Core Insights - James River Group reported Q2 2025 Non-GAAP earnings per share of $0.23, meeting analyst expectations, while GAAP revenue was $152.6 million, slightly below the consensus estimate of $153.65 million [1] - The company experienced record new business in its core Excess & Surplus (E&S) segment, but overall profit metrics declined due to lower performance in the Specialty Admitted segment [1] Financial Performance - Non-GAAP EPS for Q2 2025 was $0.23, down 30.3% from $0.33 in Q2 2024 [2] - GAAP revenue was $174.8 million, with net earned premiums at $152.6 million, a decrease of 6.5% from $163.2 million in Q2 2024 [2] - Net investment income fell 17.7% to $20.5 million compared to $24.9 million a year ago [2] - The combined ratio improved to 98.6%, down from 99.3% year-over-year [2] Business Segments - The E&S segment saw gross written premiums of $300.4 million, a 3% increase year-over-year, with a renewal rate of 13.9% [5] - Underwriting performance in E&S improved, with a combined ratio of 91.7%, down from 95.4% a year ago, and underwriting profit surged 82% to $11.7 million [6] - The Specialty Admitted segment experienced a significant decline, with gross written premiums dropping 35% to $77.6 million and a combined ratio of 112.6%, indicating underwriting losses [7] Strategic Focus - The company is concentrating on strengthening its E&S franchise, investing in underwriting tools, and managing expenses in less profitable lines [4] - Management emphasized ongoing pricing discipline and operational efficiency to enhance profitability [6] - The decline in the Specialty Admitted segment is a strategic decision to minimize risk exposure [13] Investment and Reserves - Investment income decreased due to a smaller investment base, with net realized and unrealized investment losses of $0.4 million [8] - Adverse reserve development was $3.0 million, down from $10.7 million a year ago, indicating improved risk management [12] Future Outlook - Management did not provide specific guidance for future revenue or earnings but reiterated a commitment to E&S growth and expense control [14] - Key areas to monitor include E&S growth sustainability, reserve development, and potential changes in dividend policy [15]