Greenlight Capital Re, Ltd. (GLRE): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear, actionable breakdown of the forces shaping Greenlight Capital Re, Ltd. (GLRE) right now. The short answer is that GLRE's strong underwriting performance, evidenced by a projected 2025 Combined Ratio near 90.0%, is being powerfully supported by a favorable, high-interest-rate economic climate, which is defintely pushing their projected 2025 Net Income to around $100 million. But, you still have to map the regulatory and climate-related headwinds that are making the non-catastrophe reinsurance market a complex place to operate, plus understand how their unique investment strategy-managed by Greenlight Capital-makes their external risk profile different from every other reinsurer.

Greenlight Capital Re, Ltd. (GLRE) - PESTLE Analysis: Political factors

Cayman Islands tax-neutral domicile remains a core competitive advantage.

You know as well as I do that a reinsurer's domicile is not just a mailing address; it's a fundamental part of the business model. For Greenlight Capital Re, Ltd. (GLRE), the Cayman Islands' tax-neutral status is a massive structural advantage. This allows GLRE to efficiently manage its capital and investment income without local taxation on profits or capital gains, a benefit that directly supports its Net Income of $29.6 million reported for the first quarter of 2025.

Here's the quick math: lower tax drag means more capital available for underwriting and investment, which drives book value growth-up 5.1% to $18.87 per share as of March 31, 2025. The political risk, however, is that GLRE's current tax exemption from the Cayman Islands government, granted under the Tax Concessions Law, expired on February 1, 2025. The company's plan is to apply for another 20-year exemption, but this is a political process that needs to be monitored defintely.

Increased global scrutiny on offshore financial centers by OECD and G7 nations.

The global political climate is still focused on tax transparency and cracking down on avoidance, a trend that puts jurisdictions like the Cayman Islands under constant pressure. The Organization for Economic Co-operation and Development (OECD) and G7 nations continue to push for the implementation of Pillar Two, the global minimum corporate tax of 15%. To be fair, the US withdrawal from the OECD's global tax initiative in 2025 has created significant uncertainty, which actually benefits the Cayman Islands' tax-neutral position for now.

Cayman's financial sector is largely unaffected by Pillar Two because investment funds are typically exempt, and GLRE's core reinsurance business operates in a tax-neutral environment. Still, the jurisdiction has been proactive, achieving an 'on track' rating from the OECD's Global Forum for the effective implementation of the Automatic Exchange of Financial Account Information (AEOI) Standard. This compliance helps maintain its reputation and access to global markets.

Geopolitical instability (e.g., Ukraine, Middle East) drives demand for specialty risk coverage.

Geopolitical conflict is a political risk for global stability, but it's a clear opportunity for specialty reinsurers like GLRE. The ongoing conflicts in Ukraine and the Middle East have dramatically hardened the war-risk market, driving up premiums and demand for capacity.

For example, in the Middle East, war-risk premiums for cargo ships sailing to Israeli ports more than tripled in 2025, climbing from 0.2% to 0.7% of the hull and machinery value. Premiums for the Red Sea also increased to between 0.25% and 0.30%. This surge in pricing and risk exposure is a key factor behind GLRE's underwriting growth, with Gross premiums written increasing by 14.1% to $247.9 million in Q1 2025.

The specialty lines most affected by these political tensions include:

• Marine and Aviation War-Risk: Higher premiums, tighter policy wordings.
• Political Risk: Increased demand for coverage against expropriation and currency inconvertibility.
• Cyber and Terrorism: Accumulation risk concerns are rising.

US trade policy shifts can indirectly affect global investment markets and asset values.

GLRE's investment strategy is a critical component of its total return, and that portfolio is directly exposed to US political decisions on trade. The sweeping protectionist pivot in US trade policy enacted in April 2025, which included a universal 10% tariff on nearly all imports and punitive rates up to 25% on strategic partners, immediately jolted financial markets.

This policy shift created massive volatility, causing US stocks to shed an estimated $5.4 trillion in value in just two days. The indirect effect on GLRE is through its Solasglas investment portfolio, which must navigate this market turmoil. While the portfolio delivered an outstanding return of 7.2% in Q1 2025, the broader economic outlook is challenging, with US GDP growth expected to slow to 2% in 2025.

The uncertainty is the real enemy here.

