UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 2025 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _______ to _______ Commission File Number: 001-36777 JAMES RIVER GROUP HOLDINGS, LTD. (Exact name of registrant as specified in its charter) Bermuda 98-0585280 (State or ...

Financial Data and Key Metrics Changes - The company reported net income from continuing operations of $9 million, or $0.18 per diluted share, with adjusted net operating income of $9.1 million, or $0.19 per share for Q1 2025 [17] - The annualized operating return on common tangible equity was 11.5%, and tangible common book value per share increased to $7.11, reflecting a growth of 6.6% [10][17] - The first quarter combined ratio was 99.5%, driven by a loss ratio of 66.8%, which is largely unchanged from 66.4% a year ago [18] Business Line Data and Key Metrics Changes - The E and S segment produced a combined ratio of 91.5% for Q1, with $11.7 million of underwriting income, indicating a solid start to the year [13] - New and renewal submissions in the E and S segment grew by 6%, establishing a new quarterly record of over 91,000 submissions [10] - The Specialty Admitted segment saw gross written premiums decline by 21% compared to the prior year quarter, primarily due to a reduction in primary commercial auto exposure [13] Market Data and Key Metrics Changes - The company experienced a 26% growth in submissions for environmental insurance, 18% for manufacturers, and 10% for small business, driving strong premium growth [10] - Renewal rates for the E and S segment increased by 7.8%, with several divisions experiencing double-digit increases [11] - The average premium size declined by 8.4% per policy compared to the prior year quarter, with specific divisions like life sciences seeing a 23% decline [11][12] Company Strategy and Development Direction - The company is focused on long-term stability and profitability, particularly in the E and S business, while actively managing risks and expenses [5][16] - There is an emphasis on profitability and efficiency, with initiatives underway to grow the E and S book profitably [32] - The company is transitioning its holding company from Bermuda to the United States, which is expected to reduce the effective tax rate and result in significant expense savings [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted that while global headlines are focused on market volatility and economic uncertainty, the company remains well-positioned due to its focus on U.S.-based SME insurance [6] - The company is monitoring new administration policy changes and their potential impact on business [6] - Management expressed confidence in the stability of recently underwritten quarters and the conservative approach taken in underwriting [18] Other Important Information - The company concluded a post-close purchase price adjustment process for its former Bermuda reinsurance segment, resulting in a minor downward adjustment of approximately $500,000 [8] - The impending retirement of the E and S segment leader was announced, with Todd Sutherland set to succeed him [9] Q&A Session Summary Question: March premium growth and focus on smaller accounts - Management confirmed that they will continue to manage the portfolio actively and aim for profitable growth in the E and S book, utilizing technology for efficiency [32] Question: Visibility around E and S reinsurance program pricing - Management indicated that they will provide updates on the reinsurance program in the next quarter [34] Question: Update on claims in construction in Florida - Management noted elevated claim activity in Florida but observed a decrease in severity over the last twelve months [38][39] Question: Moving pieces in Specialty Admitted premiums - Management explained the decline in premiums was due to the runoff from individual risk workers' comp business and the focus on reducing exposure in the fronting market [47] Question: Economic proposition of the Specialty Admitted business - Management stated that the fronting business is deal-driven and will continue to evaluate its scale and profitability [52][53]

