References to “we,” “us,” “our,” “our company,” or “the Company” refer to Greenlight Capital Re, Ltd. (“GLRE”) and its wholly-owned subsidiaries unless the context dictates otherwise.
The following discussion should be read in conjunction with the condensed consolidated financial statements (herein referred to as “financial statements”) and accompanying notes included in Item 1 of this report and the audited consolidated financial statements and accompanying notes, which appear in our 2025 Form 10-K.
The following is management’s discussion and analysis (“MD&A”) of our results of operations for the three and six months ended June 30, 2026 and 2025 and the Company’s financial condition at June 30, 2026 and December 31, 2025.
All amounts are reported in U.S. dollars, unless otherwise noted. Tabular dollars are presented in thousands, with the exception of per share amounts or as otherwise noted. Due to rounding, numbers and percentages presented in the tables included in this MD&A may not add up precisely to the totals provided.
Page
Overview 29
Business Overview 29
Outlook and Trends 29
Key Financial Measures and Non-GAAP Measure 30
Consolidated Results of Operations 31
Results by Segment 33
Open Market Segment 33
Innovations Segment 38
Other Corporate 41
Runoff Underwriting Business 41
Income from Investment in Solasglas 41
Financial Condition 42
Liquidity and Capital Resources 45
Liquidity 45
Capital Resources 45
Contractual Obligations and Commitments 46
Critical Accounting Estimates 46
Recent Accounting Pronouncements 46
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Overview
Business Overview
We are a global specialty property and casualty reinsurer headquartered in the Cayman Islands, with an underwriting and investment strategy that we believe differentiates us from most of our competitors. Our goal is to build long-term shareholder value by providing risk management solutions to the insurance, reinsurance, and other risk marketplaces.
For the three months ended June 30, 2026 (“Q2 2026”), we reported a net loss of $29.6 million, compared to $0.3 million net income for the three months ended June 30, 2025 (“Q2 2025”). The net loss was mainly attributable to CAT losses from underwriting and negative investment returns from Solasglas.
The following is a summary of our financial performance for Q2 2026, compared to Q2 2025:
•Gross premiums written was $183.1 million, an increase of 1.9%;
•Net premiums earned was $161.8 million, an increase of 0.1%;
•Net underwriting loss was $0.2 million, compared to net underwriting income of $8.1 million;
•Total investment loss was $23.8 million, compared to investment loss of $7.8 million;
•Diluted EPS loss was $0.89, compared to diluted EPS of $0.01; and
•Fully diluted book value per share was $20.61, a decrease of 3.7% since last quarter.
Fully diluted book value per share is a non-GAAP financial measure. See “Key Financial Measure and Non-GAAP Measures” section of this MD&A.
Outlook and Trends
Reinsurance market conditions
We continue to see an increasingly competitive market, predominantly in our Open Market segment. This is putting pressure on headline rates across various classes with some modest but increasing pressure appearing on attachment points and other terms and conditions. Our focus remains on maintaining a diversified portfolio that is resilient to market supply-demand pressures.
General economic conditions
There are many factors contributing to an uncertain global economic outlook, and in particular, the current Middle East conflict. With the recent volatility in oil price driven by this conflict, we believe that inflationary trends of recent years could persist. We continue to consider the potential impact of relevant economic factors on our underwriting portfolio.
On the investment side, DME Advisors regularly monitors and re-positions Solasglas’ investment portfolio to manage the impact of inflation on its underlying investments and holds macro positions to benefit from a rising inflationary environment. DME Advisors remains conservatively positioned as it believes the equity markets are very expensive.
In addition to the geopolitical uncertainty, the U.S. Administration continues to adopt trade policies that have increased uncertainty and volatility in financial markets. These policies continue to complicate the near-term outlook for economic growth and inflation. We remain vigilant for economic data and additional policies that may impact our business.
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Key Financial Measures and Non-GAAP Measure
There have been no changes to our key financial measures, including non-GAAP financial measure, as described in the MD&A of our 2025 Form 10-K.
Fully Diluted Book Value Per Share
The following table presents a reconciliation of the fully diluted book value per share to basic book value per share (the most directly comparable U.S. GAAP financial measure):
June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025
Numerator for basic and fully diluted book value per share:
Total equity as reported under U.S. GAAP $ 697,682 $ 741,172 $ 707,977 $ 658,889 $ 663,318
Denominator for basic and fully diluted book value per share:
Ordinary shares issued and outstanding as reported and denominator for basic book value per share 32,881,538 33,684,902 33,897,709 34,099,226 34,198,153
Add: In-the-money stock options (1) and all outstanding RSUs 972,651 950,199 755,997 757,505 775,124
Denominator for fully diluted book value per share 33,854,189 34,635,101 34,653,706 34,856,731 34,973,277
Basic book value per share $ 21.22 $ 22.00 $ 20.89 $ 19.32 $ 19.40
Increase (decrease) in basic book value per share $ (0.78) $ 1.11 $ 1.57 $ (0.08) $ 0.10
Increase (decrease) in basic book value per share (3.5) % 5.3 % 8.1 % (0.4) % 0.5 %
Fully diluted book value per share $ 20.61 $ 21.40 $ 20.43 $ 18.90 $ 18.97
Increase (decrease) in fully diluted book value per share $ (0.79) $ 0.97 $ 1.53 $ (0.07) $ 0.10
Increase (decrease) in fully diluted book value per share (3.7) % 4.7 % 8.1 % (0.4) % 0.5 %
(1) Assuming net exercise by the grantee.
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Consolidated Results of Operations
The table below summarizes our consolidated operating results.
