Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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, Address Line Three | P.O. Box 31110 | |
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 | 35,321,144 | |
Entity Central Index Key | 0001385613 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investments | ||
Investment in related party investment fund, at fair value | $ 307,138 | $ 258,890 |
Other investments | 72,656 | 73,293 |
Total investments | 379,794 | 332,183 |
Cash and cash equivalents | 61,598 | 51,082 |
Restricted cash and cash equivalents | 581,208 | 604,648 |
Reinsurance balances receivable (net of allowance for expected credit losses of 2024: $865 and 2023: $854) | 693,742 | 619,401 |
Loss and loss adjustment expenses recoverable (net of allowance for expected credit losses of 2024: $701 and 2023: $487) | 44,765 | 25,687 |
Deferred acquisition costs | 84,891 | 79,956 |
Unearned premiums ceded | 25,202 | 17,261 |
Other assets | 5,769 | 5,089 |
Total assets | 1,876,969 | 1,735,307 |
Liabilities | ||
Loss and loss adjustment expense reserves | 730,655 | 661,554 |
Unearned premium reserves | 348,631 | 306,310 |
Reinsurance balances payable | 71,640 | 68,983 |
Funds withheld | 20,796 | 17,289 |
Other liabilities | 8,323 | 11,795 |
Debt | 72,466 | 73,281 |
Total liabilities | 1,252,511 | 1,139,212 |
Commitments and Contingencies (Note 15) | ||
Shareholders' equity | ||
Preferred share capital (par value $0.10; none issued) | 0 | 0 |
Ordinary share capital (par value $0.10; issued and outstanding, 35,321,144 (2023: par value $0.10; issued and outstanding, 35,336,732) | 3,532 | 3,534 |
Additional paid-in capital | 485,878 | 484,532 |
Retained earnings | 135,048 | 108,029 |
Total shareholders' equity | 624,458 | 596,095 |
Total liabilities and equity | $ 1,876,969 | $ 1,735,307 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for expected credit losses | $ 865 | $ 854 |
Loss and loss adjustment expenses recoverable, allowance | $ 701 | $ 487 |
Preferred share capital, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred share capital, issued (in shares) | 0 | 0 |
Ordinary share capital, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Ordinary share capital, issued (in shares) | 35,321,144 | 35,336,732 |
Ordinary share capital, outstanding (in shares) | 35,321,144 | 35,336,732 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
Gross premiums written | $ 217,258 | $ 186,455 |
Gross premiums ceded | (23,181) | (11,212) |
Net premiums written | 194,077 | 175,243 |
Change in net unearned premium reserves | (32,541) | (32,594) |
Net premiums earned | 161,536 | 142,649 |
Income (loss) from investment in related party investment fund (net of related party expenses - Note 3) | 18,248 | (3,138) |
Net investment income | 8,143 | 8,378 |
Foreign exchange gains (losses) | (1,649) | 4,931 |
Other income, net | 5,035 | 2,166 |
Total revenues | 191,313 | 154,986 |
Expenses | ||
Net loss and loss adjustment expenses incurred | 109,326 | 96,725 |
Acquisition costs | 41,610 | 41,476 |
General and administrative expenses | 10,714 | 9,936 |
Deposit interest expense | 876 | 132 |
Interest expense | 1,249 | 776 |
Total expenses | 163,775 | 149,045 |
Income before income tax | 27,538 | 5,941 |
Income tax expense | (519) | (54) |
Net income | $ 27,019 | $ 5,887 |
Earnings (loss) per share ("EPS"): | ||
Basic (in dollars per share) | $ 0.79 | $ 0.17 |
Diluted (in dollars per share) | $ 0.78 | $ 0.17 |
Weighted average number of ordinary shares used in the determination of EPS: | ||
Basic (in shares) | 34,272,230 | 34,059,185 |
Diluted (in shares) | 34,653,381 | 38,231,607 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Ordinary share capital | Additional paid-in capital | Retained earnings |
Beginning balance at Dec. 31, 2022 | $ 3,482 | $ 478,439 | $ 21,199 | |
Increase (Decrease) in Stockholders' Equity | ||||
Issue of ordinary shares, net of forfeitures | 44 | |||
Share-based compensation expense | 990 | |||
Net income | $ 5,887 | 5,887 | ||
Ending balance at Mar. 31, 2023 | 510,041 | 3,526 | 479,429 | 27,086 |
Beginning balance at Dec. 31, 2023 | 3,534 | 484,532 | 108,029 | |
Increase (Decrease) in Stockholders' Equity | ||||
Issue of ordinary shares, net of forfeitures | (2) | |||
Share-based compensation expense | 1,346 | |||
Net income | 27,019 | 27,019 | ||
Ending balance at Mar. 31, 2024 | $ 624,458 | $ 3,532 | $ 485,878 | $ 135,048 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net income | $ 27,019 | $ 5,887 |
Adjustments to reconcile net income or loss to net cash provided by (used in) operating activities: | ||
Income from investments in related party investment fund | (18,248) | 3,138 |
Net realized gain on repurchase of convertible senior notes payable | 0 | (265) |
Net realized and unrealized losses (gains) on other investments | 413 | 250 |
Net realized and unrealized losses (gains) on derivatives | (472) | 0 |
Current expected credit losses (gains) recognized on reinsurance assets | 225 | 0 |
Share-based compensation expense | 1,344 | 1,034 |
Accretion of debt offering costs and change in interest accruals | 123 | (803) |
Net change in: | ||
Reinsurance balances receivable | (74,352) | (76,086) |
Loss and loss adjustment expenses recoverable | (19,292) | (3,688) |
Deferred acquisition costs | (4,935) | (2,164) |
Unearned premiums ceded | (7,941) | (2,630) |
Loss and loss adjustment expense reserves | 69,101 | 40,331 |
Unearned premium reserves | 42,321 | 30,069 |
Reinsurance balances payable | 2,657 | 4,114 |
Funds withheld | 3,507 | (61) |
Other items, net | (3,510) | (385) |
Net cash provided by (used in) operating activities | 17,960 | (1,259) |
Cash flows from investing activities | ||
Proceeds from redemptions of investment in SILP | 0 | 26,000 |
Contributions to investment in SILP | (30,000) | (47,001) |
Purchases of other investments | 0 | (1,075) |
Proceeds on disposal of other investments | 168 | 0 |
Net cash provided by (used in) investing activities | (29,832) | (22,076) |
Cash flows from financing activities | ||
Repayment of term loans | (938) | 0 |
Repurchases of convertible senior notes payable | 0 | (17,085) |
Net cash used in financing activities | (938) | (17,085) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (114) | 132 |
Decrease in cash, cash equivalents and restricted cash | (12,924) | (40,288) |
Cash, cash equivalents and restricted cash at beginning of the period | 655,730 | 706,548 |
Cash, cash equivalents and restricted cash at end of the period | 642,806 | 666,260 |
Supplementary information | ||
Interest paid in cash | 1,724 | 1,578 |
Income tax paid (refund received) in cash | $ 0 | $ 21 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Organization 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 is a global specialty property and casualty reinsurer headquartered in the Cayman Islands. The ordinary shares of GLRE are listed on Nasdaq Global Select Market under the symbol “GLRE.” Basis of Presentation These unaudited condensed consolidated financial statements (the “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. The financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s 2023 Form 10-K. The financial statements include the accounts of GLRE and the consolidated financial statements of its wholly-owned subsidiaries and all significant intercompany transactions and balances have been eliminated on consolidation. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company’s financial position and results of operations as at the end of and for the periods presented. The results of operations for any interim period are not necessarily indicative of the results for a full year. Tabular dollars are in thousands, with the exception of per share amounts or otherwise noted. All amounts are reported in U.S. dollars. Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current financial statements. The Company has reported separately the foreign exchange gains (losses) from “ Other income ” in the condensed consolidated statements of operations. This resulted in no change to the previously reported total revenues or net income. The Company has also included the foreign exchange gains (losses) as part of the net change in working capital in the condensed consolidated statements of cash flows. Further, the Company combined “Other assets, excluding depreciation” and “Other liabilities” and presented the sum as “Other items, net” in the condensed consolidated statements of cash flows. These changes in presentation in the condensed consolidated statements of cash flows have resulted in no change to the previously reported net cash provided by (used in) operating activities. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
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 2023 Form 10-K. Recently Issued Accounting Standards Not Yet Adopted On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures . The new ASU requires incremental disclosures related to a public entity’s reportable segments but does not change the definition of a segment, the method for determining segments, or the criteria for aggregating operating segments into reportable segments. This new guidance is effective for the Company’s 2024 year-end financial statements, and should be adopted retrospectively unless impracticable. Early adoption is permitted. On December 14, 2023, FASB issued ASU 2023-09, Income Taxes Topic (740) - Improvements to Income Tax Disclosures . The new ASU provides more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. Early adoption is permitted. The amendments should be applied on a prospective basis; however, retrospective application is permitted. This ASU is effective for the Company’s 2024 year-end financial statements. As the above ASUs relate solely to financial statement disclosures, the adoption of these ASUs will not impact the Company’s financial condition, results of operations, or cash flows. |
