Financial Data and Key Metrics Changes - The company reported an adjusted net operating income of $0.53 per share for Q4 2022, with an annualized net operating return on tangible common equity of 23.5% [36] - For the full year 2022, the adjusted net operating return on tangible common equity was 17.4%, marking the highest in the company's history [37] - The tangible book value per common share increased by 8.5% in Q4 to $9.51, indicating strong momentum heading into 2023 [36] Business Line Data and Key Metrics Changes - In the E&S segment, gross premiums increased by 11.3% and net premiums by 20.5% in Q4 2022, with a combined ratio of 85.1% for the full year [5][15] - The Casualty Reinsurance segment saw a significant decline in gross written premiums by 76.8% in Q4 and 53.2% for the full year, aligning with the company's strategy to reduce top-line writings [7][16] - The Specialty Admitted segment achieved an 86.8% combined ratio and modest premium growth despite a reduction in individual risk workers' compensation business [15] Market Data and Key Metrics Changes - Renewal rates increased by 6.5% in Q4 2022 and nearly 10% for the full year, indicating a robust market environment [32] - The company experienced a strong growth in renewal submissions, up 8% in Q4, reflecting healthy market conditions [43] Company Strategy and Development Direction - The company is focused on repositioning around its core strengths and has suspended underwriting activities in the Casualty Reinsurance segment to allocate capital more effectively [35] - The strategic actions taken over the past two years are expected to lead to stronger future profitability and reduced volatility [16][17] - The company aims to drive a mid-teen return on tangible common equity in 2023, benefiting from favorable conditions in the E&S market [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the E&S market and the opportunities presented by the fronting marketplace [17] - The company anticipates continued favorable underwriting conditions throughout 2023, with a slight increase in loss cost trends due to inflationary pressures [32][58] - The management highlighted the importance of prudent portfolio management and the expectation of a stable expense ratio despite changes in business mix [24][71] Other Important Information - The company reported a combined ratio of 94.3% for the full year, with fee income growth of 4.3% [33] - Investment income for Q4 was $22.8 million, growing 32% sequentially and 88% year-over-year, supported by strong cash flow and rising interest rates [19][20] Q&A Session Summary Question: Guidance on mid-teen return on tangible common equity - Management indicated that the mid-teen guidance reflects a conservative view of the market, with expectations for continued growth in the E&S segment [42][43] Question: Impact of Casualty Re underwriting cessation - Management confirmed that they expect to earn about half the premium from the Casualty Re segment in 2023, focusing on servicing the in-force portfolio [22][49] Question: Pricing relative to loss trends in E&S business - Management noted that while there are pressures in some areas, overall pricing remains favorable compared to loss trends, with a cautious view on loss cost trends for the upcoming year [56][58]

Part I [Business](index=5&type=section&id=Item%201.%20BUSINESS) James River Group Holdings, Ltd. is a Bermuda-based specialty insurance and reinsurance holding company primarily focused on the U.S. excess and surplus lines market - The company is a Bermuda-based holding company for specialty insurance and reinsurance, primarily focused on the **U.S. excess and surplus (E&S) lines market**[18](index=18&type=chunk) Gross Written Premiums by Segment (FY 2022) | Segment | Gross Written Premiums (Millions) | % of Total | | :--- | :--- | :--- | | Excess and Surplus Lines | $921.2M | 61.5% | | Specialty Admitted Insurance | $490.2M | 32.8% | | Casualty Reinsurance | $85.2M | 5.7% | | **Total** | **$1,496.6M** | **100.0%** | - The company's regulated insurance and reinsurance subsidiaries hold an **'A-' (Excellent) financial strength rating** from A.M. Best with a stable outlook[26](index=26&type=chunk) - A strategic decision was made to suspend writing new business in the **Casualty Reinsurance segment** to focus on growing higher-returning U.S. insurance and fronting businesses[97](index=97&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20RISK%20FACTORS) The company faces significant risks including uncertain loss reserves, credit risk from reinsurers, potential rating downgrades, investment portfolio volatility, and extensive regulatory changes - Reserving for losses is inherently uncertain, and actual incurred losses may exceed established reserves, which could materially harm financial condition, with significant adverse reserve development in **Casualty Reinsurance** and **Excess and Surplus Lines** (commercial auto) segments in recent years[269](index=269&type=chunk)[271](index=271&type=chunk) - The company is subject to **credit risk from reinsurance counterparties**, with reinsurance recoverables from the three largest reinsurers