Financial Data and Key Metrics Changes - The company reported net income from continuing operations of $9 million, or $0.18 per diluted share, with adjusted net operating income of $9.1 million, or $0.19 per share for Q1 2025 [16][9] - The annualized operating return on common tangible equity was 11.5%, and tangible common book value per share grew to $7.11, reflecting a 6.6% increase [9][16] - The combined ratio for the first quarter was 99.5%, driven by a loss ratio of 66.8%, which is largely unchanged from 66.4% a year ago [17] Business Line Data and Key Metrics Changes - The E and S segment produced a combined ratio of 91.5% for Q1, with $11.7 million of underwriting income, indicating a solid start to the year [12] - New and renewal submissions grew by 6% during the quarter, establishing a new quarterly record of over 91,000 submissions, with notable growth in environmental (26%), manufacturers (18%), and contractors (10%) [9][10] - The Specialty Admitted segment saw gross written premiums decline by 21% compared to the prior year quarter, primarily due to a reduction in primary commercial auto exposure [12][13] Market Data and Key Metrics Changes - The company experienced minimal prior year reserve activity during Q1, maintaining a balance of unused coverage at $116 million [7] - The average premium per policy across the E and S segment declined by 8.4% compared to the prior year quarter, with specific divisions like life sciences seeing a 23% decline [10][11] Company Strategy and Development Direction - The company is focused on long-term stability and profitability, particularly in the E and S business, while actively managing risks and expenses [4][14] - There is an emphasis on profitability and efficiency, with initiatives underway to increase quotes and drive profitable growth in the E and S segment [31] - The company is redomiciling its holding company from Bermuda to the U.S., expected to reduce the effective tax rate and provide significant cost savings [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding market conditions, noting that pricing remains attractive across casualty E and S, allowing selective underwriting [10] - The company is monitoring potential impacts from new administration policies and market volatility, while maintaining a focus on core competencies [5][6] - Management believes 2025 will provide significant opportunities for attractive risk-adjusted returns for shareholders [56] Other Important Information - The company successfully concluded a post-close purchase price adjustment process for its former Bermuda reinsurance segment, resulting in a minor downward adjustment of approximately $500,000 [6] - The impending retirement of the E and S segment leader, Richard Schmitzer, will see Todd Sutherland take over, bringing over 30 years of experience [8] Q&A Session Summary Question: Growth potential in E and S segment - Management indicated that they will continue to manage the portfolio actively and aim for profitable growth, leveraging technology and innovation [31] Question: Update on claims in Florida's construction sector - Management noted elevated claim activity persists in Florida, attributed to a rush by plaintiff's attorneys, but overall severity has decreased [38][39] Question: Economic proposition of the Specialty Admitted business - Management clarified that the fronting business is focused on diversification without consuming much additional capital, and they are constantly evaluating profitability [50][51]

James River Group (JRVR) came out with quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -20.83%. A quarter ago, it was expected that this insurance holding company would post a loss of $0.33 per share when it actually produced a loss of $0.99, delivering a surprise of -200%. James River Group share ...

