James River (US:JRVR)2025-11-03 21:05Financial 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]