Three months ended June 30 Six months ended June 30
2026 2025 Change 2026 2025 Change
Underwriting results:
Gross premiums written $ 183,118 $ 179,628 $ 3,490 $ 411,056 $ 427,573 $ (16,517)
Net premiums written $ 146,809 $ 164,527 $ (17,718) $ 330,283 $ 383,924 $ (53,641)
Net premiums earned $ 161,813 $ 161,641 $ 172 $ 315,958 $ 330,104 $ (14,146)
Net loss and LAE incurred:
Current year (111,367) (97,032) (14,335) (205,011) (215,698) 10,687
Prior year (1) (716) (3,047) 2,331 1,773 (7,265) 9,038
Net loss and LAE incurred (112,083) (100,079) (12,004) (203,238) (222,963) 19,725
Acquisition costs (44,034) (46,848) 2,814 (92,996) (93,714) 718
Underwriting expenses (5,886) (6,481) 595 (13,691) (12,839) (852)
Deposit interest expense (46) (124) 78 (78) (273) 195
Net underwriting income (loss) (236) 8,109 (8,345) 5,955 315 5,640
Investment results:
Income (loss) from investment in Solasglas (27,857) (18,276) (9,581) 5,832 13,921 (8,089)
Net investment income 4,076 10,470 (6,394) 10,807 18,757 (7,950)
Total investment income (loss) (23,781) (7,806) (15,975) 16,639 32,678 (16,039)
Corporate and other expenses (4,717) (4,755) 38 (10,459) (9,427) (1,032)
Foreign exchange gains (losses) (576) 6,271 (6,847) (5,481) 10,626 (16,107)
Interest expense (128) (1,144) 1,016 (227) (2,608) 2,381
Income tax expense (158) (346) 188 (273) (1,628) 1,355
Net income $ (29,596) $ 329 $ (29,925) $ 6,154 $ 29,956 $ (23,802)
Diluted EPS $ (0.89) $ 0.01 $ (0.90) $ 0.18 $ 0.87 $ (0.69)
Underwriting ratios: % Point Change % Point Change
Attritional loss ratio 51.7% 56.0% (4.3) 53.4% 55.0% (1.6)
Large event loss ratio 0.8% 4.0% (3.2) 1.5% 2.1% (0.6)
CAT event loss ratio 16.4% —% 16.4 10.0% 8.2% 1.8
Current year loss ratio 68.8% 60.0% 8.8 64.9% 65.3% (0.4)
Prior year reserve development ratio 0.4% 1.9% (1.4) (0.6)% 2.2% (2.8)
Loss ratio 69.3% 61.9% 7.4 64.3% 67.5% (3.2)
Acquisition cost ratio 27.2% 29.0% (1.8) 29.4% 28.4% 1.0
Composite ratio 96.5% 90.9% 5.6 93.8% 95.9% (2.1)
Underwriting expense ratio 3.7% 4.1% (0.4) 4.4% 4.0% 0.4
Combined ratio 100.1% 95.0% 5.1 98.1% 99.9% (1.8)
1 The net financial impact associated with changes in the estimate of losses incurred in prior years, which incorporates earned reinstatement premiums assumed and ceded, adjustments to assumed and ceded acquisition costs, and deposit interest income
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and expense, was a gain of $1.2 million and a loss of $2.6 million for three months ended June 30, 2026 and 2025, respectively, and a gain of $2.8 million and a loss of $6.1 million for the six months ended June 30, 2026 and 2025, respectively.
Consolidated Results of Operations for Q2 2026 compared to Q2 2025
Basic book value per share decreased by $0.78 per share, or 3.5%, to $21.22 per share from $22.00 per share at March 31, 2026. Fully diluted book value per share decreased by $0.79 per share, or 3.7%, to $20.61 per share from $21.40 per share at March 31, 2026.
Net loss for Q2 2026 was $29.6 million, compared to a negligible net income for Q2 2025. This was driven mainly by the following:
•Investment loss: Increased by $16.0 million primarily driven by:
◦Our investment in Solasglas reported a loss of $27.9 million (net loss of 5.4%) during Q2 2026, compared to a loss of $18.3 million (net loss of 4.0%) for the same period in 2025; and
◦Lower net investment income from (i) interest earned on funds at Lloyds due to partially replacing it with the unsecured Citibank LC (see Note 10 of the financial statements), and (ii) with lower interest income earned from restricted cash and cash equivalents due to the interest rate cuts by central banks in 2025. Additionally, we recognized $0.4 million of unrealized losses on the fixed maturity investment portfolio and a $1.5 million impairment charge relating to the Innovations’ private equity portfolio for Q2 2026, which are included in net investment income in the financial statements.
•Underwriting loss: Unfavorable change of $8.3 million, driven by 5.1 percentage points deterioration in the combined ratio, which was predominantly driven by 7.4 percentage points increase in the loss ratio, offset partially by lower acquisition cost ratio and underwriting expense ratio. The increase in the loss ratio was predominantly driven by CAT event losses, partially offset by lower attritional and large event losses as well as lower prior year adverse reserve development.
•Foreign exchange gains (losses): The GBP and Euro movement was largely subdued in Q2 2026. In Q2 2025, the foreign exchange gain was driven mainly by the remeasurement of our net monetary assets based on a stronger pound against the U.S. dollar.
Offset partially by:
•Interest expense: Decreased by $1.0 million driven by the reduction in outstanding debt.
Consolidated Results of Operations for YTD 2026 compared to YTD 2025
Basic book value per share increased by $0.33 per share, or 1.6%, to $21.22 per share from $20.89 per share at December 31, 2025. Fully diluted book value per share increased by $0.18 per share, or 0.9%, to $20.61 per share from $20.43 per share at December 31, 2025.
For the six months ended June 30, 2026 (“YTD 2026”), net income decreased by $23.8 million to $6.2 million, compared to the six months ended June 30, 2025 (“YTD 2025”) driven mainly by the following:
•Investment income: Decreased by $16.0 million primarily driven by:
◦Our investment in Solasglas reported a gain of $5.8 million (net return of 1.1%) during YTD 2026, compared to a gain of $13.9 million (net return of 2.9%) during YTD 2025; and
◦Lower net investment income for the same reason noted for Q2 2026. We recognized $1.0 million of unrealized losses on the fixed maturity investment portfolio for YTD 2026 driven by increase in interest rates during 2026, offset by a higher book yield on this portfolio.
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•Foreign exchange gains (losses): Unfavorable change of $16.1 million, driven mainly by the weakening of the pound against the U.S. dollar during YTD 2026, compared to the strengthening of the pound against the U.S. dollar during YTD 2025.
Offset partially by:
•Underwriting income: Increased by $5.6 million, driven by 1.8 percentage points improvement in combined ratio, primarily reflecting favorable prior year reserve development, which contributed to an improved loss ratio. For further information on CAT losses and prior year reserve development, refer to Note 8 of the financial statements.
•Interest expense: Decreased by $2.4 million driven by the reduction in our outstanding debt.
Results by Segment
The following is a discussion and analysis for each reporting segment.
