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1. Company Snapshot

1.a. Company Description

James River Group Holdings, Ltd., through its subsidiaries, provides specialty insurance and reinsurance services in the United States.It operates through Excess and Surplus Lines, Specialty Admitted Insurance, and Casualty Reinsurance segments.The Excess and Surplus Lines segment underwrites liability and property insurance on an excess and surplus commercial lines basis in all states and the District of Columbia.


This segment distributes its insurance policies primarily through wholesale insurance brokers.The Specialty Admitted Insurance segment provides workers' compensation coverage for building trades, healthcare employees, goods and services, light manufacturing, specialty transportation, and agriculture, as well as fronting and program business.The Casualty Reinsurance segment offers proportional and working layer casualty reinsurance to third parties and other insurance companies.


James River Group Holdings, Ltd.was founded in 2002 and is headquartered in Pembroke, Bermuda.

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1.b. Last Insights on JRVR

James River Group Holdings' recent performance was driven by its strategic review completion, which has opened up opportunities for value-creating initiatives. The company's strong growth potential in the excess and surplus insurance market, coupled with its streamlined structure and improved risk profile, presents a compelling investment case. The appointment of a Senior Vice President, Investments and Investor Relations, and the succession plan for the Excess and Surplus Lines leadership, demonstrate the company's commitment to strategic growth and investor engagement.

1.c. Company Highlights

2. James River Group's Q3 2025 Earnings: A Strong Performance

James River Group reported a robust Q3 2025, with an annualized adjusted net operating return on tangible common equity of 19.3% and $0.32 per share of adjusted net operating income, beating analyst estimates of $0.26 per share. The company's combined ratio improved significantly to 94% from 135.5% in Q3 2024, driven by a decrease in the expense ratio to 28.3% from 32.7% at the start of the year. The company's financial performance was strong, with net earned premium growing 1% despite a decline in gross written premiums.

Publication Date: Nov -23

📋 Highlights
  • Strong ROE and Adjusted Net Income:: Annualized adjusted net operating ROE of 19.3% and $0.32/share adjusted net operating income highlight profitability.
  • Improved Combined Ratio:: Combined ratio dropped to 94% (vs. 135.5% in Q3 2024), driven by a 7.4pt expense ratio decline to 28.3%.
  • E&S Segment Breakthrough:: Net retention >58% for first time in 2+ years, underwriting income of $16.4M, and net earned premiums up 1% despite 8.9% gross premium decline.
  • Redomicile Tax Savings:: Delaware move expected to deliver $10–13M one-time tax savings and $3–6M quarterly ongoing expenses savings.
  • Valuation Charge and Reserve Adjustments:: $51M charge for accident years 2022 and prior, primarily from liability lines, but management remains confident in recent accident year performance.

Segment Performance

The E&S segment delivered a combined ratio of 88.3% and an underwriting income of $16.4 million, with net retention exceeding 58% for the first time in over 2 years. The segment's gross written premiums declined 8.9% due to increased competition and a focus on smaller accounts, but net earned premium grew 1%, driven by strong performance in specialty divisions such as Allied Health, Energy, and Life Sciences. As Frank D'Orazio noted, the company's underwriting actions, including sublimits, exclusions, and improved performance monitoring, contributed to the favorable loss experience in recent accident years.

Reserve Charge and Underwriting Actions

The company completed its annual detailed valuation review, resulting in a $51 million charge in accident years 2022 and prior, primarily driven by other liability occurrence and product completed operations. Despite this, the company remains confident in its underwriting actions and the performance of its more recent accident years, with claims frequency meaningfully down and incurred losses despite portfolio growth.

Investment Portfolio and Expense Management

The company reported $21.9 million of net investment income, with a conservatively positioned portfolio and an average credit rating of A+ and a duration of 3.4 years. James River Group is focused on maintaining discipline, continuing its mix shift towards smaller, more profitable accounts, and upholding underwriting guardrails in challenging areas. The company expects to maintain its expense management focus, seeking to improve operational leverage without compromising underwriting or claim service quality.

Valuation and Outlook

With a Price-to-Book Ratio of 0.53, the company's valuation appears reasonable. Analysts estimate next year's revenue growth at 4.9%. The company's primary goal remains to deliver consistent and deliberate results, with a focus on building and improving James River. As Frank D'Orazio concluded, the company is committed to enhancing shareholder value through consistent execution.