INVESTMENT IN RELATED PARTY INV
INVESTMENT IN RELATED PARTY INVESTMENT FUND | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN RELATED PARTY INVESTMENT FUND | INVESTMENT IN RELATED PARTY INVESTMENT FUND There has been no change to the Company’s agreement with Solasglas Investments, LP (“SILP” or “Solasglas”) as described in its 2023 Form 10-K. The Company’s maximum exposure to loss relating to SILP is limited to GLRE's share of Partners’ capital in SILP. At March 31, 2024, GLRE'’s share of Partners’ capital in SILP was $307.1 million (December 31, 2023: $258.9 million), representing 74.2% (December 31, 2023: 72.7%) of SILP’s total net assets. DME II held the remaining 25.8% (December 31, 2023: 27.3%) of SILP’s total net assets. The Company’s share of the net increase in Partner’s capital for the three months ended March 31, 2024 was $18.2 million (three months ended March 31, 2023: decrease of $3.1 million), as shown in the caption “Income (loss) from investment in related party investment fund” in the Company’s condensed consolidated statements of operations. The summarized financial statements of SILP are presented below. Summarized Statements of Financial Condition of Solasglas Investments, LP March 31, 2024 December 31, 2023 Assets Investments, at fair value $ 446,433 $ 453,358 Derivative contracts, at fair value 15,609 11,167 Due from brokers 152,611 121,754 Cash and cash equivalents 881 — Interest and dividends receivable 224 1,143 Total assets 615,758 587,422 Liabilities and partners’ capital Liabilities Investments sold short, at fair value (190,353) (197,571) Derivative contracts, at fair value (9,896) (12,917) Capital withdrawals payable (390) (1,000) Due to brokers — (17,398) Interest and dividends payable (1,234) (2,315) Accrued expenses and other liabilities (103) (247) Total liabilities (201,976) (231,448) Partners' capital $ 413,782 $ 355,974 GLRE’s share of Partners' capital $ 307,138 $ 258,890 Summarized Statements of Operations of Solasglas Investments, LP Three months ended March 31 2024 2023 Investment income Dividend income (net of withholding taxes) $ 831 $ 627 Interest income 4,352 1,816 Total Investment income 5,183 2,443 Expenses Management fee (1,323) (1,068) Interest (1,334) (1,428) Dividends (704) (419) Professional fees and other (324) (282) Total expenses (3,685) (3,197) Net investment income (loss) 1,498 (754) Realized and change in unrealized gains (losses) Net realized gain (loss) 42,945 (1,760) Net change in unrealized appreciation (depreciation) (16,245) (1,033) Net gain (loss) on investment transactions 26,700 (2,793) Net increase (decrease) in Partners' capital (1) $ 28,198 $ (3,547) GLRE’s share of the increase (decrease) in Partners' capital $ 18,248 $ (3,138) (1) The net increase in Partners’ capital is net of management fees and performance allocation presented below: Three months ended March 31 2024 2023 Management fees $ 1,323 $ 1,068 Performance allocation 2,028 — Total $ 3,351 $ 1,068 |
OTHER INVESTMENTS
OTHER INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
OTHER INVESTMENTS | OTHER INVESTMENTS At March 31, 2024, the breakdown of the Company’s other investments was as follows: Cost Unrealized Unrealized Accrued interest Fair value / carrying value Private investments and unlisted equities $ 26,970 $ 49,844 $ (5,237) $ — $ 71,577 Debt and convertible debt securities 2,499 — (1,510) 90 1,079 Total other investments $ 29,469 $ 49,844 $ (6,747) $ 90 $ 72,656 At December 31, 2023, the breakdown of the Company’s other investments was as follows: Cost Unrealized Unrealized Accrued interest Fair value / carrying value Private investments and unlisted equities $ 28,470 $ 49,424 $ (6,737) $ — $ 71,157 Debt and convertible debt securities 2,499 — (499) 136 2,136 Total other investments $ 30,969 $ 49,424 $ (7,236) $ 136 $ 73,293 The following table presents the carrying values of the private investments and unlisted equity securities carried under the measurement alternative at March 31, 2024 and 2023, and the related adjustments recorded during the periods then ended. Three months ended March 31 2024 2023 Carrying value (1) $ 71,577 $ 62,684 Upward carrying value changes (2) $ 419 $ — Downward carrying value changes and impairment (3) $ (114) $ (250) (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 March 31, 2024, totaled $50.8 million. (3) The cumulative downward carrying value changes and impairments from inception to March 31, 2024, totaled $2.8 million. Net investment income The following table summarizes the change in unrealized gains (losses) and the realized gains (losses) for the Company’s other investments, which are included in “ Net investment income ” in the condensed consolidated statements of operations (see Note 13): Three months ended March 31 2024 2023 Gross realized gains $ — $ — Gross realized losses (1,332) (800) Net realized gains (losses) $ (1,332) $ (800) Change in unrealized gains 919 550 Net realized and unrealized gains (losses) on other investments $ (413) $ (250) During the three months ended March 31, 2024, the Company collected $0.2 million of liquidation proceeds relating to a private investment which was previously fully impaired, resulting in a gross realized loss of $1.3 million offset by a corresponding reduction in unrealized losses of $1.5 million. During the three months ended March 31, 2023, the Company realized a loss of $0.8 million, 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 quarter. |
RESTRICTED CASH AND CASH EQUIVA
RESTRICTED CASH AND CASH EQUIVALENTS | 3 Months Ended |
Mar. 31, 2024 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH AND CASH EQUIVALENTS | RESTRICTED CASH AND CASH EQUIVALENTS The following table shows the breakdown of the Company’s restricted cash and cash equivalents, along with a reconciliation of the total cash, cash equivalents, and restricted cash reported in the condensed consolidated statements of cash flows: March 31, 2024 December 31, 2023 Restricted cash and cash equivalents: Cash securing trust accounts $ 281,951 $ 300,152 Cash securing letters of credit issued 286,381 291,456 Cash securing Loan Facility 10,000 10,000 Other 2,876 3,040 Total restricted cash and cash equivalents 581,208 604,648 Cash and cash equivalents 61,598 51,082 Total cash, cash equivalents, and restricted cash $ 642,806 $ 655,730 Where the Company operates as a non-admitted carrier in certain foreign jurisdictions, regulatory trust accounts and letters of credit are issued to cedents. Additionally, the Company has provided cash collateral for the Loan Facility (see Note 9). |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets measured at fair value on a nonrecurring basis At March 31, 2024 and December 31, 2023, the Company held $61.7 million and $61.3 million, respectively, of private investments and unlisted equities measured at fair value on a nonrecurring basis. At March 31, 2024, the Company held $9.9 million (2023: $9.9 million) of private investments and unlisted equities measured at cost. The Company classifies these investments as Level 3 within the fair value hierarchy. The following table summarizes the periods between the most recent fair value measurement dates and March 31, 2024, 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 Fair values measured on a nonrecurring basis $ 10,433 $ 18,552 $ 32,724 $ 61,709 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 9). 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 months ended March 31, 2024, the Company recognized a reduction in unrealized loss for the above derivatives of $0.5 million to $0.1 million, which is included in other liabilities 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. Financial Instruments Disclosed, But Not Carried, at Fair Value At March 31, 2024, the carrying value of debt and convertible debt securities within “Other Investments” (see Note 4 |
LOSS AND LOSS ADJUSTMENT EXPENS
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES | 3 Months Ended |
Mar. 31, 2024 | |
Insurance Loss Reserves [Abstract] | |
