tiprankstipranks
Trending News
More News >
James River Group Holdings Ltd (JRVR)
NASDAQ:JRVR
US Market

James River Group (JRVR) AI Stock Analysis

Compare
108 Followers

Top Page

JR

James River Group

(NASDAQ:JRVR)

Rating:59Neutral
Price Target:
$6.50
▲(10.73%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
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 (JRVR) vs. SPDR S&P 500 ETF (SPY)

James River Group Business Overview & Revenue Model

Company DescriptionJames 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 MoneyJames 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 Earnings Call Summary

Earnings Call Date:May 05, 2025
(Q1-2025)
|
% Change Since: 19.80%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balance of positive developments, such as strong performance in the E&S segment and successful resolution of the purchase price adjustment, against challenges like declining premiums in the Specialty Admitted segment and increased expenses. While the company shows a focus on profitability and growth, there are areas of concern that need to be addressed.
Q1-2025 Updates
Positive Updates
Successful Conclusion of Purchase Price Adjustment
The company concluded the post-close purchase price adjustment process for the former Bermuda Reinsurance segment with a downward adjustment of approximately $500,000, significantly less than the $54 million initially claimed by the purchaser.
Strong E&S Segment Performance
The E&S segment had a combined ratio of 91.5% for Q1 with $11.7 million of underwriting income. The accident year loss ratio improved slightly to 63.4%.
Growth in Tangible Common Book Value
Tangible common book value per share grew by 6.6% to $7.11.
Renewal Rate Increases
The first quarter saw renewal rates up 7.8% in the Process segment, with several divisions experiencing double-digit increases, including Environmental, Energy, and Excess Casualty.
Net Income and Operating Return
Net income from continuing operations was $0.18 per share with an 11.5% adjusted net operating return on tangible common equity.
Negative Updates
Decline in Specialty Admitted Gross Written Premiums
Gross written premiums in the Specialty Admitted segment declined 21% compared to the prior year quarter, driven by reduced primary commercial auto exposure.
Increased Expense Ratio
The expense ratio increased to 32.7% from 28.9% a year ago, although improvement is expected throughout the year.
Reduced Net Investment Income
Net investment income slightly decreased to $20 million from the prior year quarter due to reduced assets under management.
Challenges in Construction Claims in Florida
Elevated claim activity in the Manufacturers & Contractors book in Florida continued, partially attributed to a rush by plaintiff attorneys to file claims.
Flat Gross Premium for E&S Segment
Despite strong market conditions, gross premium for the E&S segment was essentially flat compared to the prior year.
Company Guidance
During the James River Group's Q1 2025 earnings call, the company reported a net income of $0.18 per share from continuing operations and an adjusted net operating income of $0.19 per share. The E&S segment saw significant growth, with new and renewal submissions up 6%, and strong departmental premium growth, including 26% in Environmental and 18% in Manufacturers & Contractors. The E&S segment achieved a combined ratio of 91.5% and an accident year loss ratio of 63.4%. Meanwhile, the Specialty Admitted segment reported a decline in gross written premiums by 21%, with a combined ratio of 102.1%. The company is focused on derisking the portfolio and improving profitability, reflected in a tangible common book value per share increase of 6.6% to $7.11. Additionally, investment income for the quarter was $20 million, with a new money yield in the low to mid-5s and a book yield of around 4.4%. The company is also planning to redomicile to the U.S. to reduce its effective tax rate, expecting an expense reduction of $3 million to $6 million annually.

James River Group Financial Statement Overview

Summary
James River Group is facing financial challenges with declining revenues, negative profitability, and cash flow issues. While the balance sheet maintains stability with manageable debt levels, operational inefficiencies and cash flow deficits are significant concerns.
Income Statement
45
Neutral
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
58
Neutral
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue678.79M707.63M812.01M661.51M772.88M668.69M
Gross Profit450.87M707.26M617.99M661.51M607.83M502.65M
EBITDA-81.16M-71.83M111.07M54.32M-103.42M26.99M
Net Income-86.95M-81.12M-107.68M30.97M-172.80M4.82M
Balance Sheet
Total Assets4.95B5.01B5.32B5.14B4.95B5.06B
Cash, Cash Equivalents and Short-Term Investments1.54B979.45M1.67B2.06B2.00B2.08B
Total Debt329.86M304.86M326.36M326.36M366.36M366.36M
Total Liabilities4.33B4.41B4.64B4.44B4.22B4.27B
Stockholders Equity484.48M594.03M679.52M698.66M725.36M795.61M
Cash Flow
Free Cash Flow-327.99M-251.97M81.52M214.51M-919.85M-274.38M
Operating Cash Flow-322.63M-247.09M87.95M222.73M-913.55M-273.83M
Investing Cash Flow206.51M307.03M16.73M-328.15M35.82M-175.99M
Financing Cash Flow-1.50M-28.85M-21.11M89.67M147.67M65.92M

James River Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.87
Price Trends
50DMA
5.25
Positive
100DMA
4.79
Positive
200DMA
5.13
Positive
Market Momentum
MACD
0.14
Positive
RSI
56.77
Neutral
STOCH
46.67
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 5.87 is above the 20-day moving average (MA) of 5.82, above the 50-day MA of 5.25, and above the 200-day MA of 5.13, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 56.77 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JRVR.

James River Group Risk Analysis

James River Group disclosed 61 risk factors in its most recent earnings report. James River Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

James River Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$835.74M17.6816.89%3.55%-2.51%-22.68%
67
Neutral
$16.66B11.449.71%3.91%11.61%-10.70%
66
Neutral
$406.47M13.7211.69%0.85%15.22%19.19%
59
Neutral
$269.39M-11.67%0.68%-23.83%-11.60%
55
Neutral
$699.62M-15.58%77.44%85.53%
47
Neutral
$326.85M65.00-2.23%10.50%-92.02%
MBMBI
28
Underperform
$217.60M26.69%583.33%6.59%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JRVR
James River Group
5.87
-1.77
-23.17%
AMSF
Amerisafe
43.87
3.54
8.78%
ITIC
Investors Title Company
215.49
49.27
29.64%
MBI
MBIA
4.32
-0.97
-18.34%
AMBC
Ambac Financial
7.04
-5.47
-43.73%
HIPO
Hippo Holdings
27.81
11.78
73.49%

James River Group Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
James River Group Enters New Credit Agreement
Neutral
Jun 13, 2025

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.

Business Operations and StrategyFinancial Disclosures
James River Group Reports Strong Q1 2025 Performance
Positive
May 12, 2025

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.

Executive/Board ChangesDividendsFinancial Disclosures
James River Group Announces Leadership Change in 2025
Neutral
May 5, 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 29, 2025