JRVR

Interested in James River Group Holdings, Ltd.? Here are five stocks we like better. Second-quarter net income rose to $4.4 million from $2.8 million year over year, but operating earnings fell to $10 million, or $0.20 per diluted share. The consolidated combined ratio was 100.2%, while the E&S segment improved to 92.8%. James River is prioritizing profitable E&S growth amid increased competition and pricing pressure, focusing on smaller insureds and opportunities in professional liability, allied health, energy, environmental and small-business lines. Submissions increased 4%, though average account premiums dropped 22.9% as the company shifted toward smaller accounts. Cost reductions and reserve improvements continued: Specialty Admitted expenses fell more than 40%, general and administrative costs declined 7%, and adverse reserve development was less than $1 million versus $3 million a year earlier. Net investment income remained stable at $20.3 million, supported by a largely high-grade fixed-income portfolio. Don't Overlook Hidden Gem Kinsale As Rallies To New Highs James River Group (NASDAQ:JRVR) reported second-quarter 2026 net income available to common shareholders of $4.4 million, up from $2.8 million a year earlier, while operating earnings declined to $10 million, or $0.20 per diluted share, from $11.7 million, or $0.23 per share, in the prior-year quarter. The insurer’s consolidated combined ratio was 100.2% for the quarter, including a 66.3% loss ratio and a 33.9% expense ratio. Its Excess and Surplus Lines, or E&S, segment posted a 92.8% combined ratio, improving from 96.5% in the first quarter. Chief Executive Officer Frank D’Orazio said the prior quarter had been affected by “unique legacy reinsurance dynamics.” → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat James River Group Stock is Worth Taking a Closer Look D’Orazio said the company continues to prioritize underwriting profitability as property and casualty market conditions evolve. He said increased capacity has entered portions of the E&S market through managing general agents, or MGAs, and newer market participants. Property markets remain marked by ample capacity and heightened price competition, according to D’Orazio. Casualty conditions have been more mixed, with social inflation and elevated loss severity pressuring several classes while still providing rate opportunities in excess casualty and certain specialty lines. → 3 Dividend Champion Utilities for a Market That Can't Sit Still James River said it remains focused on smaller insureds, citing its historical experience with profitability and retention in that part of the market. The company reported a 4% increase in submissions across active divisions, while 10 of its 13 underwriting divisions quoted more business than a year earlier. Quotes for new business also rose 4%. However, the company’s average account premium fell 22.9% from the second quarter of 2025, reflecting a shift toward smaller insureds. D’Orazio said the company sees potentially profitable growth opportunities in professional liability, allied health, energy, environmental lines and small business, while continuing to seek rate increases in excess casualty. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War James River is also deploying an AI-enabled underwriting workbench. Initial tools are being used in areas including excess casualty and small business, with the goal of improving underwriting efficiency, quote responsiveness and submission selection, management said. Management attributed lower E&S written premium partly to deliberate portfolio actions and several nonrecurring factors. The decision to place the contract binding department into runoff and to non-renew certain tract-housing exposures in its manufacturers and contractors division removed nearly $10 million of renewable premium from the quarter and about $25 million from the portfolio over the past year. Renewal timing shifts and a nonrecurring energy project accounted for more than $16 million of gross written premiums that did not fall into the quarter. Combined with the runoff and non-renewal decisions, these items represented about $26 million of gross written premium impact relative to the prior year, D’Orazio said. During the quarter, portfolio rate change moderated to about 3%, compared with a higher single-digit rate increase in the first quarter. D’Orazio said competition was especially evident in excess property and general casualty, where MGAs, fronted facilities, other E&S carriers and newer entrants have increased pressure on pricing and policy terms. The company continued to reduce its Specialty Admitted segment, citing competitive conditions in the fronting and admitted insurance markets. James River has reduced the segment’s expense base by more than 40% during the year, D’Orazio said, while cutting net exposures and keeping only fewer than a handful of active programs. Chief Financial Officer Sarah Doran said the business now primarily contributes through net investment income rather than underwriting results. The capital supporting Specialty Admitted contributes roughly 25% of James River’s overall net investment income, D’Orazio said. General and administrative expenses fell $2.5 million, or 7%, from the prior-year quarter and declined 9% in the first half. The reductions were driven mainly by Specialty Admitted and corporate operations, where expenses declined 39% and 9%, respectively. Doran said lower compensation-related costs and organizational efficiencies accounted for the largest share of savings. “There’s nothing exceptional in this quarter,” Doran said in response to a question on expenses, adding that management continues to manage costs and is “not finished” with its efficiency efforts. James River recorded less than $1 million of net adverse reserve development, compared with $3 million in the prior-year quarter. The development came largely from the product liability book and primarily related to accident years 2020 through 2022, management said. During the quarter, the company ceded the remaining $7.5 million of development to its E&S top-up adverse development cover for accident years 2010 through 2023. D’Orazio said legacy reinsurance structures have allowed James River to bolster its reserve base by about $235 million over roughly two years. Management said recent accident years have continued to show improved performance. For the 2024 underwriting year, which is now 30 months on the development triangle, claim counts were down 23% and the incurred loss ratio was down 34% for the comparable period, D’Orazio said. James River reported $1.05 billion in total net reserves, including $950 million related to E&S operations. More than $800 million of those reserves relate to accident years 2024 through 2026, according to Doran. Net investment income was $20.3 million, roughly unchanged from a year earlier. About 75% of invested assets and cash were held in high-grade fixed-income securities, with an average duration of 3.6 years and average credit quality of A+. Tangible common book value per share rose slightly from