | |
Unrealized losses | 0 | |
Fair value / carrying value | $ 6,000 |
FINANCIAL INSTRUMENTS - Nonrecu
FINANCIAL INSTRUMENTS - Nonrecurring Fair Value Disclosures (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value | ||
Upward carrying value changes | $ 43,400 | |
Downward carrying value changes and impairment | (5,900) | |
Fair Value, Nonrecurring | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value | ||
Carrying value | 64,849 | $ 61,081 |
Upward carrying value changes | 506 | 11,260 |
Downward carrying value changes and impairment | $ (2,780) | $ (1,676) |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Realized loss | $ 0 | $ 0 | $ 800 | $ 0 | |
Other investments | 67,648 | 67,648 | $ 70,279 | ||
Unrealized gain on derivatives | 100 | 100 | |||
Private Investments and Unlisted Equity Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Other investments | 11,100 | 11,100 | 8,900 | ||
Private Investments and Unlisted Equity Securities | Fair Value, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair value / carrying value | $ 53,700 | $ 53,700 | $ 53,600 |
FINANCIAL INSTRUMENTS - Assets
FINANCIAL INSTRUMENTS - Assets Measured at Fair Value On a Nonrecurring Basis (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Fair values measured on a nonrecurring basis | $ 53,721 |
Less than 6 months | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Fair values measured on a nonrecurring basis | 18,552 |
6 to 12 months | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Fair values measured on a nonrecurring basis | 602 |
Over 1 year | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Fair values measured on a nonrecurring basis | $ 34,567 |
LOSS AND LOSS ADJUSTMENT EXPE_3
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Liability for Unpaid Claims and Claims Adjustment Expense (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Insurance Loss Reserves [Abstract] | ||||
Case reserves | $ 190,121 | $ 184,756 | ||
IBNR | 468,113 | 370,712 | ||
Total | 658,234 | $ 540,827 | 555,468 | $ 524,010 |
Liability for Unpaid Claims and Claims Adjustment Expense | ||||
Gross balance at January 1 | 555,468 | 524,010 | ||
Less: Losses recoverable | (13,239) | $ (11,100) | ||
Net balance at January 1 | 542,229 | 512,910 | ||
Incurred losses related to: | ||||
Current year | 273,570 | 251,231 | ||
Prior years | 10,502 | 1,558 | ||
Total incurred | 284,072 | 252,789 | ||
Paid losses related to: | ||||
Current year | (41,026) | (54,866) | ||
Prior years | (154,374) | (160,094) | ||
Total paid | (195,400) | (214,960) | ||
Foreign currency revaluation | (858) | (20,516) | ||
Net balance at September 30 | 630,043 | 530,223 | ||
Add: Losses recoverable | 28,191 | 10,604 | $ 13,239 | |
Gross balance at September 30 | $ 658,234 | $ 540,827 |
LOSS AND LOSS ADJUSTMENT EXPE_4
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Liability for Claims and Claims Adjustment Expense | ||
Prior years | $ 10,502 | $ 1,558 |
Reinsurance Contract [Axis]: Adverse Loss | ||
Liability for Claims and Claims Adjustment Expense | ||
Net loss reserve on prior contracts increase (decrease) | 31,300 | |
Reinsurance Contract [Axis]: Favorable Loss | ||
Liability for Claims and Claims Adjustment Expense | ||
Net loss reserve on prior contracts increase (decrease) | (20,800) | |
Reinsurance Contract [Axis]: Newly Reported Loss | ||
Liability for Claims and Claims Adjustment Expense | ||
Net loss reserve on prior contracts increase (decrease) | 16,300 | |
CAT Losses | ||
Liability for Claims and Claims Adjustment Expense | ||
Net loss reserve on prior contracts increase (decrease) | 39,100 | |
Turkey Earthquake, New Zealand Cyclone Gabrielle, U.S.Convective Storms | ||
Liability for Claims and Claims Adjustment Expense | ||
Net loss reserve on prior contracts increase (decrease) | $ 29,500 | |
