James River admits to “very disappointing” Q4 results

James River Group Holdings admitted it had experienced a “very disappointing” fourth quarter in 2020, but insisted it is well positioned to take advantage of improving market conditions going forward.

James River saw its profits decline for both the full year and Q4, reporting a net profit of $4.8 million for the full year in 2020, compared to a profit of $38.3 million in 2019. For the fourth quarter 2020 it made a net loss of $20.3 million, compared to net profit of $20.5 million for the same period of 2019.

Gross written premiums were $1.26 billion for the full year 2020, a little down on the 2019 figure of $1.47 billion. Gross written premiums also dipped slightly in Q4, to $359.7 million in 2020, from $375.2 million in Q4 2019.

Its combined ratio rose to 105.6 percent for the full year in 2020, up from 101.2 percent in 2019. It rose dramatically in Q4, to 131 percent, from 93.8 percent in the same period the previous year.

Frank D'Orazio, James River’s chief executive officer, noted the re/insurer had meaningfully strengthened its reserves in the commercial auto division of its E&S and casualty reinsurance segments in response to a significant increase in reported losses.

“While our results for the fourth quarter and full year 2020 were very disappointing, the company is extremely well positioned to take advantage of compelling market conditions across our segments,” he said.