the beginning of the year to $9.01. James River Group Holdings, Ltd., through its subsidiaries, underwrites property and casualty insurance products primarily in the program, wholesale broker and retail broker markets. The company focuses on specialty P&C lines, offering binding authority and delegated underwriting solutions for niche sectors including professional liability, environmental, real estate and other tailored commercial risks. Operating under the James River brand, it provides both admitted and non-admitted insurance across multiple states. Founded in 2014 and headquartered in Richmond, Virginia, James River Group has expanded through a combination of organic growth and strategic acquisitions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "James River Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management emphasized a shift in strategy toward targeting smaller account premiums (SME), which historically offer a double-digit spread in loss ratio points compared to more competitive upper-middle market accounts. The 92.8% E&S combined ratio reflects intentional portfolio management, including walking away from business that does not meet profitability expectations in a softening property market. Significant downsizing of the specialty admitted segment and a reduction in fronting activity drove a 9-point increase in net premium retention to 55%. Operational efficiency improved through a 9% year-to-date reduction in G&A expenses, primarily achieved by removing 40% of the expense base from the specialty admitted segment. Management attributed the decline in gross written premium to deliberate appetite changes, including the runoff of contract binding and non-renewal of certain tract housing exposures. The implementation of an AI-enabled underwriting workbench in excess casualty and small business units is intended to improve quote responsiveness and focus on high-appetite submissions. Casualty market conditions are described as nuanced, with social inflation and severity creating pressure, while competition from MGAs and new entrants is notably pronounced in general casualty. Future growth is expected to be driven by the specialty division, specifically professional liability, allied health, energy, and environmental lines where historical margins remain attractive. Management anticipates continued rate push opportunities in excess casualty to offset competitive headwinds in other general casualty and property lines. The specialty admitted segment will be managed as a capital-light platform in runoff, primarily serving as a contributor to net investment income rather than underwriting growth. Expense management remains an active and ongoing effort, with management indicating they are not finished with cost-reduction initiatives despite recent progress. The company expects the shift toward smaller accounts to initially manifest as increased submission and quote activity before translating into meaningful premium growth. The company exhausted the remaining $7.5 million of its E&S top-up adverse development cover, primarily due to legacy product liability issues from the 2020-2022 accident years. Management highlighted a clear demarcation in performance for recent accident years, noting that the 2024 year shows a 23% decrease in claim counts and a 34% improvement in incurred loss ratios. A one-time timing dynamic and a non-recurring energy project impacted gross written premiums by over $60 million during the quarter. The November 2025 redomicile continues to provide lasting expense benefits, contributing to an effective tax rate of 21.8% compared to over 30% in the prior year period. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Frank D’Orazio noted that while rate changes moderated to 3% in Q2 from high single digits in Q1, submission activity remains up 4%. Management is intentionally trading volume for margin by avoiding the 'aggressive' MGA competition currently prevalent in Southeast general casualty and excess property markets. Sarah Doran clarified that roughly 85% of the $950 million in E&S reserves now relate to the 2024-2026 accident years., which are performing significantly better than legacy years. The ADC provided $235 million in total protection over two years; management believes the current $1.05 billion total reserve base is adequate following internal and external reviews. The segment has been reduced from dozens of programs to less than five active programs to minimize net exposure. Management views the segment as a source of investment income, contributing 25% of total NII, which they believe justifies the small underwriting losses during the runoff phase.

CHAPEL HILL, N.C., Aug. 10, 2026 (GLOBE NEWSWIRE) -- James River Group Holdings, Inc. ("James River" or the "Company") (NASDAQ: JRVR) today reported the following results for the second quarter of 2026 as compared to the same period in 2025: Unless specified otherwise, all underwriting performance ratios presented herein are for our continuing operations and business not subject to retroactive reinsurance accounting. Second Quarter 2026 Highlights: Net income available to common shareholders of $4.4 million, an increase of 59% compared to the prior year quarter. Tangible common equity2 per share of $9.01, an increase of 1% compared to December 31, 2025 and 9.8% adjusted net operating return on tangible common equity. Excess and Surplus Lines ("E&S”) combined ratio of 92.8%, expense ratio of 27.4%, and loss ratio of 65.4%. General and administrative expenses declined by 9% in the first half of 2026 compared to the first half of 2025, notably in the Specialty Admitted (down 42%) and Corporate (down 12%) segments. Specialty Admitted Insurance segment gross written premium, of which only a minority of net written premium is retained, has declined as the Company has deliberately reduced its exposure to the fronting business in view of comparably more attractive opportunities in E&S. Segment expenses have also been meaningfully reduced. Partly due to this dynamic, premium retention across the group is 55% this quarter, an increase compared to 47% in the prior year quarter. Frank D'Orazio, the Company’s Chief Executive Officer, commented, "Our second quarter results reflect progress as we execute against our key priorities. We continue to see meaningful growth in submissions and quotes, creating attractive opportunities across targeted areas of our core casualty and specialty divisions. Amid today's competitive E&S backdrop, we remain committed to our disciplined approach of putting capital to work. Our primary focus is on cautious risk selection, expense management, and operating efficiency enabled by innovation to deliver returns for our shareholders.” Second Quarter 2026 Operating Results Gross written premium of $268.9 million, consisting of the following: Net written premium of $148.4 million, consisting of the following: Net earned premium of $139.0 million, consisting of the following: Pre-tax net adverse reserve development by segment on business not subject to retroactive reinsurance accounting was as follows: The Company experienced