Russian Ukrainian | ||
Liability for Claims and Claims Adjustment Expense | ||
Net loss reserve on prior contracts increase (decrease) | 13,600 | |
Hurricane Ian | ||
Liability for Claims and Claims Adjustment Expense | ||
Net loss reserve on prior contracts increase (decrease) | $ 19,500 |
RETROCESSION (Details)
RETROCESSION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Ceded Credit Risk | ||||||
Ceded premiums earned | $ 15,300 | $ 4,400 | $ 35,200 | $ 8,400 | ||
Loss and loss expenses recovered and recoverable | 9,100 | $ 2,500 | 24,800 | |||
Loss and loss adjustment expenses recoverable | $ 13,239 | $ 11,100 | ||||
Loss and loss adjustment expenses recoverable, allowance | 117 | 117 | 62 | |||
AM Best, A- Rating | ||||||
Ceded Credit Risk | ||||||
Loss and loss adjustment expenses recoverable | 8,100 | 8,100 | 3,800 | |||
Unsecured | Unrated | ||||||
Ceded Credit Risk | ||||||
Loss and loss adjustment expenses recoverable | 20,200 | 20,200 | 9,500 | |||
Secured | Unrated | ||||||
Ceded Credit Risk | ||||||
Loss and loss adjustment expenses recoverable | $ 14,700 | $ 14,700 | $ 9,200 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 16, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Total principal amount | $ 75,000 | $ 79,610 | |
Accrued interest payable | 700 | 1,331 | |
Less: deferred finance costs | (821) | (407) | |
Total debt | 74,879 | 80,534 | |
Term loans | |||
Debt Instrument [Line Items] | |||
Total principal amount | 75,000 | $ 75,000 | 0 |
Senior convertible notes | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 0 | $ 79,610 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Jun. 16, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Aug. 07, 2018 | |
Debt Instrument [Line Items] | |||||||
Convertible debt, amount | $ 75,000,000 | $ 75,000,000 | $ 79,610,000 | ||||
Repurchased and cancelled shares amount | (17,198,000) | $ (6,384,000) | |||||
Debt issuance costs | $ 900,000 | ||||||
Senior Unsecured Convertible Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Convertible debt, amount | $ 100,000,000 | ||||||
Repayments of lines of credit | $ 63,400,000 | ||||||
Debt interest rate (in percent) | 4% | ||||||
Debt conversion price (in dollars per share) | $ 17.19 | $ 17.19 | |||||
Repurchased and cancelled shares amount | $ 0 | $ (17,200,000) | |||||
Less: gain on debt repurchases | 0 | 300,000 | |||||
Recognized interest expense | 1,600,000 | $ 1,100,000 | 3,100,000 | $ 3,400,000 | |||
New Term Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Amortization rate per quarter (in percent) | 5% | ||||||
Collateral security facility | $ 10,000,000 | ||||||
Proceeds from lines of credit | $ 75,000,000 | $ 75,000,000 | |||||
Weighted average interest rate | 8.90% | 8.90% | |||||
New Term Loan Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||
Debt Instrument [Line Items] | |||||||
Accrue interest at a rate (in percentage) | 3.50% |
SHARE CAPITAL - Stock by Class
SHARE CAPITAL - Stock by Class (Details) - shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Increase (Decrease) in Stockholders' Equity | ||
Balance – beginning of period (in shares) | 0 | |
Issue of ordinary shares, net of forfeitures (in shares) | 65,394 | |
Repurchase of ordinary shares (in shares) | 0 | |
Reclassify Class A to Ordinary shares (in shares) | 0 | |
Reclassify Class A to Ordinary shares (in shares) | 35,272,013 | |
Balance – end of period (in shares) | 35,337,407 | |
Class A | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance – beginning of period (in shares) | 28,569,346 | 27,589,731 |
Issue of ordinary shares, net of forfeitures (in shares) | 447,952 | 984,548 |
Repurchase of ordinary shares (in shares) | 0 | (4,933) |
Reclassify Class A to Ordinary shares (in shares) | 6,254,715 | 0 |
Reclassify Class A to Ordinary shares (in shares) | (35,272,013) | 0 |
