Re/insurance group James River reported net income from continuing operations available to common shareholders of US$9 million for the first quarter of 2025.
Adjusted net operating income for the period was US$9.1 million. This compares to US$20.9 million in net income from continuing operations and US$14.8 million in adjusted net operating income for the first quarter of 2024.
Including discontinued operations, net income available to common shareholders was US$7.6 million compared to US$12.8 million in the same period last year. The discontinued operations posted a net loss of US$1.4 million in the quarter, down from an US$8.1 million loss in the prior-year period.
The company recorded an annualized adjusted net operating return on tangible common equity of 11.5% and reported year-to-date growth in tangible common equity of 7.1%. Its excess and surplus lines (E&S) segment posted a combined ratio of 91.5% and a renewal rate change of 7.8%, with most underwriting divisions reporting pricing increases.
The specialty admitted insurance segment reported a combined ratio of 102.1%, as fronting and program gross written premium declined by 21.3%. The group combined ratio stood at 99.5%, with minimal activity related to prior-year reserve development.
CEO Frank D’Orazio noted that risk selection discipline and reserve strengthening measures taken in the previous year contributed to current results.
James River also reported a resolution in the purchase price adjustment dispute related to the sale of JRG Reinsurance Company Ltd (JRG Re).
An independent accounting firm determined in the company’s favor on US$53.6 million of the US$54.1 million in disputed items, resulting in a US$0.5 million downward adjustment to the purchase price. The outcome was reflected in first-quarter results.
In the last update to the lengthy legal battle, JRG Re’s buyer, Fleming Intermediate Holdings, accused James River of manipulating the purchase price in the sale through improper reserve management, according to an amended complaint filed in October.
James River also announced leadership changes in its E&S segment. Todd Sutherland, currently senior vice president of management liability within the E&S division, will become president of the segment effective May 5.
Sutherland will succeed Richard Schmitzer, who will step down as chief executive officer of the E&S segment on July 31 and retire during the fourth quarter of the year.
Schmitzer has served as E&S CEO since 2010 and has worked in the insurance industry for over 45 years. Following the leadership transition, the CEO title for the segment will be retired in favor of the President designation.
Sutherland, who joined James River in 2023 to lead the management liability division, will report directly to D’Orazio and continue to be based in Richmond, Virginia. His previous roles include head of the US Central Zone at AXA XL, where he oversaw a multi-billion-dollar P&C portfolio, and senior positions at Allied World, Axis Capital, and AIG. He is a graduate of Miami University.
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