James River Group Holdings Ltd. (NASDAQ: JRVR) stock plunged by 1.67% at last close while the JRVR stock continued decline by 25.74% at last check in pre-market after its Q1 financial results. The James River Group is a Bermuda-based insurance holding company that manages and runs a collection of specialist insurance and reinsurance firms. Excess and Surplus Lines, Specialist Admitted Insurance, and Casualty Reinsurance are JRVR’s three specialty property-casualty insurance and reinsurance divisions.
On May 5, 2021, JRVR has released its first quarter 2021 financial results. Given below is the summary:
- Net loss of $103.5 million in the first quarter of 2021, and adjusted net operating loss of $108.8 million.
- As newly added programs matured and expanded, fronting business in the Specialty Admitted sector increased significantly. In comparison to the prior year period, segment Gross Written Premium increased 23.6 percent and fee income increased 21.8 percent.
- The Casualty Reinsurance segment’s gross and net written premiums rose from the prior year period, owing to a shift in the renewal date of one major treaty.
- The expense ratio for the quarter was 28.9%, compared to 34.2 % in the previous year’s first quarter.
- Unfavorable growth of $168.7 million in the E&S segment, including $170.0 million in Commercial Auto, largely due to a recently cancelled account that has been in runoff since 2019.
Frank D’Orazio, JRVR’s CEO stated:
JRVR continued to record higher-than-expected estimated losses in their massive commercial auto account in runoff during the period. As a result, JRVR made significant changes to its actuarial approach, culminating in a significant increase in reserves. JRVR also feels that the overhang has been removed, and that they can now truly rely on their future business and what has traditionally been a good E&S industry.