[Q1 2025 Financial Performance Overview](index=1&type=section&id=Q1%202025%20Financial%20Performance%20Overview) This section provides an overview of James River's financial performance for the first quarter of 2025, including key results, highlights, and management commentary [Key Financial Results](index=1&type=section&id=Key%20Financial%20Results) For the first quarter of 2025, James River reported a net income from continuing operations of $9.0 million ($0.18 per diluted share) and an adjusted net operating income of $9.1 million ($0.19 per diluted share), both significantly lower than Q1 2024 | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income from continuing operations | $9.0 million ($0.18/share) | $20.9 million ($0.53/share) | | Adjusted net operating income | $9.1 million ($0.19/share) | $14.8 million ($0.39/share) | | Net loss from discontinued operations | ($1.4 million) | ($8.1 million) | | Net income available to common shareholders | $7.6 million ($0.16/share) | $12.8 million ($0.35/share) | [Q1 2025 Highlights](index=1&type=section&id=Q1%202025%20Highlights) The first quarter of 2025 was marked by an annualized adjusted net operating return on tangible common equity of 11.5% and a 7.1% growth in tangible common equity, alongside strong E&S segment performance and a favorable resolution of the JRG Reinsurance purchase price dispute - Achieved an annualized adjusted net operating return on tangible common equity of **11.5%** and a **7.1%** growth in tangible common equity year to date[3](index=3&type=chunk) - The Excess & Surplus (E&S) segment reported a combined ratio of **91.5%** and renewal rate increases of **7.8%**[3](index=3&type=chunk) - The Specialty Admitted Insurance segment's combined ratio was **102.1%**, with fronting and program gross written premium declining by **21.3%**[3](index=3&type=chunk) - The company received a favorable final determination in the purchase price adjustment dispute for the sale of JRG Reinsurance Company Ltd., with a minimal downward adjustment of **$0.5 million** on a **$54.1 million** dispute[3](index=3&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO Frank D'Orazio highlighted that Q1 results demonstrate progress in strengthening underwriting performance and positioning the company for long-term profitability, emphasizing disciplined risk selection and reserve bolstering actions - Management sees Q1 results as progress in strengthening underwriting performance for long-term profitability[4](index=4&type=chunk) - The company's strategy involves a disciplined approach to risk selection and leveraging actions taken in the past year to strengthen its reserve position[4](index=4&type=chunk) - Future focus is on taking advantage of the attractive E&S underwriting environment while closely managing expenses[4](index=4&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) This section details the financial performance of James River's key insurance segments, including Excess and Surplus Lines (E&S) and Specialty Admitted Insurance [Excess and Surplus Lines (E&S) Segment](index=2&type=section&id=Excess%20and%20Surplus%20Lines%20%28E%26S%29%20Segment) The E&S segment's gross written premium remained flat year-over-year at $213.2 million, achieving a solid underwriting profit of $11.7 million despite a 37% decrease from the prior year, with the combined ratio increasing to 91.5% due to a higher expense ratio - Gross written premium was largely flat compared to Q1 2024, with renewal rate increases of **7.8%** and a **6%** growth in renewal submissions[4](index=4&type=chunk) E&S Segment Financials | Metric ($ in thousands) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Gross written premiums | $213,243 | $213,691 | (0.2)% | | Net written premiums | $115,079 | $117,425 | (2.0)% | | Net earned premiums | $137,028 | $145,623 | (5.9)% | | Underwriting profit | $11,658 | $18,491 | (37.0)% | | Loss ratio | 64.8% | 64.3% | | | Expense ratio | 26.7% | 23.0% | | | Combined ratio | 91.5% | 87.3% | | [Specialty Admitted Insurance Segment](index=2&type=section&id=Specialty%20Admitted%20Insurance%20Segment) The Specialty Admitted Insurance segment experienced a significant contraction, with gross written premium declining 30.7% to $81.1 million, primarily in the fronting and program business, resulting in an underwriting loss of $0.3 million and a combined ratio deteriorating to 102.1% - Gross written premium for the fronting and program business fell **21.3%** year-over-year as the company aims to retain minimal risk in this segment[4](index=4&type=chunk) Specialty Admitted Insurance Segment Financials | Metric ($ in thousands) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Gross written premiums | $81,118 | $117,119 | (30.7)% | | Net written premiums | $12,877 | $20,747 | (37.9)% | | Net earned premiums | $14,874 | $26,068 | (42.9)% | | Underwriting (loss) profit | ($306) | $786 | N/A | | Loss ratio | 85.0% | 78.4% | | | Expense ratio | 17.1% | 18.6% | | | Combined ratio | 102.1% | 97.0% | | [Detailed Financial Analysis](index=3&type=section&id=Detailed%20Financial%20Analysis) This section provides a detailed analysis of James River's underwriting, operating, and investment results, along with information on discontinued operations [Underwriting and Operating Results](index=3&type=section&id=Underwriting%20and%20Operating%20Results) Consolidated gross written premiums decreased by 11% to $294.4 million in Q1 2025, driven by the decline in the Specialty Admitted segment, with net earned premiums also falling by 12% to $151.9 million, and the consolidated expense ratio increasing to 32.7% due to higher compensation expenses on lower net earned premiums Premium Overview | Premium ($ in thousands) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Gross Written Premium | $294,361 | $330,810 | (11)% | | Net Written Premium | $127,956 | $138,172 | (7)% | | Net Earned Premium | $151,902 | $171,691 | (12)% | - The consolidated expense ratio rose to **32.7%** in Q1 2025 from **28.9%** in Q1 2024, mainly due to higher compensation expenses relative to lower net earned premium[9](index=9&type=chunk) - There was de minimis favorable reserve development in both the E&S and Specialty Admitted insurance segments during the quarter[8](index=8&type=chunk) [Investment Results](index=4&type=section&id=Investment%20Results) Net investment income for Q1 2025 was $20.0 million, an 11.6% decrease from $22.6 million in the prior-year quarter, attributed to a smaller asset base following the funding of retroactive reinsurance structures, with the company also recording net realized and unrealized investment losses of $1.4 million Net Investment Income | Investment Income ($ in thousands) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Private Investments | $200 | ($145) | NM | | All Other Investments | $19,808 | $22,777 | (13)% | | **Total Net Investment Income** | **$20,008** | **$22,632** | **(12)%** | - The decline in investment income was primarily due to a smaller asset base after funding retroactive reinsurance structures for the E&S segment in late 2024[10](index=10&type=chunk) - The company reported net realized and unrealized losses on investments of (**$1.4 million**) a shift from a **$4.6 million** gain in the prior year quarter, mainly due to realized losses on bank loan sales[11](index=11&type=chunk) [Discontinued Operations](index=4&type=section&id=Discontinued%20Operations) The company has finalized the purchase price adjustment dispute related to the sale of JRG Reinsurance Company Ltd., with an independent accounting firm resolving the $54.1 million claim by the buyer, resulting in only a minor $0.5 million downward adjustment to the closing purchase price - The dispute over a **$54.1 million** downward adjustment to the JRG Re sale price was resolved by an independent accounting firm[12](index=12&type=chunk) - The final determination resulted in a small downward adjustment of only **$0.5 million**, which is final and binding[13](index=13&type=chunk) [Capital Management and Shareholder Equity](index=5&type=section&id=Capital%20Management%20and%20Shareholder%20Equity) This section outlines James River's capital management strategies, including dividend declarations and changes in shareholder equity [Capital Management](index=5&type=section&id=Capital%20Management) The Board of Directors declared a quarterly cash dividend of $0.01 per common share, payable on June 30, 2025, to shareholders of record as of June 9, 2025 - The Board of Directors declared a cash dividend of **$0.01** per common share[14](index=14&type=chunk) [Shareholders' Equity](index=5&type=section&id=Shareholders%27%20Equity) Shareholders' equity increased by 5.1% to $484.5 million at the end of Q1 2025 from $460.9 million at year-end 2024, with tangible common equity per share rising 6.6% to $7.11, driven by net income from continuing operations and a $14.3 million improvement in other comprehensive income Shareholders' Equity Overview | Metric | March 31, 2025 | December 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Shareholders' equity | $484.5 million | $460.9 million | 5.1% | | Tangible common equity per share | $7.11 | $6.67 | 6.6% | - The increase in equity was primarily due to net income from continuing operations and a **$14.3 million** benefit to other comprehensive income from a decline in interest rates[15](index=15&type=chunk) [Financial Statements and Reconciliations](index=8&type=section&id=Financial%20Statements%20and%20Reconciliations) This section presents James River's unaudited condensed consolidated financial statements and detailed reconciliations of non-GAAP financial measures to comparable GAAP figures [Condensed Consolidated Financial Statements](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The report includes unaudited condensed consolidated balance sheets as of March 31, 2025, and December 31, 2024, and condensed consolidated income statements for the three months ended March 31, 2025, and 2024, showing total assets decreased slightly to $4.95 billion while total shareholders' equity grew to $484.5 million Condensed Consolidated Balance Sheets | Balance Sheet ($ in thousands) | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total invested assets | $1,623,246 | $1,552,396 | | Total assets | $4,949,015 | $5,007,076 | | Total liabilities | $4,331,420 | $4,413,046 | | Total shareholders' equity | $484,480 | $460,915 | Condensed Consolidated Income Statements | Income Statement ($ in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $172,289 | $201,127 | | Total expenses | $156,280 | $168,167 | | Net income from continuing operations | $10,988 | $23,508 | | Net income | $9,574 | $15,403 | [Reconciliation of Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The company provides detailed reconciliations for its non-GAAP financial measures, including Underwriting Profit, Adjusted Net Operating Income, and Tangible Equity, to comparable GAAP figures, which management believes are useful for evaluating performance by excluding certain non-operating items - Underwriting Profit is a key performance metric defined as net earned premiums and gross fee income less losses and operating expenses, excluding results from retroactive reinsurance[39](index=39&type=chunk) - Adjusted Net Operating Income excludes items such as income from discontinued operations, retroactive reinsurance impacts, realized/unrealized investment gains/losses, and certain non-operating expenses[42](index=42&type=chunk) - Tangible Equity and Tangible Common Equity are used to evaluate balance sheet strength and are calculated by adjusting shareholders' equity for goodwill, intangible assets, and other items[44](index=44&type=chunk)

