James River reports fourth quarter loss
James River saw its combined ratio rocket to 155% in the fourth quarter of 2024 compared with 98.1% in Q4 2023.
The troubled Bermuda-based re/insurer's combined ratio for full-year 2024 was 117.6% compared with 96.4% in 2023.
Gross written premiums (GWP) were flat at $358.3 million in Q4 2024 compared with $389.3 million in Q3 2023, down eight percent.
For the year, GWP fell from $1.51 billion in 2023 to $1.4 billion in 2024.
Overall, James River made a net loss of $94 million in fourth-quarter 2024 and a loss of $118.3 million for the full year. That compared to a loss of $152.8 million in fourth quarter 2023 and a full year loss of $118.2 million.
James River attributed losses to its previously announced $52.8 million of consideration paid in connection with an E&S adverse development reinsurance contract with Cavello Bay Reinsurance, a subsidiary of Enstar Group, which closed last December.
Frank D'Orazio (pictured), James Rivers' chief executive officer, called 2024 “a costly but transformational year ... We have meaningfully de-risked the organisation and concluded an extensive strategic review, emerging with a renewed focus. The E&S market remains very healthy, and we believe that 2025 will provide significant opportunities to responsibly grow while taking advantage of the attractive rate environment.”
The company also completed several strategic actions in 2024, including the sale of JRG Reinsurance Company, a $160 million loss portfolio transfer, and a new partnership with Enstar involving a $12.5 million equity investment.
The company said its chairman, who oversaw the strategic actions, has decided to retire.
Excess and surplus lines GWP in Q4 were up two percent to $280.3 million but Q4 specialty admitted insurance GWP fell by nearly one third (32%) from $114.1 million to $78 million.
James River operates through two main segments: excess and surplus lines, offering commercial excess and surplus lines liability and excess property insurance products across the US, and specialty admitted insurance, focusing on niche classes within standard insurance markets and "fronting" business.
The results bring to end a tumultuous 18 months for James River, which initially ran into difficulties when it had to restate its second quarter results in November 2023 after overstating its earnings. It later sold its Bermuda reinsurance subsidiary JRG Re to Fleming Insurance Holdings in a contentious transaction.
James River has since announced it plans to redomicile to the US and it will focus on its E&S underwriting.
Ollie Sherman, the chairman of James River, announced he will retire from the role and will also leave the board on April 30. He will be replaced by Christine LaSala, who has 45 years’ experience in the re/insurance industry including as chair of Willis Towers Watson North America. She stepped down last year as a director of Beazley.
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