Jun 30, 2024

James River Q2 2024 Earnings Report

James River reported strong investment income and profitable underwriting results from continuing operations.

Key Takeaways

James River Group Holdings reported a net income from continuing operations available to common shareholders of $11.9 million, or $0.31 per diluted share. The company's adjusted net operating income was $12.7 million, or $0.33 per diluted share, reflecting strong investment income and profitable underwriting results from continuing operations. The Group combined ratio was 99.3%, and the adjusted net operating return on tangible common equity was 14.9%.

Group combined ratio of 99.3% and adjusted net operating return on tangible common equity of 14.9%.

E&S segment combined ratio of 95.4% and positive renewal rate change of 9.1%.

Specialty Admitted Insurance segment combined ratio of 85.0%, with fronting and program gross written premium growth of 12.3% excluding the non-renewed workers' compensation program.

Net investment income increased 36.7% compared to the prior year quarter, with all asset classes reporting higher income.

Total Revenue
$186M
Previous year: $210M
-11.4%
EPS
$0.33
Previous year: $0.53
-37.7%
Combined Ratio
99.3%
Previous year: 94.6%
+5.0%
Expense Ratio
26.3%
Previous year: 27.5%
-4.4%
Loss Ratio
73%
Previous year: 67.1%
+8.8%
Gross Profit
$144M
Previous year: $179M
-19.7%
Cash and Equivalents
$673M
Previous year: $227M
+196.0%
Free Cash Flow
-$9.26M
Previous year: $22.3M
-141.6%
Total Assets
$4.74B
Previous year: $5.3B
-10.5%

James River

James River

James River Revenue by Segment

Forward Guidance

The E&S LPT and ADC is effective January 1, 2024, but closed on July 2, 2024. As such, any applicable recoveries will be recognized beginning in the third quarter of 2024. As a result of the E&S LPT and ADC, the Company expects to recognize a reduction in pre-tax income of approximately $44.0 million in the third quarter of 2024.

Challenges Ahead

  • The Company expects to recognize a reduction in pre-tax income of approximately $44.0 million in the third quarter of 2024.

Revenue & Expenses

Visualization of income flow from segment revenue to net income