Archive for the ‘Insurance’ Category

Canada Life Reinsurance enters into £1.7bn longevity risk reinsurance agreement with MMC U.K. Pension Fund

FacebookTwitterGoogle+Share

ST. MICHAEL, Barbados, Sept. 14, 2017 /PRNewswire-HISPANIC PR WIRE/ — Canada Life Reinsurance is pleased to announce that it has recently entered into a long term reinsurance agreement to cover the longevity risk on £1.7 billion of liabilities for approximately 7,500 pensioner members of the Marsh & McLennan Companies (MMC) U.K. Pension Fund. This transaction was written by the Barbados Branch of Canada Life via a reinsurance agreement with Guernsey based captive insurer cells managed by Marsh Guernsey.

Tom O’Sullivan, General Manager of the Barbados Branch of Canada Life commented “I am pleased to announce this major reinsurance agreement, which reflects our ability to collaborate effectively with the MMC U.K. Pension Fund to create a solution to efficiently hedge their longevity risk.”

Jeff Poulin, Global Head of Canada Life Reinsurance, added “This transaction highlights our expertise in underwriting large, complex and innovative risk transfer initiatives together with the value of our financial strength.”

Canada Life Reinsurance offers a range of innovative risk and capital management solutions covering mortality, longevity, health and lapse risks for insurers, reinsurers and pension funds across the U.S. and Europe. Canada Life Reinsurance continues to develop innovative reinsurance solutions it offers to insurers and reinsurers in many European markets including the Netherlands, the U.K., France, Germany, Italy, Spain, Portugal, Sweden, Belgium and Ireland.

About Canada Life

Canada Life is part of a group of companies owned by Great-West Lifeco Inc., a diversified financial services holding company headquartered in Winnipeg, Canada. Great-West Lifeco and its insurance subsidiaries have received strong ratings from major rating agencies.

About Great-West Lifeco
Great-West Lifeco Inc. is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. Great-West Lifeco has operations in Canada, the United States and Europe through Great-West Life, London Life, Canada Life, Irish Life, Great-West Financial and Putnam Investments. Great-West Lifeco and its companies have £809 billion (over C$1.3 trillion) in consolidated assets under administration as of June 30, 2017 and are members of the Power Financial Corporation group of companies. To learn more, visit www.greatwestlifeco.com.

Click Here for More Information »

James River Group Holdings informa sobre ingresos netos e ingresos operativos netos de 12,8 millones de USD o 0,43 USD por acción diluida durante el primer trimestre de 2016

Crecimiento del 7,5 % en ganancias operativas netas por acción con respecto al primer trimestre de 2015 (crecimiento del 34,4 % en ganancias por acción)

Crecimiento del 8,4 % en el segmento de E&S y crecimiento del 37,1 % en las primas brutas emitidas del segmento de seguros de productos especiales admitidos respecto al primer trimestre de 2015

Aumento del 5,2 % en el capital tangible por acción ordinaria durante el primer trimestre de 2016

Declara dividendos trimestrales de 0,20 USD por acción

CaribPR Wire, PEMBROKE, Bermudas, May 06, 2016: James River Group Holdings, Ltd. (NASDAQ:JRVR) anunció hoy los resultados financieros del trimestre que finalizó el 31 de marzo de 2016.

Lo más destacado del trimestre incluye lo siguiente:

  • Primas brutas emitidas de 133,1 millones de USD, según lo siguiente:
Three Months Ended March 31,
(in thousands) 2016 2015 Change
Excess and Surplus Lines $ 82,108 $ 75,718 8.4 %
Specialty Admitted Insurance 28,687 20,926 37.1 %
Casualty Reinsurance 22,276 34,614 (35.6 )%
$ 133,071 $ 131,258 1.4 %
  • Ganancias operativas por acción completamente diluidas de 0,43 USD en comparación con los 0.40 USD del primer trimestre de 2015.
  • Ganancias por acción completamente diluidas de 0,43 USD en comparación con los 0,32 USD del primer trimestre de 2015.
  • Ingresos operativos netos de 12,8 millones de USD en comparación con los 11,7 millones de USD del primer trimestre de 2015.
  • Ingresos netos de 12,8 millones de USD en comparación con los 9,4 millones de USD del primer trimestre de 2015.
  • Primas netas emitidas de 106,9 millones de USD, con una baja del 1,6 % con respecto al primer trimestre de 2015.
  • Un índice combinado de 95,9 % en comparación con el 97,5 % del primer trimestre de 2015.
  • Un índice de pérdidas de 62,8 % en comparación con el 63,7 % del primer trimestre de 2015.
  • Una reducción en nuestro índice de gastos de 0,6 puntos a partir de los 33,8 % del primer trimestre del 2015 a 33,2 %.
  • Un aumento del 5,2 % en capital tangible por acción ordinaria a partir de los 15,88 USD registrados al 31 de diciembre de 2015 para alcanzar 16,17 USD al 31 de marzo de 2016.

J. Adam Abram, presidente y director ejecutivo, afirmó: “Nos complace haber tenido un comienzo de año sólido y seguimos encaminados para lograr nuestro objetivo de un rendimiento operativo sobre el capital tangible promedio del 12,0 % o superior y un índice combinado de entre 92 % y 95 % para 2016. El segmento de líneas de excesos y excedentes (Excess and Surplus, E&S), nuestro segmento más grande y rentable, continuó logrando el crecimiento en su prima y registró aumentos en las tasas ajustadas a la exposición. Además, nuestros segmentos de productos especiales admitidos y reaseguros de responsabilidad tuvieron resultados de seguros rentables e índices combinados menores a los del año anterior”.

“Nuestro capital tangible creció un 5,4 % en el primer trimestre de 2016 de 459,7 millones de USD al 31 de diciembre de 2015 a 484,4 millones de USD al 31 de marzo de 2016. Este crecimiento en el capital tangible refleja 12,8 millones de USD de ingresos netos y un aumento de 15,6 millones de USD en otros ingresos globales compensados por el pago de 5,8 millones de USD de dividendos”.

“El índice de crecimiento en nuestro segmento de E&S fue de un 8,4 % para el trimestre”. Ejecutamos más pólizas en el primer trimestre del 2016 que en el primer trimestre del año anterior, pero con menores primas promedio por cuenta. Nuestra estrategia nos permitió aumentar las tasas en nueve décimas de uno por ciento para el trimestre en este segmento. Estamos muy satisfechos con ese resultado”.

“También tuvimos oportunidades de crecimiento rentable en nuestro segmento de seguros de productos especiales admitidos, en donde nuestras primas brutas emitidas aumentaron un 37,1 % en el trimestre. Nuestro negocio de los cargos en este segmento sigue creciendo y el índice de gastos sigue disminuyendo a medida que aumentan tanto las primas percibidas como los cargos”.

“Nuestro segmento de reaseguro de responsabilidad se vio afectado por ajustes en la prima por contratos del año anterior. Estos ajustes redujeron las primas en 10 millones de USD en el primer trimestre, mientras que en el año anterior, estos ajustes aumentaron las primas en 7,3 millones de USD. En ambos períodos, estos ajustes tuvieron un impacto mínimo en nuestras ganancias de seguros”.

“En línea con el énfasis de nuestra Junta Directiva en relación con la administración y el uso eficiente del capital, los directores votaron por la declaración de un dividendo de 0,20 USD por acción, que se pagará el 30 de junio de 2016”.

Los resultados del trimestre que finalizó el 31 de marzo de 2016 incluyen un desarrollo favorable de las reservas de 4,7 millones de USD respecto de los años de siniestros anteriores. El año anterior, este desarrollo favorable de las reservas fue de 2,5 millones de USD. El desarrollo favorable de las reservas para el trimestre es de 4,2 millones de USD después de impuestos (2 millones de USD el año anterior). El desarrollo antes de impuestos por segmento fue el siguiente:

Three Months Ended March 31,
2016 2015 Change
(in thousands)
Excess and Surplus Lines $ 4,393 $ 4,936 $ (543 )
Specialty Admitted Insurance 311 7 304
Casualty Reinsurance (37 ) (2,454 ) 2,417
$ 4,667 $ 2,489 $ 2,178

Los ingresos netos por inversiones durante el primer trimestre de 2016 fueron de 11,3 millones de USD. Este monto se compara con los 12 millones de USD del mismo período de 2015. La causa principal de la disminución en los ingresos netos por inversiones fue una reducción en los ingresos por nuestras inversiones en energía renovable de 2,5 millones a 682 000 USD en los trimestres que finalizaron el 31 de marzo de 2015 y 2016, respectivamente. Sin considerar este elemento, nuestros ingresos netos por inversiones aumentaron 1,1 millones de USD (11,1 %) con respecto al primer trimestre del año anterior para alcanzar 10,6 millones de USD (de 9,5 millones de USD) debido principalmente a una redistribución de más de 140 millones de USD desde nuestra cartera de inversiones a corto plazo a valores de vencimiento fijo de mayor duración durante el período del 31 de marzo de 2015 al 31 de marzo de 2016. Este aumento en los ingresos netos por inversiones también se debió a un aumento del 3,4 % en nuestros activos invertidos y efectivo promedio durante el primer trimestre de 2016, en comparación con el primer trimestre de 2015. Nuestro rendimiento bruto anualizado de inversiones sobre activos invertidos y efectivo promedio en el trimestre que finalizó el 31 de marzo de 2016 fue del 3,6 % y la duración promedio de nuestra cartera fue de 3,6 años.

En el primer trimestre de 2016, también declaramos 547 000 USD en ganancias netas realizadas por inversiones. Estas ganancias realizadas por inversiones incluyeron 842 000 USD de ganancias realizadas por inversiones relacionadas con ventas de vencimientos fijos, compensado parcialmente por 352 000 USD en pérdidas por deterioro relacionadas principalmente con nuestra exposición a inversiones en ciertos préstamos petrolíferos y de gas en el sector energético. Al 31 de marzo de 2016, la exposición total al petróleo y al gas en esta cartera de préstamos bancarios fue de siete préstamos con un valor contable de 15,8 millones de USD y un valor de mercado de 11,9 millones de USD.

Dividendos

La compañía también anunció que su Junta Directiva declaró un dividendo en efectivo de 0,20 USD por acción ordinaria el 3 de mayo de 2016. Este dividendo se pagará el jueves, 30 de junio de 2016 a todos los accionistas que se encuentren registrados al momento del cierre de la jornada del lunes 13 de junio de 2016.

Conferencia telefónica

James River Group Holdings llevará a cabo una conferencia telefónica para hablar sobre este comunicado de prensa mañana, 5 de mayo de 2016, a las 9.00 a. m., hora del este. Los inversionistas pueden participar en la conferencia llamando al (877) 930-8055; el número de identificación de la conferencia es el 79290889. O bien a través de internet en www.jrgh.net, haciendo clic en el enlace “Investor Relations” (Relaciones con los inversionistas). Ingrese al sitio web al menos 15 minutos antes del evento para inscribirse y descargar e instalar el software de audio necesario. La repetición estará disponible poco después de la finalización de la conferencia y hasta el momento de cierre de la jornada del 4 de junio de 2016 en el número de teléfono y en el sitio web antes mencionados.

Proyecciones

Este comunicado de prensa contiene proyecciones, según la definición del término establecida en la Ley de Reforma de Litigios sobre Valores Privados (Private Securities Litigation Reform Act) de 1995. En algunas ocasiones, estas proyecciones pueden identificarse por el uso de términos tales como “creer”, “esperar”, “buscar”, “poder”, “será”, “pretender”, “proyectar”, “planificar”, “estimar” u otras palabras similares. Las proyecciones implican riesgos e incertidumbres que podrían causar que los resultados reales difieran materialmente de los previstos en ellas. Si bien no es posible identificar todos los riesgos y factores, entre ellos se incluyen los siguientes: pérdidas que excedan las reservas, pérdida de empleados o de miembros de la gerencia claves, factores económicos adversos, disminución de nuestra capacidad financiera, pérdida de un grupo de corredores o agentes que representan una parte importante de nuestro negocio, pérdida de un cliente importante, pérdidas en nuestra cartera de inversiones, reglamentaciones gubernamentales o del mercado adicionales; fallas en cualquier limitación de pérdidas o el efecto de reclamos emergentes y problemas de cobertura sobre nuestro negocio; liquidaciones de pérdidas realizadas por compañías cedentes y operadoras de fronting; la imposición a la compañía o a sus subsidiarias no estadounidenses de impuestos estadounidenses y otros riesgos descritos en las presentaciones de la Compañía ante la Comisión de Bolsa y Valores (Securities and Exchange Commission, SEC). Estas proyecciones son válidas únicamente a la fecha de este comunicado y no asumimos ninguna obligación de actualizar o revisar la información de cualquiera de estas proyecciones para reflejar cambios en las suposiciones, eventos imprevistos o cualquier otra situación.

Índices que no se ajustan a los principios de contabilidad generalmente aceptados

Al presentar los resultados de James River Group Holding, la gerencia incluyó índices financieros que no se calculan de acuerdo con los estándares o las reglas comprendidos en los principios de contabilidad generalmente aceptados (Generally Accepted Accounting Principles, GAAP) en los Estados Unidos. Estos índices, que incluyen las ganancias de seguros, los ingresos operativos netos y el capital tangible, se denominan índices financieros no ajustados a los principios de contabilidad generalmente aceptados. Es posible que otras compañías definan o calculen estos índices de manera diferente. No debe considerarse que estos índices sustituyen aquellos establecidos de acuerdo con los GAAP. Al final de este comunicado se incluye la conciliación de estos índices con los índices GAAP más similares.

Acerca de James River Group Holdings, Ltd.

James River Group Holdings, Ltd. es un holding empresarial de seguros con sede en las Bermudas que posee y opera un grupo de compañías especializadas de seguros y reaseguros fundadas por miembros de nuestro equipo gerencial. La compañía opera en tres segmentos especializados de seguros y reaseguros de responsabilidad y patrimoniales: líneas de excesos y excedentes, seguros de productos especiales admitidos y reaseguros de responsabilidad. En cada uno de los segmentos, la compañía tiende a enfocarse en cuentas asociadas con pequeñas y medianas empresas. A.M. Best Company calificó con “A-” (excelente) y una “perspectiva positiva” a cada una de las subsidiarias de seguro reguladas de la compañía.

Visite el sitio web de James River Group Holdings, Ltd. en www.jrgh.net.

James River Group Holdings, Ltd. and Subsidiaries
Condensed Consolidated Balance Sheet Data
(Unaudited)
March 31,
2016
December 31,
2015
($ in thousands, except for share amounts)
ASSETS
Invested assets:
Fixed maturity securities, available-for-sale $ 927,698 $ 899,660
Fixed maturity securities, trading 5,057 5,046
Equity securities, available-for-sale 78,186 74,111
Bank loan participations, held-for-investment 185,818 191,700
Short-term investments 19,799 19,270
Other invested assets 54,038 54,504
Total investments 1,270,596 1,244,291
Cash and cash equivalents 92,125 106,406
Accrued investment income 8,447 8,068
Premiums receivable and agents’ balances 201,279 176,685
Reinsurance recoverable on unpaid losses 141,739 131,788
Reinsurance recoverable on paid losses 4,304 11,298
Deferred policy acquisition costs 55,143 60,754
Goodwill and intangible assets 221,210 221,359
Other assets 107,234 94,848
Total assets $ 2,102,077 $ 2,055,497
LIABILITIES AND SHAREHOLDERS’ EQUITY
Reserve for losses and loss adjustment expenses $ 814,327 $ 785,322
Unearned premiums 294,798 301,104
Senior debt 88,300 88,300
Junior subordinated debt 104,055 104,055
Accrued expenses 25,618 29,476
Other liabilities 69,409 66,202
Total liabilities 1,396,507 1,374,459
Total shareholders’ equity 705,570 681,038
Total liabilities and shareholders’ equity $ 2,102,077 $ 2,055,497
Tangible equity $ 484,360 $ 459,679
Tangible equity per common share outstanding $ 16.71 $ 15.88
Total shareholders’ equity per common share outstanding $ 24.34 $ 23.53
Common shares outstanding 28,993,859 28,941,547
Debt to total capitalization ratio 21.4 % 22.0 %
James River Group Holdings, Ltd. and Subsidiaries
Condensed Consolidated Income Statement Data
(Unaudited)
Three Months Ended
March 31,
2016 2015
($ in thousands, except for share data)
REVENUES
Gross written premiums $ 133,071 $ 131,258
Net written premiums $ 106,901 $ 108,659
Net earned premiums $ 117,130 $ 117,011
Net investment income 11,272 11,986
Net realized investment gains (losses) 547 (2,806 )
Other income 2,380 276
Total revenues 131,329 126,467
EXPENSES
Losses and loss adjustment expenses 73,506 74,484
Other operating expenses 41,179 39,797
Other expenses (12 ) 69
Interest expense 2,174 1,704
Amortization of intangible assets 149 149
Total expenses 116,996 116,203
Income before taxes 14,333 10,264
Income tax expense 1,496 887
NET INCOME $ 12,837 $ 9,377
NET OPERATING INCOME $ 12,838 $ 11,691
EARNINGS PER SHARE
Basic $ 0.44 $ 0.33
Diluted $ 0.43 $ 0.32
NET OPERATING INCOME PER SHARE
Basic $ 0.44 $ 0.41
Diluted $ 0.43 $ 0.40
Weighted-average common shares outstanding:
Basic 28,953,008 28,540,350
Diluted 29,742,252 29,098,309
Cash dividends declared per common share $ 0.20 $ 0.16
Ratios:
Loss ratio 62.8 % 63.7 %
Expense ratio 33.2 % 33.8 %
Combined ratio 95.9 % 97.5 %
Accident year loss ratio 66.7 % 65.8 %
James River Group Holdings, Ltd. and Subsidiaries
Segment Results
EXCESS AND SURPLUS LINES
Three Months Ended March 31,
2016 2015 % Change
($ in thousands)
Gross written premiums $ 82,108 $ 75,718 8.4 %
Net written premiums $ 71,535 $ 62,296 14.8 %
Net earned premiums $ 65,505 $ 59,400 10.3 %
Losses and loss adjustment expenses (40,663 ) (35,842 ) 13.5 %
Underwriting expenses (15,638 ) (16,115 ) (3.0 )%
Underwriting profit (a), (b) $ 9,204 $ 7,443 23.7 %
Ratios:
Loss ratio 62.1 % 60.3 % -
Expense ratio 23.9 % 27.1 % -
Combined ratio 85.9 % 87.5 % -
Accident year loss ratio 68.8 % 68.6 % -
(a) See “Reconciliation of Non-GAAP Measures.”
(b) Underwriting results include fee income of $2.3 million and $220,000 for the three months ended March 31, 2016 and 2015, respectively. These amounts are included in “Other income” in our Condensed Consolidated Income Statements.

SEGUROS DE PRODUCTOS ESPECIALES ADMITIDOS

Three Months Ended March 31,
2016 2015 % Change
($ in thousands)
Gross written premiums $ 28,687 $ 20,926 37.1 %
Net written premiums $ 13,046 $ 11,474 13.7 %
Net earned premiums $ 11,405 $ 9,555 19.4 %
Losses and loss adjustment expenses (6,600 ) (5,796 ) 13.9 %
Underwriting expenses (4,330 ) (3,914 ) 10.6 %
Underwriting profit (loss) (a), (b) $ 475 $ (155 ) -
Ratios:
Loss ratio 57.9 % 60.7 % -
Expense ratio 38.0 % 41.0 % -
Combined ratio 95.8 % 101.6 % -
Accident year loss ratio 60.6 % 60.7 % -
(a) See “Reconciliation of Non-GAAP Measures.”
(b) Underwriting results include fee income of $397,000 and $303,000 for the three months ended March 31, 2016 and 2015, respectively. These amounts are included in “Other operating expenses” in our Condensed Consolidated Income Statements.

REASEGUROS DE RESPONSABILIDAD

Three Months Ended March 31,
2016 2015 % Change
($ in thousands)
Gross written premiums $ 22,276 $ 34,614 (35.6 )%
Net written premiums $ 22,320 $ 34,889 (36.0 )%
Net earned premiums $ 40,220 $ 48,056 (16.3 )%
Losses and loss adjustment expenses (26,243 ) (32,846 ) (20.1 )%
Underwriting expenses (13,643 ) (15,169 ) (10.1 )%
Underwriting profit (a) $ 334 $ 41 714.6 %
Ratios:
Loss ratio 65.2 % 68.3 % -
Expense ratio 33.9 % 31.6 % -
Combined ratio 99.2 % 99.9 % -
Accident year loss ratio 65.2 % 63.2 % -
(a) See “Reconciliation of Non-GAAP Measures.”

CONCILIACIÓN DE LAS NORMAS NO AJUSTADAS A LOS PRINCIPIOS DE CONTABILIDAD GENERALMENTE ACEPTADOS

Ganancias de seguros (pérdidas)

El cuadro siguiente concilia las ganancias (pérdidas) de seguros por segmento operativo individual y de la compañía en su totalidad con los ingresos consolidados antes de impuestos. Creemos que estas normas son útiles para los inversores al evaluar el desempeño de la compañía y de sus segmentos operativos, porque nuestro objetivo es obtener ganancias de seguros en forma consistente. Evaluamos el desempeño de nuestros segmentos operativos y asignamos recursos, principalmente, en función de las ganancias (pérdidas) de seguros de los segmentos operativos. Las ganancias (pérdidas) de seguros no pueden compararse con los de otras compañías.

Three Months Ended
March 31,
2016 2015
(in thousands)
Underwriting profit (loss) of the operating segments:
Excess and Surplus Lines $ 9,204 $ 7,443
Specialty Admitted Insurance 475 (155 )
Casualty Reinsurance 334 41
Total underwriting profit of operating segments 10,013 7,329
Other operating expenses of the Corporate and Other segment (5,252 ) (4,379 )
Underwriting profit (a) 4,761 2,950
Net investment income 11,272 11,986
Net realized investment gains (losses) 547 (2,806 )
Other income and expenses 76 (13 )
Interest expense (2,174 ) (1,704 )
Amortization of intangible assets (149 ) (149 )
Consolidated income before taxes $ 14,333 $ 10,264
(a) Included in underwriting results for the three months ended March 31, 2016 and 2015 is fee income of $­2.7 million and $523,000, respectively.

Ingresos netos operativos

Definimos los ingresos netos operativos como ingresos netos, sin incluir las ganancias y pérdidas netas realizadas por inversiones, como también los gastos no operativos, incluidos aquellos relacionados con los costos de diligencia debida por varias actividades de fusión y adquisición, honorarios profesionales relacionados con la presentación de una declaración de registro por la venta de nuestros títulos y costos de indemnizaciones asociadas con el despido de empleados. Utilizamos los ingresos netos operativos como una medida de desempeño interno en la gestión de nuestras operaciones, porque creemos que le otorga a nuestra gerencia y a otros usuarios de nuestra información financiera un útil conocimiento de los resultados de nuestras operaciones y de nuestro desempeño de negocios subyacente. Los ingresos netos operativos no deben considerarse como un sustituto de los ingresos netos calculados según los principios de contabilidad generalmente aceptados y nuestra definición de ingresos netos operativos puede no ser similar a la de otras compañías

Nuestros ingresos antes de impuestos y nuestros ingresos netos durante los tres meses finalizados el 31 de marzo de 2016 y 2015, respectivamente, se concilian con nuestros ingresos netos operativos de la siguiente forma:

Three Months Ended
March 31,
2016 2015
Income
Before
Taxes
Net
Income
Income
Before
Taxes
Net
Income
(in thousands)
Income as reported $ 14,333 $ 12,837 $ 10,264 $ 9,377
Net realized investment (gains) losses (547 ) (307 ) 2,806 2,162
Other expenses (12 ) (8 ) 69 45
Interest expense on leased building the Company is deemed to own for accounting purposes 486 316 165 107
Net operating income $ 14,260 $ 12,838 $ 13,304 $ 11,691

Capital tangible

Definimos al capital tangible como la suma del capital contable menos la plusvalía mercantil y los activos intangibles (neto de amortización). Es posible que nuestra definición de capital tangible no sea comparable con la de otras compañías, y no debe considerarse como un sustituto del capital contable calculado de acuerdo con los principios de contabilidad generalmente aceptados. Utilizamos al capital tangible internamente para evaluar la fuerza de nuestro balance y para comparar rendimientos relativos a esta medida. El siguiente cuadro concilia el capital contable con el capital tangible al 31 de marzo de 2016 y al 31 de diciembre de 2015.

March 31, December 31,
2016 2015
(in thousands)
Shareholders’ equity $ 705,570 $ 681,038
Less: Goodwill and intangible assets 221,210 221,359
Tangible equity $ 484,360 $ 459,679

Para obtener más información:

Robert Myron
Presidente y director de Operaciones
1-441-278-4583
InvestorRelations@jrgh.net
Click Here for More Information »

James River Group Holdings Reports First Quarter 2016 Net Income and Net Operating Income of $12.8 Million or $0.43 Per Diluted Share

7.5% Growth in Net Operating Earnings Per Share Over the First Quarter of 2015 (34.4% Growth in Earnings Per Share)

8.4% Growth in E&S Segment and 37.1% Growth in Specialty Admitted Segment Gross Written Premiums Over the First Quarter of 2015

5.2% Increase in Tangible Equity Per Common Share During First Quarter of 2016

Declares $0.20 Per Share Quarterly Dividend

CaribPR Wire, PEMBROKE, Bermuda, May 04, 2016: James River Group Holdings, Ltd. (NASDAQ:JRVR) today announced its financial results for the quarter ended March 31, 2016.

Highlights for the quarter include:

  • Gross written premiums of $133.1 million, as follows:
Three Months Ended March 31,
(in thousands) 2016 2015 Change
Excess and Surplus Lines $ 82,108 $ 75,718 8.4 %
Specialty Admitted Insurance 28,687 20,926 37.1 %
Casualty Reinsurance 22,276 34,614 (35.6 )%
$ 133,071 $ 131,258 1.4 %
  • Fully diluted operating earnings per share of $0.43 compared to $0.40 in the first quarter of 2015;
  • Fully diluted earnings per share of $0.43 compared to $0.32 in the first quarter of 2015;
  • Net operating income of $12.8 million compared to $11.7 million in the first quarter of 2015;
  • Net income of $12.8 million compared to $9.4 million in the first quarter of 2015;
  • Net written premiums of $106.9 million, down 1.6% from first quarter of 2015;
  • A combined ratio of 95.9% compared to 97.5% in the first quarter of 2015;
  • A loss ratio of 62.8% compared to 63.7% in the first quarter of 2015;
  • A reduction in our expense ratio of 0.6 points from 33.8% in the first quarter of 2015 to 33.2%; and
  • A 5.2% increase in tangible equity per common share from $15.88 as of December 31, 2015 to $16.71 as of March 31, 2016.

J. Adam Abram, Chairman and Chief Executive Officer, said, “We are pleased to have a solid start to the year, and we remain on track to achieve our guidance of a 12.0% or better operating return on average tangible equity and a combined ratio of between 92% and 95% for 2016.  Our Excess and Surplus Lines segment, which is our largest and most profitable segment, continued to achieve growth in its premium and saw increases in exposure adjusted rates.  Additionally, our Specialty Admitted and Casualty Reinsurance segments had profitable underwriting results and lower combined ratios than a year ago.”

“Our tangible equity grew by 5.4% during the first quarter of 2016 from $459.7 million at December 31, 2015 to $484.4 million at March 31, 2016. This growth in tangible equity reflects $12.8 million of net income and a $15.6 million increase in other comprehensive income offset by the payment of $5.8 million of dividends.”

“The growth rate in our E&S Segment was 8.4% for the quarter. We bound more policies in the first quarter of 2016 than in the first quarter of the prior year, but with smaller average premiums per account.  Our strategy allowed us to increase rates by nine tenths of one percent for the quarter in this segment. We are very satisfied with that outcome.”

“We also found opportunities for profitable growth in our Specialty Admitted Segment, where our gross written premiums grew 37.1% for the quarter.  Our fee business in this segment continues to grow, and the expense ratio continues to decline as both earned premiums and fees increase.”

“Our Casualty Reinsurance Segment was affected by premium adjustments for prior year contracts. These adjustments reduced premiums by $10.0 million in the first quarter; while in the prior year, these adjustments increased premiums by $7.3 million.  For both periods, these adjustments had a negligible impact on our underwriting profits.”

“In keeping with our Board’s emphasis on capital management and efficiency, the Directors voted to declare a dividend of $0.20 per share to be paid on June 30, 2016.”

