James River reports ‘solid’ Q2 results
James River Group Holdings has reported first quarter 2018 net income of $15.6 million, down slightly on the $18.5 million for the first quarter of 2017. According to the company adjusted net operating income for the first quarter of 2018 was $16.6 million, again a slight fall from the $17.7 million it reported for the same period of 2017.
“I am pleased with our first quarter results,” said chief executive officer Robert Myron. “Our team delivered a 14.1 percent annualised adjusted net operating return on average tangible equity and attractive combined ratios in all of our underwriting segments for the quarter.
“Our two US primary segments had strong growth in gross written premiums. Core E&S renewal rates increased 13 percent during the quarter, our second consecutive quarter of meaningful rate increases. These rate increases, along with continued increases in submission flow, provide strong momentum as we look toward the remainder of the year.”
James River said that its excess and surplus lines segment grew due to increases in its commercial auto division amid a rate increase on the renewal of the company's largest contract, as well as 39.7 percent growth in core (non-commercial auto) lines net written premium, as nine out of twelve underwriting divisions grew, driven in part by an average rate increase of 13 percent across core lines.
The specialty admitted insurance segment decreased as a result of the October 1, 2017 inception of a new third party 50 percent quota share reinsurance agreement on its individual risk workers' compensation line, partially offset by an increase in both individual risk workers’ compensation and fronting premium.
Finally the company said that net written premium in the casualty reinsurance segment was relatively flat compared to the prior year quarter, but net earned premium increased as a result of a higher level of net written premium during 2017. The company expects net written premiums in this segment to decrease ‘meaningfully’ for the full year 2018, but its net earned premium will lag given the earning patterns of the business, which can extend to 24 months.
James River Group, Q1, 2018, results, premiums, profits