James River, a Bermuda-based insurance holding company has reported a gross written premium (GWP) of $427.7 million for the second quarter of 2023, a 7% rise from last year’s $399.7 million.
GWP for the firm’s Specialty Admitted Insurance segment increased 9.6% from the prior year quarter, which included a 11.0% increase in fronting and program premium.
During Q2 James River also posted a combined 3.9% reduction to premium from it’s individual risk workers’ compensation business, as well as it’s large workers’ compensation fronted program, which was partially offset by strong growth in the company’s remaining fronting and program business.
At the same time, GWP within Casualty Reinsurance totaled $4.7 million and was solely related to premium adjustments.
Earlier this year, James River confirmed that it had suspended underwriting business within it’s Casualty Reinsurance segment and have not written or renewed any treaties this year.
Net earned premium for Q223 was $209.7 million, a 13% increase from Q222’s $186.2 million.
Meanwhile, James River posted a net income available to common shareholders of $21.1 million for Q2, compared to net income available to common shareholders of $5.0 million for the second quarter of 2022.
Adjusted net operating income for Q223 was $20.6 million, a slight increase from last year’s adjusted net income of of $20.0 million.
Moving forward, James River witnessed a group combined ratio of 94.6% and Excess and Surplus Lines (E&S) segment combined ratio of 87.8% on business not subject to retroactive reinsurance accounting for loss portfolio transfers.
James Rivers’ E&S segment renewal rate change increased 11.0% from the prior year quarter, with nearly all underwriting divisions reporting positive pricing increases.
In addition, net investment income increased 71.2% to $25.2 million, compared to last year’s $14.7 million, with most asset classes reporting meaningfully higher income.
Frank D’Orazio, the Company’s Chief Executive Officer, commented on the second quarter results: “Our results continue to demonstrate our focus on generating strong, consistent earnings for shareholders and an ability to take advantage of sustained robust E&S market conditions, while managing our portfolio for optimal risk and return. Rising E&S renewal rates of 11% in the second quarter provide encouraging signs of persistent market strength in our core business.”