Results for the quarter ended March 31, 2016 include favorable reserve development on prior accident years of $4.7 million. In the prior year, this favorable reserve development was $2.5 million.  On an after-tax basis, favorable reserve development for the quarter is $4.2 million ($2.0 million in the prior year). The pre-tax development by segment was as follows:

Three Months Ended March 31,
2016 2015 Change
(in thousands)

Excess and Surplus Lines

$ 4,393 $ 4,936 $ (543 )
Specialty Admitted Insurance 311 7 304
Casualty Reinsurance (37 ) (2,454 ) 2,417
$ 4,667 $ 2,489 $ 2,178

Net investment income for the first quarter of 2016 was $11.3 million. This amount compares to $12.0 million for the same period in 2015. The primary cause for the decline in net investment income was a reduction in income from our investments in renewable energy from $2.5 million to $682,000 for the quarters ended March 31, 2015 and 2016, respectively. Absent this item, our net investment income increased by $1.1 million (11.1%) over the first quarter of the prior year to $10.6 million (from $9.5 million) principally due to a reallocation of over $140 million of our portfolio from short-term investments to longer duration fixed maturity securities from March 31, 2015 to March 31, 2016. This increase in net investment income was also due to a 3.4% increase in our average cash and invested assets in the first quarter of 2016 compared to the first quarter of 2015. Our annualized gross investment yield on average cash and invested assets for the quarter ended March 31, 2016 was 3.6%, and the average duration of our portfolio was 3.6 years.

During the first quarter of 2016, we also recognized $547,000 in net realized investment gains. These realized investment gains included $842,000 of realized investment gains related to sale of fixed maturities, partially offset by $352,000 in impairment losses primarily related to our investment exposure in certain oil and gas loans in the energy sector. At March 31, 2016 the total oil and gas exposure in this bank loan portfolio was in seven loans with a carrying value of $15.8 million and a market value of $11.9 million.

Dividend

The Company also announced that its Board of Directors declared a cash dividend of $0.20 per common share on May 3, 2016. This dividend is payable on Thursday, June 30, 2016 to all shareholders of record at the close of business on Monday, June 13, 2016.

Conference Call

James River Group Holdings will hold a conference call to discuss this press release tomorrow, May 5, 2016, at 9:00 a.m. Eastern time. Investors may access the conference call by dialing (877) 930-8055 Conference ID#:79290889 or via the internet by going to www.jrgh.net and clicking on the “Investor Relations” link. Please visit the website at least 15 minutes early to register, download and install any necessary audio software. A replay will be available shortly after the call and through the end of business on June 4, 2016 at the number and website referenced above.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, intend, project, plan, estimate or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.  Although it is not possible to identify all of these risks and factors, they include, among others, the following: losses exceeding reserves; loss of key members of our management or employees; adverse economic factors; a decline in our financial strength; loss of a group of brokers or agents that generate significant portions of our business; loss of a significant customer; losses in our investment portfolio; additional government or market regulation; failure of any loss limitation or the effect on our business of emerging claims and coverage issues; loss settlements made by ceding companies and fronting carriers; the Company or its non-United States based subsidiaries becoming subject to United States taxation and other risks described in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Non-GAAP Financial Measures

In presenting James River Group Holding’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). Such measures, including underwriting profit, net operating income and tangible equity are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. These measures should not be viewed as a substitute for those determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included at the end of this press release.

About James River Group Holdings, Ltd.

James River Group Holdings, Ltd. is a Bermuda-based insurance holding company which owns and operates a group of specialty insurance and reinsurance companies founded by members of our management team. The Company operates in three specialty property-casualty insurance and reinsurance segments: Excess and Surplus Lines, Specialty Admitted Insurance and Casualty Reinsurance. The Company tends to focus on accounts associated with small or medium-sized businesses in each of its segments. Each of the Company’s regulated insurance subsidiaries are rated “A-” (Excellent) with a “positive outlook” by A.M. Best Company.

Visit James River Group Holdings, Ltd. on the web at www.jrgh.net.

James River Group Holdings, Ltd. and Subsidiaries
Condensed Consolidated Balance Sheet Data
(Unaudited)
March 31,
2016
December 31,
2015
($ in thousands, except for share amounts)
ASSETS
Invested assets:
Fixed maturity securities, available-for-sale $ 927,698 $ 899,660
Fixed maturity securities, trading 5,057 5,046
Equity securities, available-for-sale 78,186 74,111
Bank loan participations, held-for-investment 185,818 191,700
Short-term investments 19,799 19,270
Other invested assets 54,038 54,504
Total investments 1,270,596 1,244,291
Cash and cash equivalents 92,125 106,406
Accrued investment income 8,447 8,068
Premiums receivable and agents’ balances 201,279 176,685
Reinsurance recoverable on unpaid losses 141,739 131,788
Reinsurance recoverable on paid losses 4,304 11,298
Deferred policy acquisition costs 55,143 60,754
Goodwill and intangible assets 221,210 221,359
Other assets 107,234 94,848
Total assets $ 2,102,077 $ 2,055,497
LIABILITIES AND SHAREHOLDERS’ EQUITY
Reserve for losses and loss adjustment expenses $ 814,327 $ 785,322
Unearned premiums 294,798 301,104
Senior debt 88,300 88,300
Junior subordinated debt 104,055 104,055
Accrued expenses 25,618 29,476
Other liabilities 69,409 66,202
Total liabilities 1,396,507 1,374,459
Total shareholders’ equity 705,570 681,038
Total liabilities and shareholders’ equity $ 2,102,077 $ 2,055,497
Tangible equity $ 484,360 $ 459,679
Tangible equity per common share outstanding $ 16.71 $ 15.88
Total shareholders’ equity per common share outstanding $ 24.34 $ 23.53
Common shares outstanding 28,993,859 28,941,547
Debt to total capitalization ratio 21.4 % 22.0 %
James River Group Holdings, Ltd. and Subsidiaries
Condensed Consolidated Income Statement Data
(Unaudited)
Three Months Ended
March 31,
2016 2015
($ in thousands, except for share data)
REVENUES
Gross written premiums $ 133,071 $ 131,258
Net written premiums $ 106,901 $ 108,659
Net earned premiums $ 117,130 $ 117,011
Net investment income 11,272 11,986
Net realized investment gains (losses) 547 (2,806 )
Other income 2,380 276
Total revenues 131,329 126,467
EXPENSES
Losses and loss adjustment expenses 73,506 74,484
Other operating expenses 41,179 39,797
Other expenses (12 ) 69
Interest expense 2,174 1,704
Amortization of intangible assets 149 149
Total expenses 116,996 116,203
Income before taxes 14,333 10,264
Income tax expense 1,496 887
NET INCOME $ 12,837 $ 9,377
NET OPERATING INCOME $ 12,838 $ 11,691
EARNINGS PER SHARE
Basic $ 0.44 $ 0.33
Diluted $ 0.43 $ 0.32
NET OPERATING INCOME PER SHARE
Basic $ 0.44 $ 0.41
Diluted $ 0.43 $ 0.40
Weighted-average common shares outstanding:
Basic 28,953,008 28,540,350
Diluted 29,742,252 29,098,309
Cash dividends declared per common share $ 0.20 $ 0.16
Ratios:
Loss ratio 62.8 % 63.7 %
Expense ratio 33.2 % 33.8 %
Combined ratio 95.9 % 97.5 %
Accident year loss ratio 66.7 % 65.8 %

James River Group Holdings, Ltd. and Subsidiaries
Segment Results
EXCESS AND SURPLUS LINES
Three Months Ended March 31,
2016 2015 % Change
($ in thousands)
Gross written premiums $ 82,108 $ 75,718 8.4 %
Net written premiums $ 71,535 $ 62,296 14.8 %
Net earned premiums $ 65,505 $ 59,400 10.3 %
Losses and loss adjustment expenses (40,663 ) (35,842 ) 13.5 %
Underwriting expenses (15,638 ) (16,115 ) (3.0 )%
Underwriting profit (a), (b) $ 9,204 $ 7,443 23.7 %
Ratios:
Loss ratio 62.1 % 60.3 % -
Expense ratio 23.9 % 27.1 % -
Combined ratio 85.9 % 87.5 % -
Accident year loss ratio 68.8 % 68.6 % -
(a) See “Reconciliation of Non-GAAP Measures.”
(b) Underwriting results include fee income of $2.3 million and $220,000 for the three months ended March 31, 2016 and 2015, respectively. These amounts are included in “Other income” in our Condensed Consolidated Income Statements.

SPECIALTY ADMITTED INSURANCE

Three Months Ended March 31,
2016 2015 % Change
($ in thousands)
Gross written premiums $ 28,687 $ 20,926 37.1 %
Net written premiums $ 13,046 $ 11,474 13.7 %
Net earned premiums $ 11,405 $ 9,555 19.4 %
Losses and loss adjustment expenses (6,600 ) (5,796 ) 13.9 %
Underwriting expenses (4,330 ) (3,914 ) 10.6 %
Underwriting profit (loss) (a), (b) $ 475 $ (155 ) -
Ratios:
Loss ratio 57.9 % 60.7 % -
Expense ratio 38.0 % 41.0 % -
Combined ratio 95.8 % 101.6 % -
Accident year loss ratio 60.6 % 60.7 % -
(a) See “Reconciliation of Non-GAAP Measures.”
(b) Underwriting results include fee income of $397,000 and $303,000 for the three months ended March 31, 2016 and 2015, respectively. These amounts are included in “Other operating expenses” in our Condensed Consolidated Income Statements.

CASUALTY REINSURANCE

Three Months Ended March 31,
2016 2015 % Change
($ in thousands)
Gross written premiums $ 22,276 $ 34,614 (35.6 )%
Net written premiums $ 22,320 $ 34,889 (36.0 )%
Net earned premiums $ 40,220 $ 48,056 (16.3 )%
Losses and loss adjustment expenses (26,243 ) (32,846 ) (20.1 )%
Underwriting expenses (13,643 ) (15,169 ) (10.1 )%
Underwriting profit (a) $ 334 $ 41 714.6 %
Ratios:
Loss ratio 65.2 % 68.3 % -
Expense ratio 33.9 % 31.6 % -
Combined ratio 99.2 % 99.9 % -
Accident year loss ratio 65.2 % 63.2 % -
(a) See “Reconciliation of Non-GAAP Measures.”

RECONCILIATION OF NON-GAAP MEASURES

Underwriting Profit (Loss)

The following table reconciles the underwriting profit (loss) by individual operating segment and of the whole Company to consolidated income before taxes. We believe that these measures are useful to investors in evaluating the performance of our Company and its operating segments because our objective is to consistently earn underwriting profits.  We evaluate the performance of our operating segments and allocate resources based primarily on underwriting profit (loss) of operating segments.  Our definition of underwriting profit (loss) of operating segments and underwriting profit (loss) may not be comparable to that of other companies.

Three Months Ended
March 31,
2016 2015
(in thousands)
Underwriting profit (loss) of the operating segments:
Excess and Surplus Lines $ 9,204 $ 7,443
Specialty Admitted Insurance 475 (155 )
Casualty Reinsurance 334 41
Total underwriting profit of operating segments 10,013 7,329
Other operating expenses of the Corporate and Other segment (5,252 ) (4,379 )
Underwriting profit (a) 4,761 2,950
Net investment income 11,272 11,986
Net realized investment gains (losses) 547 (2,806 )
Other income and expenses 76 (13 )
Interest expense (2,174 ) (1,704 )
Amortization of intangible assets (149 ) (149 )
Consolidated income before taxes $ 14,333 $ 10,264
(a) Included in underwriting results for the three months ended March 31, 2016 and 2015 is fee income of $­2.7 million and $523,000, respectively.

Net Operating Income

We define net operating income as net income excluding net realized investment gains and losses, as well as non-operating expenses including those that relate to due diligence costs for various merger and acquisition activities, professional fees related to the filing of a registration statement for the sale of our securities, and severance costs associated with terminated employees. We use net operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance.  Net operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and our definition of net operating income may not be comparable to that of other companies.

Our income before taxes and net income for the three months ended March 31, 2016 and 2015, respectively, reconciles to our net operating income as follows:

Three Months Ended
March 31,
2016 2015
Income
Before
Taxes
Net
Income
Income
Before
Taxes
Net
Income
(in thousands)
Income as reported $ 14,333 $ 12,837 $ 10,264 $ 9,377
Net realized investment (gains) losses (547 ) (307 ) 2,806 2,162
Other expenses (12 ) (8 ) 69 45
Interest expense on leased building the Company is deemed to own for accounting purposes 486 316 165 107
Net operating income $ 14,260 $ 12,838 $ 13,304 $ 11,691

Tangible Equity

We define tangible equity as the sum of shareholders’ equity less goodwill and intangible assets (net of amortization).  Our definition of tangible equity may not be comparable to that of other companies, and it should not be viewed as a substitute for shareholders’ equity calculated in accordance with GAAP.  We use tangible equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure.  The following table reconciles shareholders’ equity to tangible equity for both March 31, 2016 and December 31, 2015.

March 31, December 31,
2016 2015
(in thousands)
Shareholders’ equity $ 705,570 $ 681,038
Less: Goodwill and intangible assets 221,210 221,359
Tangible equity $ 484,360 $ 459,679

For more information contact:

Robert Myron
President and Chief Operating Officer
1-441-278-4583
InvestorRelations@jrgh.net

Click Here for More Information »

James River Group Holdings, Ltd. (NASDAQ: “JRVR”) anuncia las fechas de la conferencia telefónica en la que dará a conocer las ganancias del primer trimestre de 2016

CaribPR Wire, PEMBROKE, Bermudas, April 18, 2016: James River Group Holdings, Ltd. (NASDAQ: JRVR) anunció hoy que publicará las ganancias del trimestre que finalizó el 31 de marzo de 2016 luego del cierre del mercado el miércoles, 4 de mayo de 2016. El jueves, 5 de mayo de 2016, a partir de las 9.00 a. m. (hora de verano del este), la compañía ofrecerá un conferencia telefónica para analizar los resultados con analistas e inversionistas.

Los inversionistas pueden participar en la conferencia llamando al (877) 930-8055; el número de identificación de la conferencia es el 79290889. O bien, a través de Internet en www.jrgh.net haciendo clic en el enlace “Investor Relations” (Relaciones con los inversionistas). Ingrese al sitio web al menos 15 minutos antes del evento para inscribirse y descargar e instalar el software de audio necesario. La repetición de la conferencia estará disponible en el número de teléfono y en el sitio web antes mencionados hasta el cierre de la jornada el 4 de junio de 2016.

Acerca de James River Group Holdings, Ltd.

James River Group Holdings, Ltd. es un holding empresarial de seguros con sede en las Bermudas que posee y opera un grupo de compañías especializadas de seguros y reaseguros fundadas por miembros de nuestro equipo gerencial. La compañía opera en tres segmentos especializados de seguros y reaseguros de responsabilidad y patrimoniales: líneas de excesos y excedentes, seguros de productos especiales admitidos y reaseguros de responsabilidad. En cada uno de los segmentos, la compañía tiende a enfocarse en cuentas asociadas con pequeñas y medianas empresas. A.M. Best Company calificó con “A-” (excelente) y una “perspectiva positiva” a cada una de las subsidiarias de seguro reguladas de la compañía.

Visite el sitio web de James River Group Holdings, Ltd. en www.jrgh.net.

Para obtener más información:
Robert Myron
Presidente y director de Operaciones
441-278-4583
Click Here for More Information »

James River Group Holdings, Ltd. (NASDAQ: “JRVR”) Announces Dates for Its 2016 First Quarter Earnings Release and Conference Call

CaribPR Wire, PEMBROKE, Bermuda, April 12, 2016:  James River Group Holdings, Ltd. (NASDAQ:JRVR) announced today it will release its earnings for the quarter – ended March 31, 2016 after the market closes on Wednesday, May 4, 2016. The Company will also host a conference call to discuss its results with analysts and investors on Thursday, May 5, 2016 beginning at 9:00am (Eastern Daylight Time).

Investors may access the conference call by dialing (877) 930-8055, conference ID#79290889, or via the internet by going to www.jrgh.net and clicking on the “Investor Relations” link. Please visit the website at least 15 minutes early to register, download and install any necessary audio software. A replay of the call will be available at both the number above and the website until the close of business on June 4, 2016.

About James River Group Holdings, Ltd.

James River Group Holdings, Ltd. is a Bermuda-based insurance holding company which owns and operates a group of specialty insurance and reinsurance companies founded by members of our management team. The Company operates in three specialty property-casualty insurance and reinsurance segments: Excess and Surplus Lines, Specialty Admitted Insurance and Casualty Reinsurance. The Company tends to focus on accounts associated with small or medium-sized businesses in each of its segments. Each of the Company’s regulated insurance subsidiaries are rated “A-” (Excellent) with a “positive outlook” by A.M. Best Company.

Visit James River Group Holdings, Ltd. on the web at www.jrgh.net

For more information contact:
Robert Myron
President and Chief Operating Officer
441-278-4583
InvestorRelations@jrgh.net
Click Here for More Information »

James River Group Holdings informa los resultados del cuarto trimestre

Informa ingresos netos trimestrales de 12,7 millones de USD, o 0,43 USD por acción diluida, e ingresos netos operativos de 17,9 millones de USD o 0,60 USD por acción diluida

Ingresos netos operativos de 2015 de 61,1 millones de USD o 2,08 USD por acción diluida

Informa un índice combinado de 94,0 % y 13,0 % de rendimiento operativo sobre el capital tangible para el 2015

Declara dividendos de 0,20 USD por acción (un aumento del 25 % con respecto al primer trimestre del 2015)

CaribPR Wire, PEMBROKE, Bermudas, Feb. 19, 2016: James River Group Holdings, Ltd. (NASDAQ:JRVR) anunció hoy los resultados financieros del cuarto trimestre y del año finalizado al 31 de diciembre de 2015.

J. Adam Abram, director ejecutivo y presidente ejecutivo de James River Group Holdings, Ltd comentó: “Obtuvimos un 13 % de rendimiento operativo sobre el capital tangible promedio en 2015, suscribimos a un índice combinado del 94 % y comenzamos el 2016 con un sólido balance. En el centro de nuestra propuesta de valor, se encuentran estos logros: brindar altos rendimientos adaptados al riesgo sobre el capital tangible mediante la ganancia de seguros, al tiempo que se protege nuestro balance. Estamos complacidos con nuestro desempeño durante nuestro primer año como compañía pública y comenzamos el 2016 con confianza”.

El Sr. Abram continuó: “Otros puntos destacados del año incluyen un índice de crecimiento anual del 10,3 % en primas brutas emitidas, y el pago de 47,8 millones de USD en dividendos (89,3 % del ingreso neto) a nuestros accionistas. Comenzamos el 2016 con una sólida posición en materia de reservas, cuya evidencia está en el hecho de que el sesenta y ocho por ciento de nuestras reservas netas son por pérdidas incurridas, pero no informadas. Hemos tenido un desarrollo favorable de las reservas durante catorce trimestres consecutivos, y creemos que hemos continuado nuestra trayectoria de realizar estimaciones cuidadosas sobre pérdidas futuras”.

“Felicito a mis colegas que han trabajado arduamente y ejercieron un buen criterio profesional para brindar estos resultados”, afirmó el Sr. Abram.

“Nuestro crecimiento en la línea superior, que excedió nuestras expectativas en los primeros tres trimestres del año, continuó durante el cuarto trimestre, pero a un ritmo más lento. Observamos una suba en la competencia para nuestros negocios de excesos y excedentes (Excess and Surplus, E&S) durante los últimos dos meses del trimestre, en particular, para las pólizas más grandes y, para mantener la coherencia con nuestro énfasis en la ganancia de seguro, elegimos nuestras oportunidades con cuidado. El índice de crecimiento en nuestro segmento de E&S se redujo a 4,5 % para el trimestre. Ejecutamos más pólizas en el cuarto trimestre del 2015 que en el cuarto trimestre del año anterior, pero con menores primas promedio por cuenta. Nuestra estrategia nos permitió mantener las tasas dentro de las ocho décimas del uno por ciento (0,8 %) para el año en este segmento. Estamos muy satisfechos con ese resultado”.

“También tuvimos oportunidades de crecimiento rentable en nuestro segmento de seguros de productos especiales admitidos, donde las primas brutas emitidas anuales aumentaron más de un 50 % en el año y en el trimestre. Nuestro negocio de los cargos en este segmento sigue creciendo, y el índice de gastos sigue disminuyendo a medida que aumentan tanto las primas percibidas como los cargos”.

“Nuestro segmento Reaseguros de responsabilidad tuvo un mal resultado en el cuarto trimestre. El índice combinado del segmento fue de 108,5 % para el trimestre y de 101,4 % para el año. A la luz del entorno altamente competitivo para el reaseguro, redujimos la contratación de reaseguro en el 2015 y prevemos que será una parte más pequeña de nuestra prima total en el 2016”.

“La Compañía está bien posicionada. Para el 2016, prevemos registrar un índice combinado de entre el 92 % y el 95 % y obtener un rendimiento operativo sobre el capital tangible promedio del 12 % o más”, concluyó el Sr. Abram.

Los factores significativos adicionales al evaluar resultados para el cuarto trimestre de 2015 incluyen los siguientes:

  • Las ganancias operativas por acción diluida son de 0,60 USD en comparación con los 0,65 USD por acción del año anterior.
  • Los ingresos netos operativos fueron de 17,9 millones de USD en el cuarto trimestre del 2015 en comparación con los 18,8 millones de USD del año anterior.
  • En el trimestre actual, el desarrollo favorable de las reservas antes de impuestos fue de 1,7 millones de USD (que representan 0,03 USD por acción) en comparación con el desarrollo favorable antes de impuestos de 8,3 millones de USD (que representan 0,25 USD por acción) del año anterior.
  • Nuestros segmentos comerciales continúan respondiendo de manera hábil a las condiciones de mercado:
    • Nuestro segmento de E&S altamente rentable registró un crecimiento en las primas brutas emitidas del 4,5 %, de 70,2 millones de USD en el cuarto trimestre del 2014 a 73,3 millones de USD.
    • Nuestro segmento de seguros de productos especiales admitidos aumentó las primas brutas emitidas en un 54,3 %, de 18,9 millones de USD en 2014 a 29,2 millones de USD, lo que ayudó a reducir el índice de gastos del segmento a un 33,5 % a partir de un 39,4 % en el cuarto trimestre de 2014.
    • La prima bruta emitida de nuestro segmento de reaseguro de responsabilidad disminuyó de 14,1 millones de USD en el cuarto trimestre de 2014, a 6,1 millones de USD en 2015.
  • Nuestro índice combinado para el trimestre fue del 92,3 % en comparación con el 90,1 % del año anterior.
  • Los ingresos netos por inversiones para el trimestre fueron de 10,3 millones de USD en comparación con los 9,8 millones de USD para el mismo período en 2014.

Entre los factores significativos adicionales al evaluar el año finalizado el 31 de diciembre de 2015 se incluyen los siguientes:

  • Las ganancias operativas por acción diluida subieron un 2,5 % a 2,08 USD por acción en comparación con los 2,03 USD por acción del año anterior.
  • Ingresos operativos netos de 61,1 millones de USD en 2015 en comparación con los 58,4 millones de USD del año anterior.
  • Para 2015, tuvimos un desarrollo favorable de reservas de 16,3 millones de USD (que representan 0,45 USD por acción), en comparación con 27,4 millones de USD en 2014 (que representan 0,83 USD por acción).
  • Tuvimos un aumento de las primas brutas emitidas de 10,3 %, de 518,8 millones de USD en 2014 a 572,2 millones de USD:
    • Las primas brutas de emisión del segmento de líneas de excesos y excedentes crecieron un 22,2 % hasta alcanzar 308,7 millones de USD, lo cual disminuyó el índice de gastos del segmento en 1,0 punto.
    • Las primas brutas de emisión del segmento de seguros de productos especiales admitidos crecieron en un 53,2 % hasta alcanzar 91,0 millones de USD, lo cual disminuyó el índice de gastos del segmento en 9,8 puntos porcentuales. Esto se compensó con lo siguiente:
    • Una disminución de nuestro segmento de reaseguro de responsabilidad de 16,5 %, de 206,7 millones de USD en 2014 a 172,5 millones de USD.

Capital tangible

El capital tangible (que refleja el pago de 33,9 millones de USD en dividendos a nuestros accionistas en el cuatro trimestre) disminuyó un 5,4 %, de 485,9 millones de USD el 30 de septiembre de 2015 a 459,7 millones de USD el 31 de diciembre de 2015. Sin estos dividendos, nuestro capital tangible aumentó un 1,6 % en el trimestre. Este cambio se debió principalmente a nuestro ingreso neto de 12,7 millones de USD compensado por una disminución de 5,7 millones de USD (después de impuestos) en otros ingresos globales acumulados, a 3,2 millones de USD el 31 de diciembre de 2015. La disminución de los otros ingresos globales acumulados se debió a una disminución en ganancias no realizadas en nuestra cartera de inversión, cuya causa principal fue el aumento de las tasas de interés del mercado durante el trimestre. El capital tangible por acción ordinaria en circulación al 31 de diciembre de 2015 fue de 15,88 USD.

Para el 2015, nuestro capital tangible (que refleja 47,8 millones de USD en dividendos para nuestros accionistas) disminuyó un 1,3 %, de 466 millones de USD al 31 de diciembre de 2014 a 459,7 millones de USD al 31 de diciembre de 2015. Sin estos dividendos, nuestro capital tangible aumentó un 8,9 % durante el año. Este cambio se debió principalmente a nuestro ingreso neto de 53,5 millones de USD compensado por una disminución de 15,2 millones de USD en otros ingresos globales acumulados, a 3,2 millones de USD al 31 de diciembre de 2015. Esta disminución en los otros ingresos globales acumulados se debió principalmente al aumento en las tasas de interés del mercado durante el año, que afectó el valor de mercado de algunas de nuestras inversiones.

Ganancias

Las ganancias operativas netas por acción diluida del cuarto trimestre de 2015 fueron de 0,60 USD por acción, sin incluir 0,18 USD por acción (5,2 millones de USD) de costos compuestos por 2,1 millones de USD de pérdidas realizadas netas sobre nuestra cartera de inversión, 2,5 millones de USD de retenciones pagadas en relación con capital devuelto para financiar nuestro dividendo especial en diciembre, y 546 000 USD de otros gastos no operativos. Las ganancias operativas netas por acción diluida fueron de 0,65 USD en el cuarto trimestre de 2014. Durante todo el 2015, las ganancias operativas netas por acción diluida para 2015 fueron de 2,08 USD por acción, sin incluir 0,26 USD por acción de costos relacionados con pérdidas realizadas netas, la retención antes mencionada y otros gastos no operativos. Este monto se compara con 2,03 USD para el mismo período en 2014, sin incluir 0,48 USD de gastos no operativos principalmente relacionados con el aumento de los gastos de compensación basados en acciones y otros costos asociados con la oferta pública en diciembre último.

Las ganancias por acción totalmente diluidas en el cuarto trimestre de 2015 fueron de 0,43 USD, que difiere del monto del cuarto trimestre de 2014 de 0,31 USD, principalmente por la inclusión del aumento de gastos de compensación basados en acciones y otros costos asociados con la oferta pública de diciembre último. Durante todo 2015, las ganancias por acción totalmente diluidas fueron de 1,82 USD por acción. Este monto se compara con 1,55 USD para todo el 2014.

Rendimiento sobre el capital tangible

Con el uso de una metodología promedio de cinco trimestres para determinar el capital contable promedio, nuestro rendimiento operativo sobre nuestro capital contable tangible fue del 13,0 % para 2015, en comparación con el 12,2 % para 2014.

Resultados de seguros

El índice combinado para el cuarto trimestre de 2015 fue de 92,3 % (compuesto de un índice de pérdida de 60,5 % y un índice de gastos de 31,8 %). Se compara con un índice combinado de 90,1 % (compuesto de un índice de pérdidas de 59,4 % y un índice de gastos de 30,7 %) en el año anterior. Durante todo el 2015, el índice combinado para la Compañía fue de 94,0 % (compuesto de un índice de pérdida de 60,5 % y un índice de gastos de 33,5 %). Se compara con un índice combinado del año anterior de 93,3 % (compuesto de un índice de pérdidas de 59,9 % y un índice de gastos de 33,4 %).

Los resultados del trimestre que finalizó el 31 de diciembre de 2015 incluyen un desarrollo favorable de las reservas de 1,7 millones de USD respecto de los años de siniestros anteriores. Esto representó 1,5 puntos de nuestro índice de pérdidas y nuestro índice combinado, respectivamente, que puede compararse con un desarrollo favorable de las reservas de 8,3 millones de USD del cuarto trimestre del año anterior, que representó 7,5 puntos de nuestro índice de pérdidas y nuestro índice combinado, respectivamente. El desarrollo favorable de las reservas para el trimestre es de 849 000 USD después de impuestos (7,1 millones de USD el año anterior). Durante todo el 2015, el desarrollo favorable de las reservas respecto de los años de siniestros anteriores fue de 16,3 millones de USD (o 13,3 millones de USD después de impuestos), lo que representó 3,5 puntos de nuestro índice de pérdidas y del índice combinado, respectivamente. En el 2014, el desarrollo favorable de las reservas fue de 27,4 millones de USD (o 23,9 millones de USD después de impuestos), lo que representó 6,9 puntos de nuestro índice de pérdidas y del índice combinado, respectivamente.

