Greenlight Capital Re : Financial Statements of GREENLIGHT REINSURANCE, LTD. (..3022f396 cdd5 4a69 8b76 601bc5b3496a)

About this update from Greenlight Reinsurance, Ltd.

‌Financial Statements of‌ GREENLIGHT REINSURANCE, LTD. December 31, 2025 and 2024 ‌GREENLIGHT REINSURANCE, LTD. Table of Contents Page Report of Independent Auditors 1 Balance Sheets 5 Statements of Operations 6 Statements of Shareholder's Equity 7 Statements of Cash Flows 8 Notes to the Financial Statements 9 Deloitte C Touche LLP 60 Nexus Way, 8 th floor Camana Bay P.O. Box 1787 Grand Cayman KY1-1109 Cayman Islands Tel: +1 345 949 7500 Fax: +1 345 949 8238 https://www.deloitte.com/ky INDEPENDENT AUDITOR'S REPORT To the Board of Directors of Greenlight Reinsurance, Ltd. Opinion We have audited the financial statements of Greenlight Reinsurance, Ltd., a wholly owned subsidiary of Greenlight Capital Re, Ltd. (the "Company"), which comprise the balance sheets as of December 31, 2025 and 2024, and the related statements of operations, shareholder's equity, and cash flows, for each of the two years in the period ended December 31, 2025, and the related notes to the financial statements (collectively referred to as the "financial statements"). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025, in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of Solasglas Investments, LP, an equity method investment of the Company, as of December 31, 2025 and 2024 and for each of the two years in the period ended December 31, 2025. The Company's investment in Solasglas Investments, LP as of December 31, 2025 and 2024 was $461.7 million and $359.0 million, respectively, and its equity in net income of Solasglas Investments, LP was $32.6 million and $30.8 million for the years ended December 31, 2025 and 2024. The financial statements of Solasglas Investments, LP were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Solasglas Investments, LP, is based solely on the report of the other auditors. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the incurred and paid claims development information for years preceding the most recent reporting period and the historical average annual percentage payout of incurred claims by age in Note 8 to the financial statements be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Financial Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the financial statements are available to be issued. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. Loss and loss adjustment expense reserves - Refer to Notes 2 and 8 to the financial statements Critical Audit Matter Description The Company's estimate of loss and loss adjustment expense reserves is derived using expected trends in claim severity and frequency and other factors that may vary significantly as claims are settled. The estimate is sensitive to significant assumptions, including the initial expected loss ratio and loss development factors. The estimate is also sensitive to the selection of actuarial methods and weighting of these methods applied to project the ultimate losses, the estimation of ultimate reserves associated with catastrophic events, and other factors. Further, not all catastrophic events can be modeled using traditional actuarial methodologies, which increases the degree of judgment needed in estimating loss reserves for such events. Auditing the Company's methods, assumptions and best estimate of the cost of the ultimate settlement and administration of claims represented by the incurred but not reported ("IBNR") claims included in recorded Loss and loss adjustment expense reserves involved especially subjective auditor judgment and an increased extent of effort, including the involvement of our actuarial specialists. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to loss and loss adjustment expense reserves included the following, among others We tested the effectiveness of controls over the valuation of the recorded loss and loss adjustment expense reserves, including the review and approval process that management has in place for significant actuarial methods and assumptions used and the approval of management's best estimate of loss and loss adjustment expense reserves. We tested the completeness and accuracy of the underlying data that served as the basis for the Company's actuarial analysis, including historical claims data, to test the reasonableness of key inputs to the actuarial estimate. With the assistance of our actuarial specialists: − We independently developed an estimate of the reserves for selected contracts, compared our estimates to those booked by the Company, and evaluated the differences. − We evaluated the Company's methodologies against recognized actuarial practices for the remaining contracts. We also evaluated the assumptions used by the Company using our industry knowledge and experience and other analytical procedures. − We compared the results of the quarterly reserve studies prepared by independent external actuaries to management's best estimate and evaluated the differences. In performing an audit in accordance with GAAS, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. March 20, 2026 ‌GREENLIGHT REINSURANCE, LTD. BALANCE SHEETS December 31, 2025 and 2024 (expressed in thousands of U.S. dollars, except per share and share amounts) December 31, 2025 December 31, 2024 Assets Investments Investment in related party investment fund, at fair value $ 461,740 $ 358,990 Fixed maturity investments, at fair value 53,028 - Other investments 60,700 70,922 Total investments 575,468 429,912 Cash and cash equivalents 54,045 40,845 Restricted cash and cash equivalents 506,177 568,976 Reinsurance balances receivable 549,413 548,276 Reinsurance recoverable on unpaid loss and loss adjustment expenses 30,649 36,661 Deferred acquisition costs 90,971 76,627 Unearned premiums ceded 16,065 13,475 Due from parent and affiliated companies 684 8,213 Other assets 5,817 3,252 Total assets 1,829,289 1,726,237 Liabilities and equity Liabilities Loss and loss adjustment expense reserves 839,310 745,912 Unearned premium reserves 304,230 280,626 Reinsurance balances payable 44,555 66,379 Funds withheld 15,206 21,878 Other liabilities 9,277 4,395 Due to affiliated companies 1,497 699 Total liabilities 1,214,075 1,119,889 Commitments and Contingencies (Note 15) Shareholder's equity Ordinary share capital (par value $0.10; issued and outstanding, 1,001) (2024: 1,001) - - Additional paid-in capital 382,355 443,355 Retained earnings 232,859 162,993 Total shareholder's equity 615,214 606,348 Total liabilities and equity $ 1,829,289 $ 1,726,237 The accompanying Notes to the Financial Statements are an integral part of the Financial Statements. ‌GREENLIGHT REINSURANCE, LTD. STATEMENTS OF OPERATIONS For the years ended December 31, 2025 and 2024 (expressed in thousands of U.S. dollars) 2025 2024 Revenues Gross premiums written $ 656,374 $ 606,019 Gross premiums ceded (39,979) (42,937) Net premiums written 616,395 563,082 Change in net unearned premium reserves (23,332) (522) Net premiums earned 593,063 562,560 Income from investment in related party investment fund (see Note 3 ) 32,550 30,848 Net investment income 19,587 39,181 Foreign exchange gains (losses) 5,795 (4,444) Total revenues 650,995 628,145 Expenses Net loss and loss adjustment expenses incurred 375,585 389,128 Acquisition costs 170,356 161,819 Underwriting expenses 22,303 17,536 Corporate and other expenses 12,464 9,567 Deposit interest expense 421 2,735 Total expenses 581,129 580,785 Net income $ 69,866 $ 47,360 The accompanying Notes to the Financial Statements are an integral part of the Financial Statements. ‌GREENLIGHT REINSURANCE, LTD. STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY For the years ended December 31, 2025 and 2024 (expressed in thousands of U.S. dollars) 2025 2024 Ordinary share capital Balance - beginning of period $ - $ - Change in share capital - - Balance - end of period - - Additional paid-in capital Balance - beginning of period 443,355 455,855 Additional paid in capital received - 10,000 Additional paid in capital returned (61,000) (22,500) Balance - end of period 382,355 443,355 Retained earnings Balance - beginning of period 162,993 115,633 Net income 69,866 47,360 Balance - end of period 232,859 162,993 Total shareholder's equity $ 615,214 $ 606,348 The accompanying Notes to the Financial Statements are an integral part of the Financial Statements. ‌GREENLIGHT REINSURANCE, LTD. STATEMENTS OF CASH FLOWS For the years ended December 31, 2025 and 2024 (expressed in thousands of U.S. dollars) 2025 2024 Cash flows from operating activities Net income $ 69,866 $ 47,360 Adjustments to reconcile net income or loss to net cash provided by operating activities: Income from investments in related party investment fund (32,550) (30,848) Net realized and unrealized losses on investments 11,517 1,006 Net change in: Reinsurance balances receivable (1,137) (66,033) Reinsurance recoverable on unpaid loss and loss adjustment expenses 6,012 (18,905) Deferred acquisition costs (14,344) (2,055) Unearned premiums ceded (2,590) (4,301) Due from (to) parent and affiliated companies 8,327 (5,612) Loss and loss adjustment expense reserves 93,398 148,502 Unearned premium reserves 23,604 8,447 Reinsurance balances payable (21,824) 24,302 Funds withheld (6,672) 4,588 Other items, net 3,565 (4,331) Net cash provided by operating activities 137,172 102,120 Cash flows from investing activities Proceeds from redemptions of investment in Solasglas 14,000 34,000 Contributions to investment in Solasglas (84,200) (128,648) Sale of fixed maturity investments 69 - Purchases of other investments (3,977) (1,730) Purchases of fixed maturity investments (53,052) - Purchases of other assets (441) (1,072) Proceeds from sale of other investments 2,634 889 Net cash used in investing activities (124,967) (96,561) Cash flows from financing activities Proceeds from additional paid-in capital from Parent - 10,000 Return of additional paid-in capital to Parent (61,000) (22,500) Net cash used in financing activities (61,000) (12,500) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (804) 421 Cash, cash equivalents and restricted cash at beginning of the period 609,821 616,341 Decrease in cash, cash equivalents and restricted cash (49,599) (6,520) Cash, cash equivalents and restricted cash at end of the period $ 560,222 $ 609,821 The accompanying Notes to the Financial Statements are an integral part of the Financial Statements. ‌GREENLIGHT REINSURANCE, LTD. NOTES TO THE FINANCIAL STATEMENTS Years ended December 31, 2025 and 2024 ORGANIZATION AND BASIS OF PRESENTATION Organization Greenlight Reinsurance, Ltd. (the "Company") was incorporated as an exempted company under the Companies Act of the Cayman Islands on July 13, 2004 and has a Class "D" insurer license issued in accordance with the terms of The Insurance Act, 2010 (as amended) and underlying regulations thereto (the "Act"), and is subject to regulation by the Cayman Islands Monetary Authority ("CIMA"). Greenlight Re commenced underwriting in April 2006. The Company is a wholly-owned subsidiary of Greenlight Capital Re, Ltd. (the "Parent"). The Parent's ordinary shares are listed on the Nasdaq Global Select Market under the symbol "GLRE". Refer to Note 14 for Greenlight Re's quota share retrocession transactions with affiliates. Basis of Presentation These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The following amounts in the prior period financial statements have been reclassified to conform to the presentation of the current financial statements: In 2025, the Company updated its definition of CAT event loss to be any individual CAT loss in excess of $5 million, net of reinsurance recoveries. For the various U.S. tornadoes (including severe convective storms), the Company has aggregated these and reported the total as CAT loss in Note 8. Accordingly, the comparative prior years' CAT loss disclosures have been recast to conform with this change. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company's financial position and results of operations as at the end of December 31, 2025 and for the comparative periods presented. Tabular dollar amounts are in thousands, except otherwise noted. All amounts are reported in U.S. dollars. ‌SIGNIFICANT ACCOUNTING POLICIES The Company's significant accounting policies are as follows: Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from these estimates. The Company's significant estimates include: ● 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. Investments Investment in related party investment fund The Company records its investment in the related party investment fund based on fair value using the net asset value ("NAV") practical expedient, with the Company's share of the fund's net income (loss) reported as "Income (loss) from investment in related party investment fund" in the statements of operations. Fixed Maturity Investments Investments in fixed maturity securities are classified as trading and are reported at fair value. Investment transactions are recorded on the trade date with balances pending settlement reflected in the balance sheets as other assets for investments sold or as other liabilities for investments purchased. Fair values of fixed maturity securities are based on pricing data received from third parties. The interest income, net realized gains (losses), and unrealized gains (losses) on fixed maturities are included in net investment income in the statements of operations. Realized gains or losses on the sale of fixed maturity investments are determined on the basis of the first in first out cost method. Other investments The Company's other investments consist of private investments. The Company measures its private equity investments without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from identical or similar investments of the same issuers (the "measurement alternative"), with such changes recognized in " Net investment income (loss) " in the statements of operations. The Company considers the need for impairment on a by-investment basis based on certain indicators. Under the measurement alternative, the Company makes two types of valuation adjustments: ● When the Company observes an orderly transaction of an investee's identical or similar equity securities, the Company adjusts the carrying value based on the observable price as of the transaction date. Once the Company records such an adjustment, the investment is considered an "asset measured at fair value on a nonrecurring basis." ● If the Company determines that the investment is impaired and the fair value is less than its carrying value, it writes down the investment to its fair value. Once the Company records such an adjustment, the investment is considered an "asset measured at fair value on a nonrecurring basis." The Company measures its private debt (including convertible debt) investments at amortized cost, which approximates fair value. Cash and Cash Equivalents Cash and cash equivalents consist of cash and short-term, highly liquid investments with original maturity dates of three months or less. Restricted cash and cash equivalents are presented separately in the balance sheets. Premium Revenue Recognition The Company writes excess of loss contracts and quota share contracts, and estimates the ultimate premiums for the contract period. The Company bases these estimates on actuarial pricing models and information received from ceding companies. For excess of loss contracts, the Company writes the total ultimate estimated premiums at the contract's inception. For quota share contracts, the Company writes premiums in the same periods in which the underlying insurance contracts are written, based on cession statements from cedents. The Company typically receives these statements monthly or quarterly, depending on the terms specified in each contract. For any reporting lag, the Company estimates premiums written based on the portion of the estimated ultimate premiums relating to the risks bound during the lag period. For multi-year contracts, reinsurance premiums are recorded at the inception of the contract based on management's best estimate of total premiums to be received. Premiums are recognized on an annual basis for multi-year contracts where the cedants have the ability to unilaterally commute or cancel coverage within the term of the contract. Management regularly reviews premium estimates. Such review includes the Company's experience with the ceding companies, managing general underwriters, familiarity with each market, the timing of the reported information, a comparison of reported premiums to expected ultimate premiums along with a review of the aging and collection of premiums. Management evaluates the appropriateness of the premium estimates on the basis of these reviews and records any adjustments to these estimates in the period in which they are determined. Changes in premium estimates, including premium receivable on both excess of loss and quota share contracts, are not unusual and may result in significant adjustments in any period. A portion of amounts included in "Reinsurance balances receivable" in the Company's balance sheets represent estimated premiums written, net of commissions and brokerage, that are not currently due based on the terms of the underlying contracts. Additional premiums due on a contract with no remaining coverage period are earned in full when written. Certain contracts allow for reinstatement premiums in the event of a loss. Reinstatement premiums are written and earned when a triggering loss event occurs, based on management's estimates of the ultimate reinstatement premiums. These estimates are subsequently adjusted when the actual reinstatement premiums are known. Premiums written are recognized as earned over the contract period in proportion to the risk covered. Unearned premiums represent the unexpired portion of reinsurance provided. Reinsurance Premiums Ceded The Company reduces the risk of future losses on business assumed by reinsuring certain risks and exposures with other reinsurers (referred to as "retrocessionaires"). The Company remains liable to the extent that any retrocessionaire fails to meet its obligations and to the extent the Company does not hold sufficient security for its unpaid obligations. Ceded premiums are written during the period in which the risks incept and the associated expense is recognized over the contract period in proportion to the protection provided. Unearned premiums ceded represent the unexpired portion of reinsurance obtained. Acquisition Costs Policy acquisition costs vary with, and are directly related to, the successful production of new and renewal business, and consist principally of commissions, taxes and brokerage expenses. The Company presents acquisition costs incurred on reinsurance assumed net of commissions earned on reinsurance ceded. However, if the sum of a contract's expected losses and loss expenses and deferred acquisition costs exceeds associated unearned premiums and expected investment income, a premium deficiency is determined to exist. In this event, the Company writes off deferred acquisition costs to the extent necessary to eliminate the premium deficiency. If the premium deficiency exceeds deferred acquisition costs the Company accrues a liability for the deficiency. The Company did not recognize any premium deficiency adjustments for the years presented in these financial statements. Policy acquisition costs also include profit commissions, which the Company recognized on a basis consistent with its estimate of losses and loss expenses. Loss and Loss Adjustment Expense Reserves and Recoverable The Company's loss and loss adjustment expense ("LAE") reserves are composed of: ● case reserves for loss and LAE resulting from claims notified to the Company by its clients; and ● additional case reserves in excess of the case reserves reported by cedents based on the Company's internal assessment; and ● reserves for estimated loss and LAE incurred by insureds and reinsureds but not yet reported ("IBNR") to the Company, including unknown future developments on loss and LAE that are known to the Company. The Company estimates these reserves based on reports from ceding companies, industry data and historical experience analyzed using standard actuarial and statistical techniques. The analysis includes assessing currently available data, predictions of future developments, estimates of future trends and other factors. These estimates are reviewed by the Company's reserving committee at least quarterly and adjusted as necessary. The final settlement of losses may vary, perhaps materially, from the reserves recorded. The Company recognizes all adjustments to the estimates in the period they are determined. U.S. GAAP does not permit establishing loss reserves, which include case reserves and IBNR loss reserves, until the occurrence of an event that may give rise to a claim. As a result, only loss reserves applicable to losses incurred up to the reporting date are established. There is no allowance for the establishment of loss reserves to account for expected future loss events including for catastrophe and weather-related events (herein referred as "CAT" events). The "Loss and loss adjustment expenses recoverable" in the Company's balance sheets represents the amounts due from retrocessionaires for unpaid loss and LAE on retrocession agreements. Ceded IBNR recoverable amounts are estimated based on the