James River Group Reports $8.9 Million Net Loss in Q1 2026, Revenue Declines 12.1%

James River Group Holdings, Inc. reported a net loss of $8.9 million for the first quarter of 2026, a significant decline from a net income of $9.6 million in the same period of 2025. The company's total revenues decreased by 12.1% to $151.4 million, down from $172.3 million year-over-year. This decline was primarily driven by a 19.7% drop in gross written premiums, which fell to $236.4 million from $294.4 million. The company attributed the decrease in premiums to a strategic focus on profitable growth and a challenging market environment, particularly in the Specialty Admitted Insurance segment, which saw a 70.3% reduction in gross written premiums.

In terms of operational performance, the Excess & Surplus Lines segment generated gross written premiums of $212.3 million, a slight decrease of 0.4% compared to the previous year. However, the Specialty Admitted Insurance segment's gross written premiums plummeted to $24.1 million, reflecting a selective approach to new fronting opportunities and the non-renewal of several programs. The company's net retention ratio improved to 50.8%, up from 43.5% in the prior year, indicating a strategic shift towards retaining more of the business it underwrites.

The company's underwriting results reflected a loss of $6.2 million, resulting in a combined ratio of 104.6%, compared to an underwriting profit of $721,000 and a combined ratio of 99.5% in the prior year. The loss ratio increased to 69.2%, up from 66.8%, primarily due to higher current accident year loss ratios and the impact of premium adjustments. Additionally, the expense ratio rose to 35.4% from 32.7%, driven by the aforementioned premium adjustments and lower ceding commissions.

James River Group's investment income increased by 6.6% to $21.3 million, supported by growth in private investments, although the company faced net realized and unrealized losses on investments totaling $6.6 million. The company’s total assets decreased to $4.76 billion as of March 31, 2026, down from $4.86 billion at the end of 2025. The company also completed a domestication process, changing its jurisdiction from Bermuda to Delaware, which is expected to enhance operational efficiencies and lower its effective tax rate.

Looking ahead, James River Group Holdings anticipates continued challenges in the insurance market, particularly in the Specialty Admitted Insurance segment, while focusing on improving underwriting performance and maintaining a strong capital position. The company remains committed to its strategic objectives of generating compelling returns on equity while managing risk effectively.