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES | LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES The Company’s loss and loss adjustment expense (“LAE”) reserves were composed of the following: March 31, 2024 December 31, 2023 Case reserves $ 192,063 $ 189,050 IBNR 538,592 472,504 Total $ 730,655 $ 661,554 Reserve Roll-forward The following provides a summary of changes in outstanding loss and LAE reserves for all lines of business: Consolidated Three months ended March 31 2024 2023 Gross balance at January 1 $ 661,554 $ 555,468 Less: Losses recoverable (25,687) (13,239) Net balance at January 1 635,867 542,229 Incurred losses related to: Current year 103,925 84,687 Prior years 5,401 12,038 Total incurred 109,326 96,725 Paid losses related to: Current year (3,525) (5,546) Prior years (53,343) (57,158) Total paid (56,868) (62,704) Foreign currency revaluation (2,435) 2,622 Net balance at March 31 685,890 578,872 Add: Losses recoverable (see Note 8) 44,765 16,927 Gross balance at March 31 $ 730,655 $ 595,799 Estimates for Significant Catastrophe Events At March 31, 2024, 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 three months ended March 31, 2024, the Company recognized CAT loss, net of reinsurance, of $12.4 million for current year CAT loss events, driven mainly by the Baltimore bridge collapse and satellite failures. Additionally, the Company incurred $4.9 million of net adverse prior year CAT loss development relating primarily to a Mexican state-owned oil platform fire (2023 underwriting year), Hurricane Otis (2023 underwriting year) and homeowners’ property (mostly 2022 underwriting year). During the three months ended March 31, 2023, the Company recognized CAT loss, net of reinsurance, of $6.2 million for current year CAT loss events, driven mainly by the Turkey earthquake, the New Zealand Cyclone Gabrielle and the U.S. convective storms that occurred during the quarter, coupled with adverse prior year CAT development of $4.1 million relating to the 2022 Winter Storm Elliott. Prior Year Reserve Development During the three months ended March 31, 2024, the Company experienced $5.4 million in net adverse development on prior year loss and LAE reserves. This was comprised of $10.5 million of reserve strengthening predominantly for the above prior year CAT loss events, coupled with additional losses reported on general liability contracts (mostly 2015-2017 underwriting years) due to current economic and social inflation trends. The reserve increases were partially offset by $5.1 million favorable loss development predominantly from FAL and other specialty business (2022 and 2023 underwriting years). During the three months ended March 31, 2023, the Company experienced $12.0 million in net adverse development on prior year loss and LAE reserves. This was comprised of $13.9 million of reserve strengthening on casualty contracts due to current economic and social inflation trends (mostly 2019 and 2021 underwriting years), as well as on homeowners’ business primary due to the deterioration in the CAT loss estimate relating to Winter Storm Elliott (2022 underwriting year). This was partially offset by $1.9 million better than expected loss emergence for other lines of business (mostly 2021 and 2022 underwriting years). |
RETROCESSION
RETROCESSION | 3 Months Ended |
Mar. 31, 2024 | |
Reinsurance Disclosures [Abstract] | |
RETROCESSION | RETROCESSION From time to time, the Company purchases retrocessional coverage for one or more of the following reasons: to manage its overall exposure, reduce its net liability on individual risks, obtain additional underwriting capacity, and balance its underwriting portfolio. The Company records loss and loss adjustment expenses recoverable from retrocessionaires as assets. The following table provides a breakdown of ceded reinsurance: Three months ended March 31 2024 2023 Gross ceded premiums $ 23,181 $ 11,212 Earned ceded premiums $ 15,242 $ 8,581 Loss and loss adjustment expenses ceded $ 23,076 $ 6,171 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. The following table shows a breakdown of losses recoverable on a gross and net of collateral basis: March 31, 2024 December 31, 2023 Gross Net of Collateral (1) Gross Net of Collateral (1) A- or better by A.M. Best $ 28,232 $ 28,232 $ 8,767 $ 8,767 Not rated 17,234 762 17,407 2,432 Total before provision 45,466 $ 28,994 $ 26,174 $ 11,199 Provision for credit losses (701) (487) Total loss and loss adjustment expenses recoverable, net $ 44,765 $ 25,687 (1) Collateral is in the form of cash, letters of credit, funds withheld, and/or cash collateral held in trust accounts. This excludes any excess collateral in order to disclose the aggregate net exposure for each retrocessionaire. At March 31, 2024, we had 2 reinsurers (December 31, 2023: 3) that accounted for 10% or more of the total loss and loss adjustment expenses recoverable, net, for an aggregate gross amount of $14.7 million (December 31, 2023: $20.4 million). |
DEBT AND CREDIT FACILITIES
DEBT AND CREDIT FACILITIES | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT AND CREDIT FACILITIES | DEBT AND CREDIT FACILITIES Debt Obligations The following table summarizes the Company’s outstanding debt obligations. March 31, 2024 December 31, 2023 Term loans $ 73,125 $ 74,062 Accrued interest payable 47 — Less: deferred financing costs (706) (781) Total debt $ 72,466 $ 73,281 Credit Facilities At March 31, 2024, the Company had the following letter of credit (“LOC”) facilities: Capacity LOCs issued Termination Date Citibank Europe plc ("Citi LOC") 1 $ 289,000 $ 247,174 August 20, 2024 CIBC Bank USA ("CIBC LOC") 200,000 39,163 December 21, 2024 $ 489,000 $ 286,337 1) Includes $14 million of uncommitted capacity. The above LOCs issued are cash collateralized (see Note 5). The LOC facilities are subject to various customary affirmative, negative and financial covenants. At March 31, 2024, the Company was in compliance with all LOC facilities covenants. On April 12, 2024, the Company received written notice from Citibank Europe plc (“Citi”) of its decision to terminate the $275 million committed capacity under the Citi LOC agreement, with an effective date of August 20, 2024. However, Citi informed the Company that it intends to continue providing the Citi LOC on an uncommitted basis for the foreseeable future following the termination date. |
SHARE CAPITAL
SHARE CAPITAL | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
SHARE CAPITAL | SHARE CAPITAL Ordinary Shares The following table is a summary of changes in ordinary shares issued and outstanding for the three months ended March 31: 2024 2023 Ordinary Ordinary Class A Class B Balance – beginning of period 35,336,732 — 28,569,346 6,254,715 Issue of shares, net of forfeitures (15,588) — 438,617 — Balance – end of period 35,321,144 — 29,007,963 6,254,715 The Company’s authorized share capital is 125,000,000 ordinary shares, par value of $0.10 per share. On July 25, 2023, at the Company’s Annual General Meeting the shareholders approved the re-designation of Class B ordinary shares as Class A ordinary shares, and then reclassified Class A ordinary shares as “ordinary shares”, resulting in the elimination of the dual-class share structure. At March 31, 2024, the Company has an effective Form S-3 registration statement on file with the SEC for an aggregate principal amount of $200.0 million in securities. Share Repurchase Plan On May 3, 2024, the Board of Directors re-approved the share repurchase plan, until June 30, 2025, authorizing the Company to repurchase up to $25.0 million of ordinary shares or securities convertible into ordinary shares in the open market, through privately negotiated transactions or Rule 10b5-1 stock trading plans. Any shares repurchased are canceled immediately upon repurchase. For the three months ended March 31, 2024 and 2023, there was no repurchase of ordinary shares. Preferred Shares The Company’s authorized share capital also consists of 50,000,000 preference shares with a par value of $0.10 each. At March 31, 2024, the Company has no issued and outstanding preferred shares. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Refer to Note 11 of the Company’s audited consolidated financial statements of its 2023 Form 10-K for a summary of the Company’s 2023 Incentive Plan, including the definition of performance-based and service-based stock awards. Employee and Director Restricted Shares The following table summarizes the activity for unvested outstanding restricted share awards (“RSs”) during the three months ended March 31, 2024 and 2023: Performance Restricted Shares Service Restricted Shares Number of Weighted Number of Weighted Balance at December 31, 2022 794,362 $ 7.62 832,896 $ 7.76 Granted 357,766 9.85 152,001 9.85 Vested — — (256,243) 6.75 Forfeited (99,428) 9.62 (49,417) 8.64 Balance at March 31, 2023 1,052,700 $ 8.19 679,237 $ 8.54 Balance at December 31, 2023 1,042,688 $ 9.94 419,604 $ 9.18 Granted — — — — Vested — — (217,522) 8.78 Forfeited (89,945) 10.84 — — Balance at March 31, 2024 952,743 $ 9.86 202,082 $ 9.61 At March 31, 2024, 2,914,198 (December 31, 2023: 3,296,771) ordinary shares remained available for future issuance under the Company’s 2023 Incentive Plan. There was no grant of RSs during the three months ended March 31, 2024 (2023: 509,767). For the three months ended March 31, 2024, the total fair value of Service RSs vested was $1.9 million (2023: $1.7 million). Employee Restricted Stock Units The following table summarizes the activity for unvested outstanding restricted stock units (“RSUs”) during the three months ended March 31, 2024 and 2023: Performance Service Number of Weighted Number of Weighted 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 March 31, 2023 176,129 $ 8.04 136,280 $ 8.76 Balance at December 31, 2023 154,445 $ 8.03 110,425 $ 8.78 Granted 258,148 11.85 124,425 11.85 Vested — — (74,357) 8.84 Forfeited — — — — Balance at March 31, 2024 412,593 $ 10.42 160,493 $ 11.14 For the awards granted during the three months ended March 31, 2024, the Service RSUs vest evenly over three years 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 For the three months ended March 31, 2024, the total fair value of Service RSUs vested was $0.7 million (2023: $0.5 million). Employee and Director Stock Options During the three months ended March 31, 2024, 250,000 ordinary share purchase options were granted to the Company’s CEO, pursuant to his employment contract. These options vest 50,000 annually and expire in 10 years from the grant date. The grant date fair value of these options was $4.31 per share, based on the Black-Scholes option pricing model. The following inputs were used in this pricing model: Expected volatility 36.4 % Expected term (in years) 5 Expected dividend yield — % Risk-free interest rate 3.9 % Stock price at grant date $ 11.20 Stock Compensation Expense For the three months ended March 31, 2024 and 2023, the Company recorded $1.3 million and $1.0 million of total stock compensation expense (net of forfeitures), respectively. The stock compensation expense is included in “ General and administrative expenses ” in the condensed consolidated statements of operations. Forfeiture recoveries were immaterial for both periods. