Executive Summary

Record underwriting performance: combined ratio improved to 86.6% (best in company history) with net underwriting income of $22.3M; however, investment losses (-$17.4M) drove a GAAP net loss of -$4.4M (-$0.13) and a modest 0.4% q/q decline in fully diluted BVPS to $18.90 .
Open Market segment delivered an 84.5% combined ratio; Innovations posted 96.7% underwriting CR but was hit by a $16.4M write-down on its largest investment, leading to an $11.3M net segment loss .
Capital actions strengthen flexibility: term loan refinanced into a $50M revolver; October debt reduced to ~$20M; new Citibank LoC for Funds at Lloyd’s freed ~$60.7M cash; subsequent AM Best upgrade to “A” (Excellent) provides an additional tailwind .
Outlook: Management expects to renew most non-cat open market business and “perhaps grow somewhat” despite softening, with Innovations continuing strong organic growth; Hurricane Melissa is a Q4 event and not expected to be significant for GLRE .

What Went Well and What Went Wrong

What Went Well
- Record underwriting quarter: combined ratio of 86.6% and $22.3M underwriting income, driven by strong underlying profitability and a benign catastrophe quarter; CEO: “lowest in the Company’s history” and “robust performance in our underwriting book” .
- Segment execution: Open Market combined ratio improved to 84.5%, supported by Funds at Lloyd’s growth and selective reductions in casualty exposure .
- Balance sheet and ratings momentum: refinanced debt into a revolver, reduced leverage post-quarter, established new LoC for Lloyd’s, and subsequently achieved an AM Best upgrade to “A” (Excellent) .
What Went Wrong
- Investment drag: total investment loss of -$17.4M (Solasglas -3.2% and an Innovations revaluation), pivoting the quarter to a -$4.4M net loss despite record underwriting .
- Innovations valuation impairment: $16.4M write-down on the highest valued investment, leading to an $11.3M net loss for the segment; expense ratio also elevated as the business scales .
- Modest book value dip: fully diluted BVPS decreased 0.4% q/q to $18.90, reflecting the investment loss despite share repurchases and underwriting strength .

Financial Results

Quarterly performance vs prior year and prior quarter

Metric	Q3 2024	Q2 2025	Q3 2025
Net premiums earned ($USD Millions)	$151.9	$161.6	$165.4
Net underwriting income ($USD Millions)	$6.1	$8.1	$22.3
Combined ratio (%)	95.9%	95.0%	86.6%
Total investment income (loss) ($USD Millions)	$30.3	$(7.8)	$(17.4)
Net income (loss) ($USD Millions)	$35.2	$0.3	$(4.4)
Diluted EPS ($)	$1.01	$0.01	$(0.13)
Fully diluted book value per share ($)	$18.72 (FY’24)	$18.97	$18.90

Segment performance

Segment (3Q)	Net premiums earned ($USD Millions)	Underwriting income ($USD Millions)	Combined ratio (%)
Open Market Q3 2024	$126.6	$6.9	94.5%
Open Market Q3 2025	$144.4	$22.2	84.5%
Innovations Q3 2024	$21.8	$1.4	93.6%
Innovations Q3 2025	$21.0	$0.7	96.7%

Select KPIs and balance sheet

KPI	Q1 2025	Q2 2025	Q3 2025
Gross premiums written ($USD Millions)	$247.9	$179.6	$184.4
Loss ratio (%)	72.9%	61.9%	53.6%
Acquisition cost ratio (%)	27.8%	29.0%	28.4%
Underwriting expense ratio (%)	3.9%	4.1%	4.6%
Share repurchases ($)	—	$5.0M	$2.0M
Debt outstanding ($USD Millions, quarter-end)	$59.8	$58.9	$34.7

Notes: CFO indicated October debt reduced further to ~$20M and a new LoC for Funds at Lloyd’s released $60.7M of cash .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Open Market renewal outlook	Near-term renewals	Not previously quantified	Expect to renew most non-cat business; rates/terms remain attractive despite softening; modest growth possible	Updated qualitative
Innovations growth	Ongoing	Not previously quantified	Expect continued strong organic growth and new business opportunities	Updated qualitative
Hurricane Melissa impact	Q4 2025	N/A	Do not expect a significant loss; event is in Q4	New disclosure
Innovations expense ratio	Multi-quarter	N/A	Elevated near term as business scales; expected to normalize with growth	New disclosure
Capital structure	Near-term	Term loan outstanding	Replaced with $50M revolver; debt reduced further post-Q3	Improved flexibility

