Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment opportunities Group 1: Company Summaries - Ponce Financial Group (PDLB) is a financial holding company providing various banking products and services, with a current year earnings estimate increase of 12.9% over the last 60 days [1] - James River Group (JRVR) operates specialty insurance and reinsurance companies, with a current year earnings estimate increase of 10.5% over the last 60 days [2] - California BanCorp (BCAL) is a registered bank holding company offering financial products and services, with a current year earnings estimate increase of 6.9% over the last 60 days [3] - Universal Health Services (UHS) owns and operates various healthcare facilities, with a current year earnings estimate increase of 6.7% over the last 60 days [4] - Waystar Holding Corp. (WAY) provides healthcare payment solutions, with a current year earnings estimate increase of 5% over the last 60 days [4]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: James River Group (JRVR) - James River Group currently holds a Momentum Style Score of B, indicating potential for solid momentum [3] - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4] Performance Metrics - JRVR shares have increased by 3.77% over the past week, while the Zacks Insurance - Multi line industry has decreased by 1.28% during the same period [6] - Over the last month, JRVR's price change is 10.64%, significantly outperforming the industry's 0.26% [6] - In the last quarter, JRVR shares rose by 5.73%, and over the past year, they gained 23.54%, compared to the S&P 500's increases of 5.38% and 14.31%, respectively [7] Trading Volume - The average 20-day trading volume for JRVR is 234,151 shares, which serves as a useful indicator of price-to-volume dynamics [8] Earnings Outlook - In the past two months, one earnings estimate for JRVR has increased, while none have decreased, raising the consensus estimate from $0.95 to $1.05 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions, indicating positive earnings momentum [10] Conclusion - Considering the positive performance metrics and earnings outlook, JRVR is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a compelling near-term investment option [12]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Group 1: Company Earnings Estimates - West Bancorporation, Inc. (WTBA) has seen a 7.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - James River Group Holdings, Ltd. (JRVR) has experienced a 10.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Commercial Metals Company (CMC) has reported a 12.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Pan American Silver Corp. (PAAS) has seen a 9.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Agnico Eagle Mines Limited (AEM) has experienced nearly an 8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Core Viewpoint - James River Group (JRVR) shares have increased by 6.5% recently, with a mean price target of $7.06 indicating a potential upside of 26.8% from the current price of $5.57 [1] Price Targets and Analyst Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $1.09, where the lowest estimate is $6.00 (7.7% increase) and the highest is $8.00 (43.6% increase) [2] - A low standard deviation suggests a high degree of agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Market Sentiment - Analysts are optimistic about JRVR's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which have increased by 10.5% over the past month [11][12] - The Zacks Consensus Estimate indicates that JRVR holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - Solely relying on price targets for investment decisions may not be wise, as empirical research shows that they often mislead investors [3][7][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]

Financial Performance - For the nine months ended September 30, 2025, net cash provided by operating activities was $8.01 million, a significant improvement from $(254.55) million in the same period of 2024[28]. - The company reported a net cash used in investing activities of $(146.42) million for the nine months ended September 30, 2025, compared to $321.37 million in 2024[28]. - Cash provided by operating activities, excluding restricted cash activity, was $7.1 million for the nine months ended September 30, 2025, compared to $(210.5) million in 2024[28]. - The company reported interest paid of $19.19 million for the nine months ended September 30, 2025, down from $22.43 million in 2024[28]. - For the three months ended September 30, 2025, the net income from continuing operations was $1.593 million, compared to a loss of $38.077 million in the same period of 2024[78]. - The basic earnings per share (EPS) for continuing operations was $(0.01) for Q3 2025, compared to $(1.07) for Q3 2024[78]. - The company