totaling **$717.1 million** as of December 31, 2022[292](index=292&type=chunk) - A decline in the company's **'A-' financial strength rating** from A.M. Best could reduce new or renewal business and trigger adverse conditions under credit facilities[275](index=275&type=chunk)[276](index=276&type=chunk) - The investment portfolio is subject to significant **market and credit risks**, with rising interest rates in 2022 leading to **$193.0 million unrealized losses** on fixed maturity investments[308](index=308&type=chunk)[309](index=309&type=chunk) - The company is subject to **extensive regulation** in the U.S. and Bermuda, where changes in laws like the 2017 Tax Act or new cybersecurity regulations could increase compliance costs and adversely affect operations[319](index=319&type=chunk)[321](index=321&type=chunk)[354](index=354&type=chunk) [Unresolved Staff Comments](index=65&type=section&id=Item%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reports no unresolved staff comments from the SEC - Not applicable[432](index=432&type=chunk) [Properties](index=65&type=section&id=Item%202.%20PROPERTIES) The company leases all its office spaces, including its principal executive office in Bermuda and operational offices in North Carolina, Virginia, Arizona, and Georgia - The company leases office space in **Bermuda** (principal executive office), **Chapel Hill, NC**, **Raleigh, NC**, **Richmond, VA**, **Scottsdale, AZ**, and **Atlanta, GA**[433](index=433&type=chunk) [Legal Proceedings](index=65&type=section&id=Item%203.%20LEGAL%20PROCEEDINGS) The company is involved in various legal proceedings, including a purported class action lawsuit alleging inadequate disclosures concerning reserves for policies covering Rasier LLC - A purported class action lawsuit was filed on **July 9, 2021**, alleging claims under the Securities Exchange Act of 1934 for stock purchasers between **February 22, 2019, and October 25, 2021**[435](index=435&type=chunk) - The lawsuit alleges inadequate disclosures regarding reserves for policies covering **Rasier LLC**, a subsidiary of Uber Technologies, Inc., which the company believes are without merit and is defending[436](index=436&type=chunk) [Mine Safety Disclosure](index=66&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURE) The company reports that this item is not applicable - Not applicable[437](index=437&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=67&type=section&id=Item%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's common shares trade on NASDAQ under 'JRVR', with quarterly dividends reduced to $0.05 in 2022, and its 5-year cumulative total shareholder return underperformed benchmarks - Common shares trade on the **NASDAQ Global Select Market** under the symbol **'JRVR'**[440](index=440&type=chunk) - Quarterly dividends were reduced to **$0.05 per common share** in 2022, down from **$0.30 per share** in 2021, with future dividends restricted by **Series A Preferred Shares** terms[441](index=441&type=chunk)[442](index=442&type=chunk) 5-Year Cumulative Total Shareholder Return Comparison | Index | 12/17 | 12/18 | 12/19 | 12/20 | 12/21 | 12/22 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | James River Group Holdings, Ltd. | 100.00 | 94.24 | 109.21 | 134.01 | 81.37 | 59.57 | | Russell 2000 | 100.00 | 88.99 | 111.70 | 134.00 | 153.85 | 122.41 | | Peer Group | 100.00 | 101.66 | 127.68 | 128.75 | 157.48 | 183.25 | [Reserved](index=68&type=section&id=Item%206.%20%5BRESERVED%5D) This item is reserved - Item 6 is reserved[447](index=447&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=69&type=section&id=Item%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) In fiscal year 2022, the company's financial performance significantly improved with an underwriting profit of $49.6 million and a combined ratio of 93.5%, driven by reduced adverse prior year reserve development and strategic actions Financial Results Summary (2022 vs. 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Gross Written Premiums | $1,496.6M | $1,507.3M | | Net Earned Premiums | $766.2M | $695.6M | | Underwriting Profit (Loss) | $49.6M | ($256.9M) | | Net Income (Loss) Available to Common Shareholders | $22.2M | ($172.8M) | | Combined Ratio | 93.5% | 136.9% | | Loss Ratio | 68.5% | 113.9% | - The significant improvement in underwriting results was driven by a decrease in net adverse prior year reserve development to **$9.1 million** in 2022 from **$325.8 million** in 2021[527](index=527&type=chunk)[528](index=528&type=chunk) - Strategic actions in 2022 included issuing **$150 million in Series A Preferred Shares**, a **Loss Portfolio Transfer (LPT)** for the Casualty Reinsurance segment, and suspending new underwriting in that segment[514](index=514&type=chunk)[517](index=517&type=chunk)[522](index=522&type=chunk) - Net investment income increased **25.1% to $71.1 million** in 2022, primarily due to higher yields on fixed maturities and other investments in a rising interest rate environment[524](index=524&type=chunk)[557](index=557&type=chunk) - Tangible equity per share decreased by **14.4%** during 2022, reflecting a **$193.0 million unrealized