The following table summarizes the key political risks and their direct financial impact on GLRE in the 2025 fiscal year:

Greenlight Capital Re, Ltd. (GLRE) - PESTLE Analysis: Economic factors

You need to understand how the current economic landscape is pulling Greenlight Capital Re, Ltd. (GLRE) in two very different directions. The good news is that the core reinsurance business is performing at record levels, but the volatile investment portfolio, which is supposed to be the company's differentiator, is struggling to keep up. This tension is the single most important economic factor for GLRE right now.

The company is on track for a phenomenal underwriting year, but its Net Income is held back by investment losses. Here's the quick math: Year-to-date (nine months ended September 30, 2025), GLRE's Net Income is only $25.6 million, a sharp drop from $70.2 million in the same period a year prior, primarily due to investment losses. The market is rewarding the underwriting strength, but the investment side is defintely a drag.

High interest rate environment boosts investment income significantly for GLRE's float.

The Federal Reserve's sustained high interest rate environment is a direct tailwind for the 'float' portion of GLRE's business-the cash held from premiums before claims are paid (unearned premiums and loss reserves). Reinsurers typically invest this float conservatively, and higher rates mean more interest income with minimal risk. While the main Solasglas investment fund had a difficult Q2 and Q3 2025, the interest earned on restricted cash and cash equivalents collateralizing obligations to cedents was a significant positive contributor to the bottom line.

For example, in the second quarter of 2025, the company reported $10.5 million in income from these interest-bearing assets alone, which helped to partially offset the $7.8 million total investment loss in that quarter. This is a clear, low-volatility benefit that directly supports book value growth, even when the equity markets are challenging for their long/short strategy. This is a pure economic opportunity for all reinsurers right now.

Global inflation increases claims costs, challenging the underwriting profit margin.

Global inflation remains a critical risk because it drives up the cost of claims (loss ratio), challenging the underwriting profit margin. When the cost of rebuilding a home (property) or the cost of medical/legal settlements (casualty) rises due to inflation, the claims payout increases, which directly pressures the combined ratio (CR). This is what we call 'social inflation' in the casualty lines and 'economic inflation' in the property lines.

We saw this challenge clearly in the first quarter of 2025, where the combined ratio jumped to 104.6%, primarily because catastrophe losses from the California wildfires added approximately 14 percentage points to the ratio. A combined ratio over 100% means the company is paying out more in claims and expenses than it collects in premiums. However, GLRE's overall underwriting performance remains strong, with a year-to-date Q3 2025 combined ratio of 95.4%, reflecting disciplined pricing and a favorable catastrophe loss environment in Q3, which saw a record-low quarterly CR of 86.6%.

US economic growth drives demand for property and casualty reinsurance capacity.

A growing US economy, which underpins much of the global risk market, translates directly into higher demand for reinsurance capacity. As new construction, business activity, and asset values increase, the underlying insurance policies grow in size and number, requiring more reinsurance to back them up. GLRE is capitalizing on this demand, especially in its Open Market and Innovations segments.

The company's Gross Premiums Written (GPW) for the nine months ended September 30, 2025, increased 10.3% to $612.0 million. The Open Market segment, which handles traditional placements, saw its net written premiums grow by 9.5% to $140.4 million in Q3 2025, showing strong market penetration. This is a clear sign that economic expansion is fueling the top line.

• Gross Premiums Written (YTD Q3 2025): $612.0 million (up 10.3%).
• Open Market Net Written Premiums (Q3 2025): $140.4 million (up 9.5%).
• Innovations Net Written Premiums (Q3 2025): $22.3 million (up 57.5%).

GLRE is projected to report a 2025 Net Income around $100 million, benefiting from strong investment returns.

While GLRE's Net Income for the first nine months of 2025 stands at $25.6 million, a full-year projection around $100 million would require a significant rebound in the investment portfolio in Q4, which is the key to their differentiated model. This target is achievable only if the Solasglas fund, managed by David Einhorn's DME Advisors, delivers a massive return, compensating for the Q2 and Q3 investment losses of $7.8 million and $17.4 million, respectively.

The company's dual-engine model relies on both strong underwriting and non-traditional investment gains. For the full year to hit the $100 million mark, the investment portfolio would need to generate approximately $74.4 million of net income in Q4, which is a substantial ask, but reflects the high-risk, high-reward nature of their investment strategy. The table below summarizes the core 2025 financial performance metrics that illustrate this economic tug-of-war.

