James River (JRVR)2025-03-04 17:38Financial Data and Key Metrics Changes - The company reported an adjusted net operating loss of 0.99 per share for Q4 2024, and a net loss from continuing operations of 2.25 per share, largely due to two significant items announced in November [22][23] - The investment portfolio generated $93.1 million of net investment income from continuing operations, a 10.8% increase over 2023 [8] - The accident year combined ratio for the E&S segment was 91.8%, which would have been 89.3% excluding legacy structure purchases [11][25] Business Line Data and Key Metrics Changes - The E&S business grew by 2% in Q4, but excluding the excess casualty unit, growth would have been 11.2% across the remaining 14 underwriting divisions [14] - The Specialty Admitted segment generated a combined ratio of 95.3% for Q4 and 92.2% for the full year, with underwriting profit growth of 68.6% over the prior year [18][19] Market Data and Key Metrics Changes - Submission growth reached 9% for the quarter, with record highs in new and renewal submissions for the last four years [9][40] - The company experienced a positive renewal rate change of 9% in 2024, reflecting strong market momentum [12] Company Strategy and Development Direction - The company completed the divestiture of its Bermuda reinsurance operation and executed several transactions to focus on its insurance business [7] - A planned redomestication and improvements in technology and processes are expected to enhance organizational efficiency [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about profitability in 2024, while monitoring loss emergence as the accident year seasons [17] - The company anticipates a mid-teen operating return on tangible common equity for 2025, supported by a similar accident year loss ratio to 2024 [28] Other Important Information - The company did not experience any net losses due to California wildfires and maintains a conservative property stance [34] - The company acknowledged the retirement of Ollie Sherman from the Board and the election of Christine LaSala as the new Non-Executive Chairperson [49] Q&A Session Summary Question: What is the trend looking like for submission growth in 2025? - Management noted an increase in submissions and healthy growth across several divisions, with a reported 9% submission growth for the quarter [40][42] Question: Can you provide insights on the loss picks and trends? - Management indicated a slight increase in loss picks, primarily driven by excess casualty and general casualty, but overall loss trends remain in the low single-digit range [44]