Open Market Segment
Results for the Open Market segment were as follows:
Three months ended June 30 Six months ended June 30
2026 2025 % Change 2026 2025 % Change
Gross premiums written $ 152,202 $ 152,333 —% $ 332,549 $ 373,042 (11)%
Net premiums written $ 128,249 $ 142,111 (10)% $ 279,544 $ 337,720 (17)%
Net premiums earned $ 136,945 $ 140,554 (3)% $ 265,926 $ 290,195 (8)%
Net loss and LAE incurred (94,945) (83,475) (170,175) (196,238)
Acquisition costs (38,399) (40,900) (79,611) (81,781)
Other underwriting expenses (4,602) (4,861) (10,345) (9,658)
Deposit interest expense, net (46) (124) (78) (273)
Underwriting income (loss) (1,047) 11,194 5,717 2,245
Net investment income 4,409 5,629 (22)% 9,544 11,400 (16)%
Income before income taxes $ 3,362 $ 16,823 $ 15,261 $ 13,645
Underwriting ratios: 2026 2025 % Point Change 2026 2025 % Point Change
Loss ratio 69.3% 59.4% 9.9 64.0% 67.6% (3.6)
Acquisition cost ratio 28.0% 29.1% (1.1) 29.9% 28.2% 1.7
Composite ratio 97.3% 88.5% 8.8 93.9% 95.8% (1.9)
Underwriting expenses ratio 3.4% 3.5% (0.1) 3.9% 3.4% 0.5
Combined ratio 100.7% 92.0% 8.7 97.8% 99.2% (1.4)
Gross Premiums Written
Gross premiums written by line of business were as follows:
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Three months ended June 30 Six months ended June 30
2026 2025 Change 2026 2025 Change
Casualty $ 10,213 7% $ 20,008 13% $ (9,795) $ 21,861 7% $ 49,732 13% $ (27,871)
Financial 24,935 16% 16,416 11% 8,519 50,461 15% 40,480 11% 9,981
Health 40 —% 12 —% 28 249 —% 209 —% 40
Multiline 64,538 42% 52,742 35% 11,796 126,842 38% 119,076 32% 7,766
Property 14,135 9% 18,055 12% (3,920) 39,631 12% 48,094 13% (8,463)
Specialty 38,341 25% 45,100 30% (6,759) 93,505 28% 115,451 31% (21,946)
Total $ 152,202 100% $ 152,333 100% $ (131) $ 332,549 100% $ 373,042 100% $ (40,493)
Gross premiums written within our Open Market segment in Q2 2026 decreased by $0.1 million or 0.1%, compared to Q2 2025. However, there was a significant change in business mix during quarter. The overall net reduction was predominantly attributable to the following lines of business:
•Casualty: The $9.8 million, or 49.0%, decrease was mainly due to the non-renewal of certain reinsurance programs in our general liability, umbrella liability, and workers’ compensation business as part of our strategy to reduce our exposure to the Casualty line of business.
•Property: The $3.9 million, or 21.7%, decrease was mainly due to lower premiums on quota share property catastrophe programs due to lower participation and rate reduction, coupled with a decrease in estimated reinstatement premiums as a result of reducing our estimated CAT losses for the California wildfires (2025 accident year); and
•Specialty: The $6.8 million, or 15.0%, decrease was driven by the following:
◦Downward premium estimate revisions in Q2 2026 for quota-share reinsurance treaties written in prior years; positive premium estimate revisions in Q2 2025 for a quota-share reinsurance treaty; and rate reductions for business renewed in 2026;
◦Offset partially by $2.8 million of estimated reinstatement premiums relating to the CAT loss associated with the Middle East conflict.
Offset partially by:
•Multiline: The $11.8 million, or 22.4%, increase was driven mostly by growth in the FAL business bound during Q1 2026, coupled with higher negative premium revision to our estimated ultimate gross premiums for certain 2023 and 2024 FAL treaties in Q2 2025.
•Financial: The $8.5 million, or 51.9%, increase was driven by additional reported premiums in our mortgage and transactional liability business, coupled with new surety and financial multiline treaties.
Gross premiums written within our Open Market segment in YTD 2026 decreased by $40.5 million or 10.9%, compared to YTD 2025, with similar change in business mix as in Q2 2026. The decrease was predominantly for the same reasons noted for Q2 2026.
Net Premiums Written
Ceded premiums written in Q2 2026 was $24.0 million, resulting in net premiums written of $128.2 million, compared to $10.2 million and $142.1 million, respectively, in Q2 2025. The increase in ceded premiums written of 134.3% was driven primarily due to new retrocession treaties for our Multiline business. This was partially offset by reduced quota share retrocession activity within our Specialty line of business due to lower estimated inward premiums.
Ceded premiums written in YTD 2026 was $53.0 million, resulting in net premiums written of $279.5 million, compared to $35.3 million and $337.7 million, respectively, in YTD 2025. The increase in ceded premiums written of 50.1% was driven by new retrocession treaties for our Multiline business, coupled with additional excess of loss retrocessional coverage within our Specialty business in 2026 to manage our overall exposure to aviation, marine
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and energy risks. This was partially offset by reduced quota share retrocession activity within our Property and Specialty lines of business due to lower estimated inward premiums.
Net Premiums Earned
Net premiums earned by line of business were as follows:
Three months ended June 30 Six months ended June 30
2026 2025 Change 2026 2025 Change
Casualty $ 11,636 8 % $ 24,680 18 % $ (13,044) $ 27,644 10 % $ 52,023 18 % $ (24,379)
Financial 18,820 14 % 15,306 11 % 3,514 34,274 13 % 29,621 10 % 4,653
Health 76 — % 43 — % 33 137 — % 88 — % 49
Multiline 58,080 42 % 45,640 32 % 12,440 115,614 43 % 99,362 34 % 16,252
Property 11,772 9 % 13,803 10 % (2,031) 29,692 11 % 32,309 11 % (2,617)
Specialty 36,561 27 % 41,082 29 % (4,521) 58,565 22 % 76,792 26 % (18,227)
Total $ 136,945 100% $ 140,554 100% $ (3,609) $ 265,926 100% $ 290,195 100% $ (24,269)
Net premiums earned within our Open Market segment in Q2 2026 and YTD 2026 decreased by $3.6 million or 2.6%, and $24.3 million or 8.4%, compared to Q2 2025 and YTD 2025, respectively.
The change is influenced by the amount and timing of net premiums written during the current year and prior years, coupled with the business mix written in the form of excess of loss versus proportional contracts. Additionally, within the Financial line and certain Specialty line classes, the gross premiums written for some treaties are earned over multiple years, corresponding with the anticipated risk coverage period.