El ligero aumento en el índice de gastos globales durante el cuarto trimestre en comparación con el índice durante el mismo período del año anterior (31,8 % en 2015 frente a 30,7 % en 2014) se debió, principalmente, al aumento de los costos de ser una compañía pública, compensados por un aumento del 4,8 % de nuestras primas percibidas, de 110,2 millones de USD en 2014 a 115,4 millones de USD en el 2015. Para el año finalizado al 31 de diciembre de 2015, nuestro índice de gastos globales aumentó de 33,4 % en 2014 a un 33,5 % como consecuencia del aumento de costos de ser una compañía pública, compensado por el aumento del 16,4 % en las primas percibidas, de 396,2 millones de USD en 2014 a 461,2 millones de USD en el 2015.

El índice combinado del segmento de líneas de excesos y excedentes, compuesto de un índice de pérdidas de 47,5 %, y un índice de gastos de 24,9 %, fue de 72,4 % durante el cuarto trimestre de 2015. El año anterior, el índice combinado de este segmento fue de 77,1 % durante el cuarto trimestre, compuesto por un índice de pérdidas de 53,6 % y un índice de gastos de 23,5 %. En cuanto a los porcentajes anuales, el índice combinado del segmento de líneas de excesos y excedentes fue de 80,2 %, compuesto por un índice de pérdidas de 54,5 % y un índice de gastos de 25,8 %. El año anterior, el índice combinado de este segmento durante el año fue de 82,1 %, compuesto por un índice de pérdidas de 55,2 % y un índice de gastos de 26,8 %. Durante el cuarto trimestre, registramos un desarrollo favorable de las reservas de 7,0 millones de USD antes de impuestos, que representó 11,1 puntos de nuestro índice de pérdidas y nuestro índice combinado, respectivamente. Durante el mismo período de 2014, registramos un desarrollo favorable de las reservas de 9,0 millones de USD antes de impuestos, que representó 15,7 puntos de nuestro índice de pérdidas y nuestro índice combinado, respectivamente. Durante todo el 2015, el desarrollo favorable de las reservas respecto de los años de siniestros anteriores en este segmento fue de 25,4 millones de USD, lo que representó 10,6 puntos de nuestro índice de pérdida y del índice combinado, respectivamente. Durante el 2014, este desarrollo favorable de las reservas fue de 27,3 millones de USD, que representó 13,9 puntos de nuestro índice de pérdidas y del índice combinado, respectivamente.

El índice combinado del segmento de seguros de productos especiales admitidos, compuesto de un índice de pérdidas de 61,6 % y un índice de gastos de 33,5 %, fue de 95,2 % durante el cuarto trimestre de 2015. El año anterior, el índice combinado de este segmento fue de 90,5 %, compuesto de un índice de pérdidas de 51,1 % y un índice de gastos de 39,4 %. Durante todo el 2015, el índice combinado del segmento de seguros de productos especiales admitidos, compuesto de un índice de pérdidas de 60,7 % y un índice de gastos de 36,7 %, fue de 97,5 %. El año anterior, el índice combinado de este segmento fue de 99,9 %, compuesto de un índice de pérdidas de 53,4 % y un índice de gastos de 46,5 %. Durante el cuarto trimestre del 2015, registramos un desarrollo favorable de las reservas de 1,4 millones de USD antes de impuestos, lo que representó 11,6 puntos de nuestro índice de pérdidas y nuestro índice combinado, respectivamente. Durante el mismo período de 2014, registramos un desarrollo favorable de las reservas de 2,6 millones de USD antes de impuestos, lo que representó 27,1 puntos de nuestro índice de pérdidas y nuestro índice combinado, respectivamente. Durante todo el 2015, el desarrollo favorable de las reservas respecto de los años de siniestros anteriores en este segmento fue de 3,5 millones de USD, lo que representó 8,4 puntos de nuestro índice de pérdida y del índice combinado, respectivamente. Durante el 2014, este segmento tuvo un desarrollo favorable de las reservas de 5,9 millones de USD, lo que representó 20,6 puntos de nuestro índice de pérdidas y del índice combinado, respectivamente. En el 2015, el índice menor de gastos para el cuarto trimestre y el año completo (de 33,5 % y 36,7 % respectivamente) se debió a los efectos del exitoso crecimiento de los programas y las transacciones “fronting”, evidenciado por el crecimiento general de las primas percibidas en este segmento.

El índice combinado del segmento de reaseguro de responsabilidad fue de 108,5 % para el cuarto trimestre de 2015, compuesto de un índice de pérdidas de 80,3 % y un índice de gastos de 28,2 %. En el año anterior, el índice combinado de este segmento fue de 99,4 %, compuesto por un índice de pérdida de 69,0 % y un índice de gastos de 30,4 %. La disminución del índice de gastos durante el cuarto trimestre de 2015 fue el resultado de la disminución en las comisiones a tarifas variables que se pagaron en relación con el desarrollo desfavorable de las reservas mencionado anteriormente. Durante todo el 2015, el índice combinado del segmento de reaseguros de responsabilidad, compuesto por un índice de pérdidas de 68,6 % y un índice de gastos de 32,8 %, fue de 101,4 %. El año anterior, el índice combinado de este segmento fue de 99,6 %, compuesto de un índice de pérdidas de 66,3 % y un índice de gastos de 33,3 %. Durante el cuarto trimestre, registramos un desarrollo desfavorable de las reservas de 6,6 millones de USD, lo que representó (16,2) puntos del índice de pérdidas y del índice combinado, respectivamente. El año anterior, registramos un desarrollo desfavorable de las reservas de 3,3 millones de USD, que representó (7,7) puntos del índice de pérdidas y del índice combinado, respectivamente. El aumento de las pérdidas durante el trimestre fue el resultado del desarrollo desfavorable en los años anteriores para tres reasegurados, principalmente en los años de siniestros comprendidos entre 2011 y 2013. Durante todo el 2015, el desarrollo desfavorable de las reservas respecto de los años de siniestros anteriores en este segmento fue de 12,6 millones de USD, lo que representó (7,1) puntos de nuestro índice de pérdida y del índice combinado, respectivamente. Durante el 2014, este desarrollo desfavorable de las reservas fue de 5,7 millones de USD, lo que representó (3,3) puntos de nuestro índice de pérdidas y del índice combinado, respectivamente. La disminución de la prima bruta emitida en este segmento para el cuarto trimestre y para el 2015 completo se debe, principalmente, a la gestión de las decisiones de seguros de este segmento de no renovar ni reducir el tamaño de otros contratos a renovar debido al precio actualmente disponible en el mercado.

Inversiones

Los ingresos netos por inversiones durante el cuarto trimestre de 2015 fueron de 10,3 millones de USD, que se comparan con los 9,8 millones de USD durante el mismo período en 2014. En cuanto al año completo, los ingresos netos por inversiones durante el 2015 fueron de 44,8 millones de USD, que se comparan con los 43 millones para el mismo período en 2014. El aumento de los ingresos netos por inversiones para el trimestre pudo atribuirse, principalmente, a un aumento en nuestro saldo en efectivo y activos invertidos, que creció de 1302,1 millones de USD al 30 de septiembre de 2014, a 1378,9 millones de USD al 30 de septiembre de 2015, como también un aumento en la duración de nuestra cartera. El aumento anual de los ingresos netos por inversiones también pudo atribuirse al aumento en nuestro saldo en efectivo y activos invertidos que aumentaron un 3,1 %, de 1310,6 millones de USD el 31 de diciembre de 2014 a 1350,7 millones el 31 de diciembre de 2015. Asimismo, los ingresos netos por inversión se vieron afectados por nuestro flujo de caja operativo positivo y el mencionado aumento de la duración, parcialmente compensado por los dividendos de 70 millones de USD que pagamos a fines de 2014, y los 47,8 millones de USD en dividendos que pagamos durante el 2015, los cuales redujeron nuestros activos invertibles. Además, en todo el año, nuestra inversión en ciertas asociaciones relacionadas con energía renovable aportó 3,9 millones de USD y 5,2 millones de USD para los años finalizados el 31 de diciembre de 2015 y 2014, respectivamente, a nuestro ingreso neto por inversiones (y una pérdida de 19 000 USD y un ingreso de 497 000 USD para los trimestres finalizados el 31 de diciembre de 2015 y 2014, respectivamente). Nuestro rendimiento bruto anualizado de inversiones sobre los valores de vencimiento fijo promedio para los períodos de tres meses y un año que finalizaron el 31 de diciembre de 2015 fue de 3,4 %.

Durante el cuarto trimestre, registramos pérdidas realizadas netas por un total de 2,1 millones de USD antes de impuestos. Durante todo el 2015, registramos pérdidas realizadas netas por un total de 4,5 millones de USD antes de impuestos. Incluido en el monto para el cuarto trimestre del 2015, hubo un monto de 3,9 millones de USD por deterioros que sufrimos en relación con exposiciones a petróleo y gas en nuestra cartera de préstamos bancarios. Al 31 de diciembre de 2015, la exposición total al petróleo y al gas en esta cartera de préstamos bancarios fue de ocho préstamos con valor contable de 15,8 millones de USD y un valor de mercado de 11,7 millones de USD.

Dividendos

La compañía anunció que su Junta Directiva declaró un dividendo en efectivo de 0,20 USD por acción ordinaria el martes 16 de febrero de 2016. Este dividendo se pagará el lunes 28 de marzo de 2016 a todos los accionistas que se encuentren registrados el lunes, 14 de marzo de 2016.

Orientación

La Compañía anunció una orientación para 2016 de un rendimiento operativo sobre el capital tangible promedio del 12,0 % o más, y un índice combinado de entre 92 % y 95 % para todo el año.

Conferencia telefónica

James River Group Holdings llevará a cabo una conferencia telefónica para hablar sobre este comunicado de prensa mañana, 18 de febrero de 2016, a las 9.00 a. m., hora del este. Los inversionistas pueden participar en la conferencia llamando al (877) 930-8055; el número de identificación de la conferencia es el 12632972. O bien a través de Internet en www.jrgh.net, haciendo clic en el enlace “Investor Relations” (Relaciones con los inversionistas). Ingrese al sitio web al menos 15 minutos antes del evento para inscribirse, y descargar e instalar el software de audio necesario. La repetición estará disponible poco después de la finalización de la conferencia y hasta el momento de cierre de la jornada, el 19 de marzo de 2016, en el número de teléfono y en el sitio web antes mencionados.

Proyecciones

Este comunicado de prensa contiene proyecciones, según la definición del término establecida en la Ley de Reforma de Litigios sobre Valores Privados (Private Securities Litigation Reform Act) de 1995. En algunas ocasiones, estas proyecciones pueden identificarse por el uso de términos tales como “creer”, “esperar”, “buscar”, “poder”, “será”, “pretender”, “proyectar”, “anticipar” “planificar”, “estimar” u otras palabras similares. Las proyecciones implican riesgos e incertidumbres que podrían causar que los resultados reales difieran materialmente de los previstos en ellas. Si bien no es posible identificar todos los riesgos y factores, entre ellos se incluyen los siguientes: pérdidas que excedan las reservas, pérdida de empleados o de miembros de la gerencia claves, factores económicos adversos, disminución de nuestra capacidad financiera, pérdida de un grupo de corredores o agentes que representan una parte importante de nuestro negocio, pérdida de nuestra cartera de inversiones, reglamentaciones gubernamentales o del mercado adicionales, posibilidad de quedar sujetos a impuestos estadounidenses y otros riesgos descritos en los documentos presentados por la compañía ante la Comisión de Bolsa y Valores. Estas proyecciones son válidas únicamente a la fecha de este comunicado y no asumimos ninguna obligación de actualizar o revisar la información de cualquiera de estas proyecciones para reflejar cambios en las suposiciones, eventos imprevistos o cualquier otra situación.

Índices que no se ajustan a los principios de contabilidad generalmente aceptados

Al presentar los resultados de James River Group Holding, la gerencia incluyó índices financieros que no se calculan de acuerdo con los estándares o las reglas comprendidos en los principios de contabilidad generalmente aceptados (Generally Accepted Accounting Principles, GAAP) en los Estados Unidos. Estos índices, que incluyen las ganancias de seguros, los ingresos operativos netos y el capital tangible, se denominan índices financieros no ajustados a los principios de contabilidad generalmente aceptados. Es posible que otras compañías definan o calculen estos índices de manera diferente. No debe considerarse que estos índices sustituyen aquellos establecidos de acuerdo con los GAAP. Al final de este comunicado se incluye la conciliación de estos índices con los índices GAAP más similares.

Acerca de James River Group Holdings, Ltd.

James River Group Holdings, Ltd. es un holding empresarial de seguros con sede en las Bermudas que posee y opera un grupo de compañías especializadas de seguros y reaseguros fundadas por miembros de nuestro equipo gerencial. La compañía opera en tres segmentos especializados de seguros y reaseguros de responsabilidad y patrimoniales: líneas de excesos y excedentes, seguros de productos especiales admitidos y reaseguros de responsabilidad. En cada uno de los segmentos, la compañía tiende a enfocarse en cuentas asociadas con pequeñas y medianas empresas. A.M. Best Company calificó con “A-” (excelente) y una “perspectiva positiva” a cada una de las subsidiarias de seguro reguladas de la compañía.

Visite el sitio web de James River Group Holdings, Ltd. en www.jrgh.net

James River Group Holdings, Ltd. and Subsidiaries
Summarized Consolidated Balance Sheet Data
(Unaudited)
December 31,
2015
December 31,
2014
($ in thousands, except for share amounts)
ASSETS
Invested assets:
Fixed maturity securities, available-for-sale $ 899,660 $ 756,963
Fixed maturity securities, trading 5,046 7,388
Equity securities, available-for-sale 74,111 67,905
Bank loan participations held-for-investment 191,700 239,511
Short-term investments 19,270 131,856
Other invested assets 54,504 33,622
Total investments 1,244,291 1,237,245
Cash and cash equivalents 106,406 73,383
Accrued investment income 8,068 7,273
Premiums receivable and agents’ balances 176,685 162,527
Reinsurance recoverable on unpaid losses 131,788 127,254
Reinsurance recoverable on paid losses 11,298 1,725
Deferred policy acquisition costs 60,754 60,202
Goodwill and intangible assets 221,359 221,956
Other assets 94,848 67,727
Total assets $ 2,055,497 $ 1,959,292
LIABILITIES AND SHAREHOLDERS’ EQUITY
Reserve for losses and loss adjustment expenses $ 785,322 $ 716,296
Unearned premiums 301,104 277,579
Senior debt 88,300 88,300
Junior subordinated debt 104,055 104,055
Accrued expenses 29,476 31,107
Other liabilities 66,202 54,034
Total liabilities 1,374,459 1,271,371
Total shareholders’ equity 681,038 687,921
Total liabilities and shareholders’ equity $ 2,055,497 $ 1,959,292
Tangible equity $ 459,679 $ 465,965
Tangible equity per common share outstanding $ 15.88 $ 16.33
Total shareholders’ equity per common share outstanding $ 23.53 $ 24.10
Common shares outstanding 28,941,547 28,540,350
Debt to total capitalization ratio 22.0 % 21.9 %

James River Group Holdings, Ltd. and Subsidiaries
Summarized Consolidated Income Statement Data
(Unaudited)
Three Months Ended
December 31,
Years Ended
December 31,
2015 2014 2015 2014
($ in thousands, except for share data)
REVENUES
Gross written premiums $ 108,689 $ 103,151 $ 572,194 $ 518,767
Net written premiums $ 80,631 $ 82,465 $ 471,032 $ 450,083
Net earned premiums $ 115,429 $ 110,155 $ 461,205 $ 396,212
Net investment income 10,339 9,816 44,835 43,005
Net realized investment (losses) gains (2,074 ) 342 (4,547 ) (1,336 )
Other income 1,410 382 3,428 1,122
Total revenues 125,104 120,695 504,921 439,003
EXPENSES
Losses and loss adjustment expenses 69,883 65,432 279,016 237,368
Other operating expenses 38,039 34,084 157,803 133,055
Other expenses 523 13,164 730 16,012
Interest expense 1,782 1,686 6,999 6,347
Amortization of intangible assets 150 150 597 597
Total expenses 110,377 114,516 445,145 393,379
Income before taxes 14,727 6,179 59,776 45,624
Federal income tax expense (benefit) 2,057 (2,687 ) 6,279 939
NET INCOME $ 12,670 $ 8,866 $ 53,497 $ 44,685
NET OPERATING INCOME (a) $ 17,860 $ 18,785 $ 61,090 $ 58,424
EARNINGS PER SHARE
Basic $ 0.44 $ 0.31 $ 1.87 $ 1.57
Diluted $ 0.43 $ 0.31 $ 1.82 $ 1.55
NET OPERATING INCOME PER SHARE
Basic $ 0.62 $ 0.66 $ 2.13 $ 2.05
Diluted $ 0.60 $ 0.65 $ 2.08 $ 2.03
Weighted-average common shares outstanding:
Basic 28,821,260 28,540,350 28,662,051 28,540,350
Diluted 29,604,363 28,878,751 29,334,918 28,810,301
Cash dividends declared per common share $ 1.16 $ 0.00 $ 1.64 $ 2.45
Ratios:
Loss ratio 60.5 % 59.4 % 60.5 % 59.9 %
Expense ratio 31.8 % 30.7 % 33.5 % 33.4 %
Combined ratio 92.3 % 90.1 % 94.0 % 93.3 %
(a) See “Reconciliation of Non-GAAP Measures.”

James River Group Holdings, Ltd. and Subsidiaries
Segment Results
EXCESS AND SURPLUS LINES
Three Months Ended
December 31,
Years Ended
December 31,
2015 2014 2015 2014
($ in thousands)
Gross written premiums $ 73,333 $ 70,163 $ 308,717 $ 252,707
Net written premiums $ 61,334 $ 57,506 $ 253,285 $ 208,124
Net earned premiums $ 62,807 $ 57,473 $ 240,878 $ 195,786
Losses and loss adjustment expenses (29,838 ) (30,784 ) (131,221 ) (108,146 )
Underwriting expenses (15,621 ) (13,524 ) (62,050 ) (52,544 )
Underwriting profit (a)(b) $ 17,348 $ 13,165 $ 47,607 $ 35,096
Ratios:
Loss ratio 47.5 % 53.6 % 54.5 % 55.2 %
Expense ratio 24.9 % 23.5 % 25.8 % 26.8 %
Combined ratio 72.4 % 77.1 % 80.2 % 82.1 %
(a) See “Reconciliation of Non-GAAP Measures.”
(b) Underwriting results include fee income of $1.3 million and $318,000 for the three months ended December 31, 2015 and 2014, respectively, and $3.2 million and $883,000 for the years ended December 31, 2015 and 2014, respectively.

SPECIALTY ADMITTED INSURANCE
Three Months Ended
December 31,
Years Ended
December 31,
2015 2014 2015 2014
($ in thousands)
Gross written premiums $ 29,223 $ 18,933 $ 90,978 $ 59,380
Net written premiums $ 13,166 $ 11,373 $ 44,917 $ 36,228
Net earned premiums $ 11,758 $ 9,602 $ 42,206 $ 28,449
Losses and loss adjustment expenses (7,246 ) (4,905 ) (25,623 ) (15,179 )
Underwriting expenses (3,944 ) (3,786 ) (15,509 ) (13,237 )
Underwriting profit (a)(b) $ 568 $ 911 $ 1,074 $ 33
Ratios:
Loss ratio 61.6 % 51.1 % 60.7 % 53.4 %
Expense ratio 33.5 % 39.4 % 36.7 % 46.5 %
Combined ratio 95.2 % 90.5 % 97.5 % 99.9 %
(a) See “Reconciliation of Non-GAAP Measures.”
(b) Underwriting results include fee income of $319,000 and $359,000 for the three months ended December 31, 2015 and 2014, respectively, and
$1.3 million and $873,000 for the years ended December 31, 2015 and 2014, respectively.
CASUALTY REINSURANCE
Three Months Ended
December 31,
Years Ended
December 31,
2015 2014 2015 2014
($ in thousands)
Gross written premiums $ 6,133 $ 14,055 $ 172,499 $ 206,680
Net written premiums $ 6,131 $ 13,586 $ 172,830 $ 205,731
Net earned premiums $ 40,864 $ 43,080 $ 178,121 $ 171,977
Losses and loss adjustment expenses (32,799 ) (29,743 ) (122,172 ) (114,043 )
Underwriting expenses (11,534 ) (13,094 ) (58,507 ) (57,267 )
Underwriting profit (loss) (a) $ (3,469 ) $ 243 $ (2,558 ) $ 667
Ratios:
Loss ratio 80.3 % 69.0 % 68.6 % 66.3 %
Expense ratio 28.2 % 30.4 % 32.8 % 33.3 %
Combined ratio 108.5 % 99.4 % 101.4 % 99.6 %
(a) See “Reconciliation of Non-GAAP Measures.”


CONCILIACIÓN DE LAS NORMAS NO AJUSTADAS A LOS PRINCIPIOS DE CONTABILIDAD GENERALMENTE ACEPTADOS

El cuadro siguiente concilia las ganancias (pérdidas) de seguros por segmento operativo individual y de la compañía en su totalidad con los ingresos consolidados antes de impuestos. Creemos que estas normas son útiles para los inversores al evaluar el desempeño de la compañía y de sus segmentos operativos, porque nuestro objetivo es obtener ganancias de seguros en forma consistente. Evaluamos el desempeño de nuestros segmentos operativos y asignamos recursos, principalmente, en función de las ganancias (pérdidas) de seguros de los segmentos operativos. Las ganancias (pérdidas) de seguros no pueden compararse con los de otras compañías.

Three Months Ended
December 31,
Years Ended
December 31,
2015 2014 2015 2014
($ in thousands)
Underwriting profit (loss) of the operating segments:
Excess and Surplus Lines $ 17,348 $ 13,165 $ 47,607 $ 35,096
Specialty Admitted Insurance 568 911 1,074 33
Casualty Reinsurance (3,469 ) 243 (2,558 ) 667
Total underwriting profit of operating segments 14,447 14,319 46,123 35,796
Other operating expenses of the Corporate and Other segment (5,596 ) (3,362 ) (18,554 ) (9,124 )
Underwriting profit (a) 8,851 10,957 27,569 26,672
Net investment income 10,339 9,816 44,835 43,005
Net realized investment (losses) gains (2,074 ) 342 (4,547 ) (1,336 )
Other income and expenses (457 ) (13,100 ) (485 ) (15,773 )
Interest expense (1,782 ) (1,686 ) (6,999 ) (6,347 )
Amortization of intangible assets (150 ) (150 ) (597 ) (597 )
Consolidated income before taxes $ 14,727 $ 6,179 $ 59,776 $ 45,624
(a) Included in underwriting results for the three months ended December 31, 2015 and 2014 is fee income of $1.7 million and $677,000, respectively, and $4.5 million and $1.8 million for the years ended December 31, 2015 and 2014, respectively.

Definimos a los ingresos netos operativos como ingresos netos, excluidas las ganancias y pérdidas netas realizadas por inversión, como también los gastos no operativos, incluidos aquellos relacionados con los costos de diligencia debida por varias actividades de fusión y adquisición, costos asociados con nuestra oferta pública inicial, y costos de indemnizaciones asociadas con el despido de empleados. Utilizamos los ingresos netos operativos como una medida de desempeño interno en la gestión de nuestras operaciones, porque creemos que le otorga a nuestra gerencia y a otros usuarios de nuestra información financiera un útil conocimiento de los resultados de nuestras operaciones y de nuestro desempeño de negocios subyacente.

Nuestros ingresos antes de impuestos y nuestros ingresos netos durante los tres meses y el año finalizados el 31 de diciembre de 2015 y 2014, respectivamente, se concilian con nuestros ingresos netos operativos de la siguiente forma:

Three and Twelve Months Ended
December 31, 2015
Three Months Twelve Months
Income
Before
Taxes
Net
Income
Income
Before
Taxes
Net
Income
($ in thousands)
Income as reported $ 14,727 $ 12,670 $ 59,776 $ 53,497
Net realized investment losses (gains) 2,074 2,144 4,547 4,090
Registration costs and withholding taxes on special dividend 284 2,784 284 2,784
Other expenses 239 155 446 290
Interest expense on leased building the Company is deemed to own for accounting purposes 165 107 661 429
Net operating income $ 17,489 $ 17,860 $ 65,714 $ 61,090

Three and Twelve Months Ended
December 31, 2014
Three Months Twelve Months
Income
Before
Taxes
Net
Income
Income
Before
Taxes
Net
Income
($ in thousands)
Income as reported $ 6,179 $ 8,866 $ 45,624 $ 44,685
Net realized investment (gains) losses (342 ) (1,613 ) 1,336 (890 )
Initial public offering costs 13,074 11,367 14,930 13,223
Other expenses 90 58 1,082 977
Interest expense on leased building the Company is deemed to own for accounting purposes 164 107 659 429
Net operating income $ 19,165 $ 18,785 $ 63,631 $ 58,424

Definimos al capital tangible como la suma del capital contable menos la plusvalía mercantil y los activos intangibles (neto de amortización). Es posible que nuestra definición de capital tangible no sea comparable con la de otras compañías, y no debe considerarse como un sustituto del capital contable calculado de acuerdo con los principios de contabilidad generalmente aceptados. Utilizamos al capital tangible internamente para evaluar la fuerza de nuestro balance y para comparar rendimientos relativos a esta medida. El siguiente cuadro concilia el capital contable con el capital tangible para los años finalizados al 31 de diciembre de 2015 y 2014.

December 31,

September 30,

2015 2014 2015
($ in thousands)
Shareholders’ equity $ 681,038 $ 687,921 $ 707,416
Less: Goodwill and intangible assets 221,359 221,956 221,509
Tangible equity $ 459,679 $ 465,965 $ 485,907

Para obtener más información, comuníquese con:
Robert Myron
Presidente y director de Operaciones
1-441-278-4583
InvestorRelations@jrgh.net
Click Here for More Information »

James River Group Holdings Reports Fourth Quarter Results

Reports Quarterly Net Income of $12.7 Million, or $0.43 Per Diluted Share, and Net Operating Income of $17.9 Million, or $0.60 Per Diluted Share

2015 Net Operating Income of $61.1 Million, or $2.08 Per Diluted Share

Reports 94.0% Combined Ratio and 13.0% Operating Return on Tangible Equity for 2015

Declares $0.20 Per Share Dividend (a 25% Increase Over Q1 2015)

CaribPR Wire, PEMBROKE, Bermuda, Feb. 17, 2016: James River Group Holdings, Ltd. (NASDAQ:JRVR) today announced financial results for the fourth quarter and year ended December 31, 2015.

J. Adam Abram, Chairman and CEO of James River Group Holdings, Ltd. commented, “We earned a 13% operating return on average tangible equity in 2015, underwrote to a 94% combined ratio, and begin 2016 with a strong balance sheet.  These achievements: delivering high risk-adjusted returns on tangible equity by underwriting to a profit while protecting our balance sheet, are at the heart of our value proposition.  We are pleased with our performance during our first year as a public company and enter 2016 with confidence.”

Mr. Abram continued, “Other highlights from the year included a 10.3% annual growth rate in gross written premiums, and the payment of $47.8 million in dividends (89.3% of net income) to our shareholders.  We begin 2016 with a strong reserve position — evidenced by the fact that sixty eight percent of our net reserves are for incurred but not reported losses.  We have had favorable reserve development for fourteen consecutive quarters, and believe we have continued our history of making careful estimates regarding future losses.”

“I salute my colleagues who have worked hard and exercised good business judgment in order to deliver these results,” Mr. Abram said.

“Our top line growth, which outpaced our expectations in the first three quarters of the year, continued through the fourth quarter, but at a slower rate. We saw an uptick in competition for our E&S business during the last two months of the quarter, particularly for larger policies, and consistent with our emphasis on underwriting profit, we picked our opportunities carefully. The growth rate in our E&S Segment slowed to 4.5% for the quarter. We bound more policies in the fourth quarter of 2015 than we had in the fourth quarter of the prior year, but with smaller average premiums per account.  Our strategy allowed us to hold rates to within eight tenths of one percent (0.8%) for the year in this segment. We are very satisfied with that outcome.”

“We also found opportunities for profitable growth in our Specialty Admitted Segment, where annual gross written premiums grew by over 50% for both the year and the quarter.  Our fee business in this segment continues to grow, and the expense ratio continues to decline as both earned premiums and fees increase.”

“Our Casualty Reinsurance Segment had a poor result in the fourth quarter.  The segment’s combined ratio was 108.5% for the quarter and 101.4% for the year.  In light of the very competitive environment for reinsurance, we shrunk the reinsurance book in 2015, and expect it will be a smaller portion of our total premium in 2016.”

“The Company is well positioned. For 2016 we expect to write to a combined ratio of between 92% and 95% and to earn an operating return on average tangible equity of 12% or better,” Mr. Abram concluded.