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table reconciles net income and weighted average shares used in computing basic and diluted EPS for the three months ended March 31, 2024 and 2023: Three months ended March 31 2024 2023 Numerator for EPS Net income - basic $ 27,019 $ 5,887 Add: interest on convertible notes — 776 Less: gain on repurchase of convertible notes — (265) Net income - diluted $ 27,019 $ 6,398 Denominator for EPS Weighted average shares outstanding - basic 34,272,230 34,059,185 Effect of dilutive employee and director share-based awards 381,151 341,263 Shares potentially issuable in connection with convertible notes — 3,831,159 Weighted average shares outstanding - diluted 34,653,381 38,231,607 Anti-dilutive stock options outstanding 902,140 690,337 EPS: Basic $ 0.79 $ 0.17 Diluted $ 0.78 $ 0.17 |
NET INVESTMENT INCOME
NET INVESTMENT INCOME | 3 Months Ended |
Mar. 31, 2024 | |
Net Investment Income [Abstract] | |
NET INVESTMENT INCOME | NET INVESTMENT INCOME The following table provides a breakdown of net investment income: Three months ended March 31 2024 2023 Interest and dividend income, net of withholding taxes and other expenses $ 8,556 $ 8,628 Net realized and unrealized gains on other investments (see Note 4) (413) (250) Net investment-related income 8,143 8,378 Share of Solasglas' net income (see Note 3) 18,248 (3,138) Total investment income $ 26,391 $ 5,240 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Investment Advisory Agreement There has been no change to the Company’s agreement with SILP as described in its 2023 Form 10-K. Refer to Note 3 for a breakdown of management fees and performance fees for the three months ended March 31, 2024 and 2023 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 March 31, 2024, SILP, along with certain affiliates of DME Advisors, collectively owned 25.2% 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 March 31, 2024, SILP held 1.8 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 | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES a) Concentration of Credit Risk Cash and cash equivalents The Company monitors its concentration of credit risk with financial institutions and limits acceptable counterparties based on current rating, outlook and other relevant factors. Investments The Company’s credit risk exposure to private debt and convertible debt securities within its “ Other investments ” are immaterial (see Note 4). Reinsurance balances receivable, net The following table shows the breakdown of reinsurance balances receivable: March 31, 2024 December 31, 2023 Amount % Amount % Premiums receivable $ 241,910 34.9 % $ 186,940 30.2 % Funds withheld: Funds held by cedants 48,148 7.0 % 50,075 8.1 % Premiums held by Lloyds' syndicates 293,533 42.3 % 264,278 42.7 % Funds at Lloyd’s 107,681 15.5 % 115,772 18.6 % Profit commission receivable 3,060 0.4 % 2,302 0.4 % Deposit assets 275 — % 888 0.1 % Total before provision 694,607 100.1 % 620,255 100.1 % Provision for expected credit losses (865) (0.1) % (854) (0.1) % Reinsurance balances receivable, net $ 693,742 100.0 % $ 619,401 100.0 % The Company has posted deposits at Lloyd’s to support underwriting capacity for certain syndicates, including Syndicate 3456. Lloyd’s has a credit rating of “A” (Excellent) from A.M. Best. Premiums receivable includes a significant portion of estimated premiums not yet due. Brokers and other intermediaries are responsible for collecting premiums from customers on the Company’s behalf. The Company monitors its concentration of credit risks from brokers . The diversity in the Company’s client base limits credit risk associated with premiums receivable and funds (premiums) held by cedents. Further, under the reinsurance contracts the Company has contractual rights to offset premium balances receivable and funds held by cedants against corresponding payments for losses and loss expenses. Loss and loss adjustment expenses recoverable, net The Company regularly evaluates its net credit exposure to the retrocessionaires and their abilities to honor their respective obligations. See Note 8 for analysis of concentration of credit risk relating to retrocessionaires. b) Lease Obligations There has been no material change to the Company’s operating lease agreements as described in its 2023 Form 10-K. c) Litigation |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company has one operating segment: Property & Casualty Reinsurance. 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 March 31 2024 2023 (1) Property Commercial $ 18,166 8.4 % $ 14,691 7.9 % Motor 62 — 232 0.1 Personal 6,948 3.2 15,637 8.4 Total Property 25,176 11.6 30,560 16.4 Casualty General Liability 21,657 10.0 20,559 11.0 Motor Liability 6,018 2.8 5,599 3.0 Professional Liability 567 0.3 3,647 2.0 Workers' Compensation 3,420 1.6 3,159 1.7 Multi-line 75,127 34.5 54,160 29.0 Total Casualty 106,789 49.2 87,124 46.7 Other Accident & Health 931 0.4 2,476 1.3 Financial 20,199 9.3 22,497 12.1 Marine 19,563 9.0 12,140 6.5 Other Specialty 44,600 20.5 31,658 17.0 Total Other 85,293 39.2 68,771 36.9 $ 217,258 100.0 % $ 186,455 100.0 % (1) During the three months ended June 30, 2023, the Company reclassified certain reinsurance contracts within Property, Casualty and Other resulting in a presentation change to the previously reported gross premiums written for the three months ended March 31, 2023, to conform with the revised presentation. This resulted in reclassifying $8.1 million from Casualty (mostly multi-line class), and $7.9 million to Other (mostly marine and other specialty classes) and $0.2 million to Property for the three months ended March 31, 2023. Gross Premiums Written by Geographic Area of Risks Insured Three months ended March 31 2024 2023 U.S. and Caribbean $ 57,374 26.4 % $ 69,852 37.5 % Worldwide (1) 144,309 66.4 106,262 57.0 Europe 4,488 2.1 3,427 1.8 Asia 11,087 5.1 6,914 3.7 $ 217,258 100.0 % $ 186,455 100.0 % (1) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 27,019 | $ 5,887 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
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) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current financial statements. The Company has reported separately the foreign exchange gains (losses) from “ Other income ” in the condensed consolidated statements of operations. This resulted in no change to the previously reported total revenues or net income. The Company has also included the foreign exchange gains (losses) as part of the net change in working capital in the condensed consolidated statements of cash flows. Further, the Company combined “Other assets, excluding depreciation” and “Other liabilities” and presented the sum as “Other items, net” in the condensed consolidated statements of cash flows. These changes in presentation in the condensed consolidated statements of cash flows have resulted in no change to the previously reported net cash provided by (used in) operating activities. |
Recent Accounting Pronouncements | Recently Issued Accounting Standards Not Yet Adopted On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures . The new ASU requires incremental disclosures related to a public entity’s reportable segments but does not change the definition of a segment, the method for determining segments, or the criteria for aggregating operating segments into reportable segments. This new guidance is effective for the Company’s 2024 year-end financial statements, and should be adopted retrospectively unless impracticable. Early adoption is permitted. On December 14, 2023, FASB issued ASU 2023-09, Income Taxes Topic (740) - Improvements to Income Tax Disclosures . The new ASU provides more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. Early adoption is permitted. The amendments should be applied on a prospective basis; however, retrospective application is permitted. This ASU is effective for the Company’s 2024 year-end financial statements. As the above ASUs relate solely to financial statement disclosures, the adoption of these ASUs will not impact the Company’s financial condition, results of operations, or cash flows. |
INVESTMENT IN RELATED PARTY I_2