Core Viewpoint - James River Group Holdings, Ltd. announces the retirement of Richard Schmitzer as President and CEO of the Excess and Surplus Lines segment, with Todd Sutherland set to succeed him effective May 5, 2025 [1][2][4] Leadership Transition - Richard Schmitzer will step down as CEO on July 31, 2025, after over 45 years in the insurance industry, and will retire in the fourth quarter of 2025 [1][2] - Todd Sutherland, currently Senior Vice President of Management Liability, will take over as President of the E&S segment and will report directly to CEO Frank D'Orazio [1][3][4] Todd Sutherland's Background - Todd Sutherland joined James River in 2023 to establish the Management Liability division and has over 30 years of industry experience [3] - Prior to joining James River, Sutherland held significant roles at AXA XL and Allied World Assurance Company, overseeing multi-billion-dollar portfolios [3] Company Strategy and Future Outlook - The transition aims for a seamless leadership change while continuing to execute on strategic priorities for profitable growth in the E&S segment [2][4] - Sutherland expresses commitment to delivering exceptional products and best-in-class service as he leads the business forward [4] Company Overview - James River Group Holdings, Ltd. is a Bermuda-based insurance holding company operating in specialty property-casualty insurance segments, rated "A-" (Excellent) by A.M. Best Company [7]

