James River Group (JRVR) AI Stock Analysis

• Market Cap: $287.75M
• Dividend Yield: 0.64%
• Average Volume (3M): 226.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: -19.08%
• EPS Growth: 56.21%
• Country: US
• Employees: 645
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 0.32
• Shares Outstanding: 45,965,840
• 10 Day Avg. Volume: 292,949
• 30 Day Avg. Volume: 226,983
• PEG Ratio: 0.91
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -0.75
• Enterprise Value/Market Cap: 2.50
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 7.02
• Enterprise Value/Ebitda: -31.72
• 1Y Price Target: $6.50
• Price Target Upside: 3.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.09
• Revenue Forecast (FY): $622.26M

• Rating: 60 Neutral
• Price Target: $6.50 ▲(3.83% Upside)

James River Group's overall stock score reflects a challenging financial performance, offset by positive technical indicators and strategic corporate events. The earnings call provided a mix of improvements and challenges, while valuation remains a concern due to negative earnings. The company's strategic initiatives and recent legal victory contribute positively to the score.

Positive Factors

Improved Operational Efficiency

The reduction in the expense ratio indicates improved operational efficiency, which can enhance profitability and competitiveness over the long term.

Redomicile to Delaware

Redomiciling to Delaware is expected to result in significant tax savings and further expense reductions, strengthening financial health.

Strategic Focus on Risk Management

A strategic focus on risk management and underwriting can lead to better risk-adjusted returns and a more resilient business model.

Negative Factors

Negative Revenue Growth

Negative revenue growth suggests declining market share or demand, which could impact long-term sustainability and profitability.

Reserve Charge Impact

Significant reserve charges can strain financial resources and indicate potential underestimation of past liabilities, affecting future profitability.

Decline in Gross Written Premiums

A decline in gross written premiums may reflect reduced business activity or competitive pressures, impacting revenue and market position.

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 generates revenue primarily through the underwriting of insurance policies and collecting premiums from policyholders. The company employs a diversified approach to its revenue model, which includes writing both direct insurance and reinsurance. Key revenue streams consist of earned premiums, investment income from the management of its insurance reserves, and fees associated with its insurance products. The company may also benefit from strategic partnerships with brokers and agents, enhancing its distribution capabilities and market reach. Additionally, effective risk management and claims handling contribute to profitability by minimizing losses and improving underwriting results.

James River Group Financial Statement Overview

Summary

James River Group is facing financial difficulties across all major financial statements. The income statement shows declining revenues and persistent losses, while the balance sheet indicates moderate leverage but negative returns on equity. Cash flow challenges further exacerbate the situation, with negative operating and free cash flows. The company needs to address operational inefficiencies, improve profitability, and enhance cash management to stabilize its financial position.

Income Statement

The income statement reveals a challenging financial position for James River Group. The company has experienced negative revenue growth in the TTM, with a decline of 1.98% compared to the previous year. Gross profit margin is unusually high at 114.20%, indicating potential accounting anomalies or reclassifications. However, the net profit margin is negative at -13.50%, reflecting ongoing losses. EBIT and EBITDA margins are also negative, suggesting operational inefficiencies. Overall, the income statement indicates financial instability and a need for strategic improvements.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.53 in the TTM, which is manageable but slightly higher than the previous year. Return on equity is negative at -14.30%, indicating that the company is not generating profits from its equity base. The equity ratio stands at 12.47%, suggesting a relatively low proportion of equity financing. While the company maintains a stable asset base, the negative ROE and moderate leverage highlight financial risks.

Cash Flow

Cash flow analysis indicates significant challenges, with negative operating cash flow and free cash flow in the TTM. The free cash flow growth rate is negative, showing a decline in cash generation capability. The operating cash flow to net income ratio is zero, highlighting cash flow issues. However, the free cash flow to net income ratio is slightly above 1, suggesting that cash flows are somewhat aligned with reported losses. Overall, the cash flow statement reflects liquidity concerns and the need for cash management improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	646.58M	707.63M	812.01M	661.51M	609.03M	668.69M
Gross Profit	102.39M	87.29M	239.22M	171.06M	-5.03M	114.57M
EBITDA	-22.65M	-47.16M	111.07M	68.19M	-94.49M	26.99M
Net Income	-49.41M	-81.12M	-107.68M	30.97M	-172.80M	4.82M
Balance Sheet
Total Assets	4.95B	5.01B	5.32B	5.14B	4.95B	5.06B
Cash, Cash Equivalents and Short-Term Investments	926.15M	979.45M	1.67B	1.43B	2.00B	2.08B
Total Debt	329.86M	304.86M	326.36M	326.36M	366.36M	366.36M
Total Liabilities	4.31B	4.41B	4.64B	4.44B	4.22B	4.27B
Stockholders Equity	636.75M	594.03M	679.52M	698.66M	725.36M	795.61M
Cash Flow
Free Cash Flow	10.40M	-251.97M	81.52M	214.51M	-919.85M	-274.38M
Operating Cash Flow	15.47M	-247.09M	87.95M	222.73M	-913.55M	-273.83M
Investing Cash Flow	-160.76M	307.03M	16.73M	-328.15M	35.82M	-175.99M
Financing Cash Flow	25.53M	-28.85M	-21.11M	89.67M	147.67M	65.92M

