James River Group Holdings, Inc. · NASDAQ:JRVR
James River — Q1 2022 Earnings Presentation
24 slides from James River's earnings presentation, May 10, 2022
Slide 1: Investor Presentation First Quarter 2022
Investor Presentation First 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 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 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 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 • 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: Commentary 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Assets • Completed common equity raise in 2Q 2021 and issuance of Series A preferred Total Invested Assets $2,159.0 $2
Slide 14: Investment Portfolio
Investment Portfolio The Company holds a conservative portfolio given its focus on underwriting risk Investment Portfolio as of March 31, 2022 Commentary • Balanced portfolio focused on high quality fixed maturities, Total Cash and Investments (excluding restricted cash): $2,395 MM with small alloca
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: 1Q 2022 Earnings
Appendix: 1Q 2022 Earnings
Slide 17: Consolidated Performance
Consolidated Performance $ in millions, except per share figures % Commentary 1Q21 1Q22 Change Key Income Statement Items • 4% decline in gross written premium, with continued Gross Written Premiums $373.3 $360.0 (4)% growth in E&S offset by an expected reduction in Net Written Premiums 174.6 175.9
Slide 18: E&S Segment Performance
E&S Segment Performance $ in millions % Commentary 1Q21 1Q22 Change Key Segment Results • Gross written premium growth of 13%, including Gross Written Premiums $181.4 $204.3 13% double digit growth in ten of thirteen underwriting Net Written Premiums 108.4 125.7 16% divisions. Net Earned Premiums 11
Slide 19: Specialty Admitted Segment Performance
Specialty Admitted Segment Performance $ in millions % Commentary 1Q21 1Q22 Change Key Segment Results • Gross written premium declined 1%, reflecting a Gross Written Premiums $127.0 $125.7 (1)% 4% reduction in individual risk works’ Net Written Premiums 22.0 20.2 (8)% compensation and a 1% decline
Slide 20: Casualty Reinsurance Segment Performance
Casualty Reinsurance Segment Performance $ in millions % Commentary 1Q21 1Q22 Change Key Segment Results • Gross written premium decreased 54% compared Gross Written Premiums $64.9 $29.9 (54)% to the prior year quarter due to the non-renewal of Net Written Premiums 44.2 29.9 (32)% several treaties.
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 1Q21 1Q22 Underwriting profit (loss) of the operating segments: Excess and Surplus Lines $19.2 $9.8 ($121.5) ($150.9) $21.5 Specialty Admitted Insurance 5.9 4.2 9.7 1.3 0.2 Casualty Reinsurance (7.2) (
Slide 23: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation 12 Months Ended Dec 31, Adjusted Net Operating (Loss) Income 2019 2020 2021 1Q21 1Q22 Income (loss) available to common shareholders $38.3 $4.8 ($172.8) ($103.5) $9.3 Net realized and unrealized losses (gains) on investments 3.8 14.8 (13.3) (5.8) 4.2 Other expenses 0
Slide 24: InvestorRelations@jrgh.net
InvestorRelations@jrgh.net
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