Additionally, for the above periods, the decrease in Casualty line was due to the non-renewal of certain reinsurance programs as part of our strategy to reduce our exposure to this business. The downward premium estimate revision on older accident years also contributed to the decrease in Property and Specialty’s net premiums earned, in addition to the reduction in reinstatement premium relating to the lower estimated CAT losses for California wildfires in our Property line of business. The reduction in Specialty net premiums earned was partially offset by $2.8 million of reinstatement premiums relating to the Middle East conflict.
Loss ratio
The components of the loss ratio for our Open Market segment were as follows:
Three months ended June 30 Six months ended June 30
2026 2025 % Point Change 2026 2025 % Point Change
Current year:
Attritional loss ratio 51.2 % 55.5 % (4.3) 52.5 % 54.5 % (2.0)
Large event loss ratio 0.9 % 4.6 % (3.7) 1.8 % 2.4 % (0.6)
CAT event loss ratio 19.4 % — % 19.4 11.8 % 9.3 % 2.5
Current year loss ratio 71.5 % 60.1 % 11.4 66.1 % 66.2 % (0.1)
Prior year reserve development ratio (2.1) % (0.7) % (1.4) (2.1) % 1.4 % (3.5)
Loss ratio 69.4 % 59.4 % 10.0 64.0 67.6 % (3.6)
Current Year Loss Ratio
The Q2 2026 current year loss ratio for Open Market increased by 11.4 percentage points to 71.5%, compared to Q2 2025, driven mainly by current year CAT event losses, partially offset by lower attritional loss and large event loss ratios. While the YTD 2026 current year loss ratio decreased only by 0.1 percentage points to 66.1%, compared to YTD 2025, the lower attritional loss and large event loss ratios offset by an increase in CAT event loss ratio.
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Attritional loss ratio
The 4.3 percentage points improvement in Q2 2026 attritional loss ratio was predominantly due to:
•Multiline: decreased by 6.9% mainly due to the change in business mix within the Multiline portfolio, with the FAL class of business representing most of the total premium earned at lower attritional loss ratio than other classes of business within Multiline compared to Q2 2025. We also reduced our exposure to the commercial auto class in the past year, which had a higher attritional loss ratio.
•Specialty: decreased by 9.2% predominantly due to favorable claims experience mainly on agriculture and whole account energy and marine treaties, as well as a refinement to our reserving approach that recognizes favorable trends, particularly as they relate to large loss claims experience on non-proportional contracts, quicker than we previously estimated. These effects were partially offset by establishing higher loss ratios on new and renewal business in anticipation of softening rates within this line of business.
Offset partially by:
•Financial: increased by 4.7% mainly due to an increase in our expected losses on more recent underwriting years for the transactional liability class of business.
The 2.0 percentage points improvement in YTD 2026 attritional loss ratio is predominantly in line with the same trends noted for Q2 2026.
Large event loss ratio
During Q2 2026 we incurred $3.8 million relating to two energy losses; partially offset by the reduction in our prior estimates of large event losses recognized in Q1 2026. For Q2 2025, large event loss was driven mostly by the Air India crash in India.
During YTD 2026 we incurred $4.8 million relating to four large event losses in our Property and Specialty lines, compared to $7.1 million relating to three event losses in our Specialty line during YTD 2025.
CAT event loss ratio
During Q2 2026 we incurred an additional $20 million of CAT event losses relating to the Middle East conflict and $6.5 million for the QatarEnergy facility explosion, compared to no CAT event losses in Q2 2025.
During YTD 2026 we incurred $31.5 million of CAT event losses of which $25 million is related to the Middle East conflict and $6.5 million for the QatarEnergy facility explosion. The Middle East conflict reserves include one known full-limit loss accounting for $7.6 million. Other specific event losses contributed $9.9 million of the total $25 million reserve, and the remaining $7.5 million is our best estimate of incurred but not reported losses from the conflict. However, there is still a high degree of uncertainty surrounding the insured loss estimates due to limited access to affected areas, and restrictions imposed in certain territories. During YTD 2025 we incurred $27.0 million of CAT event losses relating to the California wildfires. For these CAT event losses, there were no loss recoverables triggered from our excess of loss retrocession treaties.
Prior Year Reserve Development Ratio
The Open Market segment’s prior year favorable reserve development improved by 1.4 percentage points in Q2 2026 compared to Q2 2025 driven predominantly by the reduction in our CAT loss estimate for the California wildfires in 2025 based on new client information and better loss emergence for our whole account marine & energy excess of loss business; partially offset by large event loss deteriorations relating to 2025 events.
The Open Market segment’s prior year favorable reserve development ratio was 2.1% for YTD 2026 compared to prior year adverse reserve development ratio 1.4% for YTD 2025. Refer to Note 8 of the financial statements for further details.
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Acquisition cost ratio
The acquisition cost ratio for the Open Market segment decreased by 1.1 percentage points in Q2 2026 compared to Q2 2025, primarily due to the change in business mix and predominantly by the following lines of business:
•Financial: Driven mainly by our transactional liability business due to lower profit commission in response to adverse loss reserve development during Q2 2026.
•Multiline: Mainly due to lower acquisition costs on our FAL business at higher net premium earned level.
•Specialty: Due to higher reinstatement premium earned relating to current CAT events with no corresponding acquisition costs; higher percentage of excess of loss treaties at low acquisition costs compared to quota share treaties; and mix in classes of business within Specialty.
This was partially offset by an increase in acquisition cost ratio for Property business driven mainly by the reversal of previously recognized reinstatement premium with no corresponding acquisition costs relating to the California wildfires CAT losses.
The acquisition cost ratio increased by 1.7 percentage points in YTD 2026 compared to YTD 2025, predominantly due to the following lines of business:
•Property: Driven mainly by the reversal of previously recognized reinstatement premium described above for Q2 2026.
•Casualty: Driven mainly by the change in business mix at higher acquisition cost ratio.
This was offset partially by lower acquisition cost ratios for Financial and Specialty lines, mainly for the same reasons noted for Q2 2026. The change in business mix within the Open Market segment also contributed to the partial offset of the increase in total acquisition cost ratio.
Underwriting expense ratio
The underwriting expense ratio for the Open Market segment decreased by 0.1 percentage points to 3.4% in Q2 2026 compared to Q2 2025, predominantly due to a decrease in professional fees and short-term incentive compensation expense due to the Company’s net loss in Q2 2026 compared to net income in Q2 2025, which included partial reversal of the short-term incentive compensation expense accrued in Q1 2026.
The underwriting expense ratio increased by 0.5 percentage points to 3.9% in YTD 2026 compared to YTD 2025, mainly due to higher personnel costs and share-based compensation; partially offset by lower accrued short-term incentive compensation expense for the same reason noted for Q2 2026.