Core Insights - James River Group Holdings reported a net income from continuing operations of $9.0 million ($0.18 per diluted share) for Q1 2025, a decrease from $20.9 million ($0.53 per diluted share) in Q1 2024 [1][2] - The adjusted net operating income for Q1 2025 was $9.1 million ($0.19 per diluted share), down from $14.8 million ($0.39 per diluted share) in the same quarter last year [1][2] - The company emphasized progress in underwriting performance and sustainable profitability, driven by disciplined risk selection and improved reserve positions [3] Financial Performance - Gross written premiums for Q1 2025 totaled $294.4 million, a decline of 11% from $330.8 million in Q1 2024 [7][25] - The net written premium was $128.0 million, down 7% from $138.2 million in the prior year [7][25] - Net earned premiums decreased by 12% to $151.9 million from $171.7 million in Q1 2024 [7][25] Segment Performance - The Excess and Surplus Lines segment reported gross written premiums of $213.2 million, nearly flat compared to $213.7 million in Q1 2024 [5][32] - The Specialty Admitted Insurance segment saw a significant decline in gross written premiums, down 30.7% to $81.1 million from $117.1 million in the prior year [5][35] - The combined ratio for the E&S segment was 91.5%, while the Specialty Admitted Insurance segment had a combined ratio of 102.1% [4][35] Investment Results - Net investment income for Q1 2025 was $20.0 million, a decrease of 11.6% from $22.6 million in Q1 2024 [11] - The company experienced net realized and unrealized losses on investments of $1.4 million, compared to gains of $4.6 million in the prior year [12] Capital Management - The Board of Directors declared a cash dividend of $0.01 per common share, payable on June 30, 2025 [14] - Shareholders' equity increased to $484.5 million as of March 31, 2025, up 5.1% from $460.9 million at the end of 2024 [15] Other Highlights - The company reported an annualized adjusted net operating return on tangible common equity of 11.5% and a year-to-date growth in tangible common equity of 7.1% [4] - The company resolved a purchase price adjustment dispute related to the sale of JRG Reinsurance Company, resulting in a small downward adjustment of $0.5 million [4][13]

Group 1 - James River Group Holdings, Ltd. will release its first quarter 2025 earnings on May 5, 2025, after market close [1] - An earnings conference call is scheduled for May 6, 2025, at 8:00 a.m. Eastern Time, accessible via phone or the investor website [1] - The company operates as a Bermuda-based insurance holding company with a focus on specialty insurance [2] Group 2 - James River Group Holdings, Ltd. owns and operates a group of specialty insurance companies in two segments: Excess and Surplus Lines and Specialty Admitted Insurance [2] - All of the company's regulated insurance subsidiaries are rated "A-" (Excellent) by A.M. Best Company [2]

Core Viewpoint - James River Group Holdings, Ltd. has appointed Bob Zimardo as Senior Vice President, Investments and Investor Relations, effective April 16, 2025, indicating a strategic move to enhance its investment and investor relations capabilities [1][2]. Group 1: Appointment Details - Bob Zimardo brings over 20 years of experience in asset management, investor relations, and corporate operations across private and public global markets [2]. - His most recent position was with International Farming, a multi-billion dollar farmland investment platform, where he served as Partner, Investor Relations and Operations [2]. - Prior to that, he was the Director of Client Services at Halcyon Capital Management, managing relationships across various private market investment offerings [2]. Group 2: Company Background - James River Group Holdings, Ltd. is a Bermuda-based insurance holding company that operates a group of specialty insurance companies [3]. - The company functions in two specialty property-casualty insurance segments: Excess and Surplus Lines and Specialty Admitted Insurance [3]. - Each of the company's regulated insurance subsidiaries is rated "A-" (Excellent) by A.M. Best Company [3].

Market and Industry Data This presentation includes market and industry data, forecasts and projections. We have obtained certain market and industry data from publicly available industry publications. These sources generally state that the information they provide has been obtained from sources believed to be reliable, but that the accuracy and completeness of the information are not guaranteed. The forecasts and projections are based on historical market data, and there is no assurance that any of the for ...