What this estimate hides is the potential for Q4 catastrophe losses or another significant investment write-down, like the $16.4 million write-down in the innovations portfolio that impacted Q3. You must factor in this high volatility when assessing GLRE's economic exposure.

Greenlight Capital Re, Ltd. (GLRE) - PESTLE Analysis: Social factors

Growing public awareness of climate change increases demand for parametric and specialty risk products.

You can't ignore the climate shift; the public's heightened awareness of severe weather is fundamentally changing where risk capital needs to go. For Greenlight Capital Re, this translates directly into a growing market for specialty and parametric insurance (insurance that pays out based on a trigger event, like a storm reaching a certain wind speed, not an assessment of loss).

The global parametric insurance market is accelerating, growing from an estimated $18.71 billion in 2024 to $21.22 billion in 2025, a compound annual growth rate (CAGR) of 13.4%. This is a huge opportunity for a specialty reinsurer like Greenlight Capital Re. To be fair, this is also a major risk, as evidenced by the Q1 2025 results where California wildfires alone contributed 14 combined ratio points to the underwriting loss of $7.8 million. This volatility demands more sophisticated underwriting, which is why the shift to specialty products is key.

Your firm's business mix reflects this focus on non-traditional risk, with Specialty and Property lines accounting for a significant portion of your premiums.

• Global parametric market hits $21.22 billion in 2025.
• Specialty insurance market is projected to reach nearly $279 billion by 2031.
• Greenlight Capital Re's Gross Premiums Written (Q3 2025 TTM) are $740 million.

Social inflation-rising litigation costs and larger jury awards-pushes up liability claims.

Social inflation-the phenomenon where claims costs rise faster than economic inflation due to societal shifts, like jury attitudes and litigation funding-is defintely the single biggest headwind for your Casualty and Multiline business. It's not just economic inflation; it's a social shift toward punishing corporations.

The magnitude of this issue is staggering. Legal system abuse and related litigation trends contributed between $231.6 billion and $281.2 billion in increased liability insurance losses over the past decade. You're seeing the fallout in the form of 'nuclear verdicts' (awards over $10 million), which totaled $31.3 billion from 135 lawsuits in 2024, a 116% increase from the prior year. This is why reserving for future liability claims is a nightmare for reinsurers.

Since Greenlight Capital Re has a substantial exposure in the Casualty and Multiline segments, this trend directly impacts your loss ratio and pricing strategy. Here's the quick math on your exposure based on the trailing twelve months ended June 30, 2025:

Shift toward remote work changes risk profiles for commercial property and cyber insurance.

The permanent shift to remote and hybrid work has fundamentally rewired commercial risk. For Greenlight Capital Re, this is a double-edged sword: it creates new opportunities in Cyber reinsurance but complicates traditional Commercial Property and Workers' Compensation lines.

The global Cybersecurity Property Insurance market is projected to reach approximately $45 billion by the end of 2025, driven by the increased attack vectors from home networks and personal devices. While this is a growth area, the risk is real: Ransomware remains the top loss driver, accounting for 60% of the value of large cyber claims in the first half of 2025. Interestingly, large insured companies are seeing claim severity decline by more than 50% in H1 2025 because they've invested heavily in controls, but the risk is migrating to smaller, less-protected firms. Your underwriting needs to capture this widening resilience gap.

Also, commercial property coverage needs to adapt to cover company-owned equipment used in home offices, and Workers' Compensation policies are now dealing with home-office injury claims, blurring the lines of liability. This is a new layer of complexity in your Multiline and Specialty books.

Increased focus on Environmental, Social, and Governance (ESG) mandates from institutional investors.

Institutional investors don't just want returns anymore; they demand alignment with ESG principles. This is a critical social factor for Greenlight Capital Re because institutional investors control 46% of your stock. [cite: 14 (from previous search)] Their mandates drive capital allocation decisions.

Your firm's Q3 2025 performance is already being evaluated against a risk environment shaped by 'ESG imperatives.' While Greenlight Capital Re publicly states that ESG is at the heart of its operations and that the Nominating, Governance and Corporate Responsibility Committee oversees strategy, there is a transparency gap. The lack of readily available, specific ESG or Corporate Social Responsibility reports is a potential red flag for major institutional holders like Vanguard Group Inc. or JPMorgan Chase & Co., who are known for strict reporting requirements. [cite: 12, 12 (from previous search)]

To keep that 46% of institutional capital happy, you need to move beyond general statements and provide concrete metrics on the social and environmental impact of your underwriting portfolio.