de minimis net adverse reserve development in each of the two insurance segments and utilized the remaining $7.5 million of aggregate limit on the adverse development reinsurance contract with Cavello Bay ("E&S Top Up ADC"). The Company continues to observe lower frequency and incurred losses in its more recent accident years following the significant underwriting changes made to its portfolio during that time. In the second quarter of 2026, the Company reduced general and administrative expenses by 7% as compared to the prior year quarter, notably in the Specialty Admitted (down 39%) and Corporate (down 9%) segments. Investment Results Net investment income for the second quarter of 2026 was $20.3 million, largely flat to the $20.5 million of the prior year quarter. Private investment income of $0.3 million was $0.7 million less than that of the prior year period, largely driven by a sizable prior year return from one private investment. Fixed income securities, which represent the majority of the Company's invested assets and cash, generated higher net investment income compared to the prior year period. The fixed income portfolio continues to benefit from the increase in higher-yielding "A" rated structured securities added to the portfolio in the second half of 2025. The Company’s net investment income consisted of the following: The Company’s annualized gross investment yield on average fixed maturity, bank loan and equity securities for the three months ended June 30, 2026 was 4.6% (versus 4.6% for the three months ended June 30, 2025). Net realized and unrealized gains on investments of $1.0 million for the three months ended June 30, 2026 were driven primarily by unrealized gains within the bank loan portfolio as well as gains within the preferred stock portfolio. Capital Management The Company announced that its Board of Directors declared a cash dividend of $0.01 per share of common stock. This dividend is payable on Wednesday, September 30, 2026 to all shareholders of record as of Tuesday, September 15, 2026. Tangible Common Equity Shareholders' equity of $522.6 million at June 30, 2026 decreased 2.9% compared to shareholders' equity of $538.2 million at December 31, 2025 and increased 0.8% compared to shareholders' equity of $518.4 million at March 31, 2026. Tangible common equity3 of $416.7 million at June 30, 2026 increased 1.4% from $411.0 million at December 31, 2025 and increased 2.8% compared to tangible common equity of $405.5 million at March 31, 2026. Other comprehensive loss was $1.0 million for the three months ended June 30, 2026, increasing accumulated other comprehensive loss to $44.9 million due to the increase in fixed income yields year to date. Conference Call James River will hold a conference call to discuss its second quarter results tomorrow, August 11, 2026 at 8:30 a.m. Eastern Time. Investors may access the conference call by dialing (800) 715-9871, Conference ID 7866656, or via the investor website at https://investors.jrvrgroup.com and clicking on the “Investor Relations” link. A webcast replay of the call will be available by visiting the company website. Forward-Looking Statements This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, should, intend, project, anticipate, plan, estimate, guidance or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and uncertainties, they include, among others, the following: the inherent uncertainty of estimating loss and loss adjustment expense reserves and the possibility that incurred losses and loss adjustment expenses may be greater than our estimate used to compute loss and loss adjustment expense reserves included in the financial statements; inaccurate estimates and judgments in our risk management may expose us to greater risks than intended; downgrades in the financial strength rating or outlook of our regulated insurance subsidiaries impacting our competitive position and ability to attract and retain insurance business that our subsidiaries write and ultimately our financial condition and triggering a default on our credit facility; the potential loss of key members of our management team or key employees, and our ability to attract and retain personnel; adverse economic and competitive factors resulting in the sale of fewer policies than expected or an increase in the frequency or severity of claims, or both; risks associated with strategic transactions and initiatives, including our ability to identify, negotiate, consummate and realize the anticipated benefits of acquisitions, dispositions, investments, joint ventures, reinsurance transactions, capital-raising transactions and other strategic alternatives; the impact of a higher than expected inflationary environment on our reserves, loss adjustment expenses, the values of our investments and investment returns, and our compensation expenses; exposure to credit risk, interest rate risk and other market risk in our investment portfolio and our reinsurers; reliance on a select group of brokers and agents for a significant portion of our business and the impact of our potential failure to maintain such relationships; reliance on a select group of customers for a significant portion of our business and the impact of our potential failure to maintain, or decision to terminate, such relationships; our ability to obtain insurance and reinsurance coverage at prices and on terms that allow us to transfer risk, adequately protect our Company against financial loss and that supports our growth plans; losses resulting from reinsurance counterparties failing to pay us on reinsurance claims, insurance companies with whom we have a fronting arrangement failing to pay us for claims, or a former customer with whom we have an indemnification arrangement failing to perform its reimbursement obligations, and our potential inability to demand or maintain adequate collateral to mitigate such risks; the inherent uncertainty of estimating reinsurance recoverable on unpaid losses and the possibility that reinsurance may be less than our estimate of reinsurance recoverable on unpaid losses; inadequacy of premiums we charge to compensate us for our losses incurred; an impairment of our goodwill or other intangible assets affecting our results of operations and book value; changes in laws or government regulation, including tax or insurance laws and regulations; changes in U.S. tax laws (including associated regulations) and the interpretation of certain provisions applicable to insurance/reinsurance businesses with U.S. and non-U.S. operations, which may be retroactive and could have a significant effect on us including, among other things, by potentially increasing our tax rate, as well as on our shareholders; a failure of any of the loss limitations or exclusions we utilize in our insurance products to shield us from unanticipated financial losses or legal exposures, or other liabilities; losses from catastrophic events, such as natural disasters and terrorist acts, which substantially exceed our expectations and/or exceed the amount of reinsurance we have purchased to protect us from such events; potential effects on our business of emerging claim and coverage issues; the potential impact of internal or external fraud, operational errors, systems malfunctions or cyber security incidents; our ability to manage our growth effectively; failure to maintain effective internal controls in accordance with the Sarbanes-Oxley Act of 2002, as amended; changes in our financial condition, regulations or other factors that may restrict our subsidiaries’ ability to pay us dividends; an adverse result in any litigation or legal proceedings we are or may become subject to; and inability to generate taxable income and execute tax planning strategies which could adversely impact our ability to recognize deferred tax assets at the level reflected on our balance sheet. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those in the forward-looking statements, is contained in our filings with the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise. Non-GAAP Financial Measures In presenting James River Group Holdings, Inc.’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (“GAAP”). Such measures, including underwriting (loss) profit, adjusted net operating (loss) income, tangible equity, tangible common equity, and adjusted net operating return on tangible common equity (which is calculated as annualized adjusted net operating income expressed as a percentage of the average quarterly tangible common equity balances in the respective period), are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. These measures should not be viewed as a substitute for those measures determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included at the end of this press release. About James River Group Holdings, Inc.James River Group Holdings, Inc. is a holding company that owns and operates a group of specialty insurance companies. The Company operates in two specialty property-casualty insurance segments: Excess and Surplus Lines and Specialty Admitted Insurance. Each of the Company’s regulated insurance subsidiaries is rated “A-” (Excellent) by A.M. Best Company.Visit James River Group Holdings, Inc. on the web at https://jrvrgroup.com. For more information contact: Bob ZimardoSVP, Investments and Investor [email protected] EXCESS AND SURPLUS LINES SPECIALTY ADMITTED INSURANCE Underwriting Performance Ratios The following table provides the underwriting performance ratios of the Company's continuing operations inclusive of the business subject to retroactive reinsurance accounting. There is no economic impact to the Company over the life of a retroactive reinsurance contract so long as any additional losses subject to the contract are within the limit of the contract and the counterparty performs under the contract. Retroactive reinsurance accounting is not indicative of our current and ongoing operations. Management believes that providing loss ratios and combined ratios on business not subject to retroactive reinsurance accounting gives the users of our financial statements useful information in evaluating our current and ongoing operations. RECONCILIATION OF NON-GAAP MEASURES Underwriting Profit The following table reconciles the underwriting profit by individual operating segment and for the entire Company to consolidated income from continuing operations before taxes. We believe that the disclosure of underwriting profit by individual segment and of the Company as a whole is useful to investors, analysts, rating agencies and other users of our financial information in evaluating our performance because our objective is to consistently earn underwriting profits. We evaluate the performance of our segments and allocate resources based primarily on underwriting profit. We define underwriting profit as net earned premiums and gross fee income (in specific instances when the Company is not retaining insurance risk) less losses and loss adjustment expenses on business from continuing operations not subject to retroactive reinsurance accounting and other operating expenses. Other operating expenses include the underwriting, acquisition, and insurance expenses of the operating segments and, for consolidated underwriting profit, the expenses of the Corporate and Other segment. Our definition of underwriting profit may not be comparable to that of other companies. Adjusted Net Operating Income We define adjusted net operating income as income available to common shareholders excluding a) income (loss) from discontinued operations, b) the impact of retroactive reinsurance accounting, c) net realized and unrealized gains (losses) on investments, d) certain non-operating expenses such as professional service fees related to certain lawsuits, various strategic initiatives, and the filing of registration statements for the offering of securities, e) severance costs associated with terminated employees, and f) deemed dividends recorded with the amendment of the Series A Preferred Shares. Adjusted net operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and our definition of adjusted net operating income may not be comparable to that of other companies. Our income available to common shareholders reconciles to our adjusted net operating income as follows: Tangible Equity (per Share) and Tangible Common Equity (per Share) We define tangible equity as shareholders' equity plus mezzanine Series A Preferred Shares and the deferred retroactive reinsurance gain less goodwill and intangible assets, net of amortization. Tangible equity per share represents tangible equity divided by the sum of total shares of common stock outstanding plus the shares of common stock resulting from an assumed conversion of the outstanding Series A Preferred Shares into common stock (at the conversion price effective as of the last day of the applicable period). We define tangible common equity as tangible equity less mezzanine Series A Preferred Shares and tangible common equity per share represents tangible common equity divided by the total shares of common stock outstanding. Our definitions of tangible equity, tangible equity per share, tangible common equity and tangible common equity per share may not be comparable to those of other companies, and they should not be viewed as a substitute for shareholders' equity and shareholders' equity per share calculated in accordance with GAAP. We use tangible equity and tangible common equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure. The following table reconciles shareholders’ equity to tangible equity and tangible common equity for June 30, 2026, March 31, 2026, December 31, 2025, and June 30, 2025. 1 The Company closed the sale of JRG Reinsurance Company Ltd. on April 16, 2024. As a result, the full financials for our former Casualty Reinsurance segment have been classified as discontinued operations for all periods.2 Adjusted net operating income and tangible common equity are non-GAAP financial measures. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Measures” at the end of this press release.3 Tangible common equity is a non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Measures” at the end of this press release.

