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James River Group Holdings Ltd. (JRVR)
:JRVR
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James River Group
(NASDAQ:JRVR)
49Neutral
Positive Factors
Reinsurance Agreements
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.
Negative Factors
Balance Sheet Confidence
The company's balance sheet lacks confidence, limiting upside in the stock.
James River Group (JRVR) vs. S&P 500 (SPY)
Market Cap
$179.84M
Dividend Yield4.07%
Average Volume (3M)382.37K
Price to Earnings (P/E)―
Beta (1Y)0.95
Revenue Growth-23.55%
EPS Growth0.38%
CountryUS
Employees649
SectorFinancial
Sector Strength77
IndustryInsurance
Share Statistics
EPS (TTM)-2.90
Shares Outstanding45,644,318
10 Day Avg. Volume823,688
30 Day Avg. Volume382,369
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.25
Price to Cash Flow (P/CF)6.00
P/FCF Ratio3.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.42Price Target Upside62.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
James River Group Business Overview & Revenue Model
Company DescriptionJames River Group Holdings, Ltd. (JRVR) is a specialty insurance and reinsurance company that operates primarily in the United States. The company is known for its expertise in providing specialty property and casualty insurance products and services. It operates through three core segments: Excess and Surplus Lines, Specialty Admitted Insurance, and Casualty Reinsurance. James River Group focuses on offering tailored insurance solutions to niche markets that are often underserved by the standard insurance market, enabling it to address unique risks and provide customized coverage options.
How the Company Makes MoneyJames River Group makes money by underwriting insurance policies and collecting premiums from its customers. The company's revenue model revolves around its three core segments. In the Excess and Surplus Lines segment, JRVR offers insurance products for risks that are hard to place in the standard market, charging premiums that reflect the specialized nature of the coverage. In the Specialty Admitted Insurance segment, the company provides customized insurance solutions that are admitted in certain states, allowing it to leverage regulatory approvals to access broader markets. The Casualty Reinsurance segment contributes to revenue by providing reinsurance solutions to other insurance companies, thereby earning premiums for assuming portions of their risk. Additionally, James River Group generates investment income from its portfolio of invested assets, which enhances its overall earnings. Strategic partnerships and a focus on niche markets further contribute to its profitability by allowing the company to capitalize on specialized expertise and market gaps.
James River Group Financial Statement Overview
Summary
James River Group is facing challenges in profitability and cash flow, with significant revenue fluctuations and consistent net losses affecting its financial health. The balance sheet shows a strong equity base, but reduced assets and negative returns are concerning. The company needs to address operational inefficiencies and stabilize cash flow to improve financial performance.Income Statement
The company's revenue has shown significant volatility, with a recent decline from $812 million in 2023 to $707 million in 2024. The net profit margin is negative due to consistent net losses over the years, indicating ongoing profitability challenges. The gross profit margin remains stable, but negative EBIT and EBITDA margins highlight operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet shows a strong equity position with a debt-to-equity ratio of 0 as of 2024, indicating no financial leverage. However, the company's total assets have decreased significantly, and the return on equity is negative due to net losses, pointing to underperformance in asset utilization.55
Neutral
Cash Flow
Cash flow from operations turned negative in 2024, reflecting challenges in generating cash from core activities. The free cash flow has also deteriorated, although the company had positive free cash flow in previous years, indicating potential liquidity risks if negative trends continue.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 707.63M | 812.01M | 813.70M | 772.88M | 668.69M | Gross Profit |
| 707.26M | 617.99M | 617.78M | 607.83M | 502.65M | EBIT |
| -63.49M | 0.00 | 67.65M | -200.89M | 7.39M | EBITDA |
| -63.49M | 111.07M | 1.08B | -94.49M | 26.99M | Net Income Common Stockholders |
| -81.12M | -107.68M | 30.97M | -172.80M | 4.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 64.53M | 1.96M | 2.06B | 2.00B | 2.08B | Total Assets |
| 5.01B | 5.32B | 5.14B | 4.95B | 5.06B | Total Debt |
| 304.86M | 326.36M | 326.36M | 366.36M | 366.36M | Net Debt |
| -57.49M | 52.06M | 153.19M | 176.23M | 204.09M | Total Liabilities |
| 4.41B | 4.64B | 4.44B | 4.22B | 4.27B | Stockholders Equity |
| 460.92M | 679.52M | 698.66M | 725.36M | 795.61M |
| Cash Flow | Free Cash Flow | |||
| -27.19M | 81.52M | 214.51M | -919.85M | -274.38M | Operating Cash Flow |
| -27.19M | 87.95M | 222.73M | -913.55M | -273.83M | Investing Cash Flow |
| 141.97M | 16.73M | -328.15M | 35.82M | -175.99M | Financing Cash Flow |
| -52.21M | -21.11M | 89.67M | 147.67M | 65.92M |
James River Group Technical Analysis
Negative
3.94
Price Trends
4.68
Negative
5.03
Negative
6.13
Negative
Market Momentum
-0.23
Positive
36.15
Neutral
47.64
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 3.94 is below the 20-day moving average (MA) of 4.52, below the 50-day MA of 4.68, and below the 200-day MA of 6.13, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 36.15 is Neutral, neither overbought nor oversold. The STOCH value of 47.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JRVR.
