Three Months EndedDecember 31,
Three Months EndedDecember 31,
($ in thousands, except for share data)
2025
per diluted share
2024
per diluted share
Net income (loss) from continuing operations available to common shareholders
$
30,150
$
0.53
$
(92,669
)
$
(2.25
)
Net loss from discontinued operations1
(46
)
$
—
(1,372
)
$
(0.03
)
Net income (loss) available to common shareholders
30,104
$
0.53
(94,041
)
$
(2.28
)
Adjusted net operating income (loss)2
15,962
$
0.30
(40,803
)
$
(0.99
)
Unless specified otherwise, all underwriting performance ratios presented herein are for our continuing operations and business not subject to retroactive reinsurance accounting.
2025 Highlights2:
Full year combined ratio of 96.6%.
General and administrative expenses down 9% compared to 2024.
Tangible common equity per share of $8.94 grew 34% since December 31, 2024.
Adjusted net operating return on tangible common equity of 15.3%.
Company completed its redomicile from Bermuda to Delaware on November 7, 2025.
Fourth Quarter Highlights2:
Net income available to common shareholders of $30.1 million includes the one-time tax expense benefit of $14.1 million related to the Company's redomicile.
Combined ratio of 94.1% as compared to 155.1% in the prior year quarter. Underwriting profit of $8.6 million as compared to a loss of $58.1 million in the prior year quarter.
Expense ratio of 29.2% as compared to 43.7% in the prior year quarter.
Excess and Surplus ("E&S") segment combined ratio of 86.0% as compared to 159.8% in the prior year quarter.
Chief Executive Officer Frank D'Orazio commented, "Throughout 2025, our Company remained disciplined and focused on creating value for our shareholders, and our fourth-quarter results reflect the tangible momentum created by that work. The strategic actions, underwriting changes, and focus on smaller insureds that we have driven over the past few years have strengthened our organization while improving our profitability and operational efficiency. This year's results provide a strong foundation to build upon for 2026 as we continue to pursue compelling opportunities across the E&S market."
E&S Segment Highlights2:
Net earned premium of $140.9 million for the quarter and $559.5 million for the year, an increase of 61.5% and 9.2% respectively from the prior year periods.
Gross written premium for the segment declined 5% for full-year 2025 and 14.5% compared to the prior year periods driven by a continued focus on smaller profitable accounts (average premium per policy down 10% year over year) and a reduction of risks outside of our underwriting appetite.
Underwriting profit of $19.7 million represents the best quarterly result for the segment since 2022.
4% total growth for new and renewal submissions compared to the prior year period.
Fourth Quarter 2025 Operating Results
Gross written premium of $262.7 million, consisting of the following:
Three Months EndedDecember 31,
($ in thousands)
2025
2024
% Change
Excess and Surplus Lines
$
239,517
$
280,287
(15)%
Specialty Admitted Insurance
23,162
78,005
(70)%
$
262,679
$
358,292
(27)%
Net written premium of $142.1 million, consisting of the following:
Three Months EndedDecember 31,
($ in thousands)
2025
2024
% Change
Excess and Surplus Lines
$
140,693
$
99,684
41%
Specialty Admitted Insurance
1,443
14,307
(90)%
$
142,136
$
113,991
25%
Net earned premium of $147.3 million, consisting of the following:
Three Months EndedDecember 31,
($ in thousands)
2025
2024
% Change
Excess and Surplus Lines
$
140,917
$
87,275
61%
Specialty Admitted Insurance
6,409
18,311
(65)%
$
147,326
$
105,586
40%
Pre-tax favorable (unfavorable) reserve development by segment on business not subject to retroactive reinsurance accounting was as follows:
Three Months EndedDecember 31,
($ in thousands)
2025
2024
Excess and Surplus Lines
$
4,959
$
(8,943
)
Specialty Admitted Insurance
(3,119
)
—
$
1,840
$
(8,943
)
The Company experienced $1.8 million of net favorable reserve development in the fourth quarter of 2025. This included $5.0 million of net favorable reserve development from the E&S segment and ($3.1) million of net unfavorable reserve development from the Specialty Admitted segment. There remains $23.6 million of aggregate limit on the adverse development reinsurance contract with Cavello Bay ("E&S Top Up ADC"). The Company does not have a retention on the E&S Top Up ADC which covers the majority of the E&S segment's reserves for accident years 2023 and prior. The Company continues to observe lower frequency and incurred losses on recent accident years.
The consolidated expense ratio was 29.2% for the fourth quarter of 2025, a decrease overall compared to 43.7% from the prior year quarter. Compared to the prior year quarter, a reduction of general and administrative expenses from both E&S (down 13%) and Specialty Admitted (down 44%) principally drove the improvement as headcount reductions and other operating efficiencies contributed to reductions across compensation, taxes, and insurance. The expense ratio improvement was also a result of higher net earned premium in E&S during the fourth quarter compared to 2024 due to ceded premium costs associated with the E&S Top Up ADC.