Balance – end of period (in shares) | 0 | 28,569,346 |
Class B | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance – beginning of period (in shares) | 6,254,715 | 6,254,715 |
Issue of ordinary shares, net of forfeitures (in shares) | 0 | 0 |
Repurchase of ordinary shares (in shares) | 0 | 0 |
Reclassify Class A to Ordinary shares (in shares) | (6,254,715) | 0 |
Reclassify Class A to Ordinary shares (in shares) | 0 | 0 |
Balance – end of period (in shares) | 0 | 6,254,715 |
SHARE CAPITAL - Narrative (Deta
SHARE CAPITAL - Narrative (Details) $ in Millions | May 02, 2023 USD ($) |
Equity [Abstract] | |
Stock repurchase program, authorized amount | $ 25 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Performance Restricted Shares | ||
Number of non-vested RSUs | ||
Beginning balance (in shares) | 794,362 | 193,149 |
Granted (in shares) | 357,766 | 601,213 |
Vested (in shares) | 0 | 0 |
Forfeited (in shares) | (109,105) | 0 |
Ending balance (in shares) | 1,043,023 | 794,362 |
Weighted average grant date fair value | ||
Beginning balance (in dollars per share) | $ 7.62 | $ 10.10 |
Granted (in dollars per share) | 9.85 | 6.82 |
Vested (in dollars per share) | 0 | 0 |
Forfeited (in dollars per share) | 9.37 | 0 |
Ending balance (in dollars per share) | $ 8.20 | $ 7.62 |
Service Restricted Shares | ||
Number of non-vested RSUs | ||
Beginning balance (in shares) | 832,896 | 753,407 |
Granted (in shares) | 242,957 | 356,422 |
Vested (in shares) | (364,006) | (197,002) |
Forfeited (in shares) | (55,967) | (8,476) |
Ending balance (in shares) | 655,880 | 904,351 |
Weighted average grant date fair value | ||
Beginning balance (in dollars per share) | $ 7.76 | $ 8.68 |
Granted (in dollars per share) | 10.22 | 7.02 |
Vested (in dollars per share) | 6.96 | 10.06 |
Forfeited (in dollars per share) | 8.43 | 7.67 |
Ending balance (in dollars per share) | $ 9.05 | $ 7.73 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future issuance (in shares) | 3,296,771 | 2,011,426 | |
Issue of ordinary shares, net of forfeitures (in shares) | 77,695 | ||
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense, net of forfeiture reversals | $ 3.5 | $ 3.3 | |
Employee and Director Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted to employees RSUs (in shares) | 535,329 | 849,872 | |
Cliff vesting period after date of issuance | 3 years | ||
Cliff vesting percentage after date of issuance (in percent) | 50% | ||
Total fair value of restricted shares vested | $ 2.5 | $ 2 | |
Employee and Director Restricted Shares | Class A | Non Employee Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares issued pursuant to stock incentive plan (in shares) | 65,394 | 107,763 | |
Employee and Director Restricted Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cliff vesting percentage after date of issuance (in percent) | 25% | ||
Employee and Director Restricted Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cliff vesting percentage after date of issuance (in percent) | 100% | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted to employees RSUs (in shares) | 113,932 | 159,215 | |
Cliff vesting period after date of issuance | 3 years | ||
Performance RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted to employees RSUs (in shares) | 71,121 | 105,008 | |
Cliff vesting period after date of issuance | 3 years | ||
Cliff vesting percentage after date of issuance (in percent) | 50% | ||
Performance RSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cliff vesting percentage after date of issuance (in percent) | 25% | ||
Performance RSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cliff vesting percentage after date of issuance (in percent) | 100% |
SHARE-BASED COMPENSATION - Re_2
SHARE-BASED COMPENSATION - Restricted Stock Units (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Performance Restricted Stock Units | ||