Additional significant factors when evaluating results for the fourth quarter of 2015 include:

  • Diluted operating earnings per share are $0.60 per share compared to $0.65 per share in the prior year;
  • Net operating income for the fourth quarter of 2015 of $17.9 million compared to $18.8 million in the prior year;
  • In the current quarter, pre-tax favorable reserve development was $1.7 million (representing $0.03 per share) compared to pre-tax favorable development of $8.3 million (representing $0.25 per share) in the prior year;
  • Our business segments continue to respond nimbly to market conditions:
    • Our highly profitable E&S Segment grew gross written premiums 4.5% to $73.3 million from $70.2 million in the fourth quarter of 2014;
    • Our  Specialty Admitted Segment increased gross written premiums 54.3% to $29.2 million from $18.9 million in 2014, which helped to reduce the segment’s expense ratio to 33.5% from 39.4% in the fourth quarter of 2014; and
    • Our Casualty Reinsurance Segment’s gross written premium decreased from $14.1 million in the fourth quarter of 2014 to $6.1 million in 2015.
  • Our combined ratio for the quarter was 92.3% compared to 90.1% in the prior year; and
  • Net investment income for the quarter was $10.3 million compared to $9.8 million for the same period in 2014.

Additional significant factors when evaluating the year ended December 31, 2015 include:

  • Diluted operating earnings per share up 2.5% to $2.08 per share compared to $2.03 per share in the prior year;
  • Net operating income in 2015 of $61.1 million compared to $58.4 million in the prior year;
  • For 2015, we had favorable reserve development of $16.3 million (representing $0.45 per share), compared to $27.4 million in 2014 (representing $0.83 per share); and
  • We enjoyed an increase in gross written premiums of 10.3% to $572.2 from $518.8 million in 2014:
    • The Excess and Surplus Lines Segment’s gross written premiums grew 22.2% to $308.7 million, lowering the segment’s expense ratio by 1.0 points; and
    • The Specialty Admitted Segment’s gross written premiums grew by 53.2% to $91.0  million, which reduced the Segment’s expense ratio by 9.8 points; offset by
    • A decrease in our Casualty Reinsurance Segment of 16.5% to $172.5 million from $206.7 million in 2014.

Tangible Equity

Tangible equity (which reflects the payment of $33.9 million in dividends to our shareholders in the fourth quarter) decreased 5.4% from $485.9 million at September 30, 2015 to $459.7 million at December 31, 2015. Absent these dividends, our tangible equity grew 1.6% for the quarter. This change was primarily due to our net income of $12.7 million offset by a decrease of $5.7 million (after-tax) in accumulated other comprehensive income to $3.2 million at December 31, 2015. The decrease in accumulated other comprehensive income was due to a decrease in unrealized gains in our investment portfolio, caused primarily by the increase in market rates of interest during the quarter. Tangible equity per common share outstanding at December 31, 2015 was $15.88.

For 2015, our tangible equity (which reflects $47.8 million in dividends to our shareholders) decreased 1.3% from $466.0 million at December 31, 2014 to $459.7 million at December 31, 2015. Absent these dividends, our tangible equity grew 8.9% for the year. This change was primarily due to our net income of $53.5 million offset by a $15.2 million decrease in accumulated other comprehensive income to $3.2 million at December 31, 2015.  This decrease in accumulated other comprehensive income was primarily due to an increase in market rates of interest during the year, which affected the market value of some of our investments.

Earnings

Net operating earnings per diluted share for the fourth quarter of 2015 were $0.60 per share and excluded $0.18 per share ($5.2 million) of costs comprised of $2.1 million of net realized losses on our investment portfolio, $2.5 million of withholding taxes paid in connection with upstreaming capital to fund our special dividend in December, and $546,000 of other non-operating expenses. Net operating earnings per diluted share were $0.65 in the fourth quarter of 2014. For all of 2015, net operating earnings per diluted share for 2015 were $2.08 per share, excluding $0.26 per share of costs related to net realized losses, the aforementioned withholding tax and other non-operating expenses. This amount compares to $2.03 for the same period in 2014, excluding $0.48 of non-operating expenses principally related to increased share based compensation and other costs associated with the public offering last December.

Fully diluted earnings per share for the fourth quarter of 2015 were $0.43 which differs from the amount in the fourth quarter of 2014 of $0.31 primarily due to the inclusion of increased share based compensation expenses and other costs associated with the public offering last December. For all of 2015, fully diluted earnings per share were $1.82 per share. This amount compares to $1.55 for all of 2014.

Return on Tangible Equity

Using a five quarter average methodology to determine our average shareholders’ equity, our operating return on tangible shareholders’ equity was 13.0% for 2015 compared to 12.2% for 2014.

Underwriting Results

The combined ratio for the fourth quarter of 2015 was 92.3% (comprised of a loss ratio of 60.5% and an expense ratio of 31.8%). This compares to a combined ratio of 90.1% (comprised of a loss ratio of 59.4% and an expense ratio of 30.7%) in the prior year. For all of 2015, the combined ratio for the Company was 94.0% (comprised of a loss ratio of 60.5% and an expense ratio of 33.5%).  This compares to a combined ratio in the prior year of 93.3% (comprised of a loss ratio of 59.9% and an expense ratio of 33.4%).

Results for the quarter ended December 31, 2015 include favorable reserve development on prior accident years of $1.7 million, representing 1.5 points of our loss and combined ratio, respectively, which compares to favorable reserve development in the fourth quarter of the prior year of $8.3 million, representing 7.5 points of our loss and combined ratio, respectively. On an after-tax basis, favorable reserve development for the quarter is $849,000 ($7.1 million in the prior year). For all of 2015, favorable reserve development on prior accident years is $16.3 million (or $13.3 million on an after-tax basis) representing 3.5 points of our loss and combined ratio, respectively. In 2014, this favorable reserve development was $27.4 million (or $23.9 million on an after-tax basis) representing 6.9 points of our loss and combined ratio, respectively.

The slight increase in the overall expense ratio in the fourth quarter compared to the same period in the prior year (31.8% in 2015 vs. 30.7% in 2014) was primarily due to the increased costs of being a public company, offset by the 4.8% increase in our earned premiums from $110.2 million in 2014 to $115.4 million in 2015. For the year ended December 31, 2015 our expense ratio increased to 33.5% from 33.4% in 2014 as a result of the increased costs of being a public company offset by the increase in our earned premiums, which grew 16.4% in the year from $396.2 million in 2014 to $461.2 million in 2015.

The Excess and Surplus Lines segment’s combined ratio was 72.4% for the fourth quarter of 2015, comprised of a loss ratio of 47.5% and an expense ratio of 24.9%. In the prior year, this segment’s combined ratio was 77.1% for the fourth quarter, comprised of a loss ratio of 53.6% and an expense ratio of 23.5%.  For the year, the Excess and Surplus Lines segment’s combined ratio was 80.2%, comprised of a loss ratio of 54.5% and an expense ratio of 25.8%. In the prior year, this segment’s combined ratio for the year was 82.1%, comprised of a loss ratio of 55.2% and an expense ratio of 26.8%.  In the fourth quarter, we recognized $7.0 million in pre-tax, favorable reserve development representing 11.1 points of our loss and combined ratio, respectively. In the same period in 2014, we recognized $9.0 million in pre-tax favorable reserve development representing 15.7 points of our loss and combined ratio, respectively. For all of 2015, favorable reserve development on prior accident years in this segment was $25.4 million representing 10.6 points of our loss and combined ratio, respectively. In 2014, this favorable reserve development was $27.3 million representing 13.9 points of our loss and combined ratio, respectively.

The Specialty Admitted Insurance segment’s combined ratio was 95.2% for the fourth quarter of 2015, comprised of a loss ratio of 61.6% and an expense ratio of 33.5%. In the prior year, this segment’s combined ratio was 90.5%, comprised of a loss ratio of 51.1% and an expense ratio of 39.4%. For all of 2015, the Specialty Admitted Insurance segment’s combined ratio was 97.5%, comprised of a loss ratio of 60.7% and an expense ratio of 36.7%. In the prior year, this segment’s combined ratio was 99.9%, comprised of a loss ratio of 53.4% and an expense ratio of 46.5%. In the fourth quarter of 2015, we recognized $1.4 million in pre-tax, favorable reserve development representing 11.6 points of our loss and combined ratio, respectively. In the same period in 2014, we recognized $2.6 million in pre-tax, favorable reserve development representing 27.1 points of the loss and combined ratio, respectively. For all of 2015, favorable reserve development on prior accident years in this segment was $3.5 million representing 8.4 points of our loss and combined ratio, respectively. In 2014, this segment had favorable reserve development of $5.9 million representing 20.6 points of our loss and combined ratio, respectively. In 2015, the lower expense ratio for the fourth quarter and full year (of 33.5% and 36.7%, respectively) was due to the effects of the successful ramp up of the programs and fronting business as evidenced by the overall increase in earned premiums in this segment.

The Casualty Reinsurance segment’s combined ratio was 108.5% for the fourth quarter of 2015, comprised of a loss ratio of 80.3% and an expense ratio of 28.2%.  In the prior year, this segment’s combined ratio was 99.4% comprised of a loss ratio of 69.0% and an expense ratio of 30.4%. The decrease in the expense ratio during the fourth quarter of 2015 was the result of decreased sliding scale commissions payable associated with the adverse reserve development noted below. For all of 2015, the Casualty Reinsurance segment’s combined ratio was 101.4%, comprised of a loss ratio of 68.6% and an expense ratio of 32.8%. In the prior year, this segment’s combined ratio was 99.6% comprised of a loss ratio of 66.3% and an expense ratio of 33.3%. In the fourth quarter, we recognized $6.6 million of adverse reserve development representing (16.2) points of the loss and combined ratio, respectively. In the prior year, we recognized $3.3 million of adverse reserve development representing (7.7) points of the loss and combined ratio, respectively. The increase in losses for the quarter was a result of adverse development in prior years on three reinsureds – principally in the 2011 through 2013 accident years. For all of 2015, adverse reserve development on prior accident years in this segment was $12.6 million representing (7.1) points of our loss and combined ratio, respectively. In 2014, this adverse reserve development was $5.7 million representing (3.3) points of our loss and combined ratio, respectively. The decrease in gross written premium in this segment for the fourth quarter and full year of 2015 is principally due to the management of this Segment’s underwriting decisions to either non-renew or reduce the size of other contracts at renewal due to the pricing currently available in the market.

Investments

Net investment income for the fourth quarter of 2015 was $10.3 million which compares to $9.8 million for the same period in 2014. For the full year, net investment income for 2015 was $44.8 million which compares to $43.0 million for the same period in 2014. The increase in net investment income for the quarter was primarily attributable to the increase in our balance of cash and invested assets which grew from $1,302.1 million at September 30, 2014 to $1,378.9 million at September 30, 2015 as well as increasing the duration of our portfolio. The increase in net investment income on a year-to-date basis was also attributable to the increase in our balance of cash and invested assets which grew 3.1% from $1,310.6 million at December 31, 2014 to $1,350.7 million at December 31, 2015. Additionally net investment income was affected by our positive operating cash flow and the aforementioned increase in duration, partially offset by declining portfolio yields as well as the $70.0 million dividend we paid late in 2014 and the $47.8 million in dividends we paid throughout 2015, both of which reduced our investable assets. Additionally, on a full year basis, our investment in certain renewable energy partnerships contributed $3.9 million and $5.2 million for the years ended December 31, 2015 and 2014, respectively, to our net investment income (and a loss of $19,000 and income of $497,000 for the quarters ended December 31, 2015 and 2014, respectively). Our annualized gross investment yield on average fixed maturity securities for both the quarter and year ended December 31, 2015 was 3.4%.

During the fourth quarter, we recognized $2.1 million of pre-tax net realized losses. For all of 2015, we recognized $4.5 million in pre-tax net realized losses. Included in the amount for the fourth quarter of 2015 was $3.9 million of impairments that we took relating to oil and gas exposures in our bank loan portfolio. At December 31, 2015 the total oil and gas exposure in this bank loan portfolio was in eight loans with a carrying value of $15.8 million and a fair market value of $11.7 million.

Dividend

The Company announced that its Board of Directors declared a cash dividend of $0.20 per common share on Tuesday, February 16, 2016. This dividend is payable on Monday, March 28, 2016 to all shareholders of record on Monday, March 14, 2016.

Guidance

The Company announced guidance for 2016 of 12.0% or better operating return on average tangible equity and a combined ratio of between 92% and 95% for the full year.

Conference Call

James River Group Holdings will hold a conference call to discuss this press release tomorrow, February 18, 2016, at 9:00 a.m. Eastern time. Investors may access the conference call by dialing (877) 930-8055 Conference ID# 12632972 or via the internet by going to www.jrgh.net and clicking on the “Investor Relations” link. Please visit the website at least 15 minutes early to register and download any necessary audio software. A replay will be available shortly after the call and through the end of business on March 19, 2016 at the number and website referenced above.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, intend, project, anticipate, plan, estimate or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.  Although it is not possible to identify all of these risks and factors, they include, among others, the following: losses exceeding reserves; loss of key members of our management or employees; adverse economic factors; a decline in our financial strength; loss of a group of brokers or agents that generate significant portions of our business; losses in our investment portfolio; additional government or market regulation; potentially becoming subject to United States taxation and other risks described in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Non-GAAP Financial Measures

In presenting James River Group Holding’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). Such measures, including underwriting profit, net operating income and tangible equity are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. These measures should not be viewed as a substitute for those determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included at the end of this press release.

About James River Group Holdings, Ltd.

James River Group Holdings, Ltd. is a Bermuda-based insurance holding company which owns and operates a group of specialty insurance and reinsurance companies founded by members of our management team. The Company operates in three specialty property-casualty insurance and reinsurance segments: Excess and Surplus Lines, Specialty Admitted Insurance and Casualty Reinsurance. The Company tends to focus on accounts associated with small or medium-sized businesses in each of its segments. Each of the Company’s regulated insurance subsidiaries are rated “A-” (Excellent) with a “positive outlook” by A.M. Best Company.

Visit James River Group Holdings, Ltd. on the web at www.jrgh.net

James River Group Holdings, Ltd. and Subsidiaries
Summarized Consolidated Balance Sheet Data
(Unaudited)
December 31,
2015
December 31,
2014
($ in thousands, except for share amounts)
ASSETS
Invested assets:
Fixed maturity securities, available-for-sale $ 899,660 $ 756,963
Fixed maturity securities, trading 5,046 7,388
Equity securities, available-for-sale 74,111 67,905
Bank loan participations held-for-investment 191,700 239,511
Short-term investments 19,270 131,856
Other invested assets 54,504 33,622
Total investments 1,244,291 1,237,245
Cash and cash equivalents 106,406 73,383
Accrued investment income 8,068 7,273
Premiums receivable and agents’ balances 176,685 162,527
Reinsurance recoverable on unpaid losses 131,788 127,254
Reinsurance recoverable on paid losses 11,298 1,725
Deferred policy acquisition costs 60,754 60,202
Goodwill and intangible assets 221,359 221,956
Other assets 94,848 67,727
Total assets $ 2,055,497 $ 1,959,292
LIABILITIES AND SHAREHOLDERS’ EQUITY
Reserve for losses and loss adjustment expenses $ 785,322 $ 716,296
Unearned premiums 301,104 277,579
Senior debt 88,300 88,300
Junior subordinated debt 104,055 104,055
Accrued expenses 29,476 31,107
Other liabilities 66,202 54,034
Total liabilities 1,374,459 1,271,371
Total shareholders’ equity 681,038 687,921
Total liabilities and shareholders’ equity $ 2,055,497 $ 1,959,292
Tangible equity $ 459,679 $ 465,965
Tangible equity per common share outstanding $ 15.88 $ 16.33
Total shareholders’ equity per common share outstanding $ 23.53 $ 24.10
Common shares outstanding 28,941,547 28,540,350
Debt to total capitalization ratio 22.0 % 21.9 %

James River Group Holdings, Ltd. and Subsidiaries
Summarized Consolidated Income Statement Data
(Unaudited)
Three Months Ended
December 31,
Years Ended
December 31,
2015 2014 2015 2014
($ in thousands, except for share data)
REVENUES
Gross written premiums $ 108,689 $ 103,151 $ 572,194 $ 518,767
Net written premiums $ 80,631 $ 82,465 $ 471,032 $ 450,083
Net earned premiums $ 115,429 $ 110,155 $ 461,205 $ 396,212
Net investment income 10,339 9,816 44,835 43,005
Net realized investment (losses) gains (2,074 ) 342 (4,547 ) (1,336 )
Other income 1,410 382 3,428 1,122
Total revenues 125,104 120,695 504,921 439,003
EXPENSES
Losses and loss adjustment expenses 69,883 65,432 279,016 237,368
Other operating expenses 38,039 34,084 157,803 133,055
Other expenses 523 13,164 730 16,012
Interest expense 1,782 1,686 6,999 6,347
Amortization of intangible assets 150 150 597 597
Total expenses 110,377 114,516 445,145 393,379
Income before taxes 14,727 6,179 59,776 45,624
Federal income tax expense (benefit) 2,057 (2,687 ) 6,279 939
NET INCOME $ 12,670 $ 8,866 $ 53,497 $ 44,685
NET OPERATING INCOME (a) $ 17,860 $ 18,785 $ 61,090 $ 58,424
EARNINGS PER SHARE
Basic $ 0.44 $ 0.31 $ 1.87 $ 1.57
Diluted $ 0.43 $ 0.31 $ 1.82 $ 1.55
NET OPERATING INCOME PER SHARE
Basic $ 0.62 $ 0.66 $ 2.13 $ 2.05
Diluted $ 0.60 $ 0.65 $ 2.08 $ 2.03
Weighted-average common shares outstanding:
Basic 28,821,260 28,540,350 28,662,051 28,540,350
Diluted 29,604,363 28,878,751 29,334,918 28,810,301
Cash dividends declared per common share $ 1.16 $ 0.00 $ 1.64 $ 2.45
Ratios:
Loss ratio 60.5 % 59.4 % 60.5 % 59.9 %
Expense ratio 31.8 % 30.7 % 33.5 % 33.4 %
Combined ratio 92.3 % 90.1 % 94.0 % 93.3 %
(a) See “Reconciliation of Non-GAAP Measures.”

James River Group Holdings, Ltd. and Subsidiaries
Segment Results
EXCESS AND SURPLUS LINES
Three Months Ended
December 31,
Years Ended
December 31,
2015 2014 2015 2014
($ in thousands)
Gross written premiums $ 73,333 $ 70,163 $ 308,717 $ 252,707
Net written premiums $ 61,334 $ 57,506 $ 253,285 $ 208,124
Net earned premiums $ 62,807 $ 57,473 $ 240,878 $ 195,786
Losses and loss adjustment expenses (29,838 ) (30,784 ) (131,221 ) (108,146 )
Underwriting expenses (15,621 ) (13,524 ) (62,050 ) (52,544 )
Underwriting profit (a)(b) $ 17,348 $ 13,165 $ 47,607 $ 35,096
Ratios:
Loss ratio 47.5 % 53.6 % 54.5 % 55.2 %
Expense ratio 24.9 % 23.5 % 25.8 % 26.8 %
Combined ratio 72.4 % 77.1 % 80.2 % 82.1 %
(a) See “Reconciliation of Non-GAAP Measures.”
(b) Underwriting results include fee income of $1.3 million and $318,000 for the three months ended December 31, 2015 and 2014, respectively, and $3.2 million and $883,000 for the years ended December 31, 2015 and 2014, respectively.
SPECIALTY ADMITTED INSURANCE
Three Months Ended
December 31,
Years Ended
December 31,
2015 2014 2015 2014
($ in thousands)
Gross written premiums $ 29,223 $ 18,933 $ 90,978 $ 59,380
Net written premiums $ 13,166 $ 11,373 $ 44,917 $ 36,228
Net earned premiums $ 11,758 $ 9,602 $ 42,206 $ 28,449
Losses and loss adjustment expenses (7,246 ) (4,905 ) (25,623 ) (15,179 )
Underwriting expenses (3,944 ) (3,786 ) (15,509 ) (13,237 )
Underwriting profit (a)(b) $ 568 $ 911 $ 1,074 $ 33
Ratios:
Loss ratio 61.6 % 51.1 % 60.7 % 53.4 %
Expense ratio 33.5 % 39.4 % 36.7 % 46.5 %
Combined ratio 95.2 % 90.5 % 97.5 % 99.9 %
(a) See “Reconciliation of Non-GAAP Measures.”
(b) Underwriting results include fee income of $319,000 and $359,000 for the three months ended December 31, 2015 and 2014, respectively, and
$1.3 million and $873,000 for the years ended December 31, 2015 and 2014, respectively.
CASUALTY REINSURANCE
Three Months Ended
December 31,
Years Ended
December 31,
2015 2014 2015 2014
($ in thousands)
Gross written premiums $ 6,133 $ 14,055 $ 172,499 $ 206,680
Net written premiums $ 6,131 $ 13,586 $ 172,830 $ 205,731
Net earned premiums $ 40,864 $ 43,080 $ 178,121 $ 171,977
Losses and loss adjustment expenses (32,799 ) (29,743 ) (122,172 ) (114,043 )
Underwriting expenses (11,534 ) (13,094 ) (58,507 ) (57,267 )
Underwriting profit (loss) (a) $ (3,469 ) $ 243 $ (2,558 ) $ 667
Ratios:
Loss ratio 80.3 % 69.0 % 68.6 % 66.3 %
Expense ratio 28.2 % 30.4 % 32.8 % 33.3 %
Combined ratio 108.5 % 99.4 % 101.4 % 99.6 %
(a) See “Reconciliation of Non-GAAP Measures.”

RECONCILIATION OF NON-GAAP MEASURES

The following table reconciles the underwriting profit (loss) by individual operating segment and of the whole Company to consolidated income before taxes. We believe that these measures are useful to investors in evaluating the performance of our Company and its operating segments because our objective is to consistently earn underwriting profits.  We evaluate the performance of our operating segments and allocate resources based primarily on underwriting profit (loss) of operating segments.  Our definition of underwriting profit (loss) of operating segments and underwriting profit (loss) may not be comparable to that of other companies.

Three Months Ended
December 31,

Years Ended
December 31,
2015 2014
2015 2014
($ in thousands)
Underwriting profit (loss) of the operating segments:
Excess and Surplus Lines $ 17,348 $ 13,165 $ 47,607 $ 35,096
Specialty Admitted Insurance 568 911 1,074 33
Casualty Reinsurance (3,469 ) 243 (2,558 ) 667
Total underwriting profit of operating segments 14,447 14,319 46,123 35,796
Other operating expenses of the Corporate and Other segment (5,596 ) (3,362 ) (18,554 ) (9,124 )
Underwriting profit (a) 8,851 10,957 27,569 26,672
Net investment income 10,339 9,816 44,835 43,005
Net realized investment (losses) gains (2,074 ) 342 (4,547 ) (1,336 )
Other income and expenses (457 ) (13,100 ) (485 ) (15,773 )
Interest expense (1,782 ) (1,686 ) (6,999 ) (6,347 )
Amortization of intangible assets (150 ) (150 ) (597 ) (597 )
Consolidated income before taxes $ 14,727 $ 6,179 $ 59,776 $ 45,624
(a) Included in underwriting results for the three months ended December 31, 2015 and 2014 is fee income of $1.7 million and $677,000, respectively, and $4.5 million and $1.8 million for the years ended December 31, 2015 and 2014, respectively.

We define net operating income as net income excluding net realized investment gains and losses as well as non-operating expenses including those that relate to due diligence costs for various merger and acquisition activities, costs associated with our initial public offering and severance costs associated with terminated employees. We use net operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance.  Net operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and our definition of net operating income may not be comparable to that of other companies.

Our income before taxes and net income for the three months and years ended December 31, 2015 and 2014, respectively, reconciles to our net operating income as follows:

Three and Twelve Months Ended
December 31, 2015
Three Months Twelve Months
Income
Before
Taxes
Net
Income
Income
Before
Taxes
Net
Income
($ in thousands)
Income as reported $ 14,727 $ 12,670 $ 59,776 $ 53,497
Net realized investment losses (gains) 2,074 2,144 4,547 4,090
Registration costs and withholding taxes on special dividend 284 2,784 284 2,784
Other expenses 239 155 446 290
Interest expense on leased building the Company is deemed to own for accounting purposes 165 107 661 429
Net operating income $ 17,489 $ 17,860 $ 65,714 $ 61,090
Three and Twelve Months Ended
December 31, 2014
Three Months Twelve Months
Income
Before
Taxes
Net
Income
Income
Before
Taxes
Net
Income
($ in thousands)
Income as reported $ 6,179 $ 8,866 $ 45,624 $ 44,685
Net realized investment (gains) losses (342 ) (1,613 ) 1,336 (890 )
Initial public offering costs 13,074 11,367 14,930 13,223
Other expenses 90 58 1,082 977
Interest expense on leased building the Company is deemed to own for accounting purposes 164 107 659 429
Net operating income $ 19,165 $ 18,785 $ 63,631 $ 58,424

We define tangible equity as the sum of shareholders’ equity less goodwill and intangible assets (net of amortization).  Our definition of tangible equity may not be comparable to that of other companies, and it should not be viewed as a substitute for shareholders’ equity calculated in accordance with GAAP.  We use tangible equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure.  The following table reconciles shareholders’ equity to tangible equity for the years ended December 31, 2015 and 2014.

December 31, September 30,
2015 2014 2015
($ in thousands)
Shareholders’ equity $ 681,038 $ 687,921 $ 707,416
Less: Goodwill and intangible assets 221,359 221,956 221,509
Tangible equity $ 459,679 $ 465,965 $ 485,907

For more information contact:
Robert Myron
President and Chief Operating Officer
1-441-278-4583
InvestorRelations@jrgh.net
Click Here for More Information »

James River Group Holdings, Ltd. (NASDAQ: “JRVR”) anuncia las fechas de la conferencia telefónica en la que dará a conocer las ganancias del cuarto trimestre y de fin de ano de 2015

CaribPR Wire, PEMBROKE, Bermudas, Jan. 20, 2016: James River Group Holdings, Ltd. (NASDAQ: JRVR) anunció hoy que publicará las ganancias del trimestre y del año que finalizaron el 31 de diciembre de 2015 luego del cierre del mercado el miércoles, 17 de febrero de 2016. El 18 de febrero de 2016, a partir de las 9.00 a. m. (hora estándar del este), la compañía ofrecerá un conferencia telefónica para analizar los resultados con analistas e inversionistas.

Los inversionistas pueden participar en la conferencia llamando al (877) 930-8055; el número de identificación de la conferencia es el 12632972. O bien a través de Internet en www.jrgh.net haciendo clic en el enlace “Investor Relations” (Relaciones con los inversionistas). Ingrese al sitio web al menos 15 minutos antes del evento para inscribirse y descargar e instalar el software de audio necesario. La repetición de la conferencia estará disponible en el número de teléfono y en el sitio web antes mencionados hasta el cierre de la jornada el 19 de marzo de 2016.

Acerca de James River Group Holdings, Ltd.

James River Group Holdings, Ltd. es un holding empresarial de seguros con sede en las Bermudas que posee y opera un grupo de compañías especializadas de seguros y reaseguros fundadas por miembros de nuestro equipo gerencial. La compañía opera en tres segmentos especializados de seguros y reaseguros de responsabilidad y patrimoniales: líneas de excesos y excedentes, seguros de productos especiales admitidos y reaseguros de responsabilidad. En cada uno de los segmentos, la compañía tiende a enfocarse en cuentas asociadas con pequeñas y medianas empresas. A.M. Best Company calificó con “A-” (excelente) y una “perspectiva positiva” a cada una de las subsidiarias de seguro reguladas de la compañía.

Visite el sitio web de James River Group Holdings, Ltd. en www.jrgh.net

Para obtener más información, comuníquese con:
Robert Myron
Presidente y Director de Operaciones
InvestorRelations@jrgh.net
441-278-4583

Click Here for More Information »

James River Group Holdings, Ltd. (NASDAQ: “JRVR”) Announces Dates for Its 2015 Fourth Quarter and Year-End Earnings Release and Conference Call

CaribPR Wire, PEMBROKE, Bermuda, Jan. 19, 2016:  James River Group Holdings, Ltd. (NASDAQ:JRVR) announced today it will release its earnings for the quarter and year ended December 31, 2015 after the market closes on Wednesday February 17, 2016. The Company will also host a conference call to discuss its results with analysts and investors on Thursday, February 18, 2016 beginning at 9:00am (Eastern Standard Time).

Investors may access the conference call by dialing (877) 930-8055, conference ID# 12632972, or via the internet by going to www.jrgh.net and clicking on the “Investor Relations” link. Please visit the website at least 15 minutes early to register, download and install any necessary audio software. A replay of the call will be available at both the number above and the website until the close of business on March 19, 2016.

About James River Group Holdings, Ltd.

James River Group Holdings, Ltd. is a Bermuda-based insurance holding company which owns and operates a group of specialty insurance and reinsurance companies founded by members of our management team. The company operates in three specialty property-casualty insurance and reinsurance segments: Excess and Surplus Lines, Specialty Admitted Insurance and Casualty Reinsurance. The company tends to focus on accounts associated with small or medium-sized businesses in each of its segments. Each of the Company’s regulated insurance subsidiaries are rated “A-” (Excellent) with a “positive outlook” by A.M. Best Company.