INVESTMENT IN RELATED PARTY INVESTMENT FUND (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Financial Information of Investment | The summarized financial statements of SILP are presented below. Summarized Statements of Financial Condition of Solasglas Investments, LP March 31, 2024 December 31, 2023 Assets Investments, at fair value $ 446,433 $ 453,358 Derivative contracts, at fair value 15,609 11,167 Due from brokers 152,611 121,754 Cash and cash equivalents 881 — Interest and dividends receivable 224 1,143 Total assets 615,758 587,422 Liabilities and partners’ capital Liabilities Investments sold short, at fair value (190,353) (197,571) Derivative contracts, at fair value (9,896) (12,917) Capital withdrawals payable (390) (1,000) Due to brokers — (17,398) Interest and dividends payable (1,234) (2,315) Accrued expenses and other liabilities (103) (247) Total liabilities (201,976) (231,448) Partners' capital $ 413,782 $ 355,974 GLRE’s share of Partners' capital $ 307,138 $ 258,890 Summarized Statements of Operations of Solasglas Investments, LP Three months ended March 31 2024 2023 Investment income Dividend income (net of withholding taxes) $ 831 $ 627 Interest income 4,352 1,816 Total Investment income 5,183 2,443 Expenses Management fee (1,323) (1,068) Interest (1,334) (1,428) Dividends (704) (419) Professional fees and other (324) (282) Total expenses (3,685) (3,197) Net investment income (loss) 1,498 (754) Realized and change in unrealized gains (losses) Net realized gain (loss) 42,945 (1,760) Net change in unrealized appreciation (depreciation) (16,245) (1,033) Net gain (loss) on investment transactions 26,700 (2,793) Net increase (decrease) in Partners' capital (1) $ 28,198 $ (3,547) GLRE’s share of the increase (decrease) in Partners' capital $ 18,248 $ (3,138) (1) The net increase in Partners’ capital is net of management fees and performance allocation presented below: Three months ended March 31 2024 2023 Management fees $ 1,323 $ 1,068 Performance allocation 2,028 — Total $ 3,351 $ 1,068 |
OTHER INVESTMENTS (Tables)
OTHER INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Other Investments | At March 31, 2024, the breakdown of the Company’s other investments was as follows: Cost Unrealized Unrealized Accrued interest Fair value / carrying value Private investments and unlisted equities $ 26,970 $ 49,844 $ (5,237) $ — $ 71,577 Debt and convertible debt securities 2,499 — (1,510) 90 1,079 Total other investments $ 29,469 $ 49,844 $ (6,747) $ 90 $ 72,656 At December 31, 2023, the breakdown of the Company’s other investments was as follows: Cost Unrealized Unrealized Accrued interest Fair value / carrying value Private investments and unlisted equities $ 28,470 $ 49,424 $ (6,737) $ — $ 71,157 Debt and convertible debt securities 2,499 — (499) 136 2,136 Total other investments $ 30,969 $ 49,424 $ (7,236) $ 136 $ 73,293 |
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 March 31, 2024 and 2023, and the related adjustments recorded during the periods then ended. Three months ended March 31 2024 2023 Carrying value (1) $ 71,577 $ 62,684 Upward carrying value changes (2) $ 419 $ — Downward carrying value changes and impairment (3) $ (114) $ (250) (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 March 31, 2024, totaled $50.8 million. (3) The cumulative downward carrying value changes and impairments from inception to March 31, 2024, totaled $2.8 million. |
Schedule of Gain (Loss) on Securities | Net investment income The following table summarizes the change in unrealized gains (losses) and the realized gains (losses) for the Company’s other investments, which are included in “ Net investment income ” in the condensed consolidated statements of operations (see Note 13): Three months ended March 31 2024 2023 Gross realized gains $ — $ — Gross realized losses (1,332) (800) Net realized gains (losses) $ (1,332) $ (800) Change in unrealized gains 919 550 Net realized and unrealized gains (losses) on other investments $ (413) $ (250) |
RESTRICTED CASH AND CASH EQUI_2
RESTRICTED CASH AND CASH EQUIVALENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Restrictions on Cash and Cash Equivalents | The following table shows the breakdown of the Company’s restricted cash and cash equivalents, along with a reconciliation of the total cash, cash equivalents, and restricted cash reported in the condensed consolidated statements of cash flows: March 31, 2024 December 31, 2023 Restricted cash and cash equivalents: Cash securing trust accounts $ 281,951 $ 300,152 Cash securing letters of credit issued 286,381 291,456 Cash securing Loan Facility 10,000 10,000 Other 2,876 3,040 Total restricted cash and cash equivalents 581,208 604,648 Cash and cash equivalents 61,598 51,082 Total cash, cash equivalents, and restricted cash $ 642,806 $ 655,730 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Nonrecurring Basis | The following table summarizes the periods between the most recent fair value measurement dates and March 31, 2024, 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 Fair values measured on a nonrecurring basis $ 10,433 $ 18,552 $ 32,724 $ 61,709 |
LOSS AND LOSS ADJUSTMENT EXPE_2
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The Company’s loss and loss adjustment expense (“LAE”) reserves were composed of the following: March 31, 2024 December 31, 2023 Case reserves $ 192,063 $ 189,050 IBNR 538,592 472,504 Total $ 730,655 $ 661,554 Reserve Roll-forward The following provides a summary of changes in outstanding loss and LAE reserves for all lines of business: Consolidated Three months ended March 31 2024 2023 Gross balance at January 1 $ 661,554 $ 555,468 Less: Losses recoverable (25,687) (13,239) Net balance at January 1 635,867 542,229 Incurred losses related to: Current year 103,925 84,687 Prior years 5,401 12,038 Total incurred 109,326 96,725 Paid losses related to: Current year (3,525) (5,546) Prior years (53,343) (57,158) Total paid (56,868) (62,704) Foreign currency revaluation (2,435) 2,622 Net balance at March 31 685,890 578,872 Add: Losses recoverable (see Note 8) 44,765 16,927 Gross balance at March 31 $ 730,655 $ 595,799 |
RETROCESSION (Tables)
RETROCESSION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Reinsurance Disclosures [Abstract] | |
Ceded Credit Risk | The following table provides a breakdown of ceded reinsurance: Three months ended March 31 2024 2023 Gross ceded premiums $ 23,181 $ 11,212 Earned ceded premiums $ 15,242 $ 8,581 Loss and loss adjustment expenses ceded $ 23,076 $ 6,171 |
Effects of Reinsurance | The following table shows a breakdown of losses recoverable on a gross and net of collateral basis: March 31, 2024 December 31, 2023 Gross Net of Collateral (1) Gross Net of Collateral (1) A- or better by A.M. Best $ 28,232 $ 28,232 $ 8,767 $ 8,767 Not rated 17,234 762 17,407 2,432 Total before provision 45,466 $ 28,994 $ 26,174 $ 11,199 Provision for credit losses (701) (487) Total loss and loss adjustment expenses recoverable, net $ 44,765 $ 25,687 (1) Collateral is in the form of cash, letters of credit, funds withheld, and/or cash collateral held in trust accounts. This excludes any excess collateral in order to disclose the aggregate net exposure for each retrocessionaire. |
DEBT AND CREDIT FACILITIES (Tab
DEBT AND CREDIT FACILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the Company’s outstanding debt obligations. March 31, 2024 December 31, 2023 Term loans $ 73,125 $ 74,062 Accrued interest payable 47 — Less: deferred financing costs (706) (781) Total debt $ 72,466 $ 73,281 |
Schedule of Letters of Credit Facilities | At March 31, 2024, the Company had the following letter of credit (“LOC”) facilities: Capacity LOCs issued Termination Date Citibank Europe plc ("Citi LOC") 1 $ 289,000 $ 247,174 August 20, 2024 CIBC Bank USA ("CIBC LOC") 200,000 39,163 December 21, 2024 $ 489,000 $ 286,337 1) Includes $14 million of uncommitted capacity. |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table is a summary of changes in ordinary shares issued and outstanding for the three months ended March 31: 2024 2023 Ordinary Ordinary Class A Class B Balance – beginning of period 35,336,732 — 28,569,346 6,254,715 Issue of shares, net of forfeitures (15,588) — 438,617 — Balance – end of period 35,321,144 — 29,007,963 6,254,715 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 (“RSs”) during the three months ended March 31, 2024 and 2023: Performance Restricted Shares Service Restricted Shares Number of Weighted Number of Weighted Balance at December 31, 2022 794,362 $ 7.62 832,896 $ 7.76 Granted 357,766 9.85 152,001 9.85 Vested — — (256,243) 6.75 Forfeited (99,428) 9.62 (49,417) 8.64 Balance at March 31, 2023 1,052,700 $ 8.19 679,237 $ 8.54 Balance at December 31, 2023 1,042,688 $ 9.94 419,604 $ 9.18 Granted — — — — Vested — — (217,522) 8.78 Forfeited (89,945) 10.84 — — Balance at March 31, 2024 952,743 $ 9.86 202,082 $ 9.61 The following table summarizes the activity for unvested outstanding restricted stock units (“RSUs”) during the three months ended March 31, 2024 and 2023: Performance Service Number of Weighted Number of Weighted 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 March 31, 2023 176,129 $ 8.04 136,280 $ 8.76 Balance at December 31, 2023 154,445 $ 8.03 110,425 $ 8.78 Granted 258,148 11.85 124,425 11.85 Vested — — (74,357) 8.84 Forfeited — — — — Balance at March 31, 2024 412,593 $ 10.42 160,493 $ 11.14 |
Schedule of Valuation Assumptions | The following inputs were used in this pricing model: Expected volatility 36.4 % Expected term (in years) 5 Expected dividend yield — % Risk-free interest rate 3.9 % Stock price at grant date $ 11.20 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income (Loss) and Weighted Average Number of Shares | The following table reconciles net income and weighted average shares used in computing basic and diluted EPS for the three months ended March 31, 2024 and 2023: Three months ended March 31 2024 2023 Numerator for EPS Net income - basic $ 27,019 $ 5,887 Add: interest on convertible notes — 776 Less: gain on repurchase of convertible notes — (265) Net income - diluted $ 27,019 $ 6,398 Denominator for EPS Weighted average shares outstanding - basic 34,272,230 34,059,185 Effect of dilutive employee and director share-based awards 381,151 341,263 Shares potentially issuable in connection with convertible notes — 3,831,159 Weighted average shares outstanding - diluted 34,653,381 38,231,607 Anti-dilutive stock options outstanding 902,140 690,337 EPS: Basic $ 0.79 $ 0.17 Diluted $ 0.78 $ 0.17 |
