James River Group Reports Q4 2024 Financial Results
James River Group has disclosed a net loss of $94 million available to common shareholders for the fourth quarter of 2024, which is an improvement from the $152 million net loss recorded in the same quarter of the previous year. The adjusted net operating loss for Q4 2024 was $40.8 million, a decline from the adjusted net operating income of $12.4 million in Q4 2023.
This change is largely due to the previously announced $52.8 million consideration paid 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.
In terms of premium activity, James River reported gross written premiums of $358.3 million for Q4 2024, while net written premiums stood at $114 million. Total revenues for the same quarter were $126.7 million, a decrease from the $218.1 million reported for Q4 2023.
For the entire year of 2024, the company recorded gross written premiums of $1.43 billion and net written premiums of $580 million. The net loss for the year remained consistent with 2023, at approximately $118 million. Total annual revenues reached $708 million, down from $812 million the previous year.
A notable highlight was strong net investment income of $93 million, marking a 10.8% increase compared to 2023. Additionally, the E&S segment’s gross written premium surpassed $1 billion for the second consecutive year, underscoring the firm’s commitment to its wholesale-driven franchise.
James River commented, “During the year, we executed several strategic initiatives, including the sale of JRG Re to refocus on our U.S. insurance operations, and we engaged in a $160 million combined loss portfolio transfer and adverse development cover for our E&S business. Our new strategic partnership with Enstar is expected to significantly reinforce our balance sheet, positioning us for attractive future returns.”
Frank D’Orazio, the company’s Chief Executive Officer, remarked, “2024 was both costly and transformative for James River. We have substantially de-risked our organization and completed an extensive strategic review, emerging with a renewed focus. The E&S market remains robust, and we anticipate substantial opportunities for responsible growth in 2025, capitalizing on the favorable rate environment.”
