J. Adam Abram, the chairman and CEO of Bermuda-based James River Holdings, has welcomed the company’s second quarter 2017 results, in which the company saw its net income total $14.6 million, slightly down on the $14.9 million it made for the same period of 2016.
“We are pleased with our second quarter results,” said Abram. “Our low expense ratio allows us to maintain our focus on underwriting profit while still growing. This quarter we also reacted to some negative developments in our business; it is our practice to do so quickly. With our 13.4 percent annualised operating return on tangible equity based on year-to-date results, we reiterate our guidance of a 12 percent or greater return.”
Net written premiums for the period totalled $207.8 million, a rise of 56 percent on the $133 million it made in the same three months of 2016.
The company said that its excess and surplus lines segment grew largely due to increases in commercial auto, environmental and allied health divisions, which were partially offset by declines in manufacturing & contractors and excess casualty.
The second quarter results had a combined ratio of 97.7 percent, up slightly on the 96.1 percent that was reported in the prior year quarter. The company said that this was principally due to a prior period commission adjustment for three profitable contracts in the casualty reinsurance segment.
James River Group also announced that net investment income for the quarter came to $13.7 million, an increase of 19 percent over the prior year quarter. The company attributed this to an increased contribution from renewable energy investments which significantly exceeded its expectations.
James, River, Holdings, Bermuda-based, Group, quarter, results