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James River net income falls

James River Group Holdings Ltd, the insurance holding company based in Bermuda, has reported second-quarter net income available to common shareholders of $5 million.

That compares with net income of $20.8 million for the second quarter of 2021.

Adjusted net operating income for the second quarter was $20 million compared with $18.8 million for the same period in 2021.

The second-quarter group combined ratio was 91 per cent. The company's largest segment, excess and surplus lines, produced a combined ratio of 83.8 per cent.

E&S segment gross written premium grew 24.6 per cent compared with the prior-year quarter, buoyed by resurgent renewal pricing increases of 14.1 per cent, with broad strength across the segment's underwriting divisions.

The year-to-date combined ratio is 94.2 per cent and adjusted net operating return on tangible common equity is 15.5 per cent.

Frank D'Orazio, the company’s chief executive officer, said: “Our strong start to 2022 continued in the second quarter, as our results reflect an acute focus on underwriting profitability and risk management, as well as our leadership position in the E&S market.

“Robust performance across our underwriting segments, and investments, contributed to an adjusted net operating return on tangible common equity of 19.9 per cent this quarter.

“Our E&S segment results were particularly strong with accelerating premium growth supported by renewal rate increases, and continued attractive underwriting margins.

“We remain disciplined in managing the business, as premium in our workers' compensation unit and casualty reinsurance segment declined in accordance with our stated plan, given more attractive relative opportunities in the portfolio.”

Gross written premium was $399.7 million compared with $380.1 million in the second quarter of 2021.

Net investment income for the second quarter was $14.7 million, an increase of 2.5 per cent compared with $14.3 million for the same period in 2021.

Frank D’Orazio, James River Group Holdings Ltd chief executive officer (Photograph supplied)

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Published August 02, 2022 at 2:35 pm (Updated August 03, 2022 at 10:48 pm)

James River net income falls

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