Company's actuarial estimates. These estimates are reviewed periodically and adjusted when deemed necessary. The Company may be unable to recover the loss and LAE recoverable amounts due as a result of the retrocessionaires' inability to pay. The Company regularly evaluates the financial condition of its retrocessionaires and calculates an allowance for expected credit losses (see "Reinsurance Assets" below). For losses stemming from exposure to natural perils, loss reserves are generally established based on loss payments and case reserves reported by clients when, and if, received. Estimates for IBNR losses are added to the case reserves as the Company deems appropriate. See Note 8 for a summary of the Company's estimation process for CAT events. For contracts without significant exposure to-natural perils, initial reserves for each contract are determined based on a combination of (i) the pricing analysis performed prior to binding the contract; (ii) the underwriter's detailed knowledge of the cedent, its operations and future business plans; and (iii) the professional judgment and recommendation of the Chief Actuary. In the pricing analysis, the Company utilizes information from the client and industry data. This information typically includes, but is not limited to, data related to premiums, losses, exposure, business mix, industry performance, and associated trends covering as much history as deemed appropriate. The level of detail within the data obtained varies greatly depending on the underlying contract, line of business, client, and coverage provided. In all cases, the Company requests each client to provide data for each reporting period, which, depending on the contract, could be on a monthly or quarterly basis. The terms and conditions of each contract specify the data reporting requirements. Generally, the Company obtains regular updates of premium and loss-related information for the current and historical periods, and utilizes them to update the initially expected loss ratio. There may be a lag between (i) claims being reported by the underlying insured to the Company's cedent and (ii) claims being reported by the Company's cedent to the Company. This lag may impact the Company's loss reserve estimates. Client reports have predetermined due dates (for example, fifteen days after each month end). The timing of the reporting requirements is designed so that the Company receives premium and loss information as soon as practicable once the client has closed its books. Accordingly, there should be a short lag in such reporting. Additionally, most contracts that have the potential for large single event losses have provisions that such loss notifications are provided to the Company immediately upon the occurrence of an event. Once the updated information is received, the Company uses various standard actuarial methods for its quarterly analysis. Such methods typically include the following: ● Paid loss development method: Ultimate losses are estimated by calculating past paid loss development factors and applying them to exposure periods with further expected paid loss development. This method assumes that losses are paid in a consistent pattern. It provides an objective test of reported loss projections because paid losses contain no reserve estimates. ● Reported loss development method: Ultimate losses are estimated by calculating past reported loss development factors and applying them to exposure periods with further expected reported loss development. This method incorporates changes in payments and case reserves. ● Expected loss ratio method: Ultimate losses are estimated by multiplying earned premiums by an expected loss ratio. The expected loss ratio is often determined using industry data, historical company data, past pricing or reserving analysis performed, and actuarial judgment. This method is typically used for lines of business and contracts where there are no (or insignificant) historical losses or where past loss experience is not considered applicable to the current period. ● Bornhuetter-Ferguson paid loss method: Ultimate losses are estimated by modifying expected loss ratios to the extent losses paid to date differ from what would have been expected based upon the selected paid loss development pattern. This method avoids some distortions that could result from a large development factor being applied to a small base of paid losses to calculate ultimate losses. ● Bornhuetter-Ferguson reported loss method: Ultimate losses are estimated by modifying expected loss ratios to the extent losses reported to date differ from what would have been expected based upon the selected reported loss development pattern. This method avoids some distortions that could result from a large development factor being applied to a small base of reported losses to calculate ultimate losses. ● Frequency / Severity method: Ultimate losses are estimated by multiplying the ultimate number of claims (i.e., the frequency multiplied by the exposure base) by the estimated average cost per claim (i.e., the severity). This approach enables trends and patterns in the rates of claims emergence (i.e., reporting) and settlement (i.e., closure) and the average cost of claims to be analyzed separately. In addition, the Company may supplement its analysis with other reserving methodologies that it deems relevant to specific contracts. For each contract, the Company utilizes reserving methodologies it considers appropriate to calculate a best estimate of reserves. Whether the Company uses a single methodology or a combination depends upon the portfolio segment being analyzed and the actuary's judgment. The Company's reserving methodology does not require a fixed weighting of the various methods used. Certain methods are considered more appropriate than others depending on the type, structure, age, maturity and duration of the expected losses on the contract. For example, the Bornhuetter-Ferguson reported loss method might be more appropriate than a paid loss development method for relatively new contracts that have experienced little paid loss development. The Company's gross aggregate reserves are the sum of the best estimate reserves of all portfolio exposures. Generally, IBNR loss reserves are calculated by estimating the ultimate incurred losses and subtracting cumulative paid claims and case reserves. Each quarter, the Company's Reserving Committee, led by the Chief Actuary, meets to assess the adequacy of our loss reserves based on the reserve analysis and recommendations prepared by the Company's reserving department. The Company does not typically experience material claims processing backlogs, although such backlogs may occur following a major catastrophic event. At December 31, 2025 and 2024, the Company did not have a material backlog in its claims processing. The Company did not make any significant changes to the actuarial methodology or assumptions relating to its loss and LAE reserves for the years presented in the financial statements. Reinsurance Assets The Company calculates an allowance for expected credit losses for its reinsurance balances receivable and loss and LAE recoverable by applying a Probability of Default ("PD") / Loss Given Default ("LGD") model. The PD / LGD approach considers the Company's collectibility history on its reinsurance assets and representative external loss history. In calculating the probability of default, the Company also considers the estimated duration of its reinsurance assets. The Company evaluates each counterparty's creditworthiness based on credit ratings that independent agencies assign to the counterparty. The Company manages its credit risk in its reinsurance assets by transacting only with insurers and reinsurers that it considers financially sound. Credit ratings of the counterparties are forward-looking and consider various economic scenarios. The Company's evaluation of the required allowance for reinsurance balances receivable and loss and LAE recoverable considers the current economic environment as well as potential macroeconomic developments. For its retrocessional counterparties that are unrated, the Company may hold collateral in the form of funds withheld, trust accounts, or irrevocable letters of credit. In evaluating credit risk associated with reinsurance balances receivable, the Company considers its right to offset loss obligations against premiums receivable. The Company regularly evaluates its net credit exposure to assess the ability of cedents and retrocessionaires to honor their respective obligations. Net investment income (loss) The Company records interest income and interest expense on an accrual basis. Any realized and unrealized gains or losses from private investments (included in other investments) are determined on the basis of the specific identification method (by reference to cost or amortized cost, as appropriate). Additionally, net investment income (loss) includes realized and unrealized gains (losses) on derivative instruments. In connection with the Company's participation interest in Lloyd's syndicates, the Lloyd's syndicates invest a portion of the premiums withheld in investment funds and fixed-maturity securities. The Company records its share of income (or loss) from these assets as net investment income (loss) when reported by the syndicates, which is generally on a quarterly lag basis due to the timing of the availability of these quarterly financial reports. Foreign Exchange The reporting and functional currency of the Company and all its significant subsidiaries is the U.S. dollar. The Company records foreign currency transactions at the exchange rates in effect on the transaction date. Monetary assets and liabilities in foreign currencies are converted at the exchange rate in effect at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are carried at their historical exchange rate. Other Assets The Company's other assets consist primarily of prepaid expenses, right-of-use lease assets and leasehold improvements. Other Liabilities The Company's other liabilities consist primarily of accruals for legal and other professional fees, employee bonuses, and lease liabilities. Comprehensive Income (Loss) The Company has no comprehensive income or loss other than the net income or loss disclosed in the statements of operations. Taxation Under current Cayman Islands law, no corporate entity, including the Company, is obligated to pay taxes in the Cayman Islands on either income or capital gains. The Company has an undertaking from the Governor-in-Cabinet of the Cayman Islands, pursuant to the provisions of the Tax Concessions Act, as amended, that, in the event that the Cayman Islands enacts any legislation that imposes a tax on