Q1 was hit by a $6.7M reinsurance reinstatement tied to a 2022 casualty claim, producing a net loss to common shareholders of $10.9 million (vs. $7.6M income a year earlier) and a reported group combined ratio of 104.6%; excluding the reinstatement, operating earnings would have been $0.22 per diluted share and the adjusted combined ratio 99.7%. Management reported modest premium growth and disciplined underwriting with submission growth up 4%, specialty premiums up 6% and excess casualty up 15%, while G&A expenses were cut 11% and seven of 14 underwriting divisions posted positive growth. Investment income was a bright spot, with net investment income of $21.3M (up 6.6% YoY) from a largely conservative portfolio (about 73% high-grade), and the company is rolling out an AI-enabled underwriting workbench to boost underwriting efficiency. Interested in James River Group Holdings, Ltd.? Here are five stocks we like better. Don't Overlook Hidden Gem Kinsale As Rallies To New Highs James River Group (NASDAQ:JRVR) said first-quarter 2026 results were weighed down by a sizable reinsurance reinstatement charge tied to a single casualty claim, even as management highlighted targeted premium growth, lower expenses, and continued investment gains. Chief Executive Officer Frank D’Orazio said the company’s excess and surplus (E&S) results were “negatively impacted by a sizable reinsurance reinstatement charge on a 2022 casualty treaty triggered by an individual claim,” calling it “a disappointing development on an otherwise solid quarter.” He added that James River restructured its E&S treaty placements in July 2023 to prevent similar outsized adjustments from affecting future results. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook James River Group Stock is Worth Taking a Closer Look Chief Financial Officer Sarah explained the financial impact in more detail, reporting a net loss to common shareholders of $10.9 million, compared with net income of $7.6 million in the first quarter of 2025. Operating earnings were $5.8 million, or $0.12 per diluted share, down from $9.1 million, or $0.19 per share, a year earlier. Sarah said results included $6.7 million of reinsurance reinstatement premiums, “largely related to a single E&S claim from 2022 that was booked and settled in the first quarter” and subject to the company’s prior casualty reinsurance treaty. She said the runoff structure includes reinstatement premium potential by accident year, leaving “reinstatement premium aggregate exposure of about $9 million across accident years 2022 and prior.” → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Absent the reinstatement premium impact, Sarah said operating earnings would have been $0.22 per diluted share. She added that the reinstatement premiums reduced net written premium, net earned premium, and underwriting income, and added about five points to the group combined ratio, which was 104.6% for the quarter, including nearly two points to the expense ratio of 35.4%. On an adjusted basis excluding the reinstatement premium impact, Sarah said the consolidated combined ratio would have been 99.7%, made up of an adjusted loss ratio of 66% and an expense ratio of 33.7%. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries For the E&S segment specifically, the reported combined ratio was 96.5%, driven by a 68% loss ratio and a 28.5% expense ratio. Adjusted for the reinstatement premiums, she said the E&S combined ratio would have been 91.8%, “right in line with that of the prior quarter.” D’Orazio said James River continues to emphasize underwriting discipline in what he described as “a transitioning marketplace,” and reiterated that for 2026 the company’s biggest rate opportunity remains in its excess casualty division, while growth opportunities are concentrated in specialty lines and the small business unit. He said casualty rates were positive at 7.7% for the quarter, consistent with the company’s expectations. However, he noted competitive pressure has been pronounced in excess property for several quarters and has “recently” increased in primary general casualty, prompting underwriters to navigate opportunities “with appropriate prudence.” In response to a question from Truist’s Mark Hughes about the source of competition in primary general casualty, D’Orazio said James River has seen “fairly aggressive MGAs” and an “overall increase in capacity from carriers interested in the E&S sector.” He added that some newer competition is not only competing on price but also on terms and conditions “that at this point seem unwise, particularly in the GC space.” D’Orazio also pointed to a divergence in market behavior between excess and primary casualty, saying there is “more respect for loss trend from excess casualty underwriters at this point.” UBS analyst Brian Meredith asked about business shifting between E&S and admitted markets. D’Orazio said the company has “definitely” observed business moving back to admitted markets, particularly in property, and that the trend has started to appear in “more standard lines like primary casualty as well.” He described this as part of a multi-quarter market transition and said the shift is likely to be “more specific to certain classes of business,” adding that property and primary general casualty are “obvious” areas attracting admitted market attention. He also said James River is seeing “a little bit more resilience in some of the specialty lines.” D’Orazio said submission growth was up 4%, and for the first time in several quarters the company “modestly grew gross written premiums across our E&S casualty and specialty portfolios,” with seven of 14 underwriting divisions reporting positive growth. Excluding the manufacturers’ and contractors’ business—where the company made appetite refinements last year—and the small delegated contract binding portfolio currently in runoff, he said the casualty portfolio was up over 6% year over year. He said growth was driven by areas the company has prioritized: Specialty lines premiums up 6%, led by professional liability, energy, and health care. Excess casualty premiums up 15%, “largely driven” by continued rate increases. Management emphasized cost control. D’Orazio said the company reduced G&A expenses by 11% during the quarter, continuing the same discipline exhibited in 2025. Sarah said the year-over-year decline was driven by reductions within Specialty Admitted, where G&A was down 46%, and the corporate segment, down 15%. On reserves, Sarah said “underlying loss trends remain stable,” and reserves “continue to reflect improved risk selection in the more recent accident years.” The company recorded de minimis favorable reserve development of $165,000, split between E&S and Specialty Admitted. She added that the company continues to observe lower frequency and incurred losses in recent accident years but is remaining cautious “as the business seasons.” Sarah also said the company ceded $16.2 million of development to the E&S top-up adverse development cover during the quarter, noting $7.5 million remains on that cover. She said the top-up adverse development cover and the other E&S ADC/LPT cover E&S accident years 2010 through 2023, with exceptions for the excess property book and the runoff Uber portfolio, which is covered by a legacy structure. Investment income was a bright spot. Sarah reported net investment income of $21.3 million, up 6.6% year over year. She attributed the increase to improved private investment income tied to the company’s move over the past 18 months to invest “more capital efficiently in private credit-rated note vehicles,” as well as deploying cash into its high-grade portfolio. She said the diversified bank loan portfolio—about 8% of total cash and invested assets—generated strong income but was also the largest driver of net realized and unrealized investment losses due to volatility. Overall, she characterized the investment portfolio as conservative, with about 73% invested in high-grade fixed income at an average duration of 3.5 years and an A-plus average credit rating. Tangible common equity per share declined to $8.77, which Sarah said reflected investment market movements and the impact of legacy reinsurance structures. D’Orazio said the company is making “significant investments in technology” intended to increase underwriting efficiency and improve tools available to E&S staff. He said the rollout of an AI-enabled underwriting workbench is underway, with the first two underwriting departments rolled out during the quarter. Asked by Hughes about practical implications, D’Orazio said the company’s recent upgrades to core systems have enabled these investments. He described the workbench as spanning “clearance through risk prioritization against our appetite and production source relationships, data ingestion from third parties,” and facilitating quote-and-bind processes. He said James River views the technology as “a major efficiency play” to turn around quotes more quickly and in a more targeted fashion. In closing remarks, D’Orazio said that despite headwinds in the quarter, management remains focused on the “underlying strength of the improved business model,” pointing to “very targeted growth” in specialty and casualty lines, ongoing expense discipline, and execution in a competitive market. He said the company is “well-positioned for 2026.” James River Group Holdings, Ltd., through its subsidiaries, underwrites property and casualty insurance products primarily in the program, wholesale broker and retail broker markets. The company focuses on specialty P&C lines, offering binding authority and delegated underwriting solutions for niche sectors including professional liability, environmental, real estate and other tailored commercial risks. Operating under the James River brand, it provides both admitted and non-admitted insurance across multiple states. Founded in 2014 and headquartered in Richmond, Virginia, James River Group has expanded through a combination of organic growth and strategic acquisitions. The article "James River Group Q1 Earnings Call Highlights" was originally published by MarketBeat.

