James River Group Holdings, the Bermuda-based insurance holdings company, has warned that it is expecting to report a net loss of between $23 million and $26 million for the third quarter of 2021.
The results, which will be released on November 2nd, are also expected to include a combined ratio of between 120% and 125%.
This performance was impacted by $5.0 million of pre-tax catastrophe losses related to Hurricane Ida, net of reinsurance recoveries.
The company does not expect to report any catastrophe losses in excess of $5.0 million for the quarter thanks to its property catastrophe reinsurance program.
James River also noted that the anticipated result will include additional reinstatement premiums of $8.1 million for casualty treaties in the E&S segment, $29.6 million associated with a previously announced LPT, and adverse development of $15.1 million related to its casualty reinsurance segment.
The combined ratio for the insurer’s excess and surplus lines (E&S) segment would have improved to a score the low 80s, James River added, if the impact of cat losses, additional reinstatement premiums for casualty treaties and the LPT were ignored.
Growth in the E&S segment as measured by gross written premiums was approximately 20% as compared to the prior year quarter, and approximately 10% across the company.
