Companies

James River Cuts Specialty Admitted Premiums to Chase E&S

The Tip Desk · August 10, 2026 · 3 min read

Gross written premium fell 29% to $268.9 million as Specialty Admitted collapsed 76% and group retention rose to 55%.

James River Group Holdings (JRVR) reported gross written premium of $268.9 million for the three months ended June 30, 2026, down 29% from $378.0 million a year earlier, as the specialty insurer deliberately cut Specialty Admitted fronting and shifted mix toward Excess and Surplus Lines.

Specialty Admitted Insurance gross written premium was $18.7 million, a 76% decline from $77.6 million, because the company reduced fronting exposure in view of more attractive E&S opportunities and also cut segment expenses. E&S gross written premium was $250.2 million, down 17% from $300.4 million. Net written premium was $148.4 million; Specialty Admitted net written premium was $0.7 million. Net earned premium was $139.0 million, with Specialty Admitted net earned premium of $1.7 million. Premium retention across the group was 55%, versus 47% a year earlier.

Consolidated underwriting on continuing operations, excluding retroactive reinsurance, produced a combined ratio of 100.2%, versus 98.6% a year earlier. The loss ratio improved to 66.3% from 68.1%, while the expense ratio rose to 33.9% from 30.5%. E&S combined ratio was 92.8%, with a 65.4% loss ratio and a 27.4% expense ratio; E&S underwriting profit was $9.9 million. Specialty Admitted recorded an underwriting loss of $2.8 million.

Pre-tax net adverse reserve development on business not subject to retroactive reinsurance was $0.6 million, versus $3.0 million a year earlier. The company experienced de minimis net adverse development in each segment and used the remaining $7.5 million of the Cavello Bay E&S Top Up ADC limit. It continues to observe lower frequency and incurred losses in more recent accident years after significant underwriting changes. General and administrative expenses declined 7% versus the prior-year quarter, with Specialty Admitted down 39% and Corporate down 9%.

Net income available to common shareholders was $4.4 million, or $0.10 a share, up 59% from $2.8 million, or $0.06 a share, a year earlier. Adjusted net operating income was $10.0 million, or $0.20 a share, versus $11.7 million, or $0.23 a share. Net investment income was $20.3 million, largely flat versus $20.5 million; private investment income was $0.3 million. Annualized gross investment yield on average fixed maturity, bank loan and equity securities was 4.6%. Net realized and unrealized gains on investments were $1.0 million.

Tangible common equity was $416.7 million at June 30, 2026, and tangible common equity per share was $9.01. Adjusted net operating return on tangible common equity was 9.8%. Shareholders’ equity was $522.6 million. Other comprehensive loss was $1.0 million, increasing accumulated other comprehensive loss to $44.9 million. The board declared a cash dividend of $0.01 a share, payable September 30, 2026.

Chief Executive Officer Frank D’Orazio said second-quarter results reflect progress against key priorities, that the company continues to see meaningful growth in submissions and quotes, and that it remains committed to a disciplined approach of putting capital to work amid a competitive E&S backdrop.