CHAPEL HILL, N.C., May 04, 2026 (GLOBE NEWSWIRE) -- Chapel Hill, N.C., May 4, 2026 - James River Group Holdings, Inc. ("James River" or the "Company") (NASDAQ: JRVR) today reported the following results for the first quarter of 2026 as compared to the same period in 2025: Unless specified otherwise, all underwriting performance ratios presented herein are for our continuing operations and business not subject to retroactive reinsurance accounting. First Quarter 2026 Highlights: Excess and Surplus ("E&S") segment gross written premium of $212.3 million as compared to $213.2 million in the prior year quarter. Active casualty lines grew modestly for the first time in three quarters. General and administrative expenses declined 10.5% compared to the prior year quarter. Results were negatively impacted by $6.7 million of reinsurance reinstatement premiums associated predominantly with one E&S claim, which lowered net written premium, net earned premium and underwriting income. While the combined ratio was 104.6% as compared to 99.5% in the prior year quarter, absent the impact of the reinsurance reinstatement premiums, the consolidated loss ratio, expense ratio and combined ratio would have been 66.0%, 33.7%, and 99.7% respectively. Frank D'Orazio, the Company’s Chief Executive Officer, commented, "During the first quarter, we continued to see strong submission flow and rate opportunities across many casualty and specialty lines and grew our E&S casualty portfolio for the first time in several quarters. Although the reinsurance reinstatement premium impact was an unwelcome result, it was tied predominantly to a single claim prior to our 2023 treaty restructuring, which was specifically designed to mitigate volatility from this dynamic going forward. With a diligent focus on underwriting discipline and expense efficiency, we are excited about the market opportunity ahead of us in 2026." First Quarter 2026 Operating Results Gross written premium of $236.4 million, consisting of the following: Net written premium3 of $120.1 million, consisting of the following: Net earned premium3 of $135.7 million, consisting of the following: As cited earlier, results were negatively impacted by $6.7 million of reinsurance reinstatement premiums associated predominantly with one E&S claim. The reinstatement premiums reduced net written and net earned premium, as well as underwriting income. Excluding these reinstatement premiums, the consolidated loss ratio, expense ratio, and combined ratio would have been 66.0%, 33.7%, and 99.7%, respectively. The Company changed the structure of its reinsurance program in 2023 with the goal of maintaining the balance sheet protection while reducing the potential for more volatile reinstatement premiums in the more recent underwriting years. Pre-tax net favorable reserve development by segment on business not subject to retroactive reinsurance accounting was as follows: The Company experienced de minimis net favorable reserve development in each of the two insurance segments comparable to the prior year quarter. There remains $7.5 million of aggregate limit on the adverse development reinsurance contract with Cavello Bay ("E&S Top Up ADC"). The Company does not have a retention on the E&S Top Up ADC which covers the majority of the E&S segment's reserves for accident years 2023 and prior. The Company continues to observe lower frequency and incurred losses in recent accident years. The Company reduced general and administrative expenses by 10.5% as compared to the prior year quarter, notably in the Specialty Admitted (down 46%) and Corporate (down 15%) segments. The consolidated expense ratio was 35.4% for the first quarter of 2026, as compared to 32.7% in the prior year quarter. Absent the $6.7 million aforementioned reinsurance reinstatement premiums in E&S, the expense ratio would have been 33.7% for the quarter. Investment Results Net investment income for the first quarter of 2026 was $21.3 million, an increase of 6.6% compared to $20.0 million in the prior year quarter. Private investment income of $1.8 million exceeded that of the prior year period as the Company diversified its private holdings portfolio away from more concentrated equity investments and into a selection of high-quality rated note exposure managed by core institutional managers. Fixed income securities generated higher net investment income following the increase in higher-yielding "A" rated structured securities in the second half of 2025. Short-term investments, cash, and bank loans contributed comparably less income due to an overall decrease in yields for these asset classes compared to the same period in 2025 as well as lower average balances. The Company’s net investment income consisted of the following: The Company’s annualized gross investment yield on average fixed maturity, bank loan and equity securities for the three months ended March 31, 2026 was 4.5% (versus 4.6% for the three months ended March 31, 2025). Net realized and unrealized losses on investments of $6.6 million for the three months ended March 31, 2026 were driven primarily by losses within the bank loan portfolio. This portfolio is predominantly senior secured and represents 7.8% of the Company's invested assets and cash. The Company has limited equity exposure in its investment portfolio and it has invested in the bank loan asset class for most of its history. This quarter, the asset class and the investment portfolio experienced volatility due to various market dynamics. Capital Management The Company announced that its Board of Directors declared a cash dividend of $0.01 per share of common stock. This dividend is payable on Tuesday, June 30, 2026 to all shareholders of record as of Monday, June 8, 2026. Tangible Common Equity Shareholders' equity of $518.4 million at March 31, 2026 decreased 3.7% compared to shareholders' equity of $538.2 million at December 31, 2025. Tangible common equity4 of $405.5 million on March 31, 2026 decreased 1.3% from $411.0 million on December 31, 2025. Other comprehensive loss was $9.2 million during the first quarter of 2026, increasing accumulated other comprehensive loss to $43.9 million due to the increase in yields during the quarter. Conference Call James River will hold a conference call to discuss its first quarter results tomorrow, May 5, 2026 at 8:00 a.m. Eastern Time. Investors may access the conference call by dialing (800) 715-9871, Conference ID 1541721, or via the investor website at https://investors.jrvrgroup.com and clicking on the “Investor Relations” link. A webcast replay of the call will be available by visiting the company website. Forward-Looking Statements This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, should, intend, project, anticipate, plan, estimate, guidance or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and uncertainties, they include, among others, the following: the inherent uncertainty of estimating loss and loss adjustment expense reserves and