Net investment income
For the Open Market segment, net investment income declined by 22% to $4.4 million in Q2 2026 compared to Q2 2025, and by 16% to $9.5 million for YTD 2026, compared to YTD 2025.
The decrease was predominantly due to lower investment income on funds at Lloyd’s due to partially replacing the collateral with an unsecured LC, coupled with lower interest income earned from restricted cash and cash equivalents due to the interest rate cuts by central banks during 2025. Additionally, we recognized $0.4 million and $1.0 million of unrealized losses on the fixed maturity investment portfolio for Q2 2026 and YTD 2026, respectively, primarily due to increase in market yields. The unrealized losses were offset by a higher book yield on this portfolio.
Income before income taxes
Income before income taxes for the Open Market segment was $3.4 million for Q2 2026, compared to $16.8 million for Q2 2025. The decrease was driven predominantly by lower underwriting results and lower investment income.
Income before income taxes for the Open Market segment was $15.3 million for YTD 2026, compared to $13.6 million for YTD 2025. The increase was predominantly attributable to improved underwriting results, partially offset by lower net investment income.
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Innovations Segment
Results for the Innovations segment were as follows:
Three months ended June 30 Six months ended June 30
2026 2025 % Change 2026 2025 % Change
Gross premiums written $ 30,916 $ 27,596 12 % $ 78,509 $ 55,062 43 %
Net premiums written $ 18,560 $ 22,716 (18) % $ 50,741 $ 46,687 9 %
Net premiums earned $ 24,868 $ 21,386 16 % $ 50,034 $ 40,391 24 %
Net loss and LAE incurred (15,375) (15,244) (31,301) (25,590)
Acquisition costs (5,635) (6,012) (13,385) (12,045)
Other underwriting expenses (1,284) (1,620) (3,346) (3,181)
Underwriting income (loss) 2,574 (1,490) 2,002 (425)
Net investment income (loss) (479) 431 615 879
Corporate and other expenses (579) (602) (4) % (1,301) (1,174) 11 %
Income (loss) before income taxes $ 1,516 $ (1,661) $ 1,316 $ (720)
Underwriting ratios: 2026 2025 % Point Change 2026 2025 % Point Change
Loss ratio 61.8 % 71.3 % (9.5) 62.6 % 63.4 % (0.8)
Acquisition cost ratio 22.7 % 28.1 % (5.4) 26.8 % 29.8 % (3.0)
Composite ratio 84.5 % 99.4 % (14.9) 89.4 % 93.2 % (3.8)
Underwriting expenses ratio 5.2 % 7.6 % (2.4) 6.7 % 7.9 % (1.2)
Combined ratio 89.7 % 107.0 % (17.3) 96.1 % 101.1 % (5.0)
Gross Premiums Written
Gross premiums written by line of business were as follows:
Three months ended June 30 Six months ended June 30
2026 2025 Change 2026 2025 Change
Casualty $ 5,366 17 % $ 6,254 23 % $ (888) $ 15,496 20 % $ 12,939 23 % $ 2,557
Financial 7,691 25 % 3,039 11 % 4,652 18,241 23 % 4,823 9 % 13,418
Health 1,270 4 % 2,295 8 % (1,025) 1,103 1 % 5,930 11 % (4,827)
Multiline 11,097 36 % 12,099 44 % (1,002) 31,105 40 % 26,803 49 % 4,302
Specialty 5,492 18 % 3,909 14 % 1,583 12,564 16 % 4,567 8 % 7,997
Total $ 30,916 100 % $ 27,596 100 % $ 3,320 $ 78,509 100 % $ 55,062 100 % $ 23,447
Gross premiums written within our Innovations segment in Q2 2026 increased by $3.3 million or 12.0%, compared to Q2 2025. The increase was predominantly attributable to the following lines of business:
•Financial: The 153.1% increase was driven mainly by new business and growth from prior year quota share reinsurance treaties.
•Specialty: The 40.5% increase was driven predominantly by new business and growth from prior year quota share reinsurance treaties mainly within our travel class of business; partially offset by downward premium revision to our estimated ultimate gross premiums within our contingency class of business.
Offset partially by:
•Health: The 44.7% decrease was driven predominantly by downward premium revision to our estimated ultimate gross premiums based on new client information.
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•Multiline: The 8.3% decrease was driven by lower premium volume from our Syndicate 3456.
Gross premiums written within our Innovations segment in YTD 2026 increased by $23.4 million or 42.6%, compared to YTD 2025. The increase was across all lines of business, except Health, driven by new business and exposure growth from existing treaties. The growth in the Multiline was predominantly driven by our Syndicate 3456. For YTD 2025, there was also a $2.4 million downward premium estimate revision for one quota share treaty in Specialty, which contributed to the favorable change in YTD 2026.
The reduction in Health’s gross premiums written for YTD 2026 was due to same explanation as for Q2 2026.
Net Premiums Written
Ceded premiums written in Q2 2026 was $12.4 million, resulting in net premiums written of $18.6 million, compared to $4.9 million and $22.7 million, respectively, in Q2 2025. Ceded premiums written in YTD 2026 was $27.8 million, resulting in net premiums written of $50.7 million, compared to $8.4 million and $46.7 million, respectively, in YTD 2025.
For both periods, the increase in ceded premiums written was predominantly driven by the Innovations whole-account retrocession program in which we have ceded 28.5% of Innovations-related programs incepting Q4 2024 onwards and 33% from January 1, 2026, in addition to two new quota share retrocession treaties in 2026.
Net Premiums Earned
Net premiums earned by line of business were as follows:
Three months ended June 30 Six months ended June 30
2026 2025 Change 2026 2025 Change
Casualty $ 8,298 33 % $ 5,228 24 % $ 3,070 $ 17,813 36 % 10,897 27 % $ 6,916
Financial 4,994 20 % 2,687 13 % 2,307 10,783 22 % 3,729 9 % 7,054
Health 886 4 % 939 4 % (53) 1,457 3 % 2,312 6 % (855)
Multiline 6,303 25 % 11,129 52 % (4,826) 13,615 27 % 23,153 57 % (9,538)
Specialty 4,387 18 % 1,403 7 % 2,984 6,366 13 % 300 1 % 6,066
Total $ 24,868 100 % $ 21,386 100 % $ 3,482 50,034 100 % 40,391 100 % $ 9,643
Net premiums earned in Q2 2026 increased by 16.3%, compared to Q2 2025. Net premiums earned in YTD 2026 increased by 23.9%, compared to YTD 2025. The change relates to the amount and timing of net premiums written during the current year and prior years.
