James River Group (JRVR) AI Stock Analysis

• Market Cap: $199.92M
• Dividend Yield: 2.74%
• Average Volume (3M): 251.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -23.55%
• EPS Growth: 0.38%
• Country: US
• Employees: 645
• Sector: Financial
• Sector Strength: 83
• Industry: Insurance - Specialty
• EPS (TTM): -2.90
• Shares Outstanding: 45,644,318
• 10 Day Avg. Volume: 244,328
• 30 Day Avg. Volume: 251,430
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.26
• Price to Cash Flow (P/CF): 6.10
• P/FCF Ratio: 3.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.42
• Price Target Upside: 46.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

James River Group's stock score reflects ongoing profitability and cash flow challenges, with strategic initiatives showing potential but yet to significantly alter financial performance. Technical indicators are neutral, while valuation is constrained by negative earnings despite a reasonable dividend yield. The company's strategic repositioning and market focus offer positive longer-term prospects.

Positive Factors

Market Potential

The U.S. E&S market remains a dynamic and attractive area to operate.

Reinsurance Agreements

James River completed two reinsurance agreements that should protect against any development in their 2010-2023 casualty reserves.

Strategic Actions

Management emphasized that their strategic actions should position the company for future growth and profitability.

Negative Factors

Balance Sheet Confidence

The company's balance sheet lacks confidence, limiting upside in the stock.

Combined Ratio

The aggregate company-wide combined ratio was 155.1%, which was higher than expected.

Investor Confidence

It will likely take some time for management to regain the confidence of investors and prove the effectiveness of their recent actions.

James River Group Business Overview & Revenue Model

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.

How the Company Makes Money

James River Group makes money by underwriting insurance policies and collecting premiums from its customers. The company's revenue model revolves around its three core segments. In the Excess and Surplus Lines segment, JRVR offers insurance products for risks that are hard to place in the standard market, charging premiums that reflect the specialized nature of the coverage. In the Specialty Admitted Insurance segment, the company provides customized insurance solutions that are admitted in certain states, allowing it to leverage regulatory approvals to access broader markets. The Casualty Reinsurance segment contributes to revenue by providing reinsurance solutions to other insurance companies, thereby earning premiums for assuming portions of their risk. Additionally, James River Group generates investment income from its portfolio of invested assets, which enhances its overall earnings. Strategic partnerships and a focus on niche markets further contribute to its profitability by allowing the company to capitalize on specialized expertise and market gaps.

James River Group Financial Statement Overview

Summary

James River Group is facing challenges in profitability and cash flow, with significant revenue fluctuations and consistent net losses affecting its financial health. The balance sheet shows a strong equity base, but reduced assets and negative returns are concerning. The company needs to address operational inefficiencies and stabilize cash flow to improve financial performance.

Income Statement

The company's revenue has shown significant volatility, with a recent decline from $812 million in 2023 to $707 million in 2024. The net profit margin is negative due to consistent net losses over the years, indicating ongoing profitability challenges. The gross profit margin remains stable, but negative EBIT and EBITDA margins highlight operational inefficiencies.

Balance Sheet

The balance sheet shows a strong equity position with a debt-to-equity ratio of 0 as of 2024, indicating no financial leverage. However, the company's total assets have decreased significantly, and the return on equity is negative due to net losses, pointing to underperformance in asset utilization.

Cash Flow

Cash flow from operations turned negative in 2024, reflecting challenges in generating cash from core activities. The free cash flow has also deteriorated, although the company had positive free cash flow in previous years, indicating potential liquidity risks if negative trends continue.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
707.63M	812.01M	813.70M	772.88M	668.69M
	Gross Profit
707.26M	617.99M	617.78M	607.83M	502.65M
	EBIT
-63.49M	0.00	67.65M	-200.89M	7.39M
	EBITDA
-63.49M	111.07M	1.08B	-94.49M	26.99M
	Net Income Common Stockholders
-81.12M	-107.68M	30.97M	-172.80M	4.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
64.53M	1.96M	2.06B	2.00B	2.08B
	Total Assets
5.01B	5.32B	5.14B	4.95B	5.06B
	Total Debt
304.86M	326.36M	326.36M	366.36M	366.36M
	Net Debt
-57.49M	52.06M	153.19M	176.23M	204.09M
	Total Liabilities
4.41B	4.64B	4.44B	4.22B	4.27B
	Stockholders Equity
460.92M	679.52M	698.66M	725.36M	795.61M
Cash Flow		Free Cash Flow
-251.97M	81.52M	214.51M	-919.85M	-274.38M
	Operating Cash Flow
-247.09M	87.95M	222.73M	-913.55M	-273.83M
	Investing Cash Flow
141.97M	16.73M	-328.15M	35.82M	-175.99M
	Financing Cash Flow
-52.21M	-21.11M	89.67M	147.67M	65.92M

James River Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.38
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JRVR, the sentiment is Positive. The current price of 4.38 is above the 20-day moving average (MA) of 4.22, above the 50-day MA of 4.29, and below the 200-day MA of 5.60, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 55.54 is Neutral, neither overbought nor oversold. The STOCH value of 71.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JRVR.

James River Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMSF	68 Neutral	$931.37M	17.15	20.17%	3.02%	0.71%	-10.39%
ITIC	68 Neutral	$430.71M	14.05	12.35%	0.80%	14.93%	43.88%
Sector *	63 Neutral	$12.32B	9.52	7.89%	79.24%	12.74%	-4.55%
HIPO	55 Neutral	$609.00M	―	-10.95%	―	77.44%	85.53%
JRVR	52 Neutral	$199.92M	―	-9.97%	2.74%	-23.55%	0.38%
AMBC	48 Neutral	$408.22M	5.51	2.04%	―	46.32%	640.18%
MBI	28 Underperform	$239.76M	―	26.69%	―	583.33%	6.59%

James River Group Corporate Events

James River Group Highlights Strategic Repositioning in Q4 2024

James River Group Holdings, Ltd. has released its fourth quarter 2024 investor presentation, highlighting its strategic repositioning around core strengths in insurance operations and a strong market backdrop. The company emphasizes its enhanced enterprise risk management profile, substantial adverse reinsurance coverage, and a focus on the small and middle market, positioning itself as a market leader in the E&S sector with minimal property catastrophe exposure.

James River Group Announces Leadership Changes and Dividend

On February 27, 2025, Ollie L. Sherman, Jr. resigned as a director of James River Group, effective April 30, 2025, with no disagreements cited. Christine LaSala was appointed as the new Non-Executive Chairperson on February 20, 2025. The company also declared a cash dividend of $0.01 per share, payable on March 31, 2025. James River reported a net loss of $92.7 million for Q4 2024, largely due to a $52.8 million reinsurance contract payment and a $27 million deemed dividend. Despite these losses, strategic actions in 2024, including the sale of JRG Reinsurance and partnerships with Enstar, have strengthened the company’s balance sheet. The E&S segment saw a slight premium increase, and the company achieved its highest submission growth in five years. The Specialty Admitted Insurance segment improved its combined ratio, and net investment income rose by 10.8% in 2024.