James River Group Holdings has swung to a first-quarter loss after reinsurance reinstatement premiums tied largely to a single excess and surplus (E&S) claim weighed on results, despite modest growth in core E&S lines, higher investment income and stable reserve development.
The group reported a net loss from continuing operations available to common shareholders of $10.7 million for the three months ended March 31, 2026, compared with net income of $9.0 million in the prior-year period.
Adjusted net operating income fell to $5.8 million, or $0.12 per diluted share, from $9.1 million, or $0.19 per diluted share, in the first quarter of 2025.
Gross written premium from continuing operations declined 20% to $236.4 million, partly offset by steady E&S volumes. E&S gross written premium was broadly flat at $212.3 million, while Specialty Admitted dropped to $24.1 million from $81.1 million.
Net written premium decreased 6% to $120.1 million. Within that, E&S net written premium grew 3% to $118.7 million, its first increase in active casualty lines in three quarters, while Specialty Admitted shrank 89% to $1.4 million. Net earned premium fell 11% to $135.7 million, including a 4% decline in E&S and a 74% reduction in Specialty Admitted.
James River also reported a combined ratio of 104.6% for the quarter, up from 99.5% in the first quarter of 2025. The consolidated loss ratio and expense ratio were 69.2% and 35.4%, respectively.
Chief executive Frank D’Orazio said the group saw “strong submission flow and rate opportunities” across many casualty and specialty lines and grew its E&S casualty portfolio “for the first time in several quarters.” He described the reinstatement impact as “unwelcome” but linked it to a single claim on a pre‑2023 treaty, noting that the restructured program is designed to reduce the risk of similar volatility in more recent underwriting years.
Net investment income increased to $21.3 million, up 6.6% from $20.0 million in the prior-year quarter. Private investment income rose to $1.8 million from $0.2 million as the company shifted its private holdings toward rated note exposure managed by institutional managers and away from more concentrated equity positions. Income from other investments, largely fixed income securities, was broadly stable at $19.5 million, supported by higher‑yielding “A” rated structured securities added in the second half of 2025.
The company recorded net realized and unrealized investment losses of $6.6 million, driven mainly by losses in its bank loan portfolio. The portfolio is predominantly senior secured and represents 7.8% of invested assets and cash.
Shareholders’ equity stood at $518.4 million at March 31, 2026, down 3.7% from $538.2 million at Dec. 31, 2025.
The board declared a cash dividend of $0.01 per common share, payable June 30, 2026, to shareholders of record as of June 8, 2026.
Against that backdrop, James River’s first‑quarter metrics sit toward the weaker end of the range compared with several E&S‑focused peers.
Pure‑play E&S carrier Kinsale Insurance has continued to post double‑digit premium growth and a combined ratio in the low‑80s, while RLI Corp., with a significant E&S footprint alongside specialty admitted lines, has reported a sub‑90 combined ratio and mid‑single‑digit premium growth. Larger diversified specialty groups such as Markel have also reported high‑80s combined ratios with growth concentrated in professional, excess casualty and other E&S‑driven classes.
The company’s use of adverse development cover and restructured reinsurance, together with continued pruning of non‑core business, will be key for brokers, reinsurers and rating analysts as they gauge whether James River can narrow the performance gap to leading E&S competitors through the rest of 2026.
