James River Group Holdings, Inc. · NASDAQ:JRVR
James River — Q1 2025 Earnings Presentation
21 slides from James River's earnings presentation, May 6, 2025
Slide 1: Q1 2025 Investor Presentation
Q1 2025 Investor Presentation May 2025
Slide 2: Disclosure
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: A Niche Specialty Insurer with a Diversified E&S Platform
A Niche Specialty Insurer with a Diversified E&S Platform James River is well positioned for sustainable profitability and capital discipline $1.4 Billion Strong Start to 2025 with an Excess & Surplus (“E&S”) Gross Written Premium(1) Market Poised for Profitable Growth ✓ Adjusted Net Operating Incom
Slide 4: Company Milestones
Enterprise Refocus and Balance Sheet Rebuild James River has refocused the Company around its core strengths; risk management, performance monitoring, and underwriting Raiser / Uber $84 MM Core E&S reserve additions Frank D’Orazio joins Unlimited Loss during 3Q24 James River Portfolio Transfer E&S s
Slide 5: James River's Focus is the Excess & Surplus Lines Market
James River’s Focus is the Excess & Surplus Lines Market We are one of the largest and most concentrated public companies in E&S exposure Most Concentrated E&S Companies(1) – 2024 Direct Written Premium 100% 85% (2) 76% 42% 29% 25% 24% 16% 9% 8% $1.9 BN $332 MM $1.1 BN $848 MM $4.1 BN $3.8 BN $2.2 B
Slide 6: E&S Market: Significant Long-Term Growth and Pricing Tailwinds
E&S Market: Significant Long-Term Growth and Pricing Tailwinds E&S industry DWP has grown exponentially in recent years driven by rising renewal rates and changes in risk appetite U.S. Excess & Surplus Lines DWP ($BN) (1) $98.2 $86.5 $75.5 $62.9 $47.6 $40.3 $34.6 $29.8 $29.9 $31.5 $27.3 $28.9 2013 2
Slide 7: Diversified E&S Platform Enables Opportunistic Growth and Prudent Risk Selection
Diversified E&S Platform Enables Opportunistic Growth and Prudent Risk Selection E&S Gross Written Premium Breakdown Key Drivers 2% 2% 2% 1% ✓ Wholesaler only focus with loyal following 3% 3% ✓ Active portfolio management approach Excess Casualty 32% drives opportunistic underwriting General Casualt
Slide 8: Selective Growth Driven by Strong ERM & Underwriting Discipline
Selective Growth Driven by Strong ERM & Underwriting Discipline James River has grown cautiously, driven by a strong ERM and underwriting culture, with selective account and risk reductions ✓ Under our CEO’s leadership, we have strengthened our underwriting culture, emphasizing discipline and risk s
Slide 9: Record E&S Submissions Reflect Significant Growth Opportunities
Record E&S Submissions Reflect Significant Growth Opportunities Record E&S segment submissions is a sign of a healthy market with significant opportunities 7.8% 91k ✓ We control our E&S segment underwriting decisions in an 1Q25 Renewal Rate Change 1Q25 Submissions environment where submissions are g
Slide 10: Reinsurance Strategy Provides Meaningful Volatility Mitigation
Reinsurance Strategy Provides Meaningful Volatility Mitigation • The combination of limit profile, underwriting discipline and reinsurance strategy yields meaningful protection across our E&S book, most notably in our Excess Casualty sub segment. • 80% of our E&S policy counts have gross limits belo
Slide 11: $116.2 MM of Legacy Coverage Protects E&S Casualty Reserves
$116.2 MM of Legacy Coverage Protects E&S Casualty Reserves(1) Legacy adverse development covers protect over 90% of total subject E&S IBNR inclusive of accident years 2010 – 2023 $1,258.7 MM ADC Limit $75.0 MM Consideration $1,183.7 MM ADC Limit $160.0 MM Ability to increase subject IBNR over Consi
Slide 12: Claims Counts Show a Pervasive, Declining Trend
Claims Counts Show a Pervasive, Declining Trend Reported claim counts have declined significantly despite meaningful NEP increases since 2020 3/31/25 Core E&S (1) Accident Net Earned Number of Months Year Premium ($) 3 15 27 39 51 63 75 87 99 111 123 2015 $186.9 284 1,799 2,120 2,310 2,433 2,518 2,5
Slide 13: Reported Loss Ratios Appear to Support Green Shoots
Reported Loss Ratios Appear to Support Green Shoots Reported loss ratios have meaningfully trended down as the portfolio has been refocused 3/31/25 Core E&S (1) Accident Number of Months Year 3 15 27 39 51 63 75 87 99 111 123 2015 0.8% 10.7% 22.9% 32.9% 46.5% 52.5% 56.5% 58.6% 60.9% 62.2% 63.4% 2016
Slide 14: Specialty Admitted Will Mitigate Risk with Low Net Retention
Specialty Admitted Will Mitigate Risk with Low Net Retention The capital light platform is positioned to take advantage of attractive profitable opportunities 7% $138 Million $379 Million 27% Net retention across in force Net Reserve Base(1) Gross Written Premium(2) Of Company Gross Written programs
Slide 15: Capital Position
Capital Position Our strong balance sheet enables us to continue to capitalize on an extremely attractive P&C market Balance Sheet as of: 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 Commentary Assets • Strong balance sheet with low financial Total Invested Assets $1,706.8 $1,490.1 $1,575.1 $1,552.4 $1,6
Slide 16: A Stable, Yield Generating Investment Portfolio
A Stable, Yield Generating Investment Portfolio Emphasis on high quality fixed maturities and consistent yield at attractive levels Investment Portfolio as of March 31, 2025 $90.5 Million $20.0 Million Cash and Cash LTM 1Q25 Net Investment First Quarter 2025 Net Equivalents (excluding Income Investm
Slide 17: Recognitions
Recognitions Employees are our greatest assets; turnover has declined two consecutive years Top Workplaces USA Awards Top Workplaces Regional Awards Top Workplaces Industry Awards Top Workplaces Cultural Excellence Awards Note: Top Workplaces is the nation’s leading employer recognition program that
Slide 18: Appendix: Underwriting Performance Ratios & Non-GAAP Reconciliation
Appendix: Underwriting Performance Ratios & Non-GAAP Reconciliation
Slide 19: Underwriting Performance Ratios
Underwriting Performance Ratios Underwriting Performance Ratios 2023 2024 1Q24 1Q25 Excess and Surplus Lines Loss Ratio 68.9% 87.6% 64.3% 64.8% Impact of Retroactive Reinsurance 0.8% 7.3% (2.7)% (1.4)% Loss Ratio Including Impact of Retroactive Reinsurance 69.7% 94.9% 61.6% 63.4% Combined Ratio 91.1
Slide 20: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation 12 Months Ended December 31, Underwriting Profit (Loss) 2021 2022 2023 2024 1Q24 1Q25 5 Underwriting (Loss) Profit of the Operating Segments: Excess and Surplus Lines ($121.5) $83.1 $54.3 ($77.5) $18.5 $11.7 Specialty Admitted Insurance 9.7 4.2 4.1 6.9 0.8 (0.3) Casu
Slide 21: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation 12 Months Ended December 31, Tangible Equity & Tangible Common Equity 2021 2022 2023 2024 1Q24 1Q25 Shareholders’ Equity $725.4 $553.8 $534.6 $460.9 $539.5 $484.5 Plus: Series A Redeemable Preferred Shares - 144.9 144.9 133.1 144.9 133.1 Plus: Deferred Reinsurance Ga
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