James River Group Holdings Reports 14.3% Revenue Decline in Q1 2025

James River Group Holdings, Ltd. reported a decline in financial performance for the first quarter of 2025, with total revenues of $172.3 million, down 14.3% from $201.1 million in the same period last year. The company recorded net income of $9.6 million, a decrease of 37.8% compared to $15.4 million in the prior year. The decline in revenue was primarily attributed to a decrease in net earned premiums, which fell to $151.9 million from $171.7 million, reflecting a 11.5% drop. The company’s underwriting profit also decreased significantly, falling to $721,000 from $8.1 million, resulting in a combined ratio of 99.5%, up from 95.3% in the previous year.

The company experienced a notable reduction in gross written premiums, which totaled $294.4 million, down 11% from $330.8 million in the first quarter of 2024. The Excess and Surplus Lines segment, which represents a significant portion of the company’s business, reported gross written premiums of $213.2 million, nearly flat compared to the previous year, while the Specialty Admitted Insurance segment saw a substantial decline of 30.7%, with gross written premiums of $81.1 million. The decrease in the Specialty Admitted Insurance segment was largely due to non-renewals, particularly a large California workers' compensation program.

Operationally, the company’s net investment income decreased to $20.0 million from $22.6 million, reflecting lower invested assets and yields. Additionally, James River reported net realized and unrealized losses on investments of $1.4 million, contrasting with gains of $4.6 million in the prior year. The company’s total liabilities decreased to $4.3 billion from $4.4 billion at the end of 2024, while shareholders' equity increased to $484.5 million from $460.9 million, driven by retained earnings and comprehensive income.

Strategically, James River completed the sale of its reinsurance subsidiary, JRG Re, on April 16, 2024, which has been classified as discontinued operations. The sale was part of a broader strategy to streamline operations and focus on core insurance segments. The company also amended the terms of its Series A Preferred Shares in November 2024, converting a portion to common stock and adjusting the conversion price. Looking ahead, James River anticipates continued challenges in the insurance market, including increased competition and moderating rate increases, but remains focused on enhancing its underwriting performance and investment returns.