James River Q2 net income rises 59% as premiums fall
JRVR•Quarterly results
US specialty insurer James River Group Holdings Inc said its second-quarter net income rose 59% year over year to $4.4 million.
Q2 gross written premiums fell 29% year over year as the company reduced exposure in its Specialty Admitted Insurance business.
Adjusted net operating income for the quarter declined to $10 million from $11.7 million a year earlier.
Key drivers and outlook
- Reduced fronting business - The company said the decline in Specialty Admitted Insurance premiums was due to a deliberate reduction in fronting business exposure.
- Expense management - General and administrative expenses declined, notably in Specialty Admitted (down 39%) and Corporate (down 9%) segments.
- Disciplined risk selection - The company emphasized cautious risk selection and operating efficiency in its core casualty and specialty divisions, according to CEO Frank D’Orazio.
The company did not provide specific guidance for the current quarter or full year.
Key details and analyst coverage
| Metric | Actual |
|---|---|
| Q2 Gross Written Premiums | $268.90 million |
