James River Group Holdings, Inc. · NASDAQ:JRVR
James River — Corporate Update (February 2022)
7 slides from James River's corporate update, Feb 28, 2022
Slide 1: Strategic Actions Frequently Asked Questions
Strategic Actions Frequently Asked Questions February 28, 2022
Slide 2: Forward-Looking Statements
Forward - Looking Statements 2 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, intend, proje
Slide 3: Frequently Asked Questions: What do today's announcements mean?
Frequently Asked Questions 3 • James River Group Holdings, Ltd. (“James River” or the “Company”) has completed a detailed review of its Casualty Re segment reserves which resulted in $115 MM of reserve strengthening, primarily related to a limited number of treaties from underwriting years 2014 - 20
Slide 4: External validation of reserves and retrocessional reinsurance
Frequently Asked Questions 4 • In addition to the quarterly internal review and conclusions, we believe external reserve validation includes: ─ The retroactive retrocession agreement, which will incept within $6.8 MM of held reserves. ─ The $150 MM Gallatin Point convertible preferred investment. ─
Slide 5: Retrocession transaction terms and financial impact
Frequently Asked Questions 5 • James River will recognize an after - tax loss of $6.8 MM in connection with the transaction during the first quarter of 2022, which is expected to be reported as prior year reserve development within the Casualty Re segment. • As part of the transaction, James River w
Slide 6: Reserve review processes and form of capital raise
Frequently Asked Questions 6 • The Company will maintain its quarterly internal reserve review process and its consistent third and fourth quarter third party reserve reviews. • James River hired a new Chief Actuary in August 2021 with 37 years of deep casualty reserve experience gained from his pas
Slide 7: Is the Company confident in its capital position?
Is the Company confident in its capital position? Frequently Asked Questions 7 10 • The Company is confident in its capital position. ─ Pro forma for the capital raise, operating leverage is 1.13x and financial leverage is 26% as of 12/31/2021. • As of December 31, 2021, reserves for incurred but no
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