profits, income, gains or appreciations, or any tax in the nature of estate duty or inheritance tax, such tax will not be applicable to the Company before January 22, 2045. Recent Accounting Pronouncements Recently Issued Accounting Standards Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024-03"). This ASU 2024-03 requires more detailed disclosures about the type of expenses (including purchases of inventory, employee compensation, and depreciation / amortization) in commonly presented expense captions in the income statements (e.g. cost of sales, general and administrative expenses, and research and development). ASU 2024-03 is effective for public business entities for fiscal years beginning after December 15, 2026, and interim periods within fiscal years after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the disclosure impact of this guidance. ‌INVESTMENT IN RELATED PARTY INVESTMENT FUND The Company has entered into the Second Amended and Restated Exempted Limited Partnership Agreement (the "Solasglas LPA") of Solasglas Investments, LP ("Solasglas"), as amended from time to time, with DME Advisors II, LLC ("DME II"), as General Partner, Greenlight Re, and Greenlight Reinsurance Ireland, Designated Activity Company ("GRIL"), (together, the "GLRE Limited Partners"). Effective January 1, 2023, the Company increased the maximum Investment Portfolio to 60% of GLRE Surplus from 50%, as defined in the Solasglas LPA, which was further increased to 70% on August 1, 2024. Solasglas has entered into a Solasglas investment advisory agreement ("IAA") with DME Advisors. LP ("DME Advisors"), pursuant to which DME Advisors is the investment manager for Solasglas. DME II and DME Advisors are related to the Company, and each is an affiliate of David Einhorn, Chairman of the Company's Board of Directors (the "Chairman"). The Company has concluded that Solasglas qualifies as a variable interest entity ("VIE") under U.S. GAAP. In assessing its interest in Solasglas, the Company noted the following: DME II serves as Solasglas' general partner and has the power to appoint the investment manager. The Company does not have the power to appoint, change or replace the investment manager or the general partner except "for cause." Neither of the GLRE Limited Partners can participate in the investment decisions of Solasglas as long as Solasglas adheres to the investment guidelines provided within the Solasglas LPA. For these reasons, the GLRE Limited Partners are not considered to have substantive participating rights or kick-out rights. DME II holds an interest in excess of 10% of Solasglas' net assets, which the Company considers to represent an obligation to absorb losses and a right to receive benefits of Solasglas that are significant to Solasglas. Consequently, the Company has concluded that DME II's interests, not the Company's, meet both the "power" and "benefits" criteria associated with VIE accounting guidance. Therefore DME II is Solasglas' primary beneficiary. The Company presents its investment in Solasglas in its balance sheets in the caption "Investment in related party investment fund." The Company's maximum exposure to loss relating to Solasglas is limited to the Company's share of Partners' capital in Solasglas. At December 31, 2025, the Company's share of Partners' capital in Solasglas was $461.7 million (December 31, 2024: $359.0 million), representing 74.5% (December 31, 2024: 72.2%) of Solasglas's total capital, and 75.1% (December 31, 2024: 59.2%) of the Company's total shareholder's equity. DME II and GRIL held the remaining 25.5% (December 31, 2024: 27.8%) of Solasglas' total capital. The investment in Solasglas is recorded at the Company's share of Solasglas' capital as reported by Solasglas' third-party administrator. The Company can redeem its investment from Solasglas for operational purposes by providing 3 business days' notice to DME II. At December 31, 2025, the majority of Solasglas' long investments were composed of cash and publicly-traded equity securities, which could be readily liquidated to meet the Company's redemption requests. The Company's share of Solasglas' income from operations for the years ended December 31, 2025 and 2024 was $32.6 million and $30.8 million, respectively, and shown in the caption "Income from investment in related party investment fund" in the Company's statements of operations. The summarized financial statements of Solasglas are presented below. Summarized Statements of Financial Condition of Solasglas Investments, LP December 31, 2025 December 31, 2024 Assets Investments, at fair value $ 600,837 $ 504,828 Derivative contracts, at fair value 22,384 8,925 Due from brokers 281,505 188,296 Cash and cash equivalents - 40,354 Interest and dividends receivable 1,463 1,536 Total assets 906,189 743,939 Liabilities Investments sold short, at fair value (275,794) (234,977) Derivative contracts, at fair value (6,670) (4,452) Capital withdrawals payable (1,010) (4,000) Interest and dividends payable (2,528) (3,218) Accrued expenses and other liabilities (178) (180) Total liabilities (286,180) (246,827) Partners' capital $ 620,009 $ 497,112 The Company's share of Partners' Capital $ 461,740 $ 358,990 Summarized Statements of Operations of Solasglas Investments, LP Year ended December 31, 2025 2024 Investment income Dividend income (net of withholding taxes) $ 5,830 $ 3,108 Interest income 17,087 14,103 Total Investment income 22,917 17,211 Expenses Management fee (6,928) (6,074) Interest (11,371) (4,365) Dividends (3,264) (4,593) Research and operating (1,726) (1,568) Total expenses (23,289) (16,600) Net investment income (loss) (372) 611 Realized and change in unrealized gains (losses) Net realized gain (loss) (5,275) 97,865 Net change in unrealized appreciation (depreciation) 57,016 (46,316) Net gain on investment transactions 51,741 51,549 Net increase in Partners' capital (1) $ 51,369 $ 52,160 The Company's share of the increase in Partners' capital $ 32,550 $ 30,848 1 The net increase in Partners' capital is net of management fees and performance allocation presented below: Year ended December 31, 2025 2024 Management fees $ 6,928 $ 6,074 Performance allocation 3,968 3,734 Total $ 10,896 $ 9,808 Company's share: Management fees $ 6,437 $ 5,561 Performance allocation 3,617 3,428 Total $ 10,054 $ 8,989 See Note 14 for further details on management fees and performance allocation. ‌FIXED MATURITY INVESTMENTS For certain regulatory trust accounts used as collateral for reinsurance clients, the funds were invested in fixed maturity securities. Accordingly, these investments are restricted for reinsurance clients. The following table summarizes the fair value of fixed maturity investments: December 31, 2025 U.S. government and agencies $ 17,979 Agency residential mortgage-backed securities ("RMBS") 18,258 Corporate bonds 9,769 Asset-back securities ("ABS") 5,565 Non-agency RMBS 600 Municipal bonds 857 Total fixed maturity investments, at fair value $ 53,028 There were no fixed maturity securities at December 31, 2024. The following table summarizes the net realized and unrealized gains (losses) for the fixed maturity investments: Year ended December 31, 2025 Net realized gains (losses) $ - Change in net unrealized gains (losses) 49 Net realized and unrealized gains (losses) for fixed maturity investments $ 49 ‌OTHER INVESTMENTS Portfolio The Company's other investments primarily consist of Innovations-related private investments supporting technology innovators in the (re)insurance market. At December 31, 2025 Cost Unrealized gains Unrealized losses Accrued interest Fair value / carrying value Private equity securities $ 27,653 $ 38,034 $ (5,957) $ - $ 59,730 Private debt securities 1,464 - (573) 79 970 Total other investments $ 29,117 $ 38,034 $ (6,530) $ 79 $ 60,700 At December 31, 2024 Cost Unrealized gains Unrealized losses Accrued interest Fair value / carrying value Private equity securities $ 25,977 $ 50,913 $ (7,261) $ - $ 69,629 Private debt securities 2,713 - (1,500) 80 1,293 Total other investments $ 28,690 $ 50,913 $ (8,761) $ 80 $ 70,922 Private equities Measurement alternative During the years ended December 31, 2025 and 2024, the Company made further investments in equity securities in privately held entities that do not have readily determinable fair values. In accordance with ASC 321-10-35-2, the Company has elected to apply the measurement alternative to these new investments. Adjustments for observable price changes and impairments The Company recognized the following adjustments to the carrying values of the private investments and unlisted equity securities, resulting from observable price changes in orderly transactions and impairments: 2025 2024 Upward adjustments (1) $ 8,072 $ 2,826 Downward adjustments and impairments (2) $ 21,619 3,311 (1) The cumulative upward adjustments from inception to December 31, 2025, for outstanding holdings totaled $59.4 million. 2) The cumulative downward adjustments and impairments from inception to December 31, 2025, for outstanding holdings totaled $28.8 million. For certain impairment charges in the above table, the Company used valuation models to estimate the fair value, which incorporated significant unobservable inputs including projected cash flows provided by the investee's management, discount rates, growth rates, volatility assumptions, and current market multiples. Debt securities During the year ended December 31, 2025, the Company recognized impairment charges of $0.6 million (2024: $1.1 million, 2023: $0.5 million) relating to private debt securities. Net investment income The following table summarizes the change in unrealized gains (losses) and the realized gains (losses) for the Company's other investments, which are included in "Net investment income" in the statements of operations (see Note 12): Years ended December 31, 2025 2024 Gross realized gains $ 2,148 $ 346 Gross realized losses (3,065) (1,332) Net realized losses $ (917) $ (986) Change in unrealized gains (10,649) (20) Net realized and unrealized losses on other investments $ (11,566) $ (1,006) ‌RESTRICTED CASH AND CASH EQUIVALENTS The following table shows the breakdown of the Company's restricted cash and cash equivalents, along with a reconciliation of the total cash, cash equivalents, and restricted cash reported in the statements of cash flows: December 31, 2025 December 31, 2024 Restricted cash and cash equivalents: Cash securing trust accounts $ 195,489 $ 312,855 Cash securing letters of credit issued 310,688 256,121 Total restricted cash and cash equivalents 506,177 568,976 Cash and cash equivalents 54,045 40,845 Total cash, cash equivalents, and restricted cash $ 560,222 $ 609,821 Where the Company operates as a non-admitted carrier in certain foreign