NASDAQ$JRVR

James River Group Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

James River reported strong investment income and profitable underwriting results from continuing operations.

James River Group Holdings reported a net income from continuing operations available to common shareholders of $11.9 million, or $0.31 per diluted share. The company's adjusted net operating income was $12.7 million, or $0.33 per diluted share, reflecting strong investment income and profitable underwriting results from continuing operations. The Group combined ratio was 99.3%, and the adjusted net operating return on tangible common equity was 14.9%.

  • Group combined ratio of 99.3% and adjusted net operating return on tangible common equity of 14.9%.
  • E&S segment combined ratio of 95.4% and positive renewal rate change of 9.1%.
  • Specialty Admitted Insurance segment combined ratio of 85.0%, with fronting and program gross written premium growth of 12.3% excluding the non-renewed workers' compensation program.
  • Net investment income increased 36.7% compared to the prior year quarter, with all asset classes reporting higher income.

Headline financials

Total Revenue

$188M

Previous: $238M-21.0%
EPS

$0.13

Previous: $0.53-75.5%
Combined Ratio

99.3%

Previous: 94.6%+5.0%
Expense Ratio

26.3%

Previous: 27.5%-4.4%
Loss Ratio

73.0%

Previous: 67.1%+8.8%
Net Investment Income

$24.9M

Previous: $25.2M-1.0%
Capital Expenditures

-$1.33M

Previous: -$2.17M+38.9%
Free Cash Flow

$6.3M

Previous: $21.5M-70.7%
Net Income

$7.63M

Previous: $23.7M-67.8%
Operating Income

-$10.5M

Previous: $127M-108.3%
Gross Profit

$59.1M

Previous: $211M-72.0%

Revenue & EPS history

James River · Revenue · Quarterly

$188M

Q2 2024-21%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

James River · $184M total across 2 segments · Q3 2023

  • Excess and Surplus Lines
    $158M+13.3%
  • Specialty Admitted Insurance
    $26.1M+46.3%

Forward guidance

The E&S LPT and ADC is effective January 1, 2024, but closed on July 2, 2024. As such, any applicable recoveries will be recognized beginning in the third quarter of 2024. As a result of the E&S LPT and ADC, the Company expects to recognize a reduction in pre-tax income of approximately $44.0 million in the third quarter of 2024.

Headwinds

  • The Company expects to recognize a reduction in pre-tax income of approximately $44.0 million in the third quarter of 2024.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-3.3%

Avg return

Earnings day

-5.5%

Avg return

5 days after

-6.3%

Avg return

30 days after

24%

12 / 49 earnings

Positive

+14.7%

Q3 2025

Best reaction

-28.4%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-23.6%-32.3%-35.7%
Q4 2025-6.5%-9.3%-14.2%
Q3 2025+14.7%+6.6%+15.3%
Q1 2025-1.2%-5.1%+19.3%
Q4 2024-28.4%-16.9%-17.6%
Q3 2024-24.3%-29.3%-30.4%
Q2 2024-8.3%-6.4%-11.4%
Q1 2024-7.9%-6.8%-12.5%
Q4 2023-5.6%-6.7%-12.1%
Q3 2023-6.5%-34.4%-37.3%
Q2 2023-8.1%-9.2%-17.8%
Q1 2023+4.4%+6.6%-2.8%
Q4 2022+8.7%+10.2%-6.6%
Q3 2022-5.3%-9.2%-4.5%
Q2 2022-1.3%+2.3%+0.0%
Q1 2022+6.6%+13.0%+12.3%
Q4 2021-19.3%-21.8%-8.6%
Q3 2021-2.0%-3.9%-20.0%
Q2 2021+4.5%+5.6%-0.5%
Q1 2021-27.6%-26.0%-24.3%
Q4 2020-1.9%-5.9%-7.1%
Q3 2020-4.4%-9.2%-9.9%
Q2 2020+2.0%+1.0%+6.2%
Q1 2020-3.5%-7.8%+5.2%
Q4 2019+5.9%+3.2%-33.6%
Q3 2019-1.3%-1.0%+14.5%
Q2 2019-2.1%-1.4%+2.9%
Q1 2019+3.0%+8.9%+5.6%
Q4 2018-3.0%-2.5%-5.5%
Q3 2018-3.8%-9.6%-3.7%
Q2 2018-0.2%-3.2%-1.1%
Q1 2018+5.3%+4.3%+6.8%
Q4 2017-13.2%-15.8%-14.0%
Q3 2017-2.7%-1.9%-4.1%
Q2 2017-0.6%-0.2%-0.7%
Q1 2017-1.7%-5.2%-9.1%
Q4 2016+4.8%+4.1%-2.2%
Q3 2016-2.0%-1.6%+3.8%
Q2 2016+0.8%+3.8%+9.8%
Q1 2016+5.5%
Q4 2013-0.6%
Q4 2015-5.7%
Q3 2014-2.2%
Q3 2015-2.2%
Q2 2014-0.4%
Q2 2015-0.4%
Q1 2014-0.5%
Q1 2015-0.5%
Q4 2014-0.5%
Q3 2013
Q2 2013
Q1 2013

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