James River reports strong Q2’24 results, driven by E&S segment growth

James River Insurance held its Q2’24 earnings call on Aug 6, 2024, led by CEO Frank N. D’Orazio.

The insurer reported strong Q2 2024 results, with net income from continuing operations reaching $11.9 million, up from $9.5 million in the same period last year. The company’s adjusted net operating income rose to $12.7 million, or $0.33 per share, reflecting a notable improvement. The E&S (Excess and Surplus) segment was a key driver of this growth, with a 10% increase in submissions and a 9.1% rise in renewal rates.

The flagship E&S business benefited from strong submission growth and rate increases, creating optimal conditions for underwriting and profitable expansion of the company’s SME-weighted platform. Over 80,000 submissions were sold during the second quarter, continuing the strong trends seen in recent quarters.

James River executed a strategic adverse development cover and loss portfolio transfer, strengthening the balance sheet and reducing reserve volatility. Despite increased competition in the excess property market, the company maintained strong underwriting discipline, resulting in a combined ratio of 99.3% for the quarter. Additionally, James River saw a 37% increase in net investment income, driven by higher reinvestment rates.

Looking forward, James River remains focused on sustaining profitability and exploring growth opportunities while continuing its strategic review process. The company is committed to prudent reserve management, particularly given the ongoing economic and market uncertainties.