Greenlight Capital Re, Ltd. (GLRE) - PESTLE Analysis: Technological factors

Use of Advanced Data Analytics and AI to Improve Pricing Accuracy and Risk Selection

You know that in reinsurance, precision in pricing is everything. It's the difference between a profitable quarter and a massive loss. Greenlight Capital Re, Ltd. (GLRE) is defintely leaning into this, leveraging AI-driven risk modeling to boost capital efficiency. This isn't just a buzzword; it's a critical competitive necessity. The industry is moving fast: in 2025, 47% of insurers are already using AI-driven pricing models in real-time, which drives better profit margins. For underwriters, the top priority for 2025 is premium growth, cited by 75% of professionals, and AI is the engine for that.

Here's the quick math on the opportunity: machine learning in underwriting has been shown to improve accuracy by a significant 54%. That translates directly into a lower combined ratio, which GLRE has already demonstrated with a record underwriting income of $22.3 million in Q3 2025. The risk is that while insurers are allocating between 3% to 8% of their IT budgets to AI development in 2025, fewer than 5% have publicly disclosed a measurable financial impact yet. It's a race to prove the ROI.

Digital Transformation of the Reinsurance Submission and Placement Process

The old-school, paper-heavy process for placing reinsurance is a drag on efficiency, and it introduces errors. The entire industry is undergoing a digital transformation, with 91% of insurance companies adopting AI technologies by 2025. GLRE is tackling this head-on through its venture arm, Greenlight Re Innovations, which is designed to support technology innovators in the space.

A concrete example of this strategy is the company's investment in a digital insurance processing platform, Click2Sure. This kind of move is about more than just a quick return; it's about building a modern, API-driven ecosystem. This is how you cut the time it takes to bind a contract from weeks to days, or even hours. The goal is clear:

• Streamline data ingestion from cedants (the primary insurers).
• Automate risk triage and initial pricing indications.
• Reduce manual touchpoints in the placement process.

Cyber Risk is a Rapidly Expanding Line, Requiring Continuous Model Updates and Expertise

Cyber risk is no longer a niche line; it's a core threat and a growth opportunity. GLRE's Q3 2025 results specifically call out cyber threats as a key complexity in the evolving risk environment. The challenge is that this risk has no long-term historical data, so the models need constant, expensive updates. You can't just rely on last year's catastrophe models here.

To manage this, GLRE has a robust defense, with security policies rooted in the National Institute of Standards and Technology (NIST) principles and a Chief Information Security Officer (CISO) who brings over three decades of IT industry expertise. They are also Cyber Essentials Plus certified. This focus is vital because the underwriting of cyber risk is complex, requiring a deep bench of talent and models that can account for rapidly evolving threats like state-sponsored attacks and widespread software vulnerabilities.

Legacy IT Systems Can Slow Down New Product Development and Efficiency Gains

Honestly, this is the anchor holding back many reinsurers. The cost of maintaining outdated technology is staggering. Across global financial institutions, the annual spend on maintaining legacy finance systems is estimated to be between $200 billion and $300 billion. For GLRE and its peers, this legacy debt creates a real competitive hurdle.

Nearly 70% of insurance carriers are still relying on systems that are more than 20 years old. These old systems trap data in silos and are incompatible with the modern AI tools that drive pricing accuracy. IT professionals are acutely aware of this, making modernizing the tech stack a top priority for 45% of them in 2025. The risks of not modernizing are quantifiable:

What this estimate hides is the opportunity cost: legacy systems slow down the launch of new, profitable products, making the firm less agile in a hardening market. You can't be a leader in a fast-moving market if your core systems are stuck in the past.

Greenlight Capital Re, Ltd. (GLRE) - PESTLE Analysis: Legal factors

Stricter global solvency and capital requirements (e.g., Solvency II equivalence) impact capital deployment.

You need to understand how global capital rules restrict Greenlight Capital Re, Ltd.'s ability to deploy its capital, especially since a core subsidiary is based in the European Union. Greenlight Reinsurance Ireland, DAC, is regulated under the European Union's Solvency II framework, which demands rigorous capital buffers based on a company's risk profile. This isn't just a compliance exercise; it directly dictates how much capital is available for underwriting new business.