Visit James River Group Holdings, Ltd. on the web at www.jrgh.net

For more information contact:

Robert Myron
President and Chief Operating Officer
InvestorRelations@jrgh.net
441-278-4583
James River Group Holdings, Ltd. (NASDAQ: "JRVR") anuncia las fechas de la conferencia telefónica en la que dará a conocer las ganancias del cuarto trimestre y de fin de ano de 2015
Click Here for More Information »

Beechwood To Acquire Old Mutual Bermuda

Beechwood Bermuda, Ltd. Acquires Offshore Writer of Investment and Annuity Products

HAMILTON, Bermuda, Jan. 4, 2016 /PRNewswire-HISPANIC PR WIRE/ — Beechwood Bermuda, Ltd. (”Beechwood”) today announced the completion of its acquisition of Old Mutual (Bermuda), Ltd. (”OMB”), a Bermuda based provider of insurance and investment products with over $1 billion in assets, which closed for new business in 2009. Beechwood, one of the largest providers of international investment plans, now has over $2 billion in total assets and is featured on the platforms of over 100 banks and brokerage firms around the world.

Logo - http://photos.prnewswire.com/prnh/20140731/132418

The transaction, which closed on December 31, 2015, provides for the continuation of service support by Old Mutual for the OMB products over the next three years, supplemented by additional support from Beechwood’s growing wealth management business. As part of the arrangement, Old Mutual will reinsure certain policy guarantees until they mature in 2017 and 2018. Given the continuity of resources, no disruption to client service is anticipated.

“This transaction offers a unique opportunity to strengthen our position as a global leader and demonstrates our dedication to providing innovative financial solutions for international investors,” said Mark Feuer, Chief Executive Officer of Beechwood. “Our scale and resources will allow us to continue to meet and further develop client demand for our products for years to come.”

Over the next several weeks, Beechwood will be contacting OMB’s distribution partners to discuss the transition and introduce Beechwood’s Accumulator Plus and Escalator Plus investment plans, which offer attractive rates and unique investment features such as principal protection guarantees. David Lessing, Executive Vice President of Products and Services at Beechwood, noted, “The growing client demand for the Beechwood products reinforces our decision to make a significant commitment to this business in support of our distribution partners and their financial advisors.”

Financial terms of the transaction were not disclosed. Certain regulatory approvals for the transfer of future policy administration arrangements are expected by the end of Q1 2016.

About Beechwood Bermuda Ltd. and Beechwood Re, Ltd.
The Beechwood family of companies includes Beechwood Bermuda Ltd., a licensed long-term insurer located in Hamilton, Bermuda and regulated by the Bermuda Monetary Authority (BMA) — and Beechwood Re, a reinsurer domiciled in Grand Cayman and regulated by the Cayman Islands Monetary Authority (CIMA). The companies were formed to provide solutions that address significant demand from: (1) non-U.S. high net worth investors seeking innovative, guaranteed investment products; and (2) U.S. and international insurers in need of attractive capacity in the life insurance and annuity reinsurance market.

More information is available by contacting Julianne Classey, Head of Media Relations at jclassey@beechwood.com or (646) 356-1629.

RELATED LINKS:
http://www.beechwoodbermuda.com
http://www.beechwoodre.com

Click Here for More Information »

James River Group Holdings Reports Third Quarter Net Income of $19.0 Million, or $0.64 Per Diluted Share

Reports Net Operating Income of $19.2 Million, or $0.65 Per Diluted Share

Declares $0.16 Per Share Quarterly Dividend

Declares $1.00 Per Share Special Dividend

33.0% Growth in Excess and Surplus Lines Segment and 41.2% Growth in Specialty Admitted Segment in the Third Quarter

Increased Scale Drives Expense Ratio Reductions in E&S and Specialty Admitted Segments

Year-to-Date Net Income of $40.8 Million or $1.40 Per Share and Net Operating Income of $43.2 Million or $1.48 Per Share

CaribPR Wire, PEMBROKE, Bermuda, Nov. 04, 2015: — James River Group Holdings, Ltd. (NASDAQ:JRVR) today announced financial results for the third quarter and nine months ended September 30, 2015.

J. Adam Abram, Chairman and CEO of James River Group Holdings, Ltd. commented, “My colleagues delivered strong returns, producing an 89.0% combined ratio. James River remains on track to earn a 12% return on tangible equity for our shareholders for calendar 2015.  Our profitable growth permitted our Board to supplement our regular $0.16 quarterly dividend with an additional special dividend of $1.00 per share to be paid in the fourth quarter. We are very pleased to announce these results and these dividends.”

Significant factors to consider when evaluating the third quarter of 2015 include:

  • Each of the Company’s operating segments made an underwriting profit;
  • Diluted operating earnings per share are $0.65 per share compared to $0.64 per share in the prior year;
  • Net operating income for the third quarter 2015 of $19.2 million compared to $18.3 million in the prior year;
  • In the current quarter, pre-tax favorable reserve development was $9.6 million (representing $0.28 per share) compared to pre-tax favorable development of $15.4 million (representing $0.48 per share) in the prior year.  This was the 13th consecutive quarter where we have been able to reduce reserves on prior accident years;
  • Our business segments continue to respond nimbly to market conditions:
    • Our highly profitable E&S Segment grew gross written premiums 33.0% to $82.2 million from $61.9 million in the third quarter of 2014;
    • Our Specialty Admitted Insurance Segment increased gross written premiums 41.2% to $22.9 million from $16.2 million in 2014, which helped to reduce the segment’s expense ratio to 35.7% from 46.4% in the third quarter of 2014.
  • Our combined ratio for the quarter was 89.0% compared to 88.8% in the prior year.  As of September 30, 2015, 69% of total net loss reserves were designated as IBNR, which is consistent with our history of strong reserves;
  • Net investment income for the quarter was $9.5 million compared to $10.0 million for the same period in 2014;
  • The decrease in gross written premiums in our Casualty Reinsurance Segment from $93.3 million to $43.1 million was primarily the result of a timing difference, as a large reinsurance contract renewed out of sequence.  Additionally, management of this Segment made underwriting decisions to either non-renew or reduce the size of other contracts at renewal in the quarter.

Significant factors to consider when evaluating the nine-month period ended September 30, 2015 include:

  • Each of the Company’s operating segments made an underwriting profit;
  • Diluted operating earnings per share up 7.2% to $1.48 per share compared to $1.38 per share in the prior year.
  • Net operating income in 2015 of $43.2 million compared to $39.6 million in the prior year;
  • For the nine months of 2015, we had favorable reserve development of $14.6 million, compared to $19.1 million in the first nine months of 2014;
  • We enjoyed an increase in gross written premiums of 11.5% to $463.5 from $415.6 million, which helped lower expense ratios in our two primary insurers:
    • The Excess and Surplus Lines Segment’s gross written premiums grew 28.9% to $235.4 million, which lowered the segment’s expense ratio by 2.1 percentage points;
    • The Specialty Admitted Insurance Segment’s gross written premiums grew by 52.7% to $61.8 million, which lowered the Segment’s expense ratio by 12.1 percentage points;
    • A decrease in our Casualty Reinsurance Segment’s gross written premiums of 13.6% to $166.4 million from $192.6 million in 2014.

Tangible equity value increased 3.3% for the third quarter of 2015 from $470.5 million at June 30, 2015 to $485.9 million at September 30, 2015. This was primarily due to our net income of $19.0 million and an increase in accumulated other comprehensive income (i.e. unrealized gains in our investment portfolio) which increased $1.6 million (after-tax) from $7.3 million at June 30, 2015 to $8.9 million at September 30, 2015, partially offset by the dividend of $4.6 million paid during the quarter. The increase in unrealized gains was primarily driven by the change in market rates of interest.

On a year-to-date basis, our tangible book value increased 4.3% from $466.0 million at December 31, 2014 to $485.9 million at September 30, 2015. This increase was primarily due to our net income of $40.8 million partially offset by a decrease in accumulated other comprehensive income which decreased $9.5 million from $18.4 million at December 31, 2014 to $8.9 million at September 30, 2015, as well as the $13.9 million of dividends paid and accrued during 2015.

Net operating earnings per diluted share for the third quarter of 2015 were $0.65 per share and excluded $252,000 of pre-tax costs related to realized gains and losses and other non-operating expenses. This amount compares to $0.64 for the same period in 2014. On a year-to-date basis, net operating earnings per diluted share for 2015 were $1.48 per share and excluded $0.08 per share of costs related to realized gains and losses and other non-operating expenses. This amount compares to $1.38 for the same period in 2014.

Fully diluted earnings per share for the third quarter of 2015 were $0.64 which exceeded the amount in the third quarter of 2014 of $0.60. On a year-to-date basis, fully diluted earnings per share for 2015 were $1.40 per share. This amount compares to $1.24 for the same period in 2014.

The combined ratio for the Company was 89.0% (comprised of a loss ratio of 54.4% and an expense ratio of 34.7%) for the third quarter of 2015. This compares to a combined ratio of 88.8% (comprised of a loss ratio of 54.5% and an expense ratio of 34.3%) in the prior year. On a year-to-date basis, the combined ratio for the Company for 2015 was 94.6% (comprised of a loss ratio of 60.5% and an expense ratio of 34.1%). This compares to a combined ratio in the prior year of 94.5% (comprised of a loss ratio of 60.1% and an expense ratio of 34.4%).

Results for the quarter ended September 30, 2015 include favorable reserve development on prior accident years of $9.6 million, representing 7.8 points of our loss and combined ratio, respectively, which compares to favorable reserve development in the prior year of $15.4 million, representing 15.4 points of our loss and combined ratio, respectively. On an after-tax basis, favorable reserve development for the quarter is $8.3 million ($13.9 million in the prior year). On a year-to-date basis, 2015 includes favorable reserve development on prior accident years of $14.6 million (or $12.4 million on an after-tax basis) representing 4.2 points of our loss and combined ratio, respectively. In 2014, this nine-month favorable reserve development was $19.1 million (or $16.8 million on an after-tax basis) representing 6.7 points of our loss and combined ratio, respectively.

The increase in the overall expense ratio in the third quarter of 2015 compared to the same period in the prior year (34.7% in 2015 vs. 34.3% in the prior year) was due to increased sliding scale commissions at our Casualty Reinsurance segment (due to lower underlying loss ratios) as well as the increased share based compensation expenses and other costs of being a public company, offset by the increase in our earned premiums which grew 22.7% in the quarter from $100.0 million in 2014 to $122.7 million in 2015. For the nine months ended September 30, 2015 our expense ratio decreased to 34.1% in 2015 from 34.4% in 2014 as a result of earned premiums increasing 20.9% from $286.1 million in 2014 to $345.8 million in 2015, offset by the increased share based compensation expenses and other costs of being a public company.

The Excess and Surplus Lines segment’s combined ratio was 74.1% for the third quarter of 2015, comprised of a loss ratio of 49.9% and an expense ratio of 24.2%. In the prior year, this segment’s combined ratio was 74.6% for the third quarter, comprised of a loss ratio of 46.6% and an expense ratio of 27.9%. For the year-to-date, the Excess and Surplus Lines segment’s combined ratio was 83.0%, comprised of a loss ratio of 56.9% and an expense ratio of 26.1%. In the prior year, this segment’s combined ratio on a year-to-date basis was 84.1%, comprised of a loss ratio of 55.9% and an expense ratio of 28.2%. In the third quarter, we recognized $10.1 million in pre-tax, favorable reserve development representing 15.3 points of our loss and combined ratio, respectively. In the same period in 2014, we recognized $12.0 million in pre-tax favorable reserve development representing 23.4 points of our loss and combined ratio, respectively. On a year-to-date basis, 2015 includes favorable reserve development on prior accident years of $18.5 million representing 10.4 points of our loss and combined ratio, respectively. In 2014, this favorable reserve development was $18.3 million representing 13.2 points of our loss and combined ratio, respectively.

The Specialty Admitted Insurance segment’s combined ratio was 95.7% for the third quarter of 2015, comprised of a loss ratio of 60.0% and an expense ratio of 35.7%. In the prior year, this segment’s combined ratio was 97.7%, comprised of a loss ratio of 51.3% and an expense ratio of 46.4%. For the year-to-date, the Specialty Admitted Insurance segment’s combined ratio was 98.3%, comprised of a loss ratio of 60.4% and an expense ratio of 38.0%. In the prior year, this segment’s combined ratio was 104.7%, comprised of a loss ratio of 54.5% and an expense ratio of 50.1%. In the third quarter, we recognized $2.0 million in pre-tax, favorable reserve development representing 18.3 points of our loss and combined ratio, respectively. In the same period in 2014, we recognized $2.2 million in pre-tax, favorable reserve development representing 30.3 points of the loss and combined ratio, respectively. On a year-to-date basis, 2015 includes favorable reserve development on prior accident years of $2.2 million representing 7.1 points of our loss and combined ratio, respectively. In 2014, this segment had favorable reserve development of $3.3 million representing 17.2 points of our loss and combined ratio, respectively. The expense ratio for the third quarter and year-to-date 2015 of 35.7% and 38.0%, respectively, has begun to show the effects of the successful ramp up of the programs and fronting business along with an overall increase in earned premiums in this segment. For the same periods in the prior year, the expense ratio was 46.4% and 50.1%, respectively.

The Casualty Reinsurance segment’s combined ratio was 99.4% for the third quarter of 2015, comprised of a loss ratio of 59.4% and an expense ratio of 40.0%.  In the prior year, this segment’s combined ratio was 100.0% comprised of a loss ratio of 64.7% and an expense ratio of 35.2%. The increase in the expense ratio during the third quarter of 2015 was the result of increased sliding scale commissions associated with favorable loss ratios, principally in the 2014 underwriting year. For the year-to-date, the Casualty Reinsurance segment’s combined ratio was 99.3%, comprised of a loss ratio of 65.1% and an expense ratio of 34.2%. In the prior year, this segment’s combined ratio on a year-to-date basis was 99.7%, comprised of a loss ratio of 65.4% and an expense ratio of 34.3%. In the third quarter, we recognized $2.5 million of adverse reserve development representing (5.3) points of the loss and combined ratio, respectively. In the prior year, we recognized $1.2 million of favorable reserve development representing 2.9 points of the loss and combined ratio, respectively. On a year-to-date basis, 2015 includes adverse reserve development on prior accident years of $6.0 million representing (4.4) points of our loss and combined ratio, respectively. In 2014, this adverse reserve development was $2.4 million representing (1.9) points of our loss and combined ratio, respectively.

The decrease in gross written premium in this segment for the third quarter of 2015 is principally due to the timing of the renewal of one contract which renewed in the third quarter of 2014 but was renewed in the second quarter of 2015. This contract contributed $25.0 million to this segment’s gross written premium in the third quarter of 2014 and $16.0 million to the second quarter of 2015. Additionally, management of this Segment made underwriting decisions to either non-renew or reduce the size of other contracts at renewal in the quarter.

Net investment income for the third quarter of 2015 was $9.5 million which compares to $10.0 million for the same period in 2014. On a year-to-date basis, net investment income for 2015 was $34.5 million which compares to $33.2 million for the same period in 2014. The decrease in net investment income for the quarter was primarily attributable to a decrease in the fair value of our investments in certain renewable energy partnerships in the third quarter of $(659,000) compared to an increase of $697,000 in the third quarter of the prior year. On a year-to-date basis, these energy partnerships have contributed $4.0 million and $4.7 million for the nine months ended September 30, 2015 and 2014, respectively, to our net investment income. The increase in net investment income on a year-to-date basis was also attributable to the increase in our balance of cash and invested assets which grew 5.9% from $1,302.1 million at September 30, 2014 to $1,378.9 million at September 30, 2015. Additionally net investment income was affected by our positive operating cash flow partially offset by the $70 million dividend we paid on September 30, 2014, which reduced our investable assets, as well as declining portfolio yields. Our annualized gross investment yield on average fixed maturity securities for the three and nine months ended September 30, 2015 was 3.4% and 3.3%, respectively, and the average duration of our portfolio was 3.5 years.

During the third quarter, we recognized $17,000 (seventeen thousand dollars) of pre-tax net realized losses. On a year-to-date basis for 2015, we recognized $2.5 million in pre-tax net realized losses. Included in this amount was $3.4 million in losses during the first quarter of 2015 relating to our energy portfolio, which at September 30, 2015 had a remaining carrying value of $21.0 million and a fair market value of $16.1 million.

Dividend

The Company announced that its Board of Directors declared a cash dividend of $0.16 per common share. This dividend is payable on Monday, December 28, 2015 to all shareholders of record on Monday, December 14, 2015.

Special Dividend

The Company also announced that its Board of Directors declared a cash dividend of $1.00 per common share. This dividend is payable on Monday, December 28, 2015 to all shareholders of record on Monday, December 14, 2015.

Conference Call

James River Group Holdings will hold a conference call to discuss this press release tomorrow, November 5, 2015, at 9:00 a.m. Eastern time. Investors may access the conference call by dialing (877) 930-8055 Conference ID# 17443071 or via the internet by going to www.jrgh.net and clicking on the “Investor Relations” link. Please visit the website at least 15 minutes early to register and download any necessary audio software. A replay will be available shortly after the call and through the end of business on December 4, 2015 at the number and website referenced above.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, intend, project, anticipate, plan, estimate or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.  Although it is not possible to identify all of these risks and factors, they include, among others, the following: losses exceeding reserves; loss of key members of our management or employees; adverse economic factors; a decline in our financial strength; loss of a group of brokers or agents that generate significant portions of our business; losses in our investment portfolio; additional government or market regulation; potentially becoming subject to United States taxation and other risks described in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Non-GAAP Financial Measures

In presenting James River Group Holdings’ results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). Such measures, including underwriting profit, net operating income and return on tangible equity are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. These measures should not be viewed as a substitute for those determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included at the end of this press release.

About James River Group Holdings, Ltd.

James River Group Holdings, Ltd. is a Bermuda-based insurance holding company which owns and operates a group of specialty insurance and reinsurance companies founded by members of our management team. The Company operates in three specialty property-casualty insurance and reinsurance segments: Excess and Surplus Lines, Specialty Admitted Insurance and Casualty Reinsurance. The Company tends to focus on accounts associated with small or medium-sized businesses in each of its segments. Each of the Company’s regulated insurance subsidiaries are rated “A-” (Excellent) with a “positive outlook” by A.M. Best Company.

Visit James River Group Holdings, Ltd. on the web at www.jrgh.net

James River Group Holdings, Ltd. and Subsidiaries
Condensed Consolidated Balance Sheet Data
(Unaudited)
September 30,
2015
December 31,
2014
($ in thousands, except for share amounts)
ASSETS
Invested assets:
Fixed maturity securities, available-for-sale $ 888,480 $ 756,963
Fixed maturity securities, trading 1,251 7,388
Equity securities, available-for-sale 74,453 67,905
Bank loan participations, held-for-investment 213,625 239,511
Short-term investments 50,225 131,856
Other invested assets 74,301 33,622
Total investments 1,302,335 1,237,245
Cash and cash equivalents 76,561 73,383
Accrued investment income 8,281 7,273
Premiums receivable and agents’ balances 197,962 162,527
Reinsurance recoverable on unpaid losses 133,273 127,254
Reinsurance recoverable on paid losses 5,835 1,725
Deferred policy acquisition costs 72,673 60,202
Goodwill and intangible assets 221,509 221,956
Other assets 77,686 67,727
Total assets $ 2,096,115 $ 1,959,292
LIABILITIES AND SHAREHOLDERS’ EQUITY
Reserve for losses and loss adjustment expenses $ 779,009 $ 716,296
Unearned premiums 329,867 277,579
Senior debt 88,300 88,300
Junior subordinated debt 104,055 104,055
Accrued expenses 29,250 31,107
Other liabilities 58,218 54,034
Total liabilities 1,388,699 1,271,371
Total shareholders’ equity 707,416 687,921
Total liabilities and shareholders’ equity $ 2,096,115 $ 1,959,292
Tangible equity $ 485,907 $ 465,965
Tangible equity per common share outstanding $ 16.89 $ 16.33
Total shareholders’ equity per common share outstanding $ 24.59 $ 24.10
Common shares outstanding at end-of-period 28,769,487 28,540,350
Debt to total capitalization ratio 21.4 % 21.9 %
James River Group Holdings, Ltd. and Subsidiaries
Condensed Consolidated Income Statement Data
(Unaudited)
Three Months Ended
September 30,

Nine Months Ended
September 30,

2015 2014 2015 2014
($ in thousands, except for share data)
REVENUES
Gross written premiums $ 148,236 $ 171,415 $ 463,505 $ 415,616
Net written premiums $ 122,928 $ 153,836 $ 390,401 $ 367,618
Net earned premiums $ 122,705 $ 99,989 $ 345,776 $ 286,057
Net investment income 9,510 9,996 34,496 33,189
Net realized investment (losses) gains (17 ) 2,033 (2,473 ) (1,678 )
Other income 925 (201 ) 2,018 740
Total revenues 133,123 111,817 379,817 318,308
EXPENSES
Losses and loss adjustment expenses 66,718 54,486 209,133 171,936
Other operating expenses 43,387 34,114 119,764 98,971
Other expenses 69 2,459 207 2,848
Interest expense 1,769 1,557 5,217 4,661
Amortization of intangible assets 149 149 447 447
Total expenses 112,092 92,765 334,768 278,863
Income before taxes 21,031 19,052 45,049 39,445
Income tax expense (2,070 ) (1,884 ) (4,222 ) (3,626 )
NET INCOME $ 18,961 $ 17,168 $ 40,827 $ 35,819
NET OPERATING INCOME $ 19,177 $ 18,288 $ 43,230 $ 39,639
EARNINGS PER SHARE
Basic $ 0.66 $ 0.60 $ 1.43 $ 1.26
Diluted $ 0.64 $ 0.60 $ 1.40 $ 1.24
NET OPERATING INCOME PER SHARE
Basic $ 0.67 $ 0.64 $ 1.51 $ 1.39
Diluted $ 0.65 $ 0.64 $ 1.48 $ 1.38
Weighted-average common shares outstanding:
Basic 28,735,087 28,540,350 28,608,398 28,540,350
Diluted 29,418,251 28,793,815 29,244,520 28,787,500
Cash dividends declared per common share $ 1.16 $ 2.45 $ 1.48 $ 2.45
Ratios:
Loss ratio 54.4 % 54.5 % 60.5 % 60.1 %
Expense ratio 34.7 % 34.3 % 34.1 % 34.4 %
Combined ratio 89.0 % 88.8 % 94.6 % 94.5 %
James River Group Holdings, Ltd. and Subsidiaries
Segment Results
EXCESS AND SURPLUS LINES
Three Months Ended
September 30,
Nine Months Ended
September 30,
2015 2014 2015 2014
($ in thousands)
Gross written premiums $ 82,249 $ 61,857 $ 235,384 $ 182,544
Net written premiums $ 68,731 $ 51,079 $ 191,951 $ 150,618
Net earned premiums $ 65,804 $ 51,230 $ 178,071 $ 138,313
Losses and loss adjustment expenses (32,853 ) (23,882 ) (101,383 ) (77,362 )
Underwriting expenses (15,904 ) (14,315 ) (46,429 ) (39,020 )
Underwriting profit (a), (b) $ 17,047 $ 13,033 $ 30,259 $ 21,931
Ratios:
Loss ratio 49.9 % 46.6 % 56.9 % 55.9 %
Expense ratio 24.2 % 27.9 % 26.1 % 28.2 %
Combined ratio 74.1 % 74.6 % 83.0 % 84.1 %
(a) See “Reconciliation of Non-GAAP Measures.”
(b) Underwriting results include fee income of $861,000 and $(218,000) for the three months ended September 30, 2015 and 2014, respectively, and $1.8 million and $565,000 for the respective nine month periods.
SPECIALTY ADMITTED INSURANCE
Three Months Ended
September 30,
Nine Months Ended
September 30,
2015 2014 2015 2014
($ in thousands)
Gross written premiums $ 22,898 $ 16,211 $ 61,755 $ 40,447
Net written premiums $ 11,110 $ 9,212 $ 31,751 $ 24,855
Net earned premiums $ 10,743 $ 7,185 $ 30,448 $ 18,847
Losses and loss adjustment expenses (6,448 ) (3,687 ) (18,377 ) (10,274 )
Underwriting expenses (3,833 ) (3,336 ) (11,565 ) (9,451 )
Underwriting profit (loss) (a), (b) $ 462 $ 162 $ 506 $ (878 )
Ratios:
Loss ratio 60.0 % 51.3 % 60.4 % 54.5 %
Expense ratio 35.7 % 46.4 % 38.0 % 50.1 %
Combined ratio 95.7 % 97.7 % 98.3 % 104.7 %
(a) See “Reconciliation of Non-GAAP Measures.”
(b) Underwriting results include fee income of $328,000 and $211,000 for the three months ended September 30,
2015 and 2014, respectively, and $992,000 and $514,000 for the respective nine month periods.
CASUALTY REINSURANCE
Three Months Ended
September 30,
Nine Months Ended
September 30,
2015 2014 2015 2014
($ in thousands)
Gross written premiums $ 43,089 $ 93,347 $ 166,366 $ 192,625
Net written premiums $ 43,087 $ 93,545 $ 166,699 $ 192,145
Net earned premiums $ 46,158 $ 41,574 $ 137,257 $ 128,897
Losses and loss adjustment expenses (27,417 ) (26,917 ) (89,373 ) (84,300 )
Underwriting expenses (18,465 ) (14,640 ) (46,973 ) (44,173 )
Underwriting profit (a) $ 276 $ 17 $ 911 $ 424
Ratios:
Loss ratio 59.4 % 64.7 % 65.1 % 65.4 %
Expense ratio 40.0 % 35.2 % 34.2 % 34.3 %
Combined ratio 99.4 % 100.0 % 99.3 % 99.7 %
(a) See “Reconciliation of Non-GAAP Measures.”

RECONCILIATION OF NON-GAAP MEASURES

The following table reconciles the underwriting profit (loss) by individual operating segment and of the whole Company to consolidated income before taxes. We believe that these measures are useful to investors in evaluating the performance of our Company and its operating segments because our objective is to consistently earn underwriting profits.  We evaluate the performance of our operating segments and allocate resources based primarily on underwriting profit (loss) of operating segments.  Our definition of underwriting profit (loss) of operating segments and underwriting profit (loss) may not be comparable to that of other companies.

Three Months Ended
September 30,
Nine Months Ended
September 30,
2015 2014 2015 2014
($ in thousands)
Underwriting profit (loss) of the operating segments:
Excess and Surplus Lines $ 17,047 $ 13,033 $ 30,259 $ 21,931
Specialty Admitted Insurance 462 162 506 (878 )
Casualty Reinsurance 276 17 911 424
Total underwriting profit of operating segments 17,785 13,212 31,676 21,477
Other operating expenses of the Corporate and
Other segment
(4,324 ) (2,041 ) (12,958 ) (5,762 )
Underwriting profit (a) 13,461 11,171 18,718 15,715
Net investment income 9,510 9,996 34,496 33,189
Net realized investment (losses) gains (17 ) 2,033 (2,473 ) (1,678 )
Other income and expenses (5 ) (2,442 ) (28 ) (2,673 )
Interest expense (1,769 ) (1,557 ) (5,217 ) (4,661 )
Amortization of intangible assets (149 ) (149 ) (447 ) (447 )
Consolidated income before taxes $ 21,031 $ 19,052 $ 45,049 $ 39,445
(a)  Included in underwriting results for the three months ended September 30, 2015 and 2014 is fee income of
$1.2 million and $(7,000), respectively, and $2.8 million and $1.1 million for the respective nine month periods.

We define net operating income as net income excluding net realized investment gains and losses, expenses related to due diligence costs for various merger and acquisition activities, costs associated with our initial public offering, severance costs associated with terminated employees, impairment charges on goodwill and intangible assets and gains on extinguishment of debt. We use net operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance.  Net operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and our definition of net operating income may not be comparable to that of other companies.

Our income before taxes and net income for the three and nine months ended September 30, 2015 and 2014, respectively, reconciles to our net operating income as follows:

Three Months Ended
September 30,
2015 2014
Income
Before
Taxes
Net
Income
Income
Before
Taxes
Net
Income
($ in thousands)
Income as reported $ 21,031 $ 18,961 $ 19,052 $ 17,168
Net realized investment losses (gains) 17 63 (2,033 ) (1,420 )
Other expenses 69 45 2,459 (a) 2,434
Interest expense on leased building the
Company is deemed to own for
accounting purposes
166 108 163 106
Net operating income $ 21,283 $ 19,177 $ 19,641 $ 18,288
Nine Months Ended
September 30,
2015 2014
Income
Before
Taxes
Net
Income
Income
Before
Taxes
Net
Income
($ in thousands)
Income as reported $ 45,049 $ 40,827 $ 39,445 $ 35,819
Net realized investment losses 2,473 1,946 1,678 723
Other expenses 207 135 2,848 (a) 2,775
Interest expense on leased building the
Company is deemed to own for accounting
purposes
496 322 495 322
Net operating income $ 48,225 $ 43,230 $ 44,466 $ 39,639
(a)  Principally costs of the initial public offering.

