James River (JRVR) - 2024 Q4 - Annual Results

Financial Performance - Net loss from continuing operations available to common shareholders was $92.7 million ($2.25 per diluted share) for Q4 2024, compared to a profit of $17.4 million ($0.46 per diluted share) in Q4 2023[1] - Adjusted net operating loss was $40.8 million ($0.99 per diluted share) for Q4 2024, compared to an adjusted profit of $12.4 million ($0.33 per diluted share) in Q4 2023[1] - Total revenues for Q4 2024 were $126.7 million, a decline of 42.0% compared to $218.1 million in Q4 2023[31] - Net loss for Q4 2024 was $64.8 million, compared to a net loss of $150.2 million in Q4 2023[31] - Adjusted net operating loss for Q4 2024 was $40.8 million, compared to an adjusted net operating income of $12.4 million in Q4 2023[31] - The total underwriting loss for the company was $(58,147) thousand in Q4 2024, compared to a profit of $3,465 thousand in Q4 2023[46] Premiums and Underwriting - Gross written premium for Q4 2024 was $358.3 million, an 8% decrease from $389.3 million in Q4 2023, with Excess and Surplus Lines contributing $280.3 million, a 2% increase year-over-year[4] - Net written premium decreased by 34% to $114.0 million in Q4 2024, down from $172.2 million in Q4 2023, primarily due to a 32% decline in Excess and Surplus Lines[4] - In the Excess and Surplus Lines segment, net earned premiums decreased by 43.3% to $87.3 million in Q4 2024 from $153.9 million in Q4 2023[39] - The Specialty Admitted Insurance segment reported a 31.7% decline in gross written premiums to $78.0 million in Q4 2024 from $114.1 million in Q4 2023[41] Ratios and Losses - The loss ratio for Q4 2024 increased to 111.4%, up from 73.9% in Q4 2023[31] - The combined ratio for Q4 2024 was 155.1%, significantly higher than 98.1% in Q4 2023[31] - The loss ratio for Excess and Surplus Lines was 118.4% for Q4 2024, significantly higher than 73.2% in Q4 2023, while the combined ratio increased to 159.8% from 94.2% year-over-year[44] - The consolidated loss ratio for Q4 2024 was 111.4%, compared to 73.9% in Q4 2023, with a combined ratio of 155.1%, up from 98.1% in the same period last year[44] Equity and Assets - Shareholders' equity per share decreased to $10.10 at December 31, 2024, down from $14.02 at September 30, 2024, due to net losses and an increase in common shares outstanding[5] - Total assets decreased from $5,317,250 thousand in 2023 to $5,007,076 thousand in 2024, a decline of approximately 5.8%[27] - Total liabilities decreased from $4,637,731 thousand in 2023 to $4,413,046 thousand in 2024, a decline of approximately 4.9%[27] - Tangible equity decreased from $485,608 thousand in 2023 to $437,719 thousand in 2024, a decline of approximately 9.8%[27] - Tangible equity per share decreased from $11.13 in 2023 to $7.40 in 2024, a decline of approximately 33.0%[27] - Common shares outstanding increased from 37,641,563 in 2023 to 45,644,318 in 2024, an increase of approximately 21.3%[27] - Cash dividends declared per common share decreased to $0.01 in Q4 2024 from $0.05 in Q4 2023[31] Investment and Strategic Actions - Full year 2024 net investment income increased by 10.8% compared to 2023, with the Specialty Admitted Insurance segment's combined ratio improving to 92.2% from 95.9% in the prior year[5] - The Company completed a $160 million loss portfolio transfer and adverse development cover for its E&S business, and entered a strategic partnership with Enstar involving a $12.5 million equity investment[2] - The company reported a loss from discontinued operations of $1,372 thousand in Q4 2024, compared to a gain of $170,211 thousand in Q4 2023[49] Reinsurance and Reserves - Reserve for losses and loss adjustment expenses increased from $2,606,107 thousand in 2023 to $3,084,406 thousand in 2024, an increase of approximately 18.3%[27] - Reinsurance recoverable on unpaid losses increased from $1,358,474 thousand in 2023 to $1,996,913 thousand in 2024, an increase of approximately 47.0%[27] - The impact of retroactive reinsurance on the loss ratio was 30.9% for Q4 2024, compared to (0.8)% in Q4 2023, indicating a significant change in reinsurance effects[44] Company Overview - The company operates in two specialty property-casualty insurance segments: Excess and Surplus Lines and Specialty Admitted Insurance[26] - Each of the company's regulated insurance subsidiaries are rated "A-" (Excellent) by A.M. Best Company[26]