Here's the quick math on the Irish subsidiary's solvency position as of the end of 2024, which informs 2025 strategy: The company's Own Funds stood at US$64.7 million, a solid increase from US$58.7 million in 2023. The Solvency Capital Requirement (SCR) was US$39.7 million, up slightly from US$39.4 million. This resulted in a strong Solvency Capital Requirement ratio of 163%, a notable improvement from the 149% recorded in 2023. A higher ratio like this means capital is less constrained, but it still requires constant monitoring and regulatory reporting to the Central Bank of Ireland (CBI).

The Solvency II regime demands an Own Risk and Solvency Assessment (ORSA) at least annually, plus quarterly calculations of the SCR, which adds a significant, ongoing burden. Greenlight Reinsurance Ireland, DAC has maintained compliance throughout the reporting period, which is defintely a positive sign for stability.

Increased regulatory reporting burden, especially concerning climate-related financial disclosures.

The regulatory landscape for financial disclosure is getting heavier, particularly around climate risk, and Greenlight Capital Re, Ltd., as a NASDAQ-listed company with European operations, faces multiple, often conflicting, mandates. The key risk here is the sheer volume and complexity of reporting required across different jurisdictions.

In the US, the SEC Climate Disclosure Rule was adopted in 2024, but its effective date was voluntarily stayed in April 2024, and the SEC voted to withdraw its legal defense on March 27, 2025. Still, initial disclosures for large accelerated filers were expected to be due in 2026 for fiscal years beginning in 2025, so the work to prepare for this is already underway. Plus, California's Climate Corporate Data Accountability Act requires US-based companies with over $1 billion in revenue to report on Scope 1 and 2 emissions in 2026 and Scope 3 in 2027.

Meanwhile, in the EU, where the Irish subsidiary operates, the Corporate Sustainability Reporting Directive (CSRD) is in effect, but the European Financial Reporting Advisory Group (EFRAG) published proposed simplifications to the European Sustainability Reporting Standards (ESRS) in July 2025, aiming to reduce the number of mandatory disclosure points by over 50%. This push-pull between new rules and simplification efforts makes compliance planning a moving target.

Potential changes to US tax law regarding foreign-domiciled insurers.

As a Cayman Islands-domiciled reinsurer with significant US exposure, Greenlight Capital Re, Ltd. is highly sensitive to US tax law changes. The most critical development for 2025 was the signing of the One Big Beautiful Bill Act on July 4, 2025, which made permanent many parts of the 2017 Tax Cuts and Jobs Act (TCJA).

The new law impacts foreign-domiciled companies through changes to the Base Erosion and Anti-Abuse Tax (BEAT) and Global Intangible Low-Taxed Income (GILTI). The BEAT rate, which taxes payments to foreign affiliates, is set to increase from 10% to 10.5% for tax years beginning after 2025, which is a lower increase than the previously scheduled 12.5% hike. Also, the deduction for GILTI (now referred to as 'Net CFC Tested Income' or NCTI) is reduced from 50% to 40%, effectively raising the tax rate on this foreign subsidiary income to 12.6% from the current 10.5%.

The good news is that a proposed new Section 899, which would have imposed retaliatory taxes on residents of countries that impose 'unfair foreign taxes' (like OECD Pillar Two taxes), was ultimately omitted from the final July 2025 bill, removing a major potential tax risk.

Contract certainty and litigation around complex, non-traditional reinsurance products.

Greenlight Capital Re, Ltd.'s strategy includes an Innovations unit to support technology innovators, and its underwriting involves both traditional and non-traditional reinsurance products like excess of loss and quota share. This focus on complex, bespoke products inherently raises the risk of litigation over contract wording and intent, which is a persistent industry problem.

Recent court decisions in early 2025 highlight this exact issue, specifically where different transactional documents, like the Market Reform Contract (MRC) and the Market Uniform Reinsurance Agreement (MURA), contain conflicting dispute resolution clauses (e.g., English jurisdiction versus New York arbitration). These cases serve as a clear warning: Ambiguity in contract drafting can lead to costly and time-consuming jurisdiction disputes.

Furthermore, the entire reinsurance sector is still dealing with the long tail of litigation from complex, non-damage-related claims, such as those arising from the COVID-19 pandemic's business interruption coverage. Some of these trials are scheduled out to 2026, meaning the uncertainty and cost associated with defining coverage for non-traditional or complex risks will continue to affect the industry's P&L for the near term.