Investment Results
Net investment income of $21.0 million declined just below $1.0 million from the prior year quarter. Fixed income securities generated higher net investment income stemming from an increase in "A" rated structured securities added during 2025, as we invested cash accumulated during the 2024 strategic actions. The fixed maturity outperformance was offset by lower average market yields within the Company's bank loan portfolio as well as lower income from the common stock portfolio which was deliberately reduced. Private investments generated $1.0 million in income driven by positive performance in private credit investments, but offset by lower income earned by the portfolio's private equity positions compared to the prior year quarter.
The Company's net investment income consisted of the following:
Three Months EndedDecember 31,
($ in thousands)
2025
2024
% Change
Private Investments
977
1,334
(27)%
All Other Investments
20,020
20,628
(3)%
Total Net Investment Income
$
20,997
$
21,962
(4)%
The Company's annualized gross investment yield on average fixed maturity, bank loan and equity securities for the three months ended December 31, 2025 was 4.6% (versus 4.7% for the three months ended December 31, 2024), driven primarily by lower market yields in the bank loan portfolio.
Net realized and unrealized losses on investments of $2.2 million for the twelve months ended December 31, 2025 compared to net realized and unrealized gains on investments of $3.6 million in the prior year period and were driven primarily by realized losses within the bank loan portfolio as the portfolio was defensively rebalanced following the tariff announcements in the spring of 2025.
Taxes
On November 7, 2025, the Company redomiciled from Bermuda to Delaware. The Company recognized a one-time income tax benefit of $14.1 million related to interest expense deduction in connection with the redomicile. Going forward, the move to Delaware is expected to lower the effective tax rate closer to the U.S. statutory rate, as certain company expenses previously incurred in Bermuda are expected to be eligible to receive a U.S. tax deduction in future periods.
Capital Management
The Company announced that its Board of Directors declared a cash dividend of $0.01 per share of common stock. This dividend is payable on March 31, 2026 to all shareholders of record as of March 13, 2026.
Tangible Common Equity
Shareholders' equity of $538.2 million on December 31, 2025 increased 16.8% compared to $460.9 million on December 31, 2024. Tangible common equity3 of $411.0 million on December 31, 2025 increased 34.9% from $304.6 million on December 31, 2024. Other comprehensive income was $4.3 million during the fourth quarter of 2025, improving accumulated other comprehensive loss to ($34.7) million due to the continued decline in interest rates.
Conference Call
James River will hold a conference call to discuss its fourth quarter results tomorrow, March 3, 2026 at 8:30 a.m. Eastern Time. Investors may access the conference call by dialing (800) 715-9871, Conference ID 6910670, or via the internet by visiting https://jrvrgroup.com and clicking on the "Investor Relations" link. A webcast replay of the call will be available by visiting the company website.
Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, should, intend, project, anticipate, plan, estimate, guidance or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and uncertainties, they include, among others, the following: the inherent uncertainty of estimating loss and loss adjustment expense reserves and the possibility that incurred losses and loss adjustment expenses may be greater than our estimate used to compute loss and loss adjustment expense reserves included in the financial statements; inaccurate estimates and judgments in our risk management may expose us to greater risks than intended; downgrades in the financial strength rating or outlook of our regulated insurance subsidiaries impacting our competitive position and ability to attract and retain insurance business that our subsidiaries write and ultimately our financial condition and triggering a default on our credit facility; the potential loss of key members of our management team or key employees, and our ability to attract and retain personnel; adverse economic and competitive factors resulting in the sale of fewer policies than expected or an increase in the frequency or severity of claims, or both; the impact of a higher than expected inflationary environment on our reserves, loss adjustment expenses, the values of our investments and investment returns, and our compensation expenses; exposure to credit risk, interest rate risk and other market risk in our investment portfolio and our reinsurers; reliance on a select group of brokers and agents for a significant portion of our business and the impact of our potential failure to maintain such relationships; reliance on a select group of customers for a significant portion of our business and the impact of our potential failure to maintain, or decision to terminate, such relationships; our ability to obtain insurance and reinsurance coverage at prices and on terms that allow us to transfer risk, adequately protect our Company against financial loss and that supports our growth plans; losses resulting from reinsurance counterparties failing to pay us on reinsurance claims, insurance companies with whom we have a fronting arrangement failing to pay us for claims, or a former customer with whom we have an indemnification arrangement failing to perform its reimbursement obligations, and our potential inability to demand or maintain adequate collateral to mitigate such risks; the inherent uncertainty of estimating reinsurance recoverable on unpaid losses and the possibility that reinsurance may be less than our estimate of reinsurance recoverable on unpaid losses; inadequacy of premiums we charge to compensate us for our losses incurred; changes in laws or government regulation, including tax or insurance laws and regulations; changes in U.S. tax laws (including associated regulations) and the interpretation of certain provisions applicable to insurance/reinsurance businesses with U.S. and non-U.S. operations, which may be retroactive and could have a significant effect on us including, among other things, by potentially increasing our tax rate, as well as on our shareholders; a failure of any of the loss limitations or exclusions we utilize in our insurance products to shield us from unanticipated financial losses or legal exposures, or other liabilities; losses from catastrophic events, such as natural disasters and terrorist acts, which substantially exceed our expectations and/or exceed the amount of reinsurance we have purchased to protect us from such events; potential effects on our business of emerging claim and coverage issues; the potential impact of internal or external fraud, operational errors, systems malfunctions or cyber security incidents; our ability to manage our growth effectively; failure to maintain effective internal controls in accordance with the Sarbanes-Oxley Act of 2002, as amended; changes in our financial condition, regulations or other factors that may restrict our subsidiaries' ability to pay us dividends; an adverse result in any litigation or legal proceedings we are or may become subject to; and inability to generate taxable income and execute tax planning strategies which could adversely impact our ability to recognize deferred tax assets at the level reflected on our balance sheet. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those in the forward-looking statements, is contained in our filings with the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
Non-GAAP Financial Measures
In presenting James River Group Holdings, Inc.'s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States ("GAAP"). Such measures, including underwriting (loss) profit, adjusted net operating (loss) income, tangible equity, tangible common equity, and adjusted net operating return on tangible equity (which is calculated as annualized adjusted net operating income divided by the average quarterly tangible equity balances in the respective period), are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. These measures should not be viewed as a substitute for those measures determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included at the end of this press release.
