James River’s Q2 profits slide further

Bermuda-based specialty re/insurer James River ended the second quarter with a fractionally better combined ratio outlook despite rocky results, with profit falling yet again.

James River’s combined ratio saw a marginal improvement to 98.6%, compared to 99.3% in the second quarter of 2024.

However, net profit was reported at $2.79 million for Q2 2025, compared to $5 million in the same period a year prior.

Gross premiums written in Q2 2025 saw an 8% decline, down to $378 million from $412 million in Q2 2024, with the specialty admitted insurance segment premium declining 35%.

Over the past two years, James River has undergone significant restructuring to stabilise its financial position and reduce legacy risk exposure in the face of troubling developments. The company reported a full-year net loss of $118.3 million in 2024 and a sharp decline in Q1 2025 with net income at $9 million, reflecting the cost of recent de-risking actions.

The re/insurer’s reputation was called into question in 2024 over securities fraud accusations in a two-way loggerhead over the acquisition of JRG Reinsurance. This, alongside a deal with Enstar, triggered heavy restructuring and a pivot to an excess and surplus (E&S) focus, but has contributed to financial strain.

While AM Best reaffirmed its A- financial strength rating, the group's ongoing transformation signals both operational uncertainty and a push for long-term simplification and profitability.

Q2 2025 results did prove more favourable for James River's E&S segment, with a 3% premium growth and renewal rates increasing by 13.9% from the first quarter.

Frank D’Orazio 9pictured0, chief executive officer, said: “Our second quarter results reflect continued execution of our strategic priorities, namely growing our casualty E&S business through disciplined underwriting across the portfolio and ongoing management of our expenses. With our new leadership appointments in place, we are focused on enhancing profitability and strengthening operational efficiency to deliver long-term value for shareholders.”

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