reported a total comprehensive income of $11,743,000 for the three months ended September 30, 2025, compared to $31,056,000 for the same period in 2024[97]. Investment Activities - The company completed the sale of JRG Re, resulting in an aggregate consideration of approximately $291.4 million, with $152.4 million paid in cash and $139 million as a dividend from contributed surplus[47]. - The company’s investments related to variable interest entities totaled $7.3 million at September 30, 2025, compared to $7.7 million at December 31, 2024[39]. - The company has outstanding commitments to invest an additional $59.2 million in collateralized investment grade notes receivable for structured private specialty credit as of September 30, 2025[74]. - The company’s investments in limited partnerships increased to $18,600,000 as of September 30, 2025, up from $15,108,000 as of December 31, 2024, reflecting a strategic focus on diversified investment portfolios[71]. - The company recognized net realized and unrealized losses on bank loan participations of $(1.9) million for the nine months ended September 30, 2025, compared to $(3.1) million in the prior year[62]. Debt and Financing - Senior debt issuances amounted to $25 million in 2025, while senior debt repayments were $21.5 million in 2024[28]. - The company entered into a new Credit Agreement on June 12, 2025, replacing the previous agreement, which provided for a $212.5 million unsecured revolving credit facility[121]. - The Company has a $212.5 million unsecured revolving credit facility maturing on June 12, 2028, with interest rates based on the Secured Overnight Financing Rate (SOFR) plus a margin based on the Company's Leverage Ratio[122]. - As of September 30, 2025, the drawn balance on the unsecured revolver was $210.8 million, including $25.0 million borrowed under the Previous Credit Agreement[123]. - The Company was in compliance with financial covenants, including a maximum leverage ratio and minimum consolidated net worth, as of September 30, 2025[125]. Assets and Securities - The cash, cash equivalents, and restricted cash equivalents at the end of the period were $268.38 million, down from $388.14 million in 2024[28]. - As of September 30, 2025, the fair value of available-for-sale fixed maturity securities was $1.391875 billion, with gross unrealized losses amounting to $58.992 million[55]. - The total fixed maturity securities available-for-sale increased from $1.189733 billion on December 31, 2024, to $1.391875 billion on September 30, 2025[55]. - The carrying value of fixed maturity securities increased from $1,189,733,000 as of December 31, 2024, to $1,391,875,000 as of September 30, 2025[141]. - The total fair value of equity securities as of September 30, 2025, was $88,791,000, with $77,197,000 classified as Level 2 inputs[132]. Losses and Reserves - The company incurred total losses and loss adjustment expenses of $333.67 million for the nine months ended September 30, 2025, down from $409.814 million for the same period in 2024[82]. - The reserve for losses and loss adjustment expenses net of reinsurance recoverables at the end of Q3 2025 was $1.087 billion, an increase from $1.061 billion at the end of Q3 2024[82]. - The company experienced $2.6 million of net favorable reserve development in Q3 2025, contrasting with $56.9 million of net adverse reserve development in Q3 2024[83][84]. - The cumulative amounts ceded under the Commercial Auto Loss Portfolio Transfer were $458.0 million as of September 30, 2025[89]. - The adverse prior year development ceded on subject business for the three months ended September 30, 2025, was $24,462,000, compared to $20,158,000 for the same period in 2024[96]. Dividends and Shareholder Equity - The Company paid cash dividends of $5.9 million and $10.5 million on Series A Preferred Shares for the nine months ended September 30, 2025 and 2024, respectively[147]. - The Company declared total dividends of $1.43 million on common shares during the first nine months of 2025, compared to $5.82 million in the same period of 2024[158]. - The dividend rate for Series A Preferred Shares will reset on October 1, 2029, to the five-year U.S. treasury rate plus 5.2%, capped at 8.0%[147]. - The total balance of collateral securing Rasier's obligations under the Indemnity Agreements was $43,500,000 as of September 30, 2025[106]. - The total reinsurance recoverables under the Commercial Auto LPT amounted to $20,300,000 as of September 30, 2025[106]. Market Risks - The primary market risks identified include interest rate risk associated with investments in fixed maturities and equity price risk associated with investments in equity securities[306]. - There have been no material changes in market risk from the previous annual report for the year ended December 31, 2024[307].