NET INVESTMENT INCOME (Tables)
NET INVESTMENT INCOME (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Net Investment Income [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The following table provides a breakdown of net investment income: Three months ended March 31 2024 2023 Interest and dividend income, net of withholding taxes and other expenses $ 8,556 $ 8,628 Net realized and unrealized gains on other investments (see Note 4) (413) (250) Net investment-related income 8,143 8,378 Share of Solasglas' net income (see Note 3) 18,248 (3,138) Total investment income $ 26,391 $ 5,240 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Letters of Credit Facilities | The following table shows the breakdown of reinsurance balances receivable: March 31, 2024 December 31, 2023 Amount % Amount % Premiums receivable $ 241,910 34.9 % $ 186,940 30.2 % Funds withheld: Funds held by cedants 48,148 7.0 % 50,075 8.1 % Premiums held by Lloyds' syndicates 293,533 42.3 % 264,278 42.7 % Funds at Lloyd’s 107,681 15.5 % 115,772 18.6 % Profit commission receivable 3,060 0.4 % 2,302 0.4 % Deposit assets 275 — % 888 0.1 % Total before provision 694,607 100.1 % 620,255 100.1 % Provision for expected credit losses (865) (0.1) % (854) (0.1) % Reinsurance balances receivable, net $ 693,742 100.0 % $ 619,401 100.0 % |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Gross Premiums Written by Line of Business | 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 March 31 2024 2023 (1) Property Commercial $ 18,166 8.4 % $ 14,691 7.9 % Motor 62 — 232 0.1 Personal 6,948 3.2 15,637 8.4 Total Property 25,176 11.6 30,560 16.4 Casualty General Liability 21,657 10.0 20,559 11.0 Motor Liability 6,018 2.8 5,599 3.0 Professional Liability 567 0.3 3,647 2.0 Workers' Compensation 3,420 1.6 3,159 1.7 Multi-line 75,127 34.5 54,160 29.0 Total Casualty 106,789 49.2 87,124 46.7 Other Accident & Health 931 0.4 2,476 1.3 Financial 20,199 9.3 22,497 12.1 Marine 19,563 9.0 12,140 6.5 Other Specialty 44,600 20.5 31,658 17.0 Total Other 85,293 39.2 68,771 36.9 $ 217,258 100.0 % $ 186,455 100.0 % (1) During the three months ended June 30, 2023, the Company reclassified certain reinsurance contracts within Property, Casualty and Other resulting in a presentation change to the previously reported gross premiums written for the three months ended March 31, 2023, to conform with the revised presentation. This resulted in reclassifying $8.1 million from Casualty (mostly multi-line class), and $7.9 million to Other (mostly marine and other specialty classes) and $0.2 million to Property for the three months ended March 31, 2023. |
Schedule of Gross Premiums Written by Geographic Area of Risks Insured | Gross Premiums Written by Geographic Area of Risks Insured Three months ended March 31 2024 2023 U.S. and Caribbean $ 57,374 26.4 % $ 69,852 37.5 % Worldwide (1) 144,309 66.4 106,262 57.0 Europe 4,488 2.1 3,427 1.8 Asia 11,087 5.1 6,914 3.7 $ 217,258 100.0 % $ 186,455 100.0 % (1) |
INVESTMENT IN RELATED PARTY I_3
INVESTMENT IN RELATED PARTY INVESTMENT FUND - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||
Share of Solasglas' net income (see Note 3) | $ 18,248 | $ (3,138) | |
Solasglas Investments, LP (SILP) | GLRE Limited Partners | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments, fair value | $ 307,100 | $ 258,900 | |
Equity method investment, ownership interest (as a percent) | 74.20% | 72.70% | |
SILP General Partner | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership interest (as a percent) | 25.80% | 27.30% |
INVESTMENT IN RELATED PARTY I_4
INVESTMENT IN RELATED PARTY INVESTMENT FUND - Financial Information of Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Investments, at fair value | $ 307,138 | $ 258,890 |
Cash and cash equivalents | 61,598 | 51,082 |
Total assets | 1,876,969 | 1,735,307 |
Liabilities | ||
Derivative contracts, at fair value | (100) | |
Accrued expenses and other liabilities | (8,323) | (11,795) |
Total liabilities | (1,252,511) | (1,139,212) |
Solasglas Investments, LP (SILP) | ||
Assets | ||
Investments, at fair value | 446,433 | 453,358 |
Derivative contracts, at fair value | 15,609 | 11,167 |
Due from brokers | 152,611 | 121,754 |
Cash and cash equivalents | 881 | 0 |
Interest and dividends receivable | 224 | 1,143 |
Total assets | 615,758 | 587,422 |
Liabilities | ||
Investments sold short, at fair value | (190,353) | (197,571) |
Derivative contracts, at fair value | (9,896) | (12,917) |
Capital withdrawals payable | (390) | (1,000) |
Due to brokers | 0 | (17,398) |
Interest and dividends payable | (1,234) | (2,315) |
Accrued expenses and other liabilities | (103) | (247) |
Total liabilities | (201,976) | (231,448) |
Partners' capital | $ 413,782 | $ 355,974 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Expenses | ||
Total expenses | $ (163,775) | $ (149,045) |
Net investment income (loss) | 8,143 | 8,378 |
Realized and change in unrealized gains (losses) | ||
Net change in unrealized appreciation (depreciation) | 1,500 | |
Net gain (loss) on investment transactions | (413) | (250) |
Net increase (decrease) in Partners' capital | 27,019 | 5,887 |
GLRE’s share of the increase (decrease) in Partners' capital | 18,248 | (3,138) |
Management fees | 1,323 | 1,068 |
Performance allocation | 2,028 | 0 |
Total | 3,351 | 1,068 |
Solasglas Investments, LP (SILP) | ||
Realized and change in unrealized gains (losses) | ||
GLRE’s share of the increase (decrease) in Partners' capital | 18,248 | (3,138) |
Solasglas Investments, LP (SILP) | ||
Investment income | ||
Dividend income (net of withholding taxes) | 831 | 627 |
Interest income | 4,352 | 1,816 |
Total Investment income | 5,183 | 2,443 |
Expenses | ||
Management fee | (1,323) | (1,068) |
Interest | (1,334) | (1,428) |
Dividends | (704) | (419) |
Professional fees and other | (324) | (282) |
Total expenses | (3,685) | (3,197) |
Net investment income (loss) | 1,498 | (754) |
Realized and change in unrealized gains (losses) | ||
Net realized gain (loss) | 42,945 | (1,760) |
Net change in unrealized appreciation (depreciation) | (16,245) | (1,033) |
Net gain (loss) on investment transactions | 26,700 | (2,793) |
Net increase (decrease) in Partners' capital | $ 28,198 | $ (3,547) |
OTHER INVESTMENTS - Other Inves
OTHER INVESTMENTS - Other Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt and Equity Securities, FV-NI | ||
Cost | $ 29,469 | $ 30,969 |
Unrealized gains | 49,844 | 49,424 |
Unrealized losses | (6,747) | (7,236) |
Accrued interest | 90 | 136 |
Fair value / carrying value | 72,656 | 73,293 |
Private investments and unlisted equities | ||
Debt and Equity Securities, FV-NI | ||
Cost | 26,970 | 28,470 |
Unrealized gains | 49,844 | 49,424 |
Unrealized losses | (5,237) | (6,737) |
Accrued interest | 0 | 0 |
Fair value / carrying value | 71,577 | 71,157 |
Debt and convertible debt securities | ||
Debt and Equity Securities, FV-NI | ||
Cost | 2,499 | 2,499 |
Unrealized gains | 0 | 0 |
Unrealized losses | (1,510) | (499) |
Accrued interest | 90 | 136 |
Fair value / carrying value | $ 1,079 | $ 2,136 |
OTHER INVESTMENTS - Nonrecurrin
OTHER INVESTMENTS - Nonrecurring Fair Value Disclosures (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value | ||
Upward carrying value changes | $ 50,800 | |
Downward carrying value changes and impairment | (2,800) | |
Fair Value, Nonrecurring | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value | ||
Carrying value | 71,577 | $ 62,684 |
Upward carrying value changes | 419 | 0 |
Downward carrying value changes and impairment | $ (114) | $ (250) |
OTHER INVESTMENTS - Net Investm
OTHER INVESTMENTS - Net Investment Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | ||
Gross realized gains | $ 0 | $ 0 |
Gross realized losses | (1,332) | (800) |
Net realized gains (losses) | (1,332) | (800) |
Change in unrealized gains | 919 | 550 |
Net gain (loss) on investment transactions | $ (413) | $ (250) |
OTHER INVESTMENTS - Narrative (
OTHER INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liquidation proceeds relating to a private investment | $ 168 | $ 0 |
Gross realized loss | (413) | (250) |
Unrealized gain | $ 1,500 | |
Realized loss | $ 800 |
RESTRICTED CASH AND CASH EQUI_3
RESTRICTED CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash and cash equivalents | $ 581,208 | $ 604,648 | ||
Cash and cash equivalents | 61,598 | 51,082 | ||
Total cash, cash equivalents, and restricted cash | 642,806 | 655,730 | $ 666,260 | $ 706,548 |
Cash securing trust accounts | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash and cash equivalents | 281,951 | 300,152 | ||
Cash securing letters of credit issued | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash and cash equivalents | 286,381 | 291,456 | ||
Cash securing Loan Facility | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash and cash equivalents | 10,000 | 10,000 | ||
Other | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash and cash equivalents | $ 2,876 | $ 3,040 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Other investments | $ 72,656 | $ 73,293 |
Unrealized gain on derivatives | 500 | |
Derivative contracts, at fair value | 100 | |
Private investments and unlisted equities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Other investments | 9,900 | 9,900 |