loss** on fixed maturity investments and an increased share count from Series A Preferred Shares conversion[533](index=533&type=chunk)[643](index=643&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=103&type=section&id=Item%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risks are interest rate and equity price risks, with a hypothetical 100 basis point interest rate increase estimated to decrease fixed maturity fair value by 4.7% - The company's main market risks are **interest rate risk** from fixed maturity investments and **equity price risk** from stock investments[645](index=645&type=chunk) Interest Rate Sensitivity Analysis (as of Dec 31, 2022) | Financial Instrument | Estimated Fair Value (Millions) | Hypothetical Change | Estimated Fair Value after Change (Millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Fixed maturity & preferred stock | $1,854.2M | +100 bps | $1,766.7M | (4.7)% | | Fixed maturity & preferred stock | $1,854.2M | -100 bps | $1,941.9M | 4.7% | Equity Price Risk Sensitivity Analysis (as of Dec 31, 2022) | Financial Instrument | Estimated Fair Value (Millions) | Hypothetical Price Change | Estimated Fair Value after Change (Millions) | | :--- | :--- | :--- | :--- | | Equity securities - common stock | $47.8M | +35% | $64.5M | | Equity securities - common stock | $47.8M | -35% | $31.1M | [Financial Statements and Supplementary Data](index=104&type=section&id=Item%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section contains the report of the independent registered public accounting firm and the company's consolidated financial statements and schedules - The report includes the **Consolidated Financial Statements** and required **Financial Statement Schedules**, indexed on page F-1[657](index=657&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=104&type=section&id=Item%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - Not applicable[658](index=658&type=chunk) [Controls and Procedures](index=105&type=section&id=Item%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2022, with an unqualified opinion from Ernst & Young LLP - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures were effective** as of December 31, 2022[659](index=659&type=chunk) - Management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2022, based on the COSO framework[661](index=661&type=chunk) - Ernst & Young LLP issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting as of December 31, 2022[662](index=662&type=chunk) [Other Information](index=105&type=section&id=Item%209B.%20OTHER%20INFORMATION) The company reports no other information under this item - None[665](index=665&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=105&type=section&id=Item%209C.%20DISCLOSURE%20REGARDING%20FOREIGN%20JURISDICTIONS%20THAT%20PREVENT%20INSPECTIONS) The company reports that this item is not applicable - Not applicable[666](index=666&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=106&type=section&id=Item%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Information for this item will be incorporated by reference from the company's definitive Proxy Statement for the 2023 Annual General Meeting of Shareholders - Information is incorporated by reference from the **Proxy Statement for the 2023 Annual General Meeting of Shareholders**[668](index=668&type=chunk) [Executive Compensation](index=106&type=section&id=Item%2011.%20EXECUTIVE%20COMPENSATION) Information for this item will be incorporated by reference from the company's definitive Proxy Statement for the 2023 Annual General Meeting of Shareholders - Information is incorporated by reference from the **Proxy Statement for the 2023 Annual General Meeting of Shareholders**[669](index=669&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=106&type=section&id=Item%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Information for this item will be incorporated by reference from the company's definitive Proxy Statement for the 2023 Annual General Meeting of Shareholders - Information is incorporated by reference from the **Proxy Statement for the 2023 Annual General Meeting of Shareholders**[670](index=670&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=106&type=section&id=Item%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Information for this item will be incorporated by reference from the company's definitive Proxy Statement for the 2023 Annual General Meeting of Shareholders - Information is incorporated by reference from the **Proxy Statement for the 2023 Annual General Meeting of Shareholders**[671](index=671&type=chunk) [Principal Accountant Fees and Services](index=106&type=section&id=Item%2014.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Information for this item will be incorporated by reference from the company's definitive Proxy Statement for the 2023 Annual General Meeting of Shareholders - Information is incorporated by reference from the **Proxy Statement for the 2023 Annual General Meeting of Shareholders**[672](index=672&type=chunk) Part IV [Exhibit and Financial Statement Schedules](index=106&type=section&id=Item%2015.%20EXHIBIT%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section contains the index to the financial statements and schedules, along with a list of all exhibits filed with the Form 10-K - This item includes the **index to Financial Statements and Schedules**, found on page F-1 of the report[674](index=674&type=chunk) - A detailed list of **exhibits filed** with the report is provided, including corporate governance documents, material contracts, and certifications[676](index=676&type=chunk) [Form 10-K Summary](index=111&type=section&id=Item%2016.%20FORM%2010-K%20SUMMARY) The company reports that this item is not applicable - Not applicable[683](index=683&type=chunk)