the possibility that incurred losses and loss adjustment expenses may be greater than our estimate used to compute loss and loss adjustment expense reserves included in the financial statements; inaccurate estimates and judgments in our risk management may expose us to greater risks than intended; downgrades in the financial strength rating or outlook of our regulated insurance subsidiaries impacting our competitive position and ability to attract and retain insurance business that our subsidiaries write and ultimately our financial condition and triggering a default on our credit facility; the potential loss of key members of our management team or key employees, and our ability to attract and retain personnel; adverse economic and competitive factors resulting in the sale of fewer policies than expected or an increase in the frequency or severity of claims, or both; the impact of a higher than expected inflationary environment on our reserves, loss adjustment expenses, the values of our investments and investment returns, and our compensation expenses; exposure to credit risk, interest rate risk and other market risk in our investment portfolio and our reinsurers; reliance on a select group of brokers and agents for a significant portion of our business and the impact of our potential failure to maintain such relationships; reliance on a select group of customers for a significant portion of our business and the impact of our potential failure to maintain, or decision to terminate, such relationships; our ability to obtain insurance and reinsurance coverage at prices and on terms that allow us to transfer risk, adequately protect our Company against financial loss and that supports our growth plans; losses resulting from reinsurance counterparties failing to pay us on reinsurance claims, insurance companies with whom we have a fronting arrangement failing to pay us for claims, or a former customer with whom we have an indemnification arrangement failing to perform its reimbursement obligations, and our potential inability to demand or maintain adequate collateral to mitigate such risks; the inherent uncertainty of estimating reinsurance recoverable on unpaid losses and the possibility that reinsurance may be less than our estimate of reinsurance recoverable on unpaid losses; inadequacy of premiums we charge to compensate us for our losses incurred; changes in laws or government regulation, including tax or insurance laws and regulations; changes in U.S. tax laws (including associated regulations) and the interpretation of certain provisions applicable to insurance/reinsurance businesses with U.S. and non-U.S. operations, which may be retroactive and could have a significant effect on us including, among other things, by potentially increasing our tax rate, as well as on our shareholders; a failure of any of the loss limitations or exclusions we utilize in our insurance products to shield us from unanticipated financial losses or legal exposures, or other liabilities; losses from catastrophic events, such as natural disasters and terrorist acts, which substantially exceed our expectations and/or exceed the amount of reinsurance we have purchased to protect us from such events; potential effects on our business of emerging claim and coverage issues; the potential impact of internal or external fraud, operational errors, systems malfunctions or cyber security incidents; our ability to manage our growth effectively; failure to maintain effective internal controls in accordance with the Sarbanes-Oxley Act of 2002, as amended; changes in our financial condition, regulations or other factors that may restrict our subsidiaries’ ability to pay us dividends; an adverse result in any litigation or legal proceedings we are or may become subject to; and inability to generate taxable income and execute tax planning strategies which could adversely impact our ability to recognize deferred tax assets at the level reflected on our balance sheet. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those in the forward-looking statements, is contained in our filings with the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise. Non-GAAP Financial Measures In presenting James River Group Holdings, Inc.’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (“GAAP”). Such measures, including underwriting (loss) profit, adjusted net operating (loss) income, tangible equity, tangible common equity, and adjusted net operating return on tangible equity (which is calculated as annualized adjusted net operating income expressed as a percentage of the average quarterly tangible equity balances in the respective period), are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. These measures should not be viewed as a substitute for those measures determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included at the end of this press release. About James River Group Holdings, Inc. James River Group Holdings, Inc. is a holding company that owns and operates a group of specialty insurance companies. The Company operates in two specialty property-casualty insurance segments: Excess and Surplus Lines and Specialty Admitted Insurance. Each of the Company’s regulated insurance subsidiaries are rated “A-” (Excellent) by A.M. Best Company. Visit James River Group Holdings, Inc. on the web at https://jrvrgroup.com. For more information contact: Bob Zimardo SVP, Investments and Investor Relations [email protected] Underwriting Performance Ratios The following table provides the underwriting performance ratios of the Company's continuing operations inclusive of the business subject to retroactive reinsurance accounting. There is no economic impact to the Company over the life of a retroactive reinsurance contract so long as any additional losses subject to the contract are within the limit of the contract and the counterparty performs under the contract. Retroactive reinsurance accounting is not indicative of our current and ongoing operations. Management believes that providing loss ratios and combined ratios on business not subject to retroactive reinsurance accounting gives the users of our financial statements useful information in evaluating our current and ongoing operations. RECONCILIATION OF NON-GAAP MEASURES Underwriting Profit The following table reconciles the underwriting profit by individual operating segment and for the entire Company to consolidated income from continuing operations before taxes. We believe that the disclosure of underwriting profit by individual segment and of the Company as a whole is useful to investors, analysts, rating agencies and other users of our financial information in evaluating our performance because our objective is to consistently earn underwriting profits. We evaluate the performance of our segments and allocate resources based primarily on underwriting profit. We define underwriting profit as net earned premiums and gross fee income (in specific instances when the Company is