Fair Value, Nonrecurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Fair value / carrying value | $ 61,700 | $ 61,300 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets Measured at Fair Value On a Nonrecurring Basis (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Fair values measured on a nonrecurring basis | $ 61,709 |
Measurement Period One | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Fair values measured on a nonrecurring basis | 10,433 |
Measurement Period Two | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Fair values measured on a nonrecurring basis | 18,552 |
Measurement Period Three | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Fair values measured on a nonrecurring basis | $ 32,724 |
LOSS AND LOSS ADJUSTMENT EXPE_3
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Liability for Unpaid Claims and Claims Adjustment Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Insurance Loss Reserves [Abstract] | ||||
Case reserves | $ 192,063 | $ 189,050 | ||
IBNR | 538,592 | 472,504 | ||
Total | 730,655 | $ 595,799 | 661,554 | $ 555,468 |
Liability for Unpaid Claims and Claims Adjustment Expense | ||||
Gross balance at January 1 | 661,554 | 555,468 | ||
Less: Losses recoverable | (25,687) | $ (13,239) | ||
Net balance at January 1 | 635,867 | 542,229 | ||
Incurred losses related to: | ||||
Current year | 103,925 | 84,687 | ||
Prior years | 5,401 | 12,038 | ||
Total incurred | 109,326 | 96,725 | ||
Paid losses related to: | ||||
Current year | (3,525) | (5,546) | ||
Prior years | (53,343) | (57,158) | ||
Total paid | (56,868) | (62,704) | ||
Foreign currency revaluation | (2,435) | 2,622 | ||
Net balance at March 31 | 685,890 | 578,872 | ||
Add: Losses recoverable (see Note 8) | 44,765 | 16,927 | $ 25,687 | |
Gross balance at March 31 | $ 730,655 | $ 595,799 |
LOSS AND LOSS ADJUSTMENT EXPE_4
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Liability for Claims and Claims Adjustment Expense | ||
Prior years | $ 5,401 | $ 12,038 |
Reinsurance Contract [Axis]: Expected Loss | ||
Liability for Claims and Claims Adjustment Expense | ||
Net loss reserve on prior contracts increase (decrease) | (1,900) | |
Reinsurance Contract [Axis]: Favorable Loss | ||
Liability for Claims and Claims Adjustment Expense | ||
Net loss reserve on prior contracts increase (decrease) | (5,100) | |
Reinsurance Contract [Axis]: Newly Reported Loss | ||
Liability for Claims and Claims Adjustment Expense | ||
Net loss reserve on prior contracts increase (decrease) | 10,500 | |
Reinsurance Contract [Axis]: Reserve Strengthening | ||
Liability for Claims and Claims Adjustment Expense | ||
Net loss reserve on prior contracts increase (decrease) | 13,900 | |
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) | 12,400 | (6,200) |
CAT Development | ||
Liability for Claims and Claims Adjustment Expense | ||
Net loss reserve on prior contracts increase (decrease) | $ (4,900) | $ 4,100 |
RETROCESSION - Ceded Reinsuranc
RETROCESSION - Ceded Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reinsurance Disclosures [Abstract] | ||
Gross ceded premiums | $ 23,181 | $ 11,212 |
Earned ceded premiums | 15,242 | 8,581 |
Loss and loss adjustment expenses ceded | $ 23,076 | $ 6,171 |
RETROCESSION - Breakdown of Los
RETROCESSION - Breakdown of Losses Recoverable on a Gross and Net of Collateral Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Ceded Credit Risk | |||
Provision for credit losses | $ (865) | $ (854) | |
Total loss and loss adjustment expenses recoverable, net | 25,687 | $ 13,239 | |
Retrocession Portfolio | |||
Ceded Credit Risk | |||
Total before provision | 45,466 | 26,174 | |
Provision for credit losses | (701) | (487) | |
Total loss and loss adjustment expenses recoverable, net | 44,765 | 25,687 | |
Net of Collateral | 28,994 | 11,199 | |
A- or better by A.M. Best | Retrocession Portfolio | |||
Ceded Credit Risk | |||
Total before provision | 28,232 | 8,767 | |
Net of Collateral | 28,232 | 8,767 | |
Not rated | Retrocession Portfolio | |||
Ceded Credit Risk | |||
Total before provision | 17,234 | 17,407 | |
Net of Collateral | $ 762 | $ 2,432 |
RETROCESSION - Narrative (Detai
RETROCESSION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Two Reinsurers | Total Loss and Loss Adjustment Expense Recoverability | Reinsurance Concentration Risk | ||
Ceded Credit Risk | ||
Loss and loss adjustment expenses ceded | $ 14.7 | $ 20.4 |
DEBT AND CREDIT FACILITIES (Det
DEBT AND CREDIT FACILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
Term loans | $ 73,125 | $ 74,062 |
Accrued interest payable | 47 | 0 |
Less: deferred financing costs | (706) | (781) |
Total debt | $ 72,466 | $ 73,281 |
DEBT AND CREDIT FACILITIES - Le
DEBT AND CREDIT FACILITIES - Letter of Credit (“LOC”) Facilities (Details) | Mar. 31, 2024 USD ($) |
Line of Credit Facility [Line Items] | |
Capacity | $ 489,000,000 |
Financial Standby Letter of Credit | |
Line of Credit Facility [Line Items] | |
LOCs issued | 286,337,000 |
Financial Standby Letter of Credit | Citibank Europe plc ("Citi LOC")1 | |
Line of Credit Facility [Line Items] | |
Capacity | 289,000,000 |
LOCs issued | 247,174,000 |
Uncommitted capacity | 14,000,000 |
Financial Standby Letter of Credit | CIBC Bank USA ("CIBC LOC") | |
Line of Credit Facility [Line Items] | |
Capacity | 200,000,000 |
LOCs issued | $ 39,163,000 |
DEBT AND CREDIT FACILITIES - Na
DEBT AND CREDIT FACILITIES - Narrative (Details) - USD ($) | Apr. 12, 2024 | Mar. 31, 2024 |
Line of Credit Facility [Line Items] | ||
Committed capacity under the Citi LOC agreement | $ 489,000,000 | |
Financial Standby Letter of Credit | Citibank Europe plc ("Citi LOC")1 | ||
Line of Credit Facility [Line Items] | ||
Committed capacity under the Citi LOC agreement | $ 289,000,000 | |
Subsequent Event | Financial Standby Letter of Credit | Citibank Europe plc ("Citi LOC")1 | ||
Line of Credit Facility [Line Items] | ||
Committed capacity under the Citi LOC agreement | $ 275,000,000 |
SHARE CAPITAL - Stock by Class
SHARE CAPITAL - Stock by Class (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Increase (Decrease) in Stockholders' Equity | ||
Balance – beginning of period (in shares) | 35,336,732 | 0 |
Issue of ordinary shares, net of forfeitures (in shares) | (15,588) | 0 |
Balance – end of period (in shares) | 35,321,144 | 0 |
Class A | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance – beginning of period (in shares) | 28,569,346 | |
Issue of ordinary shares, net of forfeitures (in shares) | 438,617 | |
Balance – end of period (in shares) | 29,007,963 | |
Class B | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance – beginning of period (in shares) | 6,254,715 | |
Issue of ordinary shares, net of forfeitures (in shares) | 0 | |
Balance – end of period (in shares) | 6,254,715 |
SHARE CAPITAL - Narrative (Deta
SHARE CAPITAL - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | May 03, 2024 | Dec. 31, 2023 | |
Class of Stock [Line Items] | ||||
Ordinary share capital, authorized (in shares) | 125,000,000 | |||
Ordinary share capital, par value (in dollars per share) | $ 0.10 | $ 0.10 | ||
Aggregate principal amount | $ 200,000 | |||
Repurchase of ordinary shares (in shares) | 0 | 0 | ||
Preferred share capital, authorized (in shares) | 50,000,000 | |||
Gross realized losses | $ (1,332) | $ (800) | ||
Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 25,000 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Performance Restricted Shares | ||
Number of non-vested RSUs | ||
Beginning balance (in shares) | 1,042,688 | 794,362 |
Granted (in shares) | 0 | 357,766 |
Vested (in shares) | 0 | 0 |
Forfeited (in shares) | (89,945) | (99,428) |
Ending balance (in shares) | 952,743 | 1,052,700 |
Weighted average grant date fair value | ||
Beginning balance (in dollars per share) | $ 9.94 | $ 7.62 |
Granted (in dollars per share) | 0 | 9.85 |
Vested (in dollars per share) | 0 | 0 |
Forfeited (in dollars per share) | 10.84 | 9.62 |
Ending balance (in dollars per share) | $ 9.86 | $ 8.19 |
Service Restricted Shares | ||
Number of non-vested RSUs | ||
Beginning balance (in shares) | 419,604 | 832,896 |
Granted (in shares) | 0 | 152,001 |
Vested (in shares) | (217,522) | (256,243) |
Forfeited (in shares) | 0 | (49,417) |
Ending balance (in shares) | 202,082 | 679,237 |
Weighted average grant date fair value | ||
Beginning balance (in dollars per share) | $ 9.18 | $ 7.76 |
Granted (in dollars per share) | 0 | 9.85 |
Vested (in dollars per share) | 8.78 | 6.75 |
Forfeited (in dollars per share) | 0 | 8.64 |
Ending balance (in dollars per share) | $ 9.61 | $ 8.54 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future issuance (in shares) | 2,914,198 | 3,296,771 | |
Chief Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 250,000 | ||
Grants (in dollars per share) | $ 4.31 | ||
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense, net of forfeiture reversals | $ 1.3 | $ 1 | |
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) | 0 | 509,767 | |
Total fair value of restricted shares vested | $ 1.9 | $ 1.7 | |
Performance RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted to employees RSUs (in shares) | 258,148 | 71,121 | |
Total fair value of restricted shares vested | $ 0.7 | $ 0.5 | |
Cliff vesting period after date of issuance | 3 years | ||
Cliff vesting percentage after date of issuance (in percent) | 100% | ||
Performance RSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cliff vesting percentage after date of issuance (in percent) | 50% | ||