The earning of the whole-account retrocession programs noted for Innovations’ net premiums written are included in the Multiline business, which contributed to the decline in the net premiums earned for Multiline for both periods presented above.
Loss ratio
The components of the loss ratio were as follows:
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Three months ended June 30 Six months ended June 30
2026 2025 % Point Change 2026 2025 % Point Change
Current year:
Attritional loss ratio 54.6 % 59.4 % (4.8) 58.3 % 58.5 % (0.2)
Large event loss ratio — % — % — — % — % —
CAT event loss ratio — % — % — — % — % —
Current year loss ratio 54.6 % 59.4 % (4.8) 58.3 % 58.5 % (0.2)
Prior year reserve development ratio 7.2 % 11.8 % (4.6) 4.3 % 4.9 % (0.6)
Loss ratio 61.8 % 71.3 % (9.4) 62.6 % 63.4 % (0.8)
Current Year Loss Ratio
The current year loss ratio in Q2 2026 for the Innovations segment improved by 4.8 percentage points, compared to Q2 2025, predominantly due to lower attritional loss ratio for the Multiline business mainly due to change in business class mix, coupled with an increase in attritional loss ratio for our Financial line in response to signs of poor performance in Q2 2025 not repeated in Q2 2026. This was partially offset by an increase in attritional loss ratio for the Specialty business mainly due to a change in business class mix.
The current year loss ratio in YTD 2026 was relatively in line with YTD 2025. However, there was variability in attritional loss ratio within the lines of business in Innovations. The trend in this variability was broadly in line with the explanation provided for Q2 2026.
The Innovations segment was not impacted by any current CAT or large events for the periods presented in the above table.
Prior Year Reserve Development Ratio
Prior year adverse reserve development for the Innovations segment was 7.2% for Q2 2026, driven mainly by one large general liability claim within our Casualty business (accident year 2022); partially offset by the favorable reserve development relating to our Syndicate 3456 (accident year 2024) in our Multiline business. Prior year adverse reserve development was 11.8% for Q2 2025, due to higher volume of claims than expected in our Financial business (accident years 2022-2023).
For YTD 2026, the prior year adverse reserve development was 4.3%, a decrease of 0.6 percentage points compared to YTD 2025. Refer to Note 8 of the financial statements for further details.
Acquisition cost ratio
The acquisition cost ratio decreased by 5.4 percentage points to 22.7% in Q2 2026, compared to Q2 2025. This was predominantly driven by the lower sliding scale commission on a quota share treaty as a result of a large general liability claim within Innovations’ Casualty business, coupled with a change in lines of business mix and an increase of excess of loss treaties at lower ceding commissions than quota share treaties. This decrease was partially offset by an increase in acquisition costs for our Syndicate 3456 in our Multiline business, coupled with lower acquisition costs in Q2 2025 for our Financial and Specialty business due to downward premium revisions on contracts with higher acquisition cost ratios with no similar adjustment in Q2 2026.
The acquisition cost ratio decreased by 3.0 percentage points to 26.8% in YTD 2026, compared to YTD 2025. This was mainly due to the lower acquisition costs in Casualty for the same reason as Q2 2026, coupled with an increase of excess of loss treaties at lower ceding commissions than quota share treaties. This decrease was partially offset by an increase in acquisition costs for our Syndicate 3456 in our Multiline business and a higher acquisition cost ratio for our Financial business due to new business at higher commission rates. Additionally, the acquisition cost ratio for Specialty in YTD 2025 benefitted from a reversal of premium earned at a higher acquisition cost ratio.
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Underwriting expense ratio
The underwriting expense ratio for the Innovations segment improved by 2.4 percentage points in Q2 2026, compared to the same period in 2025, primarily due to an increase in net premiums earned. Additionally, decrease in underwriting expenses was driven by lower accrued short-term incentive compensation expense due to the Company’s net loss in Q2 2026 compared to net income in Q2 2025,
The underwriting expense ratio improved by 1.2 percentage points in YTD 2026, compared to YTD 2025, primarily due to an increase in net premiums earned.
Net investment income
For Q2 2026, the Innovations segment reported a net investment loss of $0.5 million, compared to net investment income of $0.4 million in Q2 2025. The unfavorable change was predominantly driven by a $1.5 million impairment for one holding in our Innovations’ private equity portfolio.
Net investment income was $0.6 million for YTD 2026, compared to $0.9 million in YTD 2025. The decrease was driven by the above impairment charge, partially offset by additional investment income earned from a higher average outstanding restricted cash balance to secure LC and trust accounts relating to the Innovations reinsurance treaties.
Income (loss) before income taxes
For the Innovations segment, income before income taxes was $1.5 million and $1.3 million in Q2 2026 and YTD 2026, respectively, compared to loss before income taxes of $1.7 million and $0.7 million in Q2 2025 and YTD 2025, respectively. The improved performance in 2026 was predominantly driven by underwriting income; partially offset by weaker investment results.
Other Corporate
Runoff Underwriting Business
For Q2 2026 and YTD 2026, the Innovations-related property business in runoff generated an underwriting loss of $1.8 million, compared to underwriting loss of $1.6 million and $1.5 million in Q2 2025 and YTD 2025, respectively. The underwriting loss in these periods was driven by prior year adverse reserve development.
Income from Investment in Solasglas
For Q2 2026 and YTD 2026, Solasglas reported a net loss of 5.4% and net return of 1.1%, respectively, compared to a net loss of 4.0% and net return of 2.9% for Q2 2025 and YTD 2025, respectively. The following table provides a breakdown of the gross and net investment return for Solasglas.
Three months ended June 30 Six months ended June 30
2026 2025 2026 2025
Long portfolio gains (losses) 12.0 % 1.2 % 13.2 % (0.2) %
Short portfolio gains (losses) (12.3) (8.9) (7.2) (4.2)
Macro gains (losses) (5.4) 3.5 (4.2) 8.2
Other income and expenses(1) (0.3) (0.2) (0.6) (0.6)
Gross investment return (6.0) % (4.4) % 1.2 % 3.2 %
Net investment return(1) (5.4) % (4.0) % 1.1 % 2.9 %
1 “Other income and expenses” excludes performance compensation but includes management fees. “Net investment return” incorporates both of these amounts. For further information about management fees and performance compensation, refer to Note 3.
