James River Group Holdings, Ltd. reported significant financial changes in its third quarter and nine-month results for 2024, reflecting a challenging operational environment and strategic shifts. As of September 30, 2024, total assets decreased to $4,958.7 million from $5,317.3 million at the end of 2023. Total liabilities also fell to $4,283.5 million from $4,637.7 million, while total shareholders' equity slightly declined to $530.3 million from $534.6 million.
The company experienced a decline in gross written premiums, reporting $330.4 million for Q3 2024, down 3.6% from $342.9 million in Q3 2023. For the nine months ended September 30, 2024, gross written premiums totaled $1,073.5 million, a decrease from $1,119.4 million in the same period last year. Net earned premiums also fell, with Q3 2024 figures at $159.7 million, down 13.0% from $183.7 million in Q3 2023, and nine-month net earned premiums at $494.6 million, down from $526.1 million.
The underwriting results were notably poor, with an underwriting loss of $56.8 million in Q3 2024 compared to a profit of $11.8 million in Q3 2023. The combined ratio for Q3 2024 rose to 135.5%, up from 93.6% in the prior year, primarily due to a loss ratio increase to 104.1% from 67.2%. This deterioration was attributed to net adverse reserve development of $56.9 million, significantly higher than the $7.8 million reported in Q3 2023.
Net investment income for Q3 2024 increased to $23.6 million, up 8.1% from $21.8 million in Q3 2023, driven by higher gains from private investments. However, the company reported a net loss of $39.4 million for Q3 2024, a stark contrast to the net income of $19.6 million in Q3 2023. For the nine-month period, the net loss was $24.2 million, compared to a net income of $34.6 million in the same period of 2023.
Strategically, James River completed the sale of JRG Reinsurance Company Ltd. on April 16, 2024, for approximately $291.4 million, marking a significant shift in its operations. The sale was part of a broader strategy to streamline its business focus, resulting in the classification of JRG Re as discontinued operations. The company also faced operational challenges, including a non-renewed large California workers' compensation program and a decline in individual risk workers' compensation premiums.
Overall, the financial results for James River Group Holdings, Ltd. reflect a period of transition, with significant impacts from strategic decisions and market conditions affecting both revenue and profitability.
About James River Group Holdings, Ltd.
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