Financial Data and Key Metrics Changes - The company reported a third quarter group combined ratio of 94.1%, and 91.5% excluding catastrophe losses, with an adjusted net operating return on tangible common equity of 17.5% for the quarter and 16% year-to-date [6][17] - The expense ratio for the quarter was 24.6%, reflecting strong cost management [6][20] - Net investment income grew 18% from the sequential quarter, totaling $17.3 million [20] Business Line Data and Key Metrics Changes - The E&S segment saw a gross premium decline of 5.9% year-over-year, but net written premium increased by 10.2% due to a midyear decision to increase net retention [9][10] - The combined ratio in the E&S segment was 88.2% for the third quarter, or 84.6% excluding catastrophes [11] - Specialty Admitted reported 1.8% growth in gross premium with a combined ratio of 98.4%, affected by a competitive workers' compensation market [14] - Casualty Reinsurance reported a combined ratio of 90.9% with $3 million of underwriting income [16] Market Data and Key Metrics Changes - E&S renewal rates increased by 8.4%, consistent with the previous year's positive rate change [7] - Year-to-date rate increases in the E&S segment exceeded 10%, with renewal rate increases compounding to 61.5% over the last 23 quarters [7][8] Company Strategy and Development Direction - The company is focused on underwriting profitability and disciplined risk management, with a strong emphasis on maintaining margins [6][17] - New underwriting directives and pricing strategies were introduced, particularly in large trucking and transportation risks [9] - The company aims to optimize its portfolio while significantly reducing its size in the Casualty Reinsurance segment [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market conditions and maintain strong margins despite recent underwriting actions [30][32] - The outlook for James River is considered strong, with ample capital to operate in the current environment and attractive investment opportunities [26][17] Other Important Information - The company executed a legacy commercial auto loss portfolio transfer transaction, which is expected to mitigate economic impacts from adverse claims trends [12][23] - The company ended the quarter with tangible common equity of $330 million and intangible equity of $475 million [22] Q&A Session Summary Question: Impact of non-renewing certain businesses on future quarters - Management indicated that the decision was based on maintaining strong margins and that the impact on future growth would be limited, with a good start in October [30][34] Question: Basis for non-renewal decisions - The decision was based on internal evaluations of loss trends and market conditions, with tactical adjustments made in response to identified loss drivers [35] Question: Current accident year loss ratio in E&S - Management clarified that the increase was due to mix rather than a change in loss picks [36] Question: Erosion in core loss ratios - The erosion in core loss ratios was attributed to mix and specific lines within the E&S and Specialty Admitted segments [38] Question: Elevated tax rate explanation - The elevated tax rate was explained as a result of losses in Bermuda and the complexity of income earned across different jurisdictions [47][49] Question: Opportunities for additional fronting arrangements - Management expressed confidence in growth opportunities through new programs and partnerships, despite a slowdown in growth rates [51]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%2E%20FINANCIAL%20INFORMATION) The first part presents the company's financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the period ended September 30, 2022, show increased total assets to **$5.21 billion** and liabilities to **$4.53 billion**, with net income of **$13.2 million** and decreased shareholders' equity to **$526.8 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$5,205,491** | **$4,948,550** | | Total Invested Assets | $2,176,033 | $2,130,485 | | Reinsurance recoverable on unpaid losses | $1,584,836 | $1,348,628 | | **Total Liabilities** | **$4,533,789** | **$4,223,188** | | Reserve for losses and loss adjustment expenses | $2,786,700 | $2,748,473 | | **Total Shareholders' Equity** | **$526,804** | **$725,362** | Condensed Consolidated Statement of Income (Loss) Highlights (in thousands) | Account | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Total Revenues | $587,983 | $565,540 | | Losses and loss adjustment