Number of non-vested RSUs | ||
Beginning balance (in shares) | 105,008 | 0 |
Granted (in shares) | 71,121 | 105,008 |
Vested (in shares) | 0 | 0 |
Forfeited (in shares) | 0 | 0 |
Ending balance (in shares) | 176,129 | 105,008 |
Weighted average grant date fair value | ||
Beginning balance (in dollars per share) | $ 6.82 | $ 0 |
Granted (in dollars per share) | 9.85 | 6.82 |
Vested (in dollars per share) | 0 | 0 |
Forfeited (in dollars per share) | 0 | 0 |
Ending balance (in dollars per share) | $ 8.04 | $ 6.82 |
Service Restricted Stock Units | ||
Number of non-vested RSUs | ||
Beginning balance (in shares) | 172,952 | 154,134 |
Granted (in shares) | 42,811 | 54,207 |
Vested (in shares) | (77,695) | (35,389) |
Forfeited (in shares) | (1,788) | 0 |
Ending balance (in shares) | 136,280 | 172,952 |
Weighted average grant date fair value | ||
Beginning balance (in dollars per share) | $ 7.58 | $ 8.59 |
Granted (in dollars per share) | 9.85 | 6.82 |
Vested (in dollars per share) | 6.74 | 10.84 |
Forfeited (in dollars per share) | 7.82 | 0 |
Ending balance (in dollars per share) | $ 8.76 | $ 7.58 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) shares in Millions | 9 Months Ended | ||
Jan. 01, 2019 | Sep. 01, 2018 | Sep. 30, 2023 | |
Affiliated Entity | Green Bricks Partners Inc (GRBK) | Solasglas Investments, LP (SILP) | |||
Related Party Transaction | |||
Common stock held (in shares) | 2.7 | ||
Affiliated Entity | Green Bricks Partners Inc (GRBK) | |||
Related Party Transaction | |||
Ownership percentage (in percent) | 29.10% | ||
Board of Directors Chairman | Limited Partnership Agreement | |||
Related Party Transaction | |||
Performance compensation reduced rate (in percent) | 10% | ||
Performance compensation full rate (in percent) | 20% | ||
Performance compensation reduced rate (in percent) | 10% | ||
Loss carry forward recoupment required (in percent) | 150% | ||
Board of Directors Chairman | Investment Advisory Agreement | |||
Related Party Transaction | |||
Investment management fee rate - monthly (in percent) | 0.125% | ||
Investment management fee rate - annual (in percent) | 1.50% | ||
Automatic agreement extension, term (in years) | 3 years | ||
Board of Directors Chairman | Service Agreement | |||
Related Party Transaction | |||
Investor relations monthly fee | $ 5,000 | ||
Contract termination prior notice period (in days) | 30 days | ||
Board of Directors Chairman | Collateral Assets Investment Management Agreement | |||
Related Party Transaction | |||
Contract termination prior notice period (in days) | 30 days |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Letters of Credit Facilities (Details) - Citibank Europe plc - Facility | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Line of Credit Facility | |
Maximum Facility Limit | $ 275,000,000 |
Notice period required for termination | 120 days |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Line of Credit Facility | ||
Aggregate amount of letters of credit issued | $ 268.2 | $ 203.9 |
Collateral held in trust | 342 | 463.7 |
Letter of Credit | ||
Line of Credit Facility | ||
Cash and cash equivalents | 269 | $ 204.7 |
Uncommitted Letter of Credit | Citibank Europe plc | ||
Line of Credit Facility | ||
Credit facility | $ 14 |
SEGMENT REPORTING - Gross Premi
SEGMENT REPORTING - Gross Premiums Written by Line of Business (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | |
Segment Reporting Information | ||||
Number of operating segments | segment | 1 | |||
Gross premiums written | $ 183,074 | $ 155,146 | $ 524,472 | $ 435,812 |
Gross premiums written (in percent) | 100% | 100% | 100% | 100% |
Total Property | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 32,940 | $ 20,021 | $ 94,660 | $ 58,841 |
