James River (US:JRVR)2025-11-04 21:09Financial Performance - For the nine months ended September 30, 2025, net cash provided by operating activities was $8.01 million, a significant improvement from $(254.55) million in the same period of 2024[28]. - The company reported a net cash used in investing activities of $(146.42) million for the nine months ended September 30, 2025, compared to $321.37 million in 2024[28]. - Cash provided by operating activities, excluding restricted cash activity, was $7.1 million for the nine months ended September 30, 2025, compared to $(210.5) million in 2024[28]. - The company reported interest paid of $19.19 million for the nine months ended September 30, 2025, down from $22.43 million in 2024[28]. - For the three months ended September 30, 2025, the net income from continuing operations was $1.593 million, compared to a loss of $38.077 million in the same period of 2024[78]. - The basic earnings per share (EPS) for continuing operations was $(0.01) for Q3 2025, compared to $(1.07) for Q3 2024[78]. - The company reported a total comprehensive income of $11,743,000 for the three months ended September 30, 2025, compared to $31,056,000 for the same period in 2024[97]. Investment Activities - The company completed the sale of JRG Re, resulting in an aggregate consideration of approximately $291.4 million, with $152.4 million paid in cash and $139 million as a dividend from contributed surplus[47]. - The company’s investments related to variable interest entities totaled $7.3 million at September 30, 2025, compared to $7.7 million at December 31, 2024[39]. - The company has outstanding commitments to invest an additional $59.2 million in collateralized investment grade notes receivable for structured private specialty credit as of September 30, 2025[74]. - The company’s investments in limited partnerships increased to $18,600,000 as of September 30, 2025, up from $15,108,000 as of December 31, 2024, reflecting a strategic focus on diversified investment portfolios[71]. - The company recognized net realized and unrealized losses on bank loan participations of $(1.9) million for the nine months ended September 30, 2025, compared to $(3.1) million in the prior year[62]. Debt and Financing - Senior debt issuances amounted to $25 million in 2025, while senior debt repayments were $21.5 million in 2024[28]. - The company entered into a new Credit Agreement on June 12, 2025, replacing the previous agreement, which provided for a $212.5 million unsecured revolving credit facility[121]. - The Company has a $212.5 million unsecured revolving credit facility maturing on June 12, 2028, with interest rates based on the Secured Overnight Financing Rate (SOFR) plus a margin based on the Company's Leverage Ratio[122]. - As of September 30, 2025, the drawn balance on the unsecured revolver was $210.8 million, including $25.0 million borrowed under the Previous Credit Agreement[123]. - The Company was in compliance with financial covenants, including a maximum leverage ratio and minimum consolidated net worth, as of September 30, 2025[125]. Assets and Securities - The cash, cash equivalents, and restricted cash equivalents at the end of the period were $268.38 million, down from $388.14 million in 2024[28]. - As of September 30, 2025, the fair value of available-for-sale fixed maturity securities was $1.391875 billion, with gross unrealized losses amounting to $58.992 million[55]. - The total fixed maturity securities available-for-sale increased from $1.189733 billion on December 31, 2024, to $1.391875 billion on September 30, 2025[55]. - The carrying value of fixed maturity securities increased from $1,189,733,000 as of December 31, 2024, to $1,391,875,000 as of September 30, 2025[141]. - The total fair value of equity securities as of September 30, 2025, was $88,791,000, with $77,197,000 classified as Level 2 inputs[132]. Losses and Reserves - The company incurred total losses and loss adjustment expenses of $333.67 million for the nine months ended September 30, 2025, down from $409.814 million for the same period in 2024[82]. - The reserve for losses and loss adjustment expenses net of reinsurance recoverables at the end of Q3 2025 was $1.087 billion, an increase from $1.061 billion at the end of Q3 2024[82]. - The company experienced $2.6 million of net favorable reserve development in Q3 2025, contrasting with $56.9 million of net adverse reserve development in Q3 2024[83][84]. - The cumulative amounts ceded under the Commercial Auto Loss Portfolio Transfer were $458.0 million as of September 30, 2025[89]. - The adverse prior year development ceded on subject business for the three months ended September 30, 2025, was $24,462,000, compared to $20,158,000 for the same period in 2024[96]. Dividends and Shareholder Equity - The Company paid cash dividends of $5.9 million and $10.5 million on Series A Preferred Shares for the nine months ended September 30, 2025 and 2024, respectively[147]. - The Company declared total dividends of $1.43 million on common shares during the first nine months of 2025, compared to $5.82 million in the same period of 2024[158]. - The dividend rate for Series A Preferred Shares will reset on October 1, 2029, to the five-year U.S. treasury rate plus 5.2%, capped at 8.0%[147]. - The total balance of collateral securing Rasier's obligations under the Indemnity Agreements was $43,500,000 as of September 30, 2025[106]. - The total reinsurance recoverables under the Commercial Auto LPT amounted to $20,300,000 as of September 30, 2025[106]. Market Risks - The primary market risks identified include interest rate risk associated with investments in fixed maturities and equity price risk associated with investments in equity securities[306]. - There have been no material changes in market risk from the previous annual report for the year ended December 31, 2024[307].