We define tangible equity as the sum of shareholders’ equity less goodwill and intangible assets (net of amortization).  Our definition of tangible equity may not be comparable to that of other companies, and it should not be viewed as a substitute for shareholders’ equity calculated in accordance with GAAP.  We use tangible equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure. The following table reconciles shareholders’ equity to tangible equity for September 30, 2015, June 30, 2015 and December 31, 2014.

September 30, June 30, December 31,
2015 2015 2014
Shareholders’ equity $ 707,416 $ 692,185 $ 687,921
Less:  Goodwill and intangible assets 221,509 221,658 221,956
Tangible equity $ 485,907 $ 470,527 $ 465,965

For more information contact:

Robert Myron
President and Chief Operating Officer
1-441-278-4583
InvestorRelations@jrgh.net
Click Here for More Information »

James River Group Holdings, Ltd. (NASDAQ:JRVR) Announces Dates for Its 2015 Third Quarter Earnings Release and Conference Call

CaribPR Wire, PEMBROKE, Bermuda, Oct. 13, 2015: James River Group Holdings, Ltd. (NASDAQ:JRVR) announced today it will release its earnings for the quarter and year-to-date ended September 30, 2015 after the market closes on Wednesday November 4, 2015. The Company will also host a conference call to discuss its results with analysts and investors on Thursday, November 5, 2015 beginning at 9:00am (Eastern Standard Time).

Investors may access the conference call by dialing (877) 930-8055, conference ID# 17443071, or via the internet by going to www.jrgh.net and clicking on the “Investor Relations” link. Please visit the website at least 15 minutes early to register, download and install any necessary audio software. A replay of the call will be available at both the number above and the website until the close of business on December 4, 2015.

About James River Group Holdings, Ltd.

James River Group Holdings, Ltd. is a Bermuda-based insurance holding company which owns and operates a group of specialty insurance and reinsurance companies founded by members of our management team. The company operates in three specialty property-casualty insurance and reinsurance segments: Excess and Surplus Lines, Specialty Admitted Insurance and Casualty Reinsurance. The company tends to focus on accounts associated with small or medium-sized businesses in each of its segments. Each of the Company’s regulated insurance subsidiaries are rated “A-” (Excellent) with a “positive outlook” by A.M. Best Company.

Visit James River Group Holdings, Ltd. on the web at www.jrgh.net


James River Group Holdings, Ltd. (NASDAQ:JRVR)  Anuncia las Fechas de la Publicación de sus Ganancias del Tercer  Trimestre de 2015 y de la Conferencia Telefónica

CaribPR Wire, PEMBROKE, Bermudas, Oct.  14, 2015 — James River  Group Holdings, Ltd. (NASDAQ:JRVR) anunció hoy que publicará las  ganancias del trimestre y del año hasta la fecha que finalizaron el 30  de septiembre de 2015 luego del cierre del mercado el miércoles, 4 de  noviembre de 2015. El jueves, 5 de noviembre de 2015, a partir de las  9.00 a. m. (hora estándar del este), la compañía ofrecerá una  conferencia telefónica para analizar los resultados con analistas e  inversionistas.

Los inversionistas pueden participar en la  conferencia llamando al (877) 930-8055; el número de identificación de  la conferencia es el 17443071. O bien a través de Internet en www.jrgh.net haciendo clic en el enlace “Investor Relations” (Relaciones con los  inversionistas). Ingrese al sitio web al menos 15 minutos antes del  evento para inscribirse y descargar e instalar el software de audio  necesario. La repetición de la conferencia estará disponible en el  número de teléfono y en el sitio web antes mencionados hasta el cierre  de la jornada el 4 de diciembre de 2015.

Acerca de James River Group Holdings, Ltd James  River Group Holdings, Ltd. es un holding empresarial de seguros con  sede en las Bermudas que posee y opera un grupo de compañías  especializadas de seguros y reaseguros fundadas por miembros de nuestro  equipo gerencial. La compañía opera en tres segmentos especializados de  seguros y reaseguros de responsabilidad y patrimoniales: líneas de  excesos y excedentes, seguros de productos especiales admitidos y  reaseguros de responsabilidad. En cada uno de los segmentos, la compañía  tiende a enfocarse en cuentas asociadas con pequeñas y medianas  empresas. A.M. Best Company calificó con “A-” (excelente) y una  “perspectiva positiva” a cada una de las subsidiarias de seguro  reguladas de la compañía.

Visite el sitio web de James River Group Holdings, Ltd. en www.jrgh.net.

Para obtener más información, comuníquese con:

Robert Myron

Presidente y director de Operaciones

InvestorRelations@jrgh.net

Click Here for More Information »

Mutual of America Life Insurance Company Appoints Howard University President Dr. Wayne A. I. Frederick to its Board of Directors

NEW YORK, Oct. 6, 2015 /PRNewswire-HISPANIC PR WIRE/ — Mutual of America Life Insurance Company, which specializes in providing retirement products and related services to organizations and their employees, as well as to individuals, announced the appointment of Dr. Wayne A. I. Frederick to its Board of Directors.

Logo – http://photos.prnewswire.com/prnh/20121115/NY13778LOGO

A native of Port of Spain, Trinidad, Dr. Frederick is the 17th President of Howard University in Washington D.C., a world-renowned academic and research institution committed to academic excellence and access to an affordable education. Prior to his appointment as President, he served as Interim President, Provost and Chief Academic Officer, Associate Dean in the College of Medicine, Division Chief in the Department of Surgery, Director of the Cancer Center and Deputy Provost for Health Sciences.

“I am delighted that Dr. Frederick has joined the Company’s Board of Directors,” said Thomas Moran, Chairman and CEO of Mutual of America. “His leadership and extensive experience in the education and healthcare sectors, keen understanding of the challenges facing our country and dedicated service to ensure the betterment of society, will be an asset to the Company as we continue our commitment to help individuals plan for a financially secure future.”

A triple alumnus of Howard University, Dr. Frederick earned a Bachelor of Science and a Doctor of Medicine and completed his surgical residency training at Howard University Hospital. He also earned a Master of Business Administration. He began his academic career as Associate Director of the Cancer Center at University of Connecticut, where he also served on the Department of Surgery faculty, before returning to Howard University in 2006.

As a distinguished researcher and surgeon, Dr. Frederick is the author of numerous peer-reviewed works. He has received many awards honoring his outstanding scholarship and service. In June 2014, the United States Congress recognized him for his contributions in addressing health disparities among African-Americans and historically underrepresented groups by awarding him the Congressional Citation for Distinguished Service.

About Mutual of America

Since 1945, Mutual of America has remained committed to offering plan sponsors, plan participants and individuals carefully selected, quality products and services at a competitive price as well as the personal attention they need to help build and preserve assets for a financially secure future. For more information, visit mutualofamerica.com.

CONTACT: Kieran O’Dwyer, 212-224-1743

Click Here for More Information »

James River Group Holdings informa ingresos operativos netos de 12,4 millones de USD o 0,42 USD por acción diluida durante el segundo trimestre

INGRESOS OPERATIVOS NETOS DEL AÑO HASTA LA FECHA DE 24,1 MILLONES DE USD O 0,82 USD POR ACCIÓN DILUIDA

CRECIMIENTO DEL 13,6 % Y EL 12,7 % EN LAS GANANCIAS OPERATIVAS DURANTE EL SEGUNDO TRIMESTRE Y DEL AÑO HASTA LA FECHA, RESPECTIVAMENTE

CRECIMIENTO DEL 30,9 % Y EL 26,9 % EN LAS PRIMAS BRUTAS EMITIDAS DEL SEGMENTO DE LÍNEAS DE EXCESOS Y EXCEDENTES DURANTE EL SEGUNDO TRIMESTRE Y DEL AÑO HASTA LA FECHA, RESPECTIVAMENTE

DECLARA DIVIDENDOS TRIMESTRALES DE 0,16 USD POR ACCIÓN

CaribPR Wire, PEMBROKE, Bermudas, 7 de agosto de 2015: James River Group Holdings, Ltd. (NASDAQ:JRVR) anunció hoy los resultados financieros del segundo trimestre y los seis meses que finalizaron el 30 de junio de 2015.

Los factores significativos que se deben tener en cuenta a la hora de evaluar el segundo trimestre de 2015 incluyen los siguientes:

  • Cada uno de los segmentos operativos de la compañía generó ganancias de seguros.
  • Ingresos netos por inversiones de 13,0 millones de USD durante el segundo trimestre de 2015 en comparación con los 10,7 millones de USD generados durante el mismo período de 2014.
  • Ingresos operativos netos de 12,4 millones de USD en 2015 en comparación con los 10,9 millones de USD del año anterior.
  • Ganancias operativas por acción diluida de 0,42 USD en comparación con los 0,38 USD del año anterior.
  • Ingresos netos de 12,5 millones de USD en el segundo trimestre de 2015 en comparación con los 9,5 millones de USD del año anterior.
  • Ganancias por acción totalmente diluidas de 0,43 USD en comparación con los 0,33 USD del año anterior.
  • Aumento global del 89,8 % en las primas brutas emitidas, de 97,0 millones de USD en primas brutas emitidas durante el segundo trimestre de 2014 a 184,0 millones de USD, que se logró de la siguiente manera:
    • Crecimiento del 30,9 % de nuestro segmento de líneas de excesos y excedentes, de 59,1 millones de USD durante el segundo trimestre de 2014 a 77,4 millones de USD. Nuestro segmento de líneas de excesos y excedentes está encaminado para alcanzar un crecimiento sustancial este año.
    • Crecimiento del 42,8 % en nuestro segmento de seguros de productos especiales admitidos, de 12,6 millones de USD en el año 2014 a 17,9 millones de USD. Nuestro segmento de seguros de productos especiales admitidos continúa progresando en relación con la creación de su programa y las transacciones “fronting”, mientras que su registro de indemnizaciones tradicionales para los trabajadores continúa creciendo también.
    • Crecimiento declarado del 250,9 % en el segmento de reaseguros de responsabilidad, de 25,3 millones de USD en 2014 a 88,7 millones de USD. Este crecimiento se debe principalmente a la oportunidad del momento, ya que la renovación de contratos por expirar se realizó fuera de cronograma. Esperamos que las primas brutas emitidas anuales del segmento de reaseguros de responsabilidad se mantengan sin variaciones durante el año calendario 2015 en comparación con aquellas del año anterior.
  • Un índice combinado del 97,8 % en comparación con el 96,7 % del año anterior.
  • Un aumento global de las primas netas emitidas del 93,8 % durante el trimestre, de 81,9 millones de USD durante el segundo trimestre del año 2014 a 158,8 millones de USD.

Los factores significativos que se deben tener en cuenta a la hora de evaluar el período de seis meses que finalizó el 30 de junio de 2015 incluyen los siguientes:

  • Cada uno de los segmentos operativos de la compañía generó ganancias de seguros.
  • Ingresos netos por inversiones de 25,0 millones de USD en comparación con los 23,2 millones de USD durante el mismo período de 2014.
  • Ingresos operativos netos de 24,1 millones de USD en 2015 en comparación con los 21,4 millones de USD del año anterior.
  • Ganancias operativas por acción diluida de 0,82 USD en comparación con los 0,74 USD del año anterior.
  • Ingresos netos de 21,9 millones de USD en 2015 en comparación con los 18,7 millones de USD del año anterior.
  • Ganancias por acción totalmente diluidas de 0,75 USD en comparación con los 0,65 USD del año anterior.
  • Aumento global del 29,1 % en las primas brutas emitidas, de 244,2 millones de USD a 315,3 millones de USD que se logró de la siguiente manera:
    • Un crecimiento del 26,9 % de nuestro segmento de líneas de excesos y excedentes, de 120,7 millones de USD durante los seis primeros meses de 2014 a 153,1 millones de USD.
    • Un crecimiento del 60,3 % de nuestro segmento de seguros de productos especiales admitidos, de 24,2 millones de USD en 2014 a 38,9 millones de USD.
    • Crecimiento del 24,2 % en el segmento de reaseguros de responsabilidad, de 99,3 millones de USD en 2014 a 123,3 millones de USD. Este crecimiento se debe principalmente a la oportunidad del momento, ya que la renovación de contratos por expirar se realizó fuera de cronograma. Esperamos que las primas brutas emitidas anuales del segmento de reaseguros de responsabilidad se mantengan sin variaciones durante el año calendario 2015.
  • Un índice combinado del 97,6 %, igual al del año anterior.
  • Un aumento global de las primas netas emitidas del 25,1 % durante los primeros seis meses de 2015, de 213,8 millones de USD durante la primera mitad de 2014 a 267,5 millones de USD.

El valor del capital tangible disminuyó un 1,1 % durante el segundo trimestre de 2015, de 475,7 millones de USD el 31 de marzo de 2015 a 470,5 millones de USD el 30 de junio de 2015. Esto se debió principalmente a una disminución de 15,0 millones de USD en otros ingresos globales acumulados (es decir, ganancias no realizadas en nuestra cartera de inversión) que disminuyeron de 22,3 millones de USD el 31 de marzo de 2015 a 7,3 millones de USD el 30 de junio de 2015. También se debió al pago de un dividendo de 4,6 millones de USD durante el trimestre, que fue compensado parcialmente por los ingresos netos del trimestre. La disminución de las ganancias no realizadas fue causada principalmente por el cambio en las tasas de interés del mercado.

En cuanto al desempeño anual hasta la fecha, nuestro valor contable tangible aumentó un 1,0 %, de 466,0 millones de USD el 31 de diciembre de 2014 a 470,5 millones de USD el 30 de junio de 2015. Este aumento se debió principalmente a ingresos netos de 21,9 millones de USD, contrarrestados por una disminución de 11,1 millones de USD en otros ingresos globales acumulados, de 18,4 millones de USD el 31 de diciembre de 2014 a 7,3 millones de USD el 30 de junio de 2015. También se debió al pago de dividendos de 9,2 millones de USD en 2015.

J. Adam Abram, presidente y director ejecutivo, afirmó: “Estamos complacidos con los resultados. Cada uno de nuestros segmentos generó ganancias de seguros durante el trimestre y para el período de seis meses. Estamos disfrutando del crecimiento sólido de nuestro segmento de líneas de excesos y excedentes que, tradicionalmente, ha sido una fuente de ganancias de seguro para nuestro grupo. Comenzamos la segunda mitad del año confiando en las perspectivas de que el grupo genere ganancias de seguro sólidas”.

“También estamos satisfechos con los resultados de nuestras inversiones en este trimestre. Durante este período, nos beneficiamos de manera significativa del aumento de los valores de mercado de las inversiones de capital que realizamos en relación con los proyectos de energía renovable”.

“En línea con el énfasis de nuestra Junta Directiva en relación con la administración y el uso eficiente del capital, los directores votaron por la declaración de un dividendo de 0,16 USD por acción, que se pagará el 30 de septiembre de 2015”.

Las ganancias operativas netas por acción diluida del segundo trimestre de 2015 fueron de 0,42 USD por acción, sin incluir los 116.000 USD (menos de 0,01 USD por acción) de los costos antes de impuestos relacionados con las ganancias y pérdidas realizadas, y otros gastos no operativos. Este monto se compara con los 0,38 USD generados durante el mismo período de 2014. En cuanto a las ganancias anuales hasta la fecha, las ganancias operativas netas por acción diluida del año 2015 fueron de 0,82 USD por acción, sin incluir 0,07 USD por acción de los costos relacionados con las ganancias y pérdidas realizadas, y otros gastos no operativos. Este monto puede compararse con los 0,74 USD del mismo período de 2014.

Las ganancias por acción totalmente diluidas en el segundo trimestre de 2015 fueron de 0,43 USD, que pueden compararse con los 0,33 USD por acción generados durante el mismo período de 2014. En cuanto a las ganancias anuales hasta la fecha, las ganancias por acción totalmente diluidas en el año 2015 fueron de 0,75 USD por acción. Este monto puede compararse con los 0,65 USD del mismo período de 2014.

El índice combinado de la compañía durante el segundo trimestre de 2015 fue del 97,8 % (compuesto por un índice de pérdidas del 64,0 % y un índice de gastos del 33,8 %). Este puede compararse con el índice combinado del 96,7 % (compuesto por un índice de pérdidas del 63,2 % y un índice de gastos del 33,4 %) del año anterior. En cuanto a las ganancias anuales hasta la fecha, el índice combinado de la compañía en el año 2015 fue del 97,6 % (compuesto por un índice de pérdidas del 63,8 % y un índice de gastos del 33,8 %). Este puede compararse con el índice combinado del 97,6 % (compuesto por un índice de pérdidas del 63,1 % y un índice de gastos del 34,4 %).

Los resultados del trimestre que finalizó el 30 de junio de 2015 incluyen un desarrollo favorable de las reservas de 2,5 millones de USD respecto de los años de siniestros anteriores. Esto representó 2,4 puntos de nuestro índice de pérdidas y nuestro índice combinado, respectivamente, que puede compararse con un desarrollo favorable de las reservas de 2,7 millones de USD del año anterior, que representó 2,7 puntos de nuestro índice de pérdidas y nuestro índice combinado, respectivamente. El desarrollo favorable de las reservas para el trimestre es de 2,1 millones de USD después de impuestos (2,2 millones de USD el año anterior). Los parámetros anuales hasta la fecha para el año 2015 incluyen un desarrollo favorable de las reservas de 5,0 millones de USD respecto de los años de siniestros anteriores (o 4,1 millones de USD después de impuestos), que representó 2,2 puntos de nuestro índice de pérdidas y del índice combinado, respectivamente. En el año 2014, el desarrollo favorable de las reservas fue de 3,7 millones de USD (o 3,0 millones de USD después de impuestos), que representó 2,0 puntos de nuestro índice de pérdidas y del índice combinado, respectivamente.

El ligero aumento en el índice de gastos globales durante el segundo trimestre de 2015 en comparación con el índice durante el mismo período del año anterior (33,8 % en 2015 frente a 33,4 % durante el año anterior) se debió principalmente al aumento de los costos de ser una compañía pública, compensados por un aumento del 9,3 % de nuestras primas percibidas durante el trimestre, de 97,0 millones de USD en 2014 a 106,1 millones de USD en el año 2015. El índice de gastos globales disminuyó durante el período de seis meses que finalizó el 30 de junio de 2015 (hasta un 33,8 % en el año 2015 contra el 34,4 % del año anterior) como consecuencia del aumento del 19,9 % en las primas percibidas, de 186,1 millones de USD en 2014 a 223,1 millones de USD en el año 2015, contrarrestado por el aumento de los costos de ser una compañía pública.

El índice combinado del segmento de líneas de excesos y excedentes, compuesto por un índice de pérdidas del 61,8 % y un índice de gastos del 27,3 %, fue de 89,1 % durante el segundo trimestre de 2015. El año anterior, el índice combinado de este segmento fue de 88,5 % durante el segundo trimestre, compuesto por un índice de pérdidas de 61,3 % y un índice de gastos de 27,3 %. En cuanto a los porcentajes anuales hasta la fecha, el índice combinado del segmento de líneas de excesos y excedentes fue de 88,2 %, compuesto por un índice de pérdidas de 61,0 % y un índice de gastos de 27,2 %. El año anterior, el índice combinado de este segmento fue de 89,8 %, compuesto por un índice de pérdidas de 61,4 % y un índice de gastos de 28,4 %. Durante el segundo trimestre, registramos un desarrollo favorable de las reservas de 3,4 millones de USD antes de impuestos, que representó 6,5 puntos de nuestro índice de pérdidas y nuestro índice combinado, respectivamente. Durante el mismo período de 2014, registramos un desarrollo favorable de las reservas de 3,9 millones de USD antes de impuestos, que representó 8,7 puntos de nuestro índice de pérdidas y nuestro índice combinado, respectivamente. Los parámetros anuales hasta la fecha para el año 2015 incluyen un desarrollo favorable de las reservas de 8,4 millones de USD respecto de los años de siniestros anteriores, que representó 7,5 puntos de nuestro índice de pérdidas y del índice combinado, respectivamente. Durante el año 2014, este desarrollo favorable de las reservas fue de 6,3 millones de USD, que representó 7,2 puntos de nuestro índice de pérdidas y del índice combinado, respectivamente.

El índice combinado del segmento de seguros de productos especiales admitidos, compuesto por un índice de pérdidas del 60,4 % y un índice de gastos del 37,6 %, fue de 98,0 % durante el segundo trimestre de 2015. El año anterior, el índice combinado de este segmento fue de 106,9 %, compuesto por un índice de pérdidas de 57,6 % y un índice de gastos de 49,3 %. En cuanto a los porcentajes anuales hasta la fecha, el índice combinado del segmento de seguros de productos especiales admitidos, compuesto por un índice de pérdidas de 60,5 % y un índice de gastos de 39,2 %, fue de 99,8 %. El año anterior, el índice combinado de este segmento fue de 108,9 %, compuesto por un índice de pérdidas de 56,5 % y un índice de gastos de 52,4 %. Durante el segundo trimestre, registramos un desarrollo favorable de las reservas de 189.000 USD antes de impuestos, que representó 1,9 puntos de nuestro índice de pérdidas y nuestro índice combinado, respectivamente. Durante el mismo período de 2014, registramos un desarrollo favorable de las reservas de 789.000 USD antes de impuestos, que representó 12,1 puntos de nuestro índice de pérdidas y nuestro índice combinado, respectivamente. Los parámetros anuales hasta la fecha para el año 2015 incluyen un desarrollo favorable de las reservas de 196.000 USD respecto de los años de siniestros anteriores, que representó 1,0 puntos de nuestro índice de pérdidas y del índice combinado, respectivamente. Durante el año 2014, este segmento tuvo un desarrollo favorable de las reservas de 1,1 millones de USD, que representó 9,2 puntos de nuestro índice de pérdidas y del índice combinado, respectivamente. El índice de gastos anual hasta la fecha y del segundo trimestre de 2015, de 39,2 % y 37,6%, respectivamente, ha comenzado a evidenciar las consecuencias del crecimiento exitoso de los programas y de las transacciones “fronting”, con un aumento global de las primas percibidas en este segmento. Durante el mismo período del año anterior, el índice de gastos fue del 52,4 % y del 49,3%, respectivamente.

El índice combinado del segmento de reaseguros de responsabilidad, compuesto por un índice de pérdidas del 67,6 % y un índice de gastos del 31,0 %, fue de 98,6% durante el segundo trimestre de 2015. El año anterior, el índice combinado de este segmento fue del 99,2 %, compuesto por un índice de pérdidas del 66,0 % y un índice de gastos del 33,2 %. En cuanto a los porcentajes anuales hasta la fecha, el índice combinado del segmento de reaseguros de responsabilidad, compuesto por un índice de pérdidas de 68,0 % y un índice de gastos de 31,3 %, fue de 99,3 %. El año anterior, el índice combinado de este segmento fue de 99,5 %, compuesto por un índice de pérdidas de 65,7 % y un índice de gastos de 33,8 %. Durante el segundo trimestre, registramos un desarrollo desfavorable de las reservas de 1,1 millones de USD, que representó (2,6) puntos del índice de pérdidas y del índice combinado, respectivamente. El año anterior, registramos un desarrollo desfavorable de las reservas de 2,0 millones de USD, que representó (4,5) puntos del índice de pérdidas y del índice combinado, respectivamente. Los parámetros anuales hasta la fecha para el año 2015 incluyen un desarrollo desfavorable de las reservas de 3,6 millones de USD respecto de los años de siniestros anteriores, que representó (3,9) puntos de nuestro índice de pérdidas y del índice combinado, respectivamente. Durante el año 2014, este desarrollo desfavorable de las reservas fue de 3,6 millones de USD, que representó (4,1) puntos de nuestro índice de pérdidas y del índice combinado, respectivamente.

El aumento de las primas brutas emitidas en este segmento durante el segundo trimestre de 2015 se debió principalmente a la renovación de dos contratos:

  • Un contrato renovado como parte de un tratado de 15 meses durante el primer trimestre de 2014 fue renovado durante el segundo trimestre de 2015. Este contrato contribuyó 36,7 millones de USD a las primas brutas emitidas de este segmento durante el primer trimestre de 2014 y 27,4 millones de USD durante el segundo trimestre de 2015.; y
  • Otro contrato renovado durante el tercer trimestre de 2014 fue renovado durante el segundo trimestre de 2015. Este contrato contribuyó 25,0 millones de USD a las primas brutas emitidas de este segmento durante el tercer trimestre de 2014 y 16,0 millones de USD durante el segundo trimestre de 2015.

Los ingresos netos por inversiones durante el segundo trimestre de 2015 fueron de 13,0 millones de USD en comparación con los 10,7 millones obtenidos durante el mismo período de 2014. En cuanto al desempeño anual hasta la fecha, los ingresos netos por inversiones del año 2015 fueron de 25,0 millones de USD en comparación con los 23,2 millones de USD obtenidos durante el mismo período de 2014. Estos aumentos de los ingresos netos por inversiones pueden atribuirse a un aumento del valor de mercado de nuestras inversiones en ciertas asociaciones relacionadas con energías renovables llevadas a cabo durante el segundo trimestre. Las inversiones alcanzaron un valor de 2,2 millones de USD en comparación con los 724.000 USD del año anterior (4,6 millones y 4,0 millones de USD durante el período de seis meses que finalizó el 30 de junio de 2015 y 2014, respectivamente). Además, el aumento de los ingresos netos por inversiones puede atribuirse a un flujo de caja operativo positivo, según lo demuestra el aumento en nuestro saldo en efectivo y de activos invertidos, que aumentó un 4,9 % y un 2,1 %, de 1.276,1 millones de USD el 30 de junio de 2014 y 1.310,6 millones de USD el 31 de diciembre de 2014, respectivamente, a 1.338,6 millones el 30 de junio de 2015. El dividendo de 70 millones de USD que pagamos el 30 de septiembre de 2014 compensó este aumento, al tiempo que redujo nuestros activos invertibles y el rendimiento de la cartera. Nuestro rendimiento bruto anualizado de inversiones sobre los valores de vencimiento fijo promedio para los períodos de tres y seis meses que finalizaron el 30 de junio de 2015 fue de 3,4 % y 3,2 %, respectivamente, mientras que la duración promedio de nuestra cartera fue de 3,5 años.

Durante el segundo trimestre, registramos ganancias realizadas netas por un total de 350.000 USD antes de impuestos. En cuanto a las ganancias anuales del año 2015 hasta la fecha, registramos ganancias realizadas netas por un total de 2,5 millones de USD. Este monto incluye los 3,4 millones de USD en pérdidas durante el primer trimestre de 2015 en relación con el segmento energético de nuestra cartera. Al 30 de junio de 2015, esta tenía un valor contable residual de 24,5 millones de USD y un valor de mercado de 22,8 millones de USD.

Dividendos

La compañía también anunció que su Junta Directiva declaró un dividendo en efectivo de 0,16 USD por acción ordinaria. Este dividendo se pagará el miércoles, 30 de septiembre de 2015 a todos los accionistas que se encuentren registrados el lunes, 14 de septiembre de 2015.

Conferencia telefónica

James River Group Holdings llevará a cabo una conferencia telefónica para hablar sobre este comunicado de prensa mañana, 6 de agosto de 2015, a las 9.00 a. m., hora del este. Los inversionistas pueden participar en la conferencia llamando al (877) 930-8055; el número de identificación de la conferencia es el 59295869. O bien a través de Internet en www.jrgh.net, haciendo clic en el enlace “Investor Relations” (Relaciones con los inversionistas). Ingrese al sitio web por lo menos 15 minutos antes del evento para inscribirse, y descargar e instalar el software de audio necesario. La repetición estará disponible poco después de la finalización de la conferencia y hasta el momento de cierre de la jornada del 6 de septiembre de 2015 en el número de teléfono y en el sitio web antes mencionados.

Declaraciones a futuro

Este comunicado de prensa contiene proyecciones, según la definición del término establecida en la Ley de Reforma de Litigios sobre Valores Privados (Private Securities Litigation Reform Act) de 1995. En algunas ocasiones, estas proyecciones pueden  identificarse por el uso de términos tales como “creer”, “esperar”, “buscar”, “poder”, “será”, “pretender”, “proyectar”, “anticipar” “planificar”, “estimar” u otras palabras similares. Las proyecciones implican riesgos e incertidumbres que podrían causar que los resultados reales difieran significativamente de aquellos previstos por estas. Si bien no es posible identificar todos estos riegos y factores, estos incluyen los siguientes, entre otros: pérdidas que excedan las reservas, pérdida de empleados o de miembros de la gerencia claves, factores económicos adversos, disminución de nuestra capacidad financiera, pérdida de un grupo de corredores o agentes que representan una parte importante de nuestro negocio, pérdida de nuestra cartera de inversiones, reglamentaciones gubernamentales o del mercado adicionales, posibilidad de quedar sujetos a impuestos estadounidenses y otros riesgos descritos en los documentos presentados por la compañía ante la Comisión de Bolsa y Valores. Estas proyecciones son válidas únicamente a la fecha de este comunicado y no asumimos ninguna obligación de actualizar o revisar la información de cualquiera de estas proyecciones para reflejar cambios en las suposiciones, eventos imprevistos o cualquier otra situación.