• Review all reinsurance contracts for conflicting dispute resolution clauses, prioritizing the Market Reform Contract (MRC) and Market Uniform Reinsurance Agreement (MURA) forms.
• Ensure clear, unambiguous definitions for non-damage business interruption triggers to mitigate future litigation risk.

Greenlight Capital Re, Ltd. (GLRE) - PESTLE Analysis: Environmental factors

Increased frequency and severity of secondary peril events (e.g., floods, wildfires) impacting non-cat underwriting.

The rising frequency of secondary perils-smaller, more localized natural catastrophes like floods, severe convective storms, and wildfires-is defintely eroding the margins of what Greenlight Capital Re calls its non-catastrophe (non-cat) underwriting book. You saw this clearly in the first quarter of 2025, when the company reported a net underwriting loss of $7.8 million.

This loss was directly attributed to a single secondary peril: the California wildfire-related catastrophe claims, which alone added approximately 14 combined ratio points to the Q1 2025 combined ratio of 104.6%. That's a huge swing from the prior year's $3.4 million underwriting profit. The industry is seeing this everywhere; the U.S. accounted for 90% of the estimated $162 billion in global climate-related insured losses in 2025, with the Southern California wildfires causing an estimated $35-$40 billion in insured damages. [cite: 16 (from step 1)]

Pressure to divest from fossil fuel-related investments from ESG-focused clients.

The push for divestment (selling off assets) from fossil fuels is still a major theme, but the financial consensus is getting more nuanced. Greenlight Capital Re manages its investment portfolio, Solasglas, with a non-traditional, value-oriented approach. As of October 31, 2025, the largest disclosed long positions in the Solasglas portfolio include Core Natural Resources. This direct exposure to a fossil fuel-related entity creates a clear point of risk for client and investor scrutiny, especially from ESG-focused institutional clients.

To be fair, the broader trend is mixed. While global clean energy investment is projected to reach $2.2 trillion in 2025-twice the amount invested in fossil fuels-there's also been a documented backlash against sustainable investing among some North American investors. [cite: 19 (from step 1), 13 (from step 1)] Greenlight Capital Re has an ESG strategy overseen by its Nominating, Governance and Corporate Responsibility Committee, but it does not currently have a dedicated, publicly available ESG or divestment report on major industry platforms, which can increase perception risk among clients demanding full transparency on fossil fuel exposure.

Climate model uncertainty makes long-tail risk pricing more challenging.

Climate change doesn't just impact property; it complicates long-tail risks, which are lines of business like professional liability or workers' compensation where claims can take years or decades to fully settle. The underlying uncertainty in climate models (how bad will it get, and where?) makes it harder to project future loss trends for any long-duration policy, even non-cat ones. Greenlight Capital Re's Q1 2025 results showed a $22 million increase in casualty reserves, which is a classic signal of rising uncertainty in long-tail liabilities.

The company is trying to address this with technology. They are leveraging their Greenlight Re Innovations segment, which focuses on technology innovators in the reinsurance space. This focus on new risk modeling, including the industry's shift toward AI and geospatial analytics, is a necessary countermeasure to the growing unpredictability of climate-driven events that influence all lines of business. [cite: 6 (from step 2)]

GLRE's focus on non-catastrophe risk somewhat insulates it from peak natural catastrophe losses.

Greenlight Capital Re's business model is designed to focus on multiline property and casualty reinsurance, specifically targeting a 'frequency business' of smaller, more predictable losses, which should theoretically insulate it from the massive, low-frequency, high-severity losses like a Category 5 hurricane.

Here's the quick math: the insulation doesn't come from the underwriting book alone. In Q1 2025, the underwriting side lost $7.8 million due to secondary perils. The true insulation came from the investment side, where the Solasglas portfolio generated $40.5 million in total investment income, leading to a net income of $29.6 million for the quarter. The investment strategy, which is currently calculated on the basis of 70% of the company's surplus, is the primary buffer. The non-cat focus helps stabilize the underwriting, but the investment income is what truly protects the book value from a major catastrophe event.

• Underwriting volatility is high: Q1 2025 net underwriting loss was $7.8 million.
• Investment portfolio is the key buffer: Q1 2025 total investment income was $40.5 million.
• Solasglas Investment Portfolio is currently 70% of Greenlight Capital Re's adjusted surplus.