James River Group Holdings, a Bermuda-domiciled insurance holding company, has reported first quarter 2025 net income of $9 million and adjusted net operating income of $9.1 million, compared to $20.9 million and $14.8 million, respectively, in Q1’24.

For the quarter, gross written premium (GWP) was $294.4 million, and Excess and Surplus Lines (E&S) contributed with $213.2 million, remaining unchanged year on year, and Specialty Admitted Insurance segment declined by 31% to $81 million.

In Q1’25, net written premiums were $128 million, a 2% decline in E&S to $115 million, and a 38% decrease in Specialty Admitted Insurance segment to $12.9 million.

The quarter’s net earned premiums went down to $151.9 million, a 12% decrease.

The first quarter of 2025 included de minimis favourable reserve development in each of the two insurance segments. The firm explained, “There remains $116.2 million of aggregate limit on the two E&S segment retroactive reinsurance structures which cover the majority of James River’s E&S segment net reserves for James River’s E&S segment for accident years 2010 -2023.”

The E&S segment’s combined ratio is 91.5% with a renewal rate change of 7.8%, with the majority of underwriting divisions reporting pricing increases.

The segment continued to experience strong submission growth, with the 6% growth in renewal submissions exceeding 2024 levels. There was de minimis favourable reserve development during the quarter.

In the Specialty Admitted Insurance segment, GWP for the fronting and program business declined 21.3% compared to last year. This excludes the impact of the large workers’ compensation program and Individual Risk Workers’ Compensation book, the majority of underwriting divisions report pricing increases, and the combined ratio is 102.1%.

Finally, there was de minimis overall prior year reserve activity.

The company’s net investment income for Q1’25 was $20 million, a decline of 11.6% compared to $22.6 million last year, driven by a smaller asset base following the funding of retroactive reinsurance structures for the E&S segment, which were purchased in the second half of 2024.

There were net realized and unrealized losses on investments of $1.4 million for Q1’25 compared to gains on investments of $4.6 million in the prior year quarter

For Q1’25, retroactive benefits of $1.9 million were recorded in loss and loss adjustment expenses, and the total deferred retroactive reinsurance gain on the balance sheet is $56 million as of March 31, 2025. The consolidated expense ratio was 32.7%, an increase from 28.9% in the prior year quarter, driven by higher compensation expenses on lower net earned premiums.

Frank D’Orazio, Chief Executive Officer, James River, commented on the first quarter, “Coming out of 2024, our first quarter results show progress in strengthening our underwriting performance and positioning the franchise for long-term, sustainable profitability.

“Our disciplined approach to risk selection, combined with the actions taken over the past year to strengthen our reserve position, are showing tangible results. As we move forward, we remain focused on delivering value to shareholders as we take advantage of the attractive E&S underwriting environment while closely managing our expenses.”

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