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For Q2 2026, the significant contributors to Solasglas’ investment return were long positions in Green Brick Partners (GBRK), Centene (CNC), and PENN Entertainment (PENN). The largest detractors were long positions in U.S. interest rate derivatives and gold, and a short basket position of memory stocks.
For YTD 2026, the significant contributors to Solasglas’ investment return were long positions Acadia Healthcare (ACHC), GBRK, and Fluor Corp (FLR). The largest detractors were long positions in U.S. interest rate derivatives and Kyndryl Holdings (KD), and a short basket position of memory stocks.
Each month, we post the Solasglas investment returns on our website (www.greenlightre.com).
Financial Condition
Investments
The following table provides a breakdown of our total investments:
June 30, 2026 December 31, 2025
Investment in Solasglas $ 493,409 67.5 % $ 504,555 79.7 %
Fixed maturities 172,865 23.6 65,609 10.4
Other investments 64,925 8.9 62,911 9.9
Total investments $ 731,199 100.0 % $ 633,075 100.0 %
At June 30, 2026, our total investments increased by $98.1 million, or 15.5%, to $731.2 million from December 31, 2025.
Investments in Solasglas
Our investment in Solasglas decreased by $11.1 million to $493.4 million at June 30, 2026, driven by net redemptions; partially offset by $5.8 million net investment income for YTD 2026.
DME Advisors reports the composition of Solasglas’ portfolio on a delta-adjusted basis, which it believes is the appropriate manner to assess the exposure and profile of investments and reflects how it manages the portfolio. An option’s delta is the option price’s sensitivity to the underlying stock (or commodity) price. The delta-adjusted basis is the number of shares or contracts underlying the option multiplied by the delta and the underlying stock (or commodity) price.
The following table represents the composition of Solasglas’ investments:
June 30, 2026 December 31, 2025
Long % Short % Long % Short %
Equities and related derivatives 95.7 % (64.6) % 91.0 % (53.3) %
Private and unlisted equity securities 2.2 — 1.9 —
Debt instruments 0.1 — 0.1 —
Total 98.0 % (64.6) % 93.0 % (53.3) %
The above exposure analysis does not include cash (U.S. dollar and foreign currencies), gold and other commodities, credit default swaps, sovereign debt, foreign currency derivatives, interest rate derivatives, inflation swaps and other macro positions. Under this methodology, a total return swap’s exposure is reported at its full notional amount and options are reported at their delta-adjusted basis. At June 30, 2026, Solasglas’ exposure to gold on a delta-adjusted basis was 9.0% (December 31, 2025: 11.9%).
At June 30, 2026, 95.3% of Solasglas’ portfolio was valued based on quoted prices in actively traded markets (Level 1), 3.4% was composed of instruments valued based on observable inputs other than quoted prices (Level 2), and a nominal amount was composed of instruments valued based on non-observable inputs (Level 3). At June 30, 2026, 1.3% of Solasglas’ portfolio consisted of private equity funds valued using the funds’ net asset values as a practical expedient.
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Fixed Maturities
Our investment in fixed maturities increased by $107.3 million to $172.9 million at June 30, 2026 from December 31, 2025, driven by further transfers to the managed fixed maturity portfolio from restricted cash and cash equivalents, coupled with a new investment in a liquid fund approved by Lloyd’s. The funding for this new investment came from funds previously held by Lloyd’s and previously reported in our reinsurance balances receivable.
The following table provides the credit quality distribution of our fixed maturity portfolio at June 30, 2026.
Credit Rating
Fair Value % of Total AAA AA- to AA+ A to A+ Not Subject to Credit Rating
Fixed Maturities:
U.S. government and agencies $ 26,120 15 % $ — $ 26,120 $ — $ —
Agency RMBS 23,671 14 — 23,671 — —
Corporate bonds 38,487 22 — 6,504 31,983 —
ABS 6,058 4 6,058 — — —
Total fixed maturity portfolio 94,336 55 6,058 56,295 31,983 —
Liquidity funds 78,529 45 — — — 78,529
Total fixed maturity investments $ 172,865 100 % $ 6,058 $ 56,295 $ 31,983 $ 78,529
At June 30, 2026, the fixed maturity portfolio had a weighted average credit rating of AA, a book yield of 3.9%, and an average duration of 1.9 years. See Note 4 and Note 7 of the financial statements for further details.
Other Investments
The other investment holdings relate to private investments made by the Innovations segment. The increase of $2.0 million to $64.9 million from December 31, 2025 was predominantly due to additional investments on two existing holdings and three new investments. This was partially offset by a $1.5 million impairment charge.
Restricted cash and cash equivalents
We use our restricted cash and cash equivalents primarily for funding trusts and letters of credit issued to our ceding insurers. Our restricted cash decreased by $5.2 million, or 1.0%, from $532.0 million at December 31, 2025, to $526.8 million at June 30, 2026. This decrease was primarily due to the transfer of restricted cash and cash equivalents to our fixed maturity portfolio to further enhance net investment return, partially offset by additional cash collateral driven from business growth and renewals.
Reinsurance balances receivable
Our reinsurance balances receivable decreased by $23.5 million, or 3.5%, to $640.9 million at June 30, 2026, from $664.4 million at December 31, 2025. While there was an increase of $49.9 million in premiums receivable, net of collections, this was partially offset by $34.9 million reduction in premiums held by Lloyds’ syndicates mainly due to the final release for the syndicates’ 2023 year of account, net of receivables from open years of account (2024 through 2026). Additionally, there was $44.2 million net release of Funds at Lloyds, which was transferred to a liquidity fund, as described above under “Fixed Maturities”.
Loss and LAE Reserves; Loss and LAE Recoverable
Our total gross loss and LAE reserves increased by $15.8 million, or 1.6%, to $983.8 million from $968.0 million at December 31, 2025. The increase was predominantly due to the total incurred losses on earned premiums being offset by paid losses during the quarter. See Note 8 of the financial statements for a summary of changes in outstanding loss and LAE reserves and a description of prior period reserve developments.
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Our total loss and LAE recoverable increased by $13.4 million, or 16.5%, to $94.8 million from $81.4 million at December 31, 2025. The increase is driven predominantly by an increase in whole-account quota share retrocession agreements based on assumed premiums. At June 30, 2026, there was no loss recoverable on paid losses. See Note 9 of the financial statements for a description of the credit risk associated with our retrocessionaires.