Performance RSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cliff vesting percentage after date of issuance (in percent) | 200% | ||
Anti-dilutive stock options outstanding | Chief Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cliff vesting period after date of issuance | 10 years | ||
Number of options exercisable (in shares) | 50,000 | ||
Performance Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted to employees RSUs (in shares) | 0 | 357,766 |
SHARE-BASED COMPENSATION - Re_2
SHARE-BASED COMPENSATION - Restricted Stock Units (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Performance | ||
Number of non-vested RSUs | ||
Beginning balance (in shares) | 154,445 | 105,008 |
Granted (in shares) | 258,148 | 71,121 |
Vested (in shares) | 0 | 0 |
Forfeited (in shares) | 0 | 0 |
Ending balance (in shares) | 412,593 | 176,129 |
Weighted average grant date fair value | ||
Beginning balance (in dollars per share) | $ 8.03 | $ 6.82 |
Granted (in dollars per share) | 11.85 | 9.85 |
Vested (in dollars per share) | 0 | 0 |
Forfeited (in dollars per share) | 0 | 0 |
Ending balance (in dollars per share) | $ 10.42 | $ 8.04 |
Service | ||
Number of non-vested RSUs | ||
Beginning balance (in shares) | 110,425 | 172,952 |
Granted (in shares) | 124,425 | 42,811 |
Vested (in shares) | (74,357) | (77,695) |
Forfeited (in shares) | 0 | (1,788) |
Ending balance (in shares) | 160,493 | 136,280 |
Weighted average grant date fair value | ||
Beginning balance (in dollars per share) | $ 8.78 | $ 7.58 |
Granted (in dollars per share) | 11.85 | 9.85 |
Vested (in dollars per share) | 8.84 | 6.74 |
Forfeited (in dollars per share) | 0 | 7.82 |
Ending balance (in dollars per share) | $ 11.14 | $ 8.76 |
SHARE-BASED COMPENSATION - Sche
SHARE-BASED COMPENSATION - Schedule of Valuation Assumptions (Details) - Chief Executive Officer | 3 Months Ended |
Mar. 31, 2024 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 36.40% |
Expected term (in years) | 5 years |
Expected dividend yield | 0% |
Risk-free interest rate | 3.90% |
Stock price at grant date | $ 11.20 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator for EPS | ||
Net income - basic | $ 27,019 | $ 5,887 |
Add: interest on convertible notes | 0 | 776 |
Less: gain on repurchase of convertible notes | 0 | (265) |
Net income - diluted | $ 27,019 | $ 6,398 |
Denominator for EPS | ||
Weighted average shares outstanding - basic (in shares) | 34,272,230 | 34,059,185 |
Effect of dilutive employee and director share-based awards (in shares) | 381,151 | 341,263 |
Shares potentially issuable in connection with convertible notes (in shares) | 0 | 3,831,159 |
Weighted average shares outstanding - diluted (in shares) | 34,653,381 | 38,231,607 |
EPS: | ||
Basic (in dollars per share) | $ 0.79 | $ 0.17 |
Diluted (in dollars per share) | $ 0.78 | $ 0.17 |
Anti-dilutive stock options outstanding | ||
Denominator for EPS | ||
Anti-dilutive stock options outstanding (in shares) | 902,140 | 690,337 |
NET INVESTMENT INCOME (Details)
NET INVESTMENT INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net Investment Income [Abstract] | ||
Interest and dividend income, net of withholding taxes and other expenses | $ 8,556 | $ 8,628 |
Net realized and unrealized gains on other investments (see Note 4) | (413) | (250) |
Net investment-related income | 8,143 | 8,378 |
Share of Solasglas' net income (see Note 3) | 18,248 | (3,138) |
Total investment income | $ 26,391 | $ 5,240 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) shares in Millions | 3 Months Ended | |
Jan. 01, 2019 | Mar. 31, 2024 | |
Affiliated Entity | Green Bricks Partners Inc (GRBK) | Solasglas Investments, LP (SILP) | ||
Related Party Transaction | ||
Common stock held (in shares) | 1.8 | |
Affiliated Entity | Green Bricks Partners Inc (GRBK) | Solasglas Investments, LP (SILP) | ||
Related Party Transaction | ||
Ownership percentage (in percent) | 25.20% | |
Service Agreement | Board of Directors Chairman | ||
Related Party Transaction | ||
Investor relations monthly fee | $ 5,000 | |
Contract termination prior notice period (in days) | 30 days | |
Collateral Assets Investment Management Agreement | Board of Directors Chairman | ||
Related Party Transaction | ||
Contract termination prior notice period (in days) | 30 days |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Breakdown of Reinsurance Balances Receivable (Details) $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Amount | ||
Premiums receivable | $ 241,910 | $ 186,940 |
Funds held by cedants | 48,148 | 50,075 |
Premiums held by Lloyds' syndicates | 293,533 | 264,278 |
Funds at Lloyd’s | 107,681 | 115,772 |
Profit commission receivable | 3,060 | 2,302 |
Deposit assets | 275 | 888 |
Total before provision | 694,607 | 620,255 |
Provision for credit losses | (865) | (854) |
Reinsurance balances receivable, net | $ 693,742 | $ 619,401 |
% | ||
Premiums receivable | 0.349 | 0.302 |
Funds held by cedants | 7% | 8.10% |
Premiums held by Lloyds' syndicates | 0.423 | 0.427 |
Funds at Lloyd’s | 0.155 | 0.186 |
Profit commission receivable | 0.004 | 0.004 |
Deposit assets | 0 | 0.001 |
Total before provision | 1.001 | 1.001 |
Provision for expected credit losses | (0.001) | (0.001) |
Reinsurance balances receivable, net | 1 | 1 |
SEGMENT REPORTING - Gross Premi
SEGMENT REPORTING - Gross Premiums Written by Line of Business (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | |
Segment Reporting Information | |||
Number of operating segments | segment | 1 | ||
Gross premiums written | $ 217,258 | $ 186,455 | |
Gross premiums written (in percent) | 100% | 100% | |
Total Property | |||
Segment Reporting Information | |||
Gross premiums written | $ 25,176 | $ 30,560 | |
Gross premiums written (in percent) | 11.60% | 16.40% | |
Total Property | Reclassification Of Certain Reinsurance Contracts | |||
Segment Reporting Information | |||
Gross premiums written | $ 200 | ||
Commercial | |||
Segment Reporting Information | |||
Gross premiums written | $ 18,166 | $ 14,691 | |
Gross premiums written (in percent) | 8.40% | 7.90% | |
Motor | |||
Segment Reporting Information | |||
Gross premiums written | $ 62 | $ 232 | |
Gross premiums written (in percent) | 0% | 0.10% | |
Personal | |||
Segment Reporting Information | |||
Gross premiums written | $ 6,948 | $ 15,637 | |
Gross premiums written (in percent) | 3.20% | 8.40% | |
Total Casualty | |||
Segment Reporting Information | |||
Gross premiums written | $ 106,789 | $ 87,124 | |
Gross premiums written (in percent) | 49.20% | 46.70% | |
Total Casualty | Reclassification Of Certain Reinsurance Contracts | |||
Segment Reporting Information | |||
Gross premiums written | 8,100 | ||
General Liability | |||
Segment Reporting Information | |||
Gross premiums written | $ 21,657 | $ 20,559 | |
Gross premiums written (in percent) | 10% | 11% | |
Motor Liability | |||
Segment Reporting Information | |||
Gross premiums written | $ 6,018 | $ 5,599 | |
Gross premiums written (in percent) | 2.80% | 3% | |
Professional Liability | |||
Segment Reporting Information | |||
Gross premiums written | $ 567 | $ 3,647 | |
Gross premiums written (in percent) | 0.30% | 2% | |
Workers' Compensation | |||
Segment Reporting Information | |||
Gross premiums written | $ 3,420 | $ 3,159 | |
Gross premiums written (in percent) | 1.60% | 1.70% | |
Multi-line | |||
Segment Reporting Information | |||
Gross premiums written | $ 75,127 | $ 54,160 | |
Gross premiums written (in percent) | 34.50% | 29% | |
Total Other | |||
Segment Reporting Information | |||
Gross premiums written | $ 85,293 | $ 68,771 | |
Gross premiums written (in percent) | 39.20% | 36.90% | |
Total Other | Reclassification Of Certain Reinsurance Contracts | |||
Segment Reporting Information | |||
Gross premiums written | $ 7,900 | ||
Accident & Health | |||
Segment Reporting Information | |||
Gross premiums written | $ 931 | $ 2,476 | |
Gross premiums written (in percent) | 0.40% | 1.30% | |
Financial | |||
Segment Reporting Information | |||
Gross premiums written | $ 20,199 | $ 22,497 | |
Gross premiums written (in percent) | 9.30% | 12.10% | |
Marine | |||
Segment Reporting Information | |||
Gross premiums written | $ 19,563 | $ 12,140 | |
Gross premiums written (in percent) | 9% | 6.50% | |
Other Specialty | |||
Segment Reporting Information | |||
Gross premiums written | $ 44,600 | $ 31,658 | |
Gross premiums written (in percent) | 20.50% | 17% |
SEGMENT REPORTING - Gross Pre_2
SEGMENT REPORTING - Gross Premiums Written by Geographic Area of Risks Insured (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from External Customer | ||
Gross premiums written | $ 217,258 | $ 186,455 |
Gross premiums by geographical area as a percentage of total gross premiums | 100% | 100% |
U.S. and Caribbean | ||
Revenue from External Customer | ||
Gross premiums written | $ 57,374 | $ 69,852 |
Gross premiums by geographical area as a percentage of total gross premiums | 26.40% | 37.50% |
Worldwide | ||
Revenue from External Customer | ||
Gross premiums written | $ 144,309 | $ 106,262 |
Gross premiums by geographical area as a percentage of total gross premiums | 66.40% | 57% |
Europe | ||
Revenue from External Customer | ||
Gross premiums written | $ 4,488 | $ 3,427 |
Gross premiums by geographical area as a percentage of total gross premiums | 2.10% | 1.80% |
Asia | ||
Revenue from External Customer | ||
Gross premiums written | $ 11,087 | $ 6,914 |
Gross premiums by geographical area as a percentage of total gross premiums | 5.10% | 3.70% |