James River Group Holdings, Inc. · NASDAQ:JRVR
James River — Q3 2021 Earnings Presentation
22 slides from James River's earnings presentation, Nov 3, 2021
Slide 1: Investor Presentation Third Quarter 2021
Investor Presentation Third 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 equity and generate sector leading value creation ✓ Renew our unrelenting focus on underwriting profitability ✓ Generate superior underwriting margins from our niche casualty focused risk, while growing both non-ris
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 • Little catastrophe or cyber exposure, and effective use of reinsurance to limit volatility • Our focus is sma
Slide 6: Attractive Growth Businesses
Attractive Growth Businesses • Attractive E&S market poised for continued profitable growth as new businesses replace failed businesses in the wake of COVID-19, and are forced to find insurance coverage in the E&S market given their lack of insurance loss history • Our primary businesses (Core E&S a
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 casualty pricing has not been keeping up with loss cost inflation for years. Admitte
Slide 8: The E&S Market is Highly Attractive
The E&S Market is Highly Attractive U.S. Excess & Surplus Lines DWP ($M) E&S industry DPW has grown at double digit rates the past 3 years driven by rising renewal rates and 18% changes in risk appetite $47.6 16% 2012 – 2017 Average Growth Rate: 5% 10% $40.3 $34.6 $29.9 $31.5 $28.9 $29.8 $27.3 $25.4
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 focusing growth on most attractive markets •
Slide 10: Specialty Admitted: Growth in Process
Specialty Admitted: Growth in Process • Fronting business continues to experience meaningful growth as recently added programs mature and expand • Six new programs added since Q3 2020 will continue to ramp into 2022 • Capital light, deal-driven business with limited risk retention • Lower risk fee-i
Slide 11: 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 8% prudent reinsurance purchasing results in little catastrophe exposure, differentiating us from specialty peers 6% 4% 2% 3% 1% 0% 2020 E&S DWP as a % of tot
Slide 12: Capital Position
Capital Position Our balance sheet enables us to continue to capitalize on tailwinds from a hard P&C market and a re-opening economy Commentary Q4 2020 Q1 2021 Q2 2021 Q3 2021 Assets • Completed equity raise in May 2021 has Total Invested Assets $2,197.1 $2,159.0 $2,202.3 $2,061.4 bolstered the bala
Slide 13: Investment Portfolio
Investment Portfolio Investment Portfolio (as of September 30, 2021) Commentary Total Cash and Investments (excluding restricted cash): $2,281.9M • Balanced portfolio focused on high quality fixed maturities, with small allocation to unique strategies to enhance returns 10% Fixed Maturity Securities
Slide 14: Appendix: Q3 2021 Earnings
Appendix: Q3 2021 Earnings
Slide 15: Consolidated Performance
Consolidated Performance $ in millions, except per share figures % Commentary 3Q20 3Q21 Change Key Income Statement Items • 11% overall gross written premium growth, with Gross Written Premiums $311.9 $346.6 11% increases in E&S and Specialty Admitted partially Net Written Premiums 145.2 158.2 9% of
Slide 16: E&S Segment Performance
E&S Segment Performance $ in millions % Commentary 3Q20 3Q21 Change Key Segment Results • 21% gross written premium growth, including Gross Written Premiums $179.5 $217.7 21% 18% in Core E&S Net Written Premiums 109.2 127.9 17% • Net written and net earned premium growth was Net Earned Premiums 104.
Slide 17: Specialty Admitted Segment Performance
Specialty Admitted Segment Performance $ in millions % Commentary 3Q20 3Q21 Change Key Segment Results • 8% gross written premium growth, including 12% Gross Written Premiums $112.6 $121.2 8% in Fronting and Programs driven by new Net Written Premiums 16.2 22.6 40% programs Net Earned Premiums 15.0
Slide 18: Casualty Reinsurance Segment Performance
Casualty Reinsurance Segment Performance $ in millions % Commentary 3Q20 3Q21 Change Key Segment Results • Gross written premiums declined 61% compared Gross Written Premiums $19.8 $7.8 (61)% to the prior year quarter due to a change in Net Written Premiums 19.8 7.8 (61)% renewal period for one trea
Slide 19: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation
Slide 20: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Underwriting Profit (Loss) YTD Q3 YTD Q3 2017 2018 2019 2020 2020 2021 Underwriting profit (loss) of the operating segments: Excess and Surplus Lines $29.7 $42.8 $19.2 $9.8 $39.8 ($145.6) Specialty Admitted Insurance 3.2 7.0 5.9 4.2 2.3 6.5 Casualty Reinsurance (1.8)
Slide 21: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation YTD Q3 YTD Q3 Adj. Net Operating Income (Loss) 2017 2018 2019 2020 2020 2021 Income (loss) as reported $43.6 $63.8 $38.3 $4.8 $25.1 ($106.5) Net realized inv. (gains) losses 1.4 4.4 3.8 14.8 23.6 (11.9) Dividend withholding taxes 1.1 - - - - - Other expenses 0.6 1.1
Slide 22: InvestorRelations@jrgh.net
InvestorRelations@jrgh.net
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