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10 May 2024News

James River Group net income almost doubles

James River Group, which recently completed the acrimonious sale of JRG Re and faces continued fallout from accounting errors, said net income in the first quarter almost doubled to $12.8 million as the Bermuda-based re/insurer benefited from improved investment performance and solid underwriting in its excess and surplus lines segment. 

The specialty re/insurer said net income rose from $6.9 million in the first three months of 2023 to $12.8 million in the current period. Net income from continuing operations jumped to $20.9 million from $5.3 million in 2023, while the company sustained a $8.1 million loss compared to a $1.7 million profit from discontinued operations, primarily in the casualty reinsurance segment. 

The group's combined ratio increased to 95.3% from 94%, largely because the expense ratio worsened by 1.6 percentage points to 28.9%. 

Gross written premiums declined from $353 million to $330 million as the company turned down "less compelling submissions" and focused on underwriting profitability. 

Net investment income rose from $18.4 million to $22.6 million while net realized and unrealized gains on investments jumped from $160,000 to $4.6 million. Loss and loss expenses fell from $126 million to $100 million but other expenses rose from $48 million to $50.8 million.   

Chief executive officer Frank D'Orazio said: “James River has started the year with strong profitability and attractive returns on our capital as we continue to demonstrate our commitment to disciplined underwriting and risk management. 

"During the quarter, we saw record submission count amid a continued strong rate environment, and with a focus on underwriting profitability, we took action to reduce selected large account writings which were less compelling. Our Board of Directors continues its exploration of strategic alternatives for the Company that was announced in November of 2023.”

The E&S segment had a combined ratio of 87.3%, with the majority of the underwriting divisions reporting positive pricing increases.

The specialty admitted insurance segment had a combined ratio of 97.0%, with fronting and programme gross written premium growth of 23.0% excluding the non-renewed workers' compensation programme.

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More on this story

News
12 March 2024   Fleming was to purchase its third-party casualty reinsurer for $277m.
News
13 November 2023   The re/insurer begins the process days after selling casualty reinsurer.
News
21 December 2023   James River's for sale Bermuda reinsurance subsidiary has also been downgraded.

More on this story

News
12 March 2024   Fleming was to purchase its third-party casualty reinsurer for $277m.
News
13 November 2023   The re/insurer begins the process days after selling casualty reinsurer.
News
21 December 2023   James River's for sale Bermuda reinsurance subsidiary has also been downgraded.