Índices que no se ajustan a los principios de contabilidad generalmente aceptados

Al presentar los resultados de James River Group Holding, la gerencia incluyó índices financieros que no se calculan de acuerdo con los estándares o las reglas comprendidos en los principios de contabilidad generalmente aceptados (Generally Accepted Accounting Principles, GAAP) en Estados Unidos. Estos índices, que incluyen las ganancias de seguros, los ingresos operativos netos y el rendimiento sobre el capital tangible, se denominan índices financieros no ajustados a los principios de contabilidad generalmente aceptados. Es posible que otras compañías definan o calculen estos índices de manera diferente. No debe considerarse que estos índices sustituyen aquellos establecidos de acuerdo con los GAAP. Al final de este comunicado se incluye la conciliación de estos índices con los índices GAAP más similares.

Acerca de James River Group Holdings, Ltd.

James River Group Holdings, Ltd. es un holding empresarial de seguros con sede en las Bermudas que posee y opera un grupo de compañías especializadas de seguros y reaseguros fundadas por miembros de nuestro equipo gerencial. La compañía opera en tres segmentos especializados de seguros y reaseguros de responsabilidad y patrimoniales: líneas de excesos y excedentes, seguros de productos especiales admitidos y reaseguros de responsabilidad. En cada uno de los segmentos, la compañía tiende a enfocarse en cuentas asociadas con pequeñas y medianas empresas. A.M. Best Company calificó con “A-” (excelente) y una “perspectiva positiva” a cada una de las subsidiarias de seguro reguladas de la compañía.

Visite el sitio web de James River Group Holdings, Ltd. en www.jrgh.net

See attached PDF for full financial tables.

CONTACTO: Robert Myron

President and Chief Operating Officer

1-441-278-4583

InvestorRelations@jrgh.net


Click Here for More Information »

James River Group Holdings Reports Second Quarter Net Operating Income of $12.4 Million or $0.42 Per Diluted Share

YEAR-TO-DATE NET OPERATING INCOME OF $24.1 MILLION OR $0.82 PER DILUTED SHARE

13.6% AND 12.7% GROWTH IN OPERATING EARNINGS FOR THE SECOND QUARTER AND YEAR-TO-DATE, RESPECTIVELY

30.9% AND 26.9% GROWTH IN EXCESS & SURPLUS LINES SEGMENT GROSS WRITTEN PREMIUMS FOR THE SECOND QUARTER AND YEAR-TO-DATE, RESPECTIVELY

DECLARES A $0.16 PER SHARE QUARTERLY DIVIDEND

CaribPR Wire, PEMBROKE, Bermuda, Aug. 5, 2015: James River Group Holdings, Ltd. (NASDAQ:JRVR) today announced financial results for the second quarter and six months ended June 30, 2015.

Significant factors to consider when evaluating the second quarter of 2015 include:

– Each of the Company’s operating segments made an underwriting profit;

– Net investment income of $13.0 million in the second quarter of 2015, compared to $10.7 million for the same period of 2014;

– Net operating income in 2015 of $12.4 million compared to $10.9 million in the prior year;

– Diluted operating earnings per share of $0.42 compared to $0.38 in the prior year;

– Net income for the second quarter of 2015 was $12.5 million compared to $9.5 million in the prior year;

– Fully diluted earnings per share of $0.43 compared to $0.33 in the prior year;

– Overall increase in gross written premiums of 89.8% to $184.0 million from $97.0 million in gross written premiums in the second quarter of 2014 as follows:

– Growth in our Excess and Surplus Lines segment of 30.9% to $77.4 million from $59.1 million in the second quarter of 2014. Our Excess and Surplus Lines segment is on track to show substantial growth for the year;

– Growth in our Specialty Admitted Insurance segment of 42.8% to $17.9 million from $12.6 million in 2014. Our Specialty Admitted segment continues to make progress in building out its program and fronting businesses, and its traditional workers’ compensation book is growing as well;

– Reported growth in our Casualty Reinsurance segment of 250.9% to $88.7 million from $25.3 million in 2014. This growth is mainly a matter of timing as expiring contracts were renewed out of sequence. We anticipate annual gross written premium for the Casualty Reinsurance segment to be flat for calendar year 2015 when compared to the prior year;

– A combined ratio of 97.8% compared to 96.7% in the prior year; and

– An overall increase in net written premium for the quarter of 93.8% to $158.8 million compared to $81.9 million in the second quarter of 2014.

Significant factors to consider when evaluating the six-month period ended June 30, 2015, include:

– Each of the Company’s operating segments made an underwriting profit;

– Net investment income of $25.0 million, compared to $23.2 million in the same period in 2014;

– Net operating income in 2015 of $24.1 million compared to $21.4 million in the prior year;

– Diluted operating earnings per share of $0.82 compared to $0.74 in the prior year;

– Net income in 2015 of $21.9 million compared to $18.7 million in the prior year;

– Fully diluted earnings per share of $0.75 compared to $0.65 in the prior year;

– Overall increase in gross written premiums of 29.1% to $315.3 million from $244.2 million in gross written premiums as follows:

– Growth in our Excess and Surplus Lines segment of 26.9% to $153.1 million from $120.7 million for the first six months of 2014;

– Growth in our Specialty Admitted Insurance segment of 60.3% to $38.9 million from $24.2 million in 2014; and

– Growth in our Casualty Reinsurance segment of 24.2% to $123.3 million from $99.3 million in 2014. This growth is mainly a matter of timing as expiring contracts were renewed out of sequence. We anticipate annual gross written premium for the Casualty Reinsurance segment will be flat for calendar year 2015;

– A combined ratio of 97.6% equal to that of the prior year; and

– An overall increase in net written premium for the first six months of 2015 of 25.1% to $267.5 million compared to $213.8 million in the first half of 2014.

Tangible equity value decreased 1.1% for the second quarter of 2015 from $475.7 million at March 31, 2015 to $470.5 million at June 30, 2015. This was primarily due to a decrease in accumulated other comprehensive income (i.e. unrealized gains in our investment portfolio) which decreased $15.0 million from $22.3 million at March 31, 2015 to $7.3 million at June 30, 2015 as well as the dividend of $4.6 million paid during the quarter, partially offset by net income in the quarter. The decrease in unrealized gains was primarily driven by the change in market rates of interest.

On a year-to-date basis, our tangible book value increased 1.0% from $466.0 million at December 31, 2014 to $470.5 million at June 30, 2015. This increase was primarily due to our net income of $21.9 million offset by a decrease in accumulated other comprehensive income which decreased $11.1 million from $18.4 million at December 31, 2014 to $7.3 million at June 30, 2015 as well as the $9.2 million of dividends paid during 2015.

J. Adam Abram, Chairman and Chief Executive Officer, said, “We are pleased with our results. Each of our segments earned an underwriting profit in the quarter and for the six-month period. We are enjoying solid growth in our Excess and Surplus Lines segment, which has traditionally been a source of substantial underwriting profits for our group. We enter the second half of the year confident about the group’s prospects for solid underwriting profits.”

“We are also pleased with our investment results for the quarter. We benefited significantly this quarter from increases in the market value of equity investments we have made in renewable energy projects.”

“In keeping with our Board’s emphasis on capital efficiency and management, the Directors voted to declare a dividend of $0.16 per share to be paid September 30, 2015.”

Net operating earnings per diluted share for the second quarter of 2015 were $0.42 per share and excluded $116,000 (less than $.01 per share) of pre-tax costs related to realized gains and losses and other non-operating expenses. This amount compares to $0.38 for the same period in 2014. On a year-to-date basis, net operating earnings per diluted share for 2015 were $0.82 per share and excluded $0.07 per share of costs related to realized gains and losses and other non-operating expenses. This amount compares to $0.74 for the same period in 2014.

Fully diluted earnings per share for the second quarter of 2015 were $0.43 which compares to the $0.33 per share for the same period in 2014. On a year-to-date basis, fully diluted earnings per share for 2015 were $0.75 per share. This amount compares to $0.65 for the same period in 2014.

The combined ratio for the Company was 97.8% (comprised of a loss ratio of 64.0% and an expense ratio of 33.8%) for the second quarter of 2015. This compares to a combined ratio of 96.7% (comprised of a loss ratio of 63.2% and an expense ratio of 33.4%) in the prior year. On a year-to-date basis, the combined ratio for the Company was 97.6% (comprised of a loss ratio of 63.8% and an expense ratio of 33.8%) for 2015. This compares to a combined ratio in the prior year that was also 97.6% (comprised of a loss ratio of 63.1% and an expense ratio of 34.4%).

Results for the quarter ended June 30, 2015 include favorable reserve development on prior accident years of $2.5 million, representing 2.4 points of our loss and combined ratio, respectively, which compares to favorable reserve development in the prior year of $ 2.7 million, representing 2.7 points of our loss and combined ratio, respectively. On an after-tax basis, favorable reserve development for the quarter is $2.1 million ($2.2 million in the prior year). On a year-to-date basis, 2015 includes favorable reserve development on prior accident years of $5.0 million (or $4.1 million on an after-tax basis) representing 2.2 points of our loss and combined ratio, respectively. In 2014, this favorable reserve development was $3.7 million (or $3.0 million on an after-tax basis) representing 2.0 points of our loss and combined ratio, respectively.

The slight increase in the overall expense ratio in the second quarter of 2015 compared to the same period in prior year (33.8% in 2015 vs. 33.4% in the prior year) was primarily due to the increased costs of being a public company, offset by the increase in our earned premiums which grew 9.3% in the quarter from $97.0 million in 2014 to $106.1 million in 2015. For the six months ended June 30, 2015 our expense ratio decreased (to 33.8% in 2015 vs. 34.4% in the prior year) as a result of earned premiums increasing 19.9% from $186.1 million in 2014 to $223.1 million in 2015, offset by the increased costs of being a public company.

The Excess and Surplus Lines segment’s combined ratio was 89.1% for the second quarter of 2015, comprised of a loss ratio of 61.8% and an expense ratio of 27.3%. In the prior year, this segment’s combined ratio was 88.5% for the second quarter, comprised of a loss ratio of 61.3% and an expense ratio of 27.3%. For the year-to-date, the Excess and Surplus Lines segment’s combined ratio was 88.2%, comprised of a loss ratio of 61.0% and an expense ratio of 27.2%. In the prior year, this segment’s combined ratio on a year-to-date basis was 89.8%, comprised of a loss ratio of 61.4% and an expense ratio of 28.4%. In the second quarter, we recognized $3.4 million in pre-tax, favorable reserve development representing 6.5 points of our loss and combined ratio, respectively. In the same period in 2014, we recognized $3.9 million in pre-tax favorable reserve development representing 8.7 points of our loss and combined ratio, respectively. On a year-to-date basis, 2015 includes favorable reserve development on prior accident years of $8.4 million representing 7.5 points of our loss and combined ratio, respectively. In 2014, this favorable reserve development was $6.3 million representing 7.2 points of our loss and combined ratio, respectively.

The Specialty Admitted Insurance segment’s combined ratio was 98.0% for the second quarter of 2015, comprised of a loss ratio of 60.4% and an expense ratio of 37.6%. In the prior year, this segment’s combined ratio was 106.9%, comprised of a loss ratio of 57.6% and an expense ratio of 49.3%. For the year-to-date, the Specialty Admitted Insurance segment’s combined ratio was 99.8%, comprised of a loss ratio of 60.5% and an expense ratio of 39.2%. In the prior year, this segment’s combined ratio was 108.9%, comprised of a loss ratio of 56.5% and an expense ratio of 52.4%. In the second quarter, we recognized $189,000 in pre-tax, favorable reserve development representing 1.9 points of our loss and combined ratio, respectively. In the same period in 2014, we recognized $789,000 in pre-tax, favorable reserve development representing 12.1 points of the loss and combined ratio, respectively. On a year-to-date basis, 2015 includes favorable reserve development on prior accident years of $196,000 representing 1.0 points of our loss and combined ratio, respectively. In 2014, this segment had favorable reserve development of $1.1 million representing 9.2 points of our loss and combined ratio, respectively. The expense ratio for the second quarter and year-to-date 2015 of 37.6% and 39.2%, respectively, has begun to show the effects of the successful ramp up of the programs and fronting business along with an overall increase in earned premiums in this segment. For the same periods in the prior year, the expense ratio was 49.3% and 52.4%, respectively.

The Casualty Reinsurance segment’s combined ratio was 98.6% for the second quarter of 2015, comprised of a loss ratio of 67.6% and an expense ratio of 31.0%. In the prior year, this segment’s combined ratio was 99.2% comprised of a loss ratio of 66.0% and an expense ratio of 33.2%. For the year-to-date, the Casualty Reinsurance segment’s combined ratio was 99.3%, comprised of a loss ratio of 68.0% and an expense ratio of 31.3%. In the prior year, this segment’s combined ratio on a year-to-date basis was 99.5%, comprised of a loss ratio of 65.7% and an expense ratio of 33.8%. In the second quarter, we recognized $1.1 million of adverse reserve development representing (2.6) points of the loss and combined ratio, respectively. In the prior year, we recognized $2.0 million of adverse reserve development representing (4.5) points of the loss and combined ratio, respectively. On a year-to-date basis, 2015 includes adverse reserve development on prior accident years of $3.6 million representing (3.9) points of our loss and combined ratio, respectively. In 2014, this adverse reserve development was $3.6 million representing (4.1) points of our loss and combined ratio, respectively.

The increase in gross written premium at this segment for the second quarter of 2015 is principally due to the timing of renewals on two contracts:

– One contract which renewed as a 15 month treaty in the first quarter of 2014 was renewed in the second quarter of 2015. This contract contributed $36.7 million to this segment’s gross written premium in the first quarter of 2014 and $27.4 million to the second quarter of 2015; and

– Another contract which renewed in the third quarter of 2014 was renewed in the second quarter of 2015. This contract contributed $25.0 million to this segment’s gross written premium in the third quarter of 2014 and $16.0 million to the second quarter of 2015.

Net investment income for the second quarter of 2015 was $13.0 million which compares to $10.7 million for the same period in 2014. On a year-to-date basis, net investment income for 2015 was $25.0 million which compares to $23.2 million for the same period in 2014. These increases in net investment income were attributable to an increase in the fair value of our investments in certain renewable energy partnerships in the second quarter of $2.2 million compared to $724,000 in the prior year ($4.6 million and $4.0 million for the six months ended June 30, 2015 and 2014, respectively). Additionally the increase in net investment income is attributable to positive operating cash flow as evidenced by the increase in our balance of cash and invested assets which grew 4.9% and 2.1% from $1,276.1 million at June 30, 2014 and $1,310.6 million at December 31, 2014, respectively, to $1,338.6 million at June 30, 2015. Offsetting this increase was the $70 million dividend we paid on September 30, 2014, which reduced our investable assets, as well as declining portfolio yields. Our annualized gross investment yield on average fixed maturity securities for the three and six months ended June 30, 2015 was 3.4% and 3.2%, respectively, and the average duration of our portfolio was 3.5 years.

During the second quarter, we recognized $350,000 of pre-tax net realized gains. On a year-to-date basis for 2015, we recognized $2.5 million in pre-tax net realized losses. Included in this amount was $3.4 million in losses during the first quarter of 2015 relating to our energy portfolio, which at June 30, 2015 had a remaining carrying value of $24.5 million and a fair market value of $22.8 million.

Dividend

The Company also announced that its Board of Directors declared a cash dividend of $0.16 per common share. This dividend is payable on Wednesday, September 30, 2015 to all shareholders of record on Monday, September 14, 2015.

Conference Call

James River Group Holdings will hold a conference call to discuss this press release tomorrow, August 6, 2015, at 9:00 a.m. Eastern time. Investors may access the conference call by dialing (877) 930-8055 Conference ID# 59295869 or via the internet by going to www.jrgh.net and clicking on the “Investor Relations” link. Please visit the website at least 15 minutes early to register and download any necessary audio software. A replay will be available shortly after the call and through the end of business on September 6, 2015 at the number and website referenced above.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, intend, project, anticipate, plan, estimate or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and factors, they include, among others, the following: losses exceeding reserves; loss of key members of our management or employees; adverse economic factors; a decline in our financial strength; loss of a group of brokers or agents that generate significant portions of our business; losses in our investment portfolio; additional government or market regulation; potentially becoming subject to United States taxation and other risks described in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Non-GAAP Financial Measures

In presenting James River Group Holding’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (GAAP). Such measures, including underwriting profit, net operating income and return on tangible equity are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. These measures should not be viewed as a substitute for those determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included at the end of this press release.

About James River Group Holdings, Ltd.

James River Group Holdings, Ltd. is a Bermuda-based insurance holding company which owns and operates a group of specialty insurance and reinsurance companies founded by members of our management team. The company operates in three specialty property-casualty insurance and reinsurance segments: Excess and Surplus Lines, Specialty Admitted Insurance and Casualty Reinsurance. The company tends to focus on accounts associated with small or medium-sized businesses in each of its segments. Each of the Company’s regulated insurance subsidiaries are rated “A-” (Excellent) with a “positive outlook” by A.M. Best Company.

Visit James River Group Holdings, Ltd. on the web at www.jrgh.net

*T
James River Group Holdings, Ltd. and Subsidiaries
Condensed Consolidated Balance Sheet Data
(Unaudited)
June 30,            December 31,
2015                  2014
——————————————-
($ in thousands, except for share amounts)
ASSETS
Invested assets:
Fixed maturity securities, available-for-sale                      $ 811,178             $ 756,963
Fixed maturity securities, trading                                     5,763                 7,388
Equity securities, available-for-sale                                 75,164                67,905
Bank loan participations, held-for-investment                        216,525               239,511
Short-term investments                                               105,587               131,856
Other invested assets                                                 58,579                33,622
——————————————-
Total investments                                                   1,272,796             1,237,245
Cash and cash equivalents                                              65,832                73,383
Accrued investment income                                               7,302                 7,273
Premiums receivable and agents’ balances                              209,468               162,527
Reinsurance recoverable on unpaid losses                              134,750               127,254
Reinsurance recoverable on paid losses                                  3,615                 1,725
Deferred policy acquisition costs                                      71,782                60,202
Goodwill and intangible assets                                        221,658               221,956
Other assets                                                           75,509                67,727
——————————————-
Total assets                                                      $ 2,062,712           $ 1,959,292
===========================================
LIABILITIES AND SHAREHOLDERS’ EQUITY
Reserve for losses and loss adjustment expenses                     $ 762,254             $ 716,296
Unearned premiums                                                     327,795               277,579
Senior debt                                                            88,300                88,300
Junior subordinated debt                                              104,055               104,055
Accrued expenses                                                       26,627                31,107
Other liabilities                                                      61,496                54,034
——————————————-
Total liabilities                                                   1,370,527             1,271,371
Total shareholders’ equity                                            692,185               687,921
——————————————-
Total liabilities and shareholders’ equity                        $ 2,062,712           $ 1,959,292
===========================================
Tangible equity                                                     $ 470,527             $ 465,965
Tangible equity per common share outstanding                          $ 16.46               $ 16.33
Total shareholders’ equity per common share outstanding               $ 24.22               $ 24.10
Common shares outstanding                                          28,581,600            28,540,350
Debt to total capitalization ratio                                      21.7%                 21.9%
*T
*T
James River Group Holdings, Ltd. and Subsidiaries
Condensed Consolidated Income Statement Data
(Unaudited)
Three Months Ended       Six Months Ended
June 30,                June 30,
———————————————–
2015        2014        2015        2014
———————————————–
($ in thousands, except for share data)
REVENUES
Gross written premiums                        $ 184,011    $ 96,960   $ 315,269   $ 244,201
===============================================
Net written premiums                          $ 158,814    $ 81,941   $ 267,473   $ 213,782
===============================================
Net earned premiums                           $ 106,060    $ 97,012   $ 223,071   $ 186,068
Net investment income                            13,000      10,711      24,986      23,193
Net realized investment gains (losses)              350     (1,790)     (2,456)     (3,711)
Other income                                        817         863       1,093         941
———————————————–
Total revenues                                  120,227     106,796     246,694     206,491
EXPENSES
Losses and loss adjustment expenses              67,931      61,336     142,415     117,450
Other operating expenses                         36,580      33,229      76,377      64,857
Other expenses                                       69         296         138         389
Interest expense                                  1,744       1,557       3,448       3,104
Amortization of intangible assets                   149         173         298         298
———————————————–
Total expenses                                  106,473      96,591     222,676     186,098
———————————————–
Income before taxes                              13,754      10,205      24,018      20,393
Federal income tax expense                        1,265         692       2,152       1,742
———————————————–
NET INCOME                                     $ 12,489    $  9,513    $ 21,866    $ 18,651
===============================================
NET OPERATING INCOME                           $ 12,362    $ 10,883    $ 24,053    $ 21,351
===============================================
EARNINGS PER SHARE
Basic                                          $ 0.44      $ 0.33      $ 0.77      $ 0.65
===============================================
Diluted                                        $ 0.43      $ 0.33      $ 0.75      $ 0.65
===============================================
NET OPERATING INCOME PER SHARE
Basic                                          $ 0.43      $ 0.38      $ 0.84      $ 0.75
===============================================
Diluted                                        $ 0.42      $ 0.38      $ 0.82      $ 0.74
===============================================
Weighted-average common shares outstanding:
Basic                                      28,547,616  28,540,350  28,544,003  28,540,350
===============================================
Diluted                                    29,214,859  28,787,957  29,156,604  28,784,319
===============================================
Cash dividends declared per common share         $ 0.16      $ 0.00      $ 0.32      $ 0.00
===============================================
Ratios:
Loss ratio                                      64.0%       63.2%       63.8%       63.1%
Expense ratio                                   33.8%       33.4%       33.8%       34.4%
Combined ratio                                  97.8%       96.7%       97.6%       97.6%
*T
*T
James River Group Holdings, Ltd. and Subsidiaries
Segment Results
EXCESS AND SURPLUS LINES
Three Months Ended                    Six Months Ended
June 30,                             June 30,
————————————————————————-
2015              2014               2015               2014
————————————————————————-
($ in thousands)
Gross written premiums                                $ 77,417          $ 59,134          $ 153,135          $ 120,687
=========================================================================
Net written premiums                                  $ 60,924          $ 50,165          $ 123,220          $  99,539
=========================================================================
Net earned premiums                                   $ 52,867          $ 45,100          $ 112,267          $  87,083
Losses and loss adjustment expenses                   (32,688)          (27,639)           (68,530)           (53,480)
Underwriting expenses                                 (14,410)          (12,290)           (30,525)           (24,705)
————————————————————————-
Underwriting profit (a), (b)                          $  5,769          $  5,171          $  13,212           $  8,898
=========================================================================
Ratios:
Loss ratio                                             61.8%             61.3%              61.0%              61.4%
Expense ratio                                          27.3%             27.3%              27.2%              28.4%
Combined ratio                                         89.1%             88.5%              88.2%              89.8%
(a) See “Reconciliation of Non-GAAP Measures.”
(b) Underwriting results include fees of $758,000 and $783,000 for the three months ended June 30, 2015 and 2014,
respectively, and $978,000 and $783,000 for the respective six month periods.
SPECIALTY ADMITTED INSURANCE
Three Months Ended                    Six Months Ended
June 30,                             June 30,
————————————————————————-
2015              2014               2015               2014
————————————————————————-
($ in thousands)
Gross written premiums                                $ 17,931          $ 12,559           $ 38,857           $ 24,236
=========================================================================
Net written premiums                                   $ 9,167           $ 7,302           $ 20,641           $ 15,643
=========================================================================
Net earned premiums                                   $ 10,150           $ 6,513           $ 19,705           $ 11,662
Losses and loss adjustment expenses                    (6,133)           (3,750)           (11,929)            (6,587)
Underwriting expenses                                  (3,818)           (3,211)            (7,732)            (6,115)
————————————————————————-
Underwriting profit (loss) (a), (b)                     $  199          $  (448)              $  44          $ (1,040)
=========================================================================
Ratios:
Loss ratio                                              60.4%             57.6%              60.5%              56.5%
Expense ratio                                           37.6%             49.3%              39.2%              52.4%
Combined ratio                                          98.0%            106.9%              99.8%             108.9%
(a) See “Reconciliation of Non-GAAP Measures.”
(b) Underwriting results include fees of $361,000 and $166,000 for the three months ended June 30, 2015 and 2014,
respectively, and $663,000 and $303,000 for the respective six month periods.
CASUALTY REINSURANCE
Three Months Ended                    Six Months Ended
June 30,                             June 30,
————————————————————————-
2015              2014               2015               2014
————————————————————————-
($ in thousands)
Gross written premiums                                $ 88,663          $ 25,267          $ 123,277           $ 99,278
=========================================================================
Net written premiums                                  $ 88,723          $ 24,474          $ 123,612           $ 98,600
=========================================================================
Net earned premiums                                   $ 43,043          $ 45,399          $  91,099           $ 87,323
Losses and loss adjustment expenses                   (29,110)          (29,947)           (61,956)           (57,383)
Underwriting expenses                                 (13,339)          (15,089)           (28,508)           (29,533)
————————————————————————-
Underwriting profit (a)                               $    594            $  363             $  635             $  407
=========================================================================
Ratios:
Loss ratio                                             67.6%             66.0%              68.0%              65.7%
Expense ratio                                          31.0%             33.2%              31.3%              33.8%
Combined ratio                                         98.6%             99.2%              99.3%              99.5%
(a) See “Reconciliation of Non-GAAP Measures.”
*T
RECONCILIATION OF NON-GAAP MEASURES
The following table reconciles the underwriting profit (loss) by individual operating segment and of the whole Company to consolidated income before taxes. We believe that these measures are useful to investors in evaluating the performance of our Company and its operating segments because our objective is to consistently earn underwriting profits. We evaluate the performance of our operating segments and allocate resources based primarily on underwriting profit (loss) of operating segments. Our definition of underwriting profit (loss) of operating segments and underwriting profit (loss) may not be comparable to that of other companies.
*T
Three Months Ended           Six Months Ended
June 30,                    June 30,
——————————————————
2015          2014          2015         2014
——————————————————
($ in thousands)
Underwriting profit (loss) of the operating segments:
Excess and Surplus Lines                                            $ 5,769       $ 5,171      $ 13,212      $ 8,898
Specialty Admitted Insurance                                            199         (448)            44      (1,040)
Casualty Reinsurance                                                    594           363           635          407
——————————————————
Total underwriting profit of operating segments                         6,562         5,086        13,891        8,265
Other operating expenses of the Corporate and Other segment           (4,255)       (1,856)       (8,634)      (3,721)
——————————————————
Underwriting profit (a)                                                 2,307         3,230         5,257        4,544
Net investment income                                                  13,000        10,711        24,986       23,193
Net realized investment gains (losses)                                    350       (1,790)       (2,456)      (3,711)
Other income and expenses                                                (10)         (216)          (23)        (231)
Interest expense                                                      (1,744)       (1,557)       (3,448)      (3,104)
Amortization of intangible assets                                       (149)         (173)         (298)        (298)
——————————————————
Consolidated income before taxes                                     $ 13,754      $ 10,205      $ 24,018     $ 20,393
======================================================
(a) Included in underwriting results for the three months ended June 30, 2015 and 2014 is net fee income of $1.1
million and $949,000, respectively, and $1.6 million and $1.1 million for the respective six month periods.
*T
We define net operating income as net income excluding net realized investment gains and losses, expenses related to due diligence costs for various merger and acquisition activities, costs associated with our initial public offering, severance costs associated with terminated employees, impairment charges on goodwill and intangible assets and gains on extinguishment of debt. We use net operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Net operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and our definition of net operating income may not be comparable to that of other companies.
Our income before taxes and net income for the three and six months ended June 30, 2015 and 2014, respectively, reconciles to our net operating income as follows:
*T
Three Months Ended
June 30,
—————————————
2015                2014
—————————————
Income              Income
Before      Net     Before      Net
Taxes     Income    Taxes     Income
—————————————
($ in thousands)
Income as reported                                                              $ 13,754  $ 12,489  $ 10,205   $ 9,513
Net realized investment (gains) losses                                            (350)     (279)     1,790       990
Other expenses                                                                       69        45       296       271
Interest expense on leased building the Company is deemed to own for
accounting purposes                                                                 165       107       167       109
—————————————
Net operating income                                                            $ 13,638  $ 12,362  $ 12,458  $ 10,883
=======================================
Six Months Ended
June 30,
—————————————
2015                2014
—————————————
Income              Income
Before      Net     Before      Net
Taxes     Income    Taxes     Income
—————————————
($ in thousands)
Income as reported                                                              $ 24,018  $ 21,866  $ 20,393  $ 18,651
Net realized investment losses                                                   2,456     1,883     3,711     2,143
Other expenses                                                                     138        90       389       341
Interest expense on leased building the Company is deemed to own for
accounting purposes                                                                 330       214       332       216
—————————————
Net operating income                                                            $ 26,942  $ 24,053  $ 24,825  $ 21,351
=======================================
*T
We define tangible equity as the sum of shareholders’ equity less goodwill and intangible assets (net of amortization). Our definition of tangible equity may not be comparable to that of other companies, and it should not be viewed as a substitute for shareholders’ equity calculated in accordance with GAAP. We use tangible equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure. The following table reconciles shareholders’ equity to tangible equity for both June 30, 2015 and December 31, 2014.
*T
June 30,  December 31,
2015        2014
————————
(in thousands)
Shareholders’ equity                  $ 692,185     $ 687,921
Less: Goodwill and intangible assets    221,658       221,956
————————
Tangible equity                       $ 470,527     $ 465,965
========================
*T
*T
CONTACT: Robert Myron
President and Chief Operating Officer
1-441-278-4583
InvestorRelations@jrgh.net
*T