James River Group Risk Analysis
James River Group disclosed 66 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $162.34B | 19.35 | 36.98% | 1.76% | 21.36% | 118.77% | |
77 Outperform | $23.88B | 14.36 | 22.16% | 0.50% | 12.32% | 29.21% | |
73 Outperform | $23.33B | 9.18 | 16.52% | ― | 5.17% | 35.36% | |
72 Outperform | $53.42B | 11.70 | 23.80% | 1.85% | 12.28% | ― | |
71 Outperform | $6.92B | 20.29 | 23.56% | 0.78% | 18.31% | 13.13% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
49 Neutral | $179.84M | ― | -9.97% | 4.07% | -23.55% | 0.38% |
* Financial Sector Average
Performance Comparison
JRVR
James River Group
3.94
-2.70
-40.66%
ALL
Allstate
201.58
44.66
28.46%
MKL
Markel
1,827.11
325.83
21.70%
PGR
Progressive
276.94
81.24
41.51%
RLI
RLI
74.44
2.77
3.86%
WRB
W. R. Berkley Corporation
61.96
6.34
11.40%
James River Group Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -19.43% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging year for James River Group with significant losses and increased reserves. However, there are positive signs of growth in the E&S segment and strong investment portfolio performance. The rate environment remains favorable, but the losses and reserve challenges weigh heavily on the overall sentiment.Highlights
Investment Portfolio Performance
The investment portfolio generated $93.1 million of net investment income from continuing operations, marking a 10.8% increase over 2023.
E&S Segment Growth
E&S business grew by 2% for the fourth quarter, with an 11.2% growth across remaining divisions excluding excess casualty. December's production saw significant year-over-year increases.
Positive Rate Environment
Achieved a positive renewal rate change of 9% in 2024, reflecting strong market momentum and a continued positive outlook for the E&S sector.
Specialty Admitted Segment Performance
The segment generated a combined ratio of 95.3% in Q4 and 92.2% for the full year, with underwriting profit growth of 68.6% over the prior year.
Lowlights
Adjusted Net Operating Loss
Reported an adjusted net operating loss of $40.8 million or $0.99 per share for the fourth quarter.
Net Loss from Continuing Operations
Net loss from continuing operations available to common shareholders was $92.7 million or $2.25 per share.
Higher E&S Accident Year Loss Ratio
The 2024 E&S accident year loss ratio of 64.3% was 2.4 points higher than the previous year, reflecting a cautious approach.
Increased Reserves in E&S Segment
Year-end increase in reserves for the E&S segment of $38.4 million, driven by continued higher severity and frequency in certain claims.
Company Guidance
During the James River Group Q4 2024 Earnings Call, CEO Frank D'Orazio highlighted the company's transformative year, emphasizing strategic moves to address legacy issues and strengthen their balance sheet. Key metrics included a 10.8% increase in net investment income, reaching $93.1 million, and a $1 billion E&S business growth by 2% for the quarter. The accident year combined ratio for the E&S segment was 91.8%, with an accident year loss ratio of 64.3%, reflecting a cautious outlook. The Specialty Admitted segment reported a full-year combined ratio of 92.2% with an 8.3% increase in gross premiums. Looking ahead, CFO Sarah Doran provided guidance for 2025, expecting a mid-teen operating return on tangible common equity and similar accident year loss ratios as 2024, despite a $52.8 million expense for adverse development cover. The company aims to capitalize on robust market conditions and underwriting improvements, anticipating accelerated growth in 2025.James River Group Corporate Events
Executive/Board ChangesDividendsBusiness Operations and StrategyFinancial Disclosures
James River Group Announces Leadership Changes and Dividend
Neutral
Mar 3, 2025
On February 27, 2025, Ollie L. Sherman, Jr. resigned as a director of James River Group, effective April 30, 2025, with no disagreements cited. Christine LaSala was appointed as the new Non-Executive Chairperson on February 20, 2025. The company also declared a cash dividend of $0.01 per share, payable on March 31, 2025. James River reported a net loss of $92.7 million for Q4 2024, largely due to a $52.8 million reinsurance contract payment and a $27 million deemed dividend. Despite these losses, strategic actions in 2024, including the sale of JRG Reinsurance and partnerships with Enstar, have strengthened the company’s balance sheet. The E&S segment saw a slight premium increase, and the company achieved its highest submission growth in five years. The Specialty Admitted Insurance segment improved its combined ratio, and net investment income rose by 10.8% in 2024.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.