expenses | $409,985 | $549,578 | | Total Expenses | $568,807 | $695,187 | | **Net (Loss) Income** | **$13,248** | **($106,506)** | | Net (Loss) Income available to common shareholders | $7,123 | ($106,506) | - Shareholders' equity decreased from **$725.4 million** at the end of 2021 to **$526.8 million** as of September 30, 2022, primarily due to a significant other comprehensive loss of **$205.2 million**, reflecting unrealized losses on investments[22](index=22&type=chunk) - Net cash provided by operating activities was **$168.1 million** for the nine months ended September 30, 2022, a stark contrast to the **$1.06 billion** used in the same period of 2021, heavily impacted by restricted cash and a loss portfolio transfer reinsurance transaction[26](index=26&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports a significant turnaround in underwriting performance with a **$33.0 million** profit, driven by lower adverse reserve development, despite negative impacts on the investment portfolio from rising interest rates Consolidated Results Summary (in thousands) | Metric | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Gross Written Premiums | $1,118,155 | $1,100,000 | | Net Earned Premiums | $566,275 | $503,906 | | Underwriting Profit (Loss) | $32,996 | ($179,183) | | Net (Loss) Income | $13,248 | ($106,506) | | Adjusted Net Operating Income (Loss) | $49,391 | ($116,780) | | **Combined Ratio** | **94.2%** | **135.6%** | - The company executed two significant loss portfolio transfers (LPTs): a Retrocession Agreement with Fortitude Re for the Casualty Reinsurance segment's reserves and a Commercial Auto LPT with Aleka Insurance for a legacy commercial auto portfolio[168](index=168&type=chunk)[169](index=169&type=chunk) - On March 1, 2022, the company issued **$150 million** of 7% Series A Perpetual Cumulative Convertible Preferred Shares to an affiliate of Gallatin Point Capital, strengthening its capital position[117](index=117&type=chunk)[164](index=164&type=chunk) - Rising interest rates and macroeconomic events negatively impacted the investment portfolio, resulting in a **$205.2 million** other comprehensive loss from unrealized losses on fixed maturity investments and **$29.9 million** in net realized and unrealized investment losses for the nine months ended September 30, 2022[163](index=163&type=chunk)[217](index=217&type=chunk)[220](index=220&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) For the nine months ended September 30, 2022, the company achieved an underwriting profit of **$33.0 million** and a combined ratio of **94.2%**, a significant improvement from the prior-year period due to reduced adverse prior-year reserve development - The loss ratio for the nine months ended September 30, 2022, improved dramatically to **68.7%** from **109.1%** in the prior year, with the 2021 period including **$210.8 million** (41.8 percentage points) of net adverse reserve development primarily from a canceled commercial auto account[171](index=171&type=chunk)[183](index=183&type=chunk) - The company experienced **$5.0 million** of net catastrophe losses related to Hurricane Ian in Q3 2022, comparable to the **$5.0 million** from Hurricane Ida in Q3 2021[172](index=172&type=chunk)[176](index=176&type=chunk) - Due to adverse loss trends on the legacy Rasier business, the company recognized **$46.7 million** of adverse development subject to the Commercial Auto LPT in Q3 2022, triggering retroactive reinsurance accounting and resulting in a net impact of a **$20.8 million** charge to losses and loss adjustment expenses for the quarter[76](index=76&type=chunk)[178](index=178&type=chunk) [Segment Results](index=42&type=section&id=Segment%20Results) For the first nine months of 2022, the Excess and Surplus Lines segment's combined ratio significantly improved to **85.3%**, while Specialty Admitted Insurance increased to **96.8%**, and Casualty Reinsurance improved to **103.6%** Combined Ratios by Segment (Nine Months Ended Sep 30) | Segment | 2022 | 2021 | | :--- | :--- | :--- | | Excess and Surplus Lines | 85.3% | 141.4% | | Specialty Admitted Insurance | 96.8% | 88.1% | | Casualty Reinsurance | 103.6% | 117.2% | | **Total** | **94.2%** | **135.6%** | - The Excess and Surplus Lines segment's nine-month 2021 results included **$190.7 million** of net adverse reserve development, primarily from a terminated commercial auto account, which did not recur in 2022[200](index=200&type=chunk) - The Casualty Reinsurance segment's 2022 results include an **$11.5 million** charge (11.2 points on the loss ratio) associated with the Loss Portfolio Transfer Retrocession Agreement[210](index=210&type=chunk) [Investing Results](index=45&type=section&id=Investing%20Results) Net investment income rose to **$48.3 million** for the nine months ended September 30, 2022, but overall investment results were negative due to **$29.9 million** in net realized and unrealized losses and a **$205.2 million** reduction in accumulated other comprehensive income from rising interest rates Net Investment Income by Source (Nine Months Ended, in thousands) | Source | 2022 | 2021 | | :--- | :--- | :--- | | Fixed