James River Group (JRVR) AI Stock Analysis

• Market Cap: $260.21M
• Dividend Yield: 2.05%
• Average Volume (3M): 240.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -23.83%
• EPS Growth: -11.60%
• Country: US
• Employees: 645
• Sector: Financial
• Sector Strength: 82
• Industry: Insurance - Specialty
• EPS (TTM): 0.17
• Shares Outstanding: 45,893,160
• 10 Day Avg. Volume: 271,987
• 30 Day Avg. Volume: 240,054
• PEG Ratio: 0.28
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.85
• Enterprise Value/Market Cap: -0.25
• Enterprise Value/Revenue: -0.02
• Enterprise Value/Gross Profit: -0.09
• Enterprise Value/Ebitda: -0.23
• 1Y Price Target: $6.81
• Price Target Upside: 14.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 59 Neutral
• Price Target: $6.50 ▲(9.61%Upside)

James River Group's overall stock score reflects significant financial challenges, offset by positive technical momentum and strategic efforts to improve profitability. The robust technical indicators suggest potential for price gains, but financial difficulties and valuation concerns weigh down the score.

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 Initiatives

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.

Earnings Performance

James River reported adjusted 4Q operating EPS of ($0.99), impacted mainly by the $53 million consideration paid in connection with the E&S adverse development reinsurance contract.

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 faces challenges with profitability and cash flow. Revenue volatility and consistent net losses strain financial health, despite a strong equity position. Negative cash flow from operations raises liquidity concerns.

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
-46.45M	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
979.45M	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
594.03M	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
307.03M	16.73M	-328.15M	35.82M	-175.99M
	Financing Cash Flow
-28.85M	-21.11M	89.67M	147.67M	65.92M

James River Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.93
• 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 5.93 is above the 20-day moving average (MA) of 5.43, above the 50-day MA of 4.80, and above the 200-day MA of 5.23, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 65.86 is Neutral, neither overbought nor oversold. The STOCH value of 50.87 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	72 Outperform	$867.55M	18.36	16.89%	3.29%	-2.51%	-22.68%
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.30%	-7.71%
JRVR	59 Neutral	$260.21M	―	-11.67%	2.05%	-23.83%	-11.60%
ITIC	59 Neutral	$366.33M	12.36	11.69%	0.95%	15.22%	19.19%
HIPO	55 Neutral	$632.20M	―	-15.58%	―	77.44%	85.53%
AMBC	44 Neutral	$350.99M	68.24	-2.23%	―	10.50%	-92.02%
MBI	28 Underperform	$228.18M	―	26.69%	―	583.33%	6.59%

James River Group Corporate Events

James River Group Reports Strong Q1 2025 Performance

James River Group Holdings, Ltd. presented its first quarter 2025 investor presentation, highlighting a strong start to the year with an adjusted net operating income of $9.1 million and an annualized adjusted net operating return on tangible common equity of 11.5%. The company has taken significant steps to refocus its business, including expense management, technology implementation for underwriting efficiency, and the sale of sub-scale businesses. These measures have positioned James River well for profitable growth in the E&S market, with a combined ratio of 91.5% and a renewal rate change of 7.8%.

The most recent analyst rating on (JRVR) stock is a Buy with a $11.25 price target. To see the full list of analyst forecasts on James River Group stock, see the JRVR Stock Forecast page.

James River Group Announces Leadership Change in 2025

On May 5, 2025, James River Group announced leadership changes within its Excess & Surplus Lines segment, with Todd Sutherland succeeding Richard J. Schmitzer as President, effective immediately, as Schmitzer prepares for retirement. Additionally, the company declared a cash dividend and reported first-quarter 2025 results, highlighting a net income of $9.0 million and a strategic focus on strengthening underwriting performance and managing expenses. The company experienced a decline in gross written premiums, particularly in the Specialty Admitted Insurance segment, while maintaining a stable performance in the Excess & Surplus Lines segment.

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.