James River sees $152.7mn net loss in Q4 202

James River Group Holdings Ltd. has released its financial results for the fourth quarter of 2023 reporting a net loss of $152.7mn, marked by a net loss stemming from the reclassification of its Casualty Reinsurance segment’s results to discontinued operations.

The Bermuda domiciled insurance holding company, highlighted that due to the pending sale of JRG Reinsurance Company Ltd (JRG Re) – which has received all necessary regulatory approvals, with a closure expected in Q1 2024 -, full results for the Casualty Reinsurance segment were reclassified to discontinued operations for all periods.

The held-for-sale classification of JRG Re generated an $80.4mn loss for James River, this also included a $89.8mn loss from discontinued operations.

The loss from discontinued operations included $53.2mn associated with JRG Re’s fixed maturity securities as the company no longer has the intent or ability to hold securities in an unrealized loss position until a recovery of their fair value could occur.

Despite the net loss, the James River highlighted a $12.4mn adjusted net operating income for the fourth quarter of 2023.

This figure, the company stated, reflects strong investment income and profitable underwriting results from continuing operations, particularly from the Excess and Surplus Lines (E&S) segment.

With a combined ratio of 94.2%, the E&S segment saw gross written premium exceed $1.0bn, a record level, including 12.1% growth in the fourth quarter of 2023 compared to the prior year quarter.

E&S net written premiums of $172.2mn in Q4 2023, a 2% loss compared to the $175.2mn reported in Q4 2022.

James River also reported a 67% increase in its investment income in Q4 2023 compared to the prior year quarter, with all asset classes reporting meaningfully higher income.

Frank D’Orazio, the Company’s Chief Executive Officer, commented: “2023 was a year of significant transformation and strategic progress for James River, with the Company now purely focused on our E&S and fronting platforms.

“During the fourth quarter we eclipsed $1 billion in annual E&S premium, a significant milestone for the organisation that demonstrates the strength of our franchise, driven by meaningful submission growth. We expect to continue to build on this momentum in 2024 as our team remains focused on leveraging sustained attractive market conditions.”

He concluded: “Our Board of Directors continues its exploration of strategic alternatives for the Company that was announced in November. We expect to provide an update on the process in due course.”

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