James River backs away from casualty reinsurance
Bermuda-based insurance group James River Group Holdings has said it will pull back from writing casualty reinsurance to instead focus on its specialty and E&S primary operations.
Its gross written premium in its casualty reinsurance segment dropped by 77% year-on-year in the fourth quarter, pushing the segment’s percentage of group net written premium from nearly one third to less than 7%.
James River had already seen GWP decline by 54% year on year in Q1 2022, citing non-renewal of several treaties at the 1.1 as the group moved to reposition the portfolio. That decline deepened in Q2 before a rebound in sales Q3.
In contrast, net written premium in primary E&S rose 20% year on year in the fourth quarter and specialty admitted business enjoyed a 6% y/y gain.
James River has already signed off with Fortitude Re to reinsure the bulk of its casualty reinsurance reserves in a deal announced in 2021.
"We continue to take advantage of compelling underwriting conditions in our insurance businesses, generating attractive growth, and validating the strength of our underwriting franchise," CEO Frank D'Orazio said of Q4 results.
"We have decided to suspend underwriting activities in our casualty reinsurance segment, which we believe repositions the Company around its core strengths."
