James River profit drops 60% despite investment boost

James River Group's net income dropped by 60% in the second quarter as it continued its turnaround efforts. 

James River said net income for the three months ending June 30 was $5 million compared to $13.3 million in the same period in 2023, but said this included a $6.8 million loss attributable to its reinsurance subsidiary which it has since sold. 

The Bermuda-based insurer said it had net income from continuing operations of $11.9 million compared to $9.5 million in 2023. 

The sale of JRG Re, its Bermuda-based reinsurance subsidiary to Fleming Re is now embroiled in a legal dispute. 

“James River has continued to execute on its strategic priorities of de-risking the organisation and generating attractive returns on our capital," said Frank D'Orazio, the Company’s chief executive officer. "E&S market conditions remain favourable amid accelerating submission growth and a strong rate environment during the second quarter as we continue to re-profile segments of our portfolio. 

"While we executed an attractive retroactive reinsurance transaction last month, our board of directors continues its exploration of strategic alternatives for the Company that was announced in November of 2023.”

James River said gross written premiums dropped 3% to $412 million as excess and surplus lines rose 2% to $292.8 million but specialty admitted insurance dropped 13% to $119.4 million. 

The group's combined ratio was 99.3% compared to 98.9% in the same period in 2023. The E&S combined ratio was 95.4% and the specialty admitted segment combined ratio was 85%. 

E&S segment combined ratio of 95.4% and positive renewal rate change of 9.1%, with the majority of the underwriting divisions reporting positive pricing increases.

The company was boosted by a 36.7% increase in net investment income to $24.9 million.  

Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.