James River Announces Second Quarter 2025 Results

Core Insights - James River Group Holdings reported a net income from continuing operations of $3.2 million ($0.07 per diluted share) for Q2 2025, a significant decrease from $11.9 million ($0.31 per diluted share) in Q2 2024 [1][2] - The adjusted net operating income for the same period was $11.7 million ($0.23 per diluted share), down from $12.7 million ($0.33 per diluted share) year-over-year [1][2] - The company emphasized its strategic focus on growing its casualty E&S business through disciplined underwriting and expense management [3] Financial Performance - The total gross written premium for Q2 2025 was $378.0 million, a decrease of 8% from $412.2 million in Q2 2024 [6] - The E&S segment achieved a combined ratio of 91.7%, with a renewal rate change of 13.9%, driven by price increases across most divisions [5][29] - The Specialty Admitted Insurance segment saw a gross written premium decline of 30.7% compared to the prior year quarter [5][32] Investment Results - Net investment income for Q2 2025 was $20.5 million, slightly up from $20.0 million in the previous quarter but down 17.7% from $24.9 million in Q2 2024 [7][9] - The annualized gross investment yield was 4.6%, consistent with the previous quarter but lower than 5.0% in Q2 2024 [9] Capital Management - The Board of Directors declared a cash dividend of $0.01 per common share, payable on September 30, 2025 [11] - Tangible common equity increased by 12.8% to $343.7 million as of June 30, 2025, compared to $304.6 million at the end of 2024 [12] Segment Highlights - The E&S segment reported a premium growth of 3%, with a notable increase in renewal rates, particularly in excess casualty, which saw over 24% growth [5][29] - The Specialty Admitted Insurance segment's gross written premium declined significantly, reflecting a strategic decision to manage risk in a challenging market [5][32] Operational Efficiency - The consolidated expense ratio improved to 30.5% from 32.7% in the prior quarter, driven by reduced general and administrative expenses [8][12] - The company reported a year-to-date growth in tangible common equity of 12.8% [12]