maturity securities | $34,878 | $32,683 | | Bank loan participations | $8,432 | $8,230 | | Equity securities | $3,939 | $3,636 | | Other | $4,053 | $3,160 | | **Total Net Investment Income** | **$48,278** | **$44,726** | - The fair value of the fixed maturity securities portfolio was negatively impacted by rising interest rates, leading to unrealized losses recognized in other comprehensive income of **$205.2 million** for the nine months ended September 30, 2022[217](index=217&type=chunk) - The company recognized net realized and unrealized investment losses of **$29.9 million** in its income statement for the first nine months of 2022, compared to gains of **$13.7 million** in the same period of 2021[220](index=220&type=chunk)[221](index=221&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains solid liquidity with **$167.6 million** cash from operations and **$92.0 million** from financing activities, improving its leverage ratio to **22.8%** and maintaining an 'A-' (Excellent) A.M. Best rating - Cash provided by financing activities for the nine months ended September 30, 2022, was **$92.0 million**, primarily reflecting **$144.9 million** in net proceeds from the Series A Preferred Share issuance, offset by **$40.0 million** in debt repayments and **$12.0 million** in common and preferred dividends[234](index=234&type=chunk) - The company's leverage ratio decreased to **22.8%** at September 30, 2022, from **31.1%** at December 31, 2021, remaining comfortably below the maximum permitted ratio of **35.0%**[249](index=249&type=chunk) - The company's regulated insurance subsidiaries have a financial strength rating of **'A-' (Excellent)** with a stable outlook from A.M. Best[273](index=273&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate and equity price risks, with higher interest rates in 2022 leading to **$205.2 million** in unrealized losses on fixed maturity securities - The company's main market risks are interest rate risk for its fixed maturity investments and equity price risk for its equity securities[291](index=291&type=chunk) - For the nine months ended September 30, 2022, higher interest rates led to **$205.2 million** in unrealized losses on fixed maturity securities, which were recorded in other comprehensive loss[292](index=292&type=chunk) [Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) As of September 30, 2022, the company's CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2022[293](index=293&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended September 30, 2022[294](index=294&type=chunk) [PART II. OTHER INFORMATION](index=60&type=section&id=PART%20II.%20OTHER%20INFORMATION) The second part covers legal proceedings and risk factors [Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a class action lawsuit alleging inadequate disclosures regarding reserves for policies covering Rasier LLC, which the company intends to vigorously defend - A class action lawsuit alleges the company made inadequate disclosures concerning reserves for policies related to Rasier LLC (an Uber subsidiary)[297](index=297&type=chunk)[298](index=298&type=chunk) - The company believes the claims lack merit and is actively defending against the lawsuit, having filed a motion to dismiss the second amended complaint on October 24, 2022[297](index=297&type=chunk)[298](index=298&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) No material changes in the company's risk factors were reported for the quarter ended September 30, 2022 - No material changes to risk factors were reported for the quarter ended September 30, 2022[299](index=299&type=chunk)

```markdown [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and related notes for James River Group Holdings, Ltd. and its subsidiaries [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of James River Group Holdings, Ltd. and its subsidiaries, including balance sheets, statements of income (loss) and comprehensive (loss) income, statements of changes in shareholders' equity, and statements of cash flows, along with detailed notes on accounting policies, investments, reserves, and other financial disclosures for the periods ended June 30, 2022, and December 31, 2021 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric | June 30, 2022 (in thousands) | December 31, 2021 (in thousands) | Change (YoY) | | :-------------------------------- | :----------------------------- | :------------------------------- | :----------- | | Total Assets | $5,265,275 | $4,948,550 | +6.4% | | Total Liabilities | $4,525,991 | $4,223,188 | +7.2% | | Reserve for losses and loss adjustment expenses | $2,730,631 | $2,748,473 | -0.6% | | Total Shareholders' Equity | $594,386 | $725,362 | -18.0% | [Condensed Consolidated Statements of Income (Loss) and Comprehensive (Loss) Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)%20and%20Comprehensive%20(Loss)%20Income) | Metric | Three Months Ended June 30, 2022 (in thousands) | Three Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | | :------------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Gross written premiums | $399,714 | $380,146 | $759,650 | $753,401 | | Net