James River Group (JRVR) AI Stock Analysis

• Market Cap: $258.05M
• Dividend Yield: 1.42%
• Average Volume (3M): 259.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -20.88%
• EPS Growth: 1.34%
• Country: US
• Employees: 645
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Specialty
• EPS (TTM): 0.23
• Shares Outstanding: 45,916,454
• 10 Day Avg. Volume: 419,800
• 30 Day Avg. Volume: 259,369
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.86
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 0.97
• Enterprise Value/Ebitda: -9.24
• 1Y Price Target: $5.92
• Price Target Upside: 5.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: $5.50 ▼(-2.14% Downside)

James River Group's overall stock score reflects significant financial challenges, with persistent losses and cash flow issues being the most impactful factors. While the earnings call and corporate events provide some positive outlook, the technical analysis and valuation metrics suggest caution. The company needs to address its financial instability to improve its stock 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 (JRVR) is a specialty insurance and reinsurance company that focuses on providing innovative insurance solutions primarily in the property and casualty sector. The company operates through various segments, including its Insurance Services and Reinsurance divisions, offering products such as workers' compensation, general liability, and property insurance. JRVR aims to serve a diverse range of clients, including businesses and individuals, through tailored insurance products that meet specific risk management needs.

How the Company Makes Money

James River Group generates revenue primarily through the underwriting of insurance and reinsurance policies. The company earns premiums from policyholders, which constitute a significant portion of its income. Additionally, JRVR invests the premiums it collects in a diversified investment portfolio, yielding investment income that contributes to overall revenue. The company also benefits from fee income related to managing its insurance operations. Strategic partnerships with brokers and agents enhance its distribution capabilities, allowing it to reach a broader customer base and optimize its revenue streams. Furthermore, effective risk management and pricing strategies play a critical role in maintaining profitability and ensuring sustainable growth.

James River Group Financial Statement Overview

Summary

James River Group is facing financial challenges with declining revenues, negative profitability, and cash flow issues. Despite a stable balance sheet with manageable debt levels, operational inefficiencies and inability to generate positive cash flow are concerning.

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	665.34M	707.63M	812.01M	661.51M	609.03M	668.69M
Gross Profit	759.79M	707.26M	239.22M	661.51M	607.83M	668.69M
EBITDA	-79.73M	-71.83M	111.07M	68.19M	-103.42M	26.99M
Net Income	-89.81M	-81.12M	-107.68M	30.97M	-172.80M	4.82M
Balance Sheet
Total Assets	5.02B	5.01B	5.32B	5.14B	4.95B	5.06B
Cash, Cash Equivalents and Short-Term Investments	1.52B	64.53M	1.67B	1.43B	2.00B	2.08B
Total Debt	329.86M	304.86M	326.36M	326.36M	366.36M	366.36M
Total Liabilities	4.39B	4.41B	4.64B	4.44B	4.22B	4.27B
Stockholders Equity	625.67M	594.03M	679.52M	698.66M	725.36M	795.61M
Cash Flow
Free Cash Flow	-294.03M	-251.97M	81.52M	214.51M	-919.85M	-274.38M
Operating Cash Flow	-288.79M	-247.09M	87.95M	222.73M	-913.55M	-273.83M
Investing Cash Flow	-183.29M	307.03M	16.73M	-328.15M	35.82M	-175.99M
Financing Cash Flow	20.96M	-28.85M	-21.11M	89.67M	147.67M	65.92M

James River Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.62
• 50DMA: Negative
• 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 Negative. The current price of 5.62 is below the 20-day moving average (MA) of 5.73, below the 50-day MA of 5.70, and above the 200-day MA of 4.97, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.48 is Neutral, neither overbought nor oversold. The STOCH value of 21.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$464.61M	14.14	12.55%	6.44%	15.28%	26.05%
AMSF	72 Outperform	$876.99M	17.42	17.80%	9.79%	-0.86%	-11.19%
Sector *	68 Neutral	$17.90B	11.92	10.28%	3.72%	9.73%	1.69%
MBI	56 Neutral	$401.89M	―	26.69%	―	―	66.83%
HIPO	55 Neutral	$835.44M	―	-3.27%	―	43.15%	94.09%
JRVR	52 Neutral	$258.05M	―	-13.01%	1.42%	-20.88%	1.34%
AMBC	51 Neutral	$404.16M	64.08	-4.09%	―	-17.06%	-118.90%

James River Group Corporate Events

James River Group Announces Leadership Transition

On August 26, 2025, James River Group announced the retirement of William K. Bowman, President and CEO of its Specialty Admitted segment, effective September 30, 2025. Lisa Binnie has been named as his successor, with her appointment effective September 1, 2025, to ensure a smooth transition.

James River Group CEO Transition and New Role

On July 31, 2025, Richard J. Schmitzer stepped down as CEO of James River Group‘s Excess & Surplus Lines segment, transitioning to Senior Vice President, Underwriting, until his retirement in the fourth quarter of 2025. The amendment to his employment agreement, effective August 11, 2025, outlines his new role and compensation, with provisions for severance pay in case of termination without cause, impacting company operations and leadership transition.

James River Group Highlights Q2 2025 Profitability Focus

James River Group Holdings, Ltd. presented its second quarter 2025 investor presentation, highlighting a focus on profitability through strategic positioning, experienced management, and technological advancements. The company reported a 14% annualized adjusted net operating return on tangible common equity and a $300 million milestone in gross written premium in E&S, demonstrating momentum in niche casualty classes and an attractive renewal rate environment.

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.

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.

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.

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.