NASDAQ$JRVR

James River Group Holdings Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

James River reported a net loss for the third quarter of 2024, but strategic actions were taken to de-risk the E&S franchise.

James River Group Holdings reported a net loss of $42 million for Q3 2024, or $1.10 per share. The adjusted net operating loss was $28.2 million, primarily due to excess consideration paid in connection with the E&S ADC. Strategic actions were announced, including a partnership with Enstar Group and amendments to convertible preferred shares held by Gallatin Point Capital.

  • E&S segment gross written premium grew by 6% with a renewal rate change of 8.6%.
  • Specialty Admitted Insurance segment had a combined ratio of 91.3% with fronting and program gross written premium growth of 8.7% excluding non-renewed workers' compensation programs.
  • Net investment income increased by 8.1% compared to the prior year quarter.
  • Strategic partnership with Enstar Group Limited was commenced, including an equity investment and adverse development reinsurance agreement.

Headline financials

Total Revenue

$191M

Previous: $233M-18.0%
EPS

-$1.10

Previous: $0.48-329.2%
Combined Ratio

135.5%

Previous: 96.2%+40.9%
Expense Ratio

31.4%

Previous: 27.6%+13.8%
Loss Ratio

104.1%

Previous: 68.6%+51.7%
Net Investment Income

$23.6M

Previous: $26.3M-10.4%
Capital Expenditures

-$2.16M

Previous: -$3.31M+34.8%
Free Cash Flow

-$41.5M

Previous: $16.2M-355.7%
Net Income

-$39.4M

Previous: $19.6M-301.4%
Operating Income

-$90.1M

Previous: $122M-173.7%
Gross Profit

-$11.2M

Previous: $208M-105.4%

Revenue & EPS history

James River · Revenue · Quarterly

$191M

Q3 2024-18%vs Q3 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 company intends to pursue a plan to redomicile to the United States during 2025 and expects to reduce its effective tax rate closer to the US statutory rate thereafter.

Tailwinds

  • Addition of Enstar as a significant shareholder
  • Strategic partnership with Enstar
  • Continued commitment of Gallatin Point
  • E&S franchise is significantly de-risked
  • E&S franchise is well positioned to take advantage of strong market support

Headwinds

  • Uncertainty of estimating reserves
  • Potential loss of key members of management
  • Adverse economic factors
  • Exposure to credit risk, interest rate risk
  • Reliance on a select group of brokers and agents

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 Q3 2024

Historical avgQ3 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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