James River Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 6.26 is above the 20-day moving average (MA) of 6.16, above the 50-day MA of 5.70, and above the 200-day MA of 5.31, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 54.60 is Neutral, neither overbought nor oversold. The STOCH value of 62.80 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
ITIC	80 Outperform	$479.90M	13.37	13.12%	4.15%	13.47%	26.15%
AMSF	72 Outperform	$739.19M	14.96	16.95%	6.55%	-1.73%	-18.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TIPT	64 Neutral	$688.39M	16.05	10.46%	1.32%	4.44%	22.40%
JRVR	60 Neutral	$287.75M	―	-6.97%	0.64%	-19.08%	56.21%
MBI	49 Neutral	$365.07M	-2.02	―	―	―	67.72%
AMBC	48 Neutral	―	―	-4.14%	―	-37.46%	-117.36%

James River Group Corporate Events

James River Group Wins Court Ruling Against Fleming

On December 2, 2025, the U.S. District Court for the Southern District of New York denied Fleming Intermediate Holdings LLC’s motion for reconsideration regarding the dismissal of its lawsuit against James River Group Holdings, Inc. This lawsuit, originally filed on July 15, 2024, involved claims of securities fraud and breaches of contract related to Fleming’s purchase of JRG Reinsurance Company Ltd., a former subsidiary of James River Group. The decision upholds the court’s previous ruling from July 17, 2025, and Fleming has until January 2, 2026, to file an appeal.

James River Group Highlights Q3 2025 Strategy

James River Group Holdings has released its third quarter 2025 investor presentation, highlighting its strategic focus on risk management, performance monitoring, and underwriting. The company has undergone significant changes, including a leadership transition and a redomicile to the U.S., which have contributed to its strong balance sheet and improved underwriting efficiencies. With a refreshed management team and upgraded technology, James River is well-positioned to capitalize on profitable opportunities in the current market.

James River Group Completes Domestication to Delaware

On November 7, 2025, James River Group Holdings, Ltd. transitioned its jurisdiction of incorporation from Bermuda to Delaware, subsequently changing its name to James River Group Holdings, Inc. This move, known as the Domestication, involved converting its outstanding shares into an equivalent number of shares under Delaware law, while maintaining its NASDAQ listing under the symbol ‘JRVR’. The company adopted a new certificate of incorporation and by-laws, aligning the rights of its stockholders with Delaware’s General Corporation Law, without altering the terms of its Series A Preferred Shares.

James River Group Announces Cash Dividend Amid Turnaround

On November 3, 2025, James River Group announced a cash dividend of $0.01 per common share, payable on December 31, 2025. The company reported a significant improvement in its financial performance for the third quarter of 2025, with a net loss of $0.4 million compared to $40.7 million in the same period of 2024. The adjusted net operating income was $17.4 million, a notable turnaround from the previous year’s loss. The company highlighted a combined ratio improvement and operational efficiencies as it prepares to redomicile from Bermuda to Delaware. The E&S segment showed strong submission growth despite a decline in gross written premiums, while the Specialty Admitted Insurance segment saw a strategic reduction in premiums to minimize risk.

James River Group Shareholders Approve Key Amendments

On October 23, 2025, James River Group Holdings, Ltd. held its annual general meeting where shareholders approved amendments to increase the number of common shares for issuance under both the 2014 Long-Term Incentive Plan and the Non-Employee Director Incentive Plan. Additionally, shareholders elected directors for a one-year term, re-appointed Ernst & Young LLP as the independent auditor, and approved the 2024 executive compensation on an advisory basis, reflecting continued support for the company’s governance and strategic initiatives.