| INVESTMENT IN RELATED PARTY INVESTMENT FUND |
INVESTMENT IN RELATED PARTY INVESTMENT FUND The Company’s maximum exposure to loss relating to Solasglas Investments, LP (“Solasglas”) is limited to GLRE's share of Partners’ capital in Solasglas. At September 30, 2026, GLRE’s share of Partners’ capital in Solasglas was $487.4 million (December 31, 2025: $504.6 million), representing 81.9% (December 31, 2025: 81.4%) of Solasglas’ total capital. DME Advisors II, LLC held the remaining 18.1% (December 31, 2025: 18.6%) of Solasglas’ total capital.
The Company’s share of Solasglas’ loss from operations for the three and nine months ended September 30, 2026 was $15.1 million and $9.3 million, respectively, (three and nine months ended September 30, 2025: loss of $14.4 million and $0.5 million, respectively), as shown in the caption “Income (loss) from investment in related party investment fund” in the Company’s condensed consolidated statements of operations.
The summarized financial statements of Solasglas are presented below.
Summarized Statements of Financial Condition of Solasglas Investments, LP | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | Assets | | | | | Investments, at fair value | $ | 557,650 | | | $ | 600,837 | | | Derivative contracts, at fair value | 11,754 | | | 22,384 | | | Due from brokers | 392,233 | | | 281,505 | | | | | | | Interest and dividends receivable | 502 | | | 1,463 | | | Total assets | 962,139 | | | 906,189 | | | | | | | Liabilities | | | | | Investments sold short, at fair value | (328,097) | | | (275,794) | | | Derivative contracts, at fair value | (37,312) | | | (6,670) | | | Capital withdrawals payable | (110) | | | (1,010) | | | | | | | Interest and dividends payable | (1,119) | | | (2,528) | | | Accrued expenses and other liabilities | (241) | | | (178) | | | Total liabilities | (366,879) | | | (286,180) | | | | | | | Partners' capital | $ | 595,260 | | | $ | 620,009 | | | | | | | GLRE’s share of Partners' capital | $ | 487,385 | | | $ | 504,555 | |
Summarized Statements of Operations of Solasglas Investments, LP | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended September 30 | | Nine months ended September 30 | | 2026 | | 2025 | | 2026 | | 2025 | | Investment income | | | | | | | | | Dividend income (net of withholding taxes) | $ | 1,432 | | | $ | 1,030 | | | $ | 5,152 | | | $ | 5,207 | | | Interest income | 3,453 | | | 5,060 | | | 10,306 | | | 13,509 | | | Total Investment income | 4,885 | | | 6,090 | | | 15,458 | | | 18,716 | | | | | | | | | | | Expenses | | | | | | | | | Management fee | (1,565) | | | (1,695) | | | (5,135) | | | (5,181) | | | Interest | (1,245) | | | (4,924) | | | (3,543) | | | (10,395) | | | Dividends | (1,535) | | | (884) | | | (4,292) | | | (2,561) | | | Research and operating | (386) | | | (335) | | | (1,424) | | | (1,306) | | | Total expenses | (4,731) | | | (7,838) | | | (14,394) | | | (19,443) | | | | | | | | | | | Net investment income | 154 | | | (1,748) | | | 1,064 | | | (727) | | | | | | | | | | | Realized and change in unrealized gains (losses) | | | | | | | | | Net realized gain (loss) | 12,538 | | | (57,283) | | | 73,138 | | | (1,594) | | | Net change in unrealized depreciation | (31,458) | | | 39,484 | | | (85,048) | | | 4,246 | | | Net gain (loss) on investment transactions | (18,920) | | | (17,799) | | | (11,910) | | | 2,652 | | | | | | | | | | Net increase (decrease) in Partners' capital (1) | $ | (18,766) | | | $ | (19,547) | | | $ | (10,846) | | | $ | 1,925 | | | | | | | | | | GLRE’s share of the increase (decrease) in Partners' capital | $ | (15,133) | | | $ | (14,404) | | | $ | (9,301) | | | $ | (483) | |
(1) The net increase (decrease) in Partners’ capital is net of management fees and performance allocation presented below:
| | | | | | | | | | | | | | | | | | | | | | | | | Three months ended September 30 | | Nine months ended September 30 | | 2026 | | 2025 | | 2026 | | 2025 | | Management fees | $ | 1,565 | | | $ | 1,695 | | | $ | 5,135 | | | $ | 5,181 | | | Performance allocation | (648) | | | (1,519) | | | — | | | 28 | | | Total | $ | 917 | | | $ | 176 | | | $ | 5,135 | | | $ | 5,209 | |
See Note 14 for further details on management fees and performance allocation.
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