not retaining insurance risk) less losses and loss adjustment expenses on business from continuing operations not subject to retroactive reinsurance accounting and other operating expenses. Other operating expenses include the underwriting, acquisition, and insurance expenses of the operating segments and, for consolidated underwriting profit, the expenses of the Corporate and Other segment. Our definition of underwriting profit may not be comparable to that of other companies. Adjusted Net Operating Income We define adjusted net operating income as income available to common shareholders excluding a) income (loss) from discontinued operations, b) the impact of retroactive reinsurance accounting, c) net realized and unrealized gains (losses) on investments, d) certain non-operating expenses such as professional service fees related to certain lawsuits, various strategic initiatives, and the filing of registration statements for the offering of securities, e) severance costs associated with terminated employees, and f) deemed dividends recorded with the amendment of the Series A Preferred Shares. Adjusted net operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and our definition of adjusted net operating income may not be comparable to that of other companies. Our income available to common shareholders reconciles to our adjusted net operating income as follows: Tangible Equity (per Share) and Tangible Common Equity (per Share) We define tangible equity as shareholders' equity plus mezzanine Series A Preferred Shares and the deferred retroactive reinsurance gain less goodwill and intangible assets, net of amortization. Tangible equity per share represents tangible equity divided by the sum of total shares of common stock outstanding plus the shares of common stock resulting from an assumed conversion of the outstanding Series A Preferred Shares into common stock (at the conversion price effective as of the last day of the applicable period). We define tangible common equity as tangible equity less mezzanine Series A Preferred Shares and tangible common equity per share represents tangible common equity divided by the total shares of common stock outstanding. Our definitions of tangible equity, tangible equity per share, tangible common equity and tangible common equity per share may not be comparable to that of other companies, and they should not be viewed as a substitute for shareholders' equity and shareholders' equity per share calculated in accordance with GAAP. We use tangible equity and tangible common equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure. The following table reconciles shareholders’ equity to tangible equity and tangible common equity for March 31, 2026, December 31, 2025, March 31, 2025, and December 31, 2024. ___________________________ 1 The Company closed the sale of JRG Reinsurance Company Ltd. on April 16, 2024. As a result, the full financials for our former Casualty Reinsurance segment have been classified to discontinued operations for all periods. 2 Adjusted net operating income is a non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” at the end of this press release. 3 Net written premium and net earned premium were impacted by $6.7 million of reinsurance reinstatement premiums incurred during the three months ending March 31, 2026. These premiums were associated predominantly with a single claim within the Company's E&S segment. 4 Tangible common equity is a non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” at the end of this press release.

Performance was significantly impacted by a $6.7 million reinsurance reinstatement charge related to a single 2022 casualty claim, which management characterized as a disappointing development in an otherwise solid quarter. Management emphasized that E&S treaty placements were restructured in July 2023 specifically to prevent these types of outsized reinstatement adjustments from impacting future results. Strategic growth is being prioritized in Specialty Lines and the Small Business Unit, which management believes hold the most attractive margins in the current transitioning marketplace. The company is observing a divergence in market discipline, with Excess Casualty underwriters maintaining respect for loss trends while Primary General Casualty faces increasing competitive pressure from MGAs and new capacity. Operational efficiency improved through an 11% reduction in G&A expenses, driven by aggressive cost management in the Specialty Admitted and Corporate segments. The company is pivoting toward technology-led underwriting, initiating the rollout of AI-enabled workbenches to improve risk prioritization, data ingestion, and quote turnaround times. Management expects the greatest opportunities for rate increases to remain in the Excess Casualty division throughout 2026. The new E&S treaty structure for accident years 2023 and beyond is designed to mitigate earnings volatility by paying higher upfront rates rather than incurring large reinstatement premiums. Future earnings remain subject to approximately $9 million in aggregate reinstatement premium exposure across accident years 2022 and prior. The company plans to continue scaling its SME platform by leveraging AI technology to differentiate its wholesale-only distribution model. Management anticipates reporting further progress on the rollout of AI underwriting tools as they expand from the initial two departments to the broader E&S staff. A $6.7 million reinstatement premium added approximately 5 points to the consolidated combined ratio and 2 points to the expense ratio. The company ceded $16.2 million of development to the E&S top-up adverse development cover during the quarter, leaving $7.5 million of remaining capacity on that specific cover. Management noted a trend of business moving back to the admitted market, particularly in property and some primary casualty lines, as the market cycle transitions. Investment volatility was primarily driven by the diversified bank loan portfolio, though the overall portfolio remains conservatively positioned with an A+ average credit rating. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management noted aggressive competition from MGAs and new carrier capacity in the E&S sector, particularly in the General Casualty space. Some competitors are offering terms and conditions that management views as 'unwise,' leading James River to exercise prudence in those lines. Sarah Doran clarified that very little of the reserves subject to the ADC structures have been paid out to date. The top-up cover applies to E&S accident years 2010 through 2023, excluding excess property and the runoff Uber portfolio. The AI workbench is intended to automate clearance, risk prioritization against appetite, and data ingestion from third parties. The primary goal is to act as a 'competitive enabler' by facilitating faster quote and bind processes for wholesale partners. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.