earned premiums | $186,262 | $172,705 | $376,086 | $333,298 | | Net investment income | $14,705 | $14,348 | $30,972 | $29,437 | | Net realized and unrealized (losses) gains on investments | $(17,110) | $3,483 | $(22,120) | $9,755 | | Total revenues | $184,806 | $191,567 | $386,754 | $374,547 | | Losses and loss adjustment expenses | $121,369 | $110,000 | $256,977 | $383,500 | | Total expenses | $174,545 | $159,084 | $362,965 | $482,893 | | Income (loss) before taxes | $10,261 | $32,483 | $23,789 | $(108,346) | | Net income (loss) | $7,664 | $20,843 | $17,869 | $(82,617) | | Net income (loss) available to common shareholders | $5,039 | $20,843 | $14,369 | $(82,617) | | Basic EPS | $0.13 | $0.61 | $0.38 | $(2.54) | | Diluted EPS | $0.13 | $0.60 | $0.38 | $(2.54) | | Dividend declared per common share | $0.05 | $0.30 | $0.10 | $0.60 | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) | Metric | June 30, 2022 (in thousands) | December 31, 2021 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total Shareholders' Equity | $594,386 | $725,362 | | Common Shares Outstanding | 37,450,264 | 37,373,066 | | Additional Paid-in Capital | $865,081 | $862,040 | | Retained Deficit | $(156,109) | $(166,663) | | Accumulated Other Comprehensive (Loss) Income | $(114,593) | $29,978 | - The Company's **total shareholders' equity decreased from $725.4 million at December 31, 2021, to $594.4 million at June 30, 2022**, primarily due to a **significant accumulated other comprehensive loss of $114.6 million**, compared to an **income of $29.9 million at the end of 2021**[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity | Six Months Ended June 30, 2022 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | | :------------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | | Net cash provided by (used in) operating activities (excluding restricted cash equivalents) | $139,227 | $43,392 | | Net cash used in investing activities | $(75,060) | $(13,591) | | Net cash provided by financing activities | $96,450 | $168,870 | | Change in cash, cash equivalents, and restricted cash equivalents | $160,711 | $62,276 | | Cash, cash equivalents, and restricted cash equivalents at end of period | $452,839 | $1,084,456 | - **Cash provided by operating activities (excluding restricted cash equivalents) significantly increased to $139.2 million for the six months ended June 30, 2022, from $43.4 million in the prior year**, driven by growth in U.S. segments and faster premium collection[209](index=209&type=chunk) - **Net cash provided by financing activities decreased to $96.5 million in 2022 from $168.9 million in 2021**, primarily due to the **$144.9 million net proceeds from Series A Preferred Shares issuance in 2022**, compared to **$192.1 million from a common share public offering in 2021**[211](index=211&type=chunk)[212](index=212&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Accounting Policies](index=11&type=section&id=1.%20Accounting%20Policies) - The Company is a Bermuda-based exempted holding company focused on acquiring and managing insurance and reinsurance entities, operating through U.S.-based specialty insurance companies and Bermuda-based reinsurance companies[29](index=29&type=chunk)[32](index=32&type=chunk) - The condensed consolidated financial statements are prepared in accordance with **U.S. GAAP** for interim financial information, with all necessary adjustments included as normal recurring items[30](index=30&type=chunk) - The Company adopted **ASU 2020-06**, simplifying accounting for convertible debt instruments, concurrent with the Series A preferred shares issuance on March 1, 2022, with **no material impact** on financial position or results[37](index=37&type=chunk) [2. Investments](index=13&type=section&id=2.%20Investments) Fixed Maturity Securities, Available-for-Sale (in thousands) | Category | June 30, 2022 Fair Value | December 31, 2021 Fair Value | Gross Unrealized Losses (June 30, 2022) | | :------------------------------------------ | :------------------------- | :--------------------------- | :------------------------------------ | | State and municipal | $302,405 | $333,717 | $(38,898) | | Residential mortgage-backed | $290,555 | $246,631 | $(22,244) | | Corporate | $606,821 | $732,335 | $(49,860) | | Commercial mortgage and asset-backed | $322,204 | $304,488 | $(18,234) | | U.S. Treasury securities and obligations | $75,710 | $60,390 | $(2,866) | | **Total** | **$1,597,695** | **$1,677,561** | **$(132,102)** | - At June 30, 2022, the Company held fixed maturity securities with **$132.1 million in gross unrealized losses**, primarily market-driven due to rising interest rates, with **no credit-related impairments identified**[43](index=43&type=chunk)[45](index=45&type=chunk) Net Realized and Unrealized (Losses) Gains on Investments (in thousands) | Category | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months

