James River (US:JRVR)2025-05-06 20:17Financial Performance - For the three months ended March 31, 2025, net cash used in operating activities was $(51.5) million, compared to $24.1 million in the same period of 2024, indicating a significant decline in operational cash flow[25]. - The company reported net income from continuing operations of $10,988,000 for the three months ended March 31, 2025, compared to $23,508,000 for the same period in 2024, representing a decrease of 53.3%[73]. - Total segment revenues for the three months ended March 31, 2025, were $172.289 million, compared to $201.127 million in 2024, indicating a decrease of approximately 14.3%[110]. - The underwriting profit for the Excess and Surplus Lines segment was $11.658 million, down from $18.491 million in the prior year[110]. - The Company reported income from continuing operations before income taxes of $16.009 million for the three months ended March 31, 2025, down from $32.960 million in 2024[110]. Cash Flow and Investments - The company reported net cash used in investing activities of $(53.0) million for the three months ended March 31, 2025, compared to $47.5 million provided in the same period of 2024[25]. - Cash, cash equivalents, and restricted cash equivalents at the end of the period were $308.4 million, down from $426.1 million at the end of the same period in 2024[25]. - The Company’s total other invested assets increased to $52,768,000 as of March 31, 2025, compared to $36,700,000 at December 31, 2024, reflecting a growth of 43.7%[68]. - The Company plans to invest $75.0 million in collateralized investment grade notes receivable for structured private specialty credit through its Excess and Surplus Lines segment[160]. Debt and Financing - Senior debt issuances amounted to $25.0 million during the three months ended March 31, 2025, contributing to net cash provided by financing activities of $21.9 million[25]. - The Company had a drawn balance of $210.8 million outstanding on its unsecured revolving credit facility as of March 31, 2025[113]. - The fair value of senior debt increased to $226,366,000 as of March 31, 2025, compared to $201,787,000 at December 31, 2024, marking an increase of approximately 12.2%[129]. Securities and Investments - As of March 31, 2025, the fair value of the Company's available-for-sale fixed maturity securities was $1.259 billion, with gross unrealized losses amounting to $74.720 million[51]. - The amortized cost of available-for-sale fixed maturity securities was $1.330 billion as of March 31, 2025[51]. - The Company held fixed maturity securities of 420 issuers in an unrealized loss position with a total fair value of $947.516 million and gross unrealized losses of $74.720 million as of March 31, 2025[53]. - The Company reported no credit-related impairments for fixed maturity securities at March 31, 2025, December 31, 2024, or March 31, 2024[55]. - The total equity securities held increased to $87,746,000 as of March 31, 2025, compared to $86,479,000 at December 31, 2024, reflecting a rise of about 1.5%[128]. Losses and Reserves - The reserve for losses and loss adjustment expenses net of reinsurance recoverables increased to $1,095,761,000 at the end of March 2025, up from $1,086,278,000 at the beginning of the period[77]. - The Company incurred losses and loss adjustment expenses of $99.525 million for the three months ended March 31, 2025, compared to $110.049 million in 2024[108]. - The Company experienced $131,000 of net favorable reserve development in the three months ended March 31, 2025, compared to $398,000 in the same period of 2024[78]. Discontinued Operations - For the three months ended March 31, 2025, total revenues from discontinued operations were $10.274 million, while total expenses were $18.207 million, resulting in a loss from discontinued operations of $7.933 million[49]. - The net cash provided by discontinued operations was $33.974 million for the three months ended March 31, 2024, compared to net cash used in operating activities of $(24.411) million for the same period in 2025[49]. Legal and Regulatory Matters - The company is involved in various legal proceedings, but believes that the outcomes are not likely to materially affect its financial position or operations[92]. Shareholder Information - The Company declared a cash dividend of $0.01 per common share on April 24, 2025, payable on June 30, 2025, to shareholders of record on June 9, 2025[163]. - Cash dividends of $2.0 million were paid on the Series A Preferred Shares in the three months ended March 31, 2025[146]. - The total common shares outstanding increased from 45,644,318 at December 31, 2024, to 45,892,706 at March 31, 2025, reflecting an issuance of 248,388 common shares related to vesting of RSUs[148]. Market Risks - The company has primary market risks related to interest rate risk from fixed maturities and equity price risk from equity securities investments[297]. - There is no material exposure to foreign currency exchange rate risk or commodity risk[297]. - No significant changes in market risk have been reported since the Annual Report for the year ended December 31, 2024[298].