jurisdictions, regulatory trust accounts and letters of credit are issued to cedents. ‌FAIR VALUE MEASUREMENTS Fair Value Hierarchy The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on the extent to which the inputs are observable in the market. The categorization of financial instruments within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: ● Level 1: Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. ● Level 2: Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. ● Level 3: Unobservable inputs supported by little or no market activity and significant to the fair value of the assets and liabilities. The term "unobservable inputs" includes certain pricing models, discounted cash flow methodologies, and similar techniques. There have been no material changes in the Company's valuation techniques, nor have there been any transfers between Level 1 and Level 2, or Level 2 and Level 3 for the years presented in these financial statements. Assets measured at fair value on a nonrecurring basis At December 31, 2025 and 2024, the Company held $52.7 million and $62.6 million, respectively, of private equities measured at fair value on a nonrecurring basis. At December 31, 2025, the Company held $7.0 million (2024: $7.0 million) of private equities measured at cost. The Company classifies these investments as Level 3 within the fair value hierarchy. The following table summarizes the periods between the most recent fair value measurement dates and December 31, 2025, for the private equities measured at fair value on a nonrecurring basis: Less than 6 months 6 to 12 months Over 1 year Total Fair values measured on a nonrecurring basis $ 25,198 $ 4,024 $ 23,474 $ 52,696 Assets measured at fair value on a recurring basis Fixed maturity investments The following table summarizes the fair value hierarchy for the Company's fixed maturity portfolio. At December 31, 2025 Level 1 Level 2 Level 3 Total U.S. government and government $ 11,988 $ 5,991 $ - $ 17,979 Agency RMBS - 18,258 - 18,258 Corporate bonds - 9,769 - 9,769 ABS - 5,565 - 5,565 Non-agency RMBS - 600 600 Municipal bonds $ - $ 857 $ - 857 Total $ 11,988 $ 41,040 $ - $ 53,028 The following describes the valuation methodologies used to determine the fair value of the fixed maturity securities by asset class: U.S. government and government agencies : include bonds issued by the U.S. Treasury and mortgage pass-through agencies such as the Federal National Mortgage Association ("FNMA"), the Federal Home Loan Mortgage Corporation ("FHLMC") and the Government National Mortgage Association ("GNMA"). The fair value of U.S. Treasury securities is based on unadjusted quoted market prices in active markets; accordingly, these are classified as Level 1. The fair value of U.S. government agency securities is determined using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads are observable market inputs, these are classified as Level 2. RMBS : consist of bonds issued by FNMA, FHLMC, and GNMA. The fair value of these securities is priced using a mortgage pool specific model which uses daily inputs from the active to be announced market and the spread associated with each mortgage pool based on vintage. As the significant inputs used to price these securities are observable market inputs, these are classified as Level 2. Corporate bonds : consist of investment grade debt of a variety of corporate issuers and industries. The fair value for these securities is generally determined using the spread above the risk-free yield curve. These spreads are generally obtained from the new issue market, secondary trading and broker-dealer quotes. As the yields for the risk-free yield curve and the spreads are observable market inputs, these are classified as Level 2. ABS : include investment grade bonds backed by pools of loans with a variety of underlying collateral, including auto loans, credit card receivables, and collateralized loan obligations, originated by a variety of financial institutions. The fair value of these securities is determined using a model which uses prepayment speeds and spreads sourced primarily from the new issue market. As the significant inputs used to price these securities are observable market inputs, these are classified as Level 2. Municipal bonds: consist revenue bonds and general obligation bonds by U.S. domiciled state and municipal entities. The fair value for these securities is determined using spreads obtained from the new issue market, trade prices, and broker-dealers quotes. As the significant inputs used to price these securities are observable market inputs, these are classified as Level 2. Financial Instruments Disclosed, But Not Carried, at Fair Value At December 31, 2025, the carrying value of private debt securities (see Note 5 ) approximates their fair values. The Company classifies these financial instruments as Level 2 within the fair value hierarchy. ‌LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES The Company's loss and LAE reserves were composed of the following: December 31, 2025 December 31, 2024 Case reserves $ 205,757 $ 207,709 IBNR 633,553 538,203 Total $ 839,310 $ 745,912 Reserve Roll-forward The following provides a reconciliation of the Company's beginning and ending gross and net reserves for loss and LAE: Year ended December 31, 2025 2024 Gross balance at January 1 $ 745,912 $ 597,410 Less: Losses recoverable (36,661) (17,756) Net balance at January 1 709,251 579,654 Incurred losses related to: Current year 357,029 377,485 Prior years 18,556 11,643 Total incurred 375,585 389,128 Paid losses related to: Current year (38,109) (55,715) Prior years (253,120) (199,090) Total paid (291,229) (254,805) Foreign exchange and translation adjustment 15,054 (4,726) Net balance at December 31 808,661 709,251 Add: Losses recoverable (see Note 9) 30,649 36,661 Gross balance at December 31 $ 839,310 $ 745,912 Estimates for Catastrophe Events At December 31, 2025 and 2024, the Company's net reserves for losses and LAE include estimated amounts for several catastrophe and weather-related events (the "CAT losses"). The determination of the net reserves for losses and LAE related to CAT events represent the Company's best estimate of losses and LAE that have been incurred at December 31, 2025, and 2024. The determination of these net reserves for losses and LAE is estimated by management after a catastrophe occurs by completing an in-depth analysis of individual contracts which could potentially have been impacted by the CAT event. This in-depth analysis may rely on several sources of information including: catastrophe bulletins published by various independent statistical reporting agencies; estimates of the size of insured industry losses from the CAT event and the Company's corresponding market share; a review of the Company's reinsurance contracts to identify those contracts which may be exposed to the CAT event; a review of modeled loss estimates based on information previously reported by customers and brokers, including exposure data obtained during the underwriting process; discussions of the impact of the event with customers and brokers; and a review of the coverage provided by the Company's retrocession contracts (ceded reinsurance). While the Company believes its estimate of net reserves for losses and LAE is adequate for CAT losses that have been incurred at December 31, 2025, and 2024 based on current facts and circumstances, the Company monitors changes in paid and incurred losses in relation to each catastrophe in subsequent reporting periods and adjustments are made to estimates of ultimate losses for each event if there are developments that are different from previous expectations. The magnitude and volume of losses arising from CAT events is inherently uncertain. Adjustments are recorded in the period in which they are identified. Accordingly, actual losses for CAT events may ultimately differ materially from the Company's current estimates. Prior Year Reserve Development The Company's net adverse prior year development arises from changes to estimates for losses and LAE related to loss events that occurred in previous calendar years. Year ended December 31, 2025 The Company experienced $18.6 million in net adverse development on prior year loss and LAE reserves. This was comprised of: $54.0 million of reserve strengthening predominantly on the casualty line (various accident years) due to current economic and social inflation trends; coupled with adverse development in the financial line (2021 to 2024 accident years) due to a higher volume of claims than expected and worse than expected loss emergence for transactional liability business. Partially offset by $35.4 million of favorable reserve development on property stemming from benign catastrophe loss activity primarily on the 2024 accident year. Additionally, the multiline and specialty lines of business benefited from management's recognition of favorable reported loss emergence in the best estimate of its reserves. This was driven primarily by excess of loss reinsurance contracts covering accident years 2023 and 2024, where reported loss experience for events remained benign throughout the period in the portfolio. Year ended December 31, 2024 The Company experienced $11.6 million in net adverse reserve development on prior year loss and LAE reserves. This was comprised of: $18.8 million of reserve strengthening predominantly on the casualty line (various accident years) due to current economic and social inflation trends, coupled with adverse catastrophe related reserve development on the property line driven by the severe convective storms in the U.S. (mostly 2022 accident year) and Winter Storm Elliott (2022 accident year). Partially offset by $7.1 million of favorable reserve development mostly on the financial line (2017-2020 accident years), health line (mostly 2021 accident year ), and specialty line (mostly 2021 and 2023 accident year) due to better than expected loss emergence. Net Incurred and Paid Claims Development Tables by Accident Year The following tables present net incurred and paid claims development by accident year, total IBNR liabilities plus expected development on reported claims, and average annual percentage payout of incurred claims by age for each line of business. The loss development tables are presented on an accident year basis for each line of business. For the quota share retrocession transactions with affiliates (Note 14), these are included in the multiline loss development table. The Company does not discount reserves for losses and LAE. For incurred and paid claims denominated in currencies other than U.S. dollars, the following tables are presented using the foreign exchange rate in effect at the current year-end date. As a