James River Group (JRVR) AI Stock Analysis

• Market Cap: $257.13M
• Dividend Yield: 1.43%
• Average Volume (3M): 177.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -21.13%
• EPS Growth: 1.34%
• Country: US
• Employees: 645
• Sector: Financial
• Sector Strength: 67
• Industry: Insurance - Specialty
• EPS (TTM): 0.23
• Shares Outstanding: 45,916,454
• 10 Day Avg. Volume: 197,283
• 30 Day Avg. Volume: 177,445
• 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: 2.87
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 1.63
• Enterprise Value/Ebitda: -10.45
• 1Y Price Target: $6.13
• Price Target Upside: 9.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 53 Neutral
• Price Target: $5.50 ▼(-1.79% Downside)

The overall stock score reflects significant financial challenges, including negative profitability and cash flow issues. While technical analysis and valuation present concerns, recent earnings call highlights and positive corporate events provide some optimism for future performance.

Positive Factors

Risk Management

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.

Underwriting Improvements

Significant underwriting, claims and CRM improvements put in place over the past few years should result in the core E&S franchise remaining highly relevant to distribution and producing attractive results for investors going forward.

Negative Factors

Combined Ratio

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

Financial 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 primarily through underwriting insurance policies and earning premiums from its customers. The Excess and Surplus Lines segment focuses on insuring risks that traditional insurers avoid due to their complexity or higher risk, thus often commanding higher premiums. The Specialty Admitted Insurance segment deals with specific risks that require regulatory approval, offering products like workers' compensation and providing coverage for niche markets. The Casualty Reinsurance segment involves providing insurance to other insurance companies, which allows James River Group to diversify its risk and income streams. Additionally, the company invests the premiums it collects, generating investment income that contributes to its overall earnings.

James River Group Financial Statement Overview

Summary

James River Group is facing financial challenges, with declining revenues and negative profitability impacting the income statement and cash flow. Despite a stable balance sheet with manageable debt, operational inefficiencies and negative cash flow are significant concerns.

Income Statement

James River Group's income statement reflects a challenging period, marked by declining revenues and profitability issues. The TTM (Trailing-Twelve-Months) data shows a negative EBIT and net income, indicating operational inefficiencies and profitability challenges. The gross profit margin remains relatively strong, but the net profit margin is negative due to substantial losses. Revenue growth has been negative, indicating a need for strategic improvements to reverse the downward trend.

Balance Sheet

The balance sheet of James River Group indicates moderate financial stability with some concerns. The debt-to-equity ratio is relatively low, showing manageable leverage levels. However, the equity ratio has declined, which could indicate a weakening financial position. Return on equity is negative, reflecting the company's struggle to generate profits for shareholders. Overall, the balance sheet suggests stability, but with potential risks if profitability does not improve.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating cash flow and free cash flow in the TTM period. This indicates that the company is facing difficulties generating cash from its core operations, which could impact its liquidity position. The company needs to enhance cash generation to sustain operations and fund future growth. The free cash flow to net income ratio is unfavorable, reflecting the need for effective cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	678.79M	707.63M	812.01M	661.51M	772.88M	668.69M
Gross Profit	450.87M	707.26M	617.99M	661.51M	607.83M	502.65M
EBITDA	-70.51M	-71.83M	111.07M	54.32M	-103.42M	26.99M
Net Income	-86.95M	-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	1.54B	979.45M	1.67B	2.06B	2.00B	2.08B
Total Debt	329.86M	304.86M	326.36M	326.36M	366.36M	366.36M
Total Liabilities	4.33B	4.41B	4.64B	4.44B	4.22B	4.27B
Stockholders Equity	617.60M	594.03M	679.52M	698.66M	725.36M	795.61M
Cash Flow
Free Cash Flow	-327.99M	-251.97M	81.52M	214.51M	-919.85M	-274.38M
Operating Cash Flow	-322.63M	-247.09M	87.95M	222.73M	-913.55M	-273.83M
Investing Cash Flow	206.51M	307.03M	16.73M	-328.15M	35.82M	-175.99M
Financing Cash Flow	-1.50M	-28.85M	-21.11M	89.67M	147.67M	65.92M

James River Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 5.6 is below the 20-day moving average (MA) of 5.69, below the 50-day MA of 5.74, and above the 200-day MA of 5.03, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.62 is Neutral, neither overbought nor oversold. The STOCH value of 57.51 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	72 Outperform	$422.69M	12.82	12.55%	7.15%	15.22%	19.19%
AMSF	72 Outperform	$853.06M	17.04	17.80%	10.13%	-2.51%	-22.68%
Sector *	67 Neutral	$17.04B	11.60	9.79%	3.95%	10.64%	1.80%
HIPO	55 Neutral	$793.45M	―	-3.27%	―	77.44%	85.53%
JRVR	53 Neutral	$257.13M	―	-13.01%	1.43%	-21.13%	1.34%
AMBC	45 Neutral	$396.49M	76.55	-2.23%	―	10.50%	-92.02%
MBI	28 Underperform	$332.45M	―	26.69%	―	583.33%	6.59%

James River Group Corporate Events

James River Group Announces Cash Dividend and Growth

On August 4, 2025, James River Group announced a cash dividend of $0.01 per common share, payable on September 30, 2025. The company reported a net income of $3.2 million for the second quarter of 2025, with significant growth in its E&S segment, achieving a milestone with quarterly gross written premiums exceeding $300 million. The company also noted a decline in expenses, reflecting strategic priorities to grow its casualty E&S business and manage expenses effectively.

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 Appoints New Board Director

On July 21, 2025, James River Group Holdings appointed Joel D. Cavaness as a director on its Board, filling a vacancy and joining the Compensation & Human Capital Committee. Cavaness brings nearly four decades of experience in specialty property-and-casualty distribution, having held significant roles at Arthur J. Gallagher & Co. His appointment is expected to enhance the Board’s perspective with his entrepreneurial mindset and extensive industry relationships.

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 Lawsuit Dismissed by Court

On July 17, 2025, the U.S. District Court, Southern District of New York dismissed a lawsuit filed by Fleming Intermediate Holdings LLC against James River Group Holdings, Ltd. and certain officers. The lawsuit, initiated 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 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 Enters New Credit Agreement

On June 12, 2025, James River Group Holdings, Ltd. entered into a new Credit Agreement with KeyBank and other financial institutions, replacing its previous credit agreement. The new agreement provides a $212.5 million unsecured revolving credit facility for general corporate purposes, maturing in 2028, and reflects the company’s reduced need for secured credit following the sale of its reinsurance business.

The most recent analyst rating on (JRVR) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on James River Group stock, see the JRVR Stock Forecast page.

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.