James River Group Holdings, Ltd. and Subsidiaries

Condensed Consolidated Balance Sheet Data

(Unaudited)

June 30,            December 31,

2015                  2014

——————————————-

($ in thousands, except for share amounts)

ASSETS

Invested assets:

Fixed maturity securities, available-for-sale                                      $ 811,178             $ 756,963

Fixed maturity securities, trading                                                            5,763                 7,388

Equity securities, available-for-sale                                                        75,164                67,905

Bank loan participations, held-for-investment                                  216,525               239,511

Short-term investments                                                                             105,587               131,856

Other invested assets                                                                                  58,579                33,622

——————————————-

Total investments                                                                                    1,272,796             1,237,245

Cash and cash equivalents                                                                    65,832                73,383

Accrued investment income                                                                 7,302                 7,273

Premiums receivable and agents’ balances                               209,468               162,527

Reinsurance recoverable on unpaid losses                              134,750               127,254

Reinsurance recoverable on paid losses                                        3,615                 1,725

Deferred policy acquisition costs                                                     71,782                60,202

Goodwill and intangible assets                                                          221,658               221,956

Other assets                                                                                               75,509                67,727

——————————————-

Total assets                                                                                          $ 2,062,712           $ 1,959,292

===========================================

LIABILITIES AND SHAREHOLDERS’ EQUITY

Reserve for losses and loss adjustment expenses                     $ 762,254             $ 716,296

Unearned premiums                                                                                327,795               277,579

Senior debt                                                                                                 88,300                88,300

Junior subordinated debt                                                               104,055               104,055

Accrued expenses                                                                                 26,627                31,107

Other liabilities                                                                                      61,496                54,034

——————————————-

Total liabilities                                                                               1,370,527             1,271,371

Total shareholders’ equity                                                        692,185               687,921

——————————————-

Total liabilities and shareholders’ equity                        $ 2,062,712           $ 1,959,292

===========================================

Tangible equity                                                                             $ 470,527             $ 465,965

Tangible equity per common share outstanding                          $ 16.46               $ 16.33

Total shareholders’ equity per common share outstanding         $ 24.22               $ 24.10

Common shares outstanding                                                       28,581,600            28,540,350

Debt to total capitalization ratio                                                   21.7%                 21.9%

James River Group Holdings, Ltd. and Subsidiaries

Condensed Consolidated Income Statement Data

(Unaudited)

Three Months Ended       Six Months Ended

June 30,                June 30,

———————————————–

2015        2014        2015        2014

———————————————–

($ in thousands, except for share data)

REVENUES

Gross written premiums                                                                        $ 184,011    $ 96,960   $ 315,269   $ 244,201

===============================================

Net written premiums                                                                           $ 158,814    $ 81,941   $ 267,473   $ 213,782

===============================================

Net earned premiums                                                                       $ 106,060    $ 97,012   $ 223,071   $ 186,068

Net investment income                                                                             13,000      10,711      24,986      23,193

Net realized investment gains (losses)                                               350     (1,790)     (2,456)     (3,711)

Other income                                                                                                817         863       1,093         941

———————————————–

Total revenues                                                                                120,227     106,796     246,694     206,491

EXPENSES

Losses and loss adjustment expenses                                 67,931      61,336     142,415     117,450

Other operating expenses                                                        36,580      33,229      76,377      64,857

Other expenses                                                                                   69         296         138         389

Interest expense                                                                           1,744       1,557       3,448       3,104

Amortization of intangible assets                                              149         173         298         298

———————————————–

Total expenses                                                                   106,473      96,591     222,676     186,098

———————————————–

Income before taxes                                                       13,754      10,205      24,018      20,393

Federal income tax expense                                          1,265         692       2,152       1,742

———————————————–

NET INCOME                                                             $ 12,489    $  9,513    $ 21,866    $ 18,651

===============================================

NET OPERATING INCOME                                 $ 12,362    $ 10,883    $ 24,053    $ 21,351

===============================================

EARNINGS PER SHARE

Basic                                                                 $ 0.44      $ 0.33      $ 0.77      $ 0.65

===============================================

Diluted                                                            $ 0.43      $ 0.33      $ 0.75      $ 0.65

===============================================

NET OPERATING INCOME PER SHARE

Basic                                                       $ 0.43      $ 0.38      $ 0.84      $ 0.75

===============================================

Diluted                                               $ 0.42      $ 0.38      $ 0.82      $ 0.74

===============================================

Weighted-average common shares outstanding:

Basic                                      28,547,616  28,540,350  28,544,003  28,540,350

===============================================

Diluted                                    29,214,859  28,787,957  29,156,604  28,784,319

===============================================

Cash dividends declared per common share         $ 0.16      $ 0.00      $ 0.32      $ 0.00

===============================================

Ratios:

Loss ratio                                      64.0%       63.2%       63.8%       63.1%

Expense ratio                                   33.8%       33.4%       33.8%       34.4%

Combined ratio                                  97.8%       96.7%       97.6%       97.6%

*T

*T

James River Group Holdings, Ltd. and Subsidiaries

Segment Results

EXCESS AND SURPLUS LINES

Three Months Ended                    Six Months Ended

June 30,                             June 30,

————————————————————————-

2015              2014               2015               2014

————————————————————————-

($ in thousands)

Gross written premiums                                $ 77,417          $ 59,134          $ 153,135          $ 120,687

=========================================================================

Net written premiums                                  $ 60,924          $ 50,165          $ 123,220          $  99,539

=========================================================================

Net earned premiums                                   $ 52,867          $ 45,100          $ 112,267          $  87,083

Losses and loss adjustment expenses                   (32,688)          (27,639)           (68,530)           (53,480)

Underwriting expenses                                 (14,410)          (12,290)           (30,525)           (24,705)

————————————————————————-

Underwriting profit (a), (b)                          $  5,769          $  5,171          $  13,212           $  8,898

=========================================================================

Ratios:

Loss ratio                                             61.8%             61.3%              61.0%              61.4%

Expense ratio                                          27.3%             27.3%              27.2%              28.4%

Combined ratio                                         89.1%             88.5%              88.2%              89.8%

(a) See “Reconciliation of Non-GAAP Measures.”

(b) Underwriting results include fees of $758,000 and $783,000 for the three months ended June 30, 2015 and 2014,

respectively, and $978,000 and $783,000 for the respective six month periods.

SPECIALTY ADMITTED INSURANCE

Three Months Ended                    Six Months Ended

June 30,                             June 30,

————————————————————————-

2015              2014               2015               2014

————————————————————————-

($ in thousands)

Gross written premiums                                                                   $ 17,931          $ 12,559           $ 38,857           $ 24,236

=========================================================================

Net written premiums                                                                      $ 9,167           $ 7,302           $ 20,641           $ 15,643

=========================================================================

Net earned premiums                                                                  $ 10,150           $ 6,513           $ 19,705           $ 11,662

Losses and loss adjustment expenses                                     (6,133)           (3,750)           (11,929)            (6,587)

Underwriting expenses                                                                 (3,818)           (3,211)            (7,732)            (6,115)

————————————————————————-

Underwriting profit (loss) (a), (b)                                            $  199          $  (448)              $  44          $ (1,040)

=========================================================================

Ratios:

Loss ratio                                                                                         60.4%             57.6%              60.5%              56.5%

Expense ratio                                                                               37.6%             49.3%              39.2%              52.4%

Combined ratio                                                                            98.0%            106.9%              99.8%             108.9%

(a) See “Reconciliation of Non-GAAP Measures.”

(b) Underwriting results include fees of $361,000 and $166,000 for the three months ended June 30, 2015 and 2014,

respectively, and $663,000 and $303,000 for the respective six month periods.

CASUALTY REINSURANCE

Three Months Ended                    Six Months Ended

June 30,                             June 30,

————————————————————————-

2015              2014               2015               2014

————————————————————————-

($ in thousands)

Gross written premiums                                                                 $ 88,663          $ 25,267          $ 123,277           $ 99,278

=========================================================================

Net written premiums                                                                $ 88,723          $ 24,474          $ 123,612           $ 98,600

=========================================================================

Net earned premiums                                                                  $ 43,043          $ 45,399          $  91,099           $ 87,323

Losses and loss adjustment expenses                                   (29,110)          (29,947)           (61,956)           (57,383)

Underwriting expenses                                                             (13,339)          (15,089)           (28,508)           (29,533)

————————————————————————-

Underwriting profit (a)                                                              $    594            $  363             $  635             $  407

=========================================================================

Ratios:

Loss ratio                                                                                        67.6%             66.0%              68.0%              65.7%

Expense ratio                                                                             31.0%             33.2%              31.3%              33.8%

Combined ratio                                                                         98.6%             99.2%              99.3%              99.5%

(a) See “Reconciliation of Non-GAAP Measures.”

RECONCILIATION OF NON-GAAP MEASURES

The following table reconciles the underwriting profit (loss) by individual operating segment and of the whole Company to consolidated income before taxes. We believe that these measures are useful to investors in evaluating the performance of our Company and its operating segments because our objective is to consistently earn underwriting profits. We evaluate the performance of our operating segments and allocate resources based primarily on underwriting profit (loss) of operating segments. Our definition of underwriting profit (loss) of operating segments and underwriting profit (loss) may not be comparable to that of other companies.

Three Months Ended           Six Months Ended

June 30,                    June 30,

——————————————————

2015          2014          2015         2014

——————————————————

($ in thousands)

Underwriting profit (loss) of the operating segments:

Excess and Surplus Lines                                                                             $ 5,769       $ 5,171      $ 13,212      $ 8,898

Specialty Admitted Insurance                                                                         199         (448)            44      (1,040)

Casualty Reinsurance                                                                                        594           363           635          407

——————————————————

Total underwriting profit of operating segments                                  6,562         5,086        13,891        8,265

Other operating expenses of the Corporate and Other segment    (4,255)       (1,856)       (8,634)      (3,721)

——————————————————

Underwriting profit (a)                                                 2,307         3,230         5,257        4,544

Net investment income                                                  13,000        10,711        24,986       23,193

Net realized investment gains (losses)                           350       (1,790)       (2,456)      (3,711)

Other income and expenses                                                  (10)         (216)          (23)        (231)

Interest expense                                                                  (1,744)       (1,557)       (3,448)      (3,104)

Amortization of intangible assets                                            (149)         (173)         (298)        (298)

——————————————————

Consolidated income before taxes                                     $ 13,754      $ 10,205      $ 24,018     $ 20,393

======================================================

(a) Included in underwriting results for the three months ended June 30, 2015 and 2014 is net fee income of $1.1

million and $949,000, respectively, and $1.6 million and $1.1 million for the respective six month periods.

We define net operating income as net income excluding net realized investment gains and losses, expenses related to due diligence costs for various merger and acquisition activities, costs associated with our initial public offering, severance costs associated with terminated employees, impairment charges on goodwill and intangible assets and gains on extinguishment of debt. We use net operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Net operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and our definition of net operating income may not be comparable to that of other companies.

Our income before taxes and net income for the three and six months ended June 30, 2015 and 2014, respectively, reconciles to our net operating income as follows:

Three Months Ended

June 30,

—————————————

2015                2014

—————————————

Income              Income

Before      Net     Before      Net

Taxes     Income    Taxes     Income

—————————————

($ in thousands)

Income as reported                                                                                          $ 13,754  $ 12,489  $ 10,205   $ 9,513

Net realized investment (gains) losses                                                           (350)     (279)     1,790       990

Other expenses                                                                                                            69        45       296       271

Interest expense on leased building the Company is deemed to own for accounting purposes

165       107       167       109

—————————————

Net operating income                                                                                 $ 13,638  $ 12,362  $ 12,458  $ 10,883

=======================================

Six Months Ended

June 30,

—————————————

2015                2014

—————————————

Income              Income

Before      Net     Before      Net

Taxes     Income    Taxes     Income

—————————————

($ in thousands)

Income as reported                                                                                           $ 24,018  $ 21,866  $ 20,393  $ 18,651

Net realized investment losses                                                                     2,456     1,883     3,711     2,143

Other expenses                                                                                                     138        90       389       341

Interest expense on leased building the Company is deemed to own for

accounting purposes                                                                                    330       214       332       216

—————————————

Net operating income                                                                    $ 26,942  $ 24,053  $ 24,825  $ 21,351

=======================================

We define tangible equity as the sum of shareholders’ equity less goodwill and intangible assets (net of amortization). Our definition of tangible equity may not be comparable to that of other companies, and it should not be viewed as a substitute for shareholders’ equity calculated in accordance with GAAP. We use tangible equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure. The following table reconciles shareholders’ equity to tangible equity for both June 30, 2015 and December 31, 2014.

June 30,  December 31,

2015        2014

————————

(in thousands)

Shareholders’ equity                                                                                                              $ 692,185     $ 687,921

Less: Goodwill and intangible assets                                                                                 221,658       221,956

————————

Tangible equity                                                                                                                        $ 470,527     $ 465,965

========================

CONTACT: Robert Myron

President and Chief Operating Officer

1-441-278-4583

InvestorRelations@jrgh.net

*

Click Here for More Information »

James River Group Holdings, Ltd. anuncia las fechas de la publicación de sus ganancias del segundo trimestre de 2015 y de la conferencia telefónica

CaribPR Wire, PEMBROKE, Bermudas, 15 de julio de 2015: James River Group Holdings, Ltd. (NASDAQ: JRVR) anunció hoy que publicará las ganancias del trimestre y del año hasta la fecha que finalizó el 30 de junio de 2015 luego del cierre del mercado el miércoles, 5 de agosto de 2015. El jueves, 6 de agosto de 2015, a partir de las 9.00 a. m. (horario de verano del este), la compañía ofrecerá una conferencia telefónica para hablar de los resultados con analistas e inversionistas.

Los inversionistas pueden participar de la conferencia llamando al (877) 930-8055; el número de identificación de la conferencia es el 59295869. O bien a través de Internet en www.jrgh.net haciendo clic en el enlace “Investor Relations” (Relaciones con los inversionistas). Ingrese al sitio web por lo menos 15 minutos antes del evento para inscribirse y descargar e instalar el software de audio necesario. La repetición de la conferencia estará disponible en el número de teléfono y en el sitio web antes mencionados hasta el cierre de la jornada del 6 de septiembre de 2015.

Acerca de James River Group Holdings, Ltd.

James River Group Holdings, Ltd. es un holding empresarial de seguros con sede en las Bermudas que posee y opera un grupo de compañías especializadas de seguros y reaseguros fundadas por miembros de nuestro equipo gerencial. La compañía opera en tres segmentos especializados de seguros y reaseguros de responsabilidad y patrimoniales: líneas de excesos y excedentes, seguros de productos especiales admitidos y reaseguros de responsabilidad. En cada uno de los segmentos, la compañía tiende a enfocarse en cuentas asociadas con pequeñas y medianas empresas. A.M. Best Company calificó con “A-” (excelente) y una “perspectiva positiva” a cada una de las subsidiarias de seguro reguladas de la compañía.

Visite el sitio web de James River Group Holdings, Ltd. en www.jrgh.net

CONTACTO: Robert Myron

Presidente y director de Operaciones

InvestorRelations@jrgh.net

441-278-4583

Click Here for More Information »

Redbridge announces Life and Disability Binding Authority

CORAL GABLES, Fla., July 9, 2015 /PRNewswire/ — Redbridge is proud to announce that effective June 1, 2015, Redbridge Reinsurance Managers, LLC began operating with Life and Disability Reinsurance Binding Authority with worldwide territory for insureds domiciled in Latin America, Bermuda, the Bahamas and the Caribbean. We are authorized for a limit of USD 2,000,000 and are 100% supported by Lloyd’s Syndicate 779.

http://mma.prnewswire.com/media/234199/redbridge_reinsurance_managers_logo.jpg?p=distribution&token=br5thZeyux2xrRFS4R42×49FYaKEz1Ouq3mRN21FnYYDoZPT82BS/jUk5BLHHakNmlDgpOujr4KhtJqJlT88UxdYrKvBg4apaap5o0YIu3spQJfK03oh

Redbridge Reinsurance Managers is based in Coral Gables, Florida and is a Lloyd’s authorized coverholder. We guarantee quality service, and commit to provide a prompt quote once all required information is received.

The programs we are offering are as follows:

Group Life Reinsurance

  • Group Life Insurance
  • Total and Permanent Disability
  • Credit Life
  • Credit Disability
  • Credit Involuntary Unemployment Insurance

Personal Accident Reinsurance

  • Individual Accidental Death and Dismemberment (AD&D) Insurance
  • Travel Protection

Individual Life Reinsurance

  • Individual Life Insurance

For any business related inquiries please contact:

Mariano Ruiz (Argentina) – mruiz@redbridge.cc
Roberto Gomez (Dominican Republic) – rgomez@redbridge.cc
Mario Aguilar (Guatemala) – maguilar@redbridge.cc
Guiselle Monge (Costa Rica) – gmonge@redbridge.cc

Our authorized binding executives:     Edmund Santiago, esantiago@redbridge.cc
Dr. Boris Garcia Zakzuk, bgarcia@redbridge.cc

Logo - http://photos.prnewswire.com/prnh/20150708/234199LOGO

CONTACT:  Redbridge,  305-232-9040

Click Here for More Information »

Fidelis Insurance Raises Approximately $1.5 Billion In Initial Capital From Leading Investors; Innovative Hybrid Model Designed To Maximize Return On Equity

Industry Veterans Richard Brindle and Neil McConachie to Lead Company

Crestview Partners, CVC Capital Partners and Pine Brook are Founding Investors

HAMILTON, Bermuda, June 9, 2015 /PRNewswire/ — Fidelis Insurance Holdings Limited (”Fidelis” or “the Company”), a newly-formed specialty insurance and reinsurance provider employing an innovative model to optimize both the underwriting and asset sides of the balance sheet, today announced that it has secured approximately $1.5 billion in equity capital. This marks one of the largest industry capital raises ever, and immediately makes Bermuda-based Fidelis an important new underwriter in the global market. The Company has received an A.M. Best rating of A- (Excellent).

Fidelis was founded and will be led by two renowned industry veterans: Richard Brindle, who will serve as Group Chief Executive Officer and Chief Underwriting Officer, and Neil McConachie, who will be Group Chief Financial Officer. Previously, both Brindle and McConachie successfully built Lancashire Holdings from a startup to a London Stock Exchange-listed $2.4 billion market cap company that consistently outperformed its peers.

The founding investors are funds of Crestview Partners, CVC Capital Partners, and Pine Brook, private equity firms with deep financial services expertise who have invested a combined $650 million. Principals from all three firms backed members of the Fidelis team at their previous companies. The remainder of the capital investment comes from individual investors, family offices and institutional investors. The total capital raised was comprised of both preferred and common equity.

“We are very excited to introduce a new, stronger model to the insurance industry with Fidelis,” said Brindle. “By focusing on either assets or liabilities, legacy insurance models have failed to optimize shareholder returns, and the low returns generated by fixed income investments have been challenging. Fidelis will pursue a total return strategy by tactically shifting capital and risk between insurance and investments to maximize our return on equity across market cycles. We hope that others follow this model, as we strongly believe it will be very good for the industry, resulting in more responsible and less volatile underwriting.”

“But we are first and foremost an underwriting company,” Brindle continued. “We have a vastly experienced management team that is strongly supportive of the traditional broker distribution network and has, over decades, developed many strong broker and client relationships. These relationships will sit at the heart of everything we do at Fidelis.”

In contrast to reinsurers who give exclusive investment manager mandates to their hedge fund owners, Fidelis will allocate capital to top-tier managers running more diverse strategies that are well-suited to different parts of its book, and will have the ability to change managers and allocations. Fidelis Chief Investment Officer Edward Russell will manage the investment portfolio under the direction of the Investment Committee, working closely with advisor Goldman Sachs’ Alternative Investments & Manager Selection (AIMS) Group.

“In addition to seeking returns that outperform peers, we believe the diversification in assets will protect Fidelis against financial market volatility better than a single-manager strategy would,” said McConachie. “Optimizing across hard and soft underwriting markets, as well as through different investment cycles makes Fidelis not only a strong new player, but also very attractive for investors looking to reduce downside risk.”

Fidelis will underwrite a book of insurance and reinsurance business principally in the property, energy, marine and aviation risk classes. The Company expects to begin underwriting immediately.

Fidelis was advised by Clifford Chance US LLP and PricewaterhouseCoopers LLP. In addition, Goldman, Sachs & Co. acted as a financial advisor to Fidelis and as the placement agent for the capital raise. Crestview Partners and Pine Brook were advised by Skadden, Arps, Slate, Meagher & Flom LLP, and CVC Capital was advised by Cadwalader, Wickersham & Taft LLP, AON Securities Inc. and KPMG LLP.

About Fidelis Insurance
Fidelis Insurance Holdings Limited is a privately owned Bermuda-based holding company, which, through its wholly-owned subsidiaries, is a global provider of specialty insurance and reinsurance products for property, energy, marine and aviation risk classes. Fidelis employs a total return strategy by tactically shifting capital and risk between insurance and investments to maximize the return on equity across market cycles. Fidelis is rated A- (Excellent) by A.M. Best Company, Inc. Additional information regarding Fidelis may be found at www.fidelisinsurance.com.

About Crestview Partners
Founded in 2004, Crestview Partners is a value-oriented private equity firm focused on the middle market. The firm is based in New York and manages funds with over $7 billion of aggregate capital commitments. The firm is led by a group of partners who have complementary experience and distinguished backgrounds in private equity, finance, operations and management. Crestview’s senior investment professionals primarily focus on sourcing and managing investments in each of the specialty areas of the firm: energy, financial services, healthcare, industrials and media. For more information, please visit www.crestview.com.

About CVC Capital Partners
CVC Capital Partners is one of the world’s leading private equity and investment advisory firms. Founded in 1981, CVC today has a network of 22 offices and over 300 employees throughout Europe, Asia and the US. CVC has a dedicated global financial services team with deep property and casualty insurance expertise, having led investments in a number of successful insurance and reinsurance companies in Bermuda, the United States and the United Kingdom. To date, CVC has secured commitments of over $79 billion in funds from a diverse and loyal investor base, completing over 300 investments in a wide range of industries and countries across the globe, with an aggregate transaction value of over $120 billion. For further information about CVC please visit: www.cvc.com.

About Pine Brook
Pine Brook is an investment firm that manages more than $6.0 billion of limited partner commitments that makes “business building” and other equity investments, primarily in energy and financial services businesses. Pine Brook’s team of investment professionals collectively has over 300 years of experience financing the growth of businesses with equity, working alongside talented entrepreneurs and experienced management teams to build businesses of scale without relying on acquisition leverage. For more information about Pine Brook, please visit the company’s web site at www.pinebrookpartners.com.

Note Regarding Forward-Looking Statements
Certain information contained in this release constitutes “forwardlooking statements,” which can be identified by the use of forwardlooking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of the Company may differ materially from those reflected or contemplated in such forwardlooking statements. The company undertakes no obligation to update any such forward-looking statements resulting from any change in facts or circumstances or new developments.

All references to “$” are to U.S. Dollars.

CONTACT: US Media Contact – Tom Faust, Stanton Public Relations & Marketing, (646) 502-3513, TFaust@StantonPRM.com, or UK Media Contact – Peter Rigby, Haggie Partners, +44 207 562 4444, peter.rigby@haggie.co.uk

Click Here for More Information »

Markel Corporation names Mike Clancy Chief Operating Officer, Claims

RICHMOND, Va., May 28, 2015 /PRNewswire/ – Markel Corporation (NYSE: MKL) announced today that Mike Clancy has been named Chief Operating Officer, Markel Claims, effective June 15. In Clancy’s new position, he will be based in Richmond, Virginia and report to Nick Conca, Chief Claims Officer.

http://mma.prnewswire.com/media/219171/mike-clancy-markel-corporation.jpg?p=distribution&token=br5thbG6rB2xsxRZqlQe34RObaDOiFGup2OKLUZ0hp4MpoSc43xT6Ecjih7CG6oNnVbkoem2/IS3o7q0ljZkKzZVsbDc19C4e6o39nc7s1QzfbS0qwFmuA==

Clancy will focus primarily on accelerating efforts to improve the customer experience and manage the relationship between claims and underwriting teams. To support these initiatives he will be leveraging Markel’s data and analytics capabilities, driving process improvement efforts, and applying technology to make the claims process easier to navigate.

Clancy joined Markel in January 2012 as a Managing Director. In his current role, he has partnered with leadership teams across Markel’s divisions, departments, and the Office of the President to focus on creating business efficiencies and developing tools and resources to support operating discipline.

Prior to joining Markel, Clancy worked for the Boston Consulting Group (BCG) and was a consultant for Markel. He has more than 20 years of experience consulting to the insurance and financial services industries. He has worked extensively with both carriers and brokers in the insurance space, focusing on growth strategies, the consumer experience, and business transformation. Prior to joining BCG, he held various positions in financial services consulting, including co-founding research and advisory firms in New York and Washington, DC.

“Mike’s strong knowledge of Markel’s business, in all its complexity, combined with his industry expertise, will allow us to improve performance across the entire Claims organization,” said Conca. “I am excited to welcome him to our leadership team and look forward to reinforcing claims services as one of Markel’s core strengths and compelling competitive advantages.”

About Markel Corporation
Markel Corporation is a diverse financial holding company serving a variety of niche markets. The Company’s principal business markets and underwrites specialty insurance products. In each of the Company’s businesses, it seeks to provide quality products and excellent customer service so that it can be a market leader. The financial goals of the Company are to earn consistent underwriting and operating profits and superior investment returns to build shareholder value. Visit Markel Corporation on the web at markelcorp.com.

http://photos.prnewswire.com/prnvar/20140415/73238

Photo – http://photos.prnewswire.com/prnh/20150528/219171
Logo – http://photos.prnewswire.com/prnh/20140415/73238

CONTACT: Paul Broughton, 804-527-7618, pbroughton@markelcorp.com

Click Here for More Information »

Markel announces Cathryn Curia’s retirement

RICHMOND, Va., May 18, 2015 /PRNewswire/ – Markel Corporation (NYSE: MKL) announced today that Cathryn Curia, Managing Director, North American Property Reinsurance, is retiring effective August 1, 2015.

http://photos.prnewswire.com/prnvar/20140415/73238

“Cathryn’s underwriting and leadership contributions have been invaluable to the growth and profitability of Markel Global Reinsurance,” said Jed Rhoads, President and Chief Underwriting Officer of Markel Global Reinsurance. “She has had a truly remarkable career in the industry, and we are indebted to her for her many years of service.”

Curia has been in the reinsurance industry for the past 46 years. She joined Markel as part of the Alterra acquisition in May 2013. Curia served in a similar capacity for Alterra, having joined the company in 2005. Prior to joining Alterra, she served as Executive Vice President – North American Property Treaty for Platinum Underwriters Re. She was employed by St. Paul Re, Inc. from 1983 to 2002 in various positions including Executive Vice President, North American Property Treaty. She began her career as a trainee at Atlantic Mutual Companies, where she ultimately served as Secretary, Reinsurance. Curia earned a CPCU designation and is a member and past president of the Association of Professional Insurance Women.

“Cathryn is well known and deeply respected by her colleagues and our reinsurance brokers and clients. She will be sorely missed, and we wish her all the best in the years to come,” said Rhoads.

About Markel Corporation
Markel Corporation is a diverse financial holding company serving a variety of niche markets. The Company’s principal business markets and underwrites specialty insurance products. In each of the Company’s businesses, it seeks to provide quality products and excellent customer service so that it can be a market leader. The financial goals of the Company are to earn consistent underwriting and operating profits and superior investment returns to build shareholder value. Visit Markel Corporation on the web at markelcorp.com.

Logo – http://photos.prnewswire.com/prnh/20140415/73238

CONTACT:  Paul Broughton, 804-527-7618, pbroughton@markelcorp.com

Click Here for More Information »