result, all prior year information has been restated to reflect December 31, 2025, foreign exchange rates. This treatment prevents changes in foreign currency exchange rates from distorting the claims development between the years presented. Additionally, for assumed proportional contracts, the presentation of net incurred and paid claims development tables by accident year is challenging due to the need to allocate loss information to the appropriate accident years. The Company does not generally receive claims information by accident year from the ceding insurers but instead receives claims information by the treaty year of the contract. Claims reported by the ceding insurer to the Company may have the covered losses occurring in an accident year other than the treaty year. Some incurred and paid claims have been allocated to the accident years for the loss development tables based on the proportion of premiums earned for each contract during such accident year. To the extent that management's assumptions and allocation procedures differ from the actual loss development patterns, the actual loss development may differ materially from the net incurred and paid claims development presented in the tables below. The totals in the tables below may not sum due to rounding. Casualty Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2025 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (Unaudited - Supplementary Information) 2016 $ 61,920 $ 68,729 $ 73,817 $ 74,106 $ 73,996 $ 79,043 $ 82,925 $ 87,131 $ 91,541 $ 97,403 $ 13,355 2017 65,509 73,270 73,510 75,100 81,175 84,712 91,353 97,099 101,583 15,862 2018 38,280 38,982 39,443 41,296 41,646 45,595 49,531 54,137 9,631 2019 35,710 36,315 36,823 37,014 39,423 39,830 44,361 8,087 2020 52,616 48,967 50,833 54,108 55,544 57,271 9,892 2021 71,382 69,855 73,756 74,211 76,613 11,173 2022 55,006 54,258 50,780 53,938 21,659 2023 54,468 53,895 55,698 39,205 2024 63,867 67,192 58,881 2025 73,542 71,542 Total $ 681,739 $ 259,287 Casualty Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (Unaudited - Supplementary Information) 2016 $ 3,197 $ 12,014 $ 23,955 $ 34,689 $ 47,181 $ 55,056 $ 65,079 $ 71,473 $ 78,702 $ 84,048 2017 5,361 16,141 25,996 38,873 49,998 60,696 69,393 78,970 85,721 2018 4,992 12,538 18,796 26,033 30,026 34,698 40,483 44,506 2019 6,235 15,283 21,635 25,481 29,157 32,572 36,275 2020 11,443 24,107 33,374 40,088 44,504 47,379 2021 23,210 43,058 54,643 61,315 65,441 2022 9,273 17,641 25,038 32,279 2023 2,992 8,209 16,493 2024 3,140 8,312 2025 2,000 Total 422,452 All outstanding liabilities before 2016, net of reinsurance 8,016 Liabilities for claims and claims adjustment expenses, net of reinsurance (Casualty) $ 267,303 Years 1 2 3 4 5 6 7 8 9 10 (Unaudited - Supplementary Information) Casualty 11.6 % 16.9 % 14.8 % 11.9 % 11.0 % 12.3 % 7.0 % 4.5 % 3.7 % 6.3 % Financial Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2025 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (Unaudited - Supplementary Information) 2016 $ 1,861 $ 1,861 $ 580 $ 872 $ 824 $ 501 $ 490 $ 488 $ 486 $ 484 $ 78 2017 7,779 3,726 3,944 6,477 5,021 5,006 4,811 4,614 4,646 280 2018 4,110 4,474 6,864 5,047 5,318 5,203 4,794 4,826 737 2019 9,892 13,398 11,614 9,023 8,715 7,968 8,027 1,084 2020 20,630 20,500 18,628 18,530 18,818 17,790 2,303 2021 17,688 15,594 13,486 13,532 14,895 4,157 2022 21,557 20,043 20,274 24,758 10,176 2023 20,705 18,769 24,759 13,182 2024 25,553 29,649 18,490 2025 35,363 28,423 Total $ 165,196 $ 78,910 Financial Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (Unaudited - Supplementary Information) 2016 $ 5 $ 23 $ 322 $ 576 $ 412 $ 405 $ 407 $ 406 $ 406 $ 406 2017 100 1,830 3,339 4,278 4,283 4,413 4,413 4,305 4,366 2018 665 4,005 3,825 3,957 4,354 4,353 4,029 4,089 2019 3,064 4,286 5,239 6,780 6,953 6,623 6,942 2020 2,830 5,329 9,511 11,296 13,518 15,487 2021 500 2,184 5,086 6,983 10,738 2022 811 4,518 7,942 14,582 2023 2,066 4,232 11,577 2024 3,985 11,159 2025 6,940 Total 86,286 All outstanding liabilities before 2016, net of reinsurance Liabilities for claims and claims adjustment expenses, net of reinsurance (Financial) $ 78,910 Years 1 2 3 4 5 6 7 8 9 10 (Unaudited - Supplementary Information) Financial 14.6 % 27.0 % 24.2 % 17.9 % 11.6 % 4.0 % 0.3 % 0.2 % 0.2 % - % Health Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2025 For the years ended December 31, Total IBNR plus expected developmen t on reported claims Accident year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (Unaudited - Supplementary Information) 2016 $ 6,689 $ 8,779 $ 8,466 $ 8,168 $ 8,143 $ 8,143 $ 8,143 $ 8,090 $ 8,090 $ 8,090 $ - 2017 10,524 12,475 12,994 12,753 12,843 12,714 12,673 12,673 12,671 - 2018 23,432 25,684 25,316 24,652 24,486 24,386 24,386 24,342 - 2019 24,533 25,085 24,906 24,898 24,634 24,528 24,492 1 2020 28,172 28,190 28,216 27,690 27,598 27,584 2 2021 21,588 21,249 20,755 20,607 20,600 5 2022 7,253 7,238 6,670 6,691 26 2023 1,337 1,086 1,135 49 2024 1,181 1,155 137 2025 1,545 620 Total $ 128,305 $ 840 Health Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (Unaudited - Supplementary Information) 2016 $ 2,984 $ 8,257 $ 8,372 $ 8,088 $ 8,090 $ 8,090 $ 8,090 $ 8,090 $ 8,090 $ 8,090 2017 6,765 11,857 12,508 12,528 12,678 12,678 12,673 12,673 12,671 2018 13,518 24,006 24,943 24,394 24,394 24,386 24,386 24,341 2019 10,966 24,005 24,523 24,527 24,523 24,523 24,491 2020 14,861 27,507 27,583 27,588 27,588 27,582 2021 13,648 20,322 20,598 20,599 20,595 2022 4,221 6,401 6,628 6,665 2023 537 1,033 1,086 2024 429 1,018 2025 925 Total 127,465 All outstanding liabilities before 2016, net of reinsurance (33) Liabilities for claims and claims adjustment expenses, net of reinsurance (Health) $ 807 Years 1 2 3 4 5 6 7 8 9 10 (Unaudited - Supplementary Information) Health 53.9 % 44.6 % 1.5 % - % - % - % - % - % - % - % Multiline Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2025 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (Unaudited - Supplementary Information) 2016 $195,055 $204,821 $208,018 $213,240 $211,339 $208,716 $209,653 $209,126 $209,243 $ 209,633 $ 212 2017 248,873 246,922 257,848 263,373 257,075 257,333 255,496 255,877 257,180 2,000 2018 201,629 216,730 211,758 209,442 209,626 212,368 212,473 212,907 911 2019 206,670 224,207 225,682 221,422 217,126 217,305 217,482 1,560 2020 159,115 165,230 164,774 163,202 162,708 163,158 7,680 2021 190,206 181,383 189,257 202,686 202,929 13,190 2022 174,404 166,104 166,364 182,634 18,217 2023 182,523 168,331 175,285 46,609 2024 207,272 161,068 99,635 2025 183,935 165,131 Total $1,966,211 $ 355,146 Multiline Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (Unaudited - Supplementary Information) 2016 $ 101,961 $ 174,666 $ 193,742 $ 206,151 $ 205,194 $ 206,056 $ 207,891 $ 207,837 $ 208,703 $ 209,421 2017 133,924 221,378 246,839 249,002 251,273 252,459 252,615 254,171 255,180 2018 100,429 197,324 203,481 206,241 207,944 209,780 211,125 211,996 2019 89,659 186,697 206,140 212,112 214,154 215,431 215,922 2020 60,326 125,534 141,958 149,264 151,794 155,478 2021 76,985 136,982 167,361 184,827 189,739 2022 43,420 90,253 133,880 164,417 2023 31,065 70,251 128,676 2024 18,183 61,432 2025 18,804 Total 1,611,065 All outstanding liabilities before 2016, net of reinsurance 1,352 Liabilities for claims and claims adjustment expenses, net of reinsurance (Multiline) $ 356,497 Years 1 2 3 4 5 6 7 8 9 10 (Unaudited - Supplementary Information) Multiline 41.9 % 38.1 % 12.1 % 4.9 % 1.2 % 0.8 % 0.4 % 0.2 % 0.2 % 0.2 % Property Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2025 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (Unaudited - Supplementary Information) 2016 $ 25,276 $ 25,372 $ 23,192 $ 22,664 $ 22,493 $ 22,481 $ 22,537 $ 22,443 $ 22,438 $ 22,431 $ - 2017 77,573 73,858 64,755 64,986 64,950 64,317 64,135 63,900 63,785 557 2018 26,947 23,457 23,681 23,069 22,463 22,052 21,901 21,261 1,544 2019 27,734 15,042 14,538 12,714 12,924 12,823 12,682 878 2020 30,194 26,061 22,304 21,993 21,936 21,049 1,593 2021 23,638 20,866 19,723 19,302 18,972 1,609 2022 43,435 45,769 47,783 48,208 2,261 2023 53,964 58,067 58,086 2,665 2024 53,916 48,271 14,064 2025 38,610 31,475 Total $ 353,356 $ 56,647 Property Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (Unaudited - Supplementary Information) 2016 $ 9,894 $ 17,882 $ 20,576 $ 21,545 $ 21,872 $ 22,200 $ 22,289 $ 22,350 $ 22,421 $ 22,431 2017 43,062 53,931 60,829 61,687 62,781 62,821 63,163 63,172 63,228 2018 4,498 14,542 17,094 17,775 18,764 19,777 19,668 19,717 2019 4,059 7,024 8,441 9,949 11,278 11,450 11,804 2020 6,237 11,741 15,626 17,598 18,790 19,457 2021 4,968 12,624 14,894 16,218 17,364 2022 18,478 39,299 44,019 45,947 2023 33,056 50,504 55,420 2024 24,218 34,207 2025 7,135 Total 296,709 All outstanding liabilities before 2016, net of reinsurance 326 Liabilities for claims and claims adjustment expenses, net of reinsurance (Property) $ 56,973 Years 1 2 3 4 5 6 7 8 9 10 (Unaudited - Supplementary Information) Property 48.6 % 33.4 % 8.5 % 3.7 % 2.9 % 1.5 % 0.9 % 0.2 % 0.2 % 0.1 % Specialty Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2025 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (Unaudited - Supplementary Information) 2016 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 2017 4,146 3,582 3,537 3,672 3,046 2,860 2,568 2,551 2,770 211 2018 3,145 3,260 3,385 2,959 2,963 2,777 2,708 2,799 155 2019 4,954 5,784 5,397 5,782 6,044 6,187 6,374 914 2020 13,720 12,365 12,440 12,192 12,410 13,073 955 2021 14,463 13,780 13,637 11,987 13,294 1,907 2022 9,838 8,211 10,170 13,259 2,091 2023 12,862 9,415 9,643 2,222 2024 30,924 19,981 10,971 2025 26,074 23,769 Total $ 107,268 $ 43,194 Specialty Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (Unaudited - Supplementary Information) 2016 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 2017 68 889 1,543 2,018 2,238 2,387 2,455 2,510 2,559 2018 543 1,351 1,874 2,070 2,342 2,463 2,560 2,644 2019 464 2,307 3,001 4,058 4,888 5,302 5,461 2020 991 10,156 11,066 11,431 11,966 12,118 2021 7,485 7,703 8,796 10,505 11,387 2022 543 2,202 3,947 11,167 2023 1,833 6,272 7,421 2024 4,451 9,009 2025 2,306 Total 64,073 All outstanding liabilities before 2016, net of reinsurance - Liabilities for claims and claims adjustment expenses, net of reinsurance (Specialty) $ 43,194 Years 1 2 3 4 5 6 7 8 9 10 (Unaudited - Supplementary Information) Specialty 17.8 % 30.5 % 18.0 % 15.6 % 7.4 % 3.5 % 2.9 % 2.6 % 1.7 % - % Reconciliation of Loss Development Tables to Balance Sheet The following reconciles the reserve for losses and LAE at December 31, 2025, included in the loss development tables to the loss and LAE reserves reported in the balance sheet: Net loss and LAE reserves by line of business: Casualty $ 267,303 Financial 78,910 Health 807 Multiline 356,497 Property 56,973 Specialty 43,194 Total for lines of business 803,684 Unallocated claims adjustment expenses 4,446 Other 531 Total loss and LAE reserves, net 808,661 Add: Reinsurance recoverable on unpaid claims 30,649 Total loss and LAE reserves $ 839,310 ‌RETROCESSION From time to time, the Company purchases retrocessional coverage for one or more of the following reasons: to manage its overall exposure, reduce its net liability on individual risks, obtain additional underwriting capacity and balance its underwriting portfolio. The Company records loss and LAE recoverable from retrocessionaires as assets. The following table provides a breakdown of ceded reinsurance: Year ended December 31, 2025 2024 Gross ceded premiums $ 39,979 $ 42,937 Earned ceded premiums $ 37,375 $ 38,637 Loss and loss adjustment expenses ceded $ 9,522 $ (30,538) Retrocession contracts do not relieve the Company from its obligations to its cedents. Failure of retrocessionaires to honor their obligations could result in losses to the Company. The following table shows a breakdown of losses recoverable on a gross and net of collateral basis: December 31, 2025 December 31, 2024 Gross Net of Collateral (1) Gross Net of Collateral (1) A- or better by A.M. Best $ 28,131 $ 8,074 $ 33,051 $ 15,189 Not rated 3,035 2,222 4,110 2,082 Total before provision 31,166 $ 10,296 $ 37,161 $ 17,271 Provision for credit losses (517) (500) Total reinsurance recoverable, net $ 30,649 $ 36,661 (1) Collateral is in the form of cash, letters of credit, funds withheld, and/or cash collateral held in trust accounts. This excludes any excess collateral in order to disclose the aggregate net exposure for each retrocessionaire. At December 31, 2025, we had 4 reinsurers (2024: 1) that accounted for 10% or more of the total loss and loss adjustment expenses recoverable, net of the credit loss provision, for an aggregate gross amount of $19.6 million (2024: $20.6 million). ‌CREDIT FACILITIES In the normal course of business, the Company enters into agreements with financial institutions to obtain secured credit facilities. At December 31, 2025, the Company had letters of credit ("LC") facilities with the following financial institutions: Capacity LCs issued HSBC $ 100,000 $ - Citibank 275,000 173,618 CIBC 200,000 136,805 Total LCs in favor of cedants $ 575,000 $ 310,423 Citibank FAL £ 50,000 £ 45,000 Except for the above Citibank FAL, the LC facilities are cash collateralized (see Note 6) and are subject to various customary affirmative, negative and financial covenants. At December 31, 2025, the Company was in compliance with all LC facilities covenants. HSBC LC Facility On December 17, 2024, the Company entered into a Continuing Letter of Credit Agreement with HSBC Bank USA, National Association ("HSBC"), providing for an uncommitted $100 million LC facility (the "Uncommitted HSBC LC Facility"). The Uncommitted HSBC LC facility may be terminated by either the Company or HSBC upon written notice; provided that such termination shall not terminate any letters of credit then-outstanding under this facility. Citibank LC Facility On December 19, 2024, the Company amended its LC agreement with Citibank Europe plc ("Citibank") dated August 20, 2010 to an uncommitted $275 million LC facility (the "Uncommitted Citibank LC Facility"). The LC previously issued under the former facility have been transferred to the Uncommitted Citibank LC Facility, and additional LC or similar or equivalent instruments under the Uncommitted Citibank LC Facility may be issued at Citibank's sole discretion. The Uncommitted Citibank LC Facility may be terminated by Citibank upon written notice to the Company; provided that the termination date shall not be earlier than the expiry date of any then-outstanding under this facility. CIBC LC Facility On December 22, 2023, the Company entered into a credit agreement with CIBC Bank USA ("CIBC") for a $200.0 million committed LOC facility (the "CIBC LC Facility"), with a $30.0 million sublimit for unsecured LC (the "CIBC Revolving Credit Facility"). The CIBC LC Facility will terminate on December 21, 2026, subject to automatic 1-year extensions unless a termination noticed is provided by CIBC or the Company at least 120 days prior to the then-applicable termination date. Citibank FAL Facility In 2025, the Company, entered into an uncommitted and unsecured £50 million letter of credit facility arrangement with Citibank Europe plc ("Citibank"). This facility was established to support the Company's Funds at Lloyd's business (the "Citibank FAL"). Upon the issuance of a £45 million LC in favor of Lloyd's, Lloyd's released $60.7 million in cash to the Company (original FAL). Concurrently with this transaction, the Parent has provided a guarantee to Citibank, requiring the Parent to make payment in the event that the respective subsidiary fails to meet its obligations when due. At December 31, 2025, the maximum potential amount of future payments the Parent could be required to make under this guarantee was £45 million. The Citibank FAL LC facility may be terminated by Citibank upon written notice to Lloyd's and the Company; provided that the termination date shall not be earlier than December 31st of the fourth anniversary of such termination date. ‌SHARE CAPITAL The holders of all ordinary shares are entitled to share equally in dividends declared by the Board of Directors. In the event of a winding-up or dissolution of the Company, the ordinary shareholders share equally and ratably in the Company's assets after payment of all debts and liabilities and after the liquidation of any issued and outstanding preferred shares. The Board of Directors is authorized to establish the rights and restrictions for preferred shares as they deem appropriate. The Amended and Restated Memorandum and Articles of Association provides that the holders of ordinary shares generally are entitled to one vote per share. Additional paid-in capital includes the premium per share paid by the subscribing shareholder for ordinary shares which have a par value of $0.10 each. ‌NET INVESTMENT INCOME The following table provides a breakdown of net investment income: Years ended December 31, 2025 2024 Interest and dividend income, net of withholding taxes and other expenses $ 22,407 $ 28,633 Investment income from Lloyd's syndicates 8,697 11,554 Net realized and unrealized gains on fixed maturities (see Note 4) 49 0 Net realized and unrealized gains (losses) on other investments (see Note 5) (11,566) (1,006) Net investment income 19,587 39,181 Share of Solasglas' net income (see Note 3) 32,550 30,848 Total investment income $ 52,137 $ 70,029 ‌INCOME TAXES Under current Cayman Islands law, no corporate entity, including the Company and its Parent, is obligated to pay taxes in the Cayman Islands on either income or capital gains. The Company has an undertaking from the Governor-in-Cabinet of the Cayman Islands, pursuant to the provisions of the Tax Concessions Act, as amended, that, in the event that the Cayman Islands enacts any legislation that imposes a tax on profits, income, gains, or appreciations, or any tax in the nature of estate duty or inheritance tax, such tax will not be applicable to the Company and its Parent nor their respective operations, or to the ordinary shares or related obligations, before January 22, 2045. The Company intends to conduct all of its operations in a manner that will not cause it to be treated as engaging in a trade or business within the United States and will not cause it to be subject to current U.S. federal income taxation on its net income. However, because there are no definitive standards provided by the Internal Revenue Code, regulations or court decisions as to the specific activities that constitute "engaged in the conduct of a trade or business within the United States", and as any such determination is essentially factual in nature, there can be no assurance that the IRS will not successfully assert that the Company is engaged in a trade or business within the U.S. ‌RELATED PARTY TRANSACTIONS Investment Advisory Agreement Each of DME, DME II, and DME Advisors is an affiliate of the Chairman and, therefore, is a related party to the Company. The Company has entered into the Solasglas LPA (as described in Note 3 of the financial statements). DME II receives a performance allocation equal to (with capitalized terms having the meaning provided under the Solasglas LPA) (a) 10% of the portion of the Positive Performance Change for each limited partner's capital account that is less than or equal to the positive balance in such limited partner's Carryforward Account, plus (b) 20% of the portion of the Positive Performance Change for each limited partner's capital account that exceeds the positive balance in such limited partner's Carryforward Account. The Carryforward Account for the Company includes the amount of investment losses to be recouped including any loss generated on the assets invested in Solasglas, subject to adjustments for redemptions. The loss carryforward provision in the Solasglas LPA allows DME II to earn a reduced performance allocation of 10% of profits in years subsequent to any year in which Solasglas has incurred a loss, until all losses are recouped and an additional amount equal to 150% of the loss is earned. In accordance with the Solasglas LPA, DME Advisors constructs a levered investment portfolio as agreed by the Company (the "Investment Portfolio" as defined in the Solasglas LPA). On September 1, 2018, Solasglas entered into the IAA with DME Advisors, which entitles DME Advisors to a monthly management fee equal to 0.125% (1.5% on an annual basis) of each limited partner's Investment Portfolio. The IAA has an initial term ending on August 31, 2023, subject to an automatic extension for successive three-year terms. For a detailed breakdown of management fees and performance compensation for the years ended December 31, 2025 and 2024, refer to Note 3. Pursuant to the Solasglas LPA and the IAA, the Company has agreed to indemnify DME, DME II, and DME Advisors for any expense, loss, liability, or damage arising out of any claim asserted or threatened in connection with DME Advisors serving as the Company's or Solasglas' investment advisor. The Company will reimburse DME, DME II, and DME Advisors for reasonable costs and expenses of investigating and defending such claims, provided such claims were not caused due to gross negligence, breach of contract, or misrepresentation by DME, DME II or DME Advisors. The Company incurred no indemnification amounts during the periods presented. Green Brick Partners, Inc. David Einhorn also serves as the Chairman of the Board of Directors of Green Brick Partners, Inc. ("GRBK"), a publicly-traded company. At December 31, 2025, Solasglas, along with certain affiliates of DME Advisors, collectively owned 23.7% of the issued and outstanding common shares of GRBK. Under applicable securities laws, DME Advisors may sometimes be limited in its ability to trade GRBK shares held in Solasglas. At December 31, 2025, Solasglas held 0.8 million shares of GRBK. Collateral Assets Investment Management Agreement Effective January 1, 2019, the Company (and its affiliates) entered into a collateral assets investment management agreement (the "CMA") with DME Advisors, pursuant to which DME Advisors manages certain assets of the Company that are not subject to the Solasglas LPA and are held by the Company to provide collateral required by the cedents in the form of trust accounts and letters of credit. In accordance with the CMA, DME Advisors receives no fees and is required to comply with the collateral investment guidelines. The CMA can be terminated by any of the parties upon 30 days' prior written notice to the other parties. Transactions with Affiliated Companies Amount due from (to) Parent and affiliates At December 31, 2025, and 2024, the amounts due from (to) affiliated companies were non-interest bearing, unsecured and repayable on demand. Retrocession agreements with affiliates The Company has entered into quota share retrocession agreements with GRIL and GCM whereby the Company assumes a quota share portion of certain specified reinsurance contracts written by GRIL and GCM. For the year ended December 31, 2025, the Company assumed $96.4 million (2024: $103.2 million) of written premiums from GRIL and $216.2 million (2024: $141.07 million) of written premiums from GCM. The Company also provides an aggregate stop loss reinsurance protection to GRIL and Syndicate 3456 (100% capital provided by the Company - see Note 15). For the year ended December 31, 2025, GRIL and Syndicate 3456 ceded $0.5 million (2024: $0.5 million) and $1.1 million (2024: $2.0 million), respectively, of written premiums relating to these aggregate stop loss contracts to the Company. During the year ended December 31, 2025, there were no losses incurred on the aggregate stop loss contracts (2024: nil). At December 31, 2025, included in the caption "Reinsurance Balances Receivable" on the Company's balance sheet was $52.8 million (December 31, 2024: $102.4 million) net receivable from GRIL on the above mentioned retrocession agreements; $291.2 million (December 31, 2024: $174.06 million) net receivable from GCM, and nil (December 31, 2024: $23.3 million) of funds provided by the Company to GRIL to support certain reinsurance contracts with Lloyd's syndicates. See Note 15. ‌COMMITMENTS AND CONTINGENCIES Concentration of Credit Risk Cash and cash equivalents The Company monitors its concentration of credit risk with financial institutions and limits acceptable counterparties based on current rating, outlook and other relevant factors. Investments The Company's fixed maturities portfolio is exposed to potential losses arising from diminishing creditworthiness of issuers of bonds. The fixed maturities portfolio is managed by an external investment manager in accordance with the Company's investment guidelines and the underlying investment guidelines set by the respective regulatory trusts. At December 31, 2025, there was no fixed maturity security that exceeded 10% of the Company's shareholders' equity. The Company's credit risk exposure to private debt securities within its "Other investments" are immaterial (see Note 5). Reinsurance balances receivable, net The following table shows the breakdown of reinsurance balances receivable: December 31, 2025 December 31, 2024 Amount % Amount % Funds withheld: Funds held by third party cedants 28,099 5.1 % 50,221 9.2 % Funds held by GCM 291,191 53.0 175,865 32.1 Funds held by GRIL 2,931 0.5 52,766 9.6 Funds at Lloyd's (1) 44,176 8.0 69,059 12.6 Premium receivable: Premium receivable from third parties 128,505 23.4 149,924 27.3 Premiums receivable from GRIL 49,896 9.1 49,652 9.1 Profit commission receivable 5,964 1.1 1,808 0.3 Total before provision 550,762 100.2 549,295 100.2 Provision for expected credit losses (1,349) (0.2) (1,019) (0.2) Reinsurance balances receivable, net $ 549,413 100.0 % $ 548,276 100.0 % (1) Including nil for GRIL (December 31, 2024: $23.3 million) - see Note 14. The Company has posted deposits at Lloyd's to support underwriting capacity for certain syndicates, including Syndicate 3456. Lloyd's has a credit rating of "A+" (Superior) from A.M. Best, as revised in August 2024. Premiums receivable includes a significant portion of estimated premiums not yet due. Brokers and other intermediaries are responsible for collecting premiums from customers on the Company's behalf. The Company monitors its concentration of credit risks from brokers. The diversity in the Company's client base limits credit risk associated with premiums receivable and funds (premiums) held by cedents. Further, under the reinsurance contracts the Company has contractual rights to offset premium balances receivable and funds held by cedants against corresponding payments for losses and loss expenses. Loss and loss adjustment expenses recoverable, net The Company regularly evaluates its net credit exposure to the retrocessionaires and their abilities to honor their respective obligations. See Note 9 for analysis of concentration of credit risk relating to retrocessionaires. Lease Obligations The Company's operating lease agreement relates to office space in the Cayman Islands. The Company's weighted-average remaining operating lease term is approximately 4.75 years at December 31, 2025. For operating leases that have a lease term of more than 12 months, the Company recognizes a lease liability and a right-of-use asset in the Company's consolidated balance sheets at the present value of the lease payments at the lease commencement date. As the lease contracts generally do not provide an implicit discount rate, the Company used its incremental borrowing rate to determine the present value of lease payments. The Company's incremental borrowing rate represents the borrowing rate for a term similar to that of the associated lease based on information available at the commencement date. The Company has made an accounting policy election not to include renewal, termination, or purchase options that are not reasonably certain of exercise when determining the borrowing term. At December 31, 2025, included in other assets and other liabilities in the balance sheets are the right-of-use assets of $2.6 million and lease liabilities of $2.6 million, respectively, relating to the operating lease (2024: $0.8 million and $0.8 million, respectively). For the year ended December 31, 2025, the Company recognized operating lease expense of $0.4 million (2024: $0.6 million). At December 31, 2025, the commitment for operating lease liabilities for future annual periods was as follows: Year ending December 31, Amount 2026 599 2027 617 2028 635 2029 654 2030 559 Total lease payments 3,064 Less present value discount (482) Present value of lease liabilities $ 2,582 Litigation From time to time, in the ordinary course of business, the Company may be involved in formal and informal dispute resolution procedures, which may include arbitration or litigation. The outcomes of these procedures determine the rights and obligations under the Company's reinsurance contracts and other contractual agreements. In some disputes, the Company may seek to enforce its rights under an agreement or collect funds owed. In other matters, the Company may resist attempts by others to collect funds or enforce alleged rights. While the Company cannot predict the outcome of legal disputes with certainty, the Company does not believe that any existing dispute, when finally resolved, will have a material adverse effect on the Company's business, financial condition, or operating results. Unsecured Citibank FAL Facility At December 31, 2025, Citibank issued a £45 million unsecured LC in favor of Lloyd's, for which the Parent has provided a guarantee to Citibank. Refer to "Credit Facilities" in Note 10 for additional information. ‌STATUTORY REQUIREMENTS The Company's reinsurance operations are subject to insurance laws and regulations in the Cayman Islands. These regulations include certain restrictions on the amount of dividends or other distribution, such as loans or cash advances, available to shareholders without prior approval of the respective regulatory authorities. The statutory capital and surplus and required minimum statutory capital and surplus of the Company is detailed below: At December 31, 2025 2024 Statutory capital and surplus $ 609,397 $ 603,095 Required statutory capital surplus 354,618 307,875 Excess statutory capital $ 254,779 $ 295,220 The Company is subject to the Cayman Islands' Insurance (Capital and Solvency) (Classes B, C, and D Insurers) Regulations, (2018 Revision) (the "Insurance Regulations"). Under these Insurance Regulations, the Company is required to maintain minimum statutory capital and surplus equal to the greater of: a) the Minimum Capital Requirement of $50.0 million and b) the Prescribed Capital Requirement ("PCR") as defined in the Insurance Regulations. The Company is not required to prepare statutory financial statements for filing with CIMA. There were no material differences between the Company's GAAP capital, surplus, and net income and its statutory capital, surplus, and net income at December 31, 2025 and 2024, and for the years then ended. Any dividends declared and paid from the Company to its parent requires CIMA's approval. During the year ended December 31, 2025, $61.0 million of dividends (2024: $22.5 million) were declared or paid by the Company to its parent. The dividends were approved by CIMA and resulted in the return of additional share capital from the Company. At December 31, 2025, $254.8 million (2024: $295.2 million) of the Company's capital and surplus was available for distribution as dividends. . ‌SUBSEQUENT EVENTS On February 28, 2026, the United States and Israel launched coordinated, large-scale military strikes on Iran, resulting in retaliatory strikes by Iran on several neighboring Middle Eastern countries. While the Company has reinsurance coverage exposure in these regions through its Specialty line of business, as the situation is developing and outcomes remain highly uncertain, it is too early to reasonably estimate the possible loss or range of loss, if any, that may result from this event. The Company also has retrocession excess of loss protections in place for the exposed Specialty lines to reduce the impact of an escalated or prolonged conflict in the region.

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