About James River Group Holdings, Inc.
James River Group Holdings, Inc. is a holding company that owns and operates a group of specialty insurance companies. The Company operates in two specialty property-casualty insurance segments: Excess and Surplus Lines and Specialty Admitted Insurance. Each of the Company's regulated insurance subsidiaries are rated "A-" (Excellent) by A.M. Best Company.
Visit James River Group Holdings, Inc. on the web at https://jrvrgroup.com
For more information contact:
Bob ZimardoSVP, Investments and Investor Relations[email protected]
James River Group Holdings, Inc. and SubsidiariesCondensed Consolidated Balance Sheet Data (Unaudited)
($ in thousands, except for share data)
December 31, 2025
December 31, 2024
ASSETS
Invested assets:
Fixed maturity securities, available-for-sale, at fair value
$
1,404,774
$
1,189,733
Equity securities, at fair value
73,092
86,479
Bank loan participations, at fair value
155,138
142,410
Short-term investments
0
97,074
Other invested assets
64,152
36,700
Total invested assets
1,697,156
1,552,396
Cash and cash equivalents
260,941
362,345
Restricted cash equivalents (a)
8,481
28,705
Accrued investment income
12,744
10,534
Premiums receivable and agents' balances, net
153,638
243,882
Reinsurance recoverable on unpaid losses, net
2,026,110
1,996,913
Reinsurance recoverable on paid losses
118,243
101,210
Deferred policy acquisition costs
31,286
30,175
Goodwill and intangible assets
213,918
214,281
Other assets
337,413
466,635
Total assets
$
4,859,930
$
5,007,076
LIABILITIES AND SHAREHOLDERS' EQUITY
Reserve for losses and loss adjustment expenses
$
3,099,418
$
3,084,406
Unearned premiums
447,644
572,034
Funds held (a)
7,485
25,157
Deferred reinsurance gain
86,720
57,970
Senior debt
225,800
200,800
Junior subordinated debt
104,055
104,055
Accrued expenses
31,006
53,178
Other liabilities
186,534
315,446
Total liabilities
4,188,662
4,413,046
Series A redeemable preferred shares
133,115
133,115
Total shareholders' equity
538,153
460,915
Total liabilities, Series A redeemable preferred shares, and shareholders' equity
$
4,859,930
$
5,007,076
Tangible equity (b)
$
544,070
$
437,719
Tangible equity per share (b)
$
9.15
$
7.40
Tangible common equity per share (b)
$
8.94
$
6.67
Shareholders' equity per share
$
11.71
$
10.10
Common shares outstanding
45,968,584
45,644,318
(a) Restricted cash equivalents and the funds held liability includes funds posted by the Company to a trust account for the benefit of a third party administrator handling the claims on the Rasier commercial auto policies in run-off. Such funds held in trust secure the Company's obligations to reimburse the administrator for claims payments, and are primarily sourced from the collateral posted to the Company by Rasier and its affiliates to support their obligations under the indemnity agreements and the loss portfolio transfer reinsurance agreement with the Company.
(b) See "Reconciliation of Non-GAAP Measures"
James River Group Holdings, Inc. and SubsidiariesCondensed Consolidated Income Statement Data (Unaudited)
Three Months EndedDecember 31,
Twelve Months EndedDecember 31,
($ in thousands, except for share data)
2025
2024
2025
2024
REVENUES
Gross written premiums
$
262,679
$
358,292
$
1,172,319
$
1,431,772
Net written premiums
142,136
113,991
568,815
580,854
Net earned premiums
147,326
105,586
600,288
600,196
Net investment income
20,997
21,962
83,440
93,089
Net realized and unrealized gains (losses) on investments
(1,711
)
(2,803
)
(2,195
)
3,625
Other income
1,135
1,968
6,081
10,716
Total revenues
167,747
126,713
687,614
707,626
EXPENSES
Losses and loss adjustment expenses (a)
93,534
144,560
427,204
554,374
Other operating expenses
43,372
47,068
183,964
