James River Group Holdings Ltd. has posted a net income of $5 million for the second quarter of 2022, down from $20.8 million from the same period last year.
Adjusted net operating income for the quarter was $20 million, an increase from last years $18.8 million.
The company’s second quarter 2022 group combined ratio was 91.0%. The company’s biggest segment, Excess and Surplus Lines (E&S), produced a combined ratio 83.8%, compared to a combined ratio of 77.2% from the same period last year.
At the same time, E&S gross written premium (GWP) increased 24.6% compared to the prior year quarter, with eleven out of thirteen underwriting divisions experiencing growth and ten of the underwriting divisions reporting double-digit growth for the second consecutive quarter.
Renewal rate increases were 14.1% during Q2 22, which represented the twenty-second consecutive quarter of renewal rate increases compounding to 58.1%.
The company also reported a GWP of $399.7 million for the quarter, a 5% increase compared to $380.1 million from the same period last year.
In addition, net written premium (NWP) for Q2 22 was $194.6 million, a 1% increase from $193.6 million from Q2 21. Net earned premium for the quarter was $186.2 million, an 8% increase from $172.7 million from last years second quarter.
Frank D’Orazio, the Company’s Chief Executive Officer, commented: “Our strong start to 2022 continued in the second quarter, as our results reflect an acute focus on underwriting profitability and risk management, as well as our leadership position in the E&S market. Robust performance across our underwriting segments, and investments, contributed to an adjusted net operating return on tangible common equity of 19.9% this quarter.
“Our E&S segment results were particularly strong with accelerating premium growth supported by renewal rate increases, and continued attractive underwriting margins. We remain disciplined in managing the business, as premium in our workers’ compensation unit and Casualty Reinsurance segment declined in accordance with our stated plan, given more attractive relative opportunities in the portfolio.”