Gross premiums written (in percent) | 18% | 12.90% | 18% | 13.50% |
Commercial | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 16,105 | $ 2,146 | $ 45,236 | $ 8,648 |
Gross premiums written (in percent) | 8.80% | 1.40% | 8.60% | 2% |
Motor | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 122 | $ 206 | $ 706 | $ 768 |
Gross premiums written (in percent) | 0.10% | 0.10% | 0.10% | 0.20% |
Personal | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 16,713 | $ 17,669 | $ 48,718 | $ 49,425 |
Gross premiums written (in percent) | 9.10% | 11.40% | 9.30% | 11.30% |
Total Casualty | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 108,964 | $ 91,240 | $ 284,560 | $ 248,231 |
Gross premiums written (in percent) | 59.50% | 58.80% | 54.20% | 57% |
General Liability | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 31,325 | $ 13,798 | $ 79,401 | $ 40,523 |
Gross premiums written (in percent) | 17.10% | 8.90% | 15.10% | 9.30% |
Motor Liability | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 2,917 | $ 565 | $ 11,223 | $ 4,061 |
Gross premiums written (in percent) | 1.60% | 0.40% | 2.10% | 0.90% |
Professional Liability | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 3,206 | $ 242 | $ 9,478 | $ 496 |
Gross premiums written (in percent) | 1.80% | 0.20% | 1.80% | 0.10% |
Workers' Compensation | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 4,484 | $ 7,216 | $ 11,542 | $ 25,504 |
Gross premiums written (in percent) | 2.40% | 4.60% | 2.20% | 5.90% |
Multi-line | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 67,032 | $ 69,419 | $ 172,916 | $ 177,647 |
Gross premiums written (in percent) | 36.60% | 44.70% | 33% | 40.80% |
Total Other | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 41,170 | $ 43,885 | $ 145,252 | $ 128,740 |
Gross premiums written (in percent) | 22.50% | 28.30% | 27.80% | 29.50% |
Accident & Health | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 1,695 | $ 5,879 | $ 6,184 | $ 10,377 |
Gross premiums written (in percent) | 0.90% | 3.80% | 1.20% | 2.40% |
Financial | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 17,059 | $ 20,065 | $ 48,406 | $ 56,481 |
Gross premiums written (in percent) | 9.30% | 12.90% | 9.20% | 12.90% |
Marine | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 3,973 | $ 4,675 | $ 23,967 | $ 18,425 |
Gross premiums written (in percent) | 2.20% | 3% | 4.60% | 4.20% |
Other Specialty | ||||
Segment Reporting Information | ||||
Gross premiums written | $ 18,443 | $ 13,266 | $ 66,695 | $ 43,457 |
Gross premiums written (in percent) | 10.10% | 8.60% | 12.80% | 10% |
SEGMENT REPORTING - Gross Pre_2
SEGMENT REPORTING - Gross Premiums Written by Geographic Area of Risks Insured (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from External Customer | ||||
Gross premiums written | $ 183,074 | $ 155,146 | $ 524,472 | $ 435,812 |
Gross premiums written (in percent) | 100% | 100% | 100% | 100% |
U.S. and Caribbean | ||||
Revenue from External Customer | ||||
Gross premiums written | $ 77,274 | $ 72,105 | $ 206,714 | $ 224,324 |
Gross premiums written (in percent) | 42.20% | 46.50% | 39.40% | 51.50% |
Worldwide | ||||
Revenue from External Customer | ||||
Gross premiums written | $ 88,037 | $ 79,512 | $ 269,430 | $ 196,197 |
Gross premiums written (in percent) | 48.10% | 51.30% | 51.40% | 45% |
Europe (2) | ||||
Revenue from External Customer | ||||
Gross premiums written | $ 1,868 | $ (1,797) | $ 8,936 | $ 2,962 |
Gross premiums written (in percent) | 1% | (1.20%) | 1.70% | 0.70% |
Asia | ||||
Revenue from External Customer | ||||
Gross premiums written | $ 15,895 | $ 5,326 | $ 39,392 | $ 12,329 |
Gross premiums written (in percent) | 8.70% | 3.40% | 7.50% | 2.80% |
Uncategorized Items - glre-2023
Label | Element | Value |
Accounting Standards Update 2020-06 [Member] | ||
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |