James River Group Holdings Reports 64.6% Decline in Net Income for Q2 2025

James River Group Holdings, Ltd. reported a decline in financial performance for the second quarter of 2025, with net income from continuing operations falling to $5.1 million, down 64.6% from $14.5 million in the same period last year. For the six months ended June 30, 2025, net income from continuing operations was $16.1 million, a decrease of 57.6% compared to $38.0 million in the prior year. The company’s total revenues for the second quarter were $174.8 million, a decrease of 7.1% from $188.3 million in the previous year, primarily driven by a reduction in net earned premiums, which fell to $152.6 million from $163.2 million.

The company experienced a significant drop in gross written premiums, which decreased by 8.3% to $378.0 million for the three months ended June 30, 2025, compared to $412.2 million in the prior year. This decline was attributed to a decrease in the Specialty Admitted Insurance segment, which saw gross written premiums fall by 35.0% to $77.6 million. In contrast, the Excess and Surplus Lines segment reported a modest increase of 2.6% in gross written premiums, reaching $300.4 million. The overall net retention ratio improved to 46.6% from 44.0% in the prior year, reflecting the company's strategic focus on underwriting profitability.

Operationally, the company has made strategic adjustments following the sale of its casualty reinsurance business, JRG Re, which closed on April 16, 2024. This sale has allowed James River to concentrate on its core insurance operations. The company has also entered into several reinsurance agreements, including a Combined Loss Portfolio Transfer and Adverse Development Cover with State National Insurance Company, which aims to mitigate risks associated with its casualty portfolio. The company’s total assets increased slightly to $5.02 billion as of June 30, 2025, compared to $5.01 billion at the end of 2024.

Looking ahead, James River Group Holdings anticipates continued challenges in the insurance market, particularly in the Specialty Admitted Insurance segment, which is expected to remain under pressure due to non-renewals and a focus on minimizing risk exposure. The company is committed to enhancing its underwriting performance and managing its investment portfolio effectively to navigate the current economic landscape. The outlook remains cautious, with management emphasizing the importance of maintaining strong capital reserves and compliance with regulatory requirements to support future growth.