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Sep 30, 2024
James River Q3 2024 Earnings Report
James River reported a net loss for the third quarter of 2024, but strategic actions were taken to de-risk the E&S franchise.
Key Takeaways
James River Group Holdings reported a net loss of $42 million for Q3 2024, or $1.10 per share. The adjusted net operating loss was $28.2 million, primarily due to excess consideration paid in connection with the E&S ADC. Strategic actions were announced, including a partnership with Enstar Group and amendments to convertible preferred shares held by Gallatin Point Capital.
E&S segment gross written premium grew by 6% with a renewal rate change of 8.6%.
Specialty Admitted Insurance segment had a combined ratio of 91.3% with fronting and program gross written premium growth of 8.7% excluding non-renewed workers' compensation programs.
Net investment income increased by 8.1% compared to the prior year quarter.
Strategic partnership with Enstar Group Limited was commenced, including an equity investment and adverse development reinsurance agreement.
James River
James River
James River Revenue by Segment
Revenue by Segment
Excess and Surplus Lines Revenue
CapyFin.comSpecialty Admitted Insurance Revenue
CapyFin.com Forward Guidance
The company intends to pursue a plan to redomicile to the United States during 2025 and expects to reduce its effective tax rate closer to the US statutory rate thereafter.
Positive Outlook
- Addition of Enstar as a significant shareholder
- Strategic partnership with Enstar
- Continued commitment of Gallatin Point
- E&S franchise is significantly de-risked
- E&S franchise is well positioned to take advantage of strong market support
Challenges Ahead
- Uncertainty of estimating reserves
- Potential loss of key members of management
- Adverse economic factors
- Exposure to credit risk, interest rate risk
- Reliance on a select group of brokers and agents
Revenue & Expenses
Visualization of income flow from segment revenue to net income