James River takeover talks 'on pause'

Negotiations by Global Indemnity to buy Bermuda-based re/insurer James River Group are "on pause at this point", according to the chief executive officer of the US insurer. 

Joseph Brown told analysts on Global Indemnity's first quarter earnings call that the specialty insurer had had "conversations" with James River but there were no talks at the moment. 

"Those conversations are on pause at this point," he said. "We may re-examine that later on if there's continued interest on both parties' part to pursue something."

It was reported in March that Global Indemnity had made an indicative offer of $15 a share for James River, valuing the excess and surplus re/insurer at about $550 million. 

Asked by an unnamed analyst whether Global Indemnity would use its own stock to pay for a possible deal, Brown said a stock offer would be "very unusual". 

"As to any comments about a transaction that was at or was potentially discussed with James River, I can't offer any commentary," he said.

James River released its first-quarter 2024 earnings on Wednesday, reporting a 1.3% decline in its underwriting profit, to $19.2 million from $19.5 million in Q1 2023, a 1.3 percentage point deterioration in its combined ratio, to 95.3% from 94%, and a 6.4% drop in gross premiums written, to $330.8 million from $353.4 million.

James River closed the sale of Bermuda-based subsidiary JRG Re to Bermuda-based Fleming for $277 million in April after an acrimonious negotiation which Fleming tried to scrap.

James River CEO Frank D'Orazio said this week that the company's board of directors was continuing to explore strategic alternatives for the company.

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