Financial Data and Key Metrics Changes - The company reported a 91% combined ratio in Q2 and a 94.2% for the first half of the year, indicating strong financial performance [7] - Adjusted net operating return on tangible common equity was 19.9% for Q2 and 15.5% year-to-date, reflecting consistent underwriting profits [8][26] - Operating income increased approximately 44% from the previous quarter and over 6% from the same quarter last year [25] Business Line Data and Key Metrics Changes - In the E&S segment, gross premiums increased by 24.6% and net premiums grew by 22.8%, driven by a 14.1% positive renewal rate change [14] - The E&S combined ratio was 83.8%, with underwriting income of $22 million, marking the third consecutive quarter of segment underwriting profit greater than $20 million [19] - Specialty Admitted segment saw a decline in workers' compensation premiums by approximately 14% during Q2, while the remainder of the fronting and program business experienced solid growth [20][21] Market Data and Key Metrics Changes - The company has experienced renewal rate increases for 22 consecutive quarters, totaling 58.1% [12] - The excess and surplus lines marketplace continues to benefit from industry dislocation, leading to sustained pricing improvement [12] - Submission activity remains robust, particularly in the renewal portfolio, with a higher conversion ratio [15][59] Company Strategy and Development Direction - The company is focused on building out its enterprise risk management framework and optimizing portfolios to enhance profitability [6][10] - There is a strong emphasis on maintaining high renewal retention levels and producing positive rate changes well above loss cost trends [11][12] - The company aims to continue investing in its platform to generate attractive long-term returns for shareholders [23][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the near-term growth outlook, citing healthy market conditions and strong balance sheet [11] - The company anticipates that pricing momentum in the E&S sector will persist through at least the end of the year [13] - Management remains cautious about the workers' compensation market, particularly in California, where rates have softened [20][65] Other Important Information - The company reported cash flow from operations of $73.9 million for the quarter and approximately $140 million year-to-date [30] - Realized losses were about $17 million, primarily due to the senior secured bank loan portfolio [31] - The company ended the quarter with tangible common equity of $376.7 million, impacted by rising interest rates [32] Q&A Session Summary Question: Pricing and Loss Cost Trends - Management noted an increase in the view of loss cost trend for 2022, with mid-single-digit expectations and certain lines potentially higher [39] Question: Economic Conditions Impact on SME Clients - Despite broader macro concerns, insureds are experiencing solid economic fundamentals, with no negative trends observed [44] Question: Changes in New Money Yields - New money yields are approximately 100 basis points higher compared to the previous quarter [48] Question: Ceding Commission Rates - No significant changes in ceding commission rates were reported [49] Question: Growth in Excess Casualty - The company is a first excess player, with over 90% of limit profiles at $5 million or less, indicating a manageable tail risk [51] Question: Tax Rate Guidance - The effective tax rate is expected to be around 21% for the year, influenced by losses in Bermuda [56] Question: Submission Activity Trends - There has been a positive increase in renewal submissions, with a 16-point rise quarter-over-quarter [59] Question: Workers' Compensation Loss Picks - The company has been conservative in adjusting loss picks due to ongoing rate erosion in the California market [65]

James River Group Holdings Ltd (NASDAQ:JRVR) Q1 2022 Earnings Conference Call May 10, 2022 8:30 AM ET Company Participants Brett Shirreffs - IR Frank D’Orazio - CEO Sarah Doran - CFO Conference Call Participants Mark Hughes - Truist Securities Brian Meredith - UBS Meyer Shields - KBW Casey Alexander - Compass Point Operator Good day and thank you for standing by. Welcome to the James River Group Q1 2022 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being rec ...

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, 2022 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 oth ...

JAMES RIVER GROUP HOLDINGS, LTD. Strategic Actions Frequently Asked Questions February 28, 2022 Forward-Looking Statements This presentation contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forwardlooking statements may be identified by terms such as believe, expect, seek, may, will, intend, project, anticipate, plan, estimate, guidance or similar words. Forward-looking statements involve risks and uncertainties that cou ...

James River Group Holdings Ltd (NASDAQ:JRVR) Q4 2021 Earnings Conference Call March 1, 2022 8:30 AM ET Company Participants Brett Shirreffs - IR Frank D’Orazio - CEO Sarah Doran - CFO Conference Call Participants Cullen Johnson - B. Riley Securities Matthew Carletti - JMP Securities Mark Hughes - Truist Tracy Benguigui - Barclays Brian Meredith - UBS Meyer Shields - KBW Operator Good day, and thank you for standing by. Welcome to the James River Group Q4 2021 Earnings Conference Call. [Operator Instructions ...