NASDAQ$JRVR

James River Group Holdings Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

James River reported a net loss for Q4 2020, impacted by unfavorable development in the E&S and Casualty Reinsurance segments. However, the company highlighted strong growth in Core E&S and opportunities in the Specialty Admitted Insurance segment.

James River Group Holdings reported a net loss of $20.3 million for the fourth quarter of 2020, compared to a net income of $20.5 million for the same period in 2019. The adjusted net operating loss was $29.0 million, compared to an adjusted net operating income of $23.3 million in the prior year. The results were impacted by unfavorable reserve development in the E&S and Casualty Reinsurance segments.

  • 39% growth in Core (excluding Commercial Auto) Excess and Surplus Lines ("E&S") Gross Written Premium and 9.3% increase in E&S renewal pricing.
  • Net Investment Income of $22.2 million, an increase of 7%, or $1.4 million.
  • $62.3 million of unfavorable development in the E&S segment, inclusive of $75.8 million of unfavorable development in Commercial Auto and $13.5 million of favorable development in Core E&S.
  • Additionally, there was $24.7 million of unfavorable development in the Casualty Reinsurance segment

Headline financials

Total Revenue

$159M

Previous: $221M-28.0%
EPS (adj)

-$0.95

Previous: $0.76-225.0%
Combined Ratio

131.0%

Previous: 93.8%+39.7%
Expense Ratio

19.9%

Previous: 16.4%+21.3%
Loss Ratio

111.1%

Previous: 77.4%+43.5%
Net Investment Income

$22.2M

Previous: $20.8M+6.8%
Capital Expenditures

$234K

Previous: $77K+203.9%
Free Cash Flow

-$52M

Previous: $1.28B-104.1%
Net Income

-$20.3M

Previous: $20.5M-199.0%
Operating Income

-$17.4M

Previous: $28.8M-160.2%
Gross Profit

$503M

Previous: $736M-31.7%
Cash & Equivalents

$162M

Previous: $207M-21.6%
Total Assets

$5.06B

Previous: $5.02B+0.8%
Stock-Based Comp

$7.63M

Previous: $7.18M+6.2%

Revenue & EPS history

James River · Revenue · Quarterly

$159M

Q4 2020-28%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

James River · $124M total across 2 segments · Q4 2020

  • Excess and Surplus Lines
    $110M-34.8%
  • Specialty Admitted Insurance
    $14.8M+1.3%

Forward guidance

James River is positioned to capitalize on favorable market conditions in its Core E&S business and fronting business within the Specialty Admitted Insurance segment.

Tailwinds

  • Core E&S business is operating in its most attractive rate environment in recent memory.
  • Fronting business within the Specialty Admitted Insurance segment continues to see new opportunities for profitable growth with new partners.
  • Submission volume in E&S remains strong.
  • The 9.3% renewal rate increase was the 16th consecutive quarter of rate increases.
  • Fee income in fronting business grew 22% during 2020.

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 Q4 2020

Historical avgQ4 2020

-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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