Financial Data and Key Metrics Changes - The company reported an annualized adjusted net operating return on tangible common equity of 19.3%, exceeding the mid-teens return target, with adjusted net operating income of $0.32 per share [5][19] - Tangible common book value per share increased by 23.4% year to date [5][19] - The combined ratio improved to 94%, down from 135.5% in Q3 2024 and 98.6% in Q2 2025, with an expense ratio of 28.3%, a decrease of over three percentage points year over year [5][20] Business Line Data and Key Metrics Changes - The E&S segment's gross written premiums declined by 8.9% year over year, but net earned premium grew by 1%, resulting in $16.4 million in underwriting income and an improved combined ratio of 88.3% [13] - Specialty divisions showed growth, with allied health growing over 20% for two consecutive quarters, and energy and life sciences growing at 16% and 10%, respectively [11] - The excess property unit experienced a 19.6% decrease in rates, leading to a 38.2% drop in gross premiums [12] Market Data and Key Metrics Changes - Year-to-date rates increased by 11% across casualty lines, with a 6.1% increase in Q3, particularly notable in commercial auto (+29.8%) and energy (+19%) [9] - Submission volumes rose by 3% year over year, with average renewal premium size down 12.7% year to date [9] Company Strategy and Development Direction - The company is focused on profitability and has shifted towards smaller accounts with lower average premiums, which are believed to be more profitable [6][7] - A strategic reorganization has created a more agile structure to improve execution and accountability [8] - The company plans to maintain discipline in underwriting and continue to shift towards smaller, more profitable accounts while managing expenses aggressively [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market opportunity ahead despite competitive pressures, particularly in larger accounts and property risks [6] - The company anticipates that the planned redomicile will bring significant expense benefits and a lower effective tax rate, expected to be accretive to fourth-quarter earnings [22] Other Important Information - The company reported a small net loss from continuing operations of $376,000, or about a penny per diluted share, but an adjusted net operating income of $17.4 million [19] - The company has reduced its workforce from 640 to 590 employees, contributing to cost savings [20] Q&A Session Summary Question: How much of the favorable loss experience is due to underwriting actions versus market trends? - Management indicated that the favorable loss experience is heavily tied to underwriting actions taken, including instituting sub-limits and exclusions, and improving performance monitoring [24][25] Question: What is the expense ratio target? - The full-year target for the expense ratio is 31%, down from the beginning of the year, with a focus on the dollars taken out of the organization rather than just the ratio [26] Question: What is the outlook for the excess property business? - Management expects continued double-digit rate decreases in the excess property market, with a significant amount of capacity available [27] Question: What is the status of the Specialty Admitted Insurance segment? - The segment has significantly reduced commercial auto exposure and net retentions, focusing on profitability while managing expenses [31][33]

Financial Data and Key Metrics Changes - The company reported an annualized adjusted net operating return on tangible common equity of 19.3%, exceeding the mid-teens return target, with adjusted net operating income of $0.32 per share [6][18] - Tangible common book value per share increased by 23.4% year to date [6][19] - The group combined ratio improved to 94%, down from 135.5% in the prior year and 98.6% in the previous quarter [6][19] - The expense ratio decreased to 28.3%, reflecting a reduction of over three percentage points compared to the prior year quarter [6][19] Business Line Data and Key Metrics Changes - In the E and S segment, rates increased by 11% year to date, with a 6.1% increase in casualty rates for the quarter [9] - Gross written premiums declined by 8.9% compared to the prior year quarter, but the Specialty division grew by 4% [11] - The accident year loss ratio was 63.5%, 1.2 points lower than the prior year quarter [13] Market Data and Key Metrics Changes - Submission volumes rose by 3% over the prior year quarter, while average renewal premium size decreased by 12.7% year to date [9] - The E and S net retention on the portfolio exceeded 58%, up from 56% in the same quarter last year [10] Company Strategy and Development Direction - The company is focused on profitability and has shifted towards smaller accounts with lower average premiums, which are believed to be more profitable [7][8] - A planned redomicile from Bermuda to Delaware is expected to enhance operational efficiency and reduce the effective tax rate, with anticipated one-time tax savings of $10 million to $13 million [22][23] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of underwriting and derisking actions in improving operating results, particularly in a transitioning property and casualty marketplace [5][6] - The company remains constructive on market opportunities despite competitive pressures, particularly in larger accounts and property risks [7][8] Other Important Information - The company reported a small net loss from continuing operations of $376,000 or about $0.01 per diluted share [18] - The company has reduced its workforce from 640 to 590 full-time employees, contributing to cost savings [20] Q&A Session Summary Question: How much of the favorable loss experience is due to underwriting actions versus broader market trends? - Management indicated that the favorable loss experience is heavily tied to underwriting actions taken, including improved performance monitoring and adjustments to underwriting practices [26][27] Question: What is the expense ratio target for the year? - The full-year target for the expense ratio is 31%, down from the beginning of the year [28][29] Question: What is the outlook for the excess property business? - Management expects continued double-digit rate decreases and a loosening of terms and conditions in the property market, with no significant changes anticipated unless a major event occurs [30][32] Question: What is the status of the reserve charge and its impact on current underwriting? - The reserve charge primarily involved lines of business still being written, with significant underwriting actions taken in response to increased low severity claims [35][36] Question: What is the outlook for the Specialty Admitted segment? - The company is managing the Specialty Admitted segment for profitability, significantly reducing commercial auto exposure and maintaining low net retention [39][42]

Core Insights - James River Group Holdings, Ltd. reported a significant turnaround in underwriting income, achieving $8.9 million in Q3'25 compared to a loss of $56.8 million in Q3'24, with an improved combined ratio of 94.0% from 135.5% [1][2] Financial Performance - The combined ratio for Q3'25 was composed of a loss ratio of 65.7% and an expense ratio of 28.3%, improving from 104.1% and 31.4% in Q3'24 respectively [2] - The company experienced a net loss from continuing operations available to common shareholders of $0.4 million, a significant improvement from a net loss of $40.7 million a year earlier [2] - Adjusted net operating income for the quarter was $17.4 million, a recovery from a loss of $28.2 million in the previous year [2] Premiums and Revenue - Gross written premiums (GWP) decreased by 28% to $237.3 million from $330.4 million, with Excess and Surplus Lines GWP at $209.8 million (down 9% year over year) and Specialty Admitted Insurance GWP at $27.4 million (down 73%) [3] - Net written premiums totaled $122.7 million, down 17% from $147.3 million, while net earned premiums stood at $148.5 million, down 7% from $159.7 million [3] Investment Income - Net investment income in Q3'25 was $21.9 million, a 7% decrease from $23.6 million in Q3'24, primarily due to a lower interest rate environment and a one-time payment of over $0.8 million in the prior-year quarter related to asset sales [4] Overall Revenue - Total revenues for the quarter amounted to $172.7 million, down from $191.5 million [5] Management Commentary - The CEO highlighted that the third quarter results provide strong returns for shareholders and reflect the company's underwriting discipline, particularly in the casualty-focused small and medium enterprise portfolio [5] - The company has completed its E&S leadership reorganization and is well underway with portfolio repositioning, aiming to capitalize on market opportunities and drive profitability [6]

Financial Performance - Net loss from continuing operations available to common shareholders for Q3 2025 was $0.4 million, or ($0.01) per diluted share, significantly improved from a net loss of ($40.7 million), or ($1.07) per diluted share, in Q3 2024[1] - Adjusted net operating income for Q3 2025 was $17.4 million, or $0.32 per diluted share, compared to an adjusted net operating loss of ($28.2 million), or ($0.74) per diluted share, in the same period last year[1] - Net income for Q3 2025 was $1.0 million, compared to a net loss of $39.4 million in Q3 2024[25] - Adjusted net operating income for Q3 2025 was $17.4 million, compared to a loss of $28.2 million in Q3 2024[25] - Total revenues for Q3 2025 were $172.7 million, a decline of 9.8% compared to $191.5 million in Q3 2024[25] - Total underwriting profit for the operating segments was $16,081,000 in Q3 2025, compared to a loss of $48,345,000 in Q3 2024[39] - The income available to common shareholders for Q3 2025 was $111,000, a recovery from a loss of $55,920,000 in Q3 2024[42] Premiums and Underwriting - Gross written premiums for Q3 2025 were $237.3 million, a decrease of 28.2% from $330.4 million in Q3 2024[25] - Net earned premiums for Q3 2025 were $148.5 million, down 7.0% from $159.7 million in