Probable Maximum Loss (“PML”)
At July 1, 2026, our estimated largest PML at a 1-in-250-year return period for a single event, and in aggregate, was $143.1 million and $156.8 million, respectively, both relating to the peril of North Atlantic Hurricane, with relatively no change since April 1, 2026. The below table contains the expected modeled loss for each of our peak peril regions and sub-regions for both a single event loss and aggregate loss measures at the 1-in-250-year return period, net of estimated reinstatement premiums and loss recoverables.
July 1, 2026
Net 1-in-250 Year Return Period
Peril Single Event Loss Aggregate Loss
North Atlantic Hurricane 143,143 156,789
Florida Hurricane 102,656 105,366
Southeast Hurricane (excluding Florida) 119,703 122,936
Gulf of Mexico Hurricane 75,619 76,844
Northeast Hurricane 90,506 91,931
North America Earthquake 125,229 129,063
California Earthquake 118,532 119,485
Pacific Northwest Earthquake 36,574 36,621
New Madrid Earthquake 22,231 22,278
Europe Windstorm 74,026 78,215
Japan Earthquake 19,696 20,000
Japan Windstorm 10,077 10,186
Debt
At June 30, 2026, our total outstanding debt increased by $4.0 million to $8.8 million since December 31, 2025. Refer to Note 10 of the financial statements for further information.
Total shareholders’ equity
Total shareholders’ equity decreased by $10.3 million to $697.7 million, compared to $708.0 million at December 31, 2025. The decrease was due to $19.2 million of stock repurchases; partially offset by the net income of $6.2 million and share-based compensation adjustment to additional paid-in capital for YTD 2026.
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Liquidity and Capital Resources
Refer to the “Liquidity and Capital Resources” section included in Item 7 of our 2025 Form 10-K for a general discussion of our liquidity and capital resources.
Liquidity
The following table summarizes our sources and uses of funds:
Six months ended June 30
2026 2025
Total cash provided by (used in):
Operating activities $ 68,664 $ 78,819
Investing activities (94,670) (62,932)
Financing activities (15,200) (6,875)
Effect of currency exchange on cash 589 961
Net cash inflows (outflows) (40,617) 9,973
Cash, beginning of period (1) 643,732 649,087
Cash, end of period $ 603,115 $ 659,060
(1) Cash includes unrestricted and restricted cash and cash equivalents - see Note 6 of the financial statements.
Cash provided by operating activities
The $10.2 million decrease in cash provided by operating activities in YTD 2026 compared to YTD 2025 was driven mainly by the ebb and flow from our underwriting activities. Cash inflows from underwriting activities generally include premiums, net of acquisition costs, and reinsurance recoverables. Cash outflows principally include payments of losses and LAE, payments of retrocession premiums, and operating expenses. Cash provided by operating activities may vary significantly from period to period due to the timing of these inflows and outflows.
Cash used in investing activities
The $31.7 million increase in cash used for investing activities was driven mainly by additional net contributions to fixed maturity investments, for which the source of funds came from restricted cash and funds held by Lloyd’s. This was partially offset by the net redemptions from Solasglas in YTD 2026, compared to net contributions in YTD 2025.
Cash used in financing activities
The cash used for financing activities during YTD 2026 was attributable to the repurchase of $19.2 million of our ordinary shares, partially offset by $4.0 million of borrowings from our debt facility. The cash used for financing activities during YTD 2025 was driven by $5.0 million of stock repurchases and $1.9 million of debt repayment.
Capital Resources
The following table summarizes our debt and capital structure:
June 30, 2026 December 31, 2025
Debt - outstanding principal $ 9,000 $ 5,000
Shareholders’ equity 697,682 707,977
Total capital $ 706,682 $ 712,977
Ratio of debt to shareholders’ equity 1.3 % 0.7 %
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The ratio of debt to shareholders’ equity provides an indication of our leverage and capital structure, along with some insights into our financial strength. In addition to the above capital, we also have LC facilities to support our reinsurance business operations where we are not licensed or admitted as a reinsurer.
Ordinary Shares
At June 30, 2026, there were 32,881,538 outstanding ordinary shares, a decrease of 1,016,171 since December 31, 2025, mainly due to 1,102,065 of share repurchases, coupled with the net forfeited performance restricted stock awards granted in 2023. This was partially offset by the issuance of ordinary shares for vested service RSUs.
We expect that the existing capital base and internally generated funds will be sufficient to implement our business strategy for the foreseeable future.
LC Facilities
See Note 10 of the financial statements for details of all outstanding LC facilities, including the new and amended CIBC LC facilities in April 2026, resulting in an increase from $200 million to $300 million of total committed LC facilities by CIBC.
Contractual Obligations and Commitments
At June 30, 2026, our contractual obligations and commitments by period due were as follows:
Less than 1 year 1-3 years 3-5 years More than 5 years Total
Operating activities
Loss and loss adjustment expense reserves (1) $ 397,445 $ 359,078 $ 128,874 $ 98,377 $ 983,774
Operating lease obligations (2) 640 1,270 887 — 2,797
Financing activities
Debt (principal payments) (3) — — 9,000 — 9,000
Total $ 398,085 $ 360,348 $ 138,761 $ 98,377 $ 995,571
(1) Due to the nature of our reinsurance operations, the amount and timing of the cash flows associated with our reinsurance contractual liabilities will fluctuate, perhaps materially, and, therefore, are highly uncertain.
(2) See Note 17 of the consolidated financial statements in the 2025 Form 10-K.
(3) See Note 10 of the financial statements.
Critical Accounting Estimates
Our financial statements contain certain amounts that are inherently subjective and have required management to make assumptions and best estimates to determine reported values. If certain factors, including those described in “Part II. Item 1A. Risk Factors” included in our 2025 Form 10-K, cause actual events or results to differ materially from our underlying assumptions or estimates. In that case, there could be a material adverse effect on our results of operations, financial condition, or liquidity. The most significant estimates relate to:
•loss and loss adjustment expense reserves;
•premiums written and earned and related premium receivable, net of expected credit losses;
•reinsurance recoverable on unpaid losses and loss adjustment expenses, net of expected credit losses; and
•valuation of investments, including impairments.
We believe that the critical accounting estimates discussion in “Part II. Item 7. — Management’s Discussion and Analysis of Financial Condition and Results on Operations” of our 2025 Form 10-K continues to describe the significant estimates and judgments included in the preparation of these financial statements.
Recent Accounting Pronouncements
At June 30, 2026, there were no recently issued accounting pronouncements that we have not yet adopted that we expect could have a material impact on our results of operations, financial condition, or liquidity. See Note 2 of the financial statements.
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