James River’s profit drops over 50%
James River Group's Q1 profit fell to $9 million, down from $20.8 million, as restructuring efforts continued.
The Bermuda-based re/insurer said its adjusted net operating income, after stripping out discontinued operations, was $9.1 million compared with $14.8 million in 2024.
Gross written premium fell from $330.8 million to $294 million and net investment income dropped from $22.6 million to $20 million.
Its loss and loss adjustment expenses fell from $110 million to 99.5 million. The company’s combined ratio deteriorated to 99.5% from 95.3%.
“Coming out of 2024, our first quarter results show progress in strengthening our underwriting performance and positioning the franchise for long-term, sustainable profitability,” said Frank D'Orazio (pictured), chief executive officer. “Our disciplined approach to risk selection, combined with the actions taken over the past year to strengthen our reserve position, are showing tangible results.
“As we move forward, we remain focused on delivering value to shareholders as we take advantage of the attractive E&S underwriting environment while closely managing our expenses."
It said its excess and surplus (E&S) segment, where the company is now focusing its attention, had a combined ratio of 91.5% and renewal rate change of 7.8%, with the majority of underwriting divisions reporting pricing increases.
Its specialty admitted insurance segment, which is being run down, had a combined ratio of 102.1%, with fronting and programme gross written premium declining 21.3%.
It said GWP for the fronting and programme business declined 21.3% as the company managed this segment to retain minimal risk. It said this excluded the impact of its large workers’ compensation segment, which were non-renewed in the second quarter of 2023 and sold via a renewal rights transaction in the third quarter of 2023. Overall, premium declined 30.7%.
The company also said it had received a final independent accounting firm determination in a dispute related to the sale of JRG Reinsurance Company to Fleming, finding in favour of James River on $53.6 million of the aggregate $54.1 million of items in dispute, resulting in a small downward adjustment to the purchase price of $500,000.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
