James River Group Holdings (JRVR) investor relations material

Executive summary

• Q3 net loss available to common shareholders was $189.4M, or $4.08 per diluted share, including a non-cash $181.8M goodwill impairment.

• Adjusted net operating loss was $4.4M, or $0.10 per diluted share, versus $17.4M of adjusted net operating income a year earlier.

• Underwriting loss reached $20.0M as premiums declined and prior-year reserve development turned adverse; active E&S division submissions rose 8% YoY.

Financial highlights

• Q3 total revenue was $147.7M versus $172.7M YoY; net earned premiums fell 14.0% to $127.7M.

• Gross written premiums were $186.1M, down 21.6% YoY; net written premiums were $105.0M, down 14.4%.

• Nine-month total revenue was $460.4M versus $519.9M; net earned premiums declined 11.2% to $402.4M.

• Net investment income rose 1.2% to $22.2M in Q3 and 2.2% to $63.8M for nine months.

• G&A expenses declined 9.2% in Q3 and 9.0% for nine months, largely from lower compensation costs.

Outlook and guidance

• Underwriting remains focused on profitable growth in smaller E&S accounts; policies with premiums of $35,000 or less represent over 80% of policy count.

• E&S renewal rates were generally flat YoY; increased competition reduced quote-to-bind conversion.

• Kalepa underwriting workbench rollout showed initial productivity gains; three departments were onboarded and three more were in process.

• Specialty Admitted operations were expected to continue with limited net exposure and further cost reductions.