No formal numerical revenue/EPS margin guidance provided.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Catastrophe exposure/seasonality	Q1: California wildfires added 14 pts to CR; reserves strengthened; benign cat otherwise . Q2: benign cat; CR 95% .	Q3: benign cat; record CR; Hurricane Melissa is Q4 event, not expected to be significant .	Improving; lower cat losses in Q2–Q3.
Casualty repositioning	Q1: Non-renewing open market casualty; migrate to Innovations; strengthened prior casualty reserves . Q2: casualty top-line declining as planned .	Mix shift remains; Open Market growth from FAL, financial and specialty .	Positive risk selection/mix quality.
Funds at Lloyd’s (FAL)	Q2: FAL a key growth driver .	Continued growth; new LoC facility (GBP 45M) released $60.7M cash .	Scaling with improved capital efficiency.
Investment stance	Q1: Solasglas +7.2%; lower gross/net exposure in bearish tilt . Q2: -4% with short squeezes; net exposure ~2% .	Q3: -3.2%; avoiding AI cohort; core gold and SOFR positions; net exposure ~25% end-Q3, ~20% end-Oct; +1.6% Oct .	Defensive, selective risk-on in Oct.
Macro/tariffs	Q1: Tariffs could lift rebuild costs; mixed exposure impact . Q2: Activity front-ran tariff implementation; expect reversal .	Maintains macro hedges (SOFR, inflation swaps); caution outside AI cohort .	Neutral-to-cautious.
Capital and leverage	Q2: Ongoing buybacks; monitoring capital .	Refinanced to revolver; reduced debt to ~$20M in Oct; improved ROE potential .	Strengthening flexibility.
Ratings trajectory	—	AM Best upgraded to “A” (Excellent) post-quarter .	Positive inflection.

Management Commentary

CEO (underwriting): “combined ratio of 86.6%, the lowest in the Company’s history… supported by robust performance in our underwriting book and favorable catastrophe loss activity.”
CEO (investments/Innovations): “Solasglas … lost 3.2%… we suffered a net unrealized loss of $11.3M on our Innovations Investment portfolio,” including a “$16.4M write-down of our highest valued investment… idiosyncratic… we hold our innovations investments for the long term.”
CEO (outlook): “We do not expect a significant loss [from Hurricane Melissa]… we expect to renew most of our non-cat business and perhaps grow somewhat… Innovations… continued strong organic growth.”
Chairman (strategy): “Outside of the boom surrounding a handful of AI… we are simply not comfortable underwriting long investments within the AI ecosystem… Solasglas returned 1.6% in October.”
CFO (capital): “Replaced [term loan] with a five-year $50 million revolver… subsequently… repaid an additional $15 million and currently have $20 million of debt outstanding… new LoC facility… Lloyd’s… released $60.7 million of cash.”

Q&A Highlights

Macro positioning of Solasglas: Core gold exposure (physical plus optionality), long SOFR futures into 2026 (view: more cuts than market), and inflation swaps (expect higher realized inflation than priced) .
Long-term corporate outlook and valuation: Despite discount to book value, management believes structural improvements support ROE above cost of equity and shares should justify trading at or above book; liquidation not preferred given potential costs and value leakage .

Estimates Context

S&P Global consensus for Q3 2025 was unavailable for EPS and revenue; therefore, we cannot assess beat/miss versus Street for the quarter (consensus not provided by S&P Global for GLRE this period).
Actual results: Diluted EPS $(0.13); net premiums earned $165.4M; combined ratio 86.6% .
Implication: In absence of consensus, buyside will anchor on record underwriting profitability and BVPS resilience versus investment volatility; subsequent AM Best upgrade may prompt upward adjustments to cost-of-capital assumptions .

Key Takeaways for Investors

Underwriting engine inflecting: materially lower combined ratio (86.6%) and higher underwriting income suggest improved pricing/mix and effective cat positioning; durability into renewals is a key watch item .
Investment swing factor remains: Solasglas short pain and Innovations mark-down dominated GAAP earnings; October’s +1.6% offers some early Q4 relief, but quarterly variability likely persists .
Balance sheet/capital flexibility improved: revolver plus LoC facility and debt paydown enhance liquidity and potential ROE; AM Best’s upgrade to “A” could support franchise value and terms with cedents/brokers .
Casualty de-risking on track: deliberate non-renewals in open market casualty offset by FAL, financial and specialty growth; Innovations expected to scale, bringing expense ratio normalization over time .
Sequential book value stability: despite investment losses, fully diluted BVPS only down 0.4% q/q; YTD +5.3% through Q3, supported by underwriting and buybacks .
Near-term trading catalysts: follow-through on underwriting discipline at 1/1 renewals, further investment performance data, and market reaction to the AM Best upgrade .

Appendix: Additional Data

Nine months ended (context)

Metric	9M 2024	9M 2025
Net premiums earned ($USD Millions)	$471.8	$495.5
Net underwriting income ($USD Millions)	$9.8	$22.6
Combined ratio (%)	97.9%	95.4%
Total investment income ($USD Millions)	$77.0	$15.3
Net income ($USD Millions)	$70.2	$25.6
Diluted EPS ($)	$2.02	$0.74

Additional qualitative disclosures

Share repurchases: $2.0M in Q3 at $12.88 average; $5.0M in Q2 at $13.99 average .
Segment drivers: Open Market growth driven by Funds at Lloyd’s, property and financial lines; casualty decreased due to non-renewals; Innovations premium growth with some retroceded impact and temporary expense ratio elevation .
Investment color: Solasglas -3.2% in Q3; gold strength; shorts detracted; selective new positions (e.g., PG&E, Fluor stub vs NuScale) .

All citations: Q3 2025 press release and financials ; Q3 2025 call transcript ; Q2 2025 press release/financials ; Q2 2025 call ; Q1 2025 press release/financials ; Q1 2025 call ; AM Best upgrade PR .

GREENLIGHT CAPITAL RE, LTD. (GLRE)·Q3 2025 Earnings Summary