James River Group Holdings (JRVR) Q1 2025 earnings summary

Executive summary

• Net income from continuing operations was $9 million ($0.18 per diluted share) for Q1 2025, down from $20.9 million in Q1 2024, with adjusted net operating income of $9.1 million ($0.19 per share).

• Underwriting profit declined to $0.7 million (combined ratio 99.5%) from $8.1 million in Q1 2024, impacted by prior year premium adjustments and higher expenses.

• Successfully concluded the post-close purchase price adjustment for the former Bermuda reinsurance segment, resulting in a minimal $500,000 downward adjustment.

• Emphasized risk mitigation, core competencies, and underwriting discipline amid global market volatility and economic uncertainty.

• Sale of JRG Re closed in April 2024, resulting in a $1.4 million loss on disposal in Q1 2025; results of JRG Re are now reported as discontinued operations.

Financial highlights

• Gross written premium totaled $294.4 million, down 11% year-over-year; net written premium was $128 million, down 7%; net earned premium was $151.9 million, down 12%.

• Net income available to common shareholders was $7.6 million, a 41% decrease from Q1 2024.

• Tangible common equity per share increased 6.6% to $7.11; book value per share was $10.56 at March 31, 2025.

• Net investment income was $20 million, down 12% year-over-year due to reduced assets under management.

• Combined ratio for the quarter was 99.5%, with a loss ratio of 66.8% and expense ratio of 32.7%.

Outlook and guidance

• Expect to grow the E&S segment premium base over 2025, leveraging strong March momentum and favorable market conditions.

• Anticipate full-year 2025 expense ratio to be close to last year's 31%.

• Planned redomicile to the U.S. expected to reduce effective tax rate and deliver $3–$6 million in annual expense savings, plus a one-time $10–$13 million benefit.

• Company expects continued selectivity in underwriting amid moderating rate increases and increased competition in E&S lines.

• Notified of non-renewal for largest fronting relationship in Specialty Admitted segment, with full run-off beginning July 2025.