GREENLIGHT CAPITAL RE, LTD.GLRE
GREENLIGHT CAPITAL RE, LTD. Commitments Disclosure
COMMITMENTS AND CONTINGENCIES
a) Concentration of Credit Risk
Cash and cash equivalents
The Company monitors its concentration of credit risk with financial institutions and limits acceptable counterparties based on current rating, outlook and other relevant factors.
Investments
The Company’s 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 | % | |||||||||||||||||||||||
Premiums receivable | $ | 246,533 | 37.1 | % | $ | 253,627 | 36.0 | % | ||||||||||||||||||
| Funds withheld: | ||||||||||||||||||||||||||
| Funds held by cedants | 32,337 | 4.9 | % | 58,183 | 8.3 | % | ||||||||||||||||||||
Premiums held by Lloyds' syndicates | 336,216 | 50.6 | % | 278,265 | 39.5 | % | ||||||||||||||||||||
Funds at Lloyd’s | 44,185 | 6.7 | % | 113,324 | 16.1 | % | ||||||||||||||||||||
Profit commission receivable | 6,459 | 1.0 | % | 2,103 | 0.3 | % | ||||||||||||||||||||
Total before provision | 665,730 | 100.2 | % | 705,502 | 100.2 | % | ||||||||||||||||||||
Provision for expected credit losses | (1,349) | (0.2) | % | (1,019) | (0.1) | % | ||||||||||||||||||||
Reinsurance balances receivable, net | $ | 664,381 | 100.0 | % | $ | 704,483 | 100.1 | % | ||||||||||||||||||
The Company has posted deposits at Lloyd’s to support underwriting capacity for certain syndicates, including Syndicate 3456 (see Note 19). 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 (see Note 18). 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.
b) Lease Obligations
The Company’s operating lease agreements relate to office space in the Cayman Islands, United Kingdom, and Ireland. The Company’s weighted-average remaining operating lease term is approximately 5.3 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 consolidated balance sheets are the of $2.7 million and of $2.7 million, respectively, relating to the operating leases (2024: $0.9 million and $1.0 million, respectively). For the year ended December 31, 2025, the Company recognized operating lease expense of $0.6 million (2024: $0.7 million, 2023: $0.6 million).
At December 31, 2025, the commitment for operating lease liabilities for future annual periods was as follows:
| Year ending December 31, | ||||||||
| 2026 | $ | 698 | ||||||
| 2027 | 617 | |||||||
| 2028 | 635 | |||||||
| 2029 | 654 | |||||||
| 2030 | 559 | |||||||
| Total lease payments | 3,163 | |||||||
| Less present value discount | (485) | |||||||
| Present value of lease liabilities | $ | 2,678 | ||||||
c) 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.
d) Unsecured Citibank FAL Facility
At December 31, 2025, Citibank issued £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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Mar 8, 2023 | |
| 2021 | Mar 8, 2022 | |
| 2020 | Mar 10, 2021 | |
| 2019 | Mar 9, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 20, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 22, 2016 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.