James River (US:JRVR) Globenewswireยท2025-03-03 21:30Core Viewpoint - James River Group Holdings, Ltd. reported significant financial losses in Q4 2024, primarily due to strategic reinsurance contracts and adjustments related to preferred shares, while expressing optimism for growth opportunities in 2025 within the Excess and Surplus (E&S) market [1][2]. Financial Performance - The net loss from continuing operations available to common shareholders was $92.7 million, translating to a loss of $2.25 per diluted share, compared to a profit of $17.4 million or $0.46 per diluted share in Q4 2023 [1]. - Adjusted net operating loss was $40.8 million, or $0.99 per diluted share, down from a profit of $12.4 million, or $0.33 per diluted share, in the same quarter of the previous year [1][2]. - The total revenues for Q4 2024 were $126.7 million, a decrease from $218.1 million in Q4 2023 [28]. Premiums and Underwriting - Gross written premiums for Q4 2024 totaled $358.3 million, an 8% decline from $389.3 million in Q4 2023 [5]. - The E&S segment reported gross written premiums exceeding $1.0 billion for the second consecutive year, with a slight increase compared to the previous year [4]. - The Specialty Admitted Insurance segment saw a gross written premium decline of 31.7% in Q4 2024 compared to the prior year quarter [7]. Investment Income - Net investment income for Q4 2024 was $22.0 million, a decrease of 14.2% from $25.6 million in Q4 2023, primarily due to a lower asset base [9][10]. - The annualized gross investment yield on average fixed maturity, bank loan, and equity securities was 4.7%, slightly down from 4.8% in the prior year [10]. Strategic Actions - The company completed several strategic actions in 2024, including the sale of JRG Reinsurance Company Ltd. and entering into a $160 million loss portfolio transfer and adverse development cover for its E&S business [4]. - A new strategic partnership with Enstar was initiated, involving a $12.5 million equity investment and an additional $75 million E&S Top Up ADC [4]. Shareholder Equity - Shareholders' equity per share decreased to $10.10 at the end of Q4 2024 from $14.02 at the end of Q3 2024, reflecting the net loss from continuing operations and an increase in common shares outstanding [4][16]. - The company declared a cash dividend of $0.01 per common share, payable on March 31, 2025 [12]. Management Changes - The company announced the retirement of Non-Executive Chairman Ollie L. Sherman Jr., with Christine LaSala appointed as the new Non-Executive Chairperson [17][18].