James River Group Holdings Ltd. has released its financial results for the first quarter of 2024 reporting a net income of $20.9 million and a combined ratio of 95.3%.
These results compared to the prior year first quarter’s when the company reported a lower net income, $5.27 million, and a combined ratio of 94%.
The Group also reported gross written premium of $330.8 million, net written premiums of $138.2 million and a net investment income that increased 22.8% compared to the prior year quarter, with all asset classes except private investments reporting higher income.
Growth in income was broad-based across the portfolio, as cash flow was deployed at higher yields. On a sequential basis, income excluding private investments increased modestly, James River noted.
Adjusted net operating income for Q1 2024 was $14.8 million, a figure that reflected strong investment income and profitable underwriting results from continuing operations, particularly from the company’s Excess and Surplus Lines segment.
James River’s E&S segment saw GWP of $213.6 million, a 7% decrease from Q1 2023. This decline was driven by the non-renewal of selected larger accounts that did not meet the company’s underwriting profitability hurdles.
The segment also saw a combined ratio of 87.3% and a renewal rate change of 10.7%, with the majority of the underwriting divisions reporting positive pricing increases.
At $20.7 million, the Specialty Admitted Insurance segment’s GWP fell 22%. It also saw a combined ratio of 97%, with fronting and program gross written premium growth of 23% excluding the non-renewed workers’ compensation program.
The Bermuda domiciled insurance holding company also noted that due to the Stock Purchase Agreement entered into in Q4 2023 for the sale of JRG Re – completed in April 2024 – the full results for its former Casualty Reinsurance segment have been reclassified to discontinued operations for all periods.
Frank D’Orazio, James River Chief Executive Officer, commented: “James River has started the year with strong profitability and attractive returns on our capital as we continue to demonstrate our commitment to disciplined underwriting and risk management.
“During the quarter, we saw record submission count amid a continued strong rate environment, and with a focus on underwriting profitability, we took action to reduce selected large account writings which were less compelling. Our Board of Directors continues its exploration of strategic alternatives for the Company that was announced in November of 2023.”