Q3 2024[25] - Net earned premium for the Excess and Surplus segment was $140.2 million, a 1% increase year-over-year, while gross written premium for the segment declined by 8.9%[5][6] - The Specialty Admitted Insurance segment experienced a 45% decline in gross written premium year-to-date compared to the prior period, reflecting a strategy to minimize risk[5] - Gross written premiums for Excess and Surplus Lines decreased by 8.9% to $209,831,000 in Q3 2025 compared to $230,215,000 in Q3 2024[32] - Specialty Admitted Insurance gross written premiums fell by 72.6% to $27,445,000 in Q3 2025 compared to $100,208,000 in Q3 2024[34] Ratios and Reserves - The combined ratio improved to 94.0% in Q3 2025 from 135.5% in the prior year quarter, with underwriting income of $8.9 million compared to a loss of $56.8 million in Q3 2024[3] - The loss ratio for Q3 2025 improved to 65.7%, down from 104.1% in Q3 2024[25] - The combined ratio for Q3 2025 was 94.0%, significantly better than 135.5% in Q3 2024[25] - The loss ratio for Excess and Surplus Lines improved to 63.5% in Q3 2025 from 108.2% in Q3 2024, and the combined ratio decreased to 88.3% from 136.1%[32] - The combined ratio for Specialty Admitted Insurance increased to 104.3% in Q3 2025 from 91.3% in Q3 2024[34] - The Company recognized $51.3 million of adverse reserve development primarily related to accident years 2020-2022, while observing lower frequency and incurred losses from accident years starting in 2023[5][7] Investment and Equity - Net investment income for Q3 2025 was $21.9 million, a 7% increase from the prior quarter but a 7% decrease from $23.6 million in the prior year quarter[9][10] - Shareholders' equity increased to $503,638,000 as of September 30, 2025, up from $492,558,000 in June 2025, representing a growth of 0.22%[44] - Tangible equity reached $511,540,000 for September 30, 2025, compared to $476,855,000 in June 2025, indicating an increase of 7.5%[44] - Tangible common equity was reported at $378,425,000 as of September 30, 2025, up from $343,740,000 in June 2025, reflecting a growth of 10.1%[44] - Tangible common equity per share increased by 23.4% to $8.24 since December 31, 2024, with tangible common equity reaching $378.4 million, a 24.2% increase from $304.6 million[3][14] Dividends and Share Count - A cash dividend of $0.01 per common share was declared, payable on December 31, 2025, to shareholders of record as of December 15, 2025[13] - The number of common shares outstanding was 45,936,898 as of September 30, 2025, slightly up from 45,895,335 in June 2025[44] - The total common shares outstanding after the assumed conversion of Series A preferred shares was 59,458,532 as of September 30, 2025[44]

Core Insights - James River Group Holdings reported a net loss from continuing operations of $0.4 million, significantly improved from a loss of $40.7 million in the same quarter of 2024, indicating a recovery in financial performance [1][2] - Adjusted net operating income for Q3 2025 was $17.4 million, a notable turnaround from a loss of $28.2 million in Q3 2024, reflecting effective underwriting and operational strategies [1][2] Financial Performance - The combined ratio improved to 94.0% from 135.5% in the prior year quarter, demonstrating enhanced underwriting performance [4] - Underwriting income was reported at $8.9 million, compared to a loss of $56.8 million in the prior year quarter, indicating a strong recovery in underwriting results [4] - The expense ratio decreased to 28.3% from 31.4% in the prior year quarter, showcasing effective cost management [4] Segment Performance - The Excess and Surplus (E&S) segment reported a combined ratio of 88.3%, down from 136.1% in the prior year quarter, highlighting improved profitability in this segment [4][5] - Net earned premium for the E&S segment was $140.2 million, a slight increase of approximately 1% compared to the prior year quarter, while gross written premium declined by 8.9% [5][7] - The Specialty Admitted Insurance segment experienced a significant decline, with gross written premium down 72.6% year-over-year, reflecting the company's strategy to minimize risk exposure [6][32] Investment Results - Net investment income for Q3 2025 was $21.9 million, a 7% increase from the previous quarter, although it was down 7% compared to the same quarter last year [9][10] - The annualized gross investment yield remained stable at 4.6%, consistent with the previous quarter [10] Capital Management - The Board of Directors declared a cash dividend of $0.01 per common share, payable on December 31, 2025, indicating a commitment to returning value to shareholders [12] - Tangible common equity increased by 24.2% to $378.4 million compared to December 31, 2024, driven by net income and unrealized gains [13] Operational Efficiency - The company has achieved lasting expense reductions and is positioned to capitalize on market opportunities, as stated by the CEO [3] - The total full-time employee count decreased from 640 at the end of 2024 to 590, contributing to overall cost savings [8]