James River Group Holdings, Inc. · NASDAQ:JRVR
James River — Q4 2024 Earnings Presentation
24 slides from James River's earnings presentation, Mar 4, 2025
Slide 1: Investor Presentation Fourth Quarter 2024
Investor Presentation Fourth Quarter 2024
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: A Niche Specialty P&C Insurer
A Niche Specialty P&C Insurer James River is focused on underwriting discipline across its exclusive E&S franchise and fronting business. ✓ Historically well-regarded franchise predominantly focused on small and medium sized commercial casualty for the Excess and Surplus lines market ✓ Actively repo
Slide 4: Key Investment Highlights – James River Rebuilt
Key Investment Highlights – James River Rebuilt Proven market leader with focus on the small and middle market; LargeMarket Leading Niche Excess and Expanding and Surplus (“E&S”) Carrier one of the highest E&S concentrations across public insurers with Addressable Market minimal property catastrophe
Slide 5: Complete Enterprise Refocus and Balance Sheet Rebuild
Complete Enterprise Refocus and Balance Sheet Rebuild James River has made outsized strides to refocus the organization around its core strengths, centered around risk management, performance monitoring and a renewed sense of underwriting culture, while significantly upgrading its Board and Manageme
Slide 6: The Market We Operate in is Highly Attractive
The Market We Operate in is Highly Attractive U.S. Excess & Surplus Lines DWP ($BN) (1) E&S industry DWP has grown at double digit rates the past 5 years driven by $86.5 rising renewal rates and changes in risk appetite. $75.5 2013 – 2017 Average Growth Rate: 4% $62.9 $47.6 $40.3 $34.6 $28.9 $29.8 $
Slide 7: Broad Expertise Permits Us to 'Pick Our Spots' in E&S
Broad Expertise Permits Us to ‘Pick Our Spots’ in E&S Our high caliber underwriting team, aided by the use of technology, possess significant expertise to prudently manage a diversified, profitable and growing portfolio. 2024 E&S Gross Written Premium Breakdown Diverse, Niche Portfolio • Our goal is
Slide 8: E&S Has Demonstrated Cautious but Healthy Growth, Consistent Loss Ratios
E&S Has Demonstrated Cautious but Healthy Growth, and Consistent Initial Accident Year Loss Ratios • James River has grown more cautiously as compared to the E&S industry average, as ERM and underwriting focus has become deeply embedded in the culture, and selected accounts and risks have been shed.
Slide 9: E&S Renewal Opportunities Continue to Grow
E&S Renewal Opportunities Continue to Grow Renewal submissions have continued to grow through the hard market, giving us the best opportunity to more efficiently quote and bind attractive risks that we are most familiar with while taking advantage of a strong rate environment. • The steady growth in
Slide 10: Specialty Admitted: Maintaining Underwriting Discipline on a Capital Light Business Model
Specialty Admitted: Maintaining Underwriting Discipline on a Capital Light Business Model The fronting business has generated attractive margins and consistent returns on a limited capital allocation. • Fronting business is a capital light, deal-driven business with limited risk retention supported
Slide 11: Recognitions
Recognitions Voluntary employee turnover was low in 2024 as the Company continues to be recognized as a top employer in our sector. Our employees continue to be the greatest asset of James River. Top Workplaces USA Awards Top Workplaces Regional Awards Top Workplaces Industry Awards Top Workplaces C
Slide 12: 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. • 90% of our E&S policy counts have limits below $1 M
Slide 13: Defensive and Proactive Underwriting Actions Over the Last Three Years
We Have Driven a Number of Defensive and Proactive Underwriting Actions Over the Last Three Years • Representative actions include – • Broad deployment of exclusions and sub-limits, such as Firearms, Cyber and Assault & Deep and Broad Battery (A&B). Underwriting • Revised underwriting guidelines and
Slide 14: Claims Counts Show a Pervasive, Declining Trend
Claims Counts Show a Pervasive, Declining Trend 12/31/24 Core E&S (1) Accident Net Earned Number of Months Year Premium ($) 12 24 36 48 60 72 84 96 108 120 2015 186.9 1,613 2,048 2,272 2,405 2,499 2,552 2,598 2,627 2,659 2,693 2016 200.2 1,874 2,455 2,723 2,890 2,977 3,051 3,111 3,218 3,291 2017 213
Slide 15: Reported Loss Ratios Appear to Support Green Shoots
Reported Loss Ratios Appear to Support Green Shoots 12/31/24 Core E&S (1) Accident Number of Months Year 12 24 36 48 60 72 84 96 108 120 2015 8.5% 20.0% 31.3% 43.5% 51.4% 56.2% 58.2% 60.9% 61.8% 63.1% 2016 8.8% 23.6% 40.7% 51.5% 54.9% 60.8% 66.1% 68.5% 70.8% 2017 9.8% 24.4% 36.8% 44.3% 53.5% 60.1% 6
Slide 16: Investment Portfolio Overview
Investment Portfolio Overview The Company holds a conservative portfolio given its focus on underwriting risk. Investment Portfolio as of December 31, 2024 $93.1 Million $22.0 Million Total Cash and Investments (excluding restricted cash): $1,915 MM Full Year 2024 Net Fourth Quarter 2024 Net Investm
Slide 17: 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: Commentary 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Assets • Balance sheet characterized by low financial Total Invested Assets $1,705.9 $1,706.8 $1,490.1 $1,575.
Slide 18: E&S Legacy Reinsurance Agreements
E&S Legacy Reinsurance Agreements The State National and Cavello Bay reinsurance agreements cover all E&S casualty reserves inclusive of accident years 2010 through 2023, except those related to the Uber/Raiser LPT. $1,258.7 MM $116.2 million of gross aggregate limit ADC Limit $75.0 MM remains acros
Slide 19: Appendix
Appendix
Slide 20: Appendix: Underwriting Performance Ratios & Non-GAAP Reconciliation
Appendix: Underwriting Performance Ratios & Non-GAAP Reconciliation
Slide 21: Underwriting Performance Ratios
Underwriting Performance Ratios Underwriting Performance Ratios 2023 2024 4Q23 4Q24 Excess and Surplus Lines Loss Ratio 68.9% 87.6% 73.2% 118.4% Impact of Retroactive Reinsurance 0.8% 7.3% (0.8)% 30.9% Loss Ratio Including Impact of Retroactive Reinsurance 69.7% 94.9% 72.4% 149.3% Combined Ratio 91.
Slide 22: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation 12 Months Ended December 31, Underwriting (Loss) Profit 2021 2022 2023 2024 4Q23 4Q24 Underwriting (Loss) Profit of the Operating Segments: Excess and Surplus Lines ($121.5) $83.1 $54.3 ($77.5) $8.9 ($52.2) Specialty Admitted Insurance 9.7 4.2 4.1 6.9 2.2 0.9 Casualt
Slide 23: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation 12 Months Ended December 31, Tangible Equity & Tangible Common Equity 2021 2022 2023 2024 Shareholders’ Equity $725.4 $553.8 $534.6 $460.9 Plus: Series A Redeemable Preferred Shares - 144.9 144.9 133.1 Plus: Deferred Reinsurance Gain - 20.1 20.7 58.0 Less: Goodwill a
Slide 24: InvestorRelations@james-river-group.com
InvestorRelations@james-river-group.com
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