James River Group Holdings (JRVR) investor relations material

Executive summary

• Reported a net loss to common shareholders of $10.9 million for Q1 2026, compared to net income of $7.6 million in Q1 2025, primarily due to a $6.7 million reinsurance reinstatement charge from a single E&S claim.

• Adjusted net operating income was $5.8 million, down from $9.1 million year-over-year, reflecting lower underwriting results partially offset by higher investment income.

• General and administrative expenses declined 10.5%–11% year-over-year, reflecting cost discipline in Specialty Admitted and corporate segments.

• Sale of JRG Reinsurance Company Ltd. closed in April 2024, with related losses reported in discontinued operations.

• Investments in AI-enabled underwriting technology are underway to improve efficiency and underwriting capabilities.

Financial highlights

• Net loss to common shareholders: $10.9 million (Q1 2026) vs. net income of $7.6 million (Q1 2025).

• Operating earnings: $5.8 million ($0.12/share) vs. $9.1 million ($0.19/share) prior year; adjusted operating earnings would have been $0.22/share excluding reinsurance impact.

• Gross written premiums declined 19.7%–20% year-over-year to $236.4 million, mainly due to a 70%–70.3% drop in Specialty Admitted Insurance segment premiums.

• Net investment income rose 6.6% year-over-year to $21.3 million, driven by private credit and high-grade fixed income.

• Tangible common equity per share was $8.77 at March 31, 2026, reflecting investment market movements and legacy reinsurance impacts.

Outlook and guidance

• Management expects reduced volatility from reinsurance reinstatement premiums due to 2023 treaty restructuring and remains confident in the business model, emphasizing targeted growth in specialty and casualty lines, continued expense discipline, and technology adoption.

• Market remains dynamic and competitive, but the company is well-positioned for 2026, supported by underwriters and distribution partners.

• A.M. Best rating remains “A-” (Excellent) with a negative outlook; a downgrade could materially impact new business.