Bermuda-based insurance holdings company James River Group expects to report full year 2020 net income of between $4 million and $5 million.
Full year 2020 adjusted net operating income is expected to fall between $18 million and $22 million.
The combined ratio for the full year is expected to be between 105% and 107%.
Growth in core excess and surplus GWP has been reported as having risen 29% compared to the prior year.
In announcing these figures James River noted how all results are inclusive of unfavorable development of prior year loss reserves of between $85 million and $90 million during the fourth quarter.
The unfavorable development is concentrated in the company’s commercial auto division within its E&S segment and its casualty re segment, with an offset of positive development in its core E&S and specialty admitted insurance segment.
“We experienced a significant increase in reported losses in two areas of our Company – one large Commercial Auto account in runoff, and in our Casualty Reinsurance segment – and have meaningfully strengthened reserves in response”, said Chief Executive Officer Frank D’Orazio.
“With this strengthening of prior year reserves, I believe our franchise is extremely well positioned to continue to take advantage of compelling market conditions across our business.
“Our Core E&S business, where we have earned attractive returns for many years, and our fronting business within our Specialty Admitted Insurance segment, present us with very attractive opportunities to put capital to work, driven by a continued attractive rate environment.”
