James River Group Reports Financial Results for Q4 2024
James River Group has announced its financial results for the fourth quarter of 2024, revealing a net loss available to common shareholders of $94 million. This represents a notable improvement compared to the net loss of $152 million recorded in the same quarter of the previous year.
In terms of adjusted net operating results, the company reported a loss of $40.8 million for Q4 2024. This contrasts with an adjusted net operating income of $12.4 million in the last quarter of 2023. The decline is largely attributed to a previously disclosed payment of $52.8 million related to the Excess and Surplus Lines (E&S) adverse development reinsurance contract with Cavello Bay Reinsurance Limited, a subsidiary of Enstar Group Limited, finalized on December 23, 2024.
For Q4 2024, James River’s gross written premiums amounted to $358.3 million, with net written premiums reaching $114 million. The company reported total revenues of $126.7 million for the quarter, down from $218.1 million in Q4 2023.
Annual Performance Overview
Looking at the full year of 2024, James River’s gross written premiums were $1.43 billion, while net written premiums totaled $580 million. The net loss for the year was approximately $118 million, consistent with the previous year’s results. Total revenues for 2024 were $708 million, a decrease from $812 million in 2023. An increase in net investment income by 10.8% to $93 million contributed positively to the revenue figures.
The E&S segment achieved gross written premiums exceeding $1 billion for the second consecutive year, underscoring the company’s focus on its wholesale-driven franchise.
Strategic Developments
Throughout 2024, James River executed several strategic initiatives, including the completion of the sale of JRG Re, concentrating its efforts on U.S. insurance operations. The firm also entered into a $160 million combined loss portfolio transfer and adverse development cover for its E&S business and initiated a new strategic partnership with Enstar. These actions are expected to significantly bolster the company’s balance sheet and position it for attractive returns moving forward.
Frank D’Orazio, Chief Executive Officer of James River, remarked, “2024 was a costly yet transformative year for our company. We have substantially de-risked the organization and concluded a comprehensive strategic review, emerging with a renewed focus.”
He further stated, “The E&S market remains robust, and we anticipate that 2025 will present significant opportunities for responsible growth, capitalizing on favorable rate conditions.”
