James River Group Holdings, Inc. · NASDAQ:JRVR
James River — Q4 2021 Earnings Presentation
24 slides from James River's earnings presentation, Mar 1, 2022
Slide 1: Investor Presentation Fourth Quarter 2021
Investor Presentation Fourth Quarter 2021
Slide 2: Disclosure: Forward-Looking Statements
Disclosure Forward-Looking Statements This presentation contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, should, int
Slide 3: Executive Summary
Executive Summary
Slide 4: Overview of James River
Overview of James River We seek to deliver a consistent, top tier return on tangible common equity and generate sector leading value creation ✓ Renew our unrelenting focus on underwriting profitability ✓ We seek to generate superior underwriting margins from our niche casualty focused risk, while gr
Slide 5: Our Business
Our Business • We are a specialty, low volatility underwriting company with an attractive, sizeable Excess & Surplus (“E&S”) franchise and rapidly scaling “capital light” fronting business experiencing an extremely robust market for property and casualty risk. • Little catastrophe or cyber exposure,
Slide 6: Attractive Growth Businesses
Attractive Growth Businesses • Attractive E&S market poised for expected continued profitable growth as industry competitors retrench, and new businesses are forced to find insurance coverage in the E&S market given their lack of insurance loss history. • Our primary businesses (Core E&S(1) and Spec
Slide 7: What is Driving Growth in the E&S Market?
What is Driving Growth in the E&S Market? The E&S market began experiencing rate hardening in late 2018 / early 2019 and the hardening significantly accelerated in 2020 driven by the Global Pandemic. Admitted market carriers have been tightening underwriting guidelines or non-renewing business, push
Slide 8: The E&S Market is Highly Attractive
The E&S Market is Highly Attractive U.S. Excess & Surplus Lines DWP ($BN) E&S industry DWP has grown at double digit rates the past 3 years driven by rising renewal rates and changes in risk appetite 18% 16% $47.6 2012 – 2017 Average Growth Rate: 5% 10% $40.3 $34.6 $29.8 $29.9 $31.5 $27.3 $28.9 $25.
Slide 9: E&S: Broad Risk Appetite Permits Us to 'Pick Our Spots'
E&S: Broad Risk Appetite Permits Us to ‘Pick Our Spots’ Our high caliber underwriting team, and use of technology, provide significant expertise to price our increased submission flow of skillfully underwritten risks • 13 separate underwriting divisions focused on growth in very attractive markets.
Slide 10: Finding Profitable Growth Opportunities
Finding Profitable Growth Opportunities Attractive underwriting conditions have allowed for meaningful growth in our Core E&S book at highly profitable margins Achieving meaningful scale at highly attractive rates – disciplined Highly profitable Core E&S underwriting margins, poised to benefit under
Slide 11: Specialty Admitted: Growth With Limited Risk Retention
Specialty Admitted: Growth With Limited Risk Retention Fronting business continues to experience meaningful growth as recently added programs mature and expand • New programs added over the last 24 months are expected to continue to ramp into 2022. • Capital light, deal-driven business with limited
Slide 12: We Represent a Unique Investment Opportunity
We Represent a Unique Investment Opportunity 2021 Cat Losses % of Loss Ratio (1) Our focus on low volatility, niche casualty E&S business and prudent reinsurance 8.7% purchasing results in little catastrophe exposure, differentiating us from specialty peers 6.0% 4.2% 3.0% 1.5% 1.8% 0.7% 2020 E&S DWP
Slide 13: Capital Position
Capital Position Our balance sheet enables us to continue to capitalize on an extremely attractive P&C market Balance Sheet as of: Commentary Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Assets • Completed common equity raise in Q2 2021 and convertible preferred equity raise Total Invested Assets $2,197.
Slide 14: Investment Portfolio
Investment Portfolio The Company holds a conservative portfolio given its focus on underwriting risk, especially given current insurance conditions Investment Portfolio as of December 31, 2021 Commentary • Balanced portfolio focused on high quality fixed maturities, Total Cash and Investments (exclu
Slide 15: Key Investment Highlights
Key Investment Highlights Proven market leader with focus on the small and middle market; LargeMarket and Expanding Leading E&S Carrier one of the highest E&S concentrations with minimal property Addressable Market catastrophe exposure Capitalizing Large and Expanding onAddressable a ‘once in a Robu
Slide 16: Appendix: Q4 2021 Earnings
Appendix: Q4 2021 Earnings
Slide 17: Consolidated Performance
Consolidated Performance $ in millions, except per share figures % Commentary 4Q20 4Q21 Change Key Income Statement Items • 13% overall gross written premium growth, with Gross Written Premiums $359.7 $407.3 13% increases in E&S, Specialty Admitted and Casualty Net Written Premiums 202.2 218.0 8% Re
Slide 18: E&S Segment Performance
E&S Segment Performance $ in millions % Commentary 4Q20 4Q21 Change Key Segment Results • 12% gross written premium growth, including Gross Written Premiums $196.5 $220.6 12% 14% in Core E&S with continued strong Net Written Premiums 122.2 129.8 6% performance in excess casualty, allied health, Net
Slide 19: Specialty Admitted Segment Performance
Specialty Admitted Segment Performance $ in millions % Commentary 4Q20 4Q21 Change Key Segment Results • 9% gross written premium growth, including 11% Gross Written Premiums $104.9 $114.2 9% in Fronting and Programs driven by growth in Net Written Premiums 17.6 17.9 1% existing programs. Net Earned
Slide 20: Casualty Reinsurance Segment Performance
Casualty Reinsurance Segment Performance $ in millions % Commentary 4Q20 4Q21 Change Key Segment Results • Gross written premiums increased 24% Gross Written Premiums $58.3 $72.5 24% compared to the prior year quarter due to higher Net Written Premiums 62.4 70.3 13% renewal and new business and a ch
Slide 21: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation
Slide 22: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Underwriting Profit (Loss) 2017 2018 2019 2020 2021 Underwriting profit (loss) of the operating segments: Excess and Surplus Lines $29.7 $42.8 $19.2 $9.8 ($121.5) Specialty Admitted Insurance 3.2 7.0 5.9 4.2 9.7 Casualty Reinsurance (1.8) 5.1 (7.2) (18.4) (117.5) Tot
Slide 23: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Adjusted Net Operating (Loss) Income 2017 2018 2019 2020 2021 Income (loss) as reported $43.6 $63.8 $38.3 $4.8 ($172.8) Net realized and unrealized losses (gains) on investments 1.4 4.4 3.8 14.8 (13.3) Dividend withholding taxes 1.1 - - - - Other expenses 0.6 1.1 0.8
Slide 24: InvestorRelations@jrgh.net
InvestorRelations@jrgh.net
James River Group Holdings — Q4 2021 Earnings Presentation on 6ix