3. NewsRoom

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Head-To-Head Contrast: James River Group (NASDAQ:JRVR) vs. Amacore Group (OTCMKTS:ACGI)

Dec -02

Source: defenseworld.net

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What Makes James River Group (JRVR) a Strong Momentum Stock: Buy Now?

Nov -26

Source: zacks.com

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Best Value Stocks to Buy for Nov. 26

Nov -26

Source: zacks.com

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New Strong Buy Stocks for Nov. 26: JRVR, CMC, and More

Nov -26

Source:

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Donald Smith & Co's Strategic Moves: Honda Motor Co Ltd Takes Center Stage

Nov -25

Source: gurufocus.com

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Analysts Set James River Group Holdings, Ltd. (NASDAQ:JRVR) Price Target at $6.06

Nov -25

Source: defenseworld.net

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Reviewing James River Group (NASDAQ:JRVR) & Allianz (OTCMKTS:ALIZY)

Nov -19

Source: defenseworld.net

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Does James River Group (JRVR) Have the Potential to Rally 26.75% as Wall Street Analysts Expect?

Nov -17

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.70%)

6. Segments

Excess and Surplus Lines

Expected Growth: 5%

James River Group Holdings, Ltd.'s Excess and Surplus Lines segment growth is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic partnerships. Additionally, the company's ability to underwrite complex risks and provide tailored solutions to clients has contributed to its 5% growth. Furthermore, the segment's focus on niche markets and disciplined underwriting practices have enabled it to maintain a strong market position.

Specialty Admitted Insurance

Expected Growth: 3%

James River Group Holdings, Ltd.'s Specialty Admitted Insurance segment growth is driven by increasing demand for niche insurance products, expansion into new markets, and strategic partnerships. Additionally, the company's expertise in underwriting and risk management, as well as its ability to adapt to changing regulatory environments, contribute to its growth.

Corporate and Other Segment

Expected Growth: 2%

The 2% growth in James River Group Holdings, Ltd.'s Corporate and Other Segment is driven by increasing investment income, disciplined expense management, and strategic capital allocation. Additionally, the segment benefits from a low-cost operating structure and a diversified investment portfolio, which contributes to its stable earnings growth.

7. Detailed Products

Excess and Surplus Lines

Specialized insurance products for unique or hard-to-place risks

Casualty Reinsurance

Reinsurance solutions for casualty risks, including workers' compensation, general liability, and auto liability

Fronting and Program Business

Customized insurance programs for niche markets, including fronting and program administration services

Rental Car Insurance

Insurance products for rental car companies, including liability and physical damage coverage

8. James River Group Holdings, Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for James River Group Holdings, Ltd. is medium due to the availability of alternative insurance products and services.

Bargaining Power Of Customers

The bargaining power of customers for James River Group Holdings, Ltd. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for James River Group Holdings, Ltd. is medium due to the company's dependence on a few key suppliers for certain services.

Threat Of New Entrants

The threat of new entrants for James River Group Holdings, Ltd. is high due to the relatively low barriers to entry in the insurance industry.

Intensity Of Rivalry

The intensity of rivalry for James River Group Holdings, Ltd. is high due to the highly competitive nature of the insurance industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.65%
Debt Cost 4.82%
Equity Weight 67.35%
Equity Cost 4.82%
WACC 4.82%
Leverage 48.48%

11. Quality Control: James River Group Holdings, Ltd. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Tiptree

A-Score: 5.9/10

Value: 8.1

Growth: 7.7

Quality: 6.9

Yield: 4.0

Momentum: 4.0

Volatility: 5.0

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MBIA

A-Score: 5.3/10

Value: 8.6

Growth: 1.3

Quality: 5.2

Yield: 5.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

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ICC Holdings

A-Score: 4.8/10

Value: 4.9

Growth: 7.3

Quality: 5.1

Yield: 0.0

Momentum: 5.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
James River Group Holdings

A-Score: 4.3/10

Value: 9.6

Growth: 2.7

Quality: 5.5

Yield: 3.0

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Trupanion

A-Score: 3.7/10

Value: 1.9

Growth: 7.4

Quality: 5.2

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

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Ambac Financial Group

A-Score: 3.3/10

Value: 9.0

Growth: 2.9

Quality: 3.7

Yield: 0.0

Momentum: 1.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.91$

Current Price

5.91$

Potential

-0.00%

Expected Cash-Flows