Mar 31, 2023

James River Q1 2023 Earnings Report

James River reported a profitable quarter driven by strong growth in the E&S segment, solid underwriting profitability, and meaningful investment contributions.

Key Takeaways

James River Group Holdings reported a net income of $7.0 million ($0.18 per diluted share) for Q1 2023, compared to $9.3 million ($0.25 per diluted share) for Q1 2022. Adjusted net operating income was $21.6 million ($0.56 per diluted share), compared to $13.9 million ($0.37 per diluted share) for the same period last year. The company saw strong growth and attractive renewal rates in its E&S segment, solid underwriting profitability, and meaningful contributions from its investment portfolio.

Group combined ratio of 94.9% and Excess and Surplus Lines (E&S) segment combined ratio of 86.8%.

E&S segment gross and net written premium growth of 12.1% and 17.3%, respectively.

E&S segment renewal rates increased 8.9%, with all underwriting divisions reporting positive pricing increases.

Net investment income increased 58.4% compared to the prior year quarter, and 12.9% sequentially.

Total Revenue
$208M
Previous year: $190M
+9.6%
EPS
$0.56
Previous year: $0.37
+51.4%
Combined Ratio
94.9%
Previous year: 97.4%
-2.6%
Expense Ratio
28.4%
Previous year: 26%
+9.2%
Loss Ratio
66.5%
Previous year: 71.4%
-6.9%
Gross Profit
$175M
Previous year: $152M
+15.5%
Cash and Equivalents
$200M
Previous year: $270M
-26.0%
Free Cash Flow
$18.2M
Previous year: $63.6M
-71.5%
Total Assets
$5.21B
Previous year: $5.27B
-1.2%

James River

James River

James River Revenue by Segment

Forward Guidance

Company believes James River is well poised to continue to deliver excellent underwriting performance and compelling shareholder returns.

Revenue & Expenses

Visualization of income flow from segment revenue to net income