James River to report up to $26m in losses for the quarter
James River has warned of third-quarter net losses between $23 million and $26m ahead of its results. It expects an adjusted net operating loss of between $25.5m and $28.5m and a combined ratio for the quarter of 120-125%.
Most of the loss is attributable to the previously announced loss portfolio transfer (“LPT”) related to its legacy Uber auto policies. (It ceded $345.1m commercial auto liabilities to Uber’s Aleka Insurance captive at the end of September.) It also includes $5m losses related to Hurricane Ida, net of reinsurance recoveries, additional reinstatement premiums of $8.1m for casualty treaties in the excess and surplus lines, and adverse development of $15.1m related to its casualty reinsurance business.
Significant property catastrophe reinsurance means it does not expect any additional net catastrophe losses over the $5m, the company added. It also points out that its combined ratio for E&S lines would have been in the low 80s without the impact of catastrophe losses, additional reinstatement premiums for casualty treaties, and the LPT.
Growth in gross written premium was approximately 20% for E&S business and 10% across the company compared with the same quarter last year.
Separately, the business has also announced that Patricia H Roberts and Thomas L Brown have been elected to its board of directors. Kirstin M Gould has also joined, increasing the board size from 10 to 11 directors.
Roberts has served on the board since July 2019 and is the retired president and chairman of General Star Management Company and Genesis Management and Insurance Services Corporation, both wholly-owned subsidiaries of General Reinsurance Corporation. Brown was senior vice president and chief financial officer of specialty insurer RLI Corp, and previously a PwC partner. Gould was executive vice president and general counsel of XL Group until it was acquired by AXA. She currently serves on the Pacific Life Re Global Limited board and, from 2005 to 2011, chaired the Policy Committee of the Association of Bermuda Insurers and Reinsurers.
“We are very pleased to welcome Tom and Kirstin to our board,” said J Adam Abram, James River non-executive chairman.
“Tom and Kirstin have valuable financial, risk management, and corporate governance expertise, with deep knowledge of the specialty property and casualty insurance industry. We have been fortunate to attract directors who are independent and will bring a wealth of experience and expertise to our board.”
