James River Group Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a net loss available to common shareholders of $189.4 million ($4.08 per diluted share) for the three months ended September 30, 2026, compared to a net loss of $948,000 ($0.02 per diluted share) in the same period in 2025.
• Net loss from continuing operations was $189.3 million ($4.08 per diluted share) in Q3 2026 versus a net loss of $376,000 ($0.01 per diluted share) in Q3 2025.
• Adjusted net operating loss was $4.4 million ($0.10 per diluted share) for Q3 2026, compared to adjusted net operating income of $17.4 million ($0.32 per diluted share) in Q3 2025.
• Gross written premiums were $186.1 million for Q3 2026, a 22% decrease from $237.3 million in Q3 2025.
• Net written premiums were $105.0 million for Q3 2026, a 14% decrease from $122.7 million in Q3 2025.
• Net earned premiums were $127.7 million for Q3 2026, a 14% decrease from $148.5 million in Q3 2025.
• Net investment income was $22.2 million for Q3 2026, a 1% increase from $21.9 million in Q3 2025.
• Net realized and unrealized losses on investments were $2.9 million for Q3 2026, compared to net gains of $1.2 million in Q3 2025.
• The consolidated combined ratio was 115.6% for Q3 2026, compared to 94.0% in Q3 2025.
• The consolidated loss ratio was 81.9% for Q3 2026, compared to 65.7% in Q3 2025.
• The consolidated expense ratio was 33.7% for Q3 2026, compared to 28.3% in Q3 2025.
• Shareholders' equity was $291.9 million at September 30, 2026, down from $538.2 million at December 31, 2025.
• Tangible common equity was $367.8 million at September 30, 2026, a 10.5% decrease from $411.0 million at December 31, 2025.
• Senior debt remained at $225.8 million and junior subordinated debt at $104.1 million as of September 30, 2026.

Guidance and Future Outlook:

• The Company noted that it continues to observe lower frequency and reduced incurred loss dynamics across the entire E&S portfolio from accident years beginning in 2023.
• Management indicated it will continue to monitor trends to inform reserve estimates.
• No specific forward-looking numerical guidance for future quarters or full-year results was provided in the press release.

Business Segments and Product Lines:

• Excess and Surplus Lines (E&S):
  • Gross written premiums were $170.4 million (down 19% from Q3 2025).
  • Net written premiums were $104.0 million (down 15% from Q3 2025).
  • Net earned premiums were $126.3 million (down 10% from Q3 2025).
  • Underwriting loss was $10.8 million for Q3 2026, compared to underwriting profit of $16.4 million in Q3 2025.
  • New and renewal submission growth for active divisions increased 8% year-over-year.
  • The segment recognized net adverse development of $19.2 million on total net reserves of $1.0 billion, driven by a specific portfolio in the Product Liability line that is fully in runoff.
  • The segment's combined ratio was 108.5% for Q3 2026, compared to 88.3% in Q3 2025.
• Specialty Admitted Insurance:
  • Gross written premiums were $15.7 million (down 43% from Q3 2025).
  • Net written premiums were $0.98 million (down 4% from Q3 2025).
  • Net earned premiums were $1.4 million (down 83% from Q3 2025).
  • Underwriting loss was $3.5 million for Q3 2026, compared to a loss of $0.35 million in Q3 2025.
  • The segment recognized net adverse development of $1.4 million.
  • The segment's combined ratio was 115.6% (consolidated) / 108.5% (E&S) / 115.6% (Specialty Admitted implied by loss/expense ratios).
• Expense Reductions:
  • General and administrative expenses declined 9% year-over-year for both the quarter and year-to-date.
  • Specialty Admitted expenses declined 40% year-to-date.
  • Corporate segment expenses declined 15% year-to-date.

Market and Competitive Landscape:

• The Company faces heightened competition across casualty lines.
• The Company remains disciplined in adding risk that aligns with underwriting standards, choosing to focus on growth in smaller accounts.
• The market opportunity set for E&S submission growth remains strong.

Risks and Challenges:

• A non-cash goodwill impairment of $181.8 million was recognized in Q3 2026, resulting from a quantitative impairment assessment due to sustained decline in stock price and market conditions.
• Adverse reserve development occurred in the E&S segment, specifically in the Product Liability line.
• Net realized and unrealized losses were driven by rate increases impacting the fair value of preferred stock holdings.
• Accumulated other comprehensive loss increased by $52.0 million due to the rise in rates during the year.
• The press release lists extensive forward-looking risks including reserve estimation uncertainty, loss frequency/severity, reinsurance counterparty risk, regulatory changes, and cyber security incidents.

Management Commentary and Tone:

• Frank D'Orazio, CEO, stated that E&S submission growth and the market opportunity set remain strong across the franchise.
• Management emphasized leveraging investments in technology and emphasizing smaller accounts and greater profitability.
• Regarding the reserve review, D'Orazio noted that while the Company sees distinct improvement in overall profitability since 2023, reserves were bolstered in the Product Liability line to address a specific portfolio in runoff.
• The tone reflects confidence in the underlying market opportunity despite the current quarter's impairment and reserve charges.

Other Key Points:

• The Board of Directors declared a cash dividend of $0.01 per share of common stock, payable on December 31, 2026, to shareholders of record as of December 15, 2026.
• The Company closed the sale of JRG Reinsurance Company Ltd. on April 16, 2024, resulting in the Casualty Reinsurance segment being classified as discontinued operations.
• The goodwill impairment was related to goodwill added to the balance sheet when the Company was acquired by an investor group in 2007, not from a current acquisition.
• The impairment charge does not affect the Company's adjusted net operating results, statutory capital, or compliance with debt covenants.
• The Company's annualized gross investment yield on average fixed maturity, bank loan, and equity securities was 4.7% for the three months ended September 30, 2026.
• Private investment income was $2.2 million, up $1.1 million from the prior year period.
• Fixed income securities generated more than 10% higher net investment income compared to the prior year period.