James River Group Holdings, Inc. · NASDAQ:JRVR
James River — Q2 2022 Earnings Presentation
24 slides from James River's earnings presentation, Aug 2, 2022
Slide 1: Investor Presentation Second Quarter 2022
Investor Presentation Second Quarter 2022
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 margins from our niche casualty focused underwriting risks, while g
Slide 5: Our Business
Our Business • We are a specialty, low volatility underwriting company with an attractive, sizeable Excess & Surplus (“E&S”) franchise and scaling “capital light” fronting business experiencing an extremely robust market for property and casualty risk. • Little catastrophe or cyber exposure, and eff
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 4 years driven by rising renewal rates and changes in risk appetite $62.9 2012 – 2017 Average Growth Rate: 5% $47.6 $40.3 $34.6 $29.8 $29.9 $31.5 $27.3 $28.9 $25.4 2012
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 flow of skillfully underwritten risks • 13 separate underwriting divisions focused on growth in very attractive markets. • Renewal rates incre
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 • Capital light, deal-driven business with limited risk retention. • Lower risk fee-income business complements our highly profitable Core E
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% 2021 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: 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 Commentary Assets • Completed common equity raise in 2Q 2021 and issuance of Series A preferred Total Invested Assets $2,202.3 $2
Slide 14: Investment Portfolio
Investment Portfolio The Company holds a conservative portfolio given its focus on underwriting risk Investment Portfolio as of June 30, 2022 Commentary • Balanced portfolio focused on high quality fixed maturities, Total Cash and Investments (excluding restricted cash): $2,389 MM with small allocat
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 onAddressable a ‘once in a Robust E&S market poised
Slide 16: Appendix: 2Q 2022 Earnings
Appendix: 2Q 2022 Earnings
Slide 17: Consolidated Performance
Consolidated Performance $ in millions, except per share figures % Commentary 2Q21 2Q22 Change Key Income Statement Items • 5% increase in gross written premium, with Gross Written Premium $380.1 $399.7 5% continued growth in E&S partially offset by an Net Written Premium 193.6 194.7 1% expected red
Slide 18: E&S Segment Performance
E&S Segment Performance $ in millions % Commentary 2Q21 2Q22 Change Key Segment Results • Gross written premium growth of 25%, including Gross Written Premium $214.0 $266.6 25% double digit growth in ten of thirteen underwriting Net Written Premium 135.2 166.0 23% divisions. Net Earned Premium 117.9
Slide 19: Specialty Admitted Segment Performance
Specialty Admitted Segment Performance $ in millions % Commentary 2Q21 2Q22 Change Key Segment Results • Gross written premium declined 3%, reflecting a Gross Written Premium $129.2 $125.0 (3)% 17% reduction in individual risk workers’ Net Written Premium 21.5 18.4 (14)% compensation and a 2% declin
Slide 20: Casualty Reinsurance Segment Performance
Casualty Reinsurance Segment Performance $ in millions % Commentary 2Q21 2Q22 Change Key Segment Results • Gross written premium decreased 78% compared Gross Written Premium $36.9 $8.1 (78)% to the prior year quarter due to the non-renewal of Net Written Premium 36.9 10.3 (72)% several treaties and
Slide 21: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation
Slide 22: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation 12 Months Ended Dec 31, Underwriting Profit (Loss) 2019 2020 2021 2Q21 2Q22 Underwriting profit (loss) of the operating segments: Excess and Surplus Lines $19.2 $9.8 ($121.5) $26.9 $22.3 Specialty Admitted Insurance 5.9 4.2 9.7 2.1 1.3 Casualty Reinsurance (7.2) (18.
Slide 23: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation 12 Months Ended Dec 31, Adjusted Net Operating (Loss) Income 2019 2020 2021 2Q21 2Q22 Income (loss) available to common shareholders $38.3 $4.8 ($172.8) $20.8 $5.0 Net realized and unrealized losses (gains) on investments 3.8 14.8 (13.3) (2.7) 15.0 Other expenses 0.8
Slide 24: InvestorRelations@jrgh.net
InvestorRelations@jrgh.net
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