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Dec 31, 2020
James River Q4 2020 Earnings Report
James River reported a net loss for Q4 2020, impacted by unfavorable development in the E&S and Casualty Reinsurance segments. However, the company highlighted strong growth in Core E&S and opportunities in the Specialty Admitted Insurance segment.
Key Takeaways
James River Group Holdings reported a net loss of $20.3 million for the fourth quarter of 2020, compared to a net income of $20.5 million for the same period in 2019. The adjusted net operating loss was $29.0 million, compared to an adjusted net operating income of $23.3 million in the prior year. The results were impacted by unfavorable reserve development in the E&S and Casualty Reinsurance segments.
39% growth in Core (excluding Commercial Auto) Excess and Surplus Lines ("E&S") Gross Written Premium and 9.3% increase in E&S renewal pricing.
Net Investment Income of $22.2 million, an increase of 7%, or $1.4 million.
$62.3 million of unfavorable development in the E&S segment, inclusive of $75.8 million of unfavorable development in Commercial Auto and $13.5 million of favorable development in Core E&S.
Additionally, there was $24.7 million of unfavorable development in the Casualty Reinsurance segment
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
James River is positioned to capitalize on favorable market conditions in its Core E&S business and fronting business within the Specialty Admitted Insurance segment.
Positive Outlook
- Core E&S business is operating in its most attractive rate environment in recent memory.
- Fronting business within the Specialty Admitted Insurance segment continues to see new opportunities for profitable growth with new partners.
- Submission volume in E&S remains strong.
- The 9.3% renewal rate increase was the 16th consecutive quarter of rate increases.
- Fee income in fronting business grew 22% during 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income