James River Group Holdings, the Bermuda-based insurance holdings company, has posted a fourth quarter 2019 net income of $20.5 million, up from $11.6 million in the prior year quarter.
The firm’s gross written premiums reached $375 million in Q4, representing a 27% increase from the same period in 2018.
Excess and surplus lines recorded premium growth of 41% to $234 million, specialty admitted insurance premiums grew by 4% to $94.7 million, while casualty reinsurance premiums grew by 22% to $46 million.
Meanwhile, the firm’s 93.8% combined ratio represents a three-year low, while underwriting profit reached $13.6 million, the highest quarterly number reported since being a public company in 2014.
“We have enjoyed twelve consecutive quarters of rate increases in our E&S segment, said J. Adam Abram, the Company’s Chairman and Chief Executive Officer.
“This quarter, renewal rates increased by 6.6%, which was the largest quarterly increase since the market began to improve. The strong rate environment, coupled with a 27% growth in submissions during the fourth quarter, positions us well for 2020.”
The Company had unfavorable reserve development of $8.8 million compared to unfavorable reserve development of $5.8 million in the prior year quarter.
The Casualty Reinsurance segment’s $9.8 million of unfavorable development was offset by commission slide adjustments of $4.6 million.
